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Wednesday, April 10, 2013

Time to File Extensions

The end of the filing season is almost here (Hooray!), which means it's "Extension Time."

Form 4868, Application for Extension of Time to File, must be filed by midnight on the normal due date of the return - in the case of a 1040 return, April 15. For any extension rejected by the IRS, you have a five-day grace period to correct and retransmit the extension. We recommend that you e-file extensions as early as possible before the deadline to ensure timely filing. Remember that an extension of time to file does not extend the time to pay tax due.

To e-file for an extension in Drake, take the following steps:
  1. Open the return and enter demographic information on screen 1.
  2. Open the EXT screen (available from the Other Forms tab) and from the drop list for the 4868 box, select X to produce Form 4868.  Enter all applicable information, including the amount being paid with the extension. If paying the entire amount owed with the extension, mark the Taxpayer is paying the entire amount of tax due.  Use available override fields as necessary. Close the EXT screen.
  3. Open the EF screen (from the General tab) and, in the Federal E-file Override section, mark the 4868 box. In State E-file Override, select Do NOT send any states (unless you intend to send a state extension, then select it from the drop list.). Close the EF screen.
  4. View the return to confirm that Form 4868 will be transmitted (EFSTATUS page) and to clear any errors on the ETD_MSG page. (If no errors are present, the ETD_MSG is not generated.)  Exit the return.
  5. From the Home window of Drake, go to EF > Select Returns for EF to open the EF Return Selector Screen.  Confirm that the 4868 alone is listed for the return in the EF Documents column.  If so, proceed through the usual steps to select and transmit.
For more details on extensions, deadlines, grace periods, and arranging payment, view the Drake Knowledge Base article 14533: "1040 - How to E-File an Individual Extension" and article 14633: "1040 Deadline and Grace Period - Perfecting a Rejected Timely Filing." To access the Knowledge Base, log in to Drake Support, go to Resources > Knowledge Bases, and search for the above article numbers.
Other resources include Screen Help on the EXT screen, and Chapter 5, "Return Preparation," of the 2012 Drake Software User's Manual.