@Dawnpm here is how it works.
All the tax money is due by April 15. The extension doesn't change that. If it is later determined that you owe more than you paid as of April 15, there is interest charged from April 15 until the payment is received.
All the extension does it defer the due date of the paperwork. Normally that paperwork is due on April 15, and if you don't file (and owe), there is a 5% penalty of the amount you owe per month (and a partial month counts as a full month) for a maximum of 5 months. That ticking clock is delayed until October 15 if you file for the extension (which you did).
So sounds like it turned out that after the tax accountant completed the tax return, you still owed money. There is interest due on that money from April 15 until the money was received by the IRS (the postmark date is considered the 'received date' if you mailed the payment).
Since the accountant did not file the return by October 15, there is that 5% penalty times the amount due for it appears to be three months. The clock stops on the day the IRS is in receipt of your tax return, not the date they finally process it.
And 27 days processing in November, esp. if you mailed it, it not unusual for that time of year.
And it really doesn't affect the penalties in any event, as the "failure to pay" (interest) penalty stopped the day you made the payment and the "failure to file" penalty would have stopped the earlier of the date the payment was received or the tax return was received (since the failure to file penalty is 5% of the amount owed, and if you paid everything, there can't be a further penalty as there is no longer anything owed).
<<IRS sent us "refund " check s for these payments because return was not filed.>>
this is not accurate. The IRS does not send money back because someone has not filed. They keep the money until you file. In fact, if you are due a refund, they do not care if you ever file - and they keep the money! . 🙂
does that help?
