As a business owner, keeping up with tax deadlines and compliance requirements can be challenging. Ensuring everything is filed correctly can be stressful, especially when you’re trying to run your business, make a profit, and grow. But fear not! The IRS offers some flexibility when it comes to filing taxes with Form 7004, Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns. In this article, we’ll explain what Form 7004 is, who it’s for, and how to file it.
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What is IRS form 7004?
Form 7004 gives businesses an extra six months to file their income tax return (but not to pay their taxes). For example, if they would normally file their tax return on March 15th, Form 7004 gives them until September 15th to file, and if they normally file on April 15th, they’d have until October 15th.
Now that we better understand the form’s purpose, let’s find out why a business may need to file it.
Why would someone complete Form 7004?
Running a business is complex, and sometimes taxes can fall by the wayside. There are many reasons why small or medium-sized businesses might decide to file Form 7004. These include:
- Tax preparation complexities: Sometimes, preparing taxes is just too complicated. Filing Form 7004 allows businesses more time to find the right tax preparation software or the right CPA, prepare the return, and review it to ensure it’s accurate.
- Missing paperwork: Gathering all the necessary documents required to file taxes can be time-consuming. If you’re still waiting for crucial information from vendors, banks, or other parties, filing an extension can give you some breathing room.
- Unexpected life events: Sometimes, life throws curveballs. Maybe you or your key accounting staff member recently dealt with an illness or a family emergency. An extension can provide some much-needed time to catch up.
Who must file Form 7004?
While no one is required to file Form 7004, most businesses can file it if they need an extension. Here are the types of entities that can file Form 7004:
- Partnerships (Form 1065)
- C-Corporations (Form 1120)
- S-Corporations (Form 1120S)
- Estates and Trusts (Form 1041)
- And more!
How to complete Form 7004?
Simply put, Form 7004 can either be completed by hand, or with a tax preparation software. To fill it out by hand, you can download a PDF of the form from the IRS website. Here are the steps to fill out the form:
- Enter your business info: enter your business’s name, ID number (EIN or SSN), and full address.
Part 1 – Enter your form code: enter the code associated with the tax return your business files each year. Here are the most common tax returns:
- Form 1065 – Partnership tax return
- Form 1120S – S-Corporation tax return
- Form 1120 – C-Corporation tax return
- Form 1041 – Estate and trust tax return
Part 2 – Enter your tax info:
- Lines 2, 3, and 4: If any of the listed situations apply to your business, check the appropriate box.
- Line 5 – Tax year: Enter the year that you’re filing this Form 7004 is being filed for. You can either use a calendar year, like 2024, or a fiscal year, like 9/30/2023 to 9/30/2024. If your business started up this year or is closing down this year, check the appropriate box in line 5b to indicate this.
- Line 6 – Tentative total tax: Enter the total business tax you’re expecting to pay for this tax year.
- Line 7 – Total payments and credits: Enter any estimated tax payments you’ve already made, as well as any tax credits your business is eligible for.
- Line 8 – Balance due: Subtract Line 7 from Line 6, and enter the result on Line 8. This is the tax due with your Form 7004.
Now that we have covered the steps to complete this document, let’s break down how it gets from point a to point b.
How to file Form 7004?
Once you’re done filling out Form 7004, it’s time to file it. You can either file it electronically on the IRS’s website or by mailing it to the IRS. Here’s how:
- E-Filing: Log into the IRS’s Modernized e-File (MeF) platform and follow the steps to file your Form 7004 there. You can also make a payment through this platform.
- Paper filing: Paper filing is as easy as sending a letter. Just put the form in a standard envelope and include a check for any payment due. Where you’ll mail your form depends on your tax return type and where you live, so check Page 4 of the Form 7004 Instructions to find the right mailing address for you.
Are there any penalties for filing Form 7004 late?
Because the IRS doesn’t know you intended to file a Form 7004 instead of your regular tax return, if you file late, they’ll assume your regular tax return is filed late. As a result, you’ll incur penalties for late filing and for late payment of any taxes due. The penalty is generally ½ of 1% of any unpaid tax for each month or part of a month that the tax remains unpaid.
How long does the IRS filing extension last?
The IRS provides a 6-month extension of time to file your tax return with Form 7004. Here are the timelines for the most common types of tax returns:
| Tax return & business type | Original due date | Extended due date |
| Form 1120 – C-Corporations | April 15th | October 15th |
| Form 1120S – S-Corporations | March 17th | September 17th |
| Form 1065 – Partnerships | March 17th | September 17th |
| Form 1041 – Trusts and Estates | April 15th | October 15th |
Form 7004 is worth being familiar with
Understanding what Form 7004 is used for and how to file it makes smart business sense. Because it gives businesses an extra six months to file their income tax return, knowing the steps to complete it can be useful if life events happen or you just need extra time getting your documents in order. Best of luck as you keep growing your business and keeping up-to-date on all the to-dos business owners need to think about.
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David Kindness is a CPA, experienced financial writer and editor, and a tax and accounting expert with 7+ years of experience. David lives and works in San Diego, California.