Taxpayer is seriously ill and has been unconscious for a long time. Her children couldn't find her tax information. In order to get copy of the tax statements, they need a power of attorney but they couldn't get her to sign one because she is unconscious. Is is possible that another extension can be granted for the taxpayer?
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There's no provision for an additional extension beyond Oct 15, but there are a couple of precautions you could take. If you're fairly certain there will be a refund, then nothing really needs to be done as the late-filing penalty is based on the tax due. (This needs to take into account the possibility of potential adjustments if the return were audited in the future, so you need to be careful about how you handle it). If you think there may be tax due or are not sure, then making a significant payment by Oct 15 would put the taxpayer back in the "refund" situation - no tax due and thus no penalty regardless of how long it takes to file the return.
Here's a discussion from a few days ago on a similar scenario:
Last edited by JohnH; 10-01-2010, 02:49 PM."The only function of economic forecasting is to make astrology look respectful" - John Kenneth Galbraith -
In any case
you'd have a pretty good case to request abatement of any penalties that might accrue.Evan Appelman, EAComment
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I agree completely, but given recent stories about IRS's new emphasis on boosting revenue through penalties, I wouldn't let past experience (or even IRS's stated position regarding reasonable cause) be my guide. And I definitely would not suggest to the family that penalty abatement might be a possibility, because that's all they will remember."The only function of economic forecasting is to make astrology look respectful" - John Kenneth GalbraithComment
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