Level 15

Question

Will IRS assess a late FILING penalty if.......

Forum|Forum|4 years ago
November 15, 2021
4 replies
13 views

My client made payment with extension in May. When I finally complete the return there is actually more tax due which client paid in October however the return was not efiled. So my question is since all tax was paid by the extension deadline will IRS assess a late filing penalty since return is efiled in November.

Let's not get into why I had a DA attack and never efiled the return. I've already beat myself up over it.

ProSeries Professional

This topic has been closed for replies.

Just-Lisa-Now-

Intuit Community Champion

the money was due back in May, as long as the return got filed by Oct 15th, no late filing penalty , but youre probably still looking at some late payment penalty for what didnt get paid until October.

oh wait, you said it didnt get Efiled by Oct 15th.....I think you still may be looking at a late filing penalty since all the money due wasnt paid by the original due date and the return wasnt filed timely.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

T

TaxGuyBill

Level 15

If I remember correctly, the late-filing penalty applies to any unpaid amount due as of October 16th (because you filed a valid extension).

The late-payment penalty applies to any unpaid amount due as of April 16th (May 16th this year).

BobKamman

Level 15

But there is no late-payment penalty, if 90% of the tax is paid when the extension is filed? And of course, everyone gets one free pass. So don't let it happen again, if they do come up with a penalty. You probably won't know until April, because it will show as "full-paid" and be shelved until all the balance-due returns are processed.

dkhAuthor

Level 15

I wonder how the IRS system will process since it is "full-paid" when the return will be processed. Does it assess automatically or will it kick out to be manually processed.

Yep prepared to ask for abatement - shouldn't be a large penalty Just hate that it is even a possibility.

N

Norman2001

Level 6

Here's what the IRS says:

"We calculate the Failure to File Penalty based on how late you file your tax return and the amount of unpaid tax as of the original payment due date (not the extension due date). Unpaid tax is the total tax required to be shown on your return minus amounts paid through withholding, estimated tax payments and allowed refundable credits."

https://www.irs.gov/payments/failure-to-file-penalty

It seems that there would be a late filing penalty due + interest.

dkhAuthor

Level 15

Yes but what I am wondering is if anyone has had any actual experience with this situation. Paid late and filed later.....did it truly result in a penalty ?

I like to worry about things before they actually happen lol.

IRonMaN

Level 15

I heard a huge asteroid was going to hit the earth next week which will kill all of us and bring back the dinosaurs.

Just thought I would give you something else to worry about to get your mind off worrying about the potential of getting a penalty 😀

Slava Ukraini!

C

CGH

Level 5

same issue all monies paid 6 weeks prior filing date. How to remove remove IRS penalty from program prior to electronic filing?

dkhAuthor

Level 15

Program won't calculate late payment penalty/interest unless you enter a date into the Late Penalties and Interest Worksheet....so delete any entries on that worksheet. If it's an underpayment of estimate penalty, go to Form2210 check box C to have IRS send bill if penalty due.

Sign up

Login with SSO

Let's get you signed in

Login with SSO