"BM30003700" <bm30003700[at]aol.com> wrote:

- quote -

Internal Revenue Manual 25.6.3.4 (dated 10/01/2004) says:

http://www.irs.gov/irm/part25/ch06s03.html#d0e14077

============
4. Overpayment Credited to Next Period's Estimated Tax.
Where an overpayment is credited to the next tax period's
estimated tax pursuant to a taxpayer's request (on a tax
return), it becomes an estimated tax payment treated as paid
as provided in (3)(b) above. See IRC § 6402(b).

Note:

The amount ceases to be a payment for the year of the tax
return and can no longer be claimed for credit or refund for
that period.

=============

It sounds like the assistor you spoke with on the
practitioner's line was intimating that could tell a little
white lie to the effect that you erred by asking to have too
much credit elected and that you want the excess transferred
back to the 2003 year. If they do input the transfer, you
need to remind them to use a transaction code 570 on the
credit side (the 2003 year) of the transfer to prevent the
credit elect reversal from refunding automatically, which is
what will happen if the credit elect is reversed prior to
the 1040X assessment posting.

Barney Byrd

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I prepared a year 2003 return for a client and noticed an
error on the return after the return had been filed.

The year 2003 return showed an overpayment, and asked to
have the overpayment applied to year 2004 taxes.

Amending the year 2003 return results in a tax owed that
could be covered by part of the overpayment shown on the
year 2003 as originally filed.

I spoke with someone at the IRS practitioner's hotline.
They said to file the 1040X, and after giving IRS time to
process the 1040X, but within 90 days of filing 1040X call
and ask to have the overpayment shown own on the originally
filed return credited toward year 2003 tax.

The person at practitioners hotline said you can ask to have
this done before the filing deadline for the yewar 2004
return, and the amount of credit "shifted back" to year 2003
will prevent penalties and interest on the 1040X.

I read recently where if you file a year 2003 return showing
an overpayment and have the overpayment applied, you cannot
later go back and ask to have the overpayment refunded.

I understand that what I read is not the same fact pattern
as the information I got from practitioner's hotline, but
wanted to check in with the group and see what you all
thought.

Has this happened to anyone else, here? Any suggestions or
feedback much appreciated

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