Form 7004 (Rev. December 2016) Filing Checklist
Purpose
Form 7004 requests an automatic extension of time to file certain business income tax, information, and other returns. The December 2016 revision clarifies consolidated return group filing procedures and updates form codes to reflect current business entity structures filing under 2016 tax year rules.
Extension Periods by Entity Type
Automatic 6-Month Extension
Returns listed in Part I and Part III are eligible for an automatic 6-month extension from the original due date.
Automatic 5½-Month Extension
Estate and trust returns listed in Part II receive an automatic 5½-month extension from the original due date.
Automatic 7-Month Extension
Returns listed in Part IV receive an automatic 7-month extension from the original due date, except for Form 1120-POL, which gets a 6-month extension.
Step-by-Step Filing Instructions
Step 1: Determine the Correct Part Based on Your Entity Type
Complete only one part of Form 7004 based on your entity classification and tax year. Part I applies to C corporations with calendar-year tax years ending on December 31. Part II applies to certain estates and trusts. Part III applies to all entities that do not use Parts I, II, or IV. Part IV applies to C corporations with fiscal years ending June 30.
Step 2: Enter the Appropriate Form Code
Enter the precise 2-digit form code corresponding to the underlying return being extended. For Part I filers, enter the code on line 1a. For Part II filers, enter the code on line 1b. For Part III filers, enter the code on line 1c. For Part IV filers, enter the code on line 1d. The form code identifies the specific tax return for which you are requesting an extension.
Step 3: Complete Entity Identification Information
Enter the entity name exactly as it appears on the underlying return being extended. Provide the Employer Identification Number or Social Security Number. Include the complete mailing address, including the suite or room number, after the street address. For foreign addresses, list city, province or state, country, and postal code in that order without abbreviating the country name.
Step 4: Indicate Foreign Corporation Status If Applicable
Check the box on Part V, line 2 if the organization is a foreign corporation with no office or place of business in the United States. This disclosure establishes residency status for extension eligibility under the 2016 rules.
Step 5: Complete Consolidated Group Information If Applicable
Check the box on Part V, line 3, if the corporation is the common parent of a consolidated group filing a consolidated return. Attach a statement listing each member’s name, address, and Employer Identification Number. Format the attachment on 8.5 x 11 white paper with appropriate margins and spacing as specified in the instructions.
Step 6: Check Automatic Extension Qualification If Applicable
Check the box on Part V, line 4, if the organization qualifies under the regulations in Section 1.6081-5. This applies to partnerships keeping books and records outside the United States and Puerto Rico, foreign corporations maintaining a U.S. office, domestic corporations transacting business outside the United States and Puerto Rico, and domestic corporations with principal income from U.S. possessions.
Step 7: Enter the Tax Year Information
Complete Part V, line 5a, with either the calendar year or the specific tax year beginning and ending dates for the period being extended. For calendar year filers, enter the year in the designated space. For fiscal year filers, provide both the beginning and ending dates.
Step 8: Indicate Short Tax Year Reason If Applicable
If the tax year is less than 12 months, check the applicable box on line 5b indicating the reason. Options include initial return, final return, change in accounting period, consolidated return to be filed, or other. When checking others, attach a statement that explains the circumstances causing the short tax year.
Step 9: Calculate and Enter Tentative Total Tax
Enter the tentative total tax on Part V, line 6. Calculate this amount as if the full tax liability for the extended return were due, including all estimated taxes, Alternative Minimum Tax, and any other applicable taxes for the year. If you expect the amount to be zero, enter zero.
Step 10: Enter Total Payments and Credits
Enter total payments and credits on Part V, line 7. Include estimated tax payments made during the year, prior-year overpayment credits applied to the current year, and any other credits allowable under the 2016 tax law that reduce the final balance due.
Step 11: Calculate Balance Due or Overpayment
Calculate the balance due on Part V, line 8, by subtracting line 7 from line 6. If the result is positive, payment is required with the form to avoid penalties and interest during the extension period. If line 8 is zero or negative, the extension is automatic, and no payment is required.
Step 12: File by the Original Due Date
File the completed Form 7004 by the original due date of the underlying return without regard to any prior extension. Filing after the original due date does not grant an extension. The form can be filed electronically for most returns or by mail to the appropriate IRS Service Center based on the return type and location.
Step 13: Retain Documentation for Records
Keep a copy of the filed Form 7004 for the entity’s records. The extension is automatic upon timely filing, provided all required information is complete and accurate. The IRS will notify you only if the extension request is disallowed, not if it is approved.
Special Considerations for the 2016 Tax Year
Form Codes for Specialized Returns
Form 8924, using code 35, reports excise tax on certain transfers of qualifying geothermal or mineral interests. Form 8928, using code 36, reports certain excise taxes under Chapter 43 of the Internal Revenue Code related to group health plans.
Consolidated Group Member Identification
Each member entity’s name, address, and Employer Identification Number must match IRS records as of the application filing date. Failure to properly list members may affect the group’s ability to file a consolidated return.
Alternative Minimum Tax Consideration
Entities with substantial preferences or adjustments must include the tentative Alternative Minimum Tax when calculating line 6 of their tax return. This ensures accurate estimation of the total tax liability for the 2016 tax year.
Short Tax Year for June Fiscal Year Filers
A corporation with a short tax year ending anytime in June is treated as if it ended on June 30 and should complete Part IV rather than Part III.
Important Reminders
No Signature is required.
Form 7004 does not require a signature. The form is valid when it is properly completed and filed promptly.
Extension of Time to File, Not Pay
Form 7004 extends only the filing deadline, not the payment deadline. Any tax due must be paid by the original due date to avoid interest and penalties.
Electronic Filing Available
Form 7004 can be filed electronically for most returns. However, electronic filing is not available for Forms 8612, 8613, 8725, 8831, 8876, or 706-GS(D).
Payment Methods
Most entities are required to use electronic funds transfer for federal tax deposits through the Electronic Federal Tax Payment System. Corporations can also use Electronic Funds Withdrawal if filing electronically.
Penalty Considerations
If at least 90 percent of the tax shown on the return is paid by the regular due date, the late payment penalty will not be charged even if a balance remains at the extended due date.
Separate Application for Each Return
File a separate Form 7004 for each return requiring an extension. The extension applies only to the specific return identified on the form.
Name and Identification Number Matching
The entity name and Employer Identification Number entered on Form 7004 must match the information in the IRS database. Mismatches may result in an invalid extension.
Termination of Extension Period
The IRS may terminate the automatic extension at any time by mailing a notice at least 10 days before the termination date. This termination authority applies even when the extension was properly granted.
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This checklist is for educational purposes only and does not constitute tax or legal advice. Always review official IRS instructions and consult a qualified professional for guidance.
