I am trying to e-file Form 7004 for Form 1041 without an expected balance due and I get the error message that without a balance due the Form 7004 must be paper filed. Why is this? I have e-filed it many times before with no balance due without difficulty. I can't find anything from the IRS stating that Form 7004 can't be e-filed without a balance due but could have missed it, and the instructions for the Form list no such requirement. Paper filing the extension incurs the additional cost of certified mail that I would like to avoid.
I am actually considering doing just that, however, the instructions for Form 7004 state: "The extension will be granted if you complete Form 7004 properly, make a proper estimate of the tax (if applicable), file Form 7004 by the due date of the return for which the extension is requested, and pay any tax that is due." (Emphasis added). The instructions do say later "A trust (Form 1041) or REMIC (Form 1066) will be granted an extension even if it cannot pay the full amount shown on line 8." Does this apply to an estate? Would not paying the $1 actually invalidate the extension if there is an estate instead of a trust? Who knows. Is it worth the risk in the event tax does end up being due?
A much better solution which avoids all the uncertainty, the trouble of paying the $1, or certified mail costs to paper file is for ProSeries to update their software to remove the requirement of the balance due being more than $0 in order to efile the 7004 when there appears to be no IRS requirement supporting it. Requiring a non-zero balance is a recent change to their software.
Just this one time, why not send that Form 7004 by paper and hope that the program will have solved the issue by the time the next Form 7004 for Form 1041 is due? May I assume this is a fiscal year filing and is an estate rather than a trust?
@poolcleaner👍you obviously did not read his post ...He said he wants to avoid the additional cost of certified mail... you know that astronomical fee of about seven or eight dollars...😉👍
Did you ever get an answer to your question?! I just encountered this change too, and am also considering listing $1 tax just to get it done.
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