If your business is doing well in this economy, you cannot afford to let your focus stray from your income producing activities. This logic can be applied to distractions of many kinds. If you put forth a considerable amount of time and effort into preparing your tax returns for your business during this time of year, you can easily put that off for up to 6 months by filing an IRS 7004 Form for a Business Tax Extension.
Automatic 5-month extension
All the returns shown in Part I, line 1a of Form 7004 are eligible for an automatic 5-month extension of time to file from the due date of the return.
Automatic 6-month extension
All the returns shown in Part II, line 1b of Form 7004 are eligible for an automatic 6-month extension of time to file from the due date of the return. However, see the instructions for lines 2 and 4 for exceptions
Filing this Form 7004 does not mean that taxes do not need to be paid for 5-6 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 this year, and once they are processed by the IRS, you will be granted an automatic 5 or 6 month tax extension. The exact length of time that your tax deadline is extended depends on your business type.
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 www.expressextension.com. ExpressExtension is an IRS Authorized e-file provider. The process of filing a Tax Extension through this 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 Personal Tax Extensions with Form 4868 and Non-Profit filing extensions with Form 8868.
E-File IRS Form 7004 with ExpressExtension
Business Tax Extension Form 7004 due date is March 15. It automatically extend the filing deadline for 5 or 6 months, depending on the return for which the extension is filed.
An IRS tax extension is meant to extend the amount of time that a person has to file a return. It does not extend the amount of time to pay the taxes due. The IRS will still expect to receive the estimated tax amount upon the deadline. Businesses are required to pay the full tax amount at the due date.
Individuals, however, are allowed to pay less than the total amount due. An installment plan can be setup with the IRS,and/or penalties and interest depending on the exact situation. Please consult with the IRS directly in this type of situation.
PAYMENT OF TAX
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.
PENALTY FOR LATE FILING OF RETURN:
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.
PENALTY FOR LATE PAYMENT OF TAX:
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.