As your business income tax deadlines approach, you may realize that you need more time to file your forms. That’s fine! As long as you file an extension properly and pay your estimated tax payment by the deadline, you’re good to go! Here’s the information you need to get it right…
What is Form 7004?
If you are unable to complete your business income tax forms by the deadline then the Form 7004 is your new best friend! Form 7004 is an extension for business taxes that can be filed with the IRS. This form allows you up to an additional seven months to file your business tax forms.
Form 7004 is an automatic extension, this means that as long as you successfully submit your extension form to the IRS before the deadline of the form that you wish to extend, you’re good to go! There isn’t a deliberation process, when you e-file this form, you instantly know that you’ve been granted an extension.
Who Can File Form 7004?
The Form 7004 is applicable to many different business tax forms which apply to the following business entities…
Certain estates and trusts
Business Tax Return Deadlines
March 16, 2020
This is the deadline for the form 1120-S for calendar year corporations. As you can see, the 15th of March falls on a weekend, so your deadline will be on the following Monday.
This is the business income tax return for S corporations.
An S corporation is a corporation that chooses to pass their corporate income, losses, deductions and credits through to their shareholders.
April 15, 2020
This is the deadline for the form 1120. This form must be filed by all domestic corporations or any entity that is as taxed like a corporation.
This form is designed to report income, gins, losses, deductions, and credits to the IRS. It also reports a corporation’s income tax liability.
Even corporations in bankruptcy or corporations with no income must file this form to the IRS.
This is also the deadline for the Form 1065. This form is filed by any and all domestic partnerships.
This form is designed to report the income, gains, losses, deductions, credits, and other information that is relevant to the operations of the partnerships.
What Happens If You Miss A Business Tax Deadline?
Much with other IRS tax forms, there will be consequences if you fail to file and pay your taxes on time. These consequences come in the form of penalties.
The penalty for failure to file these forms is 5% of your business income tax for every month that you are late.
Remember, the Form 7004 extends your information return with the IRS, but it doesn’t extend the deadline for your estimated tax payment.
The late payment penalty is .5% (that’s half of 1%) for each month that your payment is late.
TaxBandits allows you to file your extension instantly and easily! Want an extension for your business income tax return and some peace of mind? Start filing now!