Form 7004: Business Income Tax Extension
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- Form 7004
- What is IRS Form 7004
Form 7004 - An Overview, Penaltto get an Automatic 6-month Extension
- Updated on November 23, 2024 - 10.00 AM Stephanie Glanville, ExpressExtensionEnsuring you file your business returns on time is crucial for maintaining compliance and avoiding penalties. If, for any reason, you are unable to meet your business tax return filing deadline, you have the option to request an extension using Form 7004. This form allows businesses to apply for an automatic 6-month extension to file certain business income tax, information, and other returns.
Read this article to understand the requirements and process for filing Form 7004, which is essential to ensure your extension request is handled correctly.
Key Takeaways:
- Form 7004 is used to request an automatic extension (6 months) of time to file certain business tax returns, but it does not extend the time to pay any taxes due.
- C corporations, S corporations, partnerships, multi-member LLCs, and certain estates and trusts can file Form 7004. It cannot be used for Form 1041-A, which requires Form 8868 instead.
- Forms Extended by Form 7004 include Form 1120 (corporate returns), Form 1065 (partnership returns), and many other specialized tax returns.
Table of Contents
What is Form 7004?
Form 7004, officially known as the” Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Returns”, is used by businesses and other entities to request an automatic extension of time to file certain tax returns. This form does not extend the time to pay any taxes due; it only extends the deadline for filing the return. By filing IRS Form 7004, businesses can get up to 6 months of extension. Also, businesses don’t need to provide a reason for filing form 7004 extension.
Who Must File Form 7004?
Most businesses can use Form 7004 to request an extension of time to file various tax returns. The form serves as an extension application for:
- C corporations
- S corporations
- Partnerships
- Multiple-member LLCs
- Certain estates and trusts
Which Forms Do the Form 7004 Extend?
Form 7004 requests an automatic extension of time to file various business income tax, information, and other returns. Here are the key forms that can be extended using Form 7004:
- Form 706-GS (D), Generation-Skipping Transfer Tax Return for Distributions
- Form 706-GS (T), Generation-Skipping Transfer Tax Return for Terminations
- Form 1041, U.S. Income Tax Return for Estates and Trusts
- 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 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons
- Form 1065, U.S. Return of Partnership Income
- Form 1066, U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return
- 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 1120S, U.S. Income Tax Return for an S Corporation
- Form 1120-SF, U.S. Income Tax Return for Settlement Funds (Under Section 468B)
- Form 3520-A, Annual Information Return of Foreign Trust With a U.S. Owner
- 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 8804, Annual Return for Partnership Withholding Tax (Section 1446)
- Form 8831, Excise Taxes on Excess Inclusions of REMIC Residual Interests
- Form 8876, Excise Tax on Structured Settlement Factoring Transactions
- Form 8924, Excise Tax on Certain Transfers of Qualifying Geothermal or Mineral Interests
- Form 8928, Return of Certain Excise Taxes Under Chapter 43 of the Internal Revenue Code
Note: Form 7004 cannot be used to request an extension for Form 1041-A (U.S. Information Return Trust Accumulation of Charitable Amounts). Instead, you should use Form 8868 (Application for Extension of Time To File an Exempt Organization Return or Excise Taxes Related to Employee Benefit Plans), specifically designed to extend the filing deadline of various tax-exempt organization returns.
What Information is Required to File Form 7004?
To file Form 7004, you must provide specific information about your business or entity. Here's what you will need:
- Name: The legal name of your business or entity.
- Address: The current mailing address of the business or entity.
- Identifying Number: Enter your applicable EIN or SSN, uniquely identifying it to the IRS.
Part I:
Automatic Extension for Certain Business Income Tax, Information, and Other Returns.
- Line 1: Enter the appropriate code based on the type of return for which you are requesting an extension.
For Example, If you request an extension for Form 1042, enter the appropriate code as 08.
Part II:
All Filers Must Complete This Part
- Line 2: Check the box if requesting an extension for a foreign corporation without a U.S. office; file by the due date.
- Line 3: Only a common group parent can request an extension for a consolidated group's return. If this line is checked, attach a statement listing the name, address, and employer identification number (EIN) of each member covered by this application.
- Line 4: Some foreign and domestic corporations and partnerships automatically qualify for an extension under section 1.6081-5 without Form 7004 but must attach a statement to the tax return.
- Line 5a: Enter the beginning and ending dates if not using a calendar year.
- Line 5b: Indicate the reason for a short tax year and attach an explanation if needed.
- Line 6: Enter the total tax expected, including nonrefundable credits.
- Line 7: Enter the total payments and refundable credits.
- Line 8: Form 7004 does not extend payment time; pay any unpaid taxes by the return's due date.
When is the Due Date to File Form 7004?
The due date to file Form 7004 is the same as the due date of the business tax return for which the extension is required.
- For Tax Forms 1065, 1120-S, and more, the deadline to file Form 7004 is the 15th day of the third month after the organization’s tax year ends. Therefore, if your organization follows a calendar tax year, the deadline for the 2024 tax year is March 17, 2025.
- For Tax Forms 1120, 1041, and more, the deadline to file Form 7004 is the 15th day of the 4th month after the organization’s tax year ends. So, if your organization follows a calendar tax year, the deadline for the 2024 tax year is April 15, 2025.
Note: If the due date falls on a Saturday, Sunday, or a federal holiday, the next business day will be the duedate.
Use our Due Date calculator to find the due date for your Business.
Exceptions in Form 7004 Duedates
1. Foreign Corporations Without a U.S. Office
Suppose you are filing on behalf of a foreign corporation that does not have an office or place of business within the United States. In that case, specific rules apply for requesting an extension of time to file the corporation’s tax return. To request an extension, the foreign corporation must submit Form 7004. This form must be filed by the 15th day of the 6th month following the close of the tax year.
For example, if the corporation’s tax year ends on December 31, Form 7004 must be filed by June 15 of the following year.
2. Foreign & Domestic Corporations and Partnerships
These entities automatically qualify for a filing and payment extension under Regulations section 1.6081-5. You do not need to file Form 7004 if eligible to receive this automatic extension. Your entity must file (or request an additional extension) and pay any due balance by the 15th day of the 6th month after the tax year ends. The eligible entities are:
- Partnerships keeping books outside the U.S. and Puerto Rico
- Foreign corporations with a U.S. office
- Domestic corporations with business outside the U.S. and Puerto Rico
- Domestic corporations earning income from U.S. possessions
Attach a statement confirming eligibility when filing. If you can't file by the deadline, check line 4 on Form 7004 to request an additional extension: 3 months for partnerships/S corporations and 4 months for C corporations and filers of Form 1120-POL (U.S. Income Tax Return for Certain Political Organizations).
What are the Penalties for Late Filing of Form 7004?
- When Form 7004 is filed late, several penalties may apply. These penalties can vary depending on whether the issue is related to late filing or late payment of taxes.
- Late Filing Penalty: A penalty is typically imposed if a return is filed after its due date (including any extensions) and you can't demonstrate reasonable cause.
- Late Payment Penalty: If the tax due isn’t paid by the deadline, a penalty of 0.5% per month or part of a month on the unpaid tax amount is charged. This penalty can accumulate up to a maximum of 25% of the unpaid tax. However, if you can show reasonable cause for the delay in payment, this penalty may be waived.
Note: If a corporation receives an extension to file its income tax return, it will avoid the late payment penalty if:
- The tax paid by the original due date is at least 90% of the total tax due.
- Any remaining balance is paid by the extended due date.
Where Should You Mail Form 7004?
If you opt to file Form 7004 on paper, you must fill out the form with all required information and send it via mail to the IRS. It's important to note that the IRS mailing address will vary depending on the specific type of form for which you are requesting an extension.
To learn more about the Form 7004 mailing address, click here.
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ExpressExtension also provides a timely and accurate filing process, with various features to ensure a streamlined and efficient tax extension filing experience.
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