If a person Fails to file his taxes, but would not have owed any money at the end of the year, can they still penalize you for not doing the paperwork if they would have owed you???
2006-10-20 17:30:03 · 8 answers · asked by ca_ruff 2 in Business & Finance ➔ Taxes ➔ United States
A person who is due a refund is not USUALLY penalized for late filing. If however the person owes back taxes, has a judgement against them etc, and failed to file to avoid repayment of the debt, penalties can be incurred.
I suggest filing a return even if no tax is due (refund) so that in years ahead when taxes are due, you are not audited on prior unfiled returns.
2006-10-20 17:39:58 · answer #1 · answered by Jen 5 · 0⤊ 0⤋
No, but if you are audited and it is found that you really did owe money (or, in other words, you owe more as a result of the audit), you would then be assessed the penalty for failing to file your tax return beginning with the due date (April 15th) until the date you actually do file. You can avoid this possibility by filing by the due date or filing an extension and filing your return by the date specified in the extension.
You also need to consider the deadline for receiving your refund, as Center of the Universe stated in her post.
2006-10-22 15:34:00 · answer #2 · answered by figment_usa 5 · 0⤊ 0⤋
If you are required to file a tax return, then you should file it. If you haven't done the paperwork, how do you know whether or not you owe any money? And if you know that you are due a refund, why not get it?
2006-10-26 22:32:56 · answer #3 · answered by Jonesy 1 · 0⤊ 0⤋
If you are owed a refund or had tax withheld you are required to file a return. File the return for the year in question and include a request for abatement of penalty for some good reason; death in family, sickness, yaddah. If you owe nothing you should have nothing to fear but fear itself.
2006-10-23 11:05:44 · answer #4 · answered by acmeraven 7 · 0⤊ 0⤋
take it like this...if he doesn't owe cause he has dependents..his dependents will be taken out of the tax..and then he'll owe..u still get penalized (cause u didn't file) and of course, there's interest...i know, kinda sucks huh...if he doesn't owe cause he paid all the taxes he should have paid (and he might even get some money back) mm i don't think they'llc are if u do them, but, u might still get penalized
2006-10-21 00:39:07 · answer #5 · answered by dorabell c 3 · 0⤊ 1⤋
Failure to file (whether you owe taxes or are due a refund) is illegal and you can be subject to prosecution.
2006-10-21 21:48:28 · answer #6 · answered by troythom 4 · 0⤊ 0⤋
no, the penalty is a percentage of what you owe them.
If they owe you, there is no penalty.
I've filed late plenty when they owed me--no penalty
BUT, if they owe you, you have only 3 years to file to get it back
2006-10-21 00:38:06 · answer #7 · answered by center of the universe 4 · 1⤊ 0⤋
how says you did not owe - You could be setting yourself up for a trip to the big house. you better talk to a tax person in janurary and see what they said.
2006-10-21 00:39:10 · answer #8 · answered by zqx357 5 · 0⤊ 0⤋