Resource Category: Business Tax Documents & Instructions

Business Tax Extensions Online: What to Expect

Corporations, partnerships, REMICs, and certain trusts that need extra time to file may request a 5- or 6-month tax extension using IRS Form 7004 (Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns). Note that this is only an extension of time to file and any tax owed must still be paid by the original due date.

You are only a few minutes away from getting a 5- to 6-month business tax extension. Here’s how to extend your business tax deadline using the FileLater system to electronically file Tax Form 7004.

Step 1

Provide the business information that the IRS requires for you to file a tax extension. This includes the business name, address, and Tax ID/EIN. Prior year tax returns and all of those other complicated tax forms are not required! All of the information you provide to FileLater is kept safe and confidential, shared only with the IRS.

Step 2

Estimate your total business income tax payment for the filing year, and provide the amount already paid to the IRS through quarterly payments (if applicable). Many business customers simply multiply their profits by last year’s tax rate to estimate their total tax liability for the year. If you expect to owe tax, you may want to make a payment now to avoid potential IRS interest and penalties. FileLater can help you make a tax payment directly to the IRS via Electronic Funds Withdrawal (EFW). EFW withdraws the payment straight from your business bank account (also known as Electronic Funds Transfer, or EFT).

Step 3

Once you submit your business tax extension with FileLater, the system will send your Form 7004 to the IRS for approval. FileLater is an Authorized IRS e-file Provider, which means that your data is transmitted promptly and securely, so you have nothing to worry about.

That’s All It Takes

Once FileLater hears back from the IRS (usually within a day or two), you will be sent an email confirmation notifying you that your Form 7004 business tax extension has been approved. If, for any reason, your tax extension is denied, FileLater will inform you of the grounds for rejection. You will also have the option of making changes to your tax extension request, and you can re-submit it for no extra charge.

Note that nearly all tax extension rejections are because of incorrect Tax-ID numbers that do not match IRS records (which may be due to typing errors or changes in filing information). As long as you submit your request accurately and on-time, it should be approved without any problems — that’s why the IRS calls it and “automatic extension.”

If you have any tax questions, the FileLater support staff is standing by to help you.

File your business tax extension (Form 7004) today!

IRS Form 7004: What It Is & How to File for a Business Tax Extension

What is IRS Form 7004?

IRS Form 7004 is an application for an automatic six-month extension to file certain business income tax, information, and other returns. Officially titled “Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Returns,” it is designed for businesses seeking additional time to file various tax returns. When filed correctly, it provides an automatic six-month extension, allowing businesses to gather necessary information and avoid the rush of last-minute filing.

Who can use Form 7004?

Form 7004 is used by C Corporations, S Corporations, Partnerships, Limited Liability Companies (LLCs), and Trusts and Estates.

Does an extension to file also extend the time to pay taxes?

No, an extension to file does not extend the time to pay any taxes due; payments must be made by the original deadline.

When is the deadline to file Form 7004?

For calendar-year taxpayers, the deadline is March 15, 2025, for Partnerships and S Corporations, and April 15, 2025, for C Corporations and Sole Proprietorships.

How can I file Form 7004?

Form 7004 can be filed electronically through authorized e-file providers or downloaded from the IRS website for manual submission.

What happens if I miss the extension deadline?

Missing the extension deadline can result in penalties for late filing and interest on any unpaid taxes from the original due date.

Key Takeaways

  • Automatic Extension: Filing IRS Form 7004 grants an automatic six-month extension request to file certain business tax returns, including those related to business income tax and business taxes.
  • Timely Submission: Ensure Form 7004 is submitted by the original due date of your tax return to avoid penalties.
  • Payment Obligations: An extension to file does not extend the time to pay any taxes due; tax payments should be made by the original deadline.

Which Entities Can Use Form 7004?

Form 7004 applies to a range of business entities, including:

  • C Corporations: Standard corporations taxed separately from their owners.
  • S Corporations: Corporations passing income directly to shareholders, avoiding double taxation.
  • Partnerships: Businesses with two or more owners sharing profits and losses.
  • Limited Liability Companies (LLCs): Entities offering liability protection with flexible tax options.
  • Trusts and Estates: Fiduciary arrangements holding assets for beneficiaries.

Each entity type has specific forms and deadlines, making it essential to identify your business structure to determine the appropriate filing requirements and gather the necessary information.

Deadlines and Important Dates

The timely filing of Form 7004 is critical. If you need an extension request, the form must be submitted by the original due date of the tax return you are seeking to extend. Below are common entities and their typical filing deadlines:

  • Partnerships and S Corporations: March 15, 2025, for calendar-year taxpayers.
  • C Corporations and Sole Proprietorships: April 15, 2025, for calendar-year taxpayers.

If these dates fall on a weekend or federal holiday, the deadline moves to the next business day. For fiscal-year taxpayers, the due date is the 15th day of the third month after the end of the tax year for partnerships and S corporations and the 15th day of the fourth month for C corporations.

Step-by-Step Guide to Filing Form 7004

  1. Obtain the Form: Download Form 7004 from the IRS website or file electronically through authorized e-file providers.
  2. Complete Part I: Select the appropriate form code that corresponds to the return you are extending. For example, Form 112 for C corporations corresponds to form code 12.
  3. Complete Part II: Provide your business name, address, and Employer Identification Number (EIN).
  4. Estimate Tax Liability: Calculate any expected tax liability for the year. While Form 7004 extends your filing deadline, it does not extend the time to pay taxes owed. Payments should accompany the extension request to avoid interest and penalties.
  5. File the Form: Submit Form 7004 by the original due date of your tax return as part of your extension request. Electronic filing is recommended for faster processing and confirmation.
  6. Retain Confirmation: Keep a copy of the filed form and any confirmation received for your records.

Filing Tips to Ensure a Smooth Extension Process

  • Double-Check Information: Ensure all details on Form 7004 are accurate to prevent processing delays.
  • Use Electronic Filing: E-filing reduces errors and provides immediate confirmation of receipt.
  • Pay Estimated Taxes: Submit any estimated taxes owed by the original due date to avoid penalties and interest.
  • Monitor Confirmation: After filing, verify that the IRS has accepted your extension to ensure it’s in effect.
  • Consult a Professional: If you are uncertain about any part of the process, seek advice from a tax professional to ensure compliance.

Common Misconceptions About Tax Extensions

  • Extension to File vs. Extension to Pay: An extension grants more time to file your return, not to pay any taxes owed. Payments are still due by the original deadline.
  • Automatic Approval: While Form 7004 provides an automatic extension, it must be accurately completed and timely filed to be valid.
  • No Need for a Reason: You are not required to provide a reason for requesting an extension; the IRS grants it automatically upon proper filing.

The Importance of Meeting Extension Deadlines

Failing to submit an extension request by filing Form 7004 by the original tax return due date can result in penalties for late filing. Additionally, interest accrues on any unpaid business taxes from the original due date, emphasizing the importance of timely submission and payment.

Need more help? Explore common questions and answers about the business tax extension process to ensure a smooth filing experience.