Filing an extension form makes sense when there is a balance due (along with paying an estimated due amount). However, if a person has refund due but is not able to file taxes by April 15th (April 17th this year), why does IRS require an extenison request? California allows automatic extension is no balance is due.
Bhoot Nath
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Actually nothing happens if they owe you. Like filing estimated tax vouchers, if you don't need them, or are willing to pay the rather minor penalty for underestimation, IRS is not going to jail you for not filing for an extension or not filing estimated tax. Nan, EA in LA
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So does the IRS. You only lose the use of your overpayment till the return gets filed and that overpayment is refunded. You also have just a few short years to file the return for a refund. After the third year, you can fiile all you like, but any overpayment will not get refunded. There are however, some credits that may not be valid on a return that gets filed late (ie: without an extension). Wherever you see the term "timely filed return (including extensions)" probably means that a return without an extension, filed May 1st, will get that credit, etc denied.
-- Paul Thomas, CPA snipped-for-privacy@bellsouth.net
You may also lose certain elections.
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