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Automatic Extension Requests For Businesses
The internal revenue service has recently been taking steps to cut down on clutter and streamline the tax filing process. Now they've simplified business tax return extensions.
Automatic Extension Requests For Businesses
In past years, some businesses had to go through a lot of paperwork to file request for extensions to file annual business tax returns. This included filing partial extension forms such as forms 8800, 8736, 7004 and 2758. I get a headache just thinking about it. Apparently, IRS agents got one as well and have decided to do something about.
The internal revenue service has announced it is doing away with all the different forms for filing requests for an extension to file business tax returns. Now, all businesses can use one form to get an automatic six month extension. Form 7004 is the document you will need. It is entitled Application for Automatic 6 Month Extension to File Certain Business Income Tax, Information and Other Returns. Okay, so the IRS hasn't figured out short titles. This is still a positive step in reducing the morass of forms typically required to get extensions.
To use Form 7004 for your 2005 tax filings, you must file it by the date the tax return filing is due. You are then automatically given a six month extension to file the return. Importantly, the extension is only for the filing of the return, not the payment of any tax due. If you owe tax, you still have to the amount due by the original filing period. Failure to do so will lead to penalties and interest being applied to the amount you owe when you finally get around to taking care of the tax returns.
End of the World?
One is tempted to predict the end of the world coming soon. I don't know about hell freezing over, but the actions taking by the IRS in the last calendar year are the stuff of myth. First, the IRS went to bat for the victims of Hurricane Katrina, even issuing detailed instructions on how to claim their losses on past tax returns to get refunds to help them out. Second, the IRS actually raised the mileage allowance in the middle of the year to give business travelers a larger deduction because the IRS felt gas prices were to high. Now, the IRS is eliminating unnecessary and frustrating procedures to make tax filings simpler. The end must be near.
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Irs Related News
Tax Tip 38: IRS Toll-free Help (Daily Record)Free tax help from the IRS is just a phone call away. The IRS provides various services through its toll-free telephone numbers. Some of these services are available 24 hours a day.
IRS Says Not Enough Electronic Returns Filed (Telegraph)The IRS has a technology problem. The number of individual taxpayers who electronically file federal tax returns is growing annually, but tens of millions of people still mail theirs. Last year, almost 73 percent of paper tax returns were prepared on a computer, printed out and mailed in.
How To Eliminate IRS Debt (Evening Times)(ARA) - They say there are two things you can count on in life -- death and taxes. There's no getting around it - if you don't pay your taxes, Uncle Sam will come after you.
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