AHGatto, CPA wrote:

- quote -

I think you will need to get the IRS to grant the late filed
elections to have any chance. Section 408(k) specifically
indicates that the contribution must be made by the due
date, including extensions. The IRS's position has always
been that they have no authority to waive *code* imposed
deadlines.

However, the granting of extensions are governed by
regulations--and the IRS does agree they have the authority
to waive those dates.

The big issue will be to get the IRS representatives to
understanding that merely waiving the late filing penalty
(which they have the authority to do) won't be enough--you
need the extension to be granted.

The bad news is that I suspect you may not get an answer
until *after* October 15. As well, missed filing deadlines
are not something that normally the IRS will treat as being
due to "reasonable cause" just because the professional
didn't do it (the theory is you knew the date and were
responsible for assuring it really got filed).

--
Ed Zollars, CPA
Phoenix, Arizona

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

AHGatto, CPA wrote:

- quote -

As to the returns themselves, you can hopefully establish
"reasonable cause" for late filing in spite of the fact that
secondary extensions weren't filed. Whether you can stretch
that to cover the SEP, I kind of doubt. But it might be
worth a try. Seems like the best way to negotiate this would
be if all the returns in question are COMPLETED and ready to
file.

MTW

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

I am a CPA and just picked up new clients. Their former CPA
filed first extensions for their LLC and individual returns
and then went missing (no contact, won't return telephone
calls to home, disconnected cell phone, etc) and he failed
to file a 7/15 extension for their LLC return and did not
file 8/15 extensions for their individual return. Clients
realized this on 8/18 and tried to file for extensions which
were denied because they were not timely filed. Bigger issue
than the late filing penalties is client has not funded
their 2003 SEP-IRA because they generally extend to October.
Any ideas how to save their SEP-IRA deduction for 2003. My
feeling is that I should first try to verbally work with the
IRS to see if we can get them to grant the late filed
extensions based on a hardship. Not sure it will work but
what other options are available?

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->