Should 2005 1040 be filed? Easy question...

[miatax]

Hi everyone!

I have a quick question:

An employee of a friend of mine made $1,350 in 2005 - never filed a tax return because he didn't need to. Employer withheld $135. Will he be penalized if he files a return now for 2005 to get that money back? Also, is it possible to claim the EIC as well?

Let me know.

Thanks!

Monica

[indyscott]

refund claims must be made within two years of when the tax was paid, or within three years of when the return for that year was filed, (or the due date for the return) I think your friend has waited to long. The money reverts to the general treasury.

[lsowers]

They have until 4/15/2009 (3 yrs from due date of return) to file the return to get the refund.

You don't give enough info for EIC, but it is a possibility.

[miatax]

Thanks! Also, what are the late fees if filing 1 week late for the following:

2007 Tax due = $1850

2007 Tax Witheld = $2700

Refund = $850

Also, for the request of refund for 2005, do I need to prepare a regular 1040 with an additional form?

Thx..

[OldJack]

I agree with the 4/15/09 deadline for refund as the rule is 3 years from date return considered filed or two years from date the tax was paid, whichever is LATER. (2007 Quickfinder 1040, page 16-1)

edit: On second thought you said the return for the year was not filed. The IRS might consider that fact if you actually were required to file and didn't. In that case it would be the 2 years from the time the tax was paid and you would be too late.

[miatax]

Old Jack:

Issue 1:

2005 YEAR: Now that I know he is in time for the refund for 2005 for which he did not have to file a return, does he file a regular 1040 or does he need to file something in addition to this? Will he be penalized for filing late EVEN if he was NOT required to file for 2005 and the sole reason for filing is to get back his wittholding? Does he still qualify for the EIC due to late filing of the return?

Issue2:

2007 YEAR: He has a filing requirement but he just didn't file on time. For 2007 the facts are as stated before your post above. What are the penalties for filing today - 1 week after the deadline for filing considering he is getting a refund.

Monica

[Don in Upstate NY]

Issue 1:

2005 YEAR: Now that I know he is in time for the refund for 2005 for which he did not have to file a return, does he file a regular 1040 or does he need to file something in addition to this? Will he be penalized for filing late EVEN if he was NOT required to file for 2005 and the sole reason for filing is to get back his wittholding? Does he still qualify for the EIC due to late filing of the return?

Just the regular 2005 1040 (and the EIC form if he needs it.) No penalty for filing late as long as you get a refund. EIC if he qualifies - either has a qualifying child or is age 25 thru 64.

Issue2:

2007 YEAR: He has a filing requirement but he just didn't file on time. For 2007 the facts are as stated before your post above. What are the penalties for filing today - 1 week after the deadline for filing considering he is getting a refund.

No penalty. (Except perhaps his stimulus payment may be issued later than originally scheduled.)

[miatax]

Thank you guys!!!