Anyone know or have a guess when the IRS will start accepting efiles of 1120S? I have a very small one (apparently) and the first meeting with the client is Friday. It would be nice to be able to tell them when I will be able to file the thing.
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Filing S-Corp
As soon as Ultra Tax tells me I can...Sorry.I would put a favorite quote in here, but it would get me banned from the board. -
My tax software vendor says
they don't know, but not before 1-30.Comment
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I'd tell the prospective client that the return is due by March 15, but IRS isn't ready to receive them and nobody knows when they will be ready. And even when the date opens up, I may be so swamped with business and income tax work that I may not be able to get it filed by March 15.
So the only logical thing to do is file an extension for the S-corp right now, which takes March 15 off the table. They should also plan to file personal extensions unless I find that I am able to get the S-corp return done in time to get the K-1's to them.
Now they can do one of two things. They can appreciate the constraints that the governement is placing on tax preparers and see the wisdom of this course of action. Or they may be so self-focused that they may not like the wisdom of this course of action. If the former turns out to be the case, we have the basis for a good long-term relationship. If the latter turns out to be the case, they need to seek someone else to do their work."The only function of economic forecasting is to make astrology look respectful" - John Kenneth GalbraithComment
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Wow, John, what a hammer for an innocent question. I have been thinking about when we can file the 1120S. It might be as well the middle of March but that does not mean we cannot complete the tax return and have it ready. Probably greatly depends on the forms needed. We are allowed to stockpile, so after everything is done it is just a push of the button. For clients were I do both, corporation and 1040, I can already import the information and might be able to file the 1040 before I can file the 1120S. That whole thing is a mess but that does not mean there are no solutions in having our clients and ourselves in mind. Maybe I just see it too simple?Comment
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You are correct - it probably is that simple. But why put yourself in a box when we are dealing with so many unknowns? We're assuming IRS will meet their deadlines, but who knows? Then there's the matter of our software vendors getting their act together. Too many moving parts, and we haven't even discussed regular tax clients blowing up the phone lines with "where's my refund ?" questions. This tax season has the potential to be a record-setter in the aggravation dept.
Filing a simple 7004 (and maybe a state equivalent) takes all those issues off the table. Just because the extension is good until Sept 15 doesn't necessarily mean we have to wait that long. But if an 1120S is filed even one day late without an extension in place, there's that pesky $195 per month/per shareholder penalty to think about. Makes the $500 EIC penalty look downright paltry.
Personally, I'm getting 1120S extensions out in early February, even in normal times."The only function of economic forecasting is to make astrology look respectful" - John Kenneth GalbraithComment
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I don't care when IRS is ready or not. My 1120s' are printed and mailed, along with state's 20S.ChEAr$,
Harlan Lunsford, EA n LAComment
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