The IRS tax extension form 7004 is called Application or Automatic extension of Time to File Certain Business Income Tax, Information, and Other Returns. The requirements for an explanation of the requirement of extension time for filing and a signature for such returns have also been successfully removed. The filers do not get any notification about the approval of the extension. The notifications will be sent only if the extension request has not been approved. The filer needs to file only one tax extension form 7004 on or before the due date of the form. However, separate form 7004 electronic filing needs to be done for each tax return.
Purpose of Tax Extension Form 7004
Form 7004 electronic filing can be done for requesting the automatic time extension for filing certain business income taxes, information as well as returns. These extensions are successfully granted only if the form is filled in properly. Apart from this, the filer also needs to make an accurate tax estimate if applicable, file form 7004 on or before the due date of tax return applying to the form and paying the tax returns which are due.
Reasons to File Tax Extensions
Paying tax returns every year is a little difficult because of the complicated codes. It is definitely not an easy thing to do for the tax payers. This is one reason why the tax payers need to give themselves some time when trying to pay their taxes. E-filing tax extension is one of the most advantageous things that the tax payers can do. There are good reasons that support the fact that e-filing a tax extension is advantageous.
• The e-filing procedure is completely paper-free. This means that it saves the trees and it also saves an individual from the hassle of filling the paper forms that turn out to be very complicated. The tax payers are also not required to deal with extra papers. They have an easy to fill electronic form.
• E-filing tax extension is the only way of getting IRS confirmation about the approval of the tax extension. The professional e-file providers take good care of electronic extension requests and they inform the filers regarding the approval of their extension by the IRS.
• The e-filing procedure is quite fast. It takes just a few minutes to fill out and submit form 7004 online. With this option, you get the flexibility of taking the march 15 and April 15 burden off the shoulders.
• E-filing is one of the most preferable methods for the IRS. Paperless form filling is being supported by various organizations these days and the same goes for the IRS as well.
• There is no loss of data as you can get everything in your mail. By choosing the e-filing procedure, you actually avoid standing in queue at the post office for paying your taxes.