IRS Form 7004 is called as Application for Automatic Extension of time to file certain Business Income Tax Information, and Other Returns. From the very name of this form, it can rightly be concluded that this form is best suited for all those business entities trying to file their five or six month’s federal tax extension legitimately. Some points that comprehensively explain everything important about Form 7004 have been detailed below:
Purpose
Extension is permitted and even held valid if the criteria mentioned below are met properly:
• Form 7004 solely needs to be filled properly without any scope of interpretation and even without ambiguity.
• Tax estimation, if applicable, needs to be perfect or correct.
• It is mandatory to fill the form within the due dates. Along with this, the tax that is owed should be paid in the correct manner.
Verifying the Extension Period
It is important for the tax payers to check the Line number and the Part number they fall under for judging their time eligibility.
• 6-month Extension: A type of return is eligible for a 6 month extension automatically if it matches with the ones highlighted in Part II Line 1b.
• 5-month Extension: A type of return is eligible for a 5 month extension if it matches with part I Line 1a of form 7004.
• It is also necessary for the tax payers to scrutinize or go through Lines 2 and 4 prior to choosing their specific extension period.
Exceptions
Lines 2 and 4 of the IRS form 7004 generally highlight the exceptions which are applicable. These exceptions include:
• Line 2: This is for the foreign corporations not having a business place or an office in the entire United States.
• Line 4: Line 4 is applicable for selected domestic and foreign partnerships and corporations.
Extension Termination
Internal Revenue Service or the IRS possesses the right of cancelling the extension on valid grounds. A notice of termination will genuinely be mailed to an entity or an individual 10 days before the termination date.
Filling Up Form 7004
Form 7004 can either be filled offline or online. Online filling can easily be carried out at the official website of the IRS. Online form filling on IRS’s website is completely free. However, the form filling can also be carried out manually. This can be done by getting the form from one of IRS’s local outposts.
Tax payers also have the flexibility of getting the form printed from IRS website. Once the manual or online filling of the form is complete, it needs to be mailed to an IRS authority. Remember, that there is no signature needed in the form. The applicant is not notified by the IRS in case his or her application is approved. However, the IRS informs an applicant if his or her application has been rejected.
