IRS does not charge any penalties for filing your 1040 return late if you are due a refund, but don’t put off filing for too long. IRS has a three year statute of limitations on refunds, starting with the original due date of the return. This means that if you file after the three year statute has passed, IRS gets to keep the entirety of your refund!

There are two very specific exceptions to the rule.

If your refund was due to worthless securities or bad debt, the deadline is extended to seven years instead of three. If you are unable to manage your financial affairs due to physical and mental impairments, the limitation no longer applies.

If you are a couple years behind on filing your 1040 returns, Clergy Financial Resources can help. We offer tax preparation services for prior years as well as the current year. Visit our website at for more information.

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Clergy Financial Resources serves as a resource for clients to help analyze the complexity of clergy tax law, church payroll & HR issues. Our professionals are committed to helping clients stay informed about tax news, developments and trends in various specialty areas.

This article is intended to provide readers with guidance in tax matters. The article does not constitute, and should not be treated as professional advice regarding the use of any particular tax technique. Every effort has been made to assure the accuracy of the information. Clergy Financial Resources and the author do not assume responsibility for any individual’s reliance upon the information provided in the article. Readers should independently verify all information before applying it to a particular fact situation, and should independently determine the impact of any particular tax planning technique. If you are seeking legal advice, you are encouraged to consult an attorney.

For more information or if you need additional assistance, please use the contact information below.

Clergy Financial Resources
11214 86th Avenue N.
Maple Grove, MN 55369

Tel: (888) 421-0101 
Fax: (888) 876-5101


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