"Will" <DELETE_westes[at]earthbroadcast.com> wrote

- quote -

Not really. They generally only loook (if at all) at the
item being carried back, and it's impact on other parts of
the return. Same for amended returns. And the window is
open for a relatively short time frame.

--
Paul A. Thomas, CPA
Athens, Georgia

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

"Will" <westes-usc[at]noemail.nospam> wrote:
- quote -

Somewhere in my research I have support for the 60-Day
review rule, but I can't put my fingers on it at the moment.
I will see what I can find, but my participation in this NG
(the participation of all of the professional contributors),
especially this time of year, is a matter of having the time
to respond. After all, paying clients always come first!

Gene E. Utterback, EA, RFC

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

"Gene E. Utterback, EA" <gene[at]alliancerax.com> wrote:

- quote -

Well, that raises an interesting side issue to the thread.
In the example that prompted this question, the IRS waited
approximately nine months after receiving the 1040x to come
back with questions. So it looks like the 60 day rule is
some internal administrative guideline and not a law? It
looks like they do whatever they feel like doing. In this
case they are still within three years on the original tax
filing for 2002 so they should be able to ask questions
against that 2002 return, but they are way beyond 60 days on
the 1040x that affects the pre-2000 year. Since most of
their questions look very superficial and concern only 1040x
calculations, it almost doesn't seem worth fighting it up
front because I doubt anything will be controversial. But
if they were to rule against the refund or severely lessen
it, is there a *legal* basis for claiming to a tax court
that the IRS was beyond the 60 day period it is allowed to
address the amended return?

--
Will

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

L K Williams <lanny[at]loxinfo.co.th> wrote:

- quote -

Would that allow the IRS to challenge a medical expense that
it accepted before, or must it still accept it?

Seth

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

"L K Williams" <lanny[at]loxinfo.co.th> wrote:
- quote -

I'm not sure I agree. I haven't looked it up, but my
understanding is that the ENTIRE 1997 return is fair gain
for adjustment as a result of the carryback, but that the
SOL for assessment has expired, so the most they could do
was not issue the refund, or later come back and assess up
to the amount of the refund. So, they couldn't owe
additional tax due to other items on the 1997 return, but
they might not get their full refund, based on other items
on the return. IOW, I believe that at all times the tax for
the year remains the CORRECT tax, but the question is
whether the appropriate statute allows either the taxpayer
or the government to get to that point.

--
Bruce E. Cobern, CPA
mailto:bec[at]pipeline.com

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

"Will" <DELETE_westes[at]earthbroadcast.com> wrote:

- quote -

It may not be as clear as you think it is.

Amending a return does NOT extend the statute of
limitations, with one small exception. You must give the
IRS 60-days to process the amended return. If you filed
your 2002 return on 04/15/03 the statute would expire on
04/15/06. If you amend that 2002 return on 04/01/06 you have
to give the IRS at least 60-days, or until 05/30/06 to
address the amendment.

As for the 1997 return, you are correct that this is beyond
the IRS's reach under normal audit conditions.

Gene E. Utterback, EA, RFC

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

"Will" <DELETE_westes[at]earthbroadcast.com> wrote:

- quote -

A loss carryback to a closed year does not reopen that year,
except as to calculation of items affected by the carryback.
Such a carryback does not open the door for IRS to
reexamine deductions or other items on the return. It does,
however, permit IRS to recalculate the tax and to adjust or
disallow anything affected by the carryback. For example,
the limitations of medical expenses and miscellaneous
itemized deductions can be recalculated because of the
reduction in AGI resulting from the carryback.

Lanny K. Williams, CPA
Nawarat, Williams & Co., Ltd.
Income Tax Services for Expatriate Americans

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

2001 and 2002 were special years in that you were allowed to
carry back losses for five years. A 2002 return could
carryback to 1997 for example. If a taxpayer files an
amended 2002 return to carry back to 1997, is the IRS now
allowed to tear apart the 1997 return and in effect re open
that year to any kind of audit? On the surface, it is
clear that refiling a 2002 return allows another three years
for audit of the 2002 tax year. But any NOL on the 2002
return that is deemed acceptable by the IRS is carried back
in a simple mechanical way to 1997 and applied against a
gain in that year that was long-ago accepted. Nothing in
the substance of the 1997 return is being changed, and the
only material change is the application of a loss from a
future year.

What limitations if any are there on what the IRS can audit
in the 1997 return in the example given above?

--
Will

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >