Roll old refunds forward?

[rtsietsema]

Client with unfiled returns since 2009, will have missed out on refunds in the early years, but will have a balance due in some of the more current years.

Question. I know the IRS will not send a refund from 2009, but can I mark the refund in that year, and others, to apply to the next tax year. Effectively this will allow him roll the refunds he can't get into a year where he fell short? I want to be able to advise him of whether or not this can work.

Anyone with experience in trying this??

[DaveO]

I've tried it and it didn't work. Just got a notice that the claimed refund was past the statute. In the case where later refunds have been taken for earlier balance due years in the case of multi-year SFR filings those may be available if paid with the last three years.

[Burke]

Right. Rolling over the old refunds is the same as getting them. Not available for cash (or credit) after the statute of limitations.

[taxea]

Even though the refunds are not available, filing the returns could likely lower the tax liability. It is never a good thing to let the IRS base the liability on an SFR.

[rtsietsema]

Will file

Thanks to all.

Definitely will file all years to get him caught up. I believe a County court is wanting to review his ability to pay child support, and has been unable to do so, since no returns have been filed.

Unfortunately, he probably cannot pay what he will owe, and if he had refunds coming, the State will grab it for the County for unpaid child support. He can't, and shouldn't, win.

[Burke]

I just got a notice from VA that they will now take the state refund for the IRS if there are outstanding amts there.