kuacou241[at]yahoo.com wrote:
- quote -

Thanks.

Actually, this is not a case where the refund stems from a
foreign tax credit.

However, I do see your point re: the extension. This is what
I see on your link to the IRS website:

"If a taxpayer files a claim for refund during the three year
period prescribed by section 6511(b)(1), the amount recoverable
is limited to the amount paid during the three years immediately
preceding the filing of the claim plus the period of any
extension of time for filing the return."

Not that clear. Let's say it's the case I mentioned:

John Smith was abroad on April 15, 2003, and therefore had until
June 15, 2003 to file his 2002 return, and he went and filed on
May 1, 2006. "Three years preceding" = from May 2, 2003 until
May 1, 2006, and now we need to add the part of "plus the period
of any extension". So we add another two months back - so we go
to March 2, 2003. Any taxes paid from March 2, 2003 until May 1,
2006 will be available for refund.

The refund from 2002 stems from overpayment of taxes in two
ways:

1. withholding (which seems to be deemed to be paid on April 15,
2003)
2. application of 2001 refund to 2002 - which is deemed to be
paid as are estimated taxes, i.e. also on April 15, 2003.

So either way, the tax was "paid" within the three years + two
months!

Or am I being too optimistic? :-)

David Rosenbaum

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davidrosenbaum[at]gmail.com wrote:

....

- quote -


See, e.g.: http://www.irs.gov/irm/part34/ch05s02.html

"Generally, the taxpayer must file a claim for refund within
three years from the time he files his return or within two
years from the time the tax was paid, whichever is later.
Section 6511(a). If no tax return was filed, a claim must be
filed within two years from the time the tax was paid."

There are numerous exceptions, the most significant (i.e.,
the longest) is where the claim for refund is related to
foreign tax credit and the foreign taxing authority has
revised its assessment. Then the SOL is ten years. Google:
<"foreign tax credit" limit ten years
The statutory terms would seem to take account of any
extension that was used.

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

Looking through the archives, I see there's been extensive
discussion about the three year limit/two year limit on
refunds conundrum.

One point I didn't see examined was the question of whether
the three year limit can be extended if an automatic
extension (let's say) was requested. Or even better: if the
taxpayer was abroad and thus automatically had until June 15
to file.

So if John Smith was abroad on April 15, 2003, and therefore
had until June 15, 2003 to file his 2002 return, and he went
and filed on May 1, 2006, would he get the refund?

Would it at all change the answer if the refund stemmed from
the fact that he applied his 2001 refund to 2002? (I don't
see why it would.)

Thanks.

David Rosenbaum

<< ================================================== ===== > << 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. > << ================================================== ===== >