Dear TaxGuru,

I did not file a timely extension for 2006 tax return. Now, I realise that I may have overpaid on my taxes and would have got a big tax refund. Will the IRS penalize me, and keep my refund??

I really need the money, as I have big medical expenses to pay. So, please advise me best course of action in order to secure my refund.

Thank you.

I have generally recommended that the client file the return as soon as possible. In your case, it appears that you are expecting a refund, therefore, in essence you have given the IRS an interest free loan to the extent of the amount of your refund over the extended period until the time you have filed.

The IRS is really saying "Thank you very much for the interest free loan". I don't expect that you would have any fines and penalties for the late filing. So, do not worry that any portion would be withheld and there would not be any additional delay over and above the normal period of filing a typical timely tax refund!

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