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Do I Really NEED TO FILE AN EXTENSION?

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Level 3

T/P is receiving refund for Tax Year 2019 and applying portion to 1st Qtr 2020.

Q1.  Is it really necessary to file extension, since no payment is due and failure to file penalty applies           to balance due only?

Q2.  Since T/P for whatever reason unable to sign 8879 and pay tax prep fee, once they do, then will 

         file return.  Once IRS receives and accepts return, when will the IRS apply portion of the                 

         refund to 1st Qtr 2020.....date they receive it correct or as of 7.15.20? 

Since T/P is filing late, the only issue I see is 1st Qtr 2020 Est Payment will be late, however if 2020 results in refund and they paid 100% of 2019 tax then there should be no underpayment penalties.

Correct?

 

 

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4 Replies 4
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Level 8

Why not file extension just as a precaution against any situation that may arise later.  Doesn't cost anything to do.

I've always thought it was date return was due but I read in a discussion it is date return is received.

 

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Level 3

Agree, even though all items have been accounted and confirmed leaving a refund of $2,283, which I feel is sufficient to cover any unrecorded items.....course this is 2020, so nothing is normal or predictable!  Only thing it costs me is my time!   

Only 2 days left and counting..............

 

 

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Level 10

Also, certain elections must be made on a "timely filed income tax return."  I think federal extensions are a no-brainer.  It's *so* easy now!

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Level 3

Update.....T/P just called me this morning, so everything has been completed!

 

Thanks everyone for your replies and wishing all of you the best during these challenging times!

 

Stay safe and healthy!