Today TaxMama® wants to give you a very last minute tax tip if you’re efiling your tax returns on the very last day of tax season.
Each year, I get a number of panicked questions from people who thought they had efiled their tax return. Only to find out later, sometimes MUCH later, that their tax return was rejected.
Did you know that when you click that magic button to send your tax return off to IRS and your state – that it sometimes gets rejected? It can take about 3-7 days to find out, depending on the state.
How can you protect yourself? Do one simple, little thing before efiling.
File an extension FIRST. By filing that extension, you gain 5-6 months to file your tax return.
This is an especially important strategy for tax pros who plan to go on vacation immediately after tax season ends. You can go with no worries.
Then, if you DO get a rejection for a tax return and miss the deadline to fix it, the return is on extension anyway, so it’s not considered late-filed. Any balances due won’t be subject to a 5% per month penalty – only half a percent (1/10th of 5%).
As a taxpayer, rather than a preparer, check back with your store-front tax preparer to make sure your tax return went through. Don’t worry about your online software – it will email you if you got a rejection. I am hearing from people who went to large chains that they weren’t notified about their rejected efiles. It doesn’t happen a lot, but when it does happen, the penalties can be very high!
And remember, you can find answers to all kinds of questions about efiling and other tax issues, free. Where? Where else? At www.TaxMama.com.[Note: If you were subscribed to the e-mailed TaxQuips, you’d be getting other exciting news and tips by e-mail, that never appear on the site. Please click on the join TaxMama.com link – it’s free!]
Please post all Comments and Replies in the new TaxQuips Forum .