Extension - Joint vs Separate

[Larmil]

If taxpayers file a joint extension is that extension still valid if they file separate returns?

[Koss]

Extension

Yes, I believe the extension is considered valid for both spouses even if they ultimately file separately.

But good luck allocating any payment that was made with the extension. Last I heard the IRS had conceded that this was a major operational flaw, with no relief in the near future.

If there is any possibility that they will file separately, and there is tax due, I would recommend filing separate extensions, with separate payments.

[Larmil]

Yes, I believe the extension is considered valid for both spouses even if they ultimately file separately.

But good luck allocating any payment that was made with the extension. Last I heard the IRS had conceded that this was a major operational flaw, with no relief in the near future.

If there is any possibility that they will file separately, and there is tax due, I would recommend filing separate extensions, with separate payments.

Thanks, no payment involved. They haven't paid 2006 taxes yet. Husband has a Sched C business. Wife works min wage job. Husband kills himself over money problems. Wife knows nothing abour business.

[Koss]

MFJ vs. MFS

Thanks, no payment involved. They haven't paid 2006 taxes yet. Husband has a Sched C business. Wife works min wage job. Husband kills himself over money problems. Wife knows nothing abour business.

Do you mean her husband literally killed himself?

Because of financial problems? That his wife may know little or nothing about?

That brings a whole new dimension to your question.

If there is any possibility that he has significant tax liability, and that she may qualify for innocent spouse relief, then I would definitely file separate extensions.

[Larmil]

Do you mean her husband literally killed himself?

Because of financial problems? That his wife may know little or nothing about?

That brings a whole new dimension to your question.

If there is any possibility that he has significant tax liability, and that she may qualify for innocent spouse relief, then I would definitely file separate extensions.

Yes, it was suicide. The wife knows nothing about the business, but I don't know about 'innocent'. She shared in the big house and fancy cars. She is talking about filing joint because everything was titled jointly. She stands to lose it all anyway.