What Is Form 7004 for Estates?
When a person passes away, their assets (everything they owned or had rights to including cash, investments, real estate, life insurance, etc.), belong to an entity known as an estate. If those assets earn any type of income, it belongs to the estate and must be taxed.
When an estate receives more than $600 of gross income in a year. This is reported on Form 1041. The estate might also need to make quarterly estimated tax payments if it expects to owe tax.
Estates can request extra time for filing Form 1041 by submitting estate Form 7004. This estate income tax return extension provides an automatic 5 ½ month extension for executors (Indvidual or entity assigned with the role of distributing the estate) to file Form 1041.
Deadlines & Penalties for Estates Filing for a 7004 Extension
The estate income tax return extension due date depends on whether they use calendar or fiscal year.
| Type of Year Used by the Estate (for tax reporting purposes) | Original Form 1041 Deadline | Deadline After Filing Form 7004 Extension for Estates |
|---|---|---|
| Calendar Year Estates | April 15 | September 30 |
| Fiscal Year Estates | 15th day of the fourth month after year end | 5 ½ months |
Late-filing penalties for Estates
If you don’t owe any tax and you file Form 1041 for estate income tax after the deadline, you will have to pay a 5%, up to 25%, of the tax due. If no tax is due, the failure-to-file penalty is zero. For returns that are more than 60 days late, a minimum penalty applies, the smaller of 510 dollars or the tax due.
If the late filing is fraudulent or you intentionally choose not to file, the penalty is 15% per month, up to 75%. You can cite reasonable cause to reduce penalties for late estate 1041, but documentation is essential.
Note: If you owe tax and don’t pay it by the original due date, the IRS charges interest from that date until it’s paid, even if you applied for a filing extension.
Executor Checklist Before Filing Form 7004
Before submitting estate form 7004, executors should keep the following list in mind.
- Estates need their own EIN. Get an EIN by applying online or via Form SS4.
- Choose either a calendar or fiscal year after adopting a tax year.
- Pay any estimated estate income tax due via EFTPS/EFW when e-filing the extension.
- Include Form 1041-V if you are mailing a check with the Form 1041 return.
Line-by-Line Guide to Filing Form 7004 For Estates
- Estate Details: Enter the name of the estate, EIN, and address.
- Part I- Line 1: Use Code 03 or 04 to indicate to the IRS that you are filing for Form 1041 (bankruptcy estate only) or Form 1041 (estate other than a bankruptcy estate).
- Part II- Lines 2-4: Skip this part.
- Part III- Line 5a & 5b: Mention the year you are filing for (calendar year or fiscal year)
- Part III- Lines 6, 7, & 8: These lines report the estimated tax owed, aggregated total payments, and the balance due for the year.
Estate Income Tax Payment Options
Filing Form 7004 doesn’t delay estate income tax payment. You still need to pay your tentative tax by April 15 for calendar year estates or 15th day of the fourth moth for fiscal year estates via:
- EFTPS (Electronic Federal Tax Payment System): Enroll on EFTPS and pay or schedule a payment.
- EFW (Electronic Funds Withdrawal): Authorize a direct debit during the e‑filing process.
- Direct Pay: Pay directly from your bank account without enrollment.
- Cash: Pay at IRS-approved retail partners or IRS offices.
- Check or money order: Mail check with Form 7004 to the “United States Treasury”.
- Digital wallet/Credit card*: Pay via an IRS approved third-party payment processor.
State Filing Rules for Estate Filing Extensions
There are 12 states plus D.C. that currently levy an estate income tax. Each state has their own rules for reporting estate income. Most of the 12 states honor the federal 5½ month extension automatically. However, there are a few states that require their own estate income tax return extension.
| State | State Extension Form for Estates | Months Extended |
|---|---|---|
| District of Columbia (DC) | D-77 | 6-month extension |
| Connecticut | CT-706/709 EXT | 9-month extension + 6-month to pay |
| Hawaii | M-68 | 6-month extension |
| Illinois | 700-EXT | 6-month extension |
| Maryland | MET-1E | Up to 6 months; 1 year if filer is out of the country |
| Massachusetts | M-4768 | Automatic 6-month extension if 80% of tax is paid by the deadline |
| New York | ET-133 | Up to 6 months (can also request extra time to pay) |
| Oregon | OR-706-EXT | Automatic 6-month extension |
| Rhode Island | RI-4768 | 6-month extension |
| Vermont | EST-195 | Automatic 6-month extension |
| Washington | REV 85-0048 | 6-month extension |
How to E-File Form 7004 with EZExtension
Learn how to file an estate income tax extension online in 3 simple steps with EZExtension.
Section 1
In the first section, enter the details of the estate including name, EIN, address, and select the Code 04 in Line 1 (or let EZExtension auto-selects the correct form code).
Section 2
Use the in-built AI scan to check the tax form code and EIN. Also, estimate and pay any tentative tax.
Section 3
Review your entries, submit them to the IRS with EZExtension, and get a downloadable PDF receipt.
Why EZExtension
By using EZExtension, you can get an automatic 5 ½ month extension for estate income tax filing.
- Quick 3-minute filing process: Simple guided 3 step filing process.
- Tele-File + Online Filing: Offers both tele-file and online 7004 filing.
- Real-time status updates: Get a confirmation via email when you e-File with us.
- Smart AI-powered error detection: AI-assisted error detection before you submit the form.
- Industry-best pricing at $9.99: Best in industry pricing for automatic 5 ½-month extension.
- Secure SOC 2-compliant data handling: Your data is safe with bank-grade encryption and transmitted securely to the IRS.
- Integrated payment options: Securely pay balance due via our integrated payment system.
FAQs
1. How long is an estate income tax extension?
An estate income tax extension gives you 5 ½ month extension.
2. Does Form 7004 cover Form 706?
No, Form 7004 covers only extension for estate income tax return, Form 1041. Form 706 is for estate tax and requires Form 4768 to file an extension.
3. Can I choose a fiscal year for the estate?
Yes, you can choose fiscal year for the estate.
4. Does the extension delay tax payment?
No, filing an extension for estate income tax return filing does NOT delay tax payments. You’d still need to pay taxes on time.
5. What if I miss the 7004 deadline?
If you miss Form 7004 deadline for both calendar estate (April 15) and fiscal estate (15th day of the fourth month), you will have to pay late-filing penalties of 5% per month up to 25% of the tax due.
6. Will states accept my federal extension?
Some states grant extensions automatically if payment criteria are met (e.g., Massachusetts). While other states require a separate state form (e.g., New York). Always check state rule for confirmation.
Don’t rush your estate income tax return.
File Form 7004 and get an automatic 51/2 extension with EZExtension.