Where can I download 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:
- Log in to Heard
- Go to Your Practice>Documents>Taxes
- Scroll down to the tax year, for example "2024", to locate under the Form Type label "Extension Confirmation (Form 4868)"
- Click on the File Name to download.
Do I need to pay if I filed an extension?
An extension to file is not an extension to pay; any taxes owed are due by the original filing deadline to avoid failure to pay penalties. Your tax preparer may have calculated an estimated payment for your extension. 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.
Avoiding Failure to Pay Penalty
If you’ve filed an extension and want to avoid penalties for not paying enough tax, you should make a payment with the extension that covers either:
- 100% of your previous year’s tax (110% if AGI > $150,000), or
- 90% of your current year’s estimated tax liability
This safe harbor payment can help minimize the failure to pay and underpayment of estimated tax penalties.
Even with a safe harbor payment and an extension, the following still apply if you owe tax after the due date:
-
Failure to Pay Penalty
- 0.5% per month on unpaid taxes (up to 25%)
- Starts accruing after April 15, even if you file an extension
-
Interest on Unpaid Tax
- The IRS charges interest from April 15 until the tax is paid in full
- This applies regardless of safe harbor coverage
What if my extension was rejected?
If your extension was rejected, your tax preparer can inform you as to why and submit another extension. Please note the IRS will only accept extensions by the tax filing deadline, March 15th for S Corps and April 15th for Sole Props. 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.
How do I 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:
- S Corporation Tax Return (Form 1120s) Extended Tax Filing Timeline
- Sole Proprietor and Individual Tax Return (Form 1040) Extended Tax Filing Timeline
To proceed with tax filing, please go to Taxes>Annual and complete the tax preparation modules.