SCorp extension forgot to file!!!!

[BHoffman]

Yikes! I suppose I'm on the hook for the penalty $170
Any suggestions?

[erchess]

Not sure what happened here

Did you and your client decide to file an extension and although your client had provided all that you needed, you didn't do it?

Ok, you're human so forgive yourself and come clean with the client asap but do pay the penalty. You probably do have a legally enforceable liability but even if you don't, we learned in Kindergarten that when we break something belonging to someone else we sincerely apologize and do all we can to undo the harm we have caused. If you like this client you might also want to discount the return and write a letter of apology. Make sure also that when you have all you need to prepare the return that you do so promptly.

Going forward, ask yourself how this happened. You might want to invest in a paper or computerized calendar or project management system. One of the tricks of the successful people I have known is that they stop making a particular mistake after the fact that they made it once has been brought to their attention.

[JohnH]

I'll bet there's a pretty good chance SC will abate the penalty if your client is otherwise a compliant taxpayer (or a first-time SC filer).

I've contacted them about other penalty situations and generally (but not always) found them to be very accommodating.

[RitaB]

If it was really your fault...

Yikes! I suppose I'm on the hook for the penalty $170
Any suggestions?

... then yeah, I would pay the penalty. Of course, I'd write a letter trying to get it abated first.

If this is a client you only see at tax time, and they just didn't call and ask you to get an extension, no way would I pay it.

[BHoffman]

This was my fault. I told the client and am willing to pay the penalty, but I'd rather not have to.

[Jesse]

... then yeah, I would pay the penalty. Of course, I'd write a letter trying to get it abated first.

If this is a client you only see at tax time, and they just didn't call and ask you to get an extension, no way would I pay it.

Definitely try to get it abated. I have a new client this year that had a similar situation with the 1040 - preparer forgot to file for extension and the late filing fee was almost $1K. Preparer wrote and took responsibility for late filing as he had issues and the extension was unintentionally missed. They did forgive the late filing fee.

[BHoffman]

That would be sweet.