How to File for Corporate Extension Without All Taxes Paid
Corporations, like individuals, have yearly tax due dates. They also sometimes run short of funds to pay those taxes on time. However, the Internal Revenue Service allows a corporation to file a corporate extension without all taxes paid at the time of application. The IRS has set up a special procedure for an automatic extension if the corporation files the proper forms by a set deadline. Corporations can receive an extension of up to six months using this procedure.
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Instructions
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Print a copy of IRS Form 7004. Determine the correct corporate tax return form for the corporation seeking an extension. Individuals usually file a Form 1040, but corporations must select among many different return forms. Each tax return form has its own due date. Take note of this due date and enter the correct form number in either Part I or Part II of Form 7004.
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Figure the total taxes due for the current year and fill that in on Line 6 of Part III. The total tax is an estimate of what the corporation will owe for the entire tax year. Enter the amount already paid on Line 7. Corporations may pay a portion of the total tax due and still file for an automatic extension and pay the balance by the end of the extension period. Complete any other fields applicable to the corporation's situation.
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File Form 7004 by the due date of the corporation's tax return form. According to the instructions for Form 7004, the IRS grants an automatic extension and does not send a confirmation. Corporations that complete Part I of Form 7004 receive a five-month extension, and Part II filers receive a six-month extension.
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Send the Form 7004 to the correct address. The instructions include a list of form numbers, principal places of business and IRS addresses. Match up the corporation's tax return form number and principal place of business with the IRS' physical address.
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Add the automatic extension period to the normal due date. For example, those who receive a five-month extension on a return normally due on April 15 will have a new due date of September 15. File a tax return and balance due by that new due date.
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Apply for a tax extension for any state taxes due. The IRS has a page that links to all the state government websites that handle state taxes. For example, New Jersey allows extensions but requires the payment of 80 percent of the amount due to get the extension.
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Tips & Warnings
Know the normal due date of the corporation's taxes at all times. This date determines the deadline for the extension request, so planning ahead is important.
Start figuring estimated total tax early enough before the normal due date to file the extension.
Filers who get the automatic extension still may have to pay a late penalty and interest. Submit the balance as soon as possible to minimize these extra fees.
