extending tax return after already filing

[Bri]

Accountant came to me this morning with an odd one -

Instead of e-filing for an extension on Sunday, she inadvertently e-filed the tax return itself. So she's all freaking out, because now our common client has a day to come up with his 2013 retirement plan contributions for himself and the staff.

I inquired why she couldn't just STILL file for an extension, either on paper or electronically, and that way the employer (sole prop) could still take until October 15 and use the extension to file a perhaps-amended return?

She mentioned that once you've filed, you can't then request an extension.

Anyone know the statute on that, of the top of their head? Thanks.

--Bri

[Lou S.]

She's right. Filing the return on time negates the extension. I'm sure I've read some tax cases on this but can't put my finger on any at the moment.

[shERPA]

CPA is right, there was a case a while back where IRS disallowed a deduction because the extension was invalid - extension was filed after the return was timely filed. Tough situation.

[PensionPro]

Is there a cite for this? Also why can the CPA not file the tax return and extension on the same day?

[Bri]

That was my sort of thinking - if she e-filed on Sunday, but the extension had gone out Friday (or, if her postage meter at least had Friday's date on it even though the mail had already been picked up), how would they ever verify the true order of events?

[K2retire]

I was taught that even with a valid extension filed in the proper order actually filing the return before the due date negated the extension. We always advise clients not to file their returns before April 16 if they want an extension of time for their retirement contribution.

[BG5150]

(totally noob question)

Can you not amend the tax form?

[shERPA]

Yes there is a cite for an extension not being valid if it was filed after the return was filed. No, I don't know it offhand and am not going to research it right now.

There may be one other hope for the CPA. Had the taxpayer already reviewed the return and authorized the CPA to file it electronically on their behalf? I think the taxpayer must sign a "Declaration of Taxpayer" form. If the taxpayer had not done so, then the CPA's inadvertent filing of the return may be equivalent to filing an unsigned return - not a valid filing. If this is the case then an extension filed afterwards is arguably still a valid extension as no valid filing of the return occurred.

Personally I'd rather not have to be the one to prove this to the IRS should they question the extension, the timing of the contribution or the deduction, but if there is nothing else left, it may be something to hang their hat on.

[LMOC]

Just amend the return.

[Trekker]

This may be the cite PLR 8336006, IRC Sec. 6081

I have not read it over again; just pulled from one of my very old files. Wanted to get this out to you in a hurry.