What S-Corporations Need to Know About Form 7004 for Tax Year 2020
There is no question about it, running a business in 2020 has been extremely hard. When was running a business ever easy? Many businesses have just completed their year-end tax filing for 2020. This includes W-2s, 1099s, and employment tax returns. While completing all of these tax forms is a relief, there are more IRS requirements right around the corner.
Business Income Tax Returns. As an S-Corporation, your filing deadline is March 15, 2021, if you operate on a calendar tax year. While this may seem safely in the future, these deadlines will be here before you know it!
If you need more time to compile the information required to file, there’s no need to risk unwanted IRS penalties. Your business has the option to file an extension of time.
It’s time to get better acquainted with the Form 7004, Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns, with the IRS.
What is the Form 7004?
Form 7004 is an IRS Tax Extension that applies to business income tax returns specifically. This is an automatic extension of time, so the IRS doesn’t require you to provide any reasons for filing.
Simply file the application for extension by the original deadline of the form you are extending, and the IRS will approve your extension.
Filing Requirements for S-Corporations
Business organizations that elect to be treated as an S corporation by the IRS and in return receive written approval from the IRS are required to file the Form 1120-S. This is the IRS business tax return designed specifically for S corporations.
In addition to the 1120-S, S corporations must file Schedule K-1 for each of their shareholders. This attachment form informs the IRS on how the percentage of shares are dispersed among these shareholders.
What is the deadline for filing 1120-S?
Form 1120-S and all required attachment forms are due to the IRS no later than the 15th day of the third month following the end of the S corporation’s tax year. For organizations operating on a calendar year schedule, this deadline is generally, March 15, 2021.
E-filing Form 7004
Your organization may find that this is not enough time to compile the needed information for this tax return. That’s perfectly fine! Despite common misconceptions, the IRS has no problem with businesses filing extensions.
As long as you file the Form 7004 with accurate information before your original filing deadline, the process will be simple and straightforward. The IRS doesn’t require you to provide any official reason for filing your extension and when filing electronically, you can receive instant IRS updates.
With ExpressExtension, e-filing your Form 7004 with the IRS has never been easier! ExpressExtension is designed to make your filing experience smooth and accurate. Our application walks you through every step of the Form 7004 filing process.
Complete your Form 7004 in minutes! Plus, if your Form 7004 is rejected, ExpressExtension allows you to correct and re-transmit it at no additional cost to you!
Check out this video for more information!
Start filing today with ExpressExtension!
