It’s that time again, if you haven’t already come up on your business income tax deadline, it is most likely tomorrow! There are many forms due to the IRS on April, 15, most popularly the Forms 1120 and 1041.
So, you are a business that is doing your best right now, but you just need some more time to file…what do you do?
Don’t worry, there is still an option. You can file an extension Form 7004 to extend your deadline up to 6 months. However much like Cinderella’s carriage, this option turns back into a pumpkin at midnight on April 15, 2021!
Let’s cover both the common forms that are due to the IRS on the 15th and how you should tackle your Form 7004.
What is Form 1120?
Form 1120 is the U.S. Corporation Income Tax Return. According to the IRS instructions, this return reports the corporations income, gains, losses, and credits/deductions. This form is also used to identify the tax liability of the corporation and other important financial information and activities that have taken place during the tax year.
The Form 1120 is a tax form that should be filed by corporations. In addition any other business that elects to be taxed as a corporation by the IRS will also be required to file this form. All corporations operating on a calendar year are required to file this form on April 15, 2021.
What is Form 1041?
Form 1041 is the U.S. Income Tax Return for Estates and Trusts. The IRS requires that the fiduciaries of trusts and estates file this form. According to IRS instructions, It reports a variety of information to the IRS, including the income, gains, and deductions of a decedent’s estate, domestic estate, trust, or bankruptcy estate.
All estates and trusts operating on a calendar year are required to file this form on April 15, 2021.
What is Form 7004?
Form 7004 provides an automatic extension for business income tax returns for up to six months when filed properly. This is a straightforward form with a single purpose.
What information is needed to file Form 7004?
Once you have the information needed to file, you’ll be surprised to find that completing 7004 Form is pretty easy! This is the information you will need to file:
Your business type (estate, trust, etc)
The estate or trust’s basic information,like the 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.
Now that you have seen how simple the Form 7004 can be, are you ready to file?
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