Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Taxes: File Extension or Amend Later?
Old 04-08-2007, 02:25 PM   #1
Recycles dryer sheets
 
Join Date: Jul 2005
Posts: 423
Taxes: File Extension or Amend Later?

Hi All,

A while back I was given advice on this forum to see a tax accountant after the filing deadline when he would have more time to focus on my situation as opposed to crunch time during tax season.

I've gone ahead and filled in everything and still want to go ahead as planned and see the accountant after the fact.

I am wondering, should I file what I have and then amend it later if he finds any discrepancies, or should I just file an extension now and then just wait until he looks everything over?

Right now I am looking at a 4k refund, so I guess filing an extension would be an interest-free loan to the govt until I get my butt in gear, but if that just makes things easier than amending, I'm willing to do that.

Thanks for any help!
__________________

__________________
Olav23 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: Taxes: File Extension or Amend Later?
Old 04-08-2007, 02:35 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jun 2005
Posts: 8,627
Re: Taxes: File Extension or Amend Later?

We always file an extension. We seem to get a corrected 1099 in July or August. It doesn't hurt at all to file an extension. We already got our refund: I simply adjusted the withholding from my paycheck to $1 until I used up my refund amount, then switched back to normal withholding. When I file in October, I will credit my overpayment to my next year's taxes.
__________________

__________________
LOL! is offline   Reply With Quote
Re: Taxes: File Extension or Amend Later?
Old 04-08-2007, 08:31 PM   #3
Full time employment: Posting here.
Sandy's Avatar
 
Join Date: Dec 2006
Location: Florida
Posts: 855
Re: Taxes: File Extension or Amend Later?

Taking the refund now might get tricky. Depends on your situation. If the refund results in net paid taxes that are at least as high as the previous year, then take the refund, bank it, earn interest, and sort it out later. If you take the refund, but that leaves you with minimal payment and the amendment shows you owe more, you could be hit with interest and penalties. Also, I had an amendment last year which resulted in a refund, after I'd paid extra. The amended return seemed to get lost, it took 6 months, lots of calls, and bringing in the taxpayer advocate to get it all rolling. However, because the delay was theirs, they paid me interest on the refund amount.

OTOH, leaving the refund on the table as an interest free loan is not good. If that is what you do, file the extension, but get it sorted out as quickly as possible.
__________________
I would not have anyone adopt my mode of living...but I would have each one be very careful to find out and pursue his own way, and not his father's or his mother's or his neighbor's instead. Thoreau, Walden
Sandy is offline   Reply With Quote
Re: Taxes: File Extension or Amend Later?
Old 04-08-2007, 08:38 PM   #4
Thinks s/he gets paid by the post
SecondCor521's Avatar
 
Join Date: Jun 2006
Location: Boise
Posts: 2,405
Re: Taxes: File Extension or Amend Later?

Note that if both your original and amended returns both result in refunds, the IRS asks you to wait until you receive the first refund before filing for the second. Don't know if that will matter to you or not.

http://www.irs.gov/taxtopics/tc308.html

2Cor521
__________________
"At times the world can seem an unfriendly and sinister place, but believe us when we say there is much more good in it than bad. All you have to do is look hard enough, and what might seem to be a series of unfortunate events, may in fact be the first steps of a journey." Violet Baudelaire.
SecondCor521 is offline   Reply With Quote
Re: Taxes: File Extension or Amend Later?
Old 04-08-2007, 08:41 PM   #5
Thinks s/he gets paid by the post
JPatrick's Avatar
 
Join Date: Jun 2005
Posts: 2,494
Re: Taxes: File Extension or Amend Later?

Back in the days when we were filing a schedule C also known as audit bait we would get the return squeaky clean by April 15 then file an extension.
Why? I believed then as I believe now that if you are audit bait simply based on what forms you file, you reduce your chances of an audit by filing an extension.
Nowadays I only deal with a couple of K-1's so I file by the 15th.
OTOH, I never faced a refund of $4000 either. That's a pretty big loan to be giving your uncle
__________________
JPatrick is offline   Reply With Quote
Re: Taxes: File Extension or Amend Later?
Old 04-09-2007, 07:42 AM   #6
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2005
Posts: 13,290
Re: Taxes: File Extension or Amend Later?

Quote:
Originally Posted by JPatrick

Why? I believed then as I believe now that if you are audit bait simply based on what forms you file, you reduce your chances of an audit by filing an extension.
Wife's tale.... never made a difference... ALL returns are run through a computer to determine what to audit.. and they audit them a couple of years after you file..

You just didn't do anything that required and audit...
__________________
Texas Proud is online now   Reply With Quote
Re: Taxes: File Extension or Amend Later?
Old 04-09-2007, 09:27 AM   #7
Thinks s/he gets paid by the post
FIRE'd@51's Avatar
 
Join Date: Aug 2006
Posts: 2,322
Re: Taxes: File Extension or Amend Later?

Quote:
Originally Posted by LOL!
We always file an extension. We seem to get a corrected 1099 in July or August. It doesn't hurt at all to file an extension. We already got our refund: I simply adjusted the withholding from my paycheck to $1 until I used up my refund amount, then switched back to normal withholding. When I file in October, I will credit my overpayment to my next year's taxes.
Maybe this is "stating the obvious", but if you end up owing money, you will be charged interest back to the original April due date. So if you are not sure you will be getting a refund, you must make sure you pay at least the tax due when you file for the extension in order to avoid the interest charges.
__________________

__________________
I'd rather be governed by the first one hundred names in the telephone book than the Harvard faculty - William F. Buckley
FIRE'd@51 is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Prepaying real estate taxes for SEVERAL future years? MooreBonds FIRE and Money 16 01-25-2007 06:40 PM
Taxes tryan Other topics 0 12-08-2006 08:45 AM
Roth Conversion Tax halo FIRE and Money 35 11-28-2006 01:00 PM
Re-balancing & Taxes JJac FIRE and Money 7 11-28-2006 12:09 AM
No Taxes or No SS - Which Would You Choose?? SDY888 FIRE and Money 49 12-15-2004 11:12 AM

 

 
All times are GMT -6. The time now is 11:32 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.