What is IRS regulation section 1.6081-5 where businesses don't have to file an extension?
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Certain foreign and domestic corporations and certain partnerships are entitled to an automatic extension of time to file and pay under Regulations section 1.6081-5. 

These entities do not need to file Form 7004 on the prescribed IRS deadline (15th day of the 3rd month) to get an automatic extension of time to file the return, they can file and pay any balance due by the 15th day of the 6th month following the close of the tax year. These includes:

• Partnerships and certain domestic corporations that keep their books and records outside the United States and Puerto Rico.
• A foreign corporation that has an office or place of business in the United States, or
• A domestic corporation whose primary income is from sources within the territories of the United States.

In case the entity is unable to file its return on or before the 15th day of the 6th month following the close of the tax year, then they can check the box (business a corporation or partnership that qualifies under Regulations section 1.6081-5) on line 4 to request an additional extension of time to file. The additional extension period will be three months for partnerships and S corporations, whereas four months for C corporations and filers of Form 1120-POL.