Stupid question

[thomtax]

Normally I can give you the answer to this off the top of my head, but a new client says that the IRS told them something different. Now I question my thinking and have confused myself.

TTB 15-1 Claim for refund time limits
Three years from the time the original return was filed or two years from the time the tax was paid, whichever is later.

Sooo- Would a refund for a W2 client that did not file in 2003 have until the 2007 filing deadline or since they didn't file, would that opportunity have expired in 2006?

LT

PS - The IRS line told them they had 5 years.

[Bonnie]

Sooo- Would a refund for a W2 client that did not file in 2003 have until the 2007 filing deadline or since they didn't file, would that opportunity have expired in 2006?

LT

PS - The IRS line told them they had 5 years.[/QUOTE]

They would have until April 17, 2007 to file and claim a refund for the 2003 tax year.

Bonnie

[lbbwest]

Per Pub 559

I think you are getting confused by the "date he paid the tax" he paid the tax in 2003.

"Time for Filing a Claim for Refund
Generally, you must file a claim for a credit or refund within 3 years from the date you filed your original return or 2 years from the date you paid the tax, whichever is later. If you do not file a claim within this period, you may no longer be entitled to a credit or a refund.

If the due date to file a return or a claim for a credit or refund is a Saturday, Sunday, or legal holiday, it is filed on time if it is filed on the next business day. Returns you filed before the due date are considered filed on the due date. This is true even when the due date is a Saturday, Sunday, or legal holiday."

[Bonnie]

[QUOTE=lbbwest;36214]I think you are getting confused by the "date he paid the tax" he paid the tax in 2003.


The origianl post says he did not file in 2003 so he would not have paid anything if he didn't file.

Bonnie

[jainen]

No doubt

>>a new client says.... Now I question my thinking and have confused myself.<<

No doubt he confused the IRS rep in the same way, because it is not believable that the IRS would miss such a fundamental and often-asked question. But if you twist it around, as clients often do for various reasons, you can see that the normal filing period DOES span five years: 03, 04, 05, 06, and 07.

[lbbwest]

Dear Bonnie

"The origianl post says he did not file in 2003 so he would not have paid anything if he didn't file."

The TAX was paid either through withholding or estimates. The RETURN was never filed. If you read the cut and paste from the IRS you will see that failure to file does NOT preserve statute of limitations on refunds.

[George Boutwell]

Return as Refund Claim

He has until Tuesday to file the 2003 return, which is considered both the original return and the claim for refund. If he had requested an extension in 2004, he would have until August or October of this year.