When is the REAL extension cutoff?

[HV Ken]

Last night, I had an "Oh crap" moment and realized I forgot an extension! I came back in the office after midnight(Eastern), generated and transmitted the extension. Thankfully, when the acks finally came through, I was relieved to have it accepted.

So my question is - when is the real cutoff when extensions can no longer be generated and/or transmitted? If I wasn't going to be able to even generate the extension at 12:10a, I was going to change the time zone on my computer and try again. Perhaps the cutoff is based on the latest US timezone's midnight? Anybody know?

[JohnH]

That's better than backdating the postage meter back in the old manual postage meter days. Every now and again I'd have one or two people come to my office on the 16th or 17th and ask me to meter their envelope for the 15th. If it wasn't tax returns or extensions, it was Sales Tax reports and Payroll Tax reports. I wouldn't do it, but I'll bet they found someone who would.

And I know of times when someone would drop an extension in the mail on the 16th and the return would't get a FTF penalty even though there was tax due. A tax preparer I knew would do that on the theory that their client had nothing to lose. Then he would attach a copy of the extension request to the return. (there was a time when we had to do that, and some states still require it). But all in all, I think those days are long gone.

[Kea]

Client I was waiting to file last night (15th) sent finally sent me the routing # for his direct debit today. I did file his last night saying it was a paper check. Figured it was better to avoid failure to file penalty.

Perhaps extension would have been better. Especially since he doesn't have actual checks. Amt due was under $300, so hopefully penalty will be tiny.

[Lynn EA USTCP in Louisiana]

Kea, the payment may be made via IRS direct debit from their checking account; the website for that is

www. IRS.gov/payments/direct-pay .

I used it to pay my own taxes, very easy .

[Kea]

Thanks Lynn! I only knew about the credit card method after-the-fact.

I'll pass that on to him. I love the help & suggestions on this board.

[JohnH]

Client I was waiting to file last night (15th) sent finally sent me the routing # for his direct debit today. I did file his last night saying it was a paper check. Figured it was better to avoid failure to file penalty.

Perhaps extension would have been better. Especially since he doesn't have actual checks. Amt due was under $300, so hopefully penalty will be tiny.

It makes no difference whether you filed an extension without payment or filed the return without payment. Either way, the client will owe the same. He will owe 1/2 0f 1% per month FTP penalty, plus interest at 3% APR, for a grand total of 3/4 of 1% per month. So if he pays before May 15, he will owe about $2.50, unless there is some minimum or if he is subject to an estimated tax penalty. Since the amount is under $25, he may not even get a bill, but the P&I will sit in the computer unpaid and will be deducted from a future refund.

[Kea]

I think I should have gone with the extension since the direct debit from the tax return would have been easier (at least for him). It was the 15th & I just wanted to make sure it was filed. I had already e-mailed him saying I would file as paper check if he couldn't get the routing # in time. That was also what we discussed on the 14th.

Yes, the amounts are small, so I don't think it should be much of an issue.

I was just kind of surprised when I got the routing # on the 16th (and nothing else in the e-mail).