Form 7004 Instructions: What Businesses Should Know

If your businesses need more time to prepare all their business income tax returns documents, the business owners can request additional time from the IRS by filing a simple extension Form 7004. It helps them avoid urges and issues in preparing a huge business income tax form.

What is Form 7004?

Form 7004 is named “Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Returns”. It is a simpler, one-page form and easy to get approval from the IRS.

Form 7004 is used by businesses in the United States to request additional time to file specific business income tax, information, and other returns.

You don’t require to provide any reason for applying for an extension, as this is completely automatic.

It is important to note that this Form doesn’t extend your payment due date. It will extend only the date for filing the return.

Who can file Form 7004?

Most businesses can use Form 7004 to extend the income tax filing deadline. 

Here are some common business types that can use Form 7004:

  • C-corporations
  • S-corporations
  • Partnerships
  • LLCs elected as a corporation
  • LLCs elected as a partnership
  • Trust and Estates
  • Political Organizations

Sole proprietors should use Form 4868 to request a tax-filing extension.

When is Form 7004 due?

Your 7004 must be filed on or before the due date of the actual business income tax return.

Form 1120-S, 1065, and other Business tax forms, Form 7004, must be filed before March 15, 2023.

Form 1120, 1041, 1120-POL, and other Business tax forms, Form 7004, must be filed before April 17, 2023.

How to get an extension approved by the IRS?

Businesses can get an extension approval notice easily from the IRS if they follow the simple tips:

  1. Submit Form 7004 on or before the actual business tax deadline 
  2. Make a proper estimate of any taxes you owe
  3. Pay any tax that is due
  4. Complete all the lines on Form 7004 

How Long is the IRS Business Tax Filing Extension Period?

Generally, Form 7004 provides businesses the automatic six months of additional time to file for most of the business income tax returns. 

Note: 

  • Estates and trusts filing Form 1041 get 5 1/2 months
  • C corporations with tax years ending June 30 are eligible for a 7-month extension.

How to complete Form 7004?

This is a very simple form to complete, and it is split into two parts. You’ll need the following information to fill out a 7004:

Basic Information of your Organization

Basic Business Information - Form 7004
Fields for Basic Business Information

The basic information, such as 

  • Name, 
  • Employer Identification Number
  • Address

Part I: Automatic Extension for Certain Business Income Tax, Information, and Other Returns

Part I of Form 7004
Part I of Form 7004

This is just a one-liner part. You need to enter the business return code for which tax form you’re filing, this extension Form 7004.

If you are required to file an extension for more than one tax form, you’ll need to file a separate Form 7004 for each one.

Choose from this list to specify which Form you’re getting an IRS filing extension for, and enter the respective business code on line 1.

Business Tax FormsReturn Code
Form 706-GS(D), Generation-Skipping Transfer Tax Return for Distributions01
Form 706-GS(T), Generation-Skipping Transfer Tax Return for Terminations02
Form 1041, U.S. Income Tax Return for Estates and Trusts ((bankruptcy estate only)03
Form 1041, U.S. Income Tax Return for Estates and Trusts (Other than a bankruptcy estate)04
Form 1041, U.S. Income Tax Return for Estates and Trusts (Trust)05
Form 1041-N, U.S. Income Tax Return for Electing Alaska Native Settlement Trusts06
Form 1041-QFT, U.S. Income Tax Return for Qualified Funeral Trusts07
Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons08
Form 1065, U.S. Return of Partnership Income09
Form 1066, U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return11
Form 1120, U.S. Corporation Income Tax Return12
Form 1120-C, U.S. Income Tax Return for Cooperative Associations34
Form 1120-F, U.S. Income Tax Return of a Foreign Corporation15
Form 1120-FSC, U.S. Income Tax Return of a Foreign Sales Corporation16
Form 1120-H, U.S. Income Tax Return for Homeowners Associations17
Form 1120-L, U.S. Life Insurance Company Income Tax Return18
Form 1120-ND, Return for Nuclear Decommissioning Funds and Certain Related Persons19
Form 1120-ND (section 4951 taxes)20
Form 1120-PC, U.S. Property and Casualty Insurance Company Income Tax Return21
Form 1120-POL, U.S. Income Tax Return for Certain Political Organizations22
Form 1120-REIT, U.S. Income Tax Return for Real Estate Investment Trusts23
Form 1120-RIC, U.S. Income Tax Return for Regulated Investment Companies24
Form 1120-S, U.S. Income Tax Return for an S Corporation25
Form 1120-SF, U.S. Income Tax Return for Settlement Funds (Under Section 468B)26
Form 3520-A, Annual Information Return of Foreign Trust With a U.S. Owner27
Form 8612, Return of Excise Tax on Undistributed Income of Real Estate Investment Trusts28
Form 8613, Return of Excise Tax on Undistributed Income of Regulated Investment Companies29
Form 8725, Excise Tax on Greenmail30
Form 8804, Annual Return for Partnership Withholding Tax (Section 1446)31
Form 8831, Excise Taxes on Excess Inclusions of REMIC Residual Interests32
Form 8876, Excise Tax on Structured Settlement Factoring Transactions33
Form 8924, Excise Tax on Certain Transfers of Qualifying Geothermal or Mineral Interests35
Form 8928, Return of Certain Excise Taxes Under Chapter 43 of the Internal Revenue Code36

Part II: Complete your Organization Details and Tax Information

Part II of Form 7004
Part II of Form 7004

In this part, you should provide information about your business structure, the tax year you’re filing for, and tax payment details. 

Here’s the part broken down by line:

  • Line 2: Choose this line if your business is a foreign corporation and not have offices in the U.S.
  • Line 3: Choose this line if your business’s parent company intends to file a consolidated return. 
    • You should attach a list of all consolidated group members showing the name, address, and EIN for each group member.
  • Line 4: Choose this line if your business is a corporation or partnership that qualifies under Regulations section 1.6081-5.
  • Line 5: Tax Year
    • Line 5a: Enter the information about the tax year your business follows.
    • Line 5b: If your business’s tax year is less than 12 months. Check the applicable box to explain the reason for the short tax year.

Line 6 – 8: Assigned Lines to Enter your Tax Details

  • Line 6: Enter the total tax amount for the tax year (including any nonrefundable credits the business expects to owe). 
  • Line 7: Enter the amount here if you’ve already made payments or claimed refundable credits.
  • Line 8: Balance Tax Due – Subtract line 7 (Payment Made) from line 6 (Total tax) to get your balance due, and enter it here.

You don’t have to include a signature with Form 7004.

How to file Form 7004?

There are two ways to file Form 7004. Form 7004 can be filed electronically or by postal mail—the completed Form to the IRS.

E-filing Form 7004:

Form 7004 can be e-filed through the IRS’s modernized e-filing system. It would help if you had an e-services login and password to do so.

You will get an acknowledgment notice if you choose to file electronically.

Paper Filing Form 7004:

You can also download, & print form 7004, complete all the lines, and mail 7004 to one of the Form 7004 mailing addresses listed here. https://www.irs.gov/filing/where-to-file-form-7004

Form 7004 is considered as filed on time if they’re postmarked and deposited in the mail by the deadline.

Conclusion:

This extension relaxes business owners and gives them more time to prepare documents related to income, expenses, and business activities to report on their business income tax returns.

Source:

https://www.irs.gov/pub/irs-pdf/i7004.pdf

https://www.irs.gov/pub/irs-pdf/f7004.pdf

https://www.irs.gov/filing/where-to-file-form-7004

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