Efile authorization for Form 7004

[ttbtaxes]

What authorization form is needed, if any, to file Form 7004 if there is NO balance due?

[ttbtaxes]

Anyone know for sure?

[Lion]

None?

I hope it's none, as I think I filed a couple last year, just mailed them in from here.

[Koss]

Extension

I don't have an answer "for sure," because I can't cite an authoritative source.

But I think it is reasonable to infer that the e-filing of Form 7004 is governed by the same rules as e-filing of Form 4868.

When there is no balance due, there is no signature requirement. Even when there is a balance due, there is no signature requirement unless the taxpayer is making an electronic check payment.

Lion's comment above refers to mailing the form, but the original post refers to e-filing. But the same question would still arise. Can a tax pro complete Form 7004, or Form 4868, and mail it to the IRS, without having the taxpayer sign anything?

When there is no signature requirement, the taxpayer doesn't have to sign anything, whether it is filed by mail or electronically.

Because the paper form does not require a signature, the taxpayer could potentially delegate the task of completing and filing the form to anyone--even, for example, a 15-year old part-time employee. Delegating this task does not require anything in writing.

Last year (or maybe two years ago), there was actually a very interesting discussion on this board about whether it would ever be appropriate for a tax pro to file an extension for a taxpayer without the taxpayer's express authorization. The discussion revolved around unusual circumstances, where the due date was approaching and the tax pro, for some reason, could not get in touch with the taxpayer.

The question that I raised was whether anyone could imagine a context in which filing such an extension could ever do any harm or injury to the client. I won't say that it's impossible, but I don't think anyone came up with a concrete example.

I went so far as to suggest that based on individual facts and circumstances, if there is an established relationship between the tax pro and the client, it could conceivably be negligence if the tax pro does not file such an extension.

The whole point, of course, is that if there is a balance due, even if no payment is made with the extension, the extension avoids a penalty for late filing.

The obvious question is: Why can't the tax pro communicate with the client before filing the extension? But there are many plausible answers to this question...

BMK

[BOB W]

Just because an extension is filed does not mean a tax return can't be filed within the due date. It has no effect. So if a client decided to use another preparer without telling his old preparer and the old preparer files an extension because he has not heard from him, there is no damage done.

We have all had a client at some time who calls in the beginning of May wanting you to do his tax return and says "You did file an extention for me didn't you? I've been coming to you for years so why aren't you there for me?"

I say, file the extension because I don't see any harm in it.