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Lev
Lev, Tax Advisor
Category: Tax
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Experience:  Taxes, Immigration, Labor Relations
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I extended my 2008 return and did not end up actually filing

Resolved Question:

I extended my 2008 return and did not end up actually filing until 03/10, with large losses that were ineligible to be carried back (filed too late). My accountant then assumed a NOL carry forward, but did not do anything. Do I have 3 years from the date my return was recieved on 03/10 by the IRS for my 2008 losses to be elected to carryforward, or is my deadline to elect to carry forward 4/15/12??? I would have carried forward over $400,000 in losses in 2008 that chewed up huge income in 2010. Now my accountant is telling me I owe taxes, fees and penalties of over $160,000???? Help??? Does the fact that I filed an extension in 08 matter...or that the IRS received my return on 03/10?? I'm praying.
Submitted: 5 years ago.
Category: Tax
Expert:  Lev replied 5 years ago.

Hi and welcome to Just Answer!

If your did not timely filed your 2008 tax return - the statute of limitation to claim a refund or a credit started on Apr 15, 2009 and run out on Apr 15, 2012.

You still may amend your 2008 tax return - and if you have any unpaid tax liability - that liability will be reduced - but generally - no refund may be claimed.

If you had NOL in 2008 - it should be carried backward for two years - and if anything left - that amount will be carried over to 2009 and following years.

Specifically for NOL - there is seven years stature of limitation - so you might be able to claim refund if it is based on NOL.

 

Se for reference - http://www.law.cornell.edu/uscode/usc_sec_26_00006511----000-.html
Claim for credit or refund of an overpayment of any tax imposed by this title in respect of which tax the taxpayer is required to file a return shall be filed by the taxpayer within 3 years from the time the return was filed or 2 years from the time the tax was paid, whichever of such periods expires the later, or if no return was filed by the taxpayer, within 2 years from the time the tax was paid. Claim for credit or refund of an overpayment of any tax imposed by this title which is required to be paid by means of a stamp shall be filed by the taxpayer within 3 years from the time the tax was paid.

 

Let me know if you need any help.

 

Customer: replied 5 years ago.
I see in your answer in the bold it states: from the time the return was filed, which was actually on 03/10. My statute of limitations for audit runs from this date, so does this mean I have until 03/13 claim carry forward? Or, does the fact that I actually filed my 08 return on 03/10 make no difference here?

Expert:  Lev replied 5 years ago.

1. There is no statute of limitation on audit.

2. The statute of limitation to claim a refund or credit is not started 03/10 just because you filed late - but on Apr 15, 2009 when your tax return was due. However if you paid taxes on 03/10 - the statute of limitation will run two years after that date.

3. The statute of limitation on assessment is not started at all if your tax return was not filed. But it will be three years after you actually filed your tax return. In your situation - the IRS may assess additional tax liability up to 03/13.

 

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