Client is a world-class procrastinator. Has an extension to Oct 15 for her 2010 return, but may still not be ready. Now, she is afraid of owing Federal taxes.
Can she send a check with a 1040-V voucher without a tax return to avoid late payment penalties (but maybe not interest or late filing penalties)?
Can she send a check with a 1040-V voucher without a tax return to avoid late payment penalties (but maybe not interest or late filing penalties)? ==I would use Form 1040ES.
The extension for 6 months from 4/15 is an extension to file not an extension to pay. She became subject to the late payment penalties when she missed the 4/15 deadline. The sooner she pays, the lower the penalty and interest. If she doesn't file on time, she becomes to subject to that penalty as well.
Is the extension even valid if the taxpayer failed to pay the tax due on April 15?
The extension is invalid if the taxpayer doesn't file by October 17th which means the failure to file penalty is computed from April 15th. The OP's client doesn't sound like a simple procrastinator to me. There may be other professional services she would benefit from.
Used to be the extension was not systemically invalidated, but could be manually invalidated by Exam. Has this changed, or does invalidation still require human intervention?
I don't think a 1040-V will work as it is not a return. Can you file a return with what you have, and perhaps overpay, then do amended returns?
It is my understanding that the extension to file remains valid. Your next comment is correct in that the failure to file penalty goes back to
4/15 if she misses next Monday's deadline.
My personal recollection, supported by IRM, is that the failure to file penalty begins to accrue on the day after the latest of the original or extended due date (IRM
20.1.2.2.7.1). However, the failure to file to penalty will be computed on tax due on return less credits available and payments received on or before the original due date (IRM 20.1.2.2.7.2). Making a payment now without filing the return won't mitigate the failure to file penalty, though it will reduce or toll the accrual of the failure to pay penalty.
Sure. The "tax due" on the extension request is just an estimate, you don't even have to sign off on it. I suppose an outrageously inaccurate estimate might lead to disallowance of the extension for FTF (failure to file) purposes.
For California state income tax, the extension is automatic. Unless you are sending a payment, they don't want you to file an extension request.
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