Additional income after extension

[Kea]

I filed an extension last week for client's college age daughter (2 W2s). Today client tells me that daughter received $4000 distribution from her trust, but K1 is not yet ready. Without the K1, I don't know how much (if any) of the $4000 is taxable. Parents are in 25-28% tax bracket (I haven't done their extension yet).

Extension was filed with an assumed refund. That might still be true. But if they want to send a payment by 4/15, what documentation should be filed with it to have it applied to 2012 extension?

[JohnH]

So they might owe a maximum of $1,200 when the k1 figures are entered. Probably less than that since you said they have a refund as things are. The FTP penalty and interest will be about $12 per month. Hardly worth the trouble to do anything.

You could paper file with the new info and a check. Even if IRS gets confused about the whole thing, the tax has been paid and you can probably get any erroneous penalty removed.

However, if it were me I'd tell the client it will cost them more than $12 of my time to straighten out any potential problems. So their best bet would be to leave it as it is.

[Kea]

Sounds good. This time of year I'm all for taking the easy way out. Just so long as it doesn't get me in trouble -- I'm also a coward.