I havent filed my income taxes yet. I was wondering if I could hold off and file next year (2006 &2007 done at the same time) or do I lose money (due to me) the longer I wait.
Please advise.
2007-08-14 05:24:45 · 3 answers · asked by ★Banäna . Nightmärẹ★™ 7 in Business & Finance ➔ Taxes ➔ Other - Taxes
you don't lose any money, but you do miss out on being able to invest your refund, in either bank account, or stocks, mutual funds, whatever, or if you wanted to use your refund and go on a trip somewhere. Why not just file your 2006 return (you can still e-file up till October 2007), and get your refund now. Hopefully you know that you are owed a refund and don't owe the IRS. If you owe them you'll owe not only the tax, but also penalties and interest on top of that. And the longer you wait to file, the more the penalties and interest would be. Also, just to let you know, if you have a refund coming to you you only have 3 years from the due date of the return or extended due date if you filed for extensions to file the return and claim the refund. This means that for anyone who did not file an extension (or 2nd extension if after 8/15/07) for 2003 tax return, it's too late for them to file and claim the refund. The states work the same way as the federal does.
2007-08-14 05:35:59 · answer #1 · answered by Anonymous · 2⤊ 1⤋
It depends on whether or not you owe. If you owe money, then your penalties and interest are increasing each month, so yes you'll pay more. If you have a refund coming, there won't be any penalty for not filing until next year. But you'd still have to file two separate returns, one for each year, so waiting won't really gain you anything.
2007-08-14 06:43:29 · answer #2 · answered by Judy 7 · 1⤊ 0⤋
You will have to pay interest plus penalty. the longer you wait, it will accumulate more. You shouldn't hold on to it until next year.
2007-08-14 09:52:30 · answer #3 · answered by coolson205 2 · 0⤊ 1⤋