statute of limitations

[kay]

My client has an overpayment of taxes in 2003 which is being applied to 2004 taxes, if I file his 2004 tax return after April 15, 2008, can I still take in account his 2003 tax overpayment, or he may loose it because it's more then three years?

[joanmcq]

I think he loses it.

[Burke]

It should be treated just as any estimated payment or withholding paid for 2004. He will get credit.

[David1980]

Of course, if he has a refund on the 2004 return he would lose that.

[bertrans]

My client has an overpayment of taxes in 2003 which is being applied to 2004 taxes, if I file his 2004 tax return after April 15, 2008, can I still take in account his 2003 tax overpayment, or he may loose it because it's more then three years?

It depends on what type of payment created the 2003 overpayment: if it was created by withholding, or a refundable credit, then that overpayment is barred for refund and offset - to 2004 or any other year. If, however, the overpayment was created by a socalled subsequent payment of taxes, then the TP has two years from the date of the payment to effect refund, and any offset would be automatic.