BULK EFILE EXTENSIONS

[aifin]

From the EF center, select several clients at once and e-file an extension for all selected without opening client file.

[IntuitGabi]

Thanks for the idea. We are changing the status to "Open for voting" since it has been around for over 30 days and no longer considered "New". If you have any questions on the life cycle of an idea, check out our Idea Exchange Getting Started Guide for more information.

[IRonMaN]

Great idea.  I'm impressed that Intuit has the capability to know how much to fill in for the estimated tax liability and payments made for that pile of extensions..  I guess that software is more impressive than I ever gave it credit for.

[aifin]

Many of our clients do not send estimates with their extensions and this would be perfect for those that dont. 

This option would not preclude you from doing it the old fashion way...so why piss on my idea? 

[TaxGuyBill]

He didn't say paying estimates, he said estimated tax liability (line 4 of the 4868).

I've never understood how people do bulk extensions.  You pretty much need to have most of the return done in order to ascertain line 4 of the 4868, so why not do it from within the client file?

[peggypricetx]

We do lots of courtesy extensions where the client hasn't provided any information for that tax year. A ZERO extension still counts as an extension, so a bulk way to file them would be helpful. We can still encourage clients to pay an appropriate estimate by April 15, but the extension of time to file would already by assured.

[TaxGuyBill]

@peggypricetx  Regulation 1.6081-4(b) states these are the requirements for an extension:

(b) Requirements. To satisfy this paragraph (b), an individual must -

(1) Submit a complete application on Form 4868, “Application for Automatic Extension of Time To File U.S. Individual Income Tax Return,” or in any other manner prescribed by the Commissioner;

(2) File the application on or before the later of -

(i) The date prescribed for filing the return; or

(ii) The expiration of any extension of time to file granted pursuant to § 1.6081-5;

(3) File the application with the Internal Revenue Service office designated in the application's instructions; and

(4) Show the full amount properly estimated as tax for the taxable year.

https://www.law.cornell.edu/cfr/text/26/1.6081-4

So according that that, if you do not "show the full amount of properly estimated tax", it does not meet the requirements of an extension.  That is why Form 4868 also says "Qualifying for the Extension - To get the extra time, you must: 1. Properly estimate your 2022 tax liability using the information available to you"

[peggypricetx]

TaxGuy has reminded me that the extension could be considered invalid without the estimated tax liability. Do you still file the extensions if you haven't even half-way done the return? Do you enter last  year's data when you have no other information?

[TaxGuyBill]

I rarely file extensions because of this rule.

I tell the client that a valid extension requires a proper estimate of things so I can't do it.  And if they want to try for an extension they can make a payment on IRS Direct Pay (which files an extension).

[peggypricetx]

Thanks for your response.

[IRonMaN]

I have a handful of clients that don't know the meaning of April 15th and I won't see them or any of their information until several months after the due date.  They assume I will take care of an extension for them --------- and I do, even though I despise babysitting clients.  For those folks I will use the prior year return to estimate where they will come out ---------- which is normally pretty close to the final numbers when the return is ultimately filed.