What to expect when your tax returns are lost?

[PrincessMommy]

I'm wondering what we can expect.

 

My YA daughter filed her taxes back in late march.  She was due to get back nearly $1000.   It's now July and they still haven't come.  She went to the website where you can check on refunds https://www.irs.gov/refunds

 

But, they have no record that she filed!  The kicker is she forgot to make copies of her return before she sent it in. :blush:

 

how does one prove that they sent in their taxes for a refund when they don't have any proof?  What can she expect?  Anybody else have this happen? 

[regentrude]

I would simply file again. And this time electronically, not on paper!

[Spryte]

I would file again, electronically, too.

 

Being late - it probably won't be a big deal, she's owed a refund, so no penalties, I think.

 

If she/you ever mail again - do it at the PO, and get return receipt.

[marbel]

Yeah, I would file again and keep records/copies of everything.   She may have to pay a late fee.  (I had to do that once, years ago.  I don't remember the exact circumstances.)

 

The good news is she will never forget to keep copies again. 

 

BTW when we have mailed our returns (I don't think we can file state return electronically) we always send certified/return receipt, so we have proof that we file on time. 

[J-rap]

I don't think there's anything to do but to do it again.  Bummer!  If she does it by hand, be sure she makes copies this time, and also get a tracking number.

 

If there's any penalty, it'll be very small.  

[PrincessMommy]

Thanks everyone.  That's what we suggested but she's worried about the penalty.  Since we'd never run into this, I wasn't sure what to expect.  I think she's a bit frozen in fear.  Your responses will help alleviate that.  Thanks!!

 

[regentrude]

Thanks everyone.  That's what we suggested but she's worried about the penalty.  Since we'd never run into this, I wasn't sure what to expect.  I think she's a bit frozen in fear.  Your responses will help alleviate that.  Thanks!!

 

She might also see whether she can adjust her withholdings this year and tailor it so that she pays closer to the actual amount she owes. Giving the IRS an interest free loan of $1,000 through the year and then getting a refund is not an effective strategy.

[PrincessMommy]

She might also see whether she can adjust her withholdings this year and tailor it so that she pays closer to the actual amount she owes. Giving the IRS an interest free loan of $1,000 through the year and then getting a refund is not an effective strategy.

 

the problem was with her former employer (one of many problems she had with them).  That was hopefully fixed with her new one. 

[LucyStoner]

I would file again, electronically, too.

 

Being late - it probably won't be a big deal, she's owed a refund, so no penalties, I think.

 

If she/you ever mail again - do it at the PO, and get return receipt.

You are correct. If she is due a refund there is no penalty for filing late. If she doesn't file within 3 years though, she will lose the refund.

 

I definitely encourage online filing. She can probably do it for free if she doesn't have a high income.

[LucyStoner]

Thanks everyone. That's what we suggested but she's worried about the penalty. Since we'd never run into this, I wasn't sure what to expect. I think she's a bit frozen in fear. Your responses will help alleviate that. Thanks!!

There is no penalty for filing late when you are due a refund. If she owed, she'd pay a penalty and interest. That's not generally the case for young adults.

[Lanny]

Her first mistake, and the one you inquired about, is because she did not eFile.  I did that, Free, for my 2015 Federal return, which included a Schedule C form.  This year, for the first time, I used http://www.freetaxusa.com/         For the past 6 or 8 years approximately, I had used TaxAct.com, first for Free, and then their Deluxe service, but to my astonishment, there was a huge increase in their Fee this year.  I found FreeTaxUSA in an article on About.com and I plan to use that again next year.

 

I do not remember how long it took, but from the time I submitted my Federal return for 2015 with FreeTaxUSA.com until I received the CONFIRMATION THE I.R.S. had accepted my return, I think it was approximately 30 or 60 minutes. That was on June 15, 2016 (we live overseas and Overseas Americans have an automatic 60 day Extension).

 

I do not have a Printer, but my DD has one and she printed out two (2) copies of my return and the Confirmation page. One for me and one for the Accountants who do my Colombian return.  

 

The second mistake your DD made is that she had Huge Over Withholding and is looking for a $1000 refund.  That makes her an excellent candidate to be a crime victim. Many people go to file their Federal Income Tax return, so that can get a huge refund like your DD, only to find that someone else has already filed a return for them and that someone else has already received their refund.

 

Your issue at this time is that your DD needs to file Late. If she is a low income person, I suspect that the I.R.S. will not charge Penalty or Interest on a late payment, because she is due for a huge refund.   

[3 ladybugs]

I don't know that this would make you feel better but we filed a state return back in March and have yet to get the refund. They acknowledge they got it and we had it all in order, but they refuse to issue a refund. I am to call them in 6 weeks if we are still waiting.

 

(((Hugs))) I hope she gets it figured out soon!

[LucyStoner]

The second mistake your DD made is that she had Huge Over Withholding and is looking for a $1000 refund. That makes her an excellent candidate to be a crime victim. Many people go to file their Federal Income Tax return, so that can get a huge refund like your DD, only to find that someone else has already filed a return for

.

.

If she is a low income person, I suspect that the I.R.S. will not charge Penalty or Interest on a late payment, because she is due for a huge refund.

1. People who commit refund fraud rarely know if any person they are filing a fake return for is due a refund. Filing early and electronically is a way to reduce the risk this happens to you but being due a refund at all does not dramatically affect your return. We allow people to file before employers have to transmit their payroll information for year employee to the IRS so those first e-filed reruns can be approved and processed before the IRS has anything to check it against. All someone needs to commit refund fraud is your social security number. Also, as some refunds include refundable credits, it is not always possible to match up withholding with your ur tax liability on the nose.

 

2. The IRS doesn't exempt low wage workers from penalties. Filing late is penalty free for ANYONE who is owed a refund. I could make a million a year, file late and not owe a penalty so long as I am due any kind of refund. I could make next to nothing, file late and owe a penalty and interest if I was supposed to pay that year.