18377: Batch Extensions (Drake23)

Yes, beginning with Drake Tax 2023, you can generate and e-file extensions for multiple taxpayers at once (in a batch). This process can generate extensions for taxpayers who file Forms 1040, 1040-NR, or 1040-SS, as well as individual state returns for those taxpayers.

Zero Due Extensions

If the taxpayer does not expect to owe any tax, follow these steps to generate and e-file federal and state extensions showing zero ($0) due.

1. From the Drake Tax Home window, select EF > Prepare Extensions.
   
   
   
   
2. Select any applicable extension options, then click Next. 
   • If Require ‘Ready for EF’ indicator on EF screen is marked on Setup > Options > EF tab, the option Indicate return as ready for EF is a required selection. Otherwise, this shows as "(optional)."
   • The option Include all applicable state extensions with $0 due will generate state extensions based on the data entry present in the return at the time of batch creation. Additional states can be generated on a per-return basis if needed
     
3. Select clients from the list, or click Next to filter all existing clients. The returns are calculated, and the EF Return Selector is displayed.
4. Verify the information. If you are ready to continue with e-filing, select all eligible returns, and click Continue.
   • NOTE: If changes need to be made, click Exit and make any necessary changes within the return. Recalculate the return and proceed with e-filing when ready.
5. From the Drake Tax Home window, go to EF > Transmit/Receive to finish e-filing the selected extensions.

 Always verify that the extensions are processed and accepted by the IRS or state agency by reviewing acknowledgments under EF > Process Acks.

Balance Due Extensions

Extensions with a balance due cannot be filed in batches; however, you can use the batch extension feature to automatically complete much of the data entry in a batch. To do so, follow these steps:

1. From the Drake Tax Home window, select EF > Prepare Extensions.
2. Select all applicable extension options, then click Next. 
   • If Require ‘Ready for EF’ indicator on EF screen is marked on Setup > Options > EF tab, the option Indicate return as ready for EF is a required selection. Otherwise, this shows as "(optional)."
3. Select clients from the list, or click Next to filter all existing clients. The returns are calculated, and the EF Return Selector is displayed.
4. Do not make any selections. Click Exit and close the Batch Extensions window.
   
5. Open the return in data entry and change the Amount paid with extension on screen EXT to the expected amount due.
6. (optional) Use the STEX screen to adjust the amount due for any states.
   
7. (optional) Complete the PMT screen to arrange for electronic funds withdrawal.
8. Calculate the return and verify the details.
9. Repeat steps 5 - 8 for each return for which there is a balance due.
   
10. e-File the returns using the EF menu.