If you happen to be one of those individuals who need extra time for completing their business tax returns, you can use the alternative of making a request for a time extension. Nevertheless, it is quite important to have a clear understanding of the fact that you will still have to make an estimate of the amount that you owe to the Internal Revenue Service within the due date. It is necessary due to the fact that the IRS possesses full rights to not validate your extension. Individuals who want to make an application for a tax extension on their business tax returns can fill out Form 7004.
Simple Steps to Follow When Filling Form 7004 with IRS
Form 7004 is also called the business tax extension form in the world of paying taxes. This name has been given to the form due to the fact that it serves in the form of a detailed illustration consisting of several sections which need to be completed for the IRS to accept the extension that has been applied for. The 7004 form consists of eight sections but it is to be noted that all the different sections are not applicable for different taxpayers. This is the only reason why Form 7004 turns out to be a little confusing for people who try filling out the form. There are some important steps that need to be taken and some important points that need to be kept in mind when filling out Form 7004 and they are as follows:
· Line 1a: The 7004 form only needs to be filled out if an individual is filing for an automatic tax extension of 5 months.
Line 1b: It needs to be filled out if an individual tries filing for an automatic tax extension of 6 months. It is important to keep in mind that individuals cannot file for both 5 and 6-month tax extensions. There are some extension applications are likely to be rejected if they fill out both the lines.
Line 2: Foreign corporations need to fill out this line in case they do not possess an office with a location in the USA.
Line 3: All the corporations that operate online need to fill out Line 3. All of Part 3 is compulsory to be filled out by each and every individual who fills out Form 7004.
Line 4: Individuals who have got a tax extension of 3 months need to fill out Line 4.
Line 5: The 7004 form indicates people whether they are filing for a short year or a normal tax year and the reason why this is being done.
Line 6: This is the line where people need to specify the right tax amount that they actually owe. The ones who owe nothing need to put a zero in the blank space.
Line 7: It consists of the total payment amount that the taxpayers need to pay.
Line 8: This line in the form consists of important information for the individuals making use of the form for their tax extensions.