[jm962011]

Not sure why I am struggling with this…

But,

Q1. let’s say you’re filing a Fed 1065 (partnership return due 4/15 WITH NO TAX DUE!) but are going to extend it via Form 7004. Why is it called an AUTOMATIC extension and you still have to efile or mail the Form 7004 in?

Q2. let’s say that the same pship above is filing in CA and MA and they OWE NOTHING! CA and MA give “6-month automatic” extensions and we do NOT have to efile or mail in the state’s respective extension page. Then why is the tax manager asking me if CA and MA “accept the federal?”

why does it matter if CA and MA accept the federal or not, CA and MA give you an automatic extension.

[Andyred04]

Q1: it is termed an “automatic extension” because you do not need to apply for the extension. Simply filing the form automatically grants you the extension.

Q2: Some states do not accept the federal 7004 automatic extension form and you would, therefore, be required to file the state's extension form. If the 7004 is accepted by the state, no further forms are required to be filed.

FAR: 80 (Gleim, Ninja Notes, Ninja MCQs)
REG: 87 (Gleim, Ninja Notes, Ninja MCQs)
BEC: 87 (Gleim, Ninja Notes, Ninja MCQs)
AUD: 8/27/16

PA Candidate

[Author]

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