My husband never filed our 2005 tax return, I guess he feels like he'll file both 05 and 06 taxes at the same time and have a bigger tax return that way. I worry that we may lose a portion of the 05 return because of his decision.
2006-12-16 23:11:03 · 7 answers · asked by scribbles_abc_mo 2 in Business & Finance ➔ Taxes ➔ United States
You should worry, he's going to get hit with late filing fees for the 2005 return. If you're getting a refund for 2005, it wont be as bad, but if you end up owing for 2005, you'll owe the penalty plus interest. It's a big mistake to not file on-time (or at least file an extension).
And even if you do end up getting a refund from your 2005 taxes, you should have filed it right away in 2006. You realize you gave the US government an interest free loan for a year now. Couldn't you have used that money yourself during 2006? Pay off some high interest credit cards (instant 18-30% return on your investment), invest it for retirement ($1,000 invested for 10 years at 8% will be around $4500), or heck, even put it in your emergency account earning 5% interest is still better then 0% then you got by letting the government keep it for the last year.
You should always file your taxes on time.
2006-12-17 00:51:54 · answer #1 · answered by sjoschko 3 · 1⤊ 0⤋
It depends. If you should have recieved a refund in 2005, the IRS won't charge you penalties and/or interest. If after you do your return, you owe a balance due, then you will need to pay that. Chances are they won't take your 2006 tax return automatically. If you haven't received a letter from the IRS asking why you haven't filed, then they haven't caught it yet. They will eventually, so don't put it off. I would file your 2005 at the same time you file your 2006. 2005 return will have to mailed to IRS. If you owe a balance due for 2005 but are receiving a refund for 2006, I suggest mailing them both in together and the IRS will offset that balance due with your 2006 refund. Good luck.
2006-12-17 10:36:42 · answer #2 · answered by Fool in the Rain 6 · 0⤊ 0⤋
You cannot combine tax years if that is what he is thinking. Furthermore, if he did not file an extension (which means filing should have been done by October 2006), then you may be hit with a penalty and/or finance charges from the IRS. Basically, file by April 15 of every year and you won't run into trouble.
2006-12-17 12:48:28 · answer #3 · answered by Country Boy 5 · 1⤊ 0⤋
If you deserve a refund for 2005, there will be no penatly. If you have to pay on 2005, there will be interest and penalties. When you file, make sure to use tax forms and tax tables for the proper year.
2006-12-17 13:11:41 · answer #4 · answered by crazydave 7 · 0⤊ 0⤋
This isn't recommended and isn't a good idea. But if you and he had a refund coming for last year, you'll still get your full refund and won't be penalized. If you owed money for last year but didn't pay it, then you would be penalized for the late filing.
Your total for the two years will be the same, unless you owed last year, in which case you'd end up with less because of the penalty.
If you had money coming back for last year but don't claim it until this year, then you just made the government an interest-free loan for the year.
2006-12-17 18:04:31 · answer #5 · answered by Judy 7 · 1⤊ 0⤋
If you are owed a refund from 2005, you are probably ok.
If you owe the IRS anything, it will cost you a lot.
2006-12-17 09:27:28 · answer #6 · answered by Gem 7 · 1⤊ 0⤋
You might did he file an Extension? If so then no you won't but if he did file then he should of sent it in by now.Good Luck
2006-12-17 07:20:33 · answer #7 · answered by sugarbdp1 6 · 0⤊ 1⤋