Federal income Tax Question

AsSiMiLaTeD · February 2010

So apparently my taxes for last year never got filed. I did my taxes online with TurboTax and submitted them online, and my refund was supposed to go in to my account via direct deposit.

Well it was a somewhat small amount so I never noticed when it didn't come through, out of sight out of mind I guess.

Fast forward to this year, I hop on the TurboTax website again to file my taxes for this year, and there's a message waiting there for me stating that my tax returns have been rejected and that I have to file via paper, something about a duplicate SSN?

I'm thinking 'That's wierd, I haven't filed them yet', and of course upon closer inspection I discover that this message is from LAST year.

So, am i screwed? Can I stil file my taxes from last year? Should I expect to be charged interest and penalties even though they owe me money, any chance I actually get the money the owe me from last year?

I've tried calling the IRS, but I've been on hold up to a couple hours with no luck. I'm trying to avoid paying legal fees to go see a tax lawyer, that seems overkill for my situation and I'd like to avoid that if possible.

I'm just looking for some input, curious if anyone here has any experience with this? I'll try the IRS phone number again later today.

steveinaz · February 2010

You need to get in contact with the IRS. I doubt there will be any penalty, since you were owed a return. You'll probably be re-filing a 1040-X (amended return) but I'm not 100% positive on that.

wutadumsn23 · February 2010

steveinaz wrote: »

You need to get in contact with the IRS. I doubt there will be any penalty, since you were owed a return. You'll probably be re-filing a 1040-X (amended return) but I'm not 100% positive on that.

+1, you never have to file a federal/state return if you are owed money, so you have nothing to worry about. Just do what steve said and contact the IRS.

-Jeff

Willow · February 2010

Up here, if you guys work the same way, the tax man doesn't care if they owe you $$. There is a penalty if you owe and don't file/pay.

steveinaz · February 2010

Jeff--

Not always, it depends on the state. In Missouri for instance, you still have to file a return, regardless. I was exempt from paying state tax in Mo when I was military, because I was out of the state for 9 or more months--but I still had to file a return. Of course this may have changed by now, but I would verify.

wutadumsn23 · February 2010

Hmmm, that is poopie Steve, sorry for the bad info OP. Was just going with my experience, I am Military and from CT. I didn't file a atate return for 6 years, until I learned I was not supposed to be paying state taxes at all. Don't ya know I could only go back 3 years, in trying to recoup my money, lol.

-Jeff

AsSiMiLaTeD · February 2010

We don't have an income tax here in Texas, the question is specifically about federal income tax, not sure if that changes things.

AsSiMiLaTeD · February 2010

Also, I've always been told that you have file taxes, even if you dont owe, but don't know if that's true

mhmacw · February 2010

if you processed through turbo tax theres a record of when you filed. that will cover your butt with the irs if you indeed needed to file last year. the free federal turbo tax deal is great but it seems well worth the 29 bucks to get the live support. i would imgine turbo tax will know exactly how to take care of this. good luck...after all, it is the irs! haha

coolsax · February 2010

I think if you file them late you'll be fine.. as previous posters said, just contact them or if you have a friend who does taxes, he could at least answer the questionf or you, but i don't think there is any penalty if you are owed money.. in fact when you file, you may get some interest on top of it since they've held on to "your" money for so long... its just like if you pay late, where you have to pay interest on the taxes, if they hold on to it most times they owe you interest on the amount of the return, that's what happened when my wife and I filed an amendment after we bought our house last year to get the tax credit. we got the full 8000, along with about 150 in interest.

heiney9 · February 2010

If you file electronically you should ALWAYS print out your confirmation and put it with the rest of your tax records. 1) you should have gotten an email alert from Turbo Tax stating your taxes were rejected 2) when accepted you get an electronic confirmation that they were accepted and are prompted to print or store it electronically with your return.

Check with a tax advisor or spend some time on the IRS website. All the info you ever needed about federal taxes is on the IRS site.

H9

Demiurge · February 2010

Call a tax professional or an accountant, not Club Polk....

AudioGenics · February 2010

rather than filing yourself using turbo tax
could you hire a certified public accountant tax specialist (CPA)
to file this year and amend last year ?

I'm sure a qualified accountant would know exact how to handle your issue.

It will certainly be alot less than a tax specialist attorney

mrbigbluelight · February 2010

You have to file both federal and state tax returns, whether you owe or they owe.

If you can show an innocent error on Turbotax, and you were owed money, there is no obvious attempt to defraud so you probably won't have to pay a penalty.

Otherwise, you don't file ..... you will owe a penalty.

Trust me on this one. :rolleyes:

AsSiMiLaTeD · February 2010

Demiurge wrote: »

Call a tax professional or an accountant, not Club Polk....

Thanks, I know that and even indicated as such in my original post. I was just curious if someone here had any knowledge on the matter.

TNRabbit · February 2010

As long as we don't see you piloting a plane into the IRS building next week, all is good~

xj4094dg · February 2010

Demiurge wrote: »

Call a tax professional or an accountant, not Club Polk....

Agreed...however its nice to know that most of Club Polk is just as clueless as me when it comes to taxes.;)

Jstas · February 2010

Ummm....I would call TurboTax and ask them WTF, not the IRS. Obviously the issues lies somewhere there. TurboTax has tax professionals on staff that can help you out. All you gotta do is call. Or click the online chat button.

I would also be more vigilant when it comes to finances.

As far as owing fees, you might get a penalty but the IRS can waive that penalty if they see fit. But an amended return is usually what's filed. The penalty is pretty much similar to a late fee on a credit card. You can be late all you want, as long as you file the taxes it won't count against you. You do have a statute of limitations on being late though but I'm not sure what it is.

Otherwise, call an accountant. You don't need to go to a lawyer. It's not a crime or anything and any accountant will know what you need to do and can do it for you. You could always go to a Jackson-Hewitt or H&R Block office as well. They can get it all taken care of for you too.

One thing though, it is a red flag for an audit. But if you don't itemize and claim all kinds of crazy stuff then an audit is a breeze. They just review. Sometimes you owe them money but if you just take the straight deductions, the IRS auditor often finds that they owe you money and will cut you a check right there on the spot.

WilliamM2 · February 2010

So, am i screwed? Can I stil file my taxes from last year? Should I expect to be charged interest and penalties even though they owe me money, any chance I actually get the money the owe me from last year?

I did something similar once, just had to file an amended return. Since they owed me a small refund, there was no penalties or interest due.

And yes, you will still get the refund. I got all of mine, plus 13 months of interest.

Demiurge · February 2010

AsSiMiLaTeD wrote: »

Thanks, I know that and even indicated as such in my original post. I was just curious if someone here had any knowledge on the matter.

Hmmm, I read that you called the IRS and have been on hold and don't want to pay for a lawyer. Call an accountant or tax preparer and get the straight ****. Even if there is a fee, and there might not be, it will be well worth the peace of mind and cheaper than a lawyer.

I'm sure someone here has the answer for you, but you can't verify the veracity of their claims. You'll probably just have to do an amendment, but why screw it up twice?

AsSiMiLaTeD · February 2010

Understood, I guess I'll check out that option then, was hoping to avoid any cost associated with this but that's what I get for not keeping better track of it.

mrbigbluelight · February 2010

WilliamM2 wrote: »

And yes, you will still get the refund. I got all of mine, plus 13 months of interest.

Alas, the feds don't pay interest anymore.

kn505 · February 2010

I dont think that you can file an amended return (form 1040X) since you had not filed the original return. I think you still can file your last year tax return now even though it is late. The IRS would accept your late returns up to 3 years, and the failure-to-file and failure-to-pay penalties apply if you owe them money. See the attached link for more details.

http://www.backtaxeshelp.com/faq/what-if-did-not-file-taxes.html