E-filing An Extension For Your Business Income Taxes

As a business person, your work schedules may be tight, you may have to track some struggling financial records or other financial complication that make the tax filing impossible to do on time. The Internal Revenue Service hears your difficulties and provides an alternate arrangement by offering a business tax 7004 extensions online.

Extension Form 7004 for Business Income Taxes

A business income tax extension is filed using Form 7004, depends on the type of business. Corporations and partnerships use the IRS 7004 Form for filing their business extensions, other businesses filing income taxes on Schedule C must use Form 4868. IRS Form 7004 extends the 6 months of extra time to e-filing the business or corporation taxes. This extra 6 month of time gives the corporations to file the 1120 Form without any errors and saves themselves from the burden of paying late fees or penalties.

NOTE: Most business tax returns can be extended by filing Form 7004: Application for Automatic Extension of Time to File by the original due date of the return.

Due Dates for Corporations and Partnerships

  • ·         If the business is organized as an S corporation than the income tax return or the extension is due by the 15th day of the 3rd month (March 15th) after the end of your business tax year.
  • ·         On the other hand, if the business is a C corporation then the extension is due to the 15th day of the 4th month (April 15th) after the end of your tax year.
  • ·         For instance, if the C Corporation is a calendar year tax payer with a December 31st, 2017, then the tax payer must file a 2017 tax return or an extension request by April 18th, 2017.
  • ·         If the business is a partnership, the income tax return or extension is due by the 15th day of the 3rd month (March 15th) after the end of your tax year.
  • ·         For instance, if the partnership of your business is a calendar year taxpayer with a December 31st, 2017, then the tax payer must e-file 7004 tax return or extension by March 15th, 2017. 
  •          For example, if a business needs a 6-month extension and its original filing deadline was March 15, its new filing deadline is September 15.


Caution on Tax Payments

Apart from filing Form 7004 extension, the tax payments must be made along with the tax extension so that the tax filer avoids the penalties and late fees from the IRS. If your business is an S Corporations who need to file their corporate tax returns must make their payment along with the Form 7004 in order to ensure that they saved from paying the late payment penalties, which will keep on accruing at a monthly rate of 0.5 % till the taxes are paid to the IRS. The maximum penalty, a tax payer can reach is 25 %. Note that the tentative tax amount that is calculated on the Form 7004 is 90 % or even more when compared with the income tax reported on the tax return file along with the outstanding amount that is paid by extended filing deadline and the corporations are not charged late payment penalties.

Steps to File Form 7004 Electronically with IRS

  • 1.  Efile your Form 7004 properly with us. Etax7004 assists you to e-file the 7004 Form throughout the process.
  • 2.  Estimate your tax, if applicable. Etax7004 calculate the tax accurately.
  • 3.  File the Form 7004 before the due date of your tax return and get the 6-month extension from IRS.

Following the above steps could avoid the penalties from the IRS. E-filing the Form 7004 will give an automatic tax extension return up to 6 months.
Etax7004 transmits your business extension Form 7004 to process by the IRS and the send you an email confirmation from the IRS is received within 30 minutes through either email or SMS. You can file your extension form 7004 conveniently through our robust platform. To know more call our customer support team at 703 229 0326 or email us at support@tax2efile.com