| nternal revenue service has recently been taking steps | | | | file it by the date the tax return filing is due. You are |
| to cut down on clutter and streamline the tax filing | | | | then automatically given a six month extension to file |
| process. Now they’ve simplified business tax | | | | the return. Importantly, the extension is only for the filing |
| return extensions. | | | | of the return, not the payment of any tax due. If you |
| Automatic Extension Requests For Businesses | | | | owe tax, you still have to the amount due by the |
| In past years, some businesses had to go through a lot | | | | original filing period. Failure to do so will lead to penalties |
| of paperwork to file request for extensions to file | | | | and interest being applied to the amount you owe |
| annual business tax returns. This included filing partial | | | | when you finally get around to taking care of the tax |
| extension forms such as forms 8800, 8736, 7004 and | | | | returns. |
| 2758. I get a headache just thinking about it. | | | | End of the World? |
| Apparently, IRS agents got one as well and have | | | | One is tempted to predict the end of the world coming |
| decided to do something about. | | | | soon. I don’t know about hell freezing over, but |
| The internal revenue service has announced it is doing | | | | the actions taking by the IRS in the last calendar year |
| away with all the different forms for filing requests for | | | | are the stuff of myth. First, the IRS went to bat for the |
| an extension to file business tax returns. Now, all | | | | victims of Hurricane Katrina, even issuing detailed |
| businesses can use one form to get an automatic six | | | | instructions on how to claim their losses on past tax |
| month extension. Form 7004 is the document you will | | | | returns to get refunds to help them out. Second, the |
| need. It is entitled Application for Automatic 6 Month | | | | IRS actually raised the mileage allowance in the middle |
| Extension to File Certain Business Income Tax, | | | | of the year to give business travelers a larger |
| Information and Other Returns. Okay, so the IRS | | | | deduction because the IRS felt gas prices were to |
| hasn’t figured out short titles. This is still a | | | | high. Now, the IRS is eliminating unnecessary and |
| positive step in reducing the morass of forms typically | | | | frustrating procedures to make tax filings simpler. The |
| required to get extensions. | | | | end must be near. |
| To use Form 7004 for your 2005 tax filings, you must | | | | |