What if you haven’t filed your tax return or an extension yet? What should you do? It is too late to file the extension form. In general, the answer is to complete and file that tax return with any money you owe as soon as you can!
Note: If you reside in certain counties in New Jersey, New York, and New Hampshire that were struck by severe storms and flooding April 14-18,2007, your filing due date may have been extended to June 25, 2007.
If you’re expecting a refund, there really is no penalty for filing late without an extension. The penalty for late filing is a percentage of the tax that you owe. Since you don’t owe any tax, there is no penalty. However, the sooner you file, the sooner you will get your refund. And don’t wait too long. If you don’t file your return within 3 years of the due date, you won’t get refund. The IRS gets to keep it.
If you owe money, a delay in filing may result in penalty and interest charges that could increase your tax bill by 25% or more. The penalties for late filing are more that the charges for paying late. It’s best to file the return with as much as you can afford of that balance due. Then set up a payment plan with the IRS.
Be sure to read Kiplinger’s Filing After April 17. Scroll down to "What If I Owe the IRS But Can’t Pay?"
Reasons to file soon regardless of refund or balance due:
1. If you are self-employed, you must file your return within 3 years of the due date in order to receive social security credits toward your retirement.
2. The time that the IRS has to audit your return starts with the later of the due date or the filing date of your return.
Related state tax return:
Don’t forget that your state often charges similar late filing and late payment fees. Check out: TurboTax’s State Tax Information.
For more information: