How Do You File a Business Tax Extension With The IRS?


The Internal revenue Service allows business and individuals to file their tax extensions by filling out Form 7004. This gives businesses and individuals extra time for filing their income tax returns. Nevertheless, the due dates and the rules for these tax extensions generally tend to be different in comparison to the ones for personal tax extensions.

Considering the business type, the IRS gives the flexibility of a five or six month tax extension which starts from the original due date of the tax return. This can be understood by an example. Suppose that a particular business gets an extension of 6 months with the original tax filing deadline being 16th March, the new filing deadline of the business would be 15th September.

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1. Importance of IRS Due Dates and Rules on Tax Extensions

If you, as an individual, are trying to file tax extension for a business that you own, it is necessary for you to have a clear understanding of the IRS due dates and the rules as well. Business extensions tend to be automatic meaning that you are not required to sign Form 7004. You are also not required to provide the reason behind the extra time that you need for paying your taxes. There are a lot of companies that make use of Form 7004 for applying for business tax extensions. Nevertheless, there are certain businesses like the sole proprietorships where business activities are generally reported on the personal tax return of the business owner. In this case, personal extensions are requested by filling out IRS Form 4868.

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Some important rules that need to be followed when requesting tax extensions are as follows:

2. Be Accurate

The business tax extensions are automatic as long as Form 7004 is completed and filed in the correct manner. Always keep in mind that your tax extension request might be denied if your form has errors in it.

3. Pay All taxes Due

Always keep in mind that through tax extension you do not get extra time for paying your taxes. The only thing that you get is more time for filing your tax returns. Thus, if by any chances, you happen to owe taxes for a year, you will still be expected to pay those taxes within the due dates. In case, you are not able to pay your tax liabilities within the deadline, you might have to pay interest charges and penalties. Therefore, it is highly recommended to pay the taxes along with extension as this helps in avoiding late fees.

4. Try Filing On Time

It is necessary for you to submit the tax extension form on or before the filing due date of tax returns. The deadline might vary depending on business entity type. Original filing due date for most estates, trusts and business entities is 15th April. On the other hand, 15th march happens to be the original filing due date for all corporations including S-corporations and C-corporations.

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Form 7004 Earns Extension Of Time For Business Income Tax Forms


Certain IRS forms covering the partnerships business income tax returns filing has the support of form 7004 online for the automatic extension of time which is 5 months from the due date of filing as determined by IRS. The normal due date for filing these business income tax forms falls on 15th April as due date which furthers up to September 15th in a calendar year by virtue of filing form 7004 provide the automatic extension of time for 5 months from the original due date April 15th.

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One such form 8804 covers income tax filing of partnerships tax returns, like the form 1065 which comes under Form 7004, the due date is April 13th and some partnerships who keeps and maintain the records and books of accounts outside USA and Puerto Rico are given consideration by IRS of the due date being pushed to June 16th in a calendar year which will be two months without even filing form 7004.The partnerships operating from outside USA and Puerto Rico can further extend the due date time by filing the automatic extension form 7004 to gain another 3 months which will end up as September 15th as due date which is similar to partnerships in USA filing form 7004 online for the automatic extension of time which is 5 months from April 15th in a calendar year.

Form 7004 also gets extension time of 5 months to estates of different entities and trusts covered under the form 1041 for filing their year end income tax returns. Here-in the due date is April 15th and with the help of filing Form 7004 the due date for filing extends by another 5 months. For Bankrupt estates, IRS allows automatic extension of time of 6 months for filing tax returns.

Now you can do e-filing form 7004 with the support of IRS certified service provider to ensure automatic extension of time as applicable to business and partnership tax forms.