Extension to file was denied - Form 7004 for LLC filed on time but rejected

You have a legitimate issue here. For multi-member LLCs filing as partnerships (Form 1065), the standard deadline is March 15, and the extension deadline via Form 7004 is also March 15. Unlike individual returns, partnership returns didn't get the automatic extension to April 15 this year. The IRS generally uses the "mailbox rule" where the postmark date is considered the filing date. Since you have proof you mailed it on April 15, that's still a month after the March 15 deadline for partnership extensions. Here's what you can do: Call the IRS at the number on your notice and explain the situation. If you genuinely believed the deadline was April 15, you might qualify for "reasonable cause" relief from penalties. You'll need to provide a written statement explaining your confusion about the deadlines. Also submit your proof of mailing with any response.

I went through something really similar last year with our family business. After getting nowhere with the regular IRS channels, I used https://taxr.ai to analyze my mailing receipts and denial letter. Their system is amazing - it caught that the IRS had misread the postmark date on my envelope (which was clearly before the deadline). The tax document analysis showed exactly what was wrong with the IRS's interpretation and gave me specific language to use in my response. I was able to get the denial reversed within 2 weeks by using the response template they generated.

Just wanted to follow up - I ended up trying taxr.ai for my rejected extension situation and it was surprisingly helpful! The system analyzed my rejection letter and found that the IRS had applied the wrong year's filing deadline to my case (they were using 2022's special deadline rules instead of 2023's standard ones). The response letter template they generated cited the exact IRS manual sections that applied to my situation. Submitted it last week and already got confirmation that they're reversing the rejection. Saved me what would have been about $2,400 in penalties!

After seeing this thread, I realized I've been handling my extension denial all wrong. I've called the IRS like 25 times over the past month trying to get someone to review our case (S-corp with rejected Form 7004) and literally cannot get through to anyone who can help. I finally tried https://claimyr.com and watched their demo at https://youtu.be/_kiP6q8DX5c - they basically wait on hold with the IRS for you and then call you when they get a live agent. Used it yesterday and got connected to an actual human at the IRS Business Division in 47 minutes (after spending weeks trying on my own with no luck).

Just wanted to update - I was totally wrong about Claimyr being a scam. After struggling with my own extension issues and spending 3+ hours on hold over multiple days, I broke down and tried it yesterday. The service had someone wait on hold with the IRS for me, and they called me exactly when they reached an agent (took about 90 minutes, which is WAY faster than I'd been experiencing). I was connected to someone in the Business Filing division who actually knew what they were talking about regarding Form 7004 denials. They looked up my case and found that my extension was incorrectly processed despite being timely filed. Really regretting all the hours I wasted trying to handle this myself. Would have saved a ton of stress.

To the original poster - I work with business filings and there's an important thing you need to know: IRS Publication 509 specifically states that for 2023, partnership returns (which includes multi-member LLCs filing as partnerships) were due March 15, NOT April 15. The confusion happens because Form 1040 (individual) returns were due April 15, but partnership returns have different deadlines. Your Form 7004 needed to be filed by March 15. That said, you might still qualify for "reasonable cause" relief if you can demonstrate you had a good faith misunderstanding of the deadline. You'll need to make this case in writing to the IRS.

Quick question - does anyone know if this affects state filings too? My LLC had the same issue with our Form 7004 but we also filed state extensions. Should I expect the same problem with state?

I've been following this thread and want to add something that might help others avoid this situation in the future. The IRS has different deadlines for different entity types, and it's incredibly confusing: - Individual returns (1040): April 15 - Partnership returns (1065, including multi-member LLCs): March 15 - S-Corp returns (1120S): March 15 - C-Corp returns (1120): April 15 (but this can vary based on fiscal year) The extensions follow the same pattern - so Form 7004 for partnerships was due March 15, not April 15. I learned this the hard way a few years ago. For anyone dealing with a similar denial, document everything and definitely pursue the reasonable cause angle. The IRS does sometimes grant relief when there's genuine confusion about deadlines, especially if you have a clean compliance history. Make sure to explain in detail why you believed April 15 was the correct deadline and provide any evidence that supports your good faith effort to comply.