Constructive receipt of State Tax Refund

Taxes General Forum - Tax professionals meeting place and answers to queries. (Moderated) 

Yahoo!   Google   Windows Live   del.icio.us   digg   Netscape

Subject Author Date Constructive receipt of State Tax Refund Dick Adams 04-12-2009  Re: Constructive receipt of State Tax Refund Mark Bole 04-12-2009  Re: Constructive receipt of State Tax Refund Dick Adams 04-12-2009  Re: Constructive receipt of State Tax Refund D. Stussy 04-12-2009  Re: Constructive receipt of State Tax Refund Alan 04-12-2009
Posted by Dick Adams on April 12, 2009, 12:01 am Please log in for more thread options CPA told me he had a new client who had $22,000 in capital gains from a January sale of stock. When he told him how much he owed in Federal and State taxes, the client replied he had unpaid refunds in excess of the taxes due. Since your State Income Taxes actually paid is deductible, why is not rolling forward the refunds considered constructive receipt? Dick -- << ------------------------------------------------------- >> << 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 (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by Mark Bole on April 12, 2009, 12:23 am Please log in for more thread options Dick Adams wrote: > CPA told me he had a new client who had $22,000 in capital > gains from a January sale of stock. When he told him how > much he owed in Federal and State taxes, I'm not clear, which tax year(s) are we talking about? > the client replied > he had unpaid refunds in excess of the taxes due. Again, which tax year are we talking about for each refund and payment? By "unpaid refund", do you mean, "refund applied as estimated payment toward next tax year"? > Since your State Income Taxes actually paid is deductible, If you itemize... > why is not rolling forward the refunds considered constructive > receipt? > > Dick -Mark Bole -- << ------------------------------------------------------- >> << 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 (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by Dick Adams on April 12, 2009, 12:53 am Please log in for more thread options > Dick Adams wrote: >> CPA told me he had a new client who had $22,000 in capital >> gains from a January sale of stock. When he told him how >> much he owed in Federal and State taxes, > I'm not clear, which tax year(s) are we talking about? It's my understanding that the capital gains were from Jan 2008 and the accrued refunds were from 1999 through 2007. The explanation I heard was this guy was paranoid because of an audit he had in the mid-90's. Dick -- << ------------------------------------------------------- >> << 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 (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by D. Stussy on April 12, 2009, 5:40 pm Please log in for more thread options > > Dick Adams wrote: > >> CPA told me he had a new client who had $22,000 in capital > >> gains from a January sale of stock. When he told him how > >> much he owed in Federal and State taxes, > > > I'm not clear, which tax year(s) are we talking about? > > It's my understanding that the capital gains were from Jan 2008 > and the accrued refunds were from 1999 through 2007. > > The explanation I heard was this guy was paranoid because of > an audit he had in the mid-90's. Then the question should be posted to the unmoderated group! ;-) -- << ------------------------------------------------------- >> << 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 (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by Alan on April 12, 2009, 7:22 pm Please log in for more thread options Dick Adams wrote: >> Dick Adams wrote: > >>> CPA told me he had a new client who had $22,000 in capital >>> gains from a January sale of stock. When he told him how >>> much he owed in Federal and State taxes, > >> I'm not clear, which tax year(s) are we talking about? > > It's my understanding that the capital gains were from Jan 2008 > and the accrued refunds were from 1999 through 2007. > > The explanation I heard was this guy was paranoid because of > an audit he had in the mid-90's. > > Dick > This sounds as though he never filed for those years even though he "could have" received state refunds. No filing.. No constructive receipt. In fact, the state owes him nothing until he first establishes that a refund is due. And.. let's not forget that states have statute of limitations on obtaining refunds. -- << ------------------------------------------------------- >> << 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 (2007) - All rights reserved. >> << ------------------------------------------------------- >> Similar Threads Posted Constructive Receipt January 1, 2009, 10:58 pm Constructive receipt issue January 8, 2010, 12:56 pm End of year constructive receipt question December 16, 2006, 8:39 pm State tax refund October 20, 2009, 4:10 pm State tax refund October 23, 2009, 11:06 am 1099G and State Tax Refund February 20, 2010, 4:54 pm taxable portion of state tax refund April 28, 2007, 5:03 pm State refund due to amended return March 8, 2009, 8:59 pm why is 1099-G smaller than state income tax refund? January 24, 2009, 10:53 pm Overpay state tax on purpose to get a higher federal refund December 10, 2006, 8:26 pm