IRS Change in Extension Processing Makes E-Filing That Extension Critical

The IRS has changed the processing of extensions this year.   Consequently, it is crucial to electronically file as many as possible. Filing by paper may result in delayed refunds or improper penalty assessments.

If it is necessary to send on paper, send each paper extension in a separate envelope. WHY?   When you send a group many times only the top one is stamped as the received date – the postmark on the extension. The rest are all stapled together and sometimes not even processed. Or,  they do not have the stamp of the postmark date and they are not considered timely filed.

The campus could take up to 6 weeks to process an extension, and it will not show up on the transcript until processed.  With that time delay, it is helpful to have the acknowledgement of an e-filed extension. 

With the delay in processing of the extensions, remember if you file a return within that 6 week timeframe, it may not show the extension on the module, and your client could get a penalty for filing late if there is a balance due.  This will also have an impact on refund returns if they are later picked up for audit, a balance due results, and the extension was not processed properly. 

Bottom line: Do not send extension requests in a group and always e-file them if possible.