Why it matters
A business that cannot finish its return by the original date can file Form 7004 and avoid the late-filing penalty, but the tax is still due on the original date. The extension period depends on the return type.
Example
A partnership is waiting on a partner's information and cannot file Form 1065 by March 15. The preparer files Form 7004, arranges any tax payment and completes the return by the extended date.
Related terms
Questions about Form 7004
Does Form 7004 extend the time to pay tax?
No. It extends the time to file. Any tax due should be paid by the original due date to limit interest and penalties.
Which returns can use Form 7004?
Common returns include Form 1065, Form 1120, Form 1120-S and Form 1041. The form instructions list the eligible returns and the extension period for each one.