Extension was filed timely

[Yardley CPA]

New client came in late in the season and I ended up filing an extension.  Client did not have all the paperwork and told me he normally filed extensions in the past when he was unable to file by April 15th.  He finally brought me all the info and after looking through it over the past couple of days, I determined he does not need to file a 1040 (income is below the limit).  Since the extension was already filed, is it necessary to now file the 1040?

 

Thanks!

[Elrod]

Yardley,   I would......That way it will be off both of your minds.

[JohnH]

I'd file.  If for no other reason, it at least starts the SOL running.  That way, if it later turns out he forgot to tell you about some income, you're either filing an amendment to a timely-filed return or else the SOL has expired and there's no risk to anyone. This is even more important if the person has any sort of brokerage account.

Personally, I never tell someone they should not file if I have a client relationship with them (except for those who have received a letter from IRS saying they don't need to file..  It isn't about collecting a fee - it's about limiting potential liability.

Edited October 8, 2015 by JohnH

[Abby Normal]

Besides, do you really know you have "all" the paperwork? Sounds like a disorganized client.

[Yardley CPA]

Thanks for the feedback.  I was planning on filing but wanted to get your thoughts.  Since the extension is filed it would just make things more clean to file the return.

In regards to the paperwork, chances are good we'll probably amend this return as other stuff is sure to flow in after its filed.