I think they owe me money. Will I still get it when I finally file? Will I be penalized for not filing earlier? Oh, I filed an extension, but haven't done anything since. Any idea how long the extension is good? Thank you in advance.
2006-07-11 11:16:07 · 3 answers · asked by danac210 5 in Business & Finance ➔ Other - Business & Finance
Oh boy, did your question hit home. The answers are surprisingly good (considering we're talking about the IRS). IF you are getting a refund, there is no penalty for filing late (within reason, I think it's something like 3 years - after that you forfeit the refund). I like to think of it as a forced savings account. They don't pay interest, but they'll hang on to it as long as you'll let them.
IF you owe money, then get on it quick because the penalties will add up quickly. Contrary to their bad reputation, I have found that they are pretty easy to work with; the one year I owed but didn't have the cash up front, I was able to go on an installment plan and the penalties weren't too harsh. Either way, it's time to bite the bullet, sit down and plow through it. Just remember, it's only money, nothing to get worked up about. With any luck you'll come out ahead! Hope this helps.
2006-07-11 11:34:58 · answer #1 · answered by MaCaptain 1 · 2⤊ 1⤋
First, the extension is good for 6 months.
Second, if you owe money, they will charge interest plus penalties, but it's not outrageous. If you can't pay the full tax amount, they will accept installment plans, within reason. But get started now, since they will keep charging interest until you have settled your tax bill.
If you are due a refund, they will refund the full amount (sorry, they don't pay you interest).
2006-07-11 12:10:45 · answer #2 · answered by Thomas F 3 · 0⤊ 0⤋
oh sh*t .....depends they will prolly just take out what u owe them from what u should be getting back but do it as sooooon as possible!
2006-07-11 11:20:17 · answer #3 · answered by ~jessi~ aka....mommy 5 · 0⤊ 0⤋