If you are an individual who needs additional time to complete your business tax return, you do have the option of requesting an extension of time. However, it is important to know that you will still be required to estimate how much you owe (assuming you owe anything) by the due date. This is because the IRS may not validate your extension otherwise. In order to apply for a tax extension on your business tax return you just have to fill out the Form 7004.
Form 7004 is better known in the tax paying world as the tax extension form. This is because it is a detailed form with a lot of different sections that must be completed in order for the IRS to accept your extension. Even though the form has 8 different sections, not every section applies to every tax payer. This is actually why this particular form gets so confusing for some individuals who are trying to fill it out.
You only have to fill out Line 1a if you are filing for an automatic 5 monthly tax extension. You only have to fill out Line 1b if you are filing for an automatic 6 monthly tax extension. Keep in mind, you are not going to be able to file for both an automatic 5 and automatic 6. In fact, your application will be rejected if you fill out both of these lines.
Line 2 only needs to be filled out by foreign corporations if they do not have an office that is located in the United States; and line 3 is for corporations online. Anyone who is filling out the tax extension form 7004 must fill out all of part 3.
Line 4 only needs to be filled out by individuals who are entitled to a 3 month tax extension. Line 5 is for individuals to indicate if they are filing for a normal tax year or a short year as well as why you are doing so. Line 6 is arguably one of the more important parts of the form as it is where you specify the amount of taxes that you owe. Naturally, if you expect to owe nothing you would need to put a zero into the blank. Individuals place the total amount of payments they will need to make in line 7.
Line 8 is merely information for the individual filling out the taxes. It simply states that Form 7004 does not extend the amount of time that an individual has to pay the taxes that they have due. It states that all individuals are responsible for paying all of their dues on or before the due date that is listed on their return.