Discussion:Large balance due

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Discussion Forum Index --> Advanced Tax Questions --> Large balance due
Discussion Forum Index --> Tax Questions --> Large balance due

PBinNJ (talk|edits) said:

15 April 2008
Client owes 50,000 (no penalty) to IRS. Will IRS accept personal check postmarked 4/15 just like any other amount or are there special rules for large balances due? Thanks.

RoyDaleOne (talk|edits) said:

15 April 2008
A check will do.

Death&Taxes (talk|edits) said:

15 April 2008
Twenty years ago on the 15th the client came to the lobby of my boss, the prominent tax lawyer's office. He asked for his return, pulled it from the envelope and asked me if we would mail it if he gave us the checks. 'Of course.'

He pulled out his checkbook and began to write. The reception area had seven or eight others looking over their returns before leaving. Young Michelle, handling the desk, watched him as he wrote and suddenly burst out with, 'ONE HUNDRED AND SIXTY TWO THOUSAND DOLLARS.'

He blushed, said something like 'if you make it you have to pay it,' while all eyes turned to him. Then he gave me the checks and signed returns and left with his copies.

PBinNJ (talk|edits) said:

15 April 2008
Talk about embarrassing moments, but did he come back next year? :)

KCGuy (talk|edits) said:

15 April 2008
One of my client owes $203k and he is just writing a check...However, we are filing for extension as I want to do more analysis of the tax return before shipping it...I hope mailing a check with extension is okay..he did make lot of money last year...Previous year he got some money back so hopefully IRS won't bother him with penalties...

WPCPA (talk|edits) said:

15 April 2008
KCGuy - if that Client has signifcant Real Estate Holdings (buidlings) Cost Segregation may well be availalble and for the Year(s) "Placed into Service" - the rules of "Change in Accounting Method" may well apply - at least put it out on the table for him - the "Look-Back Provisions" are very interesting.

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