Filing a Form 7004 business tax extension is easy! If you are struggling to finish your business tax returns by March 16, 2020, that’s ok. You can apply for an additional 6 months to file without providing the IRS with any reasons and get instant IRS approval!
Even though it doesn’t happen often, the IRS does reject some of these Form 7004’s. Again, that’s ok, you can make corrections and re-transmit to the IRS. When you file your Form 7004 with ExpressExtension, you can re-transmit your rejected form for no additional cost.
We want to save you the time that goes into understanding your Form 7004 errors and correcting them. We are here to help you get it right the first time!
You Chose The Wrong Extension Form For Your Business Type
You may have gotten your extension forms mixed up. Maybe you accidentally filed a personal tax extension instead of a business income tax extension. All you need to do is file the correct form. ExpressExtension makes it easy to choose the extension that applies to the tax return you want to extend. If you want to file both a business and personal extension, ExpressExtension offers a combination package that allows you to file both forms for a discounted price.
The name control is issued to a business entity when they file to request an EIN from the IRS. The IRS provides this sequence of characters and it is derived from the business entity’s name.
The name control has no more than four characters and is generally created by the IRS using the first four characters of the partnership or corporation’s name. If the name control that you enter on your Form 7004 doesn’t match what the IRS has on record, your form will be rejected. You must enter the correct name control AND EIN on your extension form for IRS approval.
The error code associated with this common mistake is [R0000-901].
A Form 7004 Has Already Been Filed for this EIN
This is a very simple mistake and it is easy to fix. If you receive error code [F7004-011-03], contact your accountant as soon as possible. It is likely that you have both tried to file a Form 7004. If your accountant filed this form first and it was accepted by the IRS, you have nothing to worry about. Just don’t re-transmit the 7004 that you have submitted.
You Filed Your 7004 Before Your Tax Year Ended
The IRS will reject your request for an extension if your tax year has not ended yet. If you filed your business income tax extension before the close of your current tax year, we appreciate your eagerness! However, the IRS doesn’t want to hear from you until after the date when your tax year has officially ended. Remember, they give you 3-4 months following the close of your tax year to file your business income tax return, so this is also the window to file your extension.
Just hold your horses! You can re-transmit when your tax year has officially ended.
Your Tax Period Doesn’t Match IRS Records
After formation, business entities are responsible for reporting their tax years to the IRS. Businesses commonly choose to operate on a calendar year schedule. This runs from January 1st to December 31st. However, some businesses report on a fiscal year schedule. Fiscal year filers have tax years end on the last day of any month except December. Be sure that you are reporting by the deadline that the IRS mandates.
Your Routing Transit Number (RTN) Doesn’t Match IRS Records
The RTN is the number that identifies your bank account on a check or money transfer to the IRS. If this number does not match their records, they will reject your Form 7004. Remember to always double check this 9-digit routing number before you transmit your Form 7004 to the IRS.
If you get the error code [R0000-901], go back and check your RTN!
Now that we have covered the most common mistakes that result in Form 7004 rejections, it’s time for you to re-transmit! Haven’t filed your extension yet? Get started today at www.expressextension.com.