Form 7004 must be filed by midnight local time on the normal due date of the return. In the case of a 1120-S, this is by the 15th day of the 3rd month after the end of the tax year for the return. An accepted Form 7004 provides a 6-month extension of time to file the return. See Drake Tax Online - Return Due Dates and Deadlines for more information about the due date of Form 7004 and perfection period if the extension request is rejected.

Generate and File Form 7004

1. Open or create the return.

2. Complete the General Information tab and click Save and Continue. Minimum required entries include: name, address, city, state, zip and EIN.

3. On the Federal tab, click on Other Forms and select Form 7004 - Application for Automatic Extension.

   • Alternatively, search for 7004 and click Add form.

4. On the 7004 screen:

   • Select the option Generate an extension.

   • Enter an Amount paid with extension to have an amount carry to the return and the result letter.

   • Tentative total tax and total payments and credits carry to Form 7004, if that data is available on the return. If that data does not carry, or if you want to override the amounts on lines 6 or 7 of Form 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.

   • Click Save.

5. Complete the PMT screen (if needed).

   • Choose Yes for federal, enter the banking information and select the 7004 option. This will create a PAYMENT worksheet.

   • An extension of time to file DOES NOT extend the time to pay taxes due.

6. Complete the PIN screen (if needed).

   • Generally, you do not need to complete the PIN screen if there is no payment with the extension. If the PIN screen is present, or partially completed, it must be completely filled out. Note that all entries on the E screen must be present for the person who is marked as signs return.

   • If e-filing a state extension, the PIN screen may need to be completed to allow state extension e-filing (where supported), even if the PIN screen is not required for the federal extension.

7. Click Federal. Search for and open the EF - EF Selections screen:

   • Under Federal E-file Override, select the Federal 7004 only radio button.

   • Under State E-file Override, check Do NOT send any states if you do not wish to send a state return. If you are also e-filing a separate state extension, select the state EXT option from one of the drop lists.

   • Click Save.

8. Click the File tab on the left. Clear any EF Messages that apply to the extension.

9. Proceed through the e-File steps.

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-S return and now want to send the regular return, complete the following steps:

1. Complete the return.

2. Return to the 7004 screen and select the option Extension was previously filed; regular return now ready for filing.

3. If a payment was made with the extension, enter the payment in the Amount paid with extension field on the 7004 screen.

4. Click Save.

5. On the EF - EF Selections screen select the 1065 to e-file instead of the 7004.

6. e-File the regular return using the File menu.

Related Links

Drake Tax - 1120-S: Extension Form 7004

Drake Tax Online - Creating a Return

Drake Tax Online - e-Filing