IRS Ignores Extensions!
The IRS recently announced that it may “ignore” your extension if you filed “zero tax due” on your extension and later owed tax when you prepared the tax return.
Starting in 2015, this office will no longer file “zero extensions” for clients who owed money in 2014 unless you make a reasonable payment with the extension. The IRS is threatening tax preparers with penalties if we help clients continue this practice.
How Much Should You Send In With An Extension?
Calculate the minimum to send with an extension:
- Look at your 2013 1040, pg 2, Line 61.
- Line 61 is your Total Tax for 2013.
- Add up all of your withholdings on your 2014 W-2s, 1099s and any other income docs.
- Add up all estimated taxes paid for 2014.
- Did you pay into the IRS for 2014 MORE THAN Line 61on your 2013 1040?
- If NOT, then you should pay the shortfall with your 2014 extension.
- Call or email the office for a form to mail with your check.
