Amend 07 return to remove HOPE credit, so I can take this year?

[taxmandan]

In the meantime, I guess I need to review my personal understanding of "statute of limitations."

FE

There is no statute of limitations on filing an amended return because there is no statutory authorization for theIRS to accept an amended return. They routinely accept and process them by administrative process for 'efficient tax administration' not because of statutory requirement. TheIRS has on occasion refused to process an amended return when they considered it frivolous or not in the best interests of the US of A. The idea in the OP might or might not be accepted, but as stated earlier you need to calculate the interest and penalty for late payment of that $200 before deciding if it's worth the effort.

[bgiez]

For the AOC, isn't there a requirement

to be in the first four years of undergrad? A student in 2007, who was in school in 2007 and attended continously would be in at least the 5th year by 2012, and would have completed the first four years of postsecondary education before 2012.

[MRPLOW]

to be in the first four years of undergrad? A student in 2007, who was in school in 2007 and attended continously would be in at least the 5th year by 2012, and would have completed the first four years of postsecondary education before 2012.

Student is a married adult with kids and did NOT attend continuously.
Took some semesters off here and there.

[taxea]

taxea - you really should get your facts straight before you falsely accuse someone of tax fraud.

IRC § 25A(e) says:



This code section clearly allows a taxpayer to do exactly what you claim is tax fraud. Please attempt to get the facts straight prior to posting answers to tax questions on this message board.

There is a difference between making an accusation and broadening the scope of the thinking. He made the decision to take the credit in 07 and now, just because he could qualify for a larger credit, had he not taken it...he wants to back it out. That is like the bank robber that wants to give the money back because he found a bank that has more money he can rob.

1. The fact is that the year is closed for an amended return. The return had no errors on it when it was filed. And the TP made a conscious decision to take the credit for that year. I don't think, ethically, that this is a proper position for a preparer to take.

[taxea]

Just for general information, one may amend a tax return at any time after the filing. No time limits apply.

But in this case there are no errors on the return.

[DexEA]

Seriously?

There is a difference between making an accusation and broadening the scope of the thinking. He made the decision to take the credit in 07 and now, just because he could qualify for a larger credit, had he not taken it...he wants to back it out. That is like the bank robber that wants to give the money back because he found a bank that has more money he can rob.

1. The fact is that the year is closed for an amended return. The return had no errors on it when it was filed. And the TP made a conscious decision to take the credit for that year. I don't think, ethically, that this is a proper position for a preparer to take.

I don't see a legite analogy with your bank robber and the tax preparer because I don't see anything ethically wrong with amending a return because it is economically beneficial for the client.

How does one know what the future will bring? Correct me if I'm wrong, but I don't think in 2007 the American Opp Credit was in existence, so if the option is available to get a larger credit, why not?

[WhiteOleander]

There is a difference between making an accusation and broadening the scope of the thinking. He made the decision to take the credit in 07 and now, just because he could qualify for a larger credit, had he not taken it...he wants to back it out. That is like the bank robber that wants to give the money back because he found a bank that has more money he can rob.

1. The fact is that the year is closed for an amended return. The return had no errors on it when it was filed. And the TP made a conscious decision to take the credit for that year. I don't think, ethically, that this is a proper position for a preparer to take.

The bank robber committed a crime. This is a taxpayer who has not committed any crime. All he wants to know is if it is allowed at this point to make a change. If it is possible, why not take advantage of it? The gov't will certainly use every tool available to them to figure the tax. You provided a very poor analogy.

[Bees Knees]

1. The fact is that the year is closed for an amended return.

The fact is the year is closed for claiming credits or refunds under Section 6511. You have not, nor anyone else provided a citation that says the year is closed for the taxpayer voluntarily wanting to increase and pay the tax. Nor have you or anyone else provided a citation that says there is a time limit to revoke the election under Section 25A(e) to claim the credit.

[Bees Knees]

There is a difference between making an accusation and broadening the scope of the thinking.

That is true. However, you failed to broadening the scope of the thinking by making a baseless accusation that it could be tax fraud to not claim an education credit when in fact, the code allows it.

[thomtax]

First of all it is too late to amend 2007 for this reason even if you could legally do so.

How do you figure he will only owe 200. He will owe penalties and interest for failure to pay from 4/15/07 if the credit was in error. The fact is it isn't in error and he can't take it again.

How do you justify this not being tax fraud? Just because he is willing to pay to take it off doesn't mean it didn't belong there in the first place. I think you should figure what the penalties and interest will be for this length of time before you decide the client will have any gain from this ****-eyed suggestion.

Is this the same taxea that said they do not bother indicating whether interest, dividends, etc were T, S, J because it was too much work and took me to task for suggesting that this be done? Now, you, in a very insulting, vulgar way criticize someone for looking for ways to do the best for their client, even though you recently criticized others for questioning haircut deductions, etc for policemen. I believe at one time I read that you are former law enforcement. So I guess it depends on "whose ox is being gored" that determines whether you stretch the limits of the rules or not. "If I do it, it is ok - but not for you" philosophy.

[Roberts]

I'd call the practioners hotline and ask them if it is allowed and whether the IRS would accept an amendment like that.
I certainly wouldn't claim the AOC for 2012 until the IRS had accepted the amendment which means amending the 2012 return later. (IF YOU INCLUDE A CHECK WITH THE 1040X, I'LL BET IT INCREASES THE ODDS OF ACCEPTANCE.)


An error occurred by default if the tax bill due changes with the amendment.

[ChEAr$]

So if a client realized that in say 2008 they made a mistake and their charitable deductions were only $1000, but they had mistakenly reported $5000 on there return. They would not be allowed to amend the 2008 return and pay the tax due, because it has been more then 3 years?

Yes. Money will be cheerfully accepted and 1040x processed.

[MRPLOW]

Is this the same taxea that said they do not bother indicating whether interest, dividends, etc were T, S, J because it was too much work and took me to task for suggesting that this be done? Now, you, in a very insulting, vulgar way criticize someone for looking for ways to do the best for their client, even though you recently criticized others for questioning haircut deductions, etc for policemen. I believe at one time I read that you are former law enforcement. So I guess it depends on "whose ox is being gored" that determines whether you stretch the limits of the rules or not. "If I do it, it is ok - but not for you" philosophy.

You are correct, I was also involved in that conversation to. Coincidence...
I also remember giving numerous reasons of why every MFJ return should be entered in and coded separately. I also provided numerous, real life scenarios where the T/P's could save by filing MFS.

[New York Enrolled Agent]

The fact is the year is closed for claiming credits or refunds under Section 6511. You have not, nor anyone else provided a citation that says the year is closed for the taxpayer voluntarily wanting to increase and pay the tax. Nor have you or anyone else provided a citation that says there is a time limit to revoke the election under Section 25A(e) to claim the credit.

Try §6501(a) as the cite - tax may be assessed only within the three year period after the return is filed. Also look at ILM 201052003 - the discussion might be helpful.

For ChEAr$ - you can file an amended return at any time but that doesn't mean it will have an impact. The only time a "late" amended return would be helpful is to reduce a liability that exists and has not been fully paid as of the time of the amended return. The 3 year statute for assessment applies to both the IRS and the taxpayer.

[taxea]

That is true. However, you failed to broadening the scope of the thinking by making a baseless accusation that it could be tax fraud to not claim an education credit when in fact, the code allows it.

That is not what I said.