Can you prevent late filing penalty by estimating the tax owed and sending it in on Oct. 15 then filing the return at a later date? Assuming that the payment more than paid the total tax liability.
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I believe you would still be assessed the late filing fee, which would be a % of the tax due, therefore if no tax due the penalty would equal Zero. -
Bird I also understand it as you have described it. No tax owing no penalty to asses.
BTW how have you been?Comment
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Payment needed to be paid 4/15 not 10/15. But anytime a payment is made is better than a later payment, cuting off the bleeding...............
If all taxes were paid by 4/15, only est tax penalties would be assesed and no late filing penalties because there was no tax due when filed.Last edited by BOB W; 10-16-2007, 02:02 PM.This post is for discussion purposes only and should be verified with other sources before actual use.
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Late Filing Penalty
Hi
This morning I came in and a client called and said he did not give us all the info so that the return we did on 10/15 has to change. After the changes, he owes tax! He has not filed his return by 10/15 so the good part is no amendment needed, the bad part is, do you compute the late filing penalty, or let the IRS bill the client, does the IRS wave it automatically. I guess I did not compute it, hoping the IRS "forgets."
Thanks.Comment
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Late filing penalty
The IRS wil not forget, alas. You could attach a statement to the original return requesting a waiver. But, all things considered, I would wait for the bill, and request abatement for reasonable cause - of which I hope there is one
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In previous posts sometime ago it was mentioned to never self compute penalties because IRS does not refund self calculated penalties, like if an amended return is done against a return where the penalties were self calculated.
Here is the thread:
Last edited by BOB W; 10-16-2007, 08:40 PM.This post is for discussion purposes only and should be verified with other sources before actual use.
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penalty
Yes, I have had better results waiting for the penalty to be assessed, then send a letter for a waiver. The first question in this post is a situation I had. The tax return is going in after Oct. 15, but money is due. I had the client send in a 1040V voucher payment certified return receipt dated Oct. 15th to cover the liability. Therefore, there will be no penalty when the return is filed, probably sometime in November.Comment
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