How to e-File a Request for a 6-Month Extension for an Individual Federal Return

Extensions are generated using screen EXT, located on the Other Forms tab of the Data Entry Menu. An extension does not extend the time to pay tax due. We recommend that you e-file as early as possible before the deadline to ensure a timely filing.

Preparing an Extension

To prepare to e-file the extension:

1. Open the return.

2. Enter demographic information on screen 1.

3. Navigate to screen EXT.

4. From the 4868 drop list, select X to produce Form 4868.

5. Make one of the following entries, or the “Amount you’re paying” on Form 4868 will be blank.

   • Select the option Taxpayer is paying the entire amount of tax due.

   • Enter the amount to be paid in the field Amount paid with extension.

6. Enter the financial data required by Form 4868, which you can do either on the EXT screen or in data entry in the return. Override fields on screen 4868 pull data entered elsewhere in the return if no override amount is entered.

7. Open the EF screen.

8. Under the Federal e-File Override section, select 4868.

9. Under the State e-File Override section, select Do NOT send any states (if you do not intend to send a state extension). To send a state or city extension in addition to a federal extension, select the appropriate option from one of the drop lists.

Arranging a Payment

Direct Debit

1. Open the PMT screen, accessible from the General tab of the Data Entry Menu.

2. From the Federal selection drop list, select Y to indicate that the taxpayer’s account information is to be used for the federal extension; make a selection from the State/city selection drop list if you wish to use the same account information for applicable state or city extensions.

   Note  If the taxpayer wants to use a different account for state or city extension purposes, steps 3 and 4 (following) must be repeated for the state or city in the appropriate Account #2 or Account #3 section on the lower-half of screen PMT.

3. Enter the name of the taxpayer’s financial institution from which the extension amount is to be direct debited. The RTN, Account number, and Type of account must be entered twice for verification purposes.

4. Enter a Requested payment date.

   • If the return is transmitted to the IRS on or before the extension due date in the current processing year, the Requested payment date must be on or before the due date and cannot be more than five days prior to the current date.

   • If the return is transmitted to the IRS after the extension due date, the Requested payment date cannot be later than the current date and cannot be more than five days prior to the current date.

5. Open screen PIN, and complete the following items:

   • Enter the current date for the PIN signature date.

   • Enter the appropriate ERO PIN.

   • Have the taxpayer (and spouse, if applicable) agree to the automatically generated PIN signature. If the taxpayer wishes to use his or her own PIN, have him or her enter it, and mark the Taxpayer entered check box.

   • Select the 4868 with payment option.

   • Agree to the Direct Debit Consent.

Credit Card

1. Click the Pay balance due with credit card link at the top of screen 4868 to open screen IFP.

2. Select Form 4868 as the payment type.

3. Recalculate the return (Ctrl+C), and press Authorize Card.

4. Follow the Drake Software E-Payment Center prompts.

Check or Money Order

Choose one of the following methods:

• Print Form 4868, and cut following the upper dotted line. This indicates that the Form 4868 was already e-filed and accepted and that you are only submitting the voucher with the payment by mail.

• Generate a voucher by selecting the option Produce 1040-V for extension on screen EXT. The voucher shows the amount paid that is displayed on Form 4868 unless you enter a different amount in the associated override field.

Filing the Extension

1. Recalculate.

2. View the return and clear all EF Messages on the ETD_MSG page.

3. View the EF Status page, and confirm that Form 4868 will be transmitted.

   Note  The EF Status page is produced only if Print EF status page is selected at Setup > Options > EF tab.

4. Exit the return.

5. Open the EF Selector (EF > Select Returns for EF).

6. Confirm only Form 4868 (unless a state extension is also being e-filed) is listed for the return in the EF Documents column of the EF Return Selector.

7. If so, select the return, and proceed through the usual steps to transmit.

Frequently Asked Questions