Form 7004 Instructions: Everything You Need to Know
IRS Form 7004 instructions are used by various types of businesses to complete the form that extends the filing deadline on their taxes.3 min read
2. How to Complete Form 7004
3. Revised Instructions for Form 7004
4. Deadlines for Filing Form 7004
IRS Form 7004 instructions are used by various types of businesses to complete the form that extends the filing deadline on their taxes. There are three different parts to this tax form. The first two depend on the kind of tax that needs to have its due date extended, while the third is universal.
If you think you won't make the original due date on your tax return for business income, an extension can be added by sending Form 7004 by mail. It can also be sent online. However, this extension request must be submitted before the original due date expires. Once you do, the due date will be postponed automatically.
Who Can Use It and for What Purposes
The 7004 extension form is commonly used by various corporations, S corporations, limited liability companies with multiple partners, or other forms of partnerships to extend deadlines on their tax returns. It is important, however, to mention that this form will not extend payment time for taxes that are already due, only the date for filing the return. If the tax is already due, it must be paid regardless of the extension. Also, keep in mind that under-estimating your due taxes can trigger unwanted penalties for your company.
How to Complete Form 7004
The tax form has three different parts. The first one only needs to be filed by companies requesting a 5-month extension; the second needs to be filed when requesting a 6-month extension; and the third part needs to be filed by everyone.
- Add your name, address, and the company's Tax ID number.
- Use the specific code for the type of tax return you wish to postpone. Form 1065 is used for LLCs with multiple partners or other forms of partnership, corporations use form 1120, while S corporations need Form 1120S.
- You will need to specify where your company stands on Regulations 1.6081-5. If you are a corporation from another country, a US corporation that does external business, or a corporation that mainly does business with US goods, an extra three months for both filing and paying your taxes will automatically be given.
- If you are in a short tax year, the appropriate box must be checked.
- Calculate an estimate on the total amount of due tax for the entire year, then subtract all outstanding payments or credits that will be taken out of your account. The result is the balance due, which can be paid by credit or debit card.
Revised Instructions for Form 7004
In December 2017, the IRS updated its instructions regarding Form 7004. The following instructions were revised:
- The form's structure was changed, and it now consists of two distinct parts. The first part has all the needed forms for which it can be used as an automatic extension for filing outstanding taxes, while the second part contains questions for all types of business that might use this form.
- Certain addresses where Form 7004 needs to be sent were changed in the states of Illinois, Georgia, Kentucky, Michigan, Tennessee, and Wisconsin.
- An additional revision was added in January 2018, specifically mentioning that, given the form's automatic approval, the taxpayer will not be given any notification when the form goes through successfully. They will, however, notify the taxpayer if the request is denied.
- While the previous version of the form classified businesses according to the maximum extension time, under the new structure, all types of entities are listed in Part 1.
Deadlines for Filing Form 7004
- Taxes for corporations need to be paid by the 15th day of the fourth month after the end of their fiscal year. If the year ends on December 31st, taxes must be filed and paid by April 15th.
- In the case of S corporations and partnerships, the tax returns are due by March 15th.
- Both corporations and S corporations get a 6-month extension on their due dates, pushing the deadline until October 15th.
- LLC with multiple partners and other forms of partnerships also have a 6-month extension, meaning they have until September 15th to file their tax returns.
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