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Summary
Use the AZExt screen in the Payments folder to generate Form 204 extension request / payment voucher. Arizona also accepts federal Form 4868 as the extension request.
One of the key steps to having the penalty waived is to file an extension request by the original due date. Federal Form 4868 can serve as an extension request. Arizona Form 204 can be used for both the extension request and the accompanying voucher for making an extension payment.
Details on Form 204 and late penalty criteria.
Preparing the extension
Use the information below to prepare the Form 204, Application for Filing Extension.
Entering extension data
Use the AZExt screen to complete Form 204 for the purposes of making an extension payment. There are various approaches to preparing an extension.
- To have UltraTax CS calculate a balance due with extension based on current data entry and calculations on the return: Enter X in the Calculate Extension field on the AZExt screen.
Note: When using File > Print Extensions to select multiple clients at once for electronic filing, UltraTax CS 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 Estimate of total tax liability (Force) field on the AZExt screen.
- Let the taxpayer decide the extension payment amount: Leave the Calculate extension and Balance due on extension (Force) fields blank on the AZExt screen. Under this option, UltraTax CS leaves the payment amount field blank on Form 204.
Printing the extension
Choose File > Print Extensions to print Form 204 when data entry is complete on the AZExt screen.
Preparing the return after filing an extension
When preparing an extended return, ensure you have the following information from the extension.
- Amount actually paid with extension: The amount paid with extension is reported on Form 140. Enter the amount on the AZExt screen in the Extension payment actually made; reportable on main return field. Note that UltraTax CS populates this field when the extension was created if UltraTax CS 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 UltraTax CS, enter the actual amount paid with extension in the Balance due on extension (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 the AZPen screen. If the date exceeds the extended due date, UltraTax CS calculates late penalty on the unpaid balance due.
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