Automatic Extension Requests For Individuals And Businesses

The internal revenue service has lately been taking steps to reduce clutter and reorganize the tax filing method. Now they have facilitated business tax return extensions.

Automatic Extension Requests For Businesses 

In the past years, some businesses were required to go through lots of paperwork in order to file request for extensions to file annual business tax returns.  This would include filing partial extension forms such as forms 8800, 8736, 7004 and 2758.  I get a headache just thinking of it.  It seems that, IRS agents got one also and have decided to do something about it. 

The internal revenue service announced it is doing away with all the different forms for filing requests for an extension to file business tax returns.  Now, all businesses may use one form to get an automatic six month extension.  Form 7004 is the document you will want.  It is entitled Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns.  Yes, I know...  that’s a long name, but the IRS hasn’t figured out a shorter title.  This is still a positive step to reduce the morass of forms usually necessary to obtain extensions. 

To use Form 7004 for your tax filings, you should file it by the date the tax return filing is due.  You're then automatically given a 6 month extension to file the return.  There is also the option for you to get an automatic 6 month extension.  Something very important to keep in mind is that the extension is only for the purpose of extending the filing of the return, not the payment of any tax due.  If you owe tax, you still have to pay the amount due by the original tax filing date.  If you fail to do so, it will cause penalties and interest being applied to the amount you owe when you finally get around to taking care of the tax returns. 

Automatic Extension Requests For Individuals 

Individuals who do not own a company can file for an extension using form 4868, titled: Application for Automatic Extension of Time To File U.S. Individual Income Tax Return.  Well, at least this title is a little smaller. 

Again the same rule applies for individuals when it comes to the extension, it is only for extending the date of the return not the amount due, which will should still be paid by the original tax filing date to avoid interest charges and penalties. 

If you are getting ready to file an automatic extension, make sure you prepare yourself, gather all the necessary documents and try not to put the correct information.  You don’t want to delay the tax process even further.  If you are handling the filing yourself and you feel like it is too much for you to handle, you may want to hire a tax professional.  After all, you don’t want to add any more headaches. 

Good luck with your taxes!