What is IRS Form 7004?

IRS Form 7004

If you are a U.S. taxpayer then you must have an idea about how important it is to fill out the different tax forms. And this process gets even more exhausting when the tax season approaches its end. In the process, you must have come across the mention of IRS Form 7004. If you are not well informed about the tax forms and other relevant things then at this point you must be having so many questions about this form. These questions are like: What is IRS Form 7004?, How to Fill out IRS Form 7004? Etc. You have come to the right place as here we are going to answer all these questions. 

What is this form?

This IRS Form needs to be filled out when you need to request some time extension from the IRS for filing the business tax return. For this, you have to be running a partnership, multiple-member LLC that is filing as a partnership, corporation, or S corporation.

In order to make sure that you get the requested time extension, you have to properly estimate your tax dues, file them before the given due date, and complete the form correctly. When you fill out this tax form to raise the request, you get a six months extension to file the tax returns. Although the payment deadline does not get extended with this tax form. 

Who can file this form?

A majority of businesses can use this IRS Form to request a time extension to file tax returns. This is an extension application for different types of businesses. These businesses include S corporations, partnerships, and multiple-member LLCs, etc. 

The IRS Form 7004 is easily available on the official website of the IRS. You can fill it out either online or offline. For offline filing, you have to take a print out and then mail it to the IRS.  

You May Also Read: IRS Form 1310?

How to File?

As compared to other IRS Forms, Form 7004 is relatively small. While filling out this form, you have to enter details like name, address, and the tax ID number. If you are confused and wondering what is a tax ID number then here is the answer. The tax ID number is typically your employer ID number.

After that you have to enter the appropriate code for the tax return you are filing. 

  • If you are running an S corporation then you have to enter Code 25. 
  • If you are running a partnership or multiple-member LLC  then you have to enter Code 09. 
  • And if you are running a corporation then you have to enter Code 12. 

In this form then you also have to answer if the business you are running qualifies under Regulations section 1.6081-5 of the Internal Revenue Code. If yes then it means your business is one of the foreign corporations or domestic corporations that have a business and maintain books outside the country or domestic corporations that have principal income derived from the U. S. possessions.

After that, you have to answer if this is a short tax year for your business. And you have to tell the reason by marking the right checkbox. You also have to show the tentative amount of the total tax. This amount is the tax due to the business for the ongoing financial year. You also have to mention all the payments and the credits applied to your account if any. And you have to subtract this amount from the tentative tax amount. And at last, you have to mention the due balance.

Things to Keep in Mind:

When you want to raise a time extension application for the tax return of your business, the IRS Form 7004 comes in the picture. You also have an option to eFile this IRS form. For this, you have to go to the official website of the IRS. 

This form is also called the “Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns”. With the help of this, you can easily get an extension of six months to file your tax returns. 

But the process of getting an extension is not as easy as it might sound. In order to make sure that your extension request gets approved, you have to submit the IRS Form 7004 before the given due date of the tax return. Usually, the deadline for businesses is March 15. But for some businesses like C corporations, the deadline for filing the tax return is April 15. Always keep in mind that this form will not help you to get the time extension for paying the due taxes. 

If you have any due taxes then you have to pay them before the given deadline so that you can avoid any penalty charges. You also have to enclose a check while mailing the IRS Form 7004 in case you estimate that there are some due taxes. In the case of online filing, you have an option to pay the due taxes online when you submit it to the IRS.

You May Also Read: IRS Form 1041?

Wrapping Up!

Most of the taxpayers prefer to handle their taxation and other finances on their own. This helps them to ensure accuracy and remain satisfied. But at times, handling everything on your own can be too overwhelming. You have two ways of handling those taxes efficiently. Either you can hire some professional tax accountant to fill this form out or you can do it all by yourself. No matter which one of these two ways you choose, you must have all the information about the estate and all the relevant documentation in place. 

If you get stuck at some point in the process of filling the IRS Form 7004 then you should take help from Our expert Accounts Confidant. We have a large team of dedicated tax professionals and we are just a call away. You can call us at +1-888-660-0575. We are available 24×7.

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