My fiance and I are business owners and his cousin is our accountant. He was supposed to file an extension for our 2006 taxes and I just found out that he never did! What can I do now?
2007-10-18 05:28:02 · 6 answers · asked by Nichole 2 in Business & Finance ➔ Taxes ➔ Other - Taxes
call the IRS
2007-10-18 05:35:09 · answer #1 · answered by richard t 7 · 0⤊ 2⤋
You can't file extension. Even if you have filed an extension, the taxes were due by April 15th. If you still owe the taxes, then you will also pay interest and penalty. If you are expecting a refund, then it is still OK. File your return soon.
This is from IRS publication 17: Your Federal Income Tax
Filing late. Failure-to-file
If you do not file your return by the due date (including extensions), you may have to pay a failure-to-file penalty. The penalty is usually 5% for each month or part of a month that a return is late, but not more than 25%. The penalty is based on the tax not paid by the due date (without regard to extensions).
Return over 60 days late.
If you file your return more than 60 days after the due date or extended due date, the minimum penalty is the smaller of $100 or 100% of the unpaid tax.
Exception.
You will not have to pay the penalty if you show that you failed to file on time because of reasonable cause and not because of willful neglect."
2007-10-22 00:53:48 · answer #2 · answered by MukatA 6 · 0⤊ 0⤋
You're 6 months and one day late! Find a new accountant who doesn't have his head up his dark side. Be prepared for about 30% in penalties and interest at the very least, over and above your tax liability.
FYI an extension is an extension of the time to file, NOT to pay the tax due. All taxes were due last April 17th. Penalties and interest for underpayment accrue from that date forward.
2007-10-18 09:27:55 · answer #3 · answered by Bostonian In MO 7 · 0⤊ 0⤋
No, you are way too late for an extension. Make sure your return gets prepared as soon as possible, and get it filed. If you owe anything, interest and penalties are adding on each month to what you originally owed. If you have a refund coming, you'll get it and there won't be any penalties.
And by the way, his cousin might call himself an accountant, but he sure isn't a very good one - find a new accountant.
2007-10-18 14:03:24 · answer #4 · answered by Judy 7 · 0⤊ 0⤋
It is too late. You should have filed an extension request last April 15 which would have been good until October 15.
2007-10-18 05:56:09 · answer #5 · answered by Anonymous · 2⤊ 0⤋
Call the IRS.They will tell you there will be a interest penalty for filling late. Then find a new CPA
2007-10-18 05:40:29 · answer #6 · answered by Anonymous · 0⤊ 1⤋