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 – 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 the return.

2. Enter demographic information on screen 1, at least the name, address, city, state, zip and EIN.

3. On the 7004 screen:

   • Select the option Generate an extension (Alternatively, select the PRNT screen option Prepare Form 7004 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.

4. 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 in View/Print mode.

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

5. 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.

6. Open the EF Selections screen:

   • Under Federal E-file Override, select the Federal 7004 only check box.

   • 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.

7. View the return and clear any ETD_MSG page errors.

   • Only those messages on the ETD_MSG page must be cleared to transmit the extension by itself. These messages are related to the extension not the actual return, and must be cleared before it can be transmitted.

   • Any regular MESSAGES page refers to the return itself and may be produced because the return is not finished. These will not prevent the extension from being eligible for e-filing.

8. View the 1120S EF page and confirm that the 7004 will be transmitted.

9. e-File the extension form using the EF menu.

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. 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. On the EF Selections screen select the 1120-S to e-file instead of the 7004.

5. Check the View/Print mode for any red message pages regarding the return.

6. Select the return for e-file and transmit.