How to File a Corporate Tax Extension

Corporate tax returns must be filed with the IRS on or before the 15th day of the third month following the end of the corporation's tax year.  For example, corporations closing their calendar year on December 31st must file a return no later than March 15th.  If this is not possible, the corporation must file an application for an extension by the due date.

How to File for an Extension

1. Obtain form 7004 titled, "Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns," from the IRS.  It can be downloaded and printed from the IRS website. 


2. Complete the identifying section of the form with the corporation's complete and correct name, address and identification number.


3. Complete either Part I or Part II based on what form the corporation uses to file its tax return. 


4. Complete Part III.  This section asks for general information regarding the type of corporation, tax year of the return and income tax due.


5. Mail the completed form and tax due, if applicable, to the IRS.  Make payments by check with the appropriate Federal Tax Deposit (FTD) Coupon, by Electric Funds Withdrawal (EFW) or via the Electronic Federal Tax Payment System (EFTPS).

Tips:

• Prior to 2006 there were multiple extension forms.  Beginning in 2006 all corporate extensions are requested using form 7004.


• Proofread the complete form for errors, typographical inaccuracies and omissions.  Incomplete or incorrect forms may be discarded without notice to the corporation.


• Filing for an extension provides corporations with additional time to complete their tax return.  It does not extend the time they have to pay their taxes.  Estimate the income tax liability and submit that amount with the completed extension application.  The IRS will assess interest and penalties for amounts not paid on time.


• Procedures for state income tax extensions vary by state.  If the corporation does not owe state taxes, the federal extension may extend to the state level without further paperwork.  Check with the particular state for specific requirements.