In this paper, we construct the bilinear identities for the wave functions of an extended Kadomtsev-Petviashvili (KP) hierarchy, which is the KP hierarchy with particular extended flows. By introducing an auxiliary parameter, whose flow corresponds to the so-called squared eigenfunction symmetry of KP hierarchy, we find the tau-function for this extended KP hierarchy. It is shown that the bilinear identities will generate all the Hirota's bilinear equations for the zero-curvature forms of the extended KP hierarchy, which includes two types of KP equation with self-consistent sources (KPSCS). It seems that the Hirota's bilinear equations obtained in this paper for KPSCS are in a simpler form by comparing with the results by X.B. Hu and H.Y. Wang.

We show that the discrete Kadomtsev--Petviashvili (KP) equation with sources obtained in \cite{Hu2006} by the "source generalization" method can be incorporated into the squared eigenfunctions symmetry extension procedure. Moreover, using the known correspondence between Darboux-type transformations and additional independent variables, we demonstrate that the equation with sources can be derived from Hirota's discrete KP equations but in a space of bigger dimension. In this way we uncover the origin of the source terms as coming from multidimensional consistency of the Hirota system itself.

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