- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
re: Tax Filing Extension
Posted on 4/11/24 at 12:10 pm to LSUFanHouston
Posted on 4/11/24 at 12:10 pm to LSUFanHouston
Does it make a difference if a client is paid via K-1 then? Since those are not typically released till March 15.
Posted on 4/11/24 at 1:15 pm to Shepherd88
quote:
Does it make a difference if a client is paid via K-1 then? Since those are not typically released till March 15.
If our firm is preparing the K-1s, then we can quickly drop that in when it's ready to go, as the systems are linked together.
If we don't prepare the K-1s, then the same date rules apply. We try to be flexible... if you send us all of your info on time and send us your K-1 on March 16, we can probably get it all finished. So we encourage, if you are just waiting on a K-1, send everything else first, and then forward the K-1 when you get it.
And then we have the clients who won't get a K-1 until August, so we get the rest of the info in, prep the return, drop in an estimate number for the K-1, then give them a tax estimate for 4/15 extension and see them in August to wrap up.
It's the ones that show up on April 5th with a mess and then want the return filed on time that get a quick nope.
This post was edited on 4/11/24 at 1:16 pm
Posted on 4/11/24 at 1:44 pm to LSUFanHouston
Totally understand that. I delivered all my stuff to my CPA in February with the remaining K-1 coming in on March 15. First year getting this and having to file state tax returns for all states. Rather complicated. Still waiting to hear something from my guy.
Not worried if we need to file an extension but really have no idea whether I owe anything extra or not, just like OP.
Not worried if we need to file an extension but really have no idea whether I owe anything extra or not, just like OP.
Posted on 4/11/24 at 4:01 pm to Shepherd88
quote:
that. I delivered all my stuff to my CPA in February with the remaining K-1 coming in on March 15. First year getting this and having to file state tax returns for all states. Rather complicated. Still waiting to hear something from my guy.
Not worried if we need to file an extension but really have no idea whether I owe anything extra or not, just like OP.
If it was me, given all that I would tell you when the K-1 came in, let's extend at least this first year, as all the state returns can get a little tricky the first time, but go ahead and pay in X now.
Posted on 4/12/24 at 2:30 pm to bigeasy225
Good news is, Congrats! You are making money!
Bad news, Uncle Sam gets his first.
Figure estimated taxes on money received with no withholdings and pay the fed and state percent you feel owed.
Always better to pay something and avoid penalties.
I'm waiting on my estimated Q1 tax vouchers now, they are due on the 15 as well.
Bad news, Uncle Sam gets his first.
Figure estimated taxes on money received with no withholdings and pay the fed and state percent you feel owed.
Always better to pay something and avoid penalties.
I'm waiting on my estimated Q1 tax vouchers now, they are due on the 15 as well.
Posted on 4/12/24 at 10:18 pm to LSUFanHouston
My CPA emailed today asking if I want him to make the (sizable) tax payment or if I would make the payment myself. Is this a normal request?
This is my first year working with him. In the past my CPAs have filed and I’ve just paid with an echeck. Can’t remember an accountant offering to do that before.
This is my first year working with him. In the past my CPAs have filed and I’ve just paid with an echeck. Can’t remember an accountant offering to do that before.
Posted on 4/12/24 at 10:52 pm to SaintsTiger
No CPA in the world is going to pay the tax for the client. He probably meant draft it from your account.
Posted on 4/13/24 at 7:30 am to Weagle25
I didn’t think he was asking to pay out of his own pocket.
Posted on 4/13/24 at 7:41 am to SaintsTiger
Well then what’s your question? Drafting from your account is very common.
Posted on 4/13/24 at 8:27 am to bigeasy225
quote:
Is this correct? If you file for an extension, would any money owed not be due until the new extension deadline?
4/15 is the deadline to pay. Actually there are 4 quarterly deadlines, 4/15 is just the last one of the year. The entire tax system is based on payments, the return just substantiates the accuracy. You can file years later without penalty unless you owe.
quote:
Do I need a new CPA?
No CPA can know the rules for you. And no cpa can approximate your variable income better than you, when did you provide everything? The more you put into this relationship, the more you will get out of it.
You are demonstrating very little knowledge of your tax situation, your CPAs time will go into explaining these things you can learn on your own, so it will be difficult for him or any other one to add value. No trying to insult you, CPAs are just too expensive for you to not understand this a couple days before the deadline.
Posted on 4/15/24 at 3:06 am to Weagle25
quote:
Those are estimated taxes that you pay quarterly. You have to pay 100% by April 15th.
With estimated taxes you avoid a penalty if you pay 90% of the current year's final number or 100% of the previous year's tax due whichever is lower by the 15th. It is shorthand for quarterly payers so as long as you pay 100% of the last year's total by the 15th you avoid any penalties but you could have a big check to cut about a month after your 3rd quarterly for the year. Been there done that but I knew it was coming.
IIRC withholdings payers don't have the 100% of last year to rely on I think they have to pay the 90% of the current year. Don't quote me or rely on that.
Somebody mentioned up above:
quote:
You pay an estimated number, if you overpay it goes towards next year.
If he over pays he will be due a refund just like if he had overplayed by withholdings. If he pays quarterly estimated taxes he can choose a refund, to apply the balance to next year's estimated taxes, or any combination of the two.
DO NOT TAKE TAX ADVICE OFF THE INTERNET!
To answer the OPs question his CPA can and should provide him with a number that he needs to pay to be penalty free.
There is a third way but I won't bother with it but the standard 2 ways to get an extension are to file a Form 4868 either by e-file or paper. The form's Part II will have a line for estimated 2023 tax liability, total 2023 payments, balance due and the amount you are paying.
The instructions for 4868 will contain this information:
quote:
Late Payment Penalty
The late payment penalty is usually ½ of 1% of any tax (other than
estimated tax) not paid by the regular due date of your return, which
is April 15, 2024, for most people. It’s charged for each month or
part of a month the tax is unpaid. The maximum penalty is 25%.
The late payment penalty won’t be charged if you can show
reasonable cause for not paying on time. Attach a statement to your
return fully explaining the reason. Don’t attach the statement to
Form 4868.
You’re considered to have reasonable cause for the period
covered by this automatic extension if both of the following
requirements have been met.
1. At least 90% of the total tax on your 2023 return is paid on or
before the regular due date of your return through withholding,
estimated tax payments, or payments made with Form 4868.
2. The remaining balance is paid with your return.
Posted on 4/15/24 at 6:02 am to bigeasy225
quote:
Shouldn’t my accountant tell me what that estimated number is though?
Depends if you got them enough info to determine an amount to pay in.
Posted on 4/15/24 at 9:52 am to Obtuse1
quote:
With estimated taxes you avoid a penalty if you pay 90% of the current year's final number or 100% of the previous year's tax due whichever is lower by the 15th. It is shorthand for quarterly payers so as long as you pay 100% of the last year's total by the 15th you avoid any penalties but you could have a big check to cut about a month after your 3rd quarterly for the year. Been there done that but I knew it was coming. IIRC withholdings payers don't have the 100% of last year to rely on I think they have to pay the 90% of the current year. Don't quote me or rely on that.
Not sure if I’m missing the point of your post, but the 90% thing refers to estimated tax underpayment penalties, not late payment/interest penalties, which is the consideration at extension time.
Posted on 4/15/24 at 12:31 pm to Obtuse1
quote:
With estimated taxes you avoid a penalty if you pay 90% of the current year's final number or 100% of the previous year's tax due whichever is lower by the 15th. It is shorthand for quarterly payers so as long as you pay 100% of the last year's total by the 15th you avoid any penalties but you could have a big check to cut about a month after your 3rd quarterly for the year. Been there done that but I knew it was coming.
Again, estimated taxes are different than the taxes you owe on your return on April 15th.
You owe 100% of your actual tax liability by April 15th whether you pay estimated taxes or just do withholdings. It doesn’t matter.
The estimated tax rule you are referring to is what you owe each quarter to avoid penalty.
quote:
IIRC withholdings payers don't have the 100% of last year to rely on I think they have to pay the 90% of the current year. Don't quote me or rely on that.
You don’t know what the frick you’re talking about so quit giving advice or correcting people who do know what they’re talking about.
There are not separate rules for people who withhold and people who pay estimated taxes. It’s just usually if all your income is withheld on, then you don’t have to worry about the rule.
The rule for estimated taxes is you have to pay 100% of prior year or 90% of current year (unless you have a high AGI then it’s 110% or 100%)
Popular
Back to top
Follow TigerDroppings for LSU Football News