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Posted by Pats Fan on August 21, 2007, 11:53 pm
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Just giving this a shot.
I have a client who wants to look back as many years as
possible for potentially amending. I know that if one owes,
that will always be due. But this client owes to the IRS
about $850 for the Year 2003. Based on the language from the
1040x Instructions,"3 years after the date you filed the
original return or within 2 years after the date you paid
the tax, whichever is later" it seems legally that this
client still has the right to file for a credit for the Year
2003. (Yet intuitively I feel that I am reading this
incorrectly.
Can someone clarify this for me?
Thanks.
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Posted by L K Williams on August 22, 2007, 4:38 pm
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> Just giving this a shot.
>
> I have a client who wants to look back as many years as
> possible for potentially amending. I know that if one owes,
> that will always be due. But this client owes to the IRS
> about $850 for the Year 2003. Based on the language from the
> 1040x Instructions,"3 years after the date you filed the
> original return or within 2 years after the date you paid
> the tax, whichever is later" it seems legally that this
> client still has the right to file for a credit for the Year
> 2003. (Yet intuitively I feel that I am reading this
> incorrectly.
>
> Can someone clarify this for me?
You are wrong about always owing a balance due. The three
year statute of limitations applies to both the IRS and to
the taxpayer. Since you are talking about amending returns,
I must assume that returns were filed.
The 2003 return was due in April 2004. Three years later is
April 2007. Thus, 2003 is a closed year, whether you are
talking a refund or an additional balance due.
Lanny K. Williams, CPA
Nawarat, Williams & Co., Ltd.
Income Tax Services for Expatriate Americans
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by Mike Wellman on August 22, 2007, 4:38 pm
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> Just giving this a shot.
>
> I have a client who wants to look back as many years as
> possible for potentially amending. I know that if one owes,
> that will always be due. But this client owes to the IRS
> about $850 for the Year 2003. Based on the language from the
> 1040x Instructions,"3 years after the date you filed the
> original return or within 2 years after the date you paid
> the tax, whichever is later" it seems legally that this
> client still has the right to file for a credit for the Year
> 2003. (Yet intuitively I feel that I am reading this
> incorrectly.
2003 is closed for a refund unless it was extended to
10/15/04.
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by Paul Thomas, CPA on August 22, 2007, 4:38 pm
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> I have a client who wants to look back as many years as
> possible for potentially amending. I know that if one owes,
> that will always be due. But this client owes to the IRS
> about $850 for the Year 2003.
He can file an amended return and pay at any time.
The sooner the better to minimize interest and penalties (if any).
> Based on the language from the 1040x Instructions,
> "3 years after the date you filed the original return or
> within 2 years after the date you paid the tax, whichever
> is later" it seems legally that this client still has the
> right to file for a credit for the Year 2003.
If there is additional income, and maybe also a credit that
is due to him (ie: not claimed on the original return), then
by all means, file for the credit as well. While any
refundable credit won't be refunded based on statute limits,
it can't hurt to put it in there to reduce any liability.
--
Paul A. Thomas, CPA
Athens, Georgia
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by Phil Marti on August 22, 2007, 4:38 pm
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> I have a client who wants to look back as many years as
> possible for potentially amending. I know that if one owes,
> that will always be due. But this client owes to the IRS
> about $850 for the Year 2003. Based on the language from the
> 1040x Instructions,"3 years after the date you filed the
> original return or within 2 years after the date you paid
> the tax, whichever is later" it seems legally that this
> client still has the right to file for a credit for the Year
> 2003. (Yet intuitively I feel that I am reading this
> incorrectly.
Let's say that the 2003 tax as assessed (more than 3 years
ago) is $1,000 more than it should be. He can pay the $850
and, within 2 years of the payment, claim a refund based on
the overassessment. The $150 is lost.
--
Phil Marti
Clarksburg, MD
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ------------------------------------------------------- >>
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