cred65 Posted September 9, 2009 Report Share Posted September 9, 2009 However, the audit will not be complate by 9/15. Also, I expect audit adjustment for 2006,7. The corp will have a taxable loss for 2008 so no tax due. So my question is whether to file current year return or wait until audit is complete? TIA Quote Link to comment Share on other sites More sharing options...
JohnH Posted September 9, 2009 Report Share Posted September 9, 2009 I'd lean in the direction of filing based on current known info and then amending once the audit is complete. That way there can't be any rude surprises if the current year loss turns out not to be a loss after all the dust settles. Plus you get to charge for the amended return. Also, a late-filed return might weaken your agrument somewhat if you need to negotiate reduced penalties on the audit results (if any). Maybe others will offer differing views or valid reasons to wait. Quote Link to comment Share on other sites More sharing options...
TAXBILLY Posted September 9, 2009 Report Share Posted September 9, 2009 Why would your client want to pay a penalty for late filing? taxbilly Quote Link to comment Share on other sites More sharing options...
lsowers Posted September 9, 2009 Report Share Posted September 9, 2009 I struggled with the same situation this year. I decided to file based on the info I currently have and amend when the audit is complete. I also didn't want to risk any late filing penalties. Quote Link to comment Share on other sites More sharing options...
JohnH Posted September 9, 2009 Report Share Posted September 9, 2009 Taxbilly: I think the question was based on the idae that there's no need to worry about a late filing penalty if there's a loss, and that is correct since it's a C Corp (well, maybe $100 if it's over 60 days late, but that's all that's at stake) But there's always that possibility of a nasty surprise if the expected loss doesn't materialize or if a subsequent audit turns up a profit due to unallowed deductions, unreported income, etc. Quote Link to comment Share on other sites More sharing options...
michaelmars Posted September 10, 2009 Report Share Posted September 10, 2009 Depends on the audit issues, if there is a chance of preparer penalties then why repeat them in a 2008 return which might come back to bite you. if you are ok with your work them file Quote Link to comment Share on other sites More sharing options...
Wayne Brasch Posted September 10, 2009 Report Share Posted September 10, 2009 I would say to go ahead and file the return on or before September 15, 2009. There is no reason to give IRS any more ammunition with which to shoot at you and your client. Wayne Brasch Quote Link to comment Share on other sites More sharing options...
TAXBILLY Posted September 10, 2009 Report Share Posted September 10, 2009 I don't see why you wouldn't want to file the return on time if it has been prepared correctly. What excuse would be used if during the ongoing audit of the previous years' returns the agent says, "Oh by the way why wasn't the 2008 return filed?". The $100 penalty wouldn't apply anyway since the rule is the lesser of the tax due (presumably zero in this case) or $100. I would also be concerned about preparer penalties for advising a client not to file a return on time. taxbilly Quote Link to comment Share on other sites More sharing options...
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