Back taxes -- request for extension question

[organic_sunshin]

What is the name of your state (only U.S. law)? PA

So...I'll admit up front that I am an idiot for being in this situation. But I have two years of back taxes that I need to get filed. For the first year, I actually made a payment based on my estimated tax liability while filing for an extension. If my calculations on my returns are correct, I overpaid by about $100. Unfortunately, my account transcript for that year doesn't show the extension request and so I'm not sure if it is legitimate to show the payment on my 1040 as a payment with a request for extension.

The reason it matters (or might matter) is that I am hoping to get an administrative penalty abatement and as I understand it, that will be for penalties for the first year in which I actually have a tax liability (maybe I'm wrong on this). So if I can show the payment on my 1040 from the first year, I can get the penalty abatement on the second year. (If that makes sense). So is there any hope that a 1040 with the payment shown (and thus a negative liability) will be accepted?

Also, there is a small amount left over -- can I carry that forward to the next tax year?

 

[LdiJ]

What is the name of your state (only U.S. law)? PA

So...I'll admit up front that I am an idiot for being in this situation. But I have two years of back taxes that I need to get filed. For the first year, I actually made a payment based on my estimated tax liability while filing for an extension. If my calculations on my returns are correct, I overpaid by about $100. Unfortunately, my account transcript for that year doesn't show the extension request and so I'm not sure if it is legitimate to show the payment on my 1040 as a payment with a request for extension.

The reason it matters (or might matter) is that I am hoping to get an administrative penalty abatement and as I understand it, that will be for penalties for the first year in which I actually have a tax liability (maybe I'm wrong on this). So if I can show the payment on my 1040 from the first year, I can get the penalty abatement on the second year. (If that makes sense). So is there any hope that a 1040 with the payment shown (and thus a negative liability) will be accepted?

Also, there is a small amount left over -- can I carry that forward to the next tax year?

You are not going to have a penalty for any year that you have a refund. Yes, the payment that you made with your extension should be included on your tax return. You actually made that payment. Yes, you can also push any refund for the first year, into a estimated tax payment for the second year. However, if you still owe money for the second year, you are going to still have some penalty for that one. The amount of the penalty is based on the amount of tax that you owe.

You might want so consider seeing a tax professional on this one. Generally you can get pretty decent fee discounts this time of year.

 

[Venetia Rose]

leading tax consultan

No point of thinking of an extension. The sooner, the better consult a leading tax consultant who can help you out. There are plenty of tax consulting firms like KPMG, EY, Deolitte etc. Choose the best one and avail the best service.