Refund Extension Question

[dstar]

I live in Texas, and for the first time in many years I am finally due a tax refund. WOO-HOO!

However..... my name is still attached to a refund my EX is still making payments on, so, I won't see this refund at all. The IRS will take my refund and apply it to the debt the EX is paying on. I've tried the 'innocent spouse' route, and do not qualify (for too many reasons to list).

The EX should have the outstanding tax debt paid by next April or May. I've gone ahead and filed an extension, as I do have a small business and need more time locating some documents.

I've been told by 'friends', that I can just not file the 2006 return until the EX has paid the debt next spring, the IRS won't fine me for late filing on a refund due to me. However, I was raised to fear the IRS no matter what, and just file.

Any thoughts or advice?

Thank you!

 

[LdiJ]

I live in Texas, and for the first time in many years I am finally due a tax refund. WOO-HOO!

However..... my name is still attached to a refund my EX is still making payments on, so, I won't see this refund at all. The IRS will take my refund and apply it to the debt the EX is paying on. I've tried the 'innocent spouse' route, and do not qualify (for too many reasons to list).

The EX should have the outstanding tax debt paid by next April or May. I've gone ahead and filed an extension, as I do have a small business and need more time locating some documents.

I've been told by 'friends', that I can just not file the 2006 return until the EX has paid the debt next spring, the IRS won't fine me for late filing on a refund due to me. However, I was raised to fear the IRS no matter what, and just file.

Any thoughts or advice?

Thank you!

Well, its true that you will not be penalized for late filing if you are due a refund. However, you need to be darned sure that you actually have a refund (in other words, prepare the taxes to be certain), and you need to realize that eventually your opportunity to get the refund will expire. For example, someone who wants to file a 2003 return, with a refund, won't get it at this point, because it has expired.