Ok I’m really tired but I wanna post this briefly before I hit the sack…
::The quick, quick version::
I still haven’t filed my taxes this year
They owe me money, I don’t owe them
Am I breaking the law?
Will I still get that ‘extra refund’ that everyone is talking about if I file now?
Thanks.
If you don’t owe money, you’re good to go, you won’t incur a penalty. But don’t put it off; those bastards are the wrong people to fuck with.
From what I’ve read, you won’t get the tax cut refund if you haven’t filed, but if you were to file it today, it would still be a long while before you got your refund.
Vis
WIthout filing for an extension, I just filed my 1999 taxes last Fraday, about 15 months late. No, there is no penalty IF THEY OWE YOU MONEY. If I owed them money, the penalty would be 25% (5% per month up to 25%) of the tax owed plus interest for 15 months.
I am a chronic procrastinator. A few years ago I let it go to 18 months late. The IRS notified all my bank accounts and brokerage accounts to implement “backup withholding” until I filed my return. It took me about 2 days to get it to them.
The “Perfect Master” has touched upon this issue:
http://www.straightdope.com/classics/a960405.html
His words should reassure you, although they are not flattering:
I’m not sure about the “extra” refund, but my (totally wild-ass) guess is that you need to file to get it.
No need to guess-at http://www.irs.gov/ind_info/apinfo/index.html the kind folks at the IRS clearly state that “Individuals who have not yet filed a tax return for 2000 will not get any advance payment check until the IRS processes that return.”
That advice is fine for a single wage earner. People with more complicates lives should not file very late returns. If you wait too long, the IRS will file for you under the authority of 26 USC 6020(b).
If Uncle Sam files for you, he has to use the best information available, but is not required to read your mind. If you sold stock, or a house, or pulled money out of an IRA or 401(k) account, a lot of revenue gets reported for you on various Forms 1099. You may not have income from the transactions, but there’s no way the IRS is going to know that unless you tell them by filing a tax return.
Even if your finances are uncomplicated, your life might not be. A married individual with a non-working spouse and 2 kids can make more than $25,000 without having a tax liability, assuming the couple files a joint return. If IRS files the return, his filing status will be “married, filing separately” (the IRS cannot make the joint return election on his behalf), so his standard deduction will be half the “married, filing jointly” deduction. He will get one exemption, not four. He won’t get the child tax credit or the earned income credit. Even if, like most Americans, he was grossly overwithheld, he will probably still have a net liability.
If the IRS files for him, he can file an amended return to change his filing status and exemptions. However, his return will be subject to greater scrutiny than if he had filed the right way to begin with. In addition, there is a small chance that the amended return will not be processed correctly or not be processed at all.
I just talked to my friend who is an accountant. She assures me that if you regularly get money back from the IRS, you only have to file every THREE years. On the third year you can file for all three. And they will pay you 8 percent interest a year compounded quarterly on the money they owe you from the previous years…