Accountant filed for an extension which was accepted by the IRS

[ryan_gz]

Hey guys, do you know the consequences if any of filing for an extension? What actually happens when an extension is accepted? Does that mean a draft version of your taxes is accepted, or simply that the IRS has confirmed that your accountant will have more time to complete your taxes?

My accountant is still debiting an estimated tax amount from my account tomorrow 4/17/2018 even though he hasn't finalized my taxes. He says that if we overpay a bit it will be credited back next year. Anyone have any experience with this?

Should we get a new accountant? He cost us $1500 last year for my wife and I filing jointly...

[aslan]

Don't worry Ryan. My accountant filed for an extension as well. Seems to happen every year. Perhaps it's partly my fault since I only submitted all of my tax documents to my accountant about a month before and I'm sure they are super busy this time of year.

With that said, agree it's kind of annoying to pay the IRS an estimate and not an exact amount. Adds more complexity the next year when you get a tax credit for what you overpaid.

I believe the extension filing being accepted by the IRS is just that, they are okay with a late filing and won't penalize you. However, that doesn't mean you don't pay. I still had to pay a round number, an estimate of what I owed. Accountant still hasn't filed the final personal tax return yet!