Does filing my s corp tax return late and filing my personal taxreturn on-time increase my chance of


S

superprimenova

My accountant filed my personal tax return this year on-time but he filed a automatic 6 month extension for my s corp. He was suppose to file it on April 11, 2013 but instead he forgot and filed it last year. Since the personal tax return has my data from K-1 but it was not filed when the personal tax return was filed, won't there be a mismatch and IRS will look at it because my s corp was filed later than the personal tax return?
 
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P

paulthomascpa

My accountant filed my personal tax return this year on-time
but he filed a automatic 6 month extension for my s corp. He
was suppose to file it on April 11, 2013 but instead he forgot
and filed it last year. Since the personal tax return has my
data from K-1 but it was not filed when the personal tax return
was filed, won't there be a mismatch and IRS will look at it
because my s corp was filed later than the personal tax return?


No. It may delay the processing of your personal return, more so if you're
claiming large pass through losses or credits, but it won't generate an
audit of either return.
 
R

remove ps

My accountant filed my personal tax return this year on-time but he
filed a automatic 6 month extension for my s corp. He was suppose to
file it on April 11, 2013 but instead he forgot and filed it last
year. Since the personal tax return has my data from K-1 but it was
not filed when the personal tax return was filed, won't there be a
mismatch and IRS will look at it because my s corp was filed later
than the personal tax return?
Yes, there will be a mismatch. The income reported on the K-1 will not
be reflected in your 1040 tax return, and in a few months the IRS
computers will detect this and you will receive a notice from the IRS
requesting the payment plus interest and penalty. So you should file
an amended return now and pay the additional tax along with the filing
of the S corp tax return -- in order to avoid additional
penalty/interest.

But if the 1120-S has a loss on it, then I'm not sure if the IRS will
calculate a notice giving you a refund. You should also file an
amended 1040-X showing the negative income on Schedule E, along with
other items such as charitable deductions if any, and you will get a
refund check from the IRS that includes interest.

So either way, you need to file a 1040-X. Don't forget the amended
state return as well.

What the tax preparer should have done is estimate income from the S
corp, file an extension of your personal return and pay the estimated
amount due along with the form, and then file the 1120-S on time, and
then file the 1040.

As the 1120-S was late, I think there is a late penalty of at least
$90. Your individiaul federal and state returns will also have
itnerest and penalty. Perhaps your tax preparer should pay these.
 
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S

superprimenova

won't there be a
Yes, there will be a mismatch. The income reported on the K-1 will not

be reflected in your 1040 tax return, and in a few months the IRS

computers will detect this and you will receive a notice from the IRS

requesting the payment plus interest and penalty. So you should file

an amended return now and pay the additional tax along with the filing

of the S corp tax return -- in order to avoid additional

penalty/interest.



But if the 1120-S has a loss on it, then I'm not sure if the IRS will

calculate a notice giving you a refund. You should also file an

amended 1040-X showing the negative income on Schedule E, along with

other items such as charitable deductions if any, and you will get a

refund check from the IRS that includes interest.



So either way, you need to file a 1040-X. Don't forget the amended

state return as well.



What the tax preparer should have done is estimate income from the S

corp, file an extension of your personal return and pay the estimated

amount due along with the form, and then file the 1120-S on time, and

then file the 1040.



As the 1120-S was late, I think there is a late penalty of at least

$90. Your individiaul federal and state returns will also have

itnerest and penalty. Perhaps your tax preparer should pay these.
 

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