I'm filing extensions again this year. Of course, no one knows what they owe or if they owe or we'd have their taxes done. On the lines for balance due and payments in, what does anyone else do that has no idea what those amounts might be. Software brings up all zeros except for the telephone credit showing. Is there a problem sending them in that way? Or should I take numbers off last years and just estimate. No one is sending in payments. They know they will pay interest and penalty for paying late. Any suggestions?
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Do the same
The people I have that do extensions have no idea what they will owe or how much they have made.
I just send in zero extensions and nothing bad has ever happened.
Linda F -
That's what I've been doing, too, just wondered if I was the only one.Comment
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I've never had an issue. I do remind the clients that I talk to that it isn't an extension of time to pay and explain the interest & penalties. Amazing how many think, "I don't have the money now so file an extension for me."Comment
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To file an extension
one must make a reasonable effort to estimate. Which is why if a client calls
I tell him to bring him all his stuff anyway. Of course he then says he has it all,
just needs extension because he doesn't have the money.
So my reaction is to bring in the records and i'll do the return on time or......
not do it atall!
No extensions! Take no prisoners.ChEAr$,
Harlan Lunsford, EA n LAComment
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Well
I don't have time to find it now, but somewhere way back when, I thought that we had to provide a reasonable estimate of tax liability on the extension form, however, we could enter whatever amount of payment.
Reason being, (in my thoughts) if we did not make a reasonable estimate at the tax liability, and we entered zeros, it could invalidate the form 4868 extension, and then possibly subject the t/p to late file penalties as well as late pay penalties.
I always have the client provide me with any tax papers necessary to at the very least establish income, witholdings and possible tax liabilities. If they don't want to provide deductions, then I enter as if they were a short form, at least report on income.
Tax client can choose to pay or not, but the extension has tax liability, withholding, and some type of an amount due, or overpayment.
Clients are Lazy! They expect us to pull miracles out of a hat and make everything okay!
SandyComment
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