IRS Form 7004: How to File an Business Tax Extension

The deadline for filing income tax returns for Corporations (both C and S-Corps) and Multi Member LLC’s is March 15th. The fact is millions of businesses do not file their corporate income tax return by the filing deadline and instead file IRS Form 7004 – “Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns”, which extends the time to file their return for 6 months to October 15th. Although the title of IRS Form 7004 begins with the word “Application”, the reality is the granting of a Business Tax Extension is automatic, as long as you provide the IRS with accurate information about your business such as the type of entity it is (i.e. C-Corp, S-Corp, LLC etc) and Federal Tax ID number and you file Form 7004 in a timely manner – by March 15th.

It is important to understand that filing a Business tax extension will only allow you to extend your time to file your corporate tax return. It does not extend the time you have to pay any taxes you may have due. If you anticipate owing business taxes, you should make an estimated tax payment when you file your extension, so you avoid late payment penalties.

How do I file for a small business tax extension?

As stated above, in order to apply and file for the extension, you will need to complete IRS Form 7004 and as with every annual tax obligation, you have the choice to either do it yourself or use a service or tax professional.

Option 1: Filing IRS Form 7004 Yourself

We recommend watching this how-to-video on filing for a small business tax extension as it clearly walks through every step of the form as well as how to properly address and mail your form using USPS certified mail.

Option 2: Utilize an online service or tax professional

You can file an online business tax extension by using an approved IRS eFile provider such as e-file.com. For a small processing fee, your electronic extension can be filed online, and you’ll receive written confirmation from the IRS that it’s been accepted within minutes. You can even file your extension from your smart phone!
Remember, over 6,000,000 businesses will file a Business tax extension this year so there’s no need to panic if you’re not ready by the corporate tax filing deadline of March 15th

File an Online Business Tax Extension

Sources

“Small Business Tax Extension Form 7004” – Travis Sickle

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