Monday, February 27, 2012

Filing a Return with No Tax Due or Refund Issues.

Q.  Now that I am no longer married, I am working on my own return. I find that I will not owe any taxes, and will not have a refund. Is there any point in filing a tax return?

A.  Usually I am not in favor or filing a tax return that is truly unnecessary. However, you mentioned that you are no longer married. I take it that you were recently divorced. If this is the case, there is one excellent reason to file a return, to start the statute of limitations running. Very occasionally I file returns for clients even when they have zero income to report. I do this especially in cases of divorce where I feel it important to establish a separate identity, especially if the marriage has been a long one, and there are possible innocent spousal issues. At least by filing a return, it does start the statute of limitations which then expires 3 years after the later of the due date of the return or the filing date. You didn't mention which state you are in, but you need to check with your state to clarify if filing with them is an issue. Good luck!

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