To file or not to file?

[Jesse]

I have a taxpayer who is going to have tax due of Approx $3,800. I filed the 2nd extension but I know he will not have all his info - even if he does I won't have time to go thru it all - by Monday.

Would you even consider filing the return as is, then later amending the return? This would at least avoid late filing fees?

Or am I being very unethical for even thinking such a thought, he dragged his feet this long so let him pay the fees?

[ED SMITH]

Late filing

If you know you don't have all the info to do the return, then you shouldn't do it.
He should pay the $3800 by Monday to avoid the late filing penalty, which is 5%/month. He has already accrued about $115 in late payment interest.

ED

[dmj4]

Pay the money

I would have him pay the money but I would not send the return if it is not complete. If he doesn't want to send the money, then he will have to pay the fees. He should know that if he doesn't file by the deadline that could have interest and penalties to pay. He probably does know this.

[Jesse]

Talking out loud.........

Thanks for the responses. The clients don't have the money to send in so either way they will have to pay underpayment penalty and interest, I thought I could save them the 5% late filing fee.

They are bringing in there information this afternoon, but I am going out of town with my kids this weekend, so I feel guilty that I'm not changing my plans to get the return done. But it's not the first year this has happened!

Why oh why do I worry about these people? Every year it is the same people - same thing - drag their feet getting the info in to prepare the taxes, then whine because they don't have the money to pay. Every year I tell them - the key is organization and not waiting until the last minute. Then every year it's the same thing - everything is a mess and they wait until the last minute. And it is a complicated return w/ husband Self Empl and wife has Employee expenses and direct sales business.

So after all is said and done - I'm not filing and I am leaving for the weekend and I'm not feeling guilty.

[B C]

late filer

Jesse, We all have these people that wait forever to file and then put the blame on us when they have to pay. Maybe they should pay a small amount of estimated payment during the year to help ease the burden. But, if they don't have any money now, they probably wouldn't have any money for that either. Good for you going on vacation. A few more days now won't matter.