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Posted by Glenn on May 20, 2008, 12:35 am
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Thanks for the opportunity to ask this.
I late filed for 2002-2004 in Nov 2005. For 2002, 2003 and 2004, I owed
the IRS. In 2005 and 2006 the IRS owed me.
I had filed late pending a dispute outcome over 2001 taxes which was
finally settled in my favor with a refund Apr 2006.
The due amounts from 2002-2004 have not yet been paid to or requested by
the IRS and a change to tax law in late 2007 covered a VA benefit income
for which I had in 2002 and 2003 judging it as a non-taxable benefit
(below link).
I understand that the 2007 tax change would apply for three prior years
in a on-time filing situation
That change, if applied to my late filed 02-03 taxes results in a refund
to me for both years that more than make the 2004 taxes I owe.
My question is:
Does the three year statute of limitations (to amend taxes for a refund)
start on the day I filed (8 Nov 05) for those years, the same as it
would for the IRS if they were going after me to collect taxes due for
the same years?
Thanks So Much for your time in even considering this.
http://www.ustaxcourt.gov/InOpHistoric/Wallace.TC.WPD.pdf
ROOSEVELT WALLACE, Petitioner v.
COMMISSIONER OF INTERNAL REVENUE, Respondent
Docket No. 4637-03. Filed April 16, 2007.
http://www.kiplinger.com/features/archives/2008/04/late-tax-filing.html
Late Tax-Filing
• The statute of limitations for the IRS to audit your return starts at
the later of the original due date or when you actually file your
return. So, the sooner you file, the sooner the clock starts ticking.
--
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<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
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Posted by Condor on May 20, 2008, 11:26 am
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> I late filed for 2002-2004 in Nov 2005. For 2002, 2003 and 2004, I owed
> the IRS. In 2005 and 2006 the IRS owed me.
>
> I had filed late pending a dispute outcome over 2001 taxes which was
> finally settled in my favor with a refund Apr 2006.
>
> The due amounts from 2002-2004 have not yet been paid to or requested by
> the IRS and a change to tax law in late 2007 covered a VA benefit income
> for which I had in 2002 and 2003 judging it as a non-taxable benefit
> (below link).
>
> I understand that the 2007 tax change would apply for three prior years in
> a on-time filing situation
>
> That change, if applied to my late filed 02-03 taxes results in a refund
> to me for both years that more than make the 2004 taxes I owe.
>
> My question is:
>
> Does the three year statute of limitations (to amend taxes for a refund)
> start on the day I filed (8 Nov 05) for those years, the same as it would
> for the IRS if they were going after me to collect taxes due for the same
> years?
>
> Thanks So Much for your time in even considering this.
Thank you for asking. First, the staute of limitations to amend a
prior-year tax return works as follows:
Section 6511 of the Internal Revenue Code (IRC) sets the following deadline
to amend most tax returns. You have until the LATER of:
1) three years from the date the return was filed, or
2) two years from the date the tax was paid.
Since you indicated above that the tax due on the 2002 - 2004 returns has
not been paid, all three years are still open to be amended. However, if
you are claiming a refund on some or all of these years, it gets more
complicated. It's one thing to say the statue of limitations is open to
amend a return. But just because a return is open to be amended, it does
not necessarily follow that you are eligible to receive a refund. If tax is
still due for 2002 - 2004, you can amend them to reduce or remove any
remaining tax due. However, unless you paid any tax for 2002 - 2004 within
the last two years, the returns are statute-barred for purposes of claiming
a refund.
IRS issued News Release 2007-198 (December 12, 2007) following the Tax
Court's decision in the Roosevelt Wallace case. I've pasted a link to the
news release below.
http://www.irs.gov/newsroom/article/0,,id=176442,00.html
About the same time, IRS issued Revenue Ruling 2007-69. Here is a link to
it:
http://www.irs.gov/pub/irs-drop/rr-07-69.pdf
If you decide to amend any or all of the years about which you are asking,
don't forget to sign your amended returns and enclose each one in a separate
envelope. Or, better in my opinion, file them in person at your local IRS
walk-in office. Take originals and your copy so the IRS reps can date stamp
your copies, which you need to retain for your records.
http://www.irs.gov/localcontacts/index.html
Good luck to you.
Condor
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<< ------------------------------------------------------- >>
<< 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. >>
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Posted by removeps-groups@yahoo.com on May 20, 2008, 3:27 pm
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> Does the three year statute of limitations (to amend taxes for a refund)
> start on the day I filed (8 Nov 05) for those years, the same as it
> would for the IRS if they were going after me to collect taxes due for
> the same years?
See
http://goliath.ecnext.com/coms2/gi_0199-1322319/SOL-on-individuals-refund-claims.html
I think example 2 applies to you
<Quote>
Example 1: Individual G made estimated tax payments of $1,000 and
received an automatic extension to Aug. 16, 2004, to file her 2003
income tax return. When G filed her return on that date, she paid $200
additional tax due. On Aug. 15, 2007, she files an amended return and
claims a $700 refund. Because G files the refund claim within three
years of her return filing, plus the four-month extension period, she
is entitled to a full refund; see Regs. Sec. 301.6511 (b)-1(b)(1)(i).
Example 2: The facts are the same as in Example 1, except that G filed
her return on Nov. 1, 2004--2 1/2 months after her extension period
ended--and paid $200 of additional tax on that date. On Oct. 29, 2007,
G files an amended return and claims a $700 refund Although she files
the refund claim within three years from the date she filed her
original return, her refund is limited to $200. The $1,000 estimated
tax was paid more than three years before, plus the four-month
extension period.
Example 3: Individual V filed his 2003 return on April 15, 2004, and
paid $500 tax. On Nov. 2, 2005, after an IRS examination of his
return, V has to pay $200 in additional tax. On May 2, 2007, he files
a claim for a $300 refund. V's refund is limited to the $200 paid
during the two years immediately before he filed his claim; see Regs.
Sec. 301.6511 (b)-l(b)(1)(ii).
</Quote>
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<< ------------------------------------------------------- >>
<< 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. >>
<< ------------------------------------------------------- >>
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Posted by D. Stussy on May 20, 2008, 11:09 pm
Please log in for more thread options > Thanks for the opportunity to ask this.
>
> I late filed for 2002-2004 in Nov 2005. For 2002, 2003 and 2004, I owed
> the IRS. In 2005 and 2006 the IRS owed me.
>
> I had filed late pending a dispute outcome over 2001 taxes which was
> finally settled in my favor with a refund Apr 2006.
>
> The due amounts from 2002-2004 have not yet been paid to or requested by
> the IRS and a change to tax law in late 2007 covered a VA benefit income
> for which I had in 2002 and 2003 judging it as a non-taxable benefit
> (below link).
>
> I understand that the 2007 tax change would apply for three prior years
> in a on-time filing situation
>
> That change, if applied to my late filed 02-03 taxes results in a refund
> to me for both years that more than make the 2004 taxes I owe.
>
> My question is:
>
> Does the three year statute of limitations (to amend taxes for a refund)
> start on the day I filed (8 Nov 05) for those years, the same as it
> would for the IRS if they were going after me to collect taxes due for
> the same years?
>
>
> Thanks So Much for your time in even considering this.
Let's take the earliest year - 2002. It was due April 2003. Therefore, as
long as you file before April 2006, you can claim your refund and have it
sent. Since you filed originally in November 2005, you met the 3 year rule
for being able to have your refund actually sent. In the first 3 years
after filing, one may amend the return to anything and get a refund. That
closes November 2008. After that, one may amend but can only seek a refund
for the amount paid in the 2 years prior to the RECEIVE date of the amended
return.
Therefore, I don't see a problem. File your claims and see if they go
through.
--
<< ------------------------------------------------------- >>
<< 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. >>
<< ------------------------------------------------------- >>
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Posted by Condor on May 21, 2008, 9:27 am
Please log in for more thread options > Let's take the earliest year - 2002. It was due April 2003. Therefore,
> as
> long as you file before April 2006, you can claim your refund and have it
> sent. Since you filed originally in November 2005, you met the 3 year
> rule
> for being able to have your refund actually sent.
> In the first 3 years
> after filing, one may amend the return to anything and get a refund. That
> closes November 2008. After that, one may amend but can only seek a
> refund
> for the amount paid in the 2 years prior to the RECEIVE date of the
> amended
> return.
That's not correct. The deadline to amend a 2002 return and receive a
refund of prepaid credits, i.e., withholding, estimated tax payments, or
earned income credit, was April 15, 2006- the original due date plus three
years (this assumes no extensions were filed). He can amend up until
November 2008 (the original filing date plus three years) but if he amends
after April 15, 2006, he is only eligible to receive a refund of payments
made within the two-year period immediately preceding the date the amended
return is filed.
Condor
--
<< ------------------------------------------------------- >>
<< 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. >>
<< ------------------------------------------------------- >>
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