Important Logistics for Individual Extensions

When preparing extensions for individual income tax returns, practitioners should communicate with clients about the specifics used to prepare the extensions, and such communications should be in writing.  It is vital to tell clients about the estimates and assumptions that were used for missing items.  It is also vital to warn clients that the client could be subject to penalties and interest, if the client’s actual income ends up being higher than the estimated amount of income used for the purpose of the extensions.