Interest & Penalties

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StumpedCPA

Posted 4/22/2010 3:22:25 PM

Member

Group: Forum Members
Last Login: 4/23/2010 9:50:51 AM
Posts: 1, Visits: 2

Our office extended a 706 filing for the first to die and filed the extension Form 4768 without checking the box at Part III as we did not intend to pay tax with the 706 of the first to die. The survivor died subsequent to our extension and we our now compelled to file the a taxable return for the first to die.

My questions is whether or not the payment made with the first to die's 706 will be subject to late payment penalties or interest. Can anyone help with this?

Thank you in advance!

Post #888

Mary Kay Foss

Posted 4/22/2010 3:41:54 PM

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Group: Forum Members
Last Login: 3/12/2011 12:58:57 PM
Posts: 147, Visits: 823

In the good old days (when we filed Form 706 in Ogden), I was able once to call Ogden and send in a new extension form requesting additional time to pay when the client failed to send in a payment as large as we'd shown on the return. I was told at that time to never extend a return without asking for additional time to pay, just in case.

You would definitely owe interest from the original due date. You may be able to call Cincinnati and get someone on the phone who can help. I've called on other issues and they'll tell you as much as they can without having a POA on file. The phone number I have is 1.866.699-4083. You could also call Kyle Martin with IRS - he speaks to a lot of groups so he's a natural contact person. His number is 510.637.4549.

Good luck!

There is a new estate planning forum that you're supposed to be directed to. If you have this one in your "favorite places" it will be going away soon. Check the CalCPA website to be linked to the new forum.

Mary Kay Foss

Post #889