Business income tax deadlines can be a major challenge for corporations and an unexpected necessity for trusts and estates. This month, Form 1120 and Form 1041 are due on April 15, 2021.
In preparation for these deadlines, it is a good idea to do a little review on Form 1120 and 1041. If you need to file these forms but are not ready to meet the deadline, there are other options available. You can file extension Form 7004 for additional time on your income tax deadlines.
Corporations use Form 1120, the U.S. Corporation Income Tax Return, to report income, gains, deductions, losses, and credits to the IRS. They also use this return to figure out their income tax liability. For many corporations operating on a calendar year, Form 1120 is due on April 15, 2021.
Form 1120 is one of the deadlines corporations can extend with Form 7004.
Form 1041 is usually a requirement following a transfer of assets or an estate being left to a beneficiary. Trusts and estates file Form 1041, the U.S. Income Tax of Estates and Trusts, if their estate generated more than $600 in gross income during the tax year.
For calendar year filers, Form 1041 is due on April 15, 2021. Taxpayers can extend this due date by filing Form 7004 on or before their deadline.
What is Extension Form 7004?
IRS extension Form 7004 provides automatic extensions for a variety of business income tax returns. Businesses, trusts, estates, and corporations simply file this form and receive up to six months additional time to meet their deadline.
Form 7004 can be used to extend the deadlines for 36 business income tax returns. It is most commonly used for Form 1120, 1120-S, and 1065, but it is the go to form for your business income tax extension needs.
One key thing to remember is that Form 7004 does not extend payment deadlines. Taxpayers still need to make their payments on time, but they have more time to navigate their filing process with the IRS.
When is the Form 7004 Deadline?
In order to get an extension, taxpayers need to file Form 7004 on or before their income tax due date. For April 15, 2021 Form 1120 and 1041 deadlines, filers need to complete and transmit Form 7004 by April 15, 2021.
How to File Form 7004?
The best way to extend your deadline is to e-file Form 7004. When you file Form 7004 online, your form is transmitted to the IRS instantly. Especially if you’re filing For 7004 at the last minute, this is a great way to ensure you have enough time to file.
You can file Form 7004 in minutes with these 3 simple steps:
- Step 1: Select Business Entity & Form
- Step 2: Select the tax year & payment details
- Step 3: Transmit your form to the IRS