Uncategorized

Time is money: Filing IRS Form 7004

September 9, 2023 By Israel Padilla

How to File IRS Form 7004 for Business Tax Extension

If you are a business owner and you need more time to file your federal income tax return, you may be eligible to request an automatic extension of time to file using IRS Form 7004. This form allows you to extend the deadline for certain business income tax, information, and other returns for up to six months, depending on the type of return and tax year. Here is what you need to know about Form 7004 and instructions on how to file it.

Table of Contents

What is Form 7004?

Form 7004 is the Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Returns. It is used by corporations, partnerships, trusts, estates, and other entities that are required to file certain business tax returns with the IRS. Form 7004 does not extend the time to pay any tax due, only the time to file the return. You must estimate your tax liability and pay any balance due by the original due date of the return, or you may incur interest and penalties.

Who can use Form 7004?

Form 7004 can be used by most entities that file any of the following returns:

  • Form 706-GS(D), Generation-Skipping Transfer Tax Return for Distributions
  • Form 706-GS(T), Generation-Skipping Transfer Tax Return for Terminations
  • Form 1120, U.S. Corporation Income Tax Return
  • Form 1120-C, U.S. Income Tax Return for Cooperative Associations
  • Form 1120-F, U.S. Income Tax Return of a Foreign Corporation
  • Form 1120-FSC, U.S. Income Tax Return of a Foreign Sales Corporation
  • Form 1120-H, U.S. Income Tax Return for Homeowners Associations
  • Form 1120-L, U.S. Life Insurance Company Income Tax Return
  • Form 1120-ND, Return for Nuclear Decommissioning Funds and Certain Related Persons
  • Form 1120-PC, U.S. Property and Casualty Insurance Company Income Tax Return
  • Form 1120-POL, U.S. Income Tax Return for Certain Political Organizations
  • Form 1120-REIT, U.S. Income Tax Return for Real Estate Investment Trusts
  • Form 1120-RIC, U.S. Income Tax Return for Regulated Investment Companies
  • Form 1120-SF, U.S. Income Tax Return for Settlement Funds (Under Section 468B)
  • Form 1120-S, U.S. Income Tax Return for an S Corporation
  • Form 1065-B, U.S. Return of Income for Electing Large Partnerships
  • Form 1065, U.S. Return of Partnership Income
  • Form 1041-N, U.S. Income Tax Return for Electing Alaska Native Settlement Trusts
  • Form 1041-QFT, U.S. Income Tax Return for Qualified Funeral Trusts
  • Form 1041, U.S. Income Tax Return for Estates and Trusts
  • Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons
  • Form 5330, Return of Excise Taxes Related to Employee Benefit Plans
  • Form 8612, Return of Excise Tax on Undistributed Income of Real Estate Investment Trusts
  • Form 8613, Return of Excise Tax on Undistributed Income of Regulated Investment Companies
  • Form 8725, Excise Tax on Greenmail
  • Form 8831, Excise Taxes on Excess Inclusions of REMIC Residual Interests
  • Form 8876, Excise Tax on Structured Settlement Factoring Transactions
  • FinCEN Form 114 (formerly TD F90-22.1), Report of Foreign Bank and Financial Accounts (FBAR)
See also  Is Child Support Taxable? A Guide for Parents and Legal Professionals

How long is the extension period?

The length of the extension period depends on the type of return and the tax year. For most returns, the extension period is six months from the original due date of the return. However, some exceptions apply:

  • The extension period for Form 1041 is five and a half months.
  • The extension period for Form 1042 is six months, except for calendar year 2020, when it is seven months.
  • The extension period for Form 1065 and Form 1065-B is six months, except for calendar year 2020, when it is five months.
  • The extension period for Form 1120 and Form 1120-S is six months, except for calendar year 2020, when it is seven months.
  • The extension period for FinCEN Form 114 is six months, except for calendar year 2020, when it is seven and a half months.

You can find the original due dates and the extended due dates for each return in the instructions for Form 7004.

How to file Form 7004?

Now for the next section, we have instructions on how to file form 7004:

When you file Form 7004, you must provide the following information:

  • The name and address of the entity requesting the extension
  • The employer identification number (EIN) or social security number (SSN) of the entity
  • The form code of the return for which you are requesting an extension
  • The tax year ending date of the return
  • The tentative tax liability, if any, of the entity
  • The total payments and credits, if any, of the entity
  • The balance due, if any, of the entity
  • The estimated amount of tax owed by a foreign corporation not having an office or place of business in the United States
  • A signature and date by an authorized person

You can file Form 7004 either electronically or by mail. However, some returns cannot be filed electronically, such as Forms 8612, 8613, 8725, 8831, 8876, or 706-GS(D). You must file Form 7004 by the original due date of the return for which you are requesting an extension.

To file Form 7004 electronically, you need to follow these steps:

  1. Visit the IRS website and choose an IRS-approved e-file provider from the list.
  2. Create an account with the provider and log in.
  3. Select Form 7004 from the available forms and enter your information as prompted.
  4. Review your form and make sure it is complete and accurate.
  5. Provide your electronic signature using a self-selected PIN or a Practitioner PIN if you are using a tax professional to file your return.
  6. Pay any tax due by electronic funds withdrawal from your bank account or by credit card. You will need to provide your bank account number and routing number or your credit card number and expiration date.
  7. Submit your form and wait for a confirmation message that your form has been accepted or rejected. You can also check the status of your e-filed form on the IRS website.
See also  Love the tax break: Using IRS Form 8995 to calculate your QBI deduction

To file Form 7004 by mail, you need to follow these steps:

  1. Download Form 7004 from the IRS website or get a paper copy from a local IRS office or by calling 1-800-TAX-FORM (1-800-829-3676).
  2. Fill out the form using black or blue ink. You can also use a software program to fill out the form on your computer and print it out.
  3. Make sure you provide all the required information as listed above.
  4. Attach a check or money order for any tax due, payable to “United States Treasury”. Write your name, address, EIN or SSN, form code, and tax year on your payment. Do not staple or attach your payment to the form.
  5. Mail your form and payment to the appropriate address based on your location and type of return. You can find the addresses in the instructions for Form 7004. Use a mailing service that provides proof of delivery, such as certified mail or registered mail.
  6. Wait for a confirmation that your form has been received or rejected

What are the consequences of not filing Form 7004?

If you do not file Form 7004 by the original due date of the return, you will not receive an extension of time to file and you may be subject to late filing penalties. The penalty for late filing is usually 5% of the unpaid tax for each month or part of a month that a return is late, up to a maximum of 25%. If the return is more than 60 days late, the minimum penalty is $435 or the balance of the tax due on the return, whichever is smaller. You may also be subject to late payment penalties and interest if you do not pay your tax by the original due date.

Where can I get more information?

For more information about Form 7004 and how to file it, you can visit the IRS website. You can also download the form and instructions from there. You can also call the IRS at 1-800-829-4933 for assistance.