Discussion:ProSeries- Calculating Penalty and Interest
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Discussion Forum Index --> Tax Questions --> ProSeries- Calculating Penalty and Interest
| September 15, 2007 | |
| I just got a new client and will be filing an amended return from MFS to MFJ. They will have a balance due, which they are uncertain at this time if they can come up with money to pay.
My 2 questions are: 1. Since a specific date is used to determine the amount owed for penalties and interest, do you usually advise the client to mail the return overnight or 3 day so that you know which day it will be received by the IRS? 2. If they cannot come up with the amount to be paid back, what do you enter for date to be paid on the penalty worksheet? | |
Death&Taxes (talk|edits) said: | 15 September 2007 |
| Why bother with more than telling them what they owe today or the day they pick the return up from your office? Especially if they can't pay the bill. And if they can pay, being a day or two off means very little. So they get bill for a couple of dollars more? | |
| September 16, 2007 | |
| 1. just send return certified mail and add a couple extra days for it to arrive, the extra 2 day penalty will be less than the overnight charge, unless it's a huge balance due,
2. since the IRS will recalculate and bill the clients anyway, like D&T says, if they can't pay it all it's kinda irrevelant, but you can just enter date the return is mailed to give the clients an estimate on what the P&I will be, since until they know when they can pay , you don't,,,, | |
Southernbellecpa (talk|edits) said: | 16 September 2007 |
| I usually put the 15th or 31st of the month, allowing the client a couple of weeks since they don't usually jump on these things. And if they sound like they don't readily have the money, then I put 10/15. If it's more, rest assured they will be billed if it amounts to anything! I always advise client to send certified-return-receipt too. | |
| 17 September 2007 | |
| It will make no difference when they mail the amended return. On an amended return, the penalty for late filing, if any, will look back to the original due date and will include interest on the tax and late filing penalty from the due date. Penalty for late payment will start 11 days from the date of assessment of the additional tax. This is the date on the first adjustment notice. | |
