Business Tax Extension
What is a Business Tax Extension?
When a company needs more time to file their business tax returns, most will turn to a business tax extension. This extension, depending on the forms they are filing, will extend their filing deadline by 5-1/2 or 6-Month. The form used to request a business tax extension is Form 7004. This form, known as a Request for Business Tax Extension, must be filed by the due date of the form for which it is being applied.
If you fail to file either a tax extension or return by the appropriate filing deadline(March 15th for businesses and April 17th for individuals), the IRS may assess interest charges on any unpaid federal taxes owed, as well as impose a failure-to-file penalty. The IRS may impose a failure to file penalty of up to 5 percent per Month, or part of a Month, of the taxes due, up to a maximum of 25 percent of the total tax due. If your tax return is more than 60 days late, the minimum penalty is $135 regardless of whether you owe taxes or not. The sooner you file either a tax extension or return, even if you can only pay a portion of the tax owed, the less likely you are to incur penalties from the IRS.
Simple Steps to Follow
In just minutes, you could receive an automatic 5-1/2 or 6-Month tax extension for your business. Below, we will explain the quick and easy steps to file your Form 7004 using our services to extend your tax deadline.
Provide the business data that the IRS requires for you to file a tax extension. This includes the Business Name, Address and Tax-ID/EIN. There is no need for prior tax returns or previous years filing data! All of the information provided is kept secure and not shared with anyone but the IRS.
Estimate the total income tax payment for the filing year, and provide the amount already paid to the IRS through quarterly payments if applicable. Many business customers simply multiply their profits by last year’s tax rate to estimate the total tax liability for the year. If you expect to owe, and want to make a tax payment to avoid potential IRS interest and late payment penalties, we can help you make that payment directly to the IRS via Electronic Funds Withdrawal from yourbusiness bank account (EFT).
Once you submit your business tax extension with Tax2efile, we will electronically E-file it to the IRS for approval. Tax2efile is an authorized IRS E-file provider which means your data, and our transmission to the IRS, is safe and secure.
When to File
Generally, the Form 7004 must be filed on or before the due date of the applicable tax return. The due dates of the returns can be found in the instructions for the applicable return.
Please refer our FAQ section to know more details about this form.