What is IRS Form 7004?
The IRS Form 7004 is an application through which US business proprietors can seek an extension for filing specific tax forms. The IRS uses it to record and approve extension requests from businesses.
When is Form 7004 2023 due date?
The due date to file Form 7004 is 15th April 2024.
What is 7004 Extension Filing?
IRS Form 7004 is filed by the businesses to get 6 months extension to file their Form 1120 federal return. For example, if Acme, Inc. is a calendar year company, it will have to file its federal return by 15th April (if not a holiday), but by filing Form 7004, it gets a 6-month extension.
Why do we recommend filing free extensions?
Inkle has been serving 100s of cross-border companies having a subsidiary all across the world. There are a few reasons why a founder would want to file an extension.
Completing their subsidiary financials
In most cases, founders want to make sure that their subsidiary books are matching the parent books.
In some of these countries, March is the year-end followed for federal filings. Companies are so focused on completing their subsidiaries' books that there's little time to focus on closing the parent books and completing the filing.
Getting rid of Unnecessary Deadline pressure
Even if you want to file before 15th April, filing the extension takes away the unnecessary deadline pressure. You can still file the taxes before 15th April and if you are not able to complete the filing by the deadline, you are still covered due to the extension filing.
IRS Form 7004 is Free for Inkle Users 😀
Extension filing is totally free on Inkle; but you need to subscribe to the platform. You just have to come to the platform, share a few details and we will file it for you.
Peace of mind
After filing Form 7004, you have 6 months to collate your finances and file the return. This gives you a ton of time to look at everything and file the 1120 form accurately. Filing Form 1120 in urgency might lead to human errors.
New tax changes are complicated
There have been a few changes under section 174 which are making things a lot more complicated for founders. It has become a lot harder to calculate the exact numbers. Also, there is a possibility of the US Congress making further changes to the rule. So, founders are relaxing a bit and want to give themselves some breathing time to make sure that the numbers are correct. We will talk more about the impact on businesses in a separate post.
Meanwhile, you can check section 174 calculator here.
Feature Preview
With our new free 7004 form filing, you don’t have to enter a huge IRS form to file a simple extension. Just come to the platform, subscribe to the free trial, fill in a few details, and get your extension filed with the IRS with a few clicks.
You will also be able to ask any questions related to the filings from our experts in the chat.
How to try it out?
Here is the link to try out our free extension form. If you are facing any issues with the form, don’t worry, ask us anything related to the form on WhatsApp or call. Once the form is filled, you can signup to track the filing process. After signup, you will land on the form with all the details that you entered. Once you are comfortable to move ahead just move the task to “In Progress” and we will get started with the filing process.
How can I submit Form 7004, the Application for Automatic Extension of Time to File Specific Business Income Tax, Information, and Other Returns?
IRS Form 7004 provides an extension for the filing deadline as follows:
1. For Forms 1065, U.S. Return of Partnership Income, and 1120S, U.S. Income Tax Return for an S Corporation, the deadline is extended by 6 months to September 16, 2024.
2. For Form 1041, U.S. Income Tax Return for Estates and Trusts, the extension is for 5.5 months, setting the new deadline at September 30, 2024.
3. For Form 1120, U.S. Corporation Income Tax Return, the extension allows for a 6-month delay to October 15, 2024. However, if the fiscal year concludes on June 30, the original deadline is September 16, 2024, with the extension offering an additional 7 months until April 15, 2025.
Frequently Asked Questions related to the Extension Filing
Q. What happens if the company is profitable?
A. If the company is profitable, we will have to file estimated taxes to save the company from extra
Q. Why do companies need this?
Companies must file Form 7004 to get an extension for filing their federal taxes. This helps them to get rid of the unnecessary deadline pressure.
Q. Which filings will it extend?
The company will get an extension to file IRS Form 1120, Form 5471 (If they have an international subsidiary), Form 5472 and others.
Q. Will it extend my tax payment deadline
This will not extend your tax payment deadline. You will have to estimate your profits and accordingly make the tax payments for that.
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