When additional time is needed to complete a business return, you may be able to get an automatic extension of time to file. The IRS sets different automatic extension times for different types of returns.
Filing an extension only extends the time to submit the tax return to the IRS. It does not extend the time to pay any amount that may be due.
Whether or not an extension is filed, if payment of the balance due is not received by the filing deadline there may still be interest and penalties associated with late payment. To be considered timely paid, the IRS must receive the payment on or before the original due date of the return. If the extension application is being sent electronically with electronic payment information, we recommend sending it more than a day ahead of the due date to give the payment time to process.
If you plan to electronically file an extension, when completing it be sure to indicate both that you wish to e-file it and that it is ready to be e-filed, then actually transmit it at the business extension transmission table. An extension has not been transmitted to the IRS until you actually click the "Connect" button to send it.
Create or Edit Extension for Forms 1120, 1120-S, 1065, and 1041
To create an extension (Form 7004), from the Main Menu of the 1120, 1120-S, and 1065 returns select:
- Miscellaneous
- Application for Extension (Form 7004)
If it's Form 1041, from the Main Menu select Application For Extension.
In the Form 7004 - Automatic Extension Menu:
- Heading Information will be pulled from the tax return. Adjust it if needed.
- If needed, enter the amount of Tentative Total Tax and Total Payments and Credits.
- Complete the other lines as needed.
- Select Mark Extension Electronic. When queried for confirmation, select YES.
- Enter or edit information as needed.
- Select Form 7004 Electronic Payment if an amount is due and is being paid by direct debit. Enter the bank information.
- If the extension is complete and ready to be transmitted, select Ready to transmit to change it from NO to YES.
Before exiting the return, be sure to print Form 8878-A, IRS e-file Electronic Funds Withdrawal Authorization. This form must be signed by both the ERO and the taxpayer and retained by the ERO for three (3) years.
Create or Edit Extension (Form 990)
To create an extension (Form 8868), from the Quick Menu of the Business Tax Return (Form 990) select:
- Additional Forms and Schedules
- Form 8868 - Extension of Time to File
- Heading Information will be pulled from the tax return. Adjust if needed.
- If needed, enter the amount of Tentative Tax less Refundable Credits and Total Payments and Credits.
- Complete the other lines as needed.
- Select Mark Extension Electronic. When queried for confirmation, select YES.
- Enter or edit information as needed.
- Select Form 8868 Electronic Payment if an amount is due and is being paid by direct debit. Enter the bank information.
- From the Electronic Extension E-File Menu, click the black magnifying glass icon in the toolbar at the top of the screen to print Form 8879-EO. This form must be signed by both the ERO and the taxpayer and retained by the ERO for three years.
- If the extension is complete and ready to be transmitted, select Ready to transmit to change it from NO to YES.
Viewing Extension status
To check the status of an extension, first receive acknowledgements (see below), and then from the Quick Menu of TaxSlayer Pro select:
- Business
- View Extension Status
- Key in the EIN and press Enter, or click Select Entity and double-click on the entity name.
Transmitting Extensions
In the event that an extension is rejected by the IRS, it can be e-filed by the later of (a) due date of the return or (b) 5 calendar days after the date of the reject. Before retransmitting a rejected extension, if it includes any payment requests be sure to adjust the date of the debit if it has already passed.
Extensions are transmitted from a separate menu than returns. From the Quick Menu of TaxSlayer Pro, select:
- Business
- Electronic Filing Menu
- Transmit Electronic Extensions/Estimates
- If a particular extension is not listed in the table but should be, select Add Extension and choose the extension you wish to add. (If the extension you wish to add isn't available to be added, it likely isn't marked for electronic filing.)
- If you do not want to transmit a particular extension, select Remove Extension, answer NO to the question about deleting the entire table, and select the extension(s) you wish to delete.
- Select Transmit. We recommend printing the report listing the extensions being sent. Review the report for accuracy and keep it for your records.
- In the TaxSlayer Pro Communications window, select Connect.
- Follow the on-screen communication. When prompted "You May Now Exit this Window", select Exit.
- We recommend that you print the transmission confirmation report for your files.
Frequently Asked Questions
How do I include an Electronic Payment (Direct Debit) of the balance due?
To include bank information for direct debit of the balance due, from the Form 7004 - Automatic Extension Menu, select
- Mark Extension Electronic
- Form 7004 Electronic Payment. Enter the bank info, requested payment date, and daytime phone number when prompted.
How do I receive acknowledgements for an Electronic Extension?
From the Quick Menu of TaxSlayer Pro select
- Business
- Electronic Filing Menu
- Receive Acknowledgements
- In the TaxSlayer Pro Communications window, select Connect.
- Follow the on-screen communication. When prompted "You May Now Exit this Window", select Exit.
- If any acknowledgements are received, you will see two arrows (>>) next to the Print Reports menu. If so, select Print Reports.
- Reports with arrows (>>) beside them should be selected and printed. The report will show a rejection code if the extension was rejected along with an explanation of why the extension rejected.