USA Filing for Extension?


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I chose to file for an extension simply because I wasn't sure how to file and had nearly 0 income for the year (less than $2000 from a job that laid us off soon as we all started). I lived off savings and have been starting a business most off 2013.

My questions is, why do I need to file at all and what will happen if I do not?

Its not a matter of NOT paying taxes and if I DID owe then won't I just have penalty and interest to pay?

Thank you for your opinion and thoughts.
 
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If you have a legitimate loss from your business (Schedule C?) for the year, you should file to establish a net operating loss carryover (or carryback if you have income in the prior two years). This way you can offset future income with the loss.

Also, if you were an employee and were issued a W-2, you want to file to claim the withholding.
 
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Samir

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If you don't owe anything or aren't due a refund, there isn't a penalty or interest as far as I know.

But if you do owe, you will be hit with failure to file and failure to pay penalties. Better to pay something if you aren't sure because then you will either get it back or it will help to significantly reduce penalties for failure to pay (or even eliminate them if you overpay).
 

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