Preparing the extension: 1040 Indiana (IN)

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Summary

Use the INExt screen, in the Payments folder, to generate Form IT-9 extension request / payment voucher. One of the key steps to having the penalty waived is to file an extension by the original due date. Federal Form 4868 can serve as an extension request. Indiana Form IT-9 can be used for both the extension request and the accompanying voucher for making an extension payment.

Details on Form IT-9 extension and late penalty criteria.
  • The Indiana Department of Revenue may waive certain penalties if taxpayer files an extension, provided that other criteria are met.
  • If you are not making a payment, the Indiana Department of Revenue still accepts Form IT-9 without a payment amount.
  • The Indiana Department of Revenue does not support electronic filing of Form IT-9 via third party software such as UltraTax CS.
  • The Indiana Department of Revenue does provide a means for taxpayers to make payments online or via telephone.

Payments and filing criteria

Taxpayers who do not pay all of their income tax by the original return due date are typically subject to late penalty. However, the Indiana Department of Revenue waives certain late penalties on the unpaid balance of tax that is due as of April 15, 2022 if the taxpayer meets all of the following criteria:

  • Taxpayer pays at least 90 percent of the tax by the original due date, April 15, 2022, which can be accomplished via withholding, estimates, additional payments, etc.
  • Taxpayer files an extension request via Indiana Form IT-9 or federal Form 4868 by the original due date, which includes making any federal or state extension payments online.
  • Taxpayer files Form IT-40 or Form IT-40PNR by the extended due date, November 14, [[ut_cy_yyyy ]].
  • Taxpayer pays remainder of the tax due by the extended due date, November 14, [[ut_cy_yyyy ]].

Preparing the extension

Use the information below to prepare Form IT-9.

Entering extension data

Enter data on the INExt screen to complete Form IT-9, Application for Extension of Time to File. 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 INExt screen. Choose Setup > 1040 Individual > Federal tab > Extensions to select the method for calculating the extension payment amount. Note that selecting multiple clients for electronic filing via File > Print Extensions causes UltraTax CS to mark the Calculate Extension field if the Create an extension without total tax liability amounts checkbox is not marked in Setup > 1040 Individual > Federal tab > Extensions.

Note: 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 amount to pay with Form IT-9: Enter an amount in the Balance due on extension (Force) field on the INExt screen.
  • To let the taxpayer decide the extension payment amount: Leave the Calculate extension and Balance due on extension (Force) fields blank on the INExt screen. If you choose this option, UltraTax CS leaves the payment amount field blank on Form IT-9.

Printing the extension

Choose File > Print Extensions to print Form IT-9 when data entry is complete on Screen INExt.

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 Schedule 5 or Schedule F. Enter the amount on the INExt 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 the application calculated the extension payment amount or if the extension payment amount was forced. Change the data entered 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 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.

  • Indicate extension has been filed: The Indiana Department of Revenue requests that federal Form 4868 or Form IT-9 not be attached to the return. Instead, the type of extension filed (federal or Indiana) is reported on Schedule 7 or Schedule H, line 3a or 3b. Once the extension is printed, UltraTax CS automatically completes these fields on the return. Use the Type of extension filed fields on the INExt screen to change the information reported on Schedule 7 or Schedule H.
  • Date return filed: Enter the Date return filed on the INPen screen. If the date exceeds the extended due date, UltraTax CS calculates a late penalty on the unpaid balance due.

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