Winter Storm Stella Extensions

[Lion]

Issue Number: IR-2017-61
Inside This Issue
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Winter Storm Extension: Many Businesses Have Extra Time to Request A Six-Month Extension

WASHINGTON — The Internal Revenue Service today granted many businesses affected by this week’s severe winter storm additional time to request a six-month extension to file their 2016 federal income tax returns. The IRS is providing this relief to victims and tax professionals affected by this week’s storm (known as Winter Storm Stella) that hit portions of the Northeast and Mid-Atlantic.

Business taxpayers who are unable to file their tax return by today’s due date (March 15, 2017) can request an automatic extension by filing Form 7004, available on IRS.gov, on or before March 20, 2017. Form 7004 provides a six-month extension for returns filed by partnerships (Forms 1065 and 1065B) and S corporations (Forms 1120S).

Eligible taxpayers taking advantage of this relief should write “Winter Storm Stella” on their Form 7004 extension request (if filing Form 7004 by paper). As always, the fastest and easiest way to get an extension is to file this form electronically.

The IRS will continue to monitor conditions and provide additional relief if circumstances warrant.

[ATSMAN]

Now they tell us. I scrambled to file a few 7004 early morning! I was up till 1 am last night!

[Lion]

I was up later than that and am hustling to e-file a partnership return now. But, I still have two extensions to file, one of which is not in my system; and I think both have states that don't accept e-filed extensions. Now, I can send hubby to PO tomorrow to mail the federal and state extensions.

So, I'm going to take a break and eat dinner with hubby. If I get those extensions e-filed before midnight, that's great. But, there's now tomorrow!

I need to get on with personal returns. There's only a month left. I don't think I like this new earlier deadline for partnerships. They are enough alike and enough different from S-corps that I get confused going back and forth.

[JohnH]

I never get this eleventh-hour filing rush that seems to energize so many tax preparers. Especially since an extension is a single-page form that can be submitted on paper, or a couple of clicks on a keyboard. That takes the artificially-imposed deadline off the table, prevents mistakes, and allows time for rest.

Does anyone think the clients really care if we stay up until all hours being a martyr for their tax cause? (They don't)

[ATSMAN]

Clients in general could care less if we have to stay up late to finish the work. I hear JohnH's point. But for most of us filing an extension is only the last resort if:

1) Client has failed to provide us information necessary to complete the return (99% of the time)

2) We are so overworked that the return is not ready to be filed. This is where we get in trouble especially with the early deadline this year. 3/15 just creeps up on you as you are busy clearing up the February 1040 rush. That is what happened to me. Next year I have to plan better because I have to try to change the habits of my 1065 clients who were used to the 4/15 deadline.

3) I think routinely filing a 7004 for the same client may raise a red flag!

[JohnH]

Clients in general could care less if we have to stay up late to finish the work. I hear JohnH's point. But for most of us filing an extension is only the last resort if:

1) Client has failed to provide us information necessary to complete the return (99% of the time)

2) We are so overworked that the return is not ready to be filed. This is where we get in trouble especially with the early deadline this year. 3/15 just creeps up on you as you are busy clearing up the February 1040 rush. That is what happened to me. Next year I have to plan better because I have to try to change the habits of my 1065 clients who were used to the 4/15 deadline.

3) I think routinely filing a 7004 for the same client may raise a red flag!

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1) So the client's procrastination is a reason for us to overwork ourselves and negatively impact our health?

2) We are supposed to be the planners, but we fail to plan?

3) Absolutely wrong. IRS doesn't care any more than the client does.

Extension should be the first step, not the last resort.
I had all my corp extensions (S&C) filed by Feb 27.

Any personal returns that come in currently get one pass.
If I can complete it then it goes back out the door to them.
If there's ANY reason I can't complete it, they immediately get an extension.

If we get it finished by Apr 15, the extension was a waste of 5 minutes.
If we don't get it finished (due to the client's procrastination or my own), there's no problem.
Around here, Apr 15 is just another day and I usually go home to take my wife out to dinner.

[ATSMAN]

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1) So the client's procrastination is a reason for us to overwork ourselves and negatively impact our health?

2) We are supposed to be the planners, but we fail to plan?

3) Absolutely wrong. IRS doesn't care any more than the client does.

Extension should be the first step, not the last resort.
I had all my corp extensions (S&C) filed by Feb 27.

Any personal returns that come in currently get one pass.
If I can complete it then it goes back out the door to them.
If there's ANY reason I can't complete it, they immediately get an extension.

If we get it finished by Apr 15, the extension was a waste of 5 minutes.
If we don't get it finished (due to the client's procrastination or my own), there's no problem.
Around here, Apr 15 is just another day and I usually go home to take my wife out to dinner.

Unfortunately we can't get rid of client procrastination, that comes with the territory and the solution is a 7004 that I file as soon as I know that they will not be able to make my deadline to finish the work. The overworking comes from the due date moving to 3/15 and the February rush of 1040. Previously with the 4/15 deadline there was a little room to catch up. Next year I have to manage it better. It is a learning experience!

My clients will most likely fire me if I filed an extension in February!