Extension reject - how to fix

[BulldogTom]

This Corp was established last year.   LLC filing as a C Corp.   Got a letter from the IRS about 2 months ago that the return electronically filed last year could not be processed because the 8832 was not included with initial return.   Had the client re-submit the 8832.   Trying to file the 7004 for 2022 and I get this error that I think is related to the 8832 not being processed yet by the service.

F7004-904-01Federal Extension Form 7004, the tax year ending date ('TaxPeriodEndDt' specified in the Return Header) must match the data in the e-file database unless one of the checkboxes in Line 5b - "Initial Return", "Final Return" or "Consolidated return to be filed" is checked.

Is there some way to fix this?   Client needs to make a 10K estimate payment.   Can I have them mail in the 7004 with a check and hope it all works out by the time I file the return?

Thanks

Tom
Longview, TX

[Abby Normal]

The error says the tax period is wrong. Did you mark short year initial return? What dates did you enter?

I'm guessing you did not check one of the boxes for initial return?

[BulldogTom]

It is not an initial return, we e-filed last year, which was the first year.  The 7004 says it is for tax year 2022.   I have reviewed everything on the form and I can't see anything I have done wrong.   That is why I am thinking it relates to the 8832 issue from 2021, like they are not recognizing the LLC as a corp in the IRS computers.

Tom
Longview, TX

[Catherine]

Mail in the 7004 with a check. There could be any one of a number of errors floating around in the computers at the IRS, some of which may go away when they finally process other information sent to them. But it won't be done today or tomorrow.

[GLGACCT]

Had the error in January for a 1041.  See below, also, there is some information from the knowledgebase.  Ended up mailing the 7004.  Have not efiled the initial return yet.  

On 1/12/2023 at 3:33 PM, GLGACCT said:

Lawyer elected a calendar year on the SS-4 for a Decedent's Estate 1041 rather than a fiscal year.  Knowledgebase has the following info:

e-file Rejection: F7004-904-01 - "Form 7004, the tax year ending date ("TaxPeriodEndDate" specified in..." in an 1120, 1120S or 1041 return.

Full Rejection Text

"Form 7004, the tax year ending date ("TaxPeriodEndDate" specified in the "ReturnHeader") must match the data in the e-file database unless one of the checkboxes in Line 5b - "Initial Return", "Final Return" or "Consolidated return to be filed" is checked."

Resolution

This can occur when your client is filing as a calendar-year filer, but the IRS has their Employer Identification Number (EIN) on-file as a fiscal year filer, or vice versa.

Check your input to confirm that the fiscal year end date is correct. If it is, contact the IRS at 1-866-860-4259. Confirm the fiscal year date they have on record matches what you have on file.

The fiscal year is correct for the decedent, the SS-4 incorrectly shows a calendar year.  Should line 5b Initial return be checked as that is for a short year in order to e-file the extension and if so will any other complications arise when the return is finally submitted or is there another way to correct this issue?