When no with-holding took place which needs a demand for refund, why bother to file zero? - why attract even the minor hassle of a Frivolous Penalty notice, when nothing stands to be gained?
It's a good question, and many Zedeads don't. There is no law requiring anyone to file, and if the IRS should enquire how it was they heard nothing from you, ready answers exist.
If that response should lead to more hassle than you care to encounter, nothing at all prevents a zero-filing at that time. No interest will be due, since no tax is ever due.
The Basic Tool Set is needed for a proper understanding of this as of all questions indexed here.
Audiotape Series 5 at Tape 2 Side 2 summarizes the purpose of using the Zero Return, and shows how to respond if one does not use it (there being no refund to claim) and then receives a letter enquiring why not.
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