Extension and e-filing

[ttbtaxes]

This is my first year e-filing. I don't know what to expect and am trying to plan ahead for those clients who routinely have me file extensions for them on April 15.

Do I need to report exactly how much tax was withheld and/or paid through estimates which I e-file the estimate? If the amount I use doesn't agree with the IRS records will they reject the extension?

Any help would be appreciated.

[solomon]

This is my first year e-filing. I don't know what to expect and am trying to plan ahead for those clients who routinely have me file extensions for them on April 15.

Do I need to report exactly how much tax was withheld and/or paid through estimates which I e-file the estimate? If the amount I use doesn't agree with the IRS records will they reject the extension?

Any help would be appreciated.

It is not necessary to wait until the last minute to file - although many do. Compute or estimate the tax liability and show any payments - just fill in the appropriate blanks on the 4868. It will not be rejected if filed properly.

[PIGLEE]

There have been times, when I have not even started their tax return, that I have to ask them, what they think ( higher income than last year, or lower). Then I ask them how much they have to send in. That then is the only figure I put on the extension form. Never had a problem with IRS. I warn the client it may not be enough and they could owe a penalty also. I also put it in my notes what i said to them. I have also worked up a form to give clients, with information on it about extensions, that includes that "an extension is an extension of time to FILE a return NOT AN EXTENSION TO PAY.

[solomon]

§1.6081-4

(b) Requirements. To satisfy this paragraph (b), an individual must—

(1) Submit a complete application on Form 4868, “Application for Automatic Extension of Time To File U.S. Individual Income Tax Return,” or in any other manner prescribed by the Commissioner;

(2) File the application on or before the later of—

(i) The date prescribed for filing the return; or

(ii) The expiration of any extension of time to file granted pursuant to §1.6081–5;

(3) File the application with the Internal Revenue Service office designated in the application's instructions; and

(4) Show the full amount properly estimated as tax for the taxable year.

Note especially (4).

[ttbtaxes]

Here's my concern.

Let's say the client gives me the withholdings for his W-2(s) and 1099s but inadvertantly omitted giving me one 1099-R that had a small amount of federal withholding. The total withholding I include on the Form 4868 will obviously not agree with what the IRS shows as the correct withholding.

Will this discrepancy cause the e-filed extension to be rejected?

[JG EA]

No, that's one of the reasons to do an extension - don't have all your stuff!

[AJsTax]

we normally do not fill in the form

Here's my concern.

Let's say the client gives me the withholdings for his W-2(s) and 1099s but inadvertantly omitted giving me one 1099-R that had a small amount of federal withholding. The total withholding I include on the Form 4868 will obviously not agree with what the IRS shows as the correct withholding.

Will this discrepancy cause the e-filed extension to be rejected?

the only thing we put on the form is if we are sending a payment with it. otherwise ALL the lines are blank. never rejected one yet.
The IRS does not even know what has been withheld yet. the system is not that fast. That is why we get letters in the summer instead of rejects.