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applying refund to next year's return when filing late returns

I recently turned in my 2018 return & am about to turn in my

2019 return. In the 2018 return I applied the refund to 2019 (because otherwise I would owe for 2019). However, what if they don't process the returns in order? If I apply a refund from 2018 to 2019, but then the IRS processes 2019 first, would I get hit with late fees & penalties for 2019? Should I hold on to my 2019 return until they process the 2018 return? I guess then I would forgo interest on the refund until I turn in the 2019 return. Thanks, Kevin
Reply to
mok99red
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If the returns are not processed in order, you will be assessed late fees & penalties (to use your language) for 2019. However, once 2018 is processed, any amounts you requested be applied to 2019 will be credited to your account and the penalties and interest will be recalculated. Eventually it will all work out.

I would not delay filing your 2019 tax return beyond October 15 unless you live in one of the federally declared disaster areas that have received further automatic deadline extensions. Should the IRS find something wrong with your 2018 filing, you don't want to risk a late filing penalty for 2019.

Ira Smilovitz, EA Leonia, NJ

Reply to
ira smilovitz

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