Need extra time to file your taxes? Most businesses can use Form 7004 to receive an automatic six-month tax-filing extension.
Although you’ll still need to pay your business taxes by the usual deadline, having an extension will give you a few extra months to get your paperwork in order. And there’s no penalty involved with the extension as long as you submit the form before the tax-filing deadline. Here’s the lowdown on how to fill out and file Form 7004.
What is Form 7004?
IRS Form 7004 is called the “Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Returns.” Whew—that’s a mouthful, right? In plain terms, Form 7004 is a tax form most business owners can use to request more time to file their business income tax returns.
To successfully use Form 7004, you’ll have to:
Complete Form 7004
Estimate and pay the taxes you owe
File Form 7004 before or on the deadline of the appropriate tax form
Make sure you calculate your tax bill correctly. The IRS may charge penalties and interest on unpaid tax balances until you pay up.
Who can file Form 7004?
Most business entities—with the exception of sole proprietors—can file Form 7004 for a business tax extension. Here are the business types that can use Form 7004:
C-corps
S-corps
Single-member LLCs that have elected corporate taxation
Partnerships
Multiple-member LLCs
You’ll need to file Form 7004 on or before the due date of the applicable tax return. The approval process is automatic, so you won’t receive a confirmation if your request is successful. The agency will contact you if it decides to reject the request, though.
Most businesses that successfully file this form receive a six-month filing extension.
Who can’t file Form 7004?
Sole proprietors won’t use Form 7004 to request a tax-filing extension. Because there’s no legal separation between the business and the business owner, sole proprietors can file IRS Form 4868 to receive an automatic filing extension.
Another exception is Form 1041-A, which some businesses use to report charitable information. To request an extension on this form, business owners should file Form 8868.
Where can I find Form 7004?
You can find Form 7004 on the IRS website and either fill it in online or print it out and complete it by hand.
What is the deadline to file Form 7004?
The deadline to file Form 7004 is the original due date of whatever tax form you need an extension on.
Let’s say, for example, that you’re a single-member LLC who needs more time to file your annual tax returns. Instead of filing Form 1040 by the due date of April 15, you’ll file Form 7004 by April 15. Then you’ll get an automatic six-month extension, so your new business tax return deadline will be October 15.
Remember, though: Form 7004 gets you an extension on the form filing, not the tax paying. You’re still responsible for paying the tax due at the original form deadline; otherwise, you might be hit with a penalty.
Form 7004 instructions: How to file Form 7004
Form 7004 is just one page long, and it’s broken into two sections. Here are the step-by-step instructions to fill out the form and file it with the IRS:
Gather your information
You’ll need the following information to fill out Form 7004:
Your name, address, and contact information
Business information, like your employer identification number (EIN) or tax ID and your business entity type
Which tax forms you’re filing an extension for
The tax you expect to owe
Fill out Part I
This section has just one line, where you’ll specify which tax form you need an extension for. If you plan to file more than one tax form, you’ll need to file a separate Form 7004 for each one. Here’s the list you can choose from:
Form 706-GS(D), Generation-Skipping Transfer Tax Return For Distributions
Form 706-GS(T), Generation-Skipping Transfer Tax Return For Terminations
Form 1041, U.S. Income Tax Return for Estates and Trusts
Form 1041-N, U.S. Income Tax Return for Electing Alaska Native Settlement Trusts
Form 1041-QFT, U.S. Income Tax Return for Qualified Funeral Trusts
Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons
Form 1065, U.S. Return of Partnership Income
Form 1066, U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return
Form 1120, U.S. Corporation Income Tax Return
Form 1120-C, U.S. Income Tax Return for Cooperative Associations
Form 1120-F, U.S. Income Tax Return of a Foreign Corporation
Form 1120-FSC, U.S. Income Tax Return of a Foreign Sales Corporation
Form 1120-H, U.S. Income Tax Return for Homeowners Associations
Form 1120-L, U.S. Life Insurance Company Income Tax Return
Form 1120-ND, Return for Nuclear Decommissioning Funds and Certain Related Persons
Form 1120-PC, U.S. Property and Casualty Insurance Company Income Tax Return
Form 1120-POL, U.S. Income Tax Return for Certain Political Organizations
Form 1120-REIT, U.S. Income Tax Return for Real Estate Investment Trusts
Form 1120-RIC, U.S. Income Tax Return for Regulated Investment Companies
Form 1120-SF, U.S. Income Tax Return for Settlement Funds (Under Section 468B)
Form 3520-A, Annual Information Return of Foreign Trust With a U.S. Owner
Form 8612, Return of Excise Tax on Undistributed Income of Real Estate Investment Trusts
Form 8613, Return of Excise Tax on Undistributed Income of Regulated Investment Companies
Form 8725, Excise Tax on Greenmail
Form 8804, Annual Return for Partnership Withholding Tax (Section 1446)
Form 8831, Excise Taxes on Excess Inclusions of REMIC Residual Interests
Form 8876, Excise Tax on Structured Settlement Factoring Transactions
Form 8924, Excise Tax on Certain Transfers of Qualifying Geothermal or Mineral Interests
Form 8928, Return of Certain Excise Taxes Under Chapter 43 of the Internal Revenue Code
Fill out Part II
In this section, you’ll answer some questions about your business structure, the tax year you’re filing for, and how much tax you expect to owe. Here’s the section broken down by line:
Line 2: Check the box here if your business is a foreign corporation with offices outside the U.S.
Line 3: Check the box here if your business’s parent company intends to file a consolidated return. You’ll need to attach a list of all members of the consolidated group showing the name, address, and EIN for each member of the group.
Line 4: If your business is a corporation or partnership that qualifies under Regulations section 1.6081-5, check the box here.
Line 5a: Enter the information about the tax year your business uses.
Line 5b: Check the applicable box to explain the reason you have a short tax year.
Line 6: Calculate the amount you expect to owe for the tax year. If you don’t expect to owe taxes, enter 0.
Line 7: If you’ve already made payments or claimed refundable credits, enter the amount here.
Line 8: Subtract line 7 from line 6 to get your balance due, and enter it here.
Submit the form
There are two ways to submit Form 7004:
E-file: Business owners can set up an e-services login profile and file Form 7004 through the IRS’s e-filing system.
Mail it in: Owners can also mail Form 7004 to one of the mailing addresses listed by the IRS. Returns are considered filed on time if they’re dropped in the mail by the due date of the applicable form.
Once you’ve submitted the form, you have a few months to get your paperwork in order. In the meantime, make sure you stay on top of quarterly estimated taxes and get to work filing your business taxes.
Frequently Asked Questions
Does filing Form 7004 extend the time to pay taxes or only the time to file?
No, filing Form 7004 doesn’t give you a grace period for actually paying your taxes—it only gives you an extension on filing the paperwork. You still have to pay any tax you owe by the deadline you owe it.
What penalties apply if you underestimate the taxes owed when filing Form 7004?
The IRS might ask you to pay an accuracy-related penalty if you underestimate how much tax you owe, which is up to 20% of the portion of your underpaid taxes.
Can Form 7004 be filed electronically through tax software providers?
Yes, you can file Form 7004 electronically through tax software providers, as long as they’re approved by the IRS. Check approved providers for electronic filing here.
What happens if Form 7004 is filed late?
If you don’t file Form 7004 by the due date of the return, the IRS won’t grant you an automatic extension on your tax forms, making them officially late. The only way to get an extension is to file Form 7004 correctly and on time.
Can you amend or correct a previously filed Form 7004?
You can’t amend a previously filed Form 7004, but you can contact the IRS if you made a serious error.
How long is the extension period granted for each specific tax form listed on Form 7004?
The extension period is six months across the board, though there are certain exceptions for filers of Form 1041.
