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Posted by Haskel LaPort on April 10, 2008, 6:03 pm
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If the taxpayer can't pay their tax liability (20,000) on April 15th which
is better, file for an extension or or file the return by April15th and
request an installment agreement?
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Posted by Paultry on April 10, 2008, 6:50 pm
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Haskel LaPort wrote:
> If the taxpayer can't pay their tax liability (20,000) on April 15th
> which is better, file for an extension or or file the return by
> April15th and request an installment agreement?
>
An extension showing $20,000 tax due without payment of the
$20,000 can be invalidated, thus incurring late filing
penalty. An extension reporting less than $20,000 due when
the balance due is known to be $20,000 is fraudulent. File
the return. Request the installment agreement.
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by Paul Thomas, CPA on April 10, 2008, 7:15 pm
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> If the taxpayer can't pay their tax liability (20,000) on April 15th
> which is better, file for an extension or or file the return by April15th
> and request an installment agreement?
File on time. You'll still have late payment penalties, but with an
installment agreement they'll be less. So is the interest.
Generally I suggest to clients to settle up the smaller bill (usually the
state) first so there's but one monster wanting to be fed. Then pay as much
as you can with the payment agreement. Set the monthly amount small enough
that you know you can make it given most any economic circumstances. You
can always pay more at a later date, but you can never pay less......at
least you shouldn't.
--
Paul A. Thomas, CPA
Athens, Georgia
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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