Think it's Too Late to File Taxes, Avoid a Penalty and Get Your Stimulus Check? Think Again

A significant number of taxpayers have either not filed their taxes yet or don't know they can still receive stimulus checks. Also, a recent update from the IRS gives welcome breathing room to those affected by floods, tornadoes and other natural disasters.

Stimulus checks and the 5.2 million people who haven't filed for them yet

Believe it or not, there are an estimated 5.2 million potential recipients of stimulus checks who have yet to file. Most are veterans, retirees or Social Security recipients, according to info found at the IRS website here: www.irs.gov/irs/article/0,,id=184063,00.html One potential issue is that many of these people don't normally have to file a tax return but they must do so this year (by Oct 15) in order to get their stimulus check. Not having experience in filing yearly, they may be confused or just don't understand the newest rules.

Because of the potential for misunderstanding and confusion, an extended October 15 deadline was put in place for the millions who have not yet filed or received a stimulus check.

A recent IRS update on June 26 extends filing deadlines for many affected by flooding and other natural disasters

According to a June 16 update at the IRS website, people who experienced severe stomrs and flooding in 10 states may have more time to get their quarterly estimates completed. The states affected are iowa, Indiana, Wisconsin, Arkansas, Colorado, Maine, Georgia, Mississippi, Missouri and Oklahoma.

People living in these states should not assume they will get an extension. There are specific rules and provisions. However, in some instances, self-employed people as well as retirees and some other business owners maybe able to have extra time to file taxes. Due dates could vary from state to state. To find out exact information for your area, you'll want to look here: www.irs.gov/newsroom/article/0,,id=108362,00.html or at the section of the site covering tax relief in disaster situations. It was updated on June 26.

Steps to take if you are eligible for a stimulus check but didn't file a tax return, assuming you didn't have to do so

1.Check out the appropriate IRS website listed above

2. The IRS national or local agencies will help walk you through the steps to file a return

3. They will also help you determine eligibility and stimulus check status.

4. Be aware that you'll need a proper Social Security number

5. Consider direct deposit option for faster receipt of your stimulus check

Steps to take if you live in one of the states affected by recent flooding or other natural disasters

1. Realize new updates may give you some breathing room in filing your quarterly tax returns

2. Check out the information and deadlines located at the IRS website

3. Contact the IRS if you have further questions

4. Know the proper contact numbers to call. To get the right forms, call 1-800-TAX-FORM (1-800-829-3676). If you have general questions, use the IRS toll-free number for general tax questions at (800) 829-1040.

Sources:
1. Internal Revenue Service, June 26 update, Tax Relief in Disaster situation: www.irs.gov/newsroom/article/0,,id=108362,00.html
2. Internal Revenue Service, Economic Stimulus Payment info for Veterans, retirees, Social Security recipients, June 19: www.irs.gov/irs/article/0,,id=184063,00.html