I fear my tax accountant will not file my taxes by Monday's deadline
May 15, 2021 2:31 PM Subscribe
I emailed my accountant a PDF of all my W2s on March 23, followed up with her that week and checked in 3 weeks ago. She said she would get to my taxes. Now she's not answering the phone. I've texted and emailed her kind messages, telling her that it's ok if she can't get them done -- I just need to know. No response.
I can scramble and do them myself, but I also don't want to risk double-filing. Is it possible that she will file them without my knowing? Does she need my signature to file them electronically? In the past we always had an in-person appointment but because of COVID, she wanted to handle it remotely, understandably. I know I'll be owing around $2-3,000 and am worried about the penalties of filing late. What should I do?
I can scramble and do them myself, but I also don't want to risk double-filing. Is it possible that she will file them without my knowing? Does she need my signature to file them electronically? In the past we always had an in-person appointment but because of COVID, she wanted to handle it remotely, understandably. I know I'll be owing around $2-3,000 and am worried about the penalties of filing late. What should I do?
Best answer: My understanding is that the penalties are for late payment more than late filing.
If you know you’ll owe around $3k you can electronically pay that amount (or $4k to be safe) via the IRS website anytime — even today. If you do that you don’t actually need to file a separate form as an extension; paying an estimate of 2020 taxes automatically takes care of that, according to the instructions on form 4868 (the extension form). I did the exact same thing yesterday.
Also note that state taxes may need to be handled similarly. The state’s Dept of Revenue website will probably have info.
posted by sesquipedalia at 2:54 PM on May 15, 2021 [4 favorites]
If you know you’ll owe around $3k you can electronically pay that amount (or $4k to be safe) via the IRS website anytime — even today. If you do that you don’t actually need to file a separate form as an extension; paying an estimate of 2020 taxes automatically takes care of that, according to the instructions on form 4868 (the extension form). I did the exact same thing yesterday.
Also note that state taxes may need to be handled similarly. The state’s Dept of Revenue website will probably have info.
posted by sesquipedalia at 2:54 PM on May 15, 2021 [4 favorites]
There are two kinds of penalties, failure to file and failure to pay. this page has information on both.
You will almost certainly need to sign something authorizing the preparer to file the return on your behalf. As others have suggested, you can make a payment at any time.
posted by Alensin at 3:34 PM on May 15, 2021 [1 favorite]
You will almost certainly need to sign something authorizing the preparer to file the return on your behalf. As others have suggested, you can make a payment at any time.
posted by Alensin at 3:34 PM on May 15, 2021 [1 favorite]
Best answer: You should file an extension with a payment. Inform her that you've done it because she'll need to include the payment on the tax return. You can do it online. Here's the website: https://www.irs.gov/forms-pubs/extension-of-time-to-file-your-tax-return
The extension is only for filing, not for payment. You should pay what you think you'll owe. If you overpay, you'll get a refund. If you underpay, the IRS will add 5% to the amount owed. (Penalties and interest grow over time.)
Yes, you have to sign the efile authorization forms before she can efile the tax returns. She can file an extension without your signature.
You should look for information about your state as well.
posted by meemzi at 3:47 PM on May 15, 2021 [3 favorites]
The extension is only for filing, not for payment. You should pay what you think you'll owe. If you overpay, you'll get a refund. If you underpay, the IRS will add 5% to the amount owed. (Penalties and interest grow over time.)
Yes, you have to sign the efile authorization forms before she can efile the tax returns. She can file an extension without your signature.
You should look for information about your state as well.
posted by meemzi at 3:47 PM on May 15, 2021 [3 favorites]
Just file Form 4868 and you'll be fine.
And pay what you think you owe and do the same for your state.
Then tell her you did this because there's a place on the forms for her to refer to previous payments made.
posted by slidell at 8:54 PM on May 15, 2021
And pay what you think you owe and do the same for your state.
Then tell her you did this because there's a place on the forms for her to refer to previous payments made.
posted by slidell at 8:54 PM on May 15, 2021
Best answer: After you follow the great advice here about paying now and getting an extension, find a new tax preparer. We have worked with tax preparers who behaved this way too. One triggered an audit by misclassifying things, and the other caused us to pay double what we owe. In retrospect, I wish we had paid better attention to he warning signs. Find someone organized and competent, and don't waste your time with unresponsive tax people.
posted by equipoise at 9:00 PM on May 15, 2021 [3 favorites]
posted by equipoise at 9:00 PM on May 15, 2021 [3 favorites]
I don't understand why people say to pay now. We filed extensions several years but didn't send money (although we did expect a refund so maybe that's why the accountant didn't tell us to send payment)
posted by TimHare at 10:37 PM on May 15, 2021
posted by TimHare at 10:37 PM on May 15, 2021
We filed extensions several years but didn't send money (although we did expect a refund
Right, exactly. The extension is an extension to FILE later, not to pay later. If you expected a refund, there would be no need to pay. You pay interest etc. when you don't pay on time. But if there was nothing for you to pay because you had already overpaid, then no need.
posted by slidell at 11:40 PM on May 15, 2021
Right, exactly. The extension is an extension to FILE later, not to pay later. If you expected a refund, there would be no need to pay. You pay interest etc. when you don't pay on time. But if there was nothing for you to pay because you had already overpaid, then no need.
posted by slidell at 11:40 PM on May 15, 2021
Kind of hinted at above in slidell's answer, but to be explicit - not all states automatically honor an extension filed with the IRS. Some, like Rhode Island, require you to also explicitly file an extension with their state agency. My accountant didn't realize that - on the plus side, her agency covered the penalties since it was her mistake.
posted by neilbert at 7:37 AM on May 16, 2021
posted by neilbert at 7:37 AM on May 16, 2021
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posted by prk60091 at 2:47 PM on May 15, 2021 [4 favorites]