Client cannot file return before Oct 15th, now what?

[AZ-Tax]

If the client is receiving a refund, still a penalty or not?

If client owes, penalty and interest, correct?

[AJsTax]

No penalty

if there is a refund. Those penalties are figured on taxes owed.

If there is a balance due, then there will penalties and interest for late filing, late payment and probably for under payment of estimated taxes due.

[equinecpa]

If you think they might owe but cannot finalize the return due to lack of complete information...it might be best to file the return then amend it when you have the correct information. This will stop penalties for late filing accruing.

[S T]

Another Question

Az, I don't think there are any penalties and interest on late file and return shows a refund (IRS) here's a link that might assist http://www.irs.gov/businesses/small/...122721,00.html although I understand that possibly IRS can impose a failure to file or failure to file penalty (don't remember where I read that) Check with the State return, as I know California will impose a late file penalty of at least $ 100 for sure, if if the taxpayer has a refund.

If t/p can not file but has not received the Stimulus Rebate - are we still able to claim the Stimulus Rebate due on the 2008 Tax Return - filed late?

I think I have at least one of these, maybe two

Thanks

Sandy

[JohnH]

I think you're OK on the stimulus payment, even if the return is filed late. The 2008 payment was an estimated advance against the actual calculated paynment and had an arbitrary time limit, whereas any residual right to receive a full or partial stimulus payment on the 2008 return would continue until the statue runs on the return itself.

[ChEAr$]

I think you're OK on the stimulus payment, even if the return is filed late. The 2008 payment was an estimated advance against the actual calculated paynment and had an arbitrary time limit, whereas any residual right to receive a full or partial stimulus payment on the 2008 return would continue until the statue runs on the return itself.

In point of fact, it's not a stimulus payment at all, but on the return is now termed
recovery rebate credit, so all is well.
that ends well.
something like that.

[S T]

You are Right

It is "termed" Recovery Rebate"

So your thoughts - still okay - even on a "very,very late tax return filing" after 10/15/09???

Am I bad

Sandy

[ChEAr$]

It is "termed" Recovery Rebate"

So your thoughts - still okay - even on a "very,very late tax return filing" after 10/15/09???

Am I bad

Sandy

Assuming we know there will be a refund, I would not file an incomplete return.
But if more tax might be due, I would estimate the added amount and make sure
client sent it in before the 15th.

There are some tax pros who suggest filing a return with adequate disclosure of course
at the same time for a balance due return. Would I? I think it would depend on
facts and circumstances of client. Is he a long time client whose figures have always
been on the money in past years, but this year is an anomaly?
Or is this a relatively new client with whom I am not quite 95% comfortable?

It's a tough call.

Now then, does that make me bad?

[JohnH]

No, that makes you practical.