- February 20, 2015
Every business including corporation whether through subchapter C or S know about the importance and benefit of IRS form 7004 as it offers an automatic extension of time for filing the business tax return for 5 or 6 months. The definite purpose of IRS through form 7004 giving an automatic extension of time is to see that companies be it partnership, a multiple member LLC filing as a partnership, a corporation, or s-corporation should never go away unaccounted without answering IRS of the required payable tax with the essential tax information returns as demanding by public IRS and according to its strictures of the tax collections as infinite as ever-lasting and ever-finding a good cause to see that the underprivileged of the society be benefitted in the larger scenario.
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Every company, be it a large corporation or small corporation including partnerships and LLCs must report to the IRS according to their respective IRS business forms as prescribed and should pay the due taxes with returns filed by the due date as according to respective IRS forms for which they are entitled and subjected. Form 7004 comes in handy by way of an automatic extension of time when they need more time to report the income tax returns. However the IRS is always determined to see that Form 7004 only gives an extension of time for filing tax returns by businesses and not an extension of time given for paying taxes should always be understood. IRS states “Form 7004 does not extend the time for payment of tax.” The companies concerned including corporations and partnerships with LLCs should pay taxes which is due or an estimated account as a part of the tax due by their tax return due date.
This is despite companies filing form 7004 for an automatic extension of time whether for 5 or 6 months which is also should be done on their tax return due date respectively to get the proper grant from the IRS. When companies fail by undermining the IRS instructions in flouting the rules by not estimating the tax dues as owed to the IRS in a genuine way and not also committing to pay at least 90% of their tax dues are then subjected to late payment penalty with applicable interest depending on tax amount not payable to IRS within the due dates as applicable. This holds true irrespective of corporations or partnerships under-estimating their tax dues to be payable on their respective prescribed due dates according to their subject IRS forms through which they should report. Form 7004 only gives a lease of extension time to defer due dates for filing the income tax information returns for the companies and corporations.
Corporations C or S must file their tax returns through form 1120 and 1120S respectively by March 15th after the close of their fiscal year. Normally corporations should or expect to close their tax year by the year-end date December 31st of every year.
In the same way, partnerships and LLCs including multi-member set-ups filing form 1065 have their tax return due date as April 15th,
The e-filing form 7004 by corporations can get those 6 months’ automatic extension of time for filing income tax returns while partnerships and LLCs get 5 month automatic extension of time by filing form 7004 through a trusted tax partner like Tax2efile
