Another Tax Professional told me something. I want to see if others agree. My client is on extension for 2022. He will owe $8,000 but won't be able to file by Oct 15. I was told if he pays the $8,000 now and files in November he will only owe a late payment penalty and not a late filing penalty. Agree or disagree?
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I agree. See instructions for the extension form:
By paying before the extended due date, there will be no balance due and therefore no FTF penalty."A late filing penalty is usually charged if your return is filed after the due date (including extensions). The penalty is usually 5% of the amount due for each month or part of a month your return is late. The maximum penalty is 25%. If your return is more than 60 days late, the minimum penalty is $450 (adjusted for inflation) or the balance of the tax due on your return, whichever is smaller."
However other jurisdictions have different rules. For example in California, the extension is automatic (which I've heard a number of people advocate for at the federal level as well). But if you don't file by the extended due date, the FTF penalty is calculated back to the original due date."You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe Howard -
Out of curiosity, how have you determined the taxpayer won’t be able to file on October 15?Comment
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He is in the hospital so this is a likely scenario. I am just plotting our options.Comment
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I believe the IRS electronic filing closes down after 10/15/23. You will have to paper file until they open up again in February 2024.This post is for discussion purposes only and should be verified with other sources before actual use.
Many times I post additional info on the post, Click on "message board" for updated content.Comment
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"I believe the IRS electronic filing closes down after 10/15/23."
Last year it shut down on Nov. 26, similar in previous years."You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe HowardComment
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