I am a disabled retired Army Veteran. Last year I applied for CRSC pay and was approved retroactive to Mar 01, 2005. It was my understanding that I could file an amended tax
return using IRS for 1040X. The local
H&R Block office prepared the amended Federal and State returns for the years 2008, 2009, and 2010. I have already received the State of Nebraska refunds and today got letters from the IRS. One says "We are unable to process your claim for the tax period(s) shown above.
In Accordance with Section 61 of the IRS Code, gross income means all income from whatever source derived. Accordingly, income is taxable unless specifically excluded by law
. You received a 1099R indicating that $32,389.00 from Defense Finance was taxable. We cannot consider your claim without a corrected 1099R from the payer indicating that your distribution is non-taxable."
The second IRS letter says: "Thank you for your amended return
We have adjusted your account as you requested."
My questions are: 1. How far back can I request an amended return?
2. Must I contact DFAS and ask for corrected 1099Rs for each year back to my CRSC start date?
Please do not suggest I go to the local IRS office for help as I did that already and they never heard of CRSC pay and did not think I was entitled to file an amended return.