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Instructions for How to Fill in IRS Form 7004

Margarete Cotty

2024-04-30 10:44:11 • Filed to: Other IRS Forms • Proven solutions

The IRS Form 7004 is used in requesting for an automatic extension of time to file specific business income tax, information, and other returns.

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Instructions for How to Complete IRS Form 7004

Step 1: Download IRS form 7004 from the official website of IRS and import the downloaded file on PDFelement.

Step 2: Declare 6-Month Tax Extension. The Line 1b is for businesses that are suitable for a 6-month tax extension. These include S corporations, C corporations, REMICs, selecting big partnerships, multi-member LLCs, and specific estates. You need to enter the 2-digit "form code" that matches to your tax return. The codes are listed on Form 7004. If you enter a form code on Line 1b, don't make an entry on Line 1a.

Step 3: Check the line 2 if you are requesting a tax extension for a foreign corporation that does not have a US office or place of business. For this kind of business, tax returns are due by the 15th day of the 6th month following the end of the tax year. So, Form 7004 has been filed by that date in order to get a valid 6-month postponement.

Step 4: Check the Line 4 if you are requesting an extension for a company that's the common parent of a group filing a combined return. You'll have to attach a list of the group's members and include their names, addresses, and EINs.

Step 5: Check the line 4 if the organization that requests for an extension is a company or partnership that qualifies under IRS Regulations.These consist of foreign companies with an office or place of business to be found in the United States, as well as domestic companies that:

Perform business and keep books or records outside of the United States and Puerto Rico.
Or earn their major income from sources inside the United States.

Step 6: If you have a short tax year, then you should check the applicable box because applies to you. The options listed are: Final return, Initial return, consolidated return, and Change in accounting period to be filed. If none of these reasons apply, then check the box for "Other" and attach a statement that clarifies the situations that caused the short tax year.

Step 7: On this line 6, write the total unsure tax that the business expects to owe the IRS, which include nonrefundable credits.

Step 8: On this line 7, write the total payments and refundable credits of the business. The term "payments" normally refers to assessed tax payments that were made throughout the year.

Step 9: Withdraw Line 7 from Line 6 to get to the "balance due" that is the amount of tax owed by the business for that year. Keep in mind that a tax extension only offers you more time to file the return. The amount shown on Line 8 has to be paid by the original deadline of the return. If you automatically file Form 7004, you could also make an electronic tax payment to resolve your unresolved balance.

Tips and Warnings for IRS Form 7004

Form 7004 works for both regular C corporations filing Form 1120 along with S corporations filing Form 1120S. Actually, Form 7004 is the addition form for a bunch of business returns, including both S and C corporations. There is a complete list of all the possible returns on e-file Form, together with a consistent code that makes it easy to use online filing and leaves no error possibilities behind.
Don't mistake when choosing the tax period of filing either calendar or fiscal year. That is where you tell the IRS the purpose of the extension of the tax this year.
If you're an S corporation, you're probably not required to pay any tax with Form 7004 since S corporations normally don't pay corporate income tax with Form 1120S. If that is the case, don't input any tax amount.
Where to File Form 7004: Since IRS Form is a tax extension form for corporations, businesses, partnerships, and trusts, you need to check the table from IRS official website to decide where to file it.