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The IRS or Internal Revenue Service has made getting a tax extension very easy and simple for businesses with IRS Form 7004. This form is specifically for businesses which want to get some additional time for filing the tax return later, but make the payment for the return before the time expires. The tax extension request can be filed electronically on your own or through a service provider. While both the options are equally preferred, getting in touch with a service provider is considered more convenient and easier. However, in order to ensure that the entire process is carried out in a hassle free manner, it is crucial that an authentic service provider is selected. Mentioned below are some other benefits that business owners can avail by choosing a reliable and renowned service provider for filing form 7004.
Calculate the tax amount easily
Before filing a tax extension, it is important that the amount to be paid is calculated accurately. Doing it manually or without proper knowledge of the calculation process can take a lot of time and there is also the risk of inaccurate calculation involved. Service providers offer special tools and calculators to make this process easier and risk free. They can avoid any discrepancies while calculating the tax amount and assure that the amount paid is right.
Know the rules
Although a lot of information regarding Form 7004 is available online these days, the process involved in filing the tax extension can prove quite complicated, especially for those who are doing it for the first time. Not adhering to the rules established by the IRS can lead to penalties or late fee, which can be avoided by selecting an experienced expert who is aware of all the rules and regulations involved. Having knowledge about these rules can also help in making sure that all the guidelines are being met.
Ensure correct information
While filing the tax extension request, business owners are required to calculate and fill in correct information. If the details provided are inaccurate or not up to date, then it can lead to rejection of the request and in some cases attract more severe action from the IRS. A knowledgeable service provider knows such risks involved and can help to avoid these by ensuring that the details filled in the tax extension request form are accurate and correct.
Not paying the tax by the due date can lead to late fees. Taxpayers might also be required to pay penalty or interest in case the tax amount is not calculated accurately. Considering all these matters is especially difficult for business owners who are unable to devote enough time to ensure that the entire process is carried out on time. This is where an authentic service provider can prove helpful by avoiding any penalties or late fee.
Although the process of calculating and filing the tax extension is very simple and easy, there are plenty of reasons which can lead to the rejection of the application. Sharing inaccurate information and not filing for tax extension before the due date are the prime reasons which can lead to rejection by the IRS. Taking care of all such matters can prove complex and time consuming, which can be efficiently taken care of by an experienced service provider.
Filing the Form 7004 (www.irs.gov/Tax-Professionals/e-File-Providers-&-Partners/e-filing-Form-7004-Application-for-Automatic-Extension-to-File-Certain-Business-Income-Tax-Information-and-Other-Returns) can help business owners to get additional time if they are unable to prepare and file their tax return by the due date. However, the key is to select an authentic and reputable service provider to make the process easier.
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