The year-end deadlines may be in our rearview mirror, but the deadline to file business income taxes with the IRS is only days away. We all know that 2020 has been an extremely stressful time for everyone, especially businesses.
That’s why we want to remind all of our clients that there is another option available if they need more time to complete their business taxes. This reprieve comes in the form of a 7004 extension.
Here’s what you need to know if your business is considering filing an extension with the IRS this year.
Background on Form 7004
The Form 7004 is an IRS tax extension form. This is the form that businesses should file to apply for an extension with the IRS. As long as the business files their extension before the original deadline of the form they want an extension for and the information they file matches the IRS records, your extension will be accepted automatically. The IRS doesn’t expect or require any explanation, just timely and accurate filing.
When to File Form 7004?
When you file your Form 7004 extension depends on the deadline of your business income taxes, mainly what form the IRS requires your business to file. If your business is recognized by the IRS as a partnership or S-corporation, your business income taxes are usually due three months from the close of your tax year.
For businesses operating on a calendar year, this deadline is March 15, 2021. Which means if you are considering an extension, it’s time to get a move on!
What information is required to File Form 7004?
Once you have the necessary information, you’ll be surprised how simple it is to complete Form 7004! Here is the information you will need to file:
Your business type (S-corporation, partnership, etc.)
Your basic business information like your name EIN, and address (remember, for approval this information must match what the IRS has on file)
Which tax form you are requesting an extension for
The start and end date of your tax year, do you operate on a calendar year?
Your estimated tax payment
How to file Form 7004
The actual process of filing your Form 7004 is pretty simple, especially when you e-file this form. The IRS recommends that you e-file and so do we!
At TaxBandits, it’s our goal to help you maintain your IRS compliance with as little stress as possible. One of the ways you can alleviate the stress of filing and help spare yourself penalties is by filing an extension.
Our sister product ExpressExtension is designed to help you file your extension accurately and in minutes! To check it out, click here, you can even sign in using your TaxBandits credentials!
There are just three simple steps to completing your Form 7004 with Express Extension.
Choose your business type and extension form
Select the tax year and enter your payment details