Taxpayer asks:
I didn’t file my taxes yet. I have my reasons. What I need to know is can I wait until next year now to do both? It doesn’t matter since it’s already late.
taxgirl says:
Noooo!
I get variations on this question a lot. And the answer is still noooooo. You should make an effort to get your tax return in as soon as possible.
Yes, you really should file by the due date in order to avoid interest and penalties. But if you miss the due date, don’t assume that the damage is already done and you have another year to figure it out. Penalties and interest accumulate based on the passage of time so the longer you wait, the more that you’ll owe.
If for some reason you are owed money (I’m guessing based on the tone of your email this isn’t the case), there is no penalty for filing late but you run the risk of eventually losing your refund if you don’t file within the statute of limitations. Every year, the IRS has hundreds of millions of dollars (this year, it was over a billion) of refunds at risk of being lost forever because taxpayers don’t file by the proper deadline.
So, here’s the bottom line: the world didn’t end because you didn’t file by the due date. But that’s not a license to continue not to file. Get your return prepared and filed as soon as possible – if you’re having difficulties (as it sounds like might be the case) or if you have questions, I strongly suggest contacting a tax professional to help you out.
Before you go: be sure to read my disclaimer. Remember, I’m a lawyer and we love disclaimers.
If you have a question, here’s how to Ask The Taxgirl.
I wonder what happens to all the refunds people never claim… do you know? I will claim your refunds, people!
Makes sense, usually when you fail to do something on time the penalties get worse over time. Like with a credit card bill. If you don’t pay it on time, you start paying interest. The longer you wait, the more interest you’re paying.
I didn’t realize that if you don’t file on time but don’t owe money that there is no penalty. I’m surprised the government wouldn’t jump at the chance to say “if you don’t file on time, even if you get a refund, we’ll be taking $50 of it because you were late!”
Further the statute of limitation is 3 years so if you have not filed prior returns, dont wait any longer.
There is a penalty for late filing, penalty for not depositing the taxes, interest on taxes due. Sometimes the IRS will waive penalties. Consult your tax adviser or your CPA.