IRS Form 7004

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Form 7004 is designed to allow the filler to automatically extend the deadline for filing various tax and information returns. The document aims to provide more time for tax returns to businesses, LLCs, and other corporations. A successful extension will take place under the terms of correctly filling out the form, submitting it by the designated deadline, and correct assessment of the tax of the company that requests the extension of the deadline for tax returns. Our comprehensive review explains how the form functions and how to complete it under the legal rules.

When to use this form?

Corporations and partnerships of various types of market activities use IRS Form 7004 to prolong the terms for filing tax returns to the semi-annual period. The most common case of using the Form is when a small business submits an application as a partnership or corporation and needs an extension of the deadline. In this and other cases, it is highly significant to estimate the supposed amount of tax as accurately as possible in order not to come to underpayment of taxes. This is important because the IRS can charge you a fine for not paying the full tax number.

When using IRS Form 7004, it is important to remember the key point of the document. The form extends the deadline for filing returns but not for tax payments. As for the deadline for submitting Form 7004, employers must submit it before the tax payment deadline or on time. The terms of returns are specified in the instructions for the corresponding returns. If your company is going to request multiple extensions of tax filing deadlines at once, do not use the same form for all returns.

Take into account the list of forms with which Form 7004 operates. You will find the list in the “Part I” section in the first half of the document. IRS warns that Form 7004 is not suitable for prolongation of Form 1041-A (the tax return on income that the heir of the deceased submits after their death. It is similar in legal type to the return that would be issued by a person or a company). To renew 1041-A automatically, use Form 8868 instead. Well, back to the topic of our review.

In short, you need to remember three key points when submitting Form 7004:

  • Only Tax Returns.

The form extends the deadline for filing a tax return but does not make the employer free from paying tax on time.

  • Exact Calculation.

It is necessary to estimate the amount of tax to be paid precisely in order to avoid penalties from the IRS.

  • One form for one extension.

Since Part 1 of the Form is designed to extend only one tax return, submit a separate document for each return you request.

Since we have covered the basic issues about using Form 7004, now we can go into the details. See the next section for more information about how to fill out the form.

How to Fill Out Form 7004

The filler has two options for how to complete the form. They can print out the paper and enter the data by hand or use our online form constructor. Anyway, it will be useful for everyone to read the following tips for a better understanding of the structure of the document. Despite the fact that this Form is quite short in comparison with other forms of IRS, some points need to be commented on. So that you do not miss some lines of the form, we have highlighted several steps in filling the document out:

Input identification data

Fill in the document header area. This field includes the filler name, full address, and your company’s tax identification number (in the upper-left corner).

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Indicate Tax Return Code

In the first line after the header, enter the code of the tax return, the deadline for which you intend to extend. The table below this row provides the matching of tax return forms and codes. For example, if you are requesting Form 8612 prolongation (calculation and payment of excise tax on undistributed income in an investment trust), enter code 28.

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Since the form has only one field for the form code, a new Form 7440 must be used for each new renewal application.

Provide company Status

We now turn to Part II of the document, and lines 2-4 are aimed at identifying the status of your business. Read these sections carefully and check the box carefully.

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Fill out Tax Year terms

Enter the start and end date of the tax year. Specify whether this tax year is short for your company (item 5b).

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Fill out tax and payments

Terms 6 to 8 relate to the estimated amount of tax, payments, and loans.

In item 6, enter the total tax number that is expected to be paid for the current tax year. It is needed to make preliminary calculations and evaluate the future activities of the company before filling in this line.

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In item 7, point out the total payments and refundable credits. Finally, in line 8, enter the balance due.

This is a brief overview of filling out IRS Form 7440. For more information, please refer to the official instructions developed by the IRS specialists. The IRS accepts both scans and forms filled out electronically through the online deed constructor.