Extensions when getting a refund

[Cyclone]

I have always filed extensions for everyone that I had in my office that will not get filed by the deadline.

I have several clients that are traveling or for other reasons can't get into sign by the deadline.

I have their returns done and they are getting refunds.

Just curious do you guys file extensions for people even if they are getting refunds?

I plan to but they are at the bottom of the extension pile.

I sure hope the ATX and IRS servers stay up till the end but don't want to plan to have to efile anything on the 15th from experience.

[jasdlm]

Yes.

[Terry D EA]

Yes, and even though it is unlikely, the IRS can still penalize for failure to timely file.

[RitaB]

Yes.

[JohnH]

Yes, extensions should be filed for any returns not expected to be filed by the 15th, or any case where there is uncertainty about whether it will be filed on time. This should be done irrespective of whether there is a balance due or a refund showing in the return.

You never know when a client forgot to give you some income info , or one or more of their deductions turns out to be incorrect. So even though the original return showed a refund, if the examination shows a balance due on the original return, a FTF penalty will be assessed. You don't want to be in the middle of that.

A "protective" extension solves all those problems.

[mcb39]

Yes. I have actually had a client get fined once for late filing even though she had a refund coming. Today is extension day. New clients still coming in. All extensions, then I can polish off as many as I can by Tuesday.

[GeneInAlabama]

It also makes the client feel better knowing that he has been taken care of.

[Lion EA]

Yes. CT will penalize even with a refund. And, what was said above about that K-1 or other missing income.

[Jack from Ohio]

Yes, because until you complete the return, you don't know for sure if there will be taxes owed.

Here in Ohio, most of the cities that have municipal income tax, want a copy of the extension and/or their own extension form filed.

[joanmcq]

I'm filing them like crazy today. Sending vouchers to anyone that owes, filing for refunds.

And mailing extensions for GA & NC who are in the dark ages & require a state extension even if there's a refund, and don't efile the damned things.

[JohnH]

You can file NC extesnion online through their web site.

[jklcpa]

I just filed NC and DE extensions online for 2 clients too. All were zero balances owed.

[JohnH]

NC follows pretty much the same rules as IRS - no penalty on refund returns filed late, and the extension is still valid even if someone owes and doesn't pay it all. But they do like to hear from the taxpayer, just to stay in touch.... And NC sticks the filer with a flat 10% FTP penalty if they owe money after the 15th, plus a 1/2 of 1% monthly interest charge.

[Randall]

Just a few more to go. Have been contacting clients the past week who I think will owe and getting them to send in payments. Like Jack said about Ohio, here in No. Ky., the local business returns want their own extension and an estimated payment. That's always a pain, but it's nice when the actual return is completed and they don't owe much and there's no penalty.

[kcjenkins]

And one other advantage is that when you tell a procrastinating client, "Based on the partial info you have given me, you need to file an estimated payment of $$$$$", they often get busy rounding up that missing info. That's why I always advised making that call in the first week of April.