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Summary

Use Screen NCExt in the Payments folder to generate Form D-410 extension request / payment voucher. The North Carolina Department of Revenue may waive certain penalties if taxpayer files an extension, provided that other criteria are met. North Carolina does not waive the Fail to Pay penalty unless the taxpayer has paid all tax by the original due date. Thus, the purpose of filing federal Form 4868 or North Carolina Form D-410 extension request by the original due date is to waive the North Carolina Fail to File penalty on any tax still due as of the original due date. Note that North Carolina Form D-410 can be used for both the extension request and the accompanying voucher for making an extension payment.

Details on Form D-410 and late penalty criteria.

Preparing the extension

Use the information below to prepare the Form D-410, Application for Extension for Filing.

Entering extension data

There are various approaches to preparing an extension.

• To have the application calculate the extension payment amount based on current data entered: Enter X the Calculate Extension field on Screen NCExt. Choose Setup > 1040 Individual > Federal tab > Extensions to select the method for calculating the extension payment amount. Note that when using File > Print Extensions to select multiple clients at once for electronic filing, the application marks the Calculate Extension field if the Setup > 1040 Individual > Federal tab > Extensions > Create an extension without total tax liability amounts checkbox is not marked.
• To force the extension payment amount: Enter an amount in the Balance due on extension (Force) or the Estimate of total tax liability (Force) field on Screen NCExt.
• To let the taxpayer decide the extension payment amount: Leave the Calculate extension and Balance due on extension (Force) fields blank on Screen NCExt. When this option is used, the application leaves the payment amount field blank on Form D-410.

Printing the extension

Choose File > Print Extensions to print Form D-410 when data entry is complete on Screen NCExt.

Preparing the return after filing an extension payment

When preparing an extended return, ensure you have the following information from the extension.

• Amount actually paid with extension: Enter the amount on Screen NCExt in the Extension payment actually made; reportable on main return field. Note that the application populates this field when the extension was created if the application calculated the extension payment amount or if the extension payment amount was forced. Change the data entry for this amount if the taxpayer paid some other amount.

  If an extension was filed via some means other than the application, enter the actual amount paid with extension in the Force field. By doing so, this will automatically complete data entry in other fields, including fields for extended due date and amount actually paid with extension.

• Date return filed:
  • Enter the Date return filed on Screen NCPen. If the date exceeds the extended due date, the application calculates late penalty on the unpaid balance due.
  • the application calculates the late interest and penalty worksheet only when the system date is after the original due date.
• Attach extension to return: the application automatically attaches a copy of Form D-410 to Form D-400 when you print the North Carolina extension via File > Print Extensions.

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