Preparing 1040 extensions

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You can use UltraTax CS to prepare and file the extension forms 2350 and 4868. File these forms to extend the due date for forms 1040, 1040-SR, 1040-NR, 1040-NR-EZ, 1040-PR, or 1040-SS.

Batch extensions

This article explains how to create extensions for individual clients. You also have the option of extending multiple clients at the same time. Extending multiple clients at the same time is called a batch extension. If you do a batch extension, you still need to enter payment amounts for clients that need it. If you don't, the extension payment will be zero.

Prepare

Enter the required information for a basic extension as follows. You can also create a custom checklist for preparing Form 4868 using the UltraTax CS Extension Checklist Generator.

  1. Open the Ext screen, in the Payments folder.
  2. In the Calculate extension field, choose 4868 or 2350.
  3. If you are preparing Form 2350, enter information in these fields.
    • Date First arrived in the foreign country
    • Date qualifying period begins
    • Date qualifying period ends
    • Foreign address

      Note: The Foreign address field is on the 2555 screen, in the Foreign Exclusion folder.

Due Dates

UltraTax CS handles due dates for Form 4868 and Form 2350 differently.

  • Form 4868: UltraTax CS automatically calculates the extension due date.
  • Form 2350: Enter a due date in the Extended due date field on the Ext screen.

For a list of due dates, see 1040 IRS filing deadlines & electronic filing information.

Tax liability and Balance due

UltraTax CS can calculate the tax liability and balance due for you, or you can force the amount. 

Enter the extension code

  1. Enter any available tax information. You can import general ledger balances, import from Excel, or manually enter any information you have available about the client's tax return.
  2. Open the Ext screen, in the Payments folder.
  3. Enter the appropriate code in the Calculate extension field.

View the calculated amount

In the Est screen, review the amounts in the Paid with 4868 ext or Paid with 2350 ext field. If you don't see the correct amounts, print or print preview the extension.

Include estimated tax penalties in the balance due on extension

  1. Choose Setup > 1040 Individual > Federal tab, and click the Extensions button.
  2. Mark the Include the projected estimated tax penalty in the balance due on extension checkbox.
  1. Open the Ext screen, in the Payments folder.
  2. Complete the Estimate of total tax liability (Force) and Balance due on extension (Force) fields.

Estimates

To include estimated tax payments with the extension, prepare the estimates and print or e-file as follows:

Prepare the estimates

  1. Open the Est screen, in the Payments folder.
  2. In the 21 Estimates - Calculated section, use the Form 1040-ES - 2020 declaration field to choose how you're calculating the payment amounts.
  3. Complete the rest of the Est screen based on the code you've chosen.

Print or e-file the estimates

Note: You can e-file the vouchers only when the extension is e-filed.
  1. Open the ELF screen in the Electronic Filing folder.
  2. In the Electronic funds withdrawal for estimated tax by quarter field, enter code 2 for each quarterly payment to include.
  3. Complete the EFW instructions in the Payment methods section below.

Payment methods

Your client can pay the balance due on Form 4868 or 2350 using Electronic funds withdrawal (EFW) or by check.

  1. Open the 1040 screen, in the General folder.
  2. Complete the Date of birth fields for the taxpayer and spouse.
  3. Complete the Daytime telephone/ext number field for the taxpayer.
  4. Open the Bank screen.
  5. Enter the banking information in the Primary account fields.

    Note: If the fields are disabled, delete the code from the Taxpayer verified all bank info by: field.

  6. Choose the appropriate code from the Taxpayer verified all bank info by: field.
  7. Open the PIN screen, in the Electronic Filing folder.
  8. Enter the extension PIN information.
  9. Open the ELF screen, in the Electronic Filing folder.
  10. In the Electronic funds withdrawal for extensions requested payment date field, enter a date that is no later than the original due date.

You do not need to enter data to pay by check. If your client is paying by check but the filing instructions show to pay by EFW, delete the requested payment date from the ELF screen.

File the extension

You can e-file or paper file Forms 4868 and 2350. If you paper file an extension, you can still e-file the return.

  1. Open the ELF screen, in the Electronic Filing folder.
  2. Select the correct form from the File extension electronically field.
  3. Choose File > Print Extensions.
  4. Click the Options button.
  5. On the Selected Returns tab, unmark any returns you're not including in the extension.
  6. On the Extension Print Options tab, mark either the first extension, second extension, or 2350.
  7. Click OK.
  8. Mark the Create electronic file checkbox.

    Note: You can also mark other options to print the extension on paper; to FileCabinet CS, GoFileRoom, Onvio Documents, eSignature; or to PDF.

  9. Click the Print or E-file button.

    Note: If the E-file Error Report shows that the return has errors, you'll need to resolve each e-file error and then create the e-file again.

  10. Transmit the electronic returns using CS Connect.
  1. Choose File > Print extensions.
  2. Click the Options button.
  3. On the Selected Returns tab, unmark any returns you're not including in the extension.
  4. On the Extension Print Options tab, mark the first extension, second extension, or 2350.
  5. Click OK.
  6. Mark the Paper checkbox.
  7. Click Print.

Additional information

Print a copy of the extension with the tax return

The IRS does not allow a copy of the extension to be included when electronically filing the return. You can include a copy of the extension with the preparer or client copy of the return.

Print extension instructions

By default, UltraTax CS includes the extension filing instructions in the government collation. You can change the client and preparer collation of the extension to include the filing instructions.

Penalties

If you don't extend the return or don't include a payment, your client may be subject to late filing, late payment and underpayment penalties.

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