Use Form 7004 for Extension of Time to File a Corporation Tax Return

According to IRS.gov, corporations should use form 7004 when they need additional time to file tax information. The form is titled Application for Automatic Extension of Time to File Certain Business Income Tax Information and Other Returns. Corporations are granted either a 5 or 6 month automatic extension. If for some reason the IRS decides to terminate the automatic extension it will notify the corporation by mail.

The form must be filed by the normal date your taxes are due. Corporations need to estimate their tax and submit that payment along with form 7004.

If a corporation has more than one division with different Tax ID numbers, each division must be listed on a separate sheet indicating the name, address, and tax identification number (TIN).

Instructions included with the application advise that form 7004 does not extend the time for payment of the taxes. If taxes are paid late, the corporation will face a penalty for filing late as well as penalty on the tax owed. Interest will also accrue on the unpaid tax at a rate of .05% to 1% per month. However, if the corporation can prove reasonable cause for the delay, the IRS will consider reducing or removing the penalty.

Form 7004 can be found at http://www.irs.gov/pub/irs-pdf/f7004.pdf. The instructions are at http://www.irs.gov/pub/irs-pdf/i7004.pdf. The IRS provides additional details at http://www.irs.gov/instructions/i7004/ch01.html.

The instructions also tell corporations where to file from 7004. Most requests can be filed electronically. Other forms will need to be mailed to the address listed on the instructions.

It is so easy to complete form 7004. All corporations have to do is print or write the corporation name, address, and tax ID number. After that, select the appropriate five or six month extension. The instructions list the corporate tax forms so that you know whether to choose the five month or six month extension. For example, tax form 1120 qualifies for a six month extension while form 1065 qualifies for a five month extension.

The form asks a few questions about the business such as if it has a foreign address or is the parent group of a corporation. The corporation then has to answer questions on the corporation’s tax year, estimate the tax, and include the tax payment. No signature is required.

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