Have a Tax Question? Ask a Tax Expert
Unfortunately, this is true. The IRS will not refund any money from a "closed" year. A year closes 3 years after the due date of the return.
Actually, I worked with JK_CPA before, but this was opened to others.
I thought it was 3 years after the filing of the return, which was 12/31/07.
Oh, sorry. Next time, if you want to specify an expert, put it at the beginning of the question.
It was not closed at that time.
Generally, to claim a refund, Form 1040X must be filed within 3 years from the date of your original return or within 2 years from the date you paid the tax, whichever is later.
The date of the original return was 12/31/07.
The amended was filed 4/15/10.
Sorry the date filed of the original return was 12/31/07.
Can you forward this to JK_CPA?
Sure, I can opt out and send a message. I don't know if that expert is online right now, but they should get an email about it.
He was noted as on-line.
Thanks for your request.
OK, I'm assuming you did not pay IRS a balance due with your returns but you had refunds on your original and amended returns.
Your original 2004 return credit of $4978 should have been applied to your 2005 return, as requested. Now here is where it gets a bit complicated and unfortunately, I'll have to say the IRS is probably correct.
When you filed your amended return on 04/15/2010, only 2004 taxes you actually paid between 04/15/2007 (or 10/15/2006 if you had an extension) and 04/15/2010 could have been refunded to you. If you paid your taxes timely - say through withholding or other credits, this would have been credited to you as of 04/15/2005 (original due date of the return), so any refund of these types of credits will be disallowed.
If a claim for refund is filed within three years from the time the return was filed, only the tax paid within the three years preceding the filing of the claim, plus the period of any extension of time for filing the return, can be refunded. (IRC 6511(b)(2)(A))
Well, the letter the IRS sends maybe somewhat misleading/incomplete. They do not always list all the rules affecting the claim and from experience, these letters are notorious for their vagueness. There is an additional over-riding rule - IRC 6511(b)(2)(A)) - that I quoted above. This makes another 3 - 3 1/2 year "window" which runs from 10/15/06 if extension granted or 04/15/07 through 04/15/10 (date you filed your 1040X). Only taxes actually paid during this window could be refunded. So if you paid, for example, all your original tax before 10/15/06 through withholding, other tax credits or payments, then any claim/amended return for refund of these amounts will be frozen.
You can always call the IRS at the number shown on the letter and ask them for more information or a better explanation. Sometimes, it may be better to write to them if you do not get a good response on the telephone.
Attachments are only available to registered users.
Sorry for the delay, I was out of town for the weekend.
Frozen means they keep the credit and do not refund it.
Thank you for your accept on the original question. No further payment is necessary for this thread; however, I will have to ask you to post your other issues about the payments in a separate post.