The world of business is constantly changing, but no matter how many changes occur, they’ll still have to pay their taxes. However, taxes are constantly changing too. Make sure you stay up to date with your tax information on a yearly basis so you don’t miss out on important changes like when deadlines are due, if extensions become nonautomatic, if penalties for late filing increase, and more.
Changes To Form 7004:
One major change recently put into place is that the deadline for form 7004 has been moved up from April 15th to March 15th. So, to get an extension on filing certain business incomes tax, information, and other returns be sure to have your form turned in by midnight on March 15th.
Also, the IRS will no longer be notifying you if your extension has been approved. They will only notify you if your extension is not approved.
What is Form 7004?
In case you don’t already know form 7004 is the form you fill out to request an automatic extension time to file certain business income tax, information and other returns. A few of the certain businesses include partnerships, multiple member LLCs filing as partnerships, corporations, and s-corporations.
The good news is that form 7004 is automatic, meaning as long as you fill out the paperwork correctly and pay your tentative tax in time then you’ll be granted your extension.
Wait, what, pay a tentative tax? Yes. It’s important to remember that form 7004 extends your time to file your taxes, not to pay them. You’ll need to submit a tentative tax by the March 15th deadline.
A tentative tax is basically the estimated amount you expect your tax bill to be. Some people calculate there’s by referencing how much they paid last year, but since major changes can happen to a business in a year resulting in owing more or less than they did previously, so that’s not always the best way to calculate it. Once you file your taxes you’ll learn if you’ll be refunded for over paying or if you owe more.
Now when it comes to filing your form 7004 line 1A is for an automatic 5-month extension and line 1B is for an automatic 6-month extension.
As mentioned above, you won’t receive notice if your extension is accepted, so if you don’t hear from the IRS game on! However, you will be notified via mail if your extension is not approved. Your notice will be mailed to the person or entity who submitted your 7004 form.
Also, even though the IRS automatically approves form 7004 extensions, they reserve the right to terminate them at any time! If your extension is terminated you’ll receive a notice in the mail that will be sent out at least ten days before the termination date.
How to File Form 7004
Here at ExpressExtension, we can help you with all of your extension filing needs. Simply create an account to get started then select the form you would like to complete. We will help you quickly fill out the form with easy to follow instructions on how to correctly fill it out. We will also notify you about which sections need to be completed.
If your extension form is rejected we will send you an email with details as to why, and how to correct your form. You can then resubmit it as many times as you need for free.
Also, our dedicated support team is here to help. Please don’t hesitate to contact use via phone or email with any questions that you may have.