Missed extension
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  1. #1
    Senior Member Reputation points: 238302
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    Missed extension

    We have a lender who would like to give a merchant a loan, but they want the 2023 IRS xtension. They forgot to file for one! They're officially late (S Corp), and they were planning on filing in September, and they will just pay the fine rather than file it now, as it takes them 2 months to get everything together.

    What's the work-around? Can they get an extension if they were negligent in asking for one? They get the mulligan and get the fine removed if they ask nicely, but does anyone know if there's a solution here? I did put them in touch with an attorney, but maybe there's a simple fix that anyone here knows about?

  2. #2
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    Best advise is referring to a good tax accounting attorney that knows their industry and is local. The prospect may get advise/help because of the attorney's local connections.
    Kevin Henry
    VP-Business Development
    Seacoast Business Funding, a division of Seacoast Bank
    561-850-9346
    Kevin.Henry@SeacoastBF.com
    1880 N Congress Ave., Suite 404
    Boynton Beach, FL 33426

  3. #3
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    They can file an extension any time but will most likely get a small penalty. Better to file late than not at all either way penalty is the same. Not advice just something I have seen.

    If you do not file or extend the S corporation's return by the original due date, typically March 15 (unless another date due to holidays or weekend), it may owe a penalty.

  4. #4
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    They can file extension through https://www.taxact.com/?sc=200426114...E&gclsrc=aw.ds

    Then can get you the extension proof once the IRS accepts their request. Pretty simple nothing shady about doing it late it is actually keeping it above board. Good luck.
    Last edited by JustInCase; 05-24-2024 at 11:02 AM.

  5. #5
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    Not filing a return or extension which shows you "intend" to file can lead to issues not needed by any business. The IRS allows for late filings, payments, etc. they just fee you up that is their business. But what they do not tolerate is "Failure" to file a return and "Tax Evasion" both criminal offenses. So it is always best to file vs push things off. Most businesses extend due to missing tax forms simply. Businesses need to estimate their tax obligation or loss when filing extension. Most people don't realize they are better being honest filing with IRS and owing money instead of avoidance. They put tax payers on payment plans. Recent news says they are putting audits at front line. Nothing I say is advice just things I have learned over time. Whether they fund with you or not they should get that done.

  6. #6
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    We don't really care about the advise of why they did something wrong, it was definitely a mistake and they'll pay a cash fine for their mistake (maybe) and interest on their taxes that are due. However, I don't want the deal to be damaged, and I'm trying to find a work around. I have not found the ability yet online to file an extension after March 15. I'm waiting on a few tax attorneys and accountants to get back to me/them still.

  7. #7
    Senior Member Reputation points: 118833 ridextreme's Avatar
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    Maybe you should find out first if it will be ok when the underwriter sees the extension was just filed after the stip was asked for.

    In my experience with the type of merchants we deal with, most of the time they didn't "forget" to file the extension, I wouldn't be surprised if he wasn't even planning on filing period then when they're asked for it they say "I forgot to file". There are two things in life you just don't forget. Death and taxes.

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