Discussion:Reduce tax due for old years?
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Discussion Forum Index --> Tax Questions --> Reduce tax due for old years?
| 14 August 2007 | |
| My client reported 221k income and 51k tax for 2001, filed October 15, 2002.
It's too late for a refund, but he never paid. IRS and FTB billing him for over 110k. Client's parents found guilty Nov 2006 of fraud, etc by US District Court in Oakland. Proceeds were used to acquire 2 pieces of real estate in client's name. Law says property was forfeited as soon as parents got it. In any case, any income was parents', according to indictment, which is now a conviction in full. So client should have amended, but did not have the $. Can he amend now? | |
TheTinCook (talk|edits) said: | 14 August 2007 |
| Yeah, he can ammend, but he can't collect the refund. | |
TheTinCook (talk|edits) said: | 14 August 2007 |
| It depends on the facts. | |
| 14 August 2007 | |
| All income apparently was an error.
Question is whether the statute of limitations bars amending to reduce tax. Any idea where I can find authority on this? I spent 3 hours in RIA, found rules on refunds, assessments but it assumes that old tax would have been paid. | |
TheTinCook (talk|edits) said: | 14 August 2007 |
| No, the statute of limitations doesn't bar amending to reduce tax due. | |
| 15 August 2007 | |
| Agreed. He can amend to reduce the tax due. We do so frequently. | |
