For 2023 Federal Tax I am owed a refund but I am unable to file on time
Do I need to request an extension?
When I google this, non-IRS websites say no, I don't need to file extension if I am owed a refund.
QUESTION: Where on IRS website does it say that if I am owed a refund, I don't need to file an extension
Thank you so much on shuch short notice!
Do I need to request an extension?
Yes. You can e-file form 4868, or mail a paper copy of it. The extension is automatic.
When I google this, non-IRS websites say no, I don't need to file extension if I am owed a refund.
The extension is to file, you are expected to pay with it. In your case, since you have no tax owed, you don't need to pay anything.
The penalty for filing late depends on the amounts of tax owed, so even without requesting an extension you won't owe any penalty. But it doesn't cost anything to file it. The IRS won't say that you don't need to file an extension if you're owed a refund because technically you're still required to file on time or file for an extension.
Consider the following...
You have partially competed the return and are confident that you will be getting a refund, but you decide to not file a return/extension request by April 15th, and just submit the forms when you have all the missing information.
The problem is that 1099s and W-2s connected to you have been sent to the IRS and state tax office. As some point after the deadline they will be attempting to determine if you should have filed a return. If the income they know about is over the required to file threshold they will be expecting a return.
The tax authority will then determine if you owe or are due a refund. While they do have income information, they might not have all the numbers that will reduce your income tax. They don't know about charitable contributions, they don't get IRA contribution info until May, they don't know about your property tax. So they take the safe route and assume that you are single and taking the standard deduction. Which means you might think that you are due a refund, but they disagree based on the numbers they have.
When will this catch up to you? I don't know. But to avoid the issue file for the extension, and estimate what you owe or the refund you are due. Don't leave it to the tax authorities.
