Filing timely returns for partnerships (Form 1065), S corporations (Form 1120-S), and LLCs (if filing as partnerships or corporations) can be challenging. IRS Form 7004 provides an automatic six-month extension—but only if you complete the correct line, estimate tax liability, and submit payment when required. This in-depth guide covers everything you need for a flawless extension in 2025.
Introduction
Most partnerships and S-Corps must file by March 15, while C-Corps and LLCs electing corporate status follow the same date. Form 7004 extends your filing deadline to September 15, 2025, but you must still pay any tax due by the original deadline to avoid interest and penalties.
Relevant IRC Codes & Definitions
- IRC §6072 – Sets due dates for corporate and partnership returns.
- IRC §6081 – Authorizes extensions of time to file upon proper application.
- IRC §6651(a)(1) – Imposes a 5 % per month late-filing penalty, up to 25 %.
- IRC §6651(a)(2) – Imposes a 0.5 % per month late-payment penalty, plus interest under IRC §6601.
- IRC §1502 – Consolidated return rules (for corporate groups; Form 7004 covers consolidated returns on Line 1c).
IRS & State Form References
| Return Type | Form 7004 Line | Original Due Date | Extended Due Date | State Extensions |
|---|---|---|---|---|
| Partnership (Form 1065) | 1b | Mar 15, 2025 | Sep 15, 2025 | Most mirror federal automatically; check your state tax agency |
| S Corporation (Form 1120-S) | 1a | Mar 15, 2025 | Sep 15, 2025 | Varies; e.g., CA Form 3537, NY Form 60-B |
| C Corporation & LLC (Form 1120) | 1a | Mar 15, 2025 | Sep 15, 2025 | Many states follow federal; verify specific requirements |
| Consolidated (Form 1120-C) | 1c | Mar 15, 2025 | Sep 15, 2025 | State treatment varies |
Real-World Example
Case Study:
- Alpha Partners (1065) anticipates K-1 data delays. On March 15, it files Form 7004 (Line 1b) and pays 100 % of its $20,000 estimated withholding.
- BetaTech Inc. (1120-S) expects one late K-1; on March 15, files Form 7004 (Line 1a) with zero payment (no tax due).
Both secure a September 15 deadline and avoid late-filing penalties—though Alpha must account for interest on any underpayment.
Step-by-Step Guide to Using Form 7004
- Determine Your Return Type & Code
- Partnerships (Line 1b), S-Corps & C-Corps (Line 1a), consolidated (Line 1c).
- Estimate Tax Liability
- Use prior year or interim data; pay at least 90 % to avoid late-payment penalty.
- Complete Form 7004
- Provide EIN, name, address, return type, and tax year.
- Enter estimated tax due (or “0” if none).
- Submit Payment
- Via EFTPS, credit card, or check with voucher by the original due date.
- E-File or Mail
- E-file through IRS-approved software or mail to the address in the instructions.
- Retain Proof
- Save IRS acknowledgment or canceled check.
- File the Return by September 15
- Mark “Extension filed” at the top of Form 1065/1120-S.
- Pay any balance due with the return.
Conclusion
Form 7004 is straightforward—but mistakes on lines, payment amounts, or mailing addresses can cost 5 % per month in penalties. Understand the correct line for your entity, pay estimates on time, and file for your six-month extension to avoid unnecessary IRS penalties and interest.
Call to Action
Need expert help filing Form 7004, estimating tax, or coordinating state extensions?
Schedule an extension planning session with Anshul Goyal, CPA. We’ll handle every detail so your partnership or S-Corp stays penalty-free in 2025.
Disclaimer
This guide is for informational purposes only and does not constitute legal, tax, or financial advice. Extension rules and penalty safe harbors depend on accurate estimates and timely payments. Federal and state extension procedures may change. Consult a licensed CPA before filing an extension or making tax payments.
Anshul Goyal, CPA EA FCA is a U.S.-licensed CPA, IRS Enrolled Agent, and Chartered Accountant (India). He specializes in extension filings, penalty avoidance, and multi-state tax compliance for partnerships, S-Corps, and LLCs.
FAQs (Top 5 High-Searched Questions)
1. Which line of Form 7004 do I use for an LLC taxed as a partnership?
Use Line 1b (Partnership Return).
2. Does Form 7004 extend the time to pay tax?
No. You must pay estimated tax by the original deadline to avoid interest.
3. Can I e-file Form 7004 for a partnership?
Yes. Many tax-software providers and the IRS Modernized e-File system support 7004.
4. What if I file Form 7004 late?
You face late-filing penalties (5 % per month) plus interest—file immediately to curb costs.
5. Do states automatically honor the federal extension?
Most do, but some require separate forms or payments—verify with each state’s tax authority.
About Our CPA
Anshul Goyal, CPA EA FCA has helped over 2,000 partnerships, S-Corps, and LLCs file perfect Form 7004 extensions, saving clients millions in penalties and interest. His practice offers turnkey federal and state extension management for 2025.