Refund for Previous Years Returns - Strategy

[KC-CPA]

Client hadn't filed returns since 2006, due to lack of filing the estimate the IRS calculated was high and they garnished wages based on their estimates of tax liability (which we all know is very high if there are any itemizations or exemptions).

Client then filed 2011 and 2012 tax returns in 2013 within 3 year timeframe, both had large refunds of around $8K (we should all ignore the fact that this was not in the realm of smart to begin with) IRS took refunds for all the outstanding tax liability they calculated for 2006 - 2010.

Client then filed all tax returns for 2006-2010, all had refunds, since 3 year timeframe had expired no refunds were received from IRS, however, it did take liablility to 0 for those years and cleared up tax liability.

Here is my question. If I amend his 2011 and 2012, could he now get the refund for thos years since the 3 year timeframe has not expired and just note amending to claim refund, or is there another strategy that could be taken, does something have to be changed on the return or is a note to claim refund sufficient.

[sandigi]

Client hadn't filed returns since 2006, due to lack of filing the estimate the IRS calculated was high and they garnished wages based on their estimates of tax liability (which we all know is very high if there are any itemizations or exemptions).

Client then filed 2011 and 2012 tax returns in 2013 within 3 year timeframe, both had large refunds of around $8K (we should all ignore the fact that this was not in the realm of smart to begin with) IRS took refunds for all the outstanding tax liability they calculated for 2006 - 2010.

Client then filed all tax returns for 2006-2010, all had refunds, since 3 year timeframe had expired no refunds were received from IRS, however, it did take liablility to 0 for those years and cleared up tax liability.

Here is my question. If I amend his 2011 and 2012, could he now get the refund for thos years since the 3 year timeframe has not expired and just note amending to claim refund, or is there another strategy that could be taken, does something have to be changed on the return or is a note to claim refund sufficient.

Yes amend and get refunds. I think the 1040X will handle it when you get to the "total payments" section.

[taxea]

you do not need to amend. Call the IRS. They should automatically refund the funds they took. If they don't the form to file is for the refunds, not an amended return.

[sandigi]

Good answer

You wouldn't need to amend if no change. Of course! That makes sense.

Although if if I didn't file this return, I would look at all the documents and make sure Form 1040 was right before I called or wrote IRS on client's behalf. Especially since he was late with returns back to 2006. My bet is a 1040x will be necessary.