FAQs On Form 7004

So filers, keeping you posted about the due date is almost like a routine for us. Business income tax return is due date not too far from our calendar. However, if you are not ready with your documents yet and you looking for extra time to get things in place, you can always file form 7004 through Extensiontax.com by 16th of March 2015.

If you fail to pay your tax or extension, you are liable to pay penalties along with the tax due.
Today, we have jotted down few of the frequently asked questions by our filers.

Purpose of IRS Form 7004:
Form 7004 is a request application that provides 5-month tax extension by partnerships, most estates and trusts, and most multi-member LLCs. However, most other types of business entities (including C corporations, S corporations, foreign corporations, REMICs, and REITs) can use Form 7004 to request a 6-month tax extension.

Due Date For Filing A Business Tax Extension:
You can apply for a business tax extension by filing form 7004 by the original due date of your tax return. For corporations, this deadline is the 15th day of the 3rd month after the close of the tax year (March 15 for calendar year filers). For partnerships, as well as most estates, trusts, and multi-member LLCs, this deadline is the 15th day of the 4th month following the end of the tax year (April 15 for calendar year filers).

Duration Of My Extension:
There are 2 types of business tax extensions offered on Form 7004 β€” the 5-month extension and the 6-month extension. If you are filing an extension for Form 1065, Form 8804, or Form 1041 (trust or non-bankruptcy estate) you need to apply for a 5-month extension. For calendar year taxpayers, a 5-month extension moves the filing deadline from April 15 to September 15. And if you are filing any other business tax return, except sole proprietorships, you fall into the 2ndcategory i.e. 6 months extension. For calendar year taxpayers, a 6-month extension moves the filing deadline from March 15 to September 15.

Many of our loyal customers come up with questions like, if they are sole proprietor, do they have to file form 7004 or form 4868 to get an extension.

Instead of filing separate business tax return, you as a sole proprietor can report business activities on personal income tax return (Form 1040, Schedule C). And you are required to file a personal tax return, you will only need to submit a personal tax extension (Form 4868) to extend the filing deadline for both the business and personal tax forms

What Does Tax Liability Mean In This Context?
Tax liability is the total tax that is assessed on your income, determined by multiplying your taxable income by the applicable tax rate(s). It is sometimes referred to as your β€œtax obligation.” Your tax liability is the number you figure out before any credits or payments are factored in (such as estimated tax installments or Federal income tax withheld).

What is holding you back? Bookmark or save ExtensionTax.com in your browser bookmark tool and efile your extension each time you need through us. Meantime you can reach our Tax Experts for more assistance only @ 1-866-245-3918 or simply email us to support@extensiontax.com