How to Fill Out Tax Form 7004
IRS Tax Form 7004 is the Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns. Form 7004 has three parts ― depending on the type of tax extension being requested, you must complete Part I or Part II, and everyone must complete Part III.
PART 1: AUTOMATIC 5-MONTH EXTENSION
If you are applying for an automatic 5-month tax extension, enter the appropriate Form Code in the boxes on Line 1a to indicate the type of tax return for which you are requesting a tax extension. Enter only one Form Code. If you make a Form Code entry on Line 1a, do not make a Form Code entry on Line 1b (below).
PART II: AUTOMATIC 6-MONTH EXTENSION
Line 1bIf you are applying for an automatic 6-month tax extension, enter the appropriate Form Code in the boxes on Line 1b to indicate the type of tax return for which you are requesting a tax extension. Enter only one Form Code. If you make a Form Code entry on Line 1b, do not make a Form Code entry on Line 1a (above).
Check the box on Line 2 if you are requesting an extension of time to file for a foreign corporation that does not have an office or place of business located in the United States. This type of entity should file Tax Form 7004 by the due date of the original return (typically the 15th day of the 6th month following the close of the tax year) to request an automatic 6-month tax extension.
Line 3 [Applicable to Corporations Only]
Note that only the common parent of a consolidated group can request an extension of time to file the group's consolidated tax return. You must attach a list of all members of the consolidated group showing the name, address, and EIN for each member of the group. If you file a paper return, you must provide this information using the following format: 8.5 x 11, 20 lb. white paper; 12-point font in Courier, Arial, or Times New Roman; black ink; one-sided printing, and at least ½ inch margin. The information must be presented in a two-column format, with the left column containing the affiliates' names and addresses, and the right column containing the TIN (with ½ inch between the columns). There should also be two blank lines between the listed affiliates.
Generally, all members of a consolidated group must use the same taxable year as the common parent corporation. If, however, a particular member of a consolidated group is required to file a separate income tax return for a short period and seeks an extension of time to file their return, that member must file a separate Tax Form 7004 for that period. (See IRS Regulations section 1.1502-76 for details.)
[NOTE: Failure to list all members of the affiliated group on an attachment may result in the group's inability to elect to file a consolidated return. See IRS Regulations sections 301.9100-1 through 301.9100-3 for more details.]
PART III: ALL FILERS MUST COMPLETE THIS PART
Line 4 ― Corporations or Certain Partnerships That Qualify Under Regulations Section 1.6081-5
Exceptions for foreign and certain domestic corporations:
Certain foreign and domestic corporations are entitled to a 3-month extension of time to file and pay under IRS Regulations section 1.6081-5. You do not need to file Tax Form 7004 if you are taking this 3-month tax extension. You must file (or request an additional extension of time to file) and pay any balance due by the 15th day of the 6th month following the close of the tax year.
Attach a statement to the corporation's tax return, explaining that the corporation qualifies for the tax extension because it meets one of the following requirements:
- It is a foreign corporation that maintains an office or place of business in the United States
- It is a domestic corporation that transacts its business and keeps its books and records of account outside the United States and Puerto Rico, or
- It is a domestic corporation whose principal income is from sources within the possessions of the United States
If the corporation is unable to file its return within the 3-month tax extension, check Box 4 on Tax Form 7004 to request an additional 3-month tax extension.
Exceptions for certain partnerships:
Partnerships that keep their records and books outside the United States and Puerto Rico are entitled to a 2-month extension of time to file and pay.
You do not need to file Tax Form 7004 if the partnership is taking the 2-month extension of time to file and pay. Attach a statement to the partnership's tax return declaring that the partnership qualifies for the tax extension. If the partnership is unable to file its return within the 2-month period, check Box 4 on Tax Form 7004 to request an additional tax extension (up to 3 months for partnerships filing Tax Form 1065, and up to 4 months for partnerships filing Tax Form 1065-B).
If you do not file using a calendar year, complete the lines showing the beginning and ending dates for your tax year.
Check the applicable box for the reason why you are filing a short tax year. To be able to check the box for "Change in accounting period," the entity must have applied for approval to change its tax year — unless certain conditions have been met. For more information, see IRS Tax Form 1128 (Application to Adopt, Change, or Retain a Tax Year) and IRS Publication 538 (Accounting Periods and Methods).
Enter the total amount of tax (including any nonrefundable tax credits) the entity expects to owe for the tax year. See the specific instructions for the applicable tax return to estimate the amount of the tentative tax you will owe. If you expect this amount to be zero, enter -0-.
Enter the total amount of payments and refundable tax credits. (For information about "write-in" payments and credits, see the Instructions for the applicable tax return.)
Tax Form 7004 does not extend the time you have to pay the tax due. If the entity is a corporation or affiliated group of corporations filing a consolidated return, the corporation must remit the amount of the unpaid tax liability (shown on Line 8) on or before the original due date of the return.
Most businesses are required to deposit their tax payments via electronic funds transfers by using the Electronic Federal Tax Payment System (EFTPS). If you file Tax Form 7004 electronically, you can pay your taxes online via Electronic Funds Withdrawal (EFW). See a Tax Form 8878-A (IRS e-file Electronic Funds Withdrawal Authorization for Form 7004). If the corporation expects to have a net operating loss carryback, the corporation can reduce the amount to be deposited to the extent of the overpayment resulting from the carryback ― provided that all other prior year tax liabilities have been fully paid, and Tax Form 1138 (Extension of Time for Payment of Taxes by a Corporation Expecting a Net Operating Loss Carryback) is filed with Tax Form 7004.
Foreign corporations that maintain an office or place of business in the United States should pay their tax as described above for domestic corporations. Foreign corporations that do not maintain an office or place of business in the United States should refer to the Instructions for their tax return (IRS Form 1120-F or 1120-FSC) for details on depositing any tax due.
A trust (Tax Form 1041), electing large partnership (Tax Form 1065-B), or REMIC (Tax Form 1066) will be granted a tax extension even if it cannot pay the full amount shown on Line 8. However, it should pay as much as it can to limit the amount of penalties and interest it will owe.
If you are requesting an extension of time to file Tax Form 1042, see the deposit rules in the Instructions for that form to determine how payment should be made.