"Pats Fan" <kingfish02375[at]yahoo.com> wrote:

- quote -

Wrong. As I noted in my earlier response, you can claim a
refund of something paid within 2 years of the payment. It
doesn't matter what the underlying assessment statute is.
There's nothing artificial about it.

The client does have to actually pay the balance due first,
as opposed to filing an amended return as a claim for
abatement without payment.

--
Phil Marti
Clarksburg, MD

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"bono9...[at]yahoo.com" <bono9...[at]yahoo.com> wrote:
- quote -

Your #2 was closest to what I was getting at, Dennis. But I
think where my situation is different is that the client
filed timely as I recall, but did not pay for 2003. Still
has not. I guess that would be a somewhat "artificial"
application of the rule, and would void even thinking about
it. Right? Thanks, all.

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"Pats Fan" <kingfish02375[at]yahoo.com> wrote:

- quote -

Let's say that the 2003 tax as assessed (more than 3 years
ago) is $1,000 more than it should be. He can pay the $850
and, within 2 years of the payment, claim a refund based on
the overassessment. The $150 is lost.

--
Phil Marti
Clarksburg, MD

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"Pats Fan" <kingfish02375[at]yahoo.com> wrote

- quote -

He can file an amended return and pay at any time.

The sooner the better to minimize interest and penalties (if any).

- quote -

If there is additional income, and maybe also a credit that
is due to him (ie: not claimed on the original return), then
by all means, file for the credit as well. While any
refundable credit won't be refunded based on statute limits,
it can't hurt to put it in there to reduce any liability.

--
Paul A. Thomas, CPA
Athens, Georgia

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Pats Fan <kingfish02...[at]yahoo.com> wrote:

- quote -

I'm not sure where your confusion is coming from. There are
two possible dates of interest and the deadline for filing
an amended return is the later of those two dates.

(1) 3 years after filing. The deadline for filing the 2003
return was April 15, 2004. If he filed his return by then,
the last date for amending is April 15, 2007. If he filed
for an extension or just plain filed late, then the last
date for amending is three years from the date he filed. So
it really depends on when he filed his original return in
determining this date.

(2) 2 years after paying the tax. If he filed on time, and
the IRS sent him a notice in 2005 that he owed more tax and
he paid that tax on February 5, 2006, then the last date he
could amend his return is two years past the date he paid
the tax, Feb. 5, 2008. In this example, this would be later
than 3 years past the filing deadline.

Hope this makes it clear.
Dennis

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Pats Fan <kingfish02...[at]yahoo.com> wrote:

- quote -

2003 is closed for a refund unless it was extended to
10/15/04.

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Pats Fan <kingfish02375[at]yahoo.com> wrote:

- quote -

You are wrong about always owing a balance due. The three
year statute of limitations applies to both the IRS and to
the taxpayer. Since you are talking about amending returns,
I must assume that returns were filed.

The 2003 return was due in April 2004. Three years later is
April 2007. Thus, 2003 is a closed year, whether you are
talking a refund or an additional balance due.

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

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Just giving this a shot.

I have a client who wants to look back as many years as
possible for potentially amending. I know that if one owes,
that will always be due. But this client owes to the IRS
about $850 for the Year 2003. Based on the language from the
1040x Instructions,"3 years after the date you filed the
original return or within 2 years after the date you paid
the tax, whichever is later" it seems legally that this
client still has the right to file for a credit for the Year
2003. (Yet intuitively I feel that I am reading this
incorrectly.

Can someone clarify this for me?
Thanks.

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