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applying refund to next year taxes

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    #1

    applying refund to next year taxes

    I have a client who.has a change of mind. Based on her return i recommended
    To have her redund.applied to next year(she will not have to pay estimates taxes
    So the refund is simply kept by the irs). Now she has changed her mind.and.wants the
    Refund. What is the best way to do this? Amend the return?
    Tags: None
    #2
    Sorry, she is out of luck. You cannot amend the return for this change of heart. It is the same as if she sent them a check and decided she didn't want to. They will not return estimated tax payments applied to 2012. She will have to wait until next year to file for refund (if any.)

    Comment

      #3
      Refund

      I haven't looked at this issue recently, but the last time I did, there was no process for changing your mind.

      Application of the refund to next year is an estimated payment. And in general, there is no way to get a refund of estimated payments during the tax year. You just have to wait until you file the return.

      Your client can "recover" the money by reducing her estimated payments for the rest of the year...

      Because the due date for the return, and for the first quarter esimated payment, is still a couple months away, you might be able to fix it by calling the IRS or sending a letter, and stating that it was a clerical error or data entry error on the tax return, and requesting that the overpayment be refunded.

      An amended return probably will not work.

      This might be a good case for the Tax Practitioner Hotline.

      BMK
      Last edited by Koss; 02-26-2012, 12:25 PM.
      Burton M. Koss
      koss@usakoss.net

      ____________________________________
      The map is not the territory...
      and the instruction book is not the process.

      Comment

        #4
        Koss makes a good point which I failed to address. If she normally makes estimated tax payments, then just don't for 2012. Or reduce W-2/1099R withholding to accommodate the advance payment. That is her only option.

        Comment

          #5
          no es payment required

          Thanks for the responds. She had a complicated return including foreign income so my suggestion was to apply the refund to next year to be safe. She does not have to make es payments so she will just have to wait till next year. You guys are so right though, change of mind could not be amended.

          Comment

            #6
            What about the request for refund form? Would that apply with a statement of explanation?
            Believe nothing you have not personally researched and verified.

            Comment

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