Independent contractor, estimates, and an extension

[daisy]

Client received a 1099Misc. I was taught that you always had to pay estimates throughout the year, but she says she was told she didn't have to.

So, she didn't pay anything in 2006, she's under the assumption that she's going to owe $2,000 or $3,000, it was just a quick e-mail conversation, we'll actually be talking tomorrow, I told her, without seeing everything I really can't say, but just off the top of my head she's going to owe much more than that. She shouldn't have much to deduct, I know what her job was and she didn't have to pay for much out of her pocket, I bet she's going to give me gas receipts for commuting!

So, today she e-mailed me to let me know she's filing an extension and she would really like me to prepare her return after next week sometime.

I did tell her, if she owes, she's going to have to pay it with the ext. she said she will have to make payments because she doesn't have that much money.

So, my questions for you guys:

she will have to pay a penalty for not paying estimates, won't she?

Should she just send in whatever she can afford with the extension, and just keep paying monthly, and file the return when we can, and still just keep paying monthly? I have a few others who owe this year and they are just paying monthly as they can, but they all owe $1,200 or less, if she ends up owing $5,000, that may take her a couple of years to pay, can she still just send in monthly payments or at that point should she fill out a 9465?

This is a friend of mine, and I'd like to help her out however I can.

Thanks

[Janitor Bob]

Client received a 1099Misc. I was taught that you always had to pay estimates throughout the year, but she says she was told she didn't have to.

So, she didn't pay anything in 2006, she's under the assumption that she's going to owe $2,000 or $3,000, it was just a quick e-mail conversation, we'll actually be talking tomorrow, I told her, without seeing everything I really can't say, but just off the top of my head she's going to owe much more than that. She shouldn't have much to deduct, I know what her job was and she didn't have to pay for much out of her pocket, I bet she's going to give me gas receipts for commuting!

So, today she e-mailed me to let me know she's filing an extension and she would really like me to prepare her return after next week sometime.

I did tell her, if she owes, she's going to have to pay it with the ext. she said she will have to make payments because she doesn't have that much money.

So, my questions for you guys:

she will have to pay a penalty for not paying estimates, won't she?

Should she just send in whatever she can afford with the extension, and just keep paying monthly, and file the return when we can, and still just keep paying monthly? I have a few others who owe this year and they are just paying monthly as they can, but they all owe $1,200 or less, if she ends up owing $5,000, that may take her a couple of years to pay, can she still just send in monthly payments or at that point should she fill out a 9465?

This is a friend of mine, and I'd like to help her out however I can.

Thanks

She is not "required" to pay estimates....However if she did not, she may owe more than $1,000.00...In which case she may have to pay penalties. If she cannot pay full amount, yes, I would have file a request for payment plan. She should pay what she can with extension...include a letter explaining why full amount not paid