How do I e-file a Federal 1120/1120S extension?
What is the deadline for filing a 7004?
Extensions must be filed by midnight local time on the normal due date of the return. In the case of an 1120, this is the 15th day of the 4th month after the end of the tax year of the return (for 2017 calendar year returns, the filing deadline is April 17, 2018, a Tuesday). In the case of an 1120S, this is the 15th day of the 3rd month after the end of the tax year of the return (for 2017 calendar year returns, the filing deadline is March 15, 2018, a Thursday).
How long is the extension?
For both 1120 and 1120S returns, the extension is for 6 months. If a calendar year return, an 1120 on a timely filed extension is due on October 15th (Monday, October 15, 2018 for TY 2017). If a calendar year return, an 1120S on a timely filed extension is due on September 15th (Monday, September 17, 2018 for TY 2017).
How to produce a 7004:
- Ensure that screen 1 information is complete.
- Go into the Other Forms tab (the second one in the 1120) and open the 7004 screen. Select the option Generate an extension (Alternatively, select the PRNT screen option Prepare a Form 7004 based on screen 1 data)
- The Amount paid with extension field - an amount entered here carries only to the return and the result letter.
- Tentative total tax and total payments and credits carry to the 7004 from the return if that data is available. If that data does not carry, or if you want to override the amounts on lines 6 or 7 of the 7004, use the overrides for those lines. Amounts must appear on those lines for a balance due to be present on the 7004, which is necessary if you intend to make a payment with the extension.
- You do not need to complete the PIN screen if there is no payment with the extension*. However, if the PIN screen is present, or partially completed, it must be completely filled out. Check this if a PIN-related error is produced.
Making a payment with the extension:
- The Direct debit option is available for 1120 (including 1120-C and 1120-H) and 1120S.
- On the PMT screen, choose Yes for federal, enter the banking information and select the 7004 option. This will create a PAYMENT worksheet in view.
- The PIN screen must be completed.
E-filing the 7004:
- On the EF Selections screen be sure to select the option Federal 7004 only.
- Clear any ETD messages.
- If you transmit a timely 7004 and receive an IRS reject, you have 5 days to resend and still be considered "timely filed". See KB article "E-Filing Deadlines for Corporate Returns and Extensions" (see Related Links at the bottom of this screen).
- The cutoff time for timely filing of the extensions is midnight local time on the due date of the return. However, we suggest that you send it a few hours before to ensure a timely filing.
- Drake forwards extensions to IRS as soon as they are received.
- An extension of time to file DOES NOT extend the time to pay taxes due.
- Some state extensions can be e-filed with the federal extension. See KB article "State Business Return Extensions that can be E-filed" in Related Links.
Note: If efiling a state extension, the PIN screen may need to be completed to allow State extension efiling (where supported) even if the PIN screen is not required for the federal extension.
Ready to File the Regular Return
There is no need to delete the 7004 screen when you are ready to file the regular return. If you have filed a 7004 for an 1120 or 1120S return and now want to send the live return, complete the following steps:
- Complete the return. If you paper-filed the extension, return to the 7004 screen and select the option Extension was previously filed; regular return now ready for filing.
- If a payment was made with the extension, enter the payment in the Amount paid with extension field on the 7004 screen.
- On the EF Selections screen select the 1120 or 1120S to e-file instead of the 7004.
- Check the view mode for any red message pages regarding the return.
- Select the return for EF and transmit.