Discussion:Late filing penalty???
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Discussion Forum Index --> Tax Questions --> Late filing penalty???
| 15 October 2007 | |
| Taxpayer paid in enough money with first extension so that they will now be eligible for a refund. If we file late, will we still have a late filing penalty? | |
Death&Taxes (talk|edits) said: | 15 October 2007 |
| No | |
| 15 October 2007 | |
| Thanks D&T, That is what I thought but it is getting late, my "stack" does not appear to be shrinking fast enough and it is good to get the confirmation. Much appreciated! | |
| 15 October 2007 | |
| That is correct but be careful of losing certain elections such as 179. | |
| 15 October 2007 | |
| Are you sure about §179? "That is correct but be careful of losing certain elections such as 179."
[start]The election under section 179 and §1.179-1 to claim a section 179 expense deduction for section 179 property shall be made on the taxpayer's first income tax return for the taxable year to which the election applies (whether or not the return is timely) or on an amended return filed within the time prescribed by law (including extensions) for filing the return for such taxable year. [end] | |
Death&Taxes (talk|edits) said: | 15 October 2007 |
| Also remember that if audited, and the audit change produces more tax than the refund, there would be a late filing penalty. | |
| 15 October 2007 | |
| You are right, they changed the 179 election a little while back to include late filed returns. There are other elections for which a late filed return could disqualify them though. | |
| 15 October 2007 | |
| The question was "...will we still have a late filing penalty?" I was under the impression that there would be no "late filing" penalty, but that there could be an "underpayment" penalty as the taxes were not paid timely, i.e., during the year. | |
Death&Taxes (talk|edits) said: | 15 October 2007 |
| He would have had an underpayment penalty, if applicable and as computed on Form 2210, no matter when he filed. | |
| 15 October 2007 | |
| Agree on other issues regarding late filing, especially D&T's point about penalties if there is a subsequent audit adjustment. But on the issue of Sect 179, I looked it up last night and it said that you could take or change a 179 even on an amended return. I believe that this covered years 03 to 09 but I don't know if this is correct and am to busy to look it up right now.
Thanks everyone. | |
| 18 October 2007 | |
| The Section 179 election was not available for late filed returns prior to 2003. That rule will change back after 2010 unless congress acts. | |
