Do I get the refund I'm due if I file early for an extension?

[hocoseba]

I'm ready to file my tax return, which has a sizeable refund that I'd like to get ASAP. However, I'm yet to receive a Schedule K-1 on behalf of partial ownership in a company that always applies for an extension of time to file (Form 4868) and consistently doesn't provide me the K-1 until the last possible extension day, October 15. This K-1 will increase my refund as the company is not yet profitable.

If I file form 4868 now (Feb 21), will the IRS immediately process and pay the refund presently due or will they push it out until my tax return is filed?

Or am I better off filing my tax return now, which I know will result in my present refund being processed and deposited ASAP, and then filing an amended return when I finally get the K-1?

[DoninGA · Accepted solution]

If you file the extension request using Form 4868 then nothing is sent to the IRS concerning any tax refund.  Only the 6 month extension for filing the actual tax return is being requested with the Form 4868.

It is your choice, you can file the tax return now and get any refund shown on your filing and then file an amended tax return when you have all your documents.  Or you can wait until you have all of your documents and file your complete tax return at a later date.

Note - If you are going to be receiving a tax refund with your completed filing there is no need to file for an extension.  There is no penalty for filing a tax return after the due date if the tax return being filed has a tax refund.  You have up to three years from the original due date of the return to file for a tax refund.  For tax year 2016 that would be on or before April 15, 2020.

[mggshot]

Simple answer, you'll get your refund when you file your return.