For any business to do well in this economy, it's only natural to focus on your company's income-producing activities. However, you're also required to put forth a considerable amount of time and effort into preparing your business tax returns and be compliant with the IRS. Filing tax forms can interfere with daily business operations, but now you can easily apply for extra filing time up to 7 months with the Business Tax Extension Form 7004.
Filing this IRS 7004 Form does not mean that taxes do not need to be paid for 7 months. Taxes will still be due on the traditional deadline, but the tax return does not need to be organized and submitted until the later deadline. This allows for more time to organize all the necessary paperwork and it also gives you and your accountant more time to make sure that you get the most out of your credits or refunds.
Business Tax Extension must be filed by March 15 every year, and once they are processed by the IRS, you will be granted an automatic 6 or 7 month automatic extension. The exact length of time that your tax deadline is extended depends on your business type.
All of the returns shown in Part I, Line 1a of Form 7004 are eligible for an automatic 6-month extension of time.
Each of the returns listed in Part II, Line 1b of Form 7004 are eligible for an automatic 5 1/2 -month extension of time.
Every return that appears in Part III, Line 1c of Form 7004 is eligible for an automatic 6 -month extension of time.
All of the returns shown in Part IV, Line 1d of Form 7004 are eligible for an automatic 7-month extension of time.
Form 7004 does not extend the time for payment of tax. Form 7004 is required by the due date of the return for which this extension is filed.
Generally, a penalty is charged if a return is filed after the due date (including extensions) unless you can show reasonable cause for not filing on time.
Generally, a penalty of 12 of 1% of any tax not paid by the due date is charged for each month or part of a month that the tax remains unpaid. The penalty cannot exceed 25% of the amount due. The penalty will not be charged if you can show reasonable cause for not paying on time.
Form 7004 can be filed electronically for most returns. However, Form 7004 cannot be filed electronically for Forms 8612,8613, 8725, 8831, 8876, or 706-GS(D). For details on electronic filing, visit www.irs.gov/Filing.
Other best way to process this form is through ExpressExtension, an IRS Authorized e-file provider. The process of e-filing 7004 Tax Extension through ExpressExtension program is incredibly simple and easy to understand. Instead of using confusing tax jargon, ExpressExtension takes the IRS 7004 Form and breaks it down into a series of simple questions.
ExpressExtension can also be used to e-file 4868 Form (Personal Tax Extensions), Form 8868 (Non-Profit Tax Extensions), and Form 8809 (Extension Form for filing certain information return)