What S-Corporations Need to Know About Form 7004 for Tax Year 2023

Sometimes time gets away from us, and in the business world, something always comes up! 

March will be here soon, and it is a big month for businesses. While your year-end tax filings are behind you, there are more IRS filing deadlines ahead! Many businesses are required to file their income taxes on March 15, 2024, and this includes S-Corporations.

Since S-Corporations operate differently from other business entities, they have different IRS filing requirements. However, they always have the option to file Form 7004 with the IRS to request extra time to file business income tax returns.

With the deadline already approaching, now is the ideal time to consider an S-Corp tax extension.

S-Corporation – An Overview

An S-Corporation is a corporation that chooses to pass any gains, losses, and income through to its shareholders.

S-Corporation status is assigned by the IRS alone, and this status can only be attained by going through an application process and requesting this distinction from the IRS.

S-Corporations – Tax Filing Requirements

S-Corporations are required to Form 1120-S, the U.S. Income Tax Return for S Corporations with the IRS each year. This form is designed to report the income, gains, and losses for the previous tax year. 

• For S-Corporations operating on a calendar year – The deadline to file this form is March 15, 2024
  
• For S-Corporations operating on a fiscal tax year – The deadline is on the 15th day of the third month after the end of the tax year.

If the deadline falls on a weekend, the form will be due on the next business day. 

Form 7004 – How Does the Extension Work?

Form 7004 is an automatic extension that is provided by the IRS for up to an additional seven months to file your Form 1120-S.

There is no penalty or negative recognition associated with filing Form 7004, and the businesses aren’t required to provide any reason for needing an extension.

Don’t forget that Extension Form 7004 only applies to your business income tax return, your estimated tax payment is still due to the IRS by the original deadline.

Form 7004 – Does it Apply to State Business Tax Filing

It depends! Arizona, Georgia, and a few other states accept approved federal extensions (Form 7004). However, Florida, New Jersey, and several other states require S-Corporations to file separate state extension forms.

The deadline to file business tax returns with some states is on March 15, 2024 as well. 

Visit here to check out the deadline and the business tax extension filing requirements for your state.

How To File Form 7004

IRS Form 7004 can be either paper filed or e-filed with the IRS, as long as it is filed on or before the S-Corporation’s Form 1120-S deadline.

While you have the option to file a paper copy with the IRS, this form is much easier to file electronically. When e-filing you will get IRS status notifications, while when filing a paper copy you won’t. 

E-file Form 7004 with ExpressExtension in Minutes!

ExpressExtension offers a streamlined e-filing process that simplifies the extension process. Once the 7004 Form is completed, it is transmitted to the IRS for approval. This is an automatic extension, so once it reaches the IRS, we will notify you with status updates.

We also offer you another level of confidence with our ExpressGuarantee! Under our ExpressGuarantee, we guarantee your IRS approval. The filing fee for forms that are rejected due to duplicate filing will be refunded.

Ready to get started? Spend less than 6 minutes filing your extension to get up to 6 additional months to complete your business tax return!