Discussion:Extension denied - any ideas?
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Discussion Forum Index --> Tax Questions --> Extension denied - any ideas?
| 8 January 2008 | |
| I just received notice from IRS that a form 1041 extension I had sent in was denied.
On the extension, I had failed to note that the return will be filed on a fiscal year basis, ending 8/31/07, so the IRS thought the extension request was late. (This ruined my day because of an election I need to make with a timely filed return.) Does anyone have any suggestions as to how to proceed? Thanks | |
| January 8, 2008 | |
| Is this the first year of the administrative trust? Consider choosing a new FY of 9/30/07. Yes, this makes that first fiscal year of DOD thru 9/30/06 late, but maybe nothing happened during that time.
Is there a downside to not filing 8/31/07 on time? Is the trust paying any taxes at all? Any elections that must be made on timely-filed return? | |
| 8 January 2008 | |
| Call the IRS and explain that you made an administrative error on the extension request....the trust is a fiscal year-end....the extension should be allowed. Long ago I forgot to check the box on the 2nd extension request where it asked if a first extension had been filed. Extension denied. I called the IRS and begged. They fixed it over the phone. It was no big deal. "Administrative oversight" may have been the term I used. Good luck. | |
| 4 February 2008 | |
| Now there's more - having written IRS & requested that the extension filed 12/15/07 be processed as timely for the fiscal year ended 8/31/07, I checked the IRS online transcript and see that the extension has now been accepted, but the due date for the 2006 form 1041 is now listed as 10/15/07.
In other words, the extension was processed as if requested on a calendar year basis! I think it's back to the drawing board, unless this is the way the IRS processes fiscal year extensions for the first return filed for an entity (estate). Might they be waiting until they receive the actual return to change the fiscal year in their records? Any thoughts? | |
RoyDaleOne (talk|edits) said: | 4 February 2008 |
| Question, how are you able to use a non calender year?
(a) IN GENERAL For purposes of this subtitle, the taxable year of any trust shall be the calendar year.
Subsection (a) shall not apply to a trust exempt from taxation under section 501(a) or to a trust described in section 4947(a)(1). Just asking? | |
| 4 February 2008 | |
| It's an estate, the death having occurred in September of 2006. | |
| 4 February 2008 | |
| I think the EIN stating the actual FYE is good written evidence of the entities tax year. The IRS does have that on file. What did they do with that. If you never filed and they contacted you looking for the return, would they not be looking for the FYE they have on record? | |
RoyDaleOne (talk|edits) said: | 4 February 2008 |
| Appeal. If your request for an extension of time is denied, you may
make a written appeal to the regional commissioner. The appeal must be made within 10 days after the denial is mailed to you. As a last resort I would proceed filing the return as if the extension was granted. If the extension issue is not resolved by the time I filed the return and an issue arises you could address it at that time. At least you show good faith by filing the return. | |
| 4 February 2008 | |
| I agree with RoyDaleOne. File as if the extension had been granted. | |
| 5 February 2008 | |
| Please educate me - what 1041 election is in jeopardy?
I think the nuances of 1041's are the most complicated of any filing. | |
| 5 February 2008 | |
| Jake - Good question. We want to make the election to treat the revocable (living) trust the decedent had set up as part of his estate (section 645). | |
