Benefits to filing Form 7004 - extension for 3520A

CdnAmerican · Post by **CdnAmerican** » Thu Jan 31, 2013 2:31 pm

Last year I did my 3520/3520A on time for my RESP. I made a basic error in a couple of the forms which eventually got fixed, but not before getting a nasty $10K threatening letter.

I am filing these again on time this year. My question is,

- Is there any benefit to filing Form 7004 in this situation? My thought is that if I make a bonehead mistake on the 3520A, then having the extension will buy me a bit of time to be in compliance.

- Second question - is there any downside to doing this?

The best strategy, of course, is to do the 3520/3520A correct the first time. That's my plan, but want to have a backup plan in case I make a dumb mistake.

Thanks!

nelsona · Post by **nelsona** » Thu Jan 31, 2013 3:31 pm

Filing the extension does not give you more time to file an ammendment. Once you file the form, the extension is over.

You need to file those forms and let IRS question them. For you to hold them in your hands for an extra 6 months in the hope of finding your errors is pointless.

CdnAmerican · Post by **CdnAmerican** » Thu Jan 31, 2013 3:37 pm

Thanks nelsona - that makes sense. My thought was to file the forms on time anyway, but to then have some extra time in case the IRS found a mistake. But, if the extension is then moot once the form is filed, then it wouldn't help much.