Drake Software blog for tax pros, covering tax, IRS news, and more

April 15 Filing Deadline is Approaching

April 15 Filing Deadline is Approaching

The filing deadline for individual returns is approaching – Tuesday April 15, 2014.  Here are a few tips to help with meeting the demands of the deadline. (The information below is also available in video format.)

Timely Filed

Returns are timely filed if they are post-marked on or before April 15 or e-filed by midnight on April 15.  If the return is not ready to be filed, the taxpayer can request an extension by filing Form 4868, Application for Extension of Time to File.  It must also be filed by midnight on the normal due date of the return.

Perfection Period

When an e-filed individual return is rejected, there is a 5-day perfection period for correcting the return and getting it accepted.  The perfection period applies regardless of the date filed, due date, or extended due date, and it is never extended regardless of weekends or holidays.  So, if you e-file an individual return on April 15 and it is rejected, you have until April 20 to get it either retransmitted (and subsequently accepted) or post-marked and in the mail.  If the e-file reject cannot be fixed, include a copy of your transmission report and acknowledgement with the mailed return for proof that you attempted to e-file by the April 15 deadline.  NOTE: For extensions (Form 4868), the perfection period is 5 days.

Ack Delays
As the deadline approaches, there may be processing delays at IRS due to high volume.  Expect longer-than-normal IRS ACK turnaround times the last couple days before the deadline.  We advise getting everything transmitted well before midnight on the 15th

E-filing Form 4868, Individual Extension, in Drake

If a return is not ready to be filed, use Form 4868 to e-file (or mail) a request for automatic extension until October 15.  Extensions must be filed prior to midnight on April 15.   The extension to file does not also extend the payment deadline.  If payment is due, it must be paid by April 15 to avoid late-filing penalties.  The extension form can be generated in Drake Software by accessing the 4868 screen – type EXT or 4868 into the selector field of the Data Entry Menu.  To select the extension for e-file, go to the EF screen and mark the 4868 check box. 

Making a Payment

Payment can be made electronically by electronic funds withdrawal (EFT), or by credit or debit card, when you e-file either the return or the extension.  For EFT, complete the PMT screen to enter the bank account from which the funds should be withdrawn, and indicate if the payment is for a 1040 return or 4868 extension request.  For more information on paying a balance due with a credit or debit card, read our blog on credit  and debit card payments.  The taxpayer can also go to www.eftps.gov and use the Electronic Tax Payment System to make payment.

Resources

Here are some additional resources:

-          Short video on filing extensions in Drake Software

-          Drake Knowledgebase* article 11761: "1040 - How to E-File an Individual Extension"

-          Drake Knowledgebase* article 11797: "1040 Deadline and Grace Period - Perfecting a Rejected Timely Filing"

-          Screen Help on the EXT screen in Drake data entry

-          Chapter 5, "Return Preparation," of the Drake Software User's Manual

* To access the Knowledge Base in Drake, from the Home window toolbar, click Help > Drake Software Knowledgebase. 

States
Due dates, payment options and extension requirements vary from state to state.  Details are available for each state on the state’s FAQ screen in data entry.  You can also access state-specific information on our support website, http://support.drakesoftware.com.  The state’s own website is also a good resource for this information.  Note: Some states do support extension e-file; those supported will be listed (in Drake) in the State/city returns to e-file drop-down on the EF data entry screen.   Also, the State/city selection drop-down on the PMT data entry screen provides a list of states that support EFT payments.


Other April 15 Deadlines

-          Last day to make a contribution to traditional IRA, Roth IRA, Health Savings Account, SEP-IRA or solo 401(k) for the 2013 tax year.

-          2014 tax year 1st quarter estimated tax payment is due.

-          Final deadline to file an original 1040 for tax year 2010 and claim a refund (three-year expiration rule).

-          Estate or Trust return (Form 1041) is due; File Form 7004 to request automatic 5-month extension.

-          Partnership return (Form 1065) is due; File Form 7004 to request automatic 5-month extension.

-          Final deadline for individuals, estates, trusts, or partnerships to file an amended tax return and still claim a tax refund for the year 2010.

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