Mommy Confessional

Tuesday, April 12, 2011

How Will The Government Shutdown Will Impact Your Tax Return

We're getting alot of questions about the government shutdown and how it will impact your tax return/refund. Alot of people have missconceptions and I hope this will help to clear up some "un-answered questions" you might have:

Q: Can I still file my tax return?A: Yes, you can continue to file your tax return during the shutdown.

Q: Can I still file electronically or do I have to send in a paper return?A: Yes, you can still file electronically. In fact, filing your return electronically is the safest, most secure, and most accurate way to file a tax return! All tax returns that are e-filed will continue to be processed and acknowledged by the IRS. Paper returns will be received but not processed and could be delayed.

Q: Will I still get my refund?A: If you filed your return electronically and requested a direct deposit, there will be no delay. However, if you filed a paper return, both your return and your refund will not be processed until the shutdown is over.

Q: Do I still have to file my return by April 18th or has the deadline been extended?A: Yes, you still will have to file your tax return by April 18th. And, if you file electronically there will be no delay in processing. But, please remember that filing an extension extends the time to file, but not the time to pay. If you believe that you're going to owe, pay as much as possible with an extension to reduce or avoid interest and penalties when you do file your return.

Q: What if I owe money?A: If you have a balance due, these payments are being processed and you are expected to pay that balance on or before the April 18th deadline in order to avoid penalties.

Q: Do I still need to pay my estimated tax payment?A: Yes, these payments are being processed and you will need to pay them before their due date in order to avoid penalties.

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