How to resolve Diagnostic 58845 in Lacerte

If you're receiving the following diagnostic:

Diagnostic 58845:

Form 4868 Reject: Form 4868 can only be filed on or before the original due date to which the extension applies, unless Line 8 checkbox or Line 9 checkbox is checked. If Line 8 checkbox or Line 9 checkbox is checked, then Form 4868 can only be filed on or before the extended due date for taxpayers out of the country.

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This diagnostic appears when you're attempting to electronically file Form 4868 (Application for Automatic Extension of Time to File) after the original due date has passed (typically April 15), but the taxpayer has not been marked as qualifying for an out-of-country exception.

According to IRS rules:

• Form 4868 must be filed on or before the original due date unless the taxpayer was out of the country and qualifies under Line 8 or Line 9 of the form.
• If neither box is checked and you're past the filing deadline, the IRS will reject the extension electronically.

Follow these steps to resolve:

Option 1 (Most common): File the return instead of the extension

If the taxpayer was not out of the country on the original due date:

1. You cannot e-file Form 4868 at this point. The deadline has passed.
2. Prepare and file the taxpayer’s actual Form 1040 (or applicable return) instead.
3. To clear the diagnostic:
   • Go to Screen 3, Miscellaneous Information
   • Find e-file extension: 1=Form 4868 or 2350 (code 36)
   • Clear this field
   • Also confirm that Screen 9, Extensions is not marked for Form 4868
4. Recalculate the return (Ctrl + R) and proceed with e-filing the main return

Option 2: Claim the out-of-country exception to file Form 4868

If the taxpayer was out of the U.S. on the due date and qualifies under IRS rules:

1. Go to Screen 9 – Extensions
2. Scroll to the Form 4868 section
3. Check the appropriate box:
   • Line 8: Taxpayer was out of the country and is a U.S. citizen or resident
   • Line 9: Taxpayer is requesting a two-month extension for being outside the U.S. without expecting to return by the regular due date
4. Complete any additional required extension information
5. Recalculate the return (Ctrl + R) and reattempt e-filing

This approach will allow the IRS to accept the late-filed extension only if the out-of-country conditions are met.