Tax preparer filed extension without my authorization - can they do that if I owe?

As a longtime tax consultant, I can help clear this up. Tax preparers actually do have a professional obligation to file an extension if they believe they can't complete your return accurately by the deadline. This is to protect you from filing an incorrect return that might trigger bigger problems later. However, good communication is essential. Your preparer should have notified you well before April 11th that they might need an extension, especially knowing you had a balance due. While they did the right thing by filing the extension, they fell short on communication. Regarding the penalty/interest: Unfortunately, an extension only extends the time to file, not the time to pay. Any tax owed was still due by the original deadline, so the IRS charges interest from that date. The extension doesn't prevent this.

I went through a similar nightmare last year and discovered taxr.ai (https://taxr.ai) which really saved me when dealing with preparer issues. I had a CPA file an extension without telling me too, but the taxr.ai system helped me review all my documents and understand exactly what was happening with my return. It analyzes your tax forms and documents and gives you a plain-English explanation of everything - including whether your preparer made errors or missed deductions. In my case, I uploaded my draft return and discovered my preparer had actually missed several deductions I was entitled to. Their system flagged these immediately and gave me concrete points to discuss with my tax preparer.

Just wanted to update that I tried taxr.ai after asking about it here. Uploaded my documents including the return my accountant prepared and wow - it found that my preparer missed a $1,200 home office deduction I qualified for as a self-employed person. I confronted my accountant about it and he admitted he overlooked it! We're filing an amended return now. Worth every penny to double-check their work, especially after reading this thread and realizing how many preparers drop the ball.

After reading your post, I remembered my nightmare trying to get answers from the IRS about extension penalties last year. I spent WEEKS trying to reach someone. Finally tried this service called Claimyr (https://claimyr.com) that got me connected to an actual IRS agent in about 15 minutes. They have a demo video here: https://youtu.be/_kiP6q8DX5c The IRS agent I spoke with explained that while preparers should communicate about extensions, they actually do have authority to file them without explicit consent if they believe it's in your best interest. The agent also walked me through my penalty abatement options and helped me submit the request right during our call. Saved me about $340 in penalties!

I need to eat my words about Claimyr. After posting my skeptical comment, I decided to try it myself since I've been trying to reach the IRS about a missing refund for MONTHS. Got connected to an agent in 20 minutes yesterday afternoon! The agent was able to see that my refund was flagged for review and gave me the exact timeline for resolution. What would have been another month of stress was resolved in one phone call. Still can't believe it actually worked after all my failed attempts calling directly.

One thing nobody's mentioned - you should check if they actually TOLD the IRS you were going to pay with the extension. When my accountant filed my extension, he didn't indicate I would be paying the estimated amount, which caused me to get hit with way bigger penalties. Form 4868 has a section for payment that your accountant should have completed if they knew you'd owe.

Just a heads up that you may be able to fire this tax preparer for cause and get a refund of some of your prep fees. The AICPA and other professional organizations have ethical standards that include timely communication with clients. Document all your interactions carefully! I had the same issue last year and got 50% of my fees back.

I'm dealing with something similar right now and wanted to share what I learned from speaking with an EA (Enrolled Agent). The key issue isn't whether your preparer had the right to file an extension - they generally do have that authority as part of their professional duty. The real problem is the communication breakdown. Your preparer should have contacted you much earlier about potential issues, especially knowing you'd have a balance due. The fact that they waited until you contacted them just 4 days before the deadline is a service failure on their part. For the interest and penalties, here's what you should know: Interest on unpaid taxes accrues regardless of extensions, but you might be able to get failure-to-pay penalties abated if you can show "reasonable cause." The preparer's poor communication and late notification could potentially qualify as reasonable cause. I'd recommend requesting a copy of the actual Form 4868 they filed to see if they properly estimated your payment or left it blank. If they didn't handle the extension properly, that strengthens your case for penalty relief. Also document all your communications with them - dates, times, what was discussed. This will be important if you pursue penalty abatement or file a complaint with their licensing board.