Discussion:Tax Return filings that are close to the extension due date
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Discussion Forum Index --> Tax Questions --> Tax Return filings that are close to the extension due date
Www.cpa1.biz (talk|edits) said: | 8 June 2009 |
| Members,
I usually get a few new clients during the time that their tax return is close to the extension due date. A lot of the times, these are sole prop businesses and I don’t have all of their paperwork to estimate taxes owed. To avoid paying late filing penalties, is it worth filing a tax return that's numbers are not so accurate. Once we get all of the information that we need to wrap up the return, then we file an amended return. Or do you recommend overpaying what you think will be owed for taxes and then filing once you get all of the information? Please inform me what you usually do. Thanks. | |
| 8 June 2009 | |
| I'd file the return and then amend it. Get the return in on a timely basis. | |
| 8 June 2009 | |
| If you don't have enough info to get a semi-close estimate for the extension, how the heck can you get a return that's close enough? Filing a reasonable enough extension eliminates the late filing penalty, and knowingly filing a false or incomplete return invites other penalties for both you and TP.
Please see Preparing individual tax returns with poor records and No Records for TP, and see D&T's post at the end here. Also don't ignore the safe harbor rules. Depending on the circumstances, paying same as (or 110% of) P/Y tax may be a no-brainer. | |
| 9 June 2009 | |
| I would always just do an extension and pay the 110% plus enough to cover an estimate of the first quarter of the next year, if you can get them to do that. | |
| 10 June 2009 | |
| I agree with Trillium. If you knowingly file an incomplete return it could fall on you. File the extension with an over estimated payment, worst that can happen is the client will get a refund. | |
| 10 June 2009 | |
| I do an extension with 150% of the estimated balance due. That way, they've already made two quarters of the new year if my estimate was right; and if it was wrong, my *ss is totally covered. | |
| 10 June 2009 | |
| The OP said "close to the EXTENSION due date". The OP is wondering if they should file the return by October 15 with incomplete numbers to alleviate late filing penalties. | |
| June 10, 2009 | |
| Is it October already - I better get busy ! <w>
Might be nice if the OP chimed back in. (S)He did say "sole prop"; those returns are either late, or not due until October (except maybe a taxpayer out of the country on 4/15 with an automatic extension to 6/15 ?). After rereading the OP, I'm confused. And in answer to the original question ("To avoid paying late filing penalties, is it worth filing a tax return that's numbers are not so accurate"), I hope the E & O insurance is PIF. Or would insurance even cover this situation. Those late filing penalties are the client's problem AND responsibility; the result of not getting their information in order in a timely manner. | |
