Hello!
I'm helping a friend file their 2008 tax return. They are self employed and filed for an extension in 2008. They made an estimated payment of $18,000 towards taxes due on April 15, 2009, but did not actually file any other paperwork. They have not received any letters or notifications from the IRS that their tax forms were not received - though they have moved several times.
I've calculated the additional taxes due (around $7,000) and in looking at various websites it looks like they also owe penalties (late file @ 25% (flat) and 4% monthly calculated from the extension due date in October).
When they file should they file the amount due and wait to receive a bill for the interest/fees or should they estimate the interest/fees and just pay it in total.
State taxes were also not filed for 2008, I've calculated them to be around $4,000 + penalties. Same question applies, should they late file the base amount and wait to be invoiced for the correct penalties/interest or should they pay it all.
Thanks for any/all help!
-shmk
I'm helping a friend file their 2008 tax return. They are self employed and filed for an extension in 2008. They made an estimated payment of $18,000 towards taxes due on April 15, 2009, but did not actually file any other paperwork. They have not received any letters or notifications from the IRS that their tax forms were not received - though they have moved several times.
I've calculated the additional taxes due (around $7,000) and in looking at various websites it looks like they also owe penalties (late file @ 25% (flat) and 4% monthly calculated from the extension due date in October).
When they file should they file the amount due and wait to receive a bill for the interest/fees or should they estimate the interest/fees and just pay it in total.
State taxes were also not filed for 2008, I've calculated them to be around $4,000 + penalties. Same question applies, should they late file the base amount and wait to be invoiced for the correct penalties/interest or should they pay it all.
Thanks for any/all help!
-shmk