Looking to file for business tax extension. Efile IRS form 7004

tax master By tax master, 2nd Feb 2012 | Follow this author | RSS Feed | Short URL http://nut.bz/lskkjm__/
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Every year business owners struggle to get their tax returns filed on time, which can lead to inaccurate filing or incorrect filing, hence increasing the burden of penalties. But businesses you can relax now. You have a savior. Efile form 7004 and get automatic 5 or 6 month extension on your business tax filing. How? Read further.

Business tax extension filing. Efile IRS form 7004

Every year businesses rush to collect their tax documents and file their tax returns in a hurry, fearing that missing the tax deadline would lead them towards penalties. But, have you ever thought that incorrect filing could also lead to penalties. Besides penalties, if you overestimate your taxes, you could be paying more than you actually owe and if you underestimate your taxes, then IRS will penalize you for that too. So why stress and burden your pocket with unnecessary costs when you can always utilize that money for your business expansion. But, is there a way to prevent such penalties. YES, there is.

If you are a business owner and have to file your tax return, but due to delay in the collection of tax documents or requiring more time to estimate your accurate tax return, you might miss out on the tax deadline, which eventually will lead to late filing penalty. But if you file for tax extension for your business, you can definitely avoid late filing penalty.

A business tax extension allows multi member LLCs, partnerships, corporations, estates and trusts a tax extension of either 5 months or 6 months of time to file their business tax returns. Generally form 7004 (Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns), is used to apply for business tax extension. The type of form that you use for filing your tax return determines weather you are legible for 5 month extension or for 6 months. If you are filing Form 1065, 1041 or 8804 you will qualify for a five month extension. All other business forms qualify for a six month extension. Consult the IRS website or a tax professional if you are not sure which form you need to file for your business.

Every year millions of businesses opt to file for tax extension because it allows them more time to prepare their tax returns accurately and prevent any late filing penalties. IRS actually advices business owners to file form 7004 if they are unable to provide accurate tax returns in a timely manner. Also if you have any other reasons to file for tax extension, then no worries and go ahead. IRS will not ask you the reason. It will merely accept your tax extension request considering that you have filed the correct form and on time.

If you are a business owner and need more time to file your 2011 business tax return, then no worries you have till April 17th 2012 to get your tax return date extended. If you are legible for 5 month extension then your next filing due date will be September 15th 2012 and if you are legible for 6 month extension, then your next filing due date will fall on October 15th 2012.

NOTE: Always remember that an extension to file does NOT allow an extension to pay your tax liability to the IRS. Although you are not required to pay your tax dues with the tax extension form, however if you do so, then it will prevent you from facing late payment penalties. Make sure you pay at least 90% of your tax dues to avoid any late payment penalties and interest charges.


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author avatar John
6th Feb 2012 (#)

Article was very helpful. But I have a question. If I am opting for tax extension then do i have to pay the full amount of my tax liability or paying half would do?

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