Trying to file Form 7004 for a fiscal year end 1120S. No tax is due. This year, I'm told extensions without a payment due must be filed on paper. is this true?

[dogwood]

I've filed extensions electronically in the past without payment.   Has this changed?

[Just-Lisa-Now-]

Ive seen people have issues with Efiling fiscal year extensions. I dont have any of these so no first hand knowledge, but I have seen it complained about.

[PATAX]

I would mail it via certified mail... When the post office stamps the date on your receipt then this is accepted by the IRS as the date it was filed... If they do not open up the mail and/ or process it on time then that is their problem.. Just my opinion

[IRonMaN]

"This year, I'm told extensions without a payment due must be filed on paper. is this true?"

I think I really need to change my name to George.  Curious me wants to know - who told you that?  I would give e-filing a chance and if you can't make it work, then resort to the paper filing route.

[joshuabarksatlcs]

RE: If they do not open up the mail and/ or process it on time then that is their problem

By codes and regulations, true.  In practice, it could lead to a mini-disaster.

Allow me to share with you a REAL experience: I paper-filed an extension for an exemption org (EO) in 10/2020 (original due date 11/15).  I did NOT efile because the EO might switch to "someone cheaper" and I didn't want to incur the fee.  The EO later decided to stay with me. 

F990 filed in March 2021.  Late filing penalty (remember for EO, it's $$ per day) assessed within 3 weeks of filing.  Protest letter written with the explanation and copies of the certified mailing and receipt postcard attached.

Four rounds of IRS assessment letters and finally the certified letter for bank lien followed.

Client called and talked to IRS agents (after crazy long wait time, of course) after each letter.  NO positive result.  The assessment was "frozen" for some time but only after the first call. EO also sent response letters - with the original letters attached - after getting each IRS letter.

Finally received a confirmation  earlier this month, stating that IRS kindly removed the penalty.  This is the picture of "their problem". 

I strongly advise against paper filing extensions for 1065, 1120S and 990's, and returns with tax balances.  I don't have fiscal-year 1120S; so, I don't know the answer.  I know this may be irrelevant or TMI.  However, do your best to e-file.   

Another thought, which I don't know the answer because I can pretty much take care of all filing-related thingies on Lacerte.  If the software doesn't allow it, would the IRS website allow extension filing for entities?  Just being George (the curious one, and not the 4Tack one), as IronMan said.

Sorry for the long posting, but I have to keep up with my image....  

[PATAX]

You are exactly right... I had clients that paper filed the 990 return before it  was  required to be efiled, and they also received irs letters that they didn't file, but the certified mail receipt looks like it took care of the matter.. other CPAs on this forum also had the same issue.... this year the software would not let me electronically file the 990 extensions.. So what did I do? I just hurried up and finished the actual 990 returns before the due date and electronically filed them, i.e. no 990 extensions.... we should not be experiencing this nonsense, plain and simple..... just my humble opinion...

[BobKamman]

I always give my clients a choice.  They can either phone IRS when they receive a notice, or they can phone me.  If they choose not to call me, I'll just take their name off the client list and notify the first one on the waiting list.  

If they do the right thing and call me, I'll take 15 minutes to prepare and file the Form 12153 request for a Collection Due Process hearing.  Then I will make sure it gets mailed to the proper address before the short deadline.  By the time this works its way up to the top of some Settlement Officer's inbox, the extension will have been found and processed.  And you can still argue other issues, like abatement for reasonable cause if it turns out the dog ate the extension.  

Taxpayers have rights.  Why do people choose not to exercise them?  Maybe they figure for what they are paying the phone company, they have to get the most from the service.  

[dogwood]

thank you