Filing Form 1120 and 1041 Extension: Key Things to Remember
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Running a business or managing a trust comes with plenty of responsibilities, and filing tax returns is one of the biggest ones on the list. But sometimes, you’re just not ready to file your return by the original due date. Here’s where Form 7004 comes in.
If you’re filing Form 1120 for a corporation or Form 1041 for a trust or estate, Form 7004 helps you get more time to file your tax return with the IRS.
In this blog, we’ll explain everything you need to know about Form 7004 in a simple and easy-to-understand manner.
What is Form 7004?
Form 7004, Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns, allows corporations, estates, and trusts to request an automatic extension for filing their respective IRS forms with the IRS.
How Much Time Does Form 7004 Provide?
- For Form 1120 (U.S. Corporation Income Tax Return), you can get up to 6 additional months to file, typically moving the deadline from April 15 to October 15.
- For Form 1041 (U.S. Income Tax Return for Estates and Trusts), you can receive up to 5½ additional months, shifting the due date from April 15 to September 30.
| Important Reminder: Filing Form 7004 only extends your time to file the return—it does not extend your time to pay any taxes owed. You must still pay the full tax amount due by the original deadline to avoid interest and penalties. |
Who Can File Form 7004?
If you’re looking to request more time to file your business or trust tax return, Form 7004 is your go-to option. Here’s who can use it when filing Form 1120 or Form 1041:
- C-Corporations: If your business is structured as a C Corporation, you must file Form 1120 to report your income, deductions, and taxes. By filing Form 7004, you can get an automatic 6-month extension to file your return.
- LLCs Taxed as Corporations: If you own an LLC taxed as a C-Corporation, whether it is a single-member or multi-member LLC, you’ll need to file Form 1120. You can use Form 7004 to request an extension and get more time to prepare.
- Estates and Trusts: If you’re managing an estate or trust, you’ll likely need to file Form 1041 to report income and distributions. Filing Form 7004 gives you an automatic 5½-month extension to submit your return.
Information Checklist to File Form 7004
Before you file Form 7004, make sure you have the following details ready:
- Legal Name: The official name of your business or entity as registered with the IRS.
- Mailing Address: The current address where the IRS can send correspondence.
- Employer Identification Number (EIN): Your business or entity’s unique federal tax ID number.
- Form Code: The code matches the tax form for which you’re requesting an extension (refer to IRS Form 7004 instructions for the correct code).
- Tax Year Information: Specify whether the entity follows a calendar or fiscal year, and enter the beginning and ending dates if using a fiscal year.
Deadline for Filing Form 7004
If you plan to file Form 1120 for C Corporations or Form 1041 for estates and trusts, it’s essential to understand when to submit Form 7004 to receive an extension. The deadline for Form 7004 is the same as the original deadline for the business tax return for which you requested an extension. For the 2024 tax year, the deadline to file Form 7004 is April 15, 2025.
Penalties to Know When Filing Form 7004
Failure to file the actual tax return or an extension may result in hefty penalties.
- Penalty for Late Filing of Return: If you file your tax return after the deadline (including extensions), the IRS may charge you a penalty unless you have a valid reason for filing late.
- Penalty for Late Payment of Tax: If you don’t pay your taxes by the original due date, you could be charged 0.5% of the unpaid tax per month, up to 25% total. However, if you can show reasonable cause for the delay in payment, this penalty may be waived.
| Note: If your corporation gets an extension to file its income tax return, you can avoid a late payment penalty under certain conditions. You must pay at least 90% of the total tax due by the return’s original due date. The remaining balance must be paid by the extended due date. Meeting these conditions means the IRS will not charge a late payment penalty. |
Simplify Your Tax Extension Filing with ExpressExtension
When tax deadlines are approaching fast, but you’re not quite ready to file Form 1120 or Form 1041, Form 7004 is your solution for extra time. It provides an automatic extension—6 months for corporations and 5½ months for estates and trusts—giving you more flexibility to prepare your return accurately. Remember, this extension only applies to filing, not paying, so any taxes owed must still be paid by the original due date.
With ExpressExtension, filing your tax extension is fast, secure, and hassle-free. Our software simplifies the process with features designed to make filing easier:
- Express Guarantee: You will receive a full refund of your filing fee if the IRS rejects Form 4868 or Form 7004 because it is a duplicate filing.
- Copy Return Feature: Save time by copying data from a previously accepted return for faster future filings.
- State Tax Extensions: Easily complete and download state tax extension forms with mailing instructions.
- Real-Time IRS Notifications: Stay updated on your extension request status.
- Volume-Based Pricing: Cost-effective bulk filing with prepaid credits for businesses managing multiple extensions.
- Dedicated Support: Get assistance via phone, email, or live chat throughout the filing process.
File your extension now with ExpressExtension and get the necessary time without the last-minute panic.
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