After tax extension filing – Heard

This article covers what your extension confirmation looks like, what it means for any taxes you owe, how to avoid penalties, and what to do next.

How much should I pay?

An extension to file is not an extension to pay; any taxes owed are due by the original filing deadline, April 15th, to avoid failure to pay penalties. There are two ways to find the safe harbor amount: using the Heard Safe Harbor Calculator or the amount provided by your tax preparer. Both are covered below.

1. Heard Safe Harbor Calculator

Use the Heard Safe Harbor Calculator to find the minimum federal payment amount for 2025 based on prior year taxes. Before opening the calculator, have the following available from your 2024 Form 1040:

Line 24 — 2024 total tax
Line 11 — 2024 Adjusted Gross Income (AGI)

To use the calculator:

Enter the 2024 total tax (Line 24).
Enter the 2024 AGI (Line 11). This determines whether the 100% or 110% threshold applies.
Enter any federal tax payments already made toward 2025 taxes. The calculator subtracts these from the safe harbor amount to show the remaining balance.
Review the results for the safe harbor amount and remaining balance due.

Tip: Not sure where to find your 2024 Form 1040? It's included in your 2024 tax return documents. If Heard filed your taxes, you can access it in your Heard Tax Documents.

Because state rules differ, the Heard Safe Harbor Calculator covers federal taxes only.

2. Estimated amount from Tax Preparer

Your tax preparer may have calculated an estimated payment for your extension.

In Taxes>Annual on the right-hand side panel, under "Tax Preparation," click on View Extension chat if an amount was shared in your conversation.
Review your Extension Confirmation document for an amount

If you have not made a payment or are unsure of how much to pay, we recommend you file your taxes as soon as possible. If you need further guidance, please reach out via Messages.

State Tax Obligations

State tax payments follow the same general principle as federal: an extension to file is not an extension to pay. In most states, any state taxes owed are also due by April 15, even if an extension is filed.

Most states have their own safe harbor rules that mirror the federal approach. In general, a payment equal to 100% of the prior year's state tax liability is the benchmark for avoiding state underpayment penalties, though thresholds and calculation methods vary by state.

Note: A small number of states have no state income tax — including Texas, Florida, Washington, Nevada, Wyoming, South Dakota, and Alaska. If your practice is based in one of these states, no state extension payment applies.

File Extension Request in Heard

Once your extension is filed, you will see a new module in Taxes>Annual. To keep our records current, please indicate whether a payment was made.

Please note: This module isn't required, and you can proceed with the next tax preparation modules in Taxes>Annual.

2025 Annual Tax Extension Wrap-Up in Heard

Clicking Update Now opens the Extension Wrap-Up window. Please indicate if you made an estimated payment for both federal and state taxes.

Downloading the Extension Confirmation

Your extension is filed after your tax preparer shares the Extension Confirmation (Form 4868). To download a copy, please follow the steps below:

Go to Your Practice>Documents>Taxes
Scroll down to the tax year, for example, "2025"
Look for the Form Type label
- S Corporation: Extension Confirmation (Form 7004)
- Personal: Extension Confirmation (Form 4868).
Click on the File Name to view.

Avoiding Failure to Pay Penalty

Even with a safe harbor payment and an extension on file, the following still apply if tax remains owed after April 15:

Failure to Pay Penalty 0.5% per month on unpaid taxes (up to 25%), starting April 15, regardless of extension status.
Interest on Unpaid Tax The IRS charges interest from April 15 until the balance is paid in full. This applies regardless of safe harbor coverage.

Filing and paying as soon as possible after April 15 reduces the amount subject to these charges.

What if the extension was rejected?

If your extension was rejected, your tax preparer can inform you of the reason and submit another extension request. Please note that the IRS will only accept extensions by the tax filing deadline: March 15th for S Corps and April 15th for Sole Proprietors. Once this date has passed, you can no longer file an extension. Instead, you will need to file your tax return as soon as possible to reduce late filing penalties.

Next Steps to File Taxes

Once you have filed an extension, a new set of deadlines will be available for each step of tax preparation in Heard. For an overview of the extended tax filing timeline, please see:

To proceed with tax filing, please go to Taxes>Annual and complete the tax preparation modules.