There were some problems with my withholding in 2019 and didn’t want to liquidate a lot of high earning assets when I filed, I plowed a ton into the stock market on the pretty much exact right day.
So, I upped my withholding to an additional $300 every other week, and had a nice refund in 2020 to more than off-set the 2019 shortfall. But the IRS hasn’t processed my 2020, much less my 2021. They’ve had that money, almost since I filed my 2019 (probably 2 months would have put us straight) but I’m sure I’ll be penalized until they process 2020 and 2021.
A-holes.
You have 3 years to file after the due date. The two penalties are a percent of the tax owed. If you owe ZERO, it is a percentage of ZERO. Typically you”ll get a 1015 asking for the the form. Then 2 cycles later you’ll get an 1018. That one you don’t want to ignore. The IRS workerbee manual is online so anyone can see the precise steps for themselves. Very important to know your enemy’s battleplan.
Those later returns refunds won’t help the earlier one.
If you owed tax on 2019 your overpayment from 2020 should offset to the 2019 balance, but should be credited as of the due date of the 2020 return (04/15/2021). It won’t cancel out the 2019 interest and penalties but it will help. Sounds like you filed paper returns rather than filing electronically. It’s a national disgrace the IRS can’t process paper returns with anything approaching efficiency now.