Refund Due.. Does the Deadline Matter?

[Chowdahead]

I have maybe half a dozen returns that are getting refunds and I don't have them high on my priority list because I have another dozen that will have tax due.

Does the April 15 deadline really matter to a taxpayer who is getting a refund? Acording to the IRS website, returns with a refund due must be filed within 3 years of the tax year filing date. And failure-to-file penalties are assesed on tax due returns.

So barring an unforseen audit or unmet chalenge to one of the refundable credits, these taxpayers should see no ill effect by filing a few days after the 15th, correct?

Stress is building....

[jasdlm]

I always file extensions anyway.

[RitaB]

Agree, get an extension, cause there is always that 1099-C that they thought you didn't need (that's not taxable, is it?), and the job they forgot about. Oh, and it wasn't my year to claim my kid after all...

[JohnH]

Yes, it matters. For the reasons stated above and others as well. No matter whose fault it may be if your initial estimate surprisingly turns into a balance due, the client will expect you to cough up the totally unnecessary FTF penalties.

And the client will be correct.

[ari]

my opinion...do the ones that you know have a balance due..that's what i'm doing

let's say you think someone is getting a refund, you don't do the return until ater the 15th, and they owe money

the penalty and interest is deminimis

[JohnH]

Very risky policy, unless you're extending them all.

[Chowdahead]

Thanks I will extend if necessary but hopefully not necessary since I am planning on working Sunday to get through it all.

[GeneInAlabama]

Extending is good insurance. It is easy and quick to do and won't hurt a thing if you do file on time, or even if the return is not filed at all or has already been filed by another preparer. Extend and file on time if you can, if you can't you have nothing to worry about.