Discussion:Statute of Limitation for a Tax Refund
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Discussion Forum Index --> Consumer Questions --> Statute of Limitation for a Tax Refund
| 5 September 2006 | |
| I filed my 2002 tax return, by the April 17, 2006
deadline.. Recieved a notice - that the IRS had made an adjustment to the return and the refund check would be mailed within 4-6 weeks. After the 4-6 weeks I contacted IRS and was told my refund would not be sent, due to the Statute of Limitations.. I know my 2002 was sent timely along with my 2005 return.. What can I do? | |
Death&Taxes (talk|edits) said: | 5 September 2006 |
| I do hope you used Certifed Mail, Return Receipt Requested and wrote the receipt number at the top of the return, and on your copy. PS Form 3800 will show that the return was mailed timely, and the receipt will have date it arrived. Last year the Atlanta Center tried to deny a client a mid-five figure refund based on Statute of Limitations but when she produced the receipts, they gave her the money. A private delivery service could have also been used, but once again, I believe you would need to write the Fedex airbill [e.g.] on the return and your copy. | |
Michaelstar (talk|edits) said: | 5 September 2006 |
| I have never written any of this info on the returns itself but have used the certified mail, return receipt many many times. Also go to the UPS web site and print out the info provided by the tracking number as well - while not required, it could help the audit trail for you. If you did not send it certified mail, return receipt or a private delivery service as suggested by Death&Taxes - your going to probably experience a very expensive lesson. | |
Death&Taxes (talk|edits) said: | 5 September 2006 |
| Michael: I write the number because I was told to observe how IRS sends Deficiency Notices. At that time my tax lawyer boss explained "Anyone can send anything certified mail so that the envelope need not have contained a tax return." | |
Michaelstar (talk|edits) said: | 5 September 2006 |
| Death&Taxes - your tax lawyer boss is right - I have had many an IRS agent tell me the same thing but have prevailed every time so far. I will start writing the certified mail # on the top of the return. | |
| 5 September 2006 | |
| When you file a delinquent tax return, you can only obtain a refund for taxes paid within the two prior years. Sec. 6511(b)(2)(B). Unless your 2002 taxes were paid after April 15, 2004, then the IRS is right. | |
Death&Taxes (talk|edits) said: | 5 September 2006 |
| Sec. 6511(b)(2)(A) reads: "A) Limit where claim filed within 3-year period. If the claim was filed by the taxpayer during the 3-year period prescribed in subsection (a) the amount of the credit or refund shall not exceed the portion of the tax paid within the period, immediately preceding the filing of the claim, equal to 3 years plus the period of any extension of time for filing the return. If the tax was required to be paid by means of a stamp, the amount of the credit or refund shall not exceed the portion of the tax paid within the 3 years immediately preceding the filing of the claim." This is the nub of Carol's problem. If she cannot prove she fits within 6511(b)(2)(A), her claim falls into the section cited by IntTax. | |
| 5 September 2006 | |
| I might be missing a point, but isn't the filing date for a late return 3 years from April 15 or 3 years from the end of the extension date? If so, then a return on April 17, for the return of April 15, 2002 would fall in as a Stautue of Limitations. | |
| 5 September 2006 | |
| I think we can all agree that the refund claim and the return were part of the same document in this instance, and therefore, the refund claim was filed on the same day as the return. So, the only area of controversy is the “lookback” period for determining the total amount available for refund.
The real issue here is whether the mailing of a refund claim exactly 3 years and 2 days from April 15, 2003 would constitute a timely filing. Clearly, if the refund claim had been hand delivered to the Service Center on April 17, 2006, this would constitute a timely filing. See Revenue Ruling 66-118. However, it is less clear that a refund claim mailed on April 17, 2006 would be treated as timely since the timely mailed is timely filed rule applies generally to non-delinquent tax forms. Fortunately, under Reg § 301.7502-1(e)(2), a refund claim mailed with a U.S. postmark on or before April 17, 2006 would be timely for purposes of the lookback period. With no disrespect intended to the Internal Revenue Service, many IRS employees are not yet aware of this regulation section, which was just issued on January 11, 2001. Carol, have your accountant write a letter to the Internal Revenue Service explaining that the refund claim for 2002 was filed timely under Reg § 301.7502-1(e)(2). Of course, if your 2002 return was extended to August 15, 2003, you would have until August 15, 2006 to file the refund claim. | |
Death&Taxes (talk|edits) said: | 5 September 2006 |
| Sec 7503 governs the case where a due date falls on Saturday, Sunday or Holiday, and this holds true of refund claims. April 15, 2006 was a Saturday. | |
