- quote -

See Section 6511(h) for how to apply that the statute be
waived. Here it is:

(h) Running Of Periods Of Limitation Suspended While
Taxpayer Is Unable To Manage Financial Affairs Due To
Disability. --

(1) In General. --
In the case of an individual, the running of the periods
specified in subsections (a), (b), and (c) shall be
suspended during any period of such individual's life that
such individual is financially disabled. (2)
Financially Disabled. -- (A) In General. --
For purposes of paragraph (1), an individual is financially
disabled if such individual is unable to manage his
financial affairs by reason of a medically determinable
physical or mental impairment of the individual which can be
expected to result in death or which has lasted or can be
expected to last for a continuous period of not less than 12
months. An individual shall not be considered to have such
an impairment unless proof of the existence thereof is
furnished in such form and manner as the Secretary may
require. (B) Exception Where Individual Has Guardian,
Etc. -- An individual shall not be treated as financially
disabled during any period that such individual's spouse or
any other person is authorized to act on behalf of such
individual in financial matters. ------

Also see Publication 556 and Rev. Proc. 99-21. In my opinion Rev.
Proc. 99-21 has more compete information than the publication.

--
Drew Edmundson, CPA
Cary, NC

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"Frederick Lorca" <FrederickGLorca[at]fictitious.org> wrote:

- quote -

Yet another example of Congress attacking an ant with a
nuke. This kind of situation is why they have private
bills. Anyone remember the ridiculous and short-lived
requirement in the 1970's for IRS to keep a duplicate index
of liens after one recording office messed up one recording
and one innocent purchaser was harmed? Millions of tax
dollars spent to accomplish nothing helpful.

--
Phil Marti
Clarksburg, MD

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"Jon LaBadie" <jxlabadie[at]axcxmx.org> wrote:

- quote -

3 yrs means 3 yrs

ahem, let me clarify & say it again ...

3 yrs means 3 yrs

no matter how much time & money you spend chasing it...

3yrs means 3yrs

sorry, but you should have filed sooner

___________________________________
<<< Benjamin Yazersky, CPA [NJ & NY] > > -----> real address on hobokeni or hobokenx <-----

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- quote -

Refund statutes, like other statutes, are not merely matters
of discretionary policy. Your refunds for tax years ending
prior to December 31, 2003, have been denied because IRS, by
law, is not authorized to refund or credit an overpayment
when the return is filed more than three years following the
original or properly extended due date. Section 3202 of The
Internal Revenue Service Restructuring and Reform Act of
1998 (P.L. 105-206), usually referred to as RRA '98, added
Internal Revenue Code section 6511(h) which permits IRS to
waive the three-year refund statute in cases of "financial
disability."

Revenue Procedure 99-21 (linked below) explains how to
request a waiver of the refund statute based on financial
disability. Establishing financial disability is your only
recourse for getting the disallowances reversed.

http://www.irs.gov/pub/irs-drop/rp-99-21.pdf

Before you start working on your financial disability waiver
request, you may want to be aware of Congress' intent when
they enacted § 6511(h). On February 18, 1997, the U.S.
Supreme Court ruled that the refund claimed on the
late-filed origin return (filed more than three years after
the due date) filed by Marian Brockamp for her deceased
father, Stanley McGill, was statute-barred. Mr. McGill was
afflicted with Alzheimer's disease for several years
preceding his death and had not been lucid enough to deal
with his financial affairs. Although it seemed patently
unfair to disallow the refund given the circumstances, the
Supremes ruled that the statute was binding and it was up to
Congress to legislate exceptions. And that is exactly what
Congress did the following year when they enacted § 3202 of
RRA '98. In the joint committee report to RRA '98, Congress
expressly indicated that they intended the financial
disability waiver provision to apply in situations involving
egregious circumstances like those presented in the Brockamp
case.

If you think that your eight-year filing hiatus rises to the
financial disability standard required in order to invoke a
§ 6511(h) exception to the three-year refund statute, then
you should submit your waiver request in accordance with
Rev. Proc. 99-21.

Frederick Lorca

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Jon LaBadie wrote:

- quote -

Amazing that the same statute of limitations does not apply
for deliquent tax payers. I ran into the same thing on a
property that was over taxed due to a square footage error
by the City. They took money for 10 years but would only
give back 3!

--
Joe Leikhim K4SAT
"The RFI-EMI-GUY"©

"Treason doth never prosper: what's the reason?
For if it prosper, none dare call it treason."

"Follow The Money" ;-P

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Jon LaBadie wrote:

- quote -

I know of no way out on this one. It's the law.

But why did you wait so long to file? If you were working,
you would have known you had the duty to file.

ChEAr$,
Harlan Lunsford, EA n LA

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After a long period of "recovery" I finally submitted my
overdue returns in January. Eight years worth! In each of
those 8 years I was overpaid between withheld and estimated
taxes paid in. Plus I had a carry forward from my last
filing (1997).

As expected I'm getting notified that I will get no refunds
from any but the last three years due to a statute of
limitations on refunds. The amount that I'm not scheduled
to receive is very substantial, worth fighting for. Has
anyone ideas or recommendations for arguments I might make
to justify relaxing their policy?

Thanks,

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