Deadlines and penalties
Business tax extension: Form 7004 vs Form 4868, form codes and the pay-by date
Businesses extend Forms 1065, 1120-S, 1120 and 1041 with IRS Form 7004. Individuals, including sole proprietors filing Form 1040, use Form 4868. See the extension lengths, the Part I form codes, the 90% payment rule and the penalties if you miss.
Prepared by Aldro Accounting · Updated · Sources checked
The quick answer
Form 7004 is the IRS application for an automatic extension of time to file certain business income tax, information and other returns, including Forms 1065, 1120-S, 1120 and 1041. It generally gives 6 months and must be filed by the return's regular due date. Form 4868 is the separate extension for individual returns (Forms 1040, 1040-SR, 1040-NR and 1040-SS). Neither one extends the time to pay.
Form 7004 or Form 4868: which extension you need
Form 7004 covers business income tax, information and other returns. The IRS grants the extension if the form is completed properly, the tax is properly estimated where that applies, it is filed by the due date of the return being extended, and any tax due is paid.
Form 4868 is for individuals. It gives 6 more months to file Form 1040, 1040-SR, 1040-NR or 1040-SS, or 4 more months for a U.S. citizen or resident who is out of the country. A sole proprietor or one-member LLC owner whose business is on Schedule C is filing Form 1040, so the extension for that return is Form 4868, not Form 7004.
Scroll sideways to see all columns.
| Form 7004 | Form 4868 | |
|---|---|---|
| Returns it extends | Business income tax, information and other returns, such as 1065, 1120-S, 1120 and 1041 | Forms 1040, 1040-SR, 1040-NR and 1040-SS |
| Length | Generally 6 months. 5 1/2 months for estates (not bankruptcy estates) and trusts on Form 1041 | 6 months, or 4 more months if out of the country |
| File by | The due date of the return being extended | The due date of the return: April 15, 2026 for most 2025 calendar-year filers |
| Extended due date | Depends on the return | October 15, 2026 for most calendar-year filers |
| Extends time to pay? | No | No |
Each Form 7004 applies only to the specific return identified on its Part I, line 1. It doesn't extend any other return, so an owner who needs more time for their own Form 1040 uses Form 4868.
Form 7004 Part I: the form code for your return
Form 7004 extends one return at a time. Part I, line 1 takes a 2-digit code for the return being extended. The IRS doesn't allow blanket requests: file a separate Form 7004 for each return. The one exception is a consolidated group, where only the common parent or agent can request an extension for the group's consolidated return.
Form 7004 can't be used for Form 1041-A. That return uses Form 8868.
How long a Form 7004 extension lasts
The automatic extension period is generally 6 months. Estates (other than bankruptcy estates) and trusts filing Form 1041 get 5 1/2 months. C corporations with tax years ending June 30 and beginning before January 1, 2026 get 7 months (6 months for Form 1120-POL). For tax years beginning in 2026, their period is 6 months.
Certain foreign and domestic corporations and certain partnerships get an automatic extension to file and pay under Regulations section 1.6081-5 without filing Form 7004. They file and pay by the 15th day of the 6th month after the tax year closes. Checking line 4 of Form 7004 then asks for 3 more months for partnerships and S corporations, or 4 more for C corporations and Form 1120-POL filers.
The IRS can end an automatic extension at any time by mailing a notice of termination at least 10 days before the termination date.
How to file Form 7004
Form 7004 can be filed electronically for most returns, but not for Forms 8612, 8613, 8725, 8831, 8876 or 706-GS(D). For tax year 2025, Forms 708, 8924 and 8928 need a paper Form 7004, with e-filing starting in tax year 2026. A paper Form 7004 goes to the IRS address listed for the return in the instructions.
No signature is required. The IRS no longer sends an approval notice and only writes if the request is disallowed. If the name on the form doesn't match IRS records or the EIN or SSN is wrong, the extension isn't valid.
Part II asks for the tentative total tax the entity expects to owe (enter zero if none), total payments and refundable credits, and the balance due. The IRS cautions that a paper Form 7004 filed with an electronic return can let the return be processed before the extension is granted, which may bring a penalty notice.
An extension to file is not an extension to pay
Form 7004 doesn't extend the time to pay. Any balance on line 8 is generally due by the return's original due date. Most entities must pay federal tax deposits, including corporate income tax, by electronic funds transfer, generally through EFTPS. Interest runs on tax not paid by the regular due date, even with an extension.
Corporations get a cushion. A corporation with an extension isn't charged the late payment penalty if the tax paid by the regular due date is at least 90% of the tax on its return and the rest is paid by the extended due date.
Individuals have a similar rule on Form 4868. They have reasonable cause for the extension period if at least 90% of the total tax is paid by the regular due date and the balance is paid with the return. An individual can also skip Form 4868 by paying part or all of the estimated tax electronically and marking it as an extension payment. If the IRS later finds the estimate on Form 4868 wasn't reasonable, the extension is null and void.
What missing the deadline costs
For Forms 1040 and 1120, the failure-to-file penalty is 5% of the unpaid tax for each month or part of a month late, up to 25%. If both the failure-to-file and failure-to-pay penalties apply in a month, the failure-to-file penalty is reduced by the 0.5% failure-to-pay amount. For returns due after December 31, 2025, a return more than 60 days late has a minimum penalty of $525 or 100% of the underpayment, whichever is less. For returns required to be filed in 2027, Rev. Proc. 2025-32 raises that minimum to $535.
Partnerships and S corporations pay per owner. For partnership returns due after December 31, 2025, the base penalty is $255 for each partner, for each month or part of a month, up to 12 months. For partnership and S corporation returns required to be filed in 2027, the amount is $260.
The late payment penalty is generally 0.5% of unpaid tax for each month or part of a month, up to 25%.
Aldro files the Form 7004 or Form 4868 extension with your business return, the state return and the owner's return when it's needed, all inside one flat yearly price that covers everything tax.
Worked example
Say a calendar-year C corporation expects $40,000 of total tax for 2025. It files Form 7004 with code 12 on line 1 by the return's regular due date, enters $40,000 as tentative total tax, and pays $36,000 by that date. $36,000 is 90% of $40,000, so if it pays the remaining $4,000 by the extended due date, it isn't charged the late payment penalty, though interest still runs on the $4,000 from the regular due date. Compare a two-shareholder S corporation that files no Form 7004 and files its 2025 Form 1120-S three months late: $255 x 2 shareholders x 3 months = $1,530, even with no tax due.
Common questions
What is Form 7004?
The IRS Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Returns. Partnerships, S corporations, C corporations, estates and trusts use it, filing one per return by that return's due date.
How long is a business tax extension?
Generally 6 months. Estates (other than bankruptcy estates) and trusts get 5 1/2 months, and June 30 year-end C corporations with tax years beginning before 2026 get 7 months.
Does Form 7004 give more time to pay?
No. Form 7004 doesn't extend the time to pay. Tax is generally due by the original due date, and interest runs from then even with an extension.
Which extension does a sole proprietor or single-member LLC file?
Form 4868, because the business is reported on the owner's Form 1040. Form 4868 covers Forms 1040, 1040-SR, 1040-NR and 1040-SS and gives 6 more months, to October 15, 2026 for most 2025 calendar-year filers.
Can one Form 7004 extend several returns?
No. The IRS doesn't allow blanket requests, so each return needs its own Form 7004. Only a consolidated group's common parent or agent can extend the group's consolidated return on one form.
Will the IRS confirm my Form 7004?
No approval notice is sent anymore. The IRS writes only if the request is disallowed.
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Sources
- IRS: Instructions for Form 7004 · checked October 31, 2026
- IRS: Form 7004 · checked October 31, 2026
- IRS: Form 4868 · checked October 31, 2026
- IRS: Failure to file penalty · checked October 31, 2026
- IRS: Internal Revenue Bulletin 2025-45 (Rev. Proc. 2025-32) · checked October 31, 2026
This guide explains general rules from the sources listed. It isn’t tax advice for your situation.