Discussion Archives:Claiming credit for W-2 tax withholding for tax return filed late

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Discussion Forum Index --> Advanced Tax Questions --> Claiming credit for W-2 tax withholding for tax return filed late


Discussion Forum Index --> Tax Questions --> Claiming credit for W-2 tax withholding for tax return filed late

Vahid (talk|edits) said:

11 February 2010
Taxpayer (TP) has not filed 2004 through 2008 returns. IRS has done substitute returns for this TP based on info they have and given credit for the withholding taxes that TP has paid on W-2 but giving no deduction thatthe TP is entitled to. I file the returns and claim overpayment credit to be appled to following years. IRS claims that becasue the returns were not filed within the three years limitation period to claim credit for withholding that the TP is barred from claiming these credits.

Question is does it matter whether IRS files the substitute returns or TP files them to claim the withholding credit so long as:

1. the returns are filed within the statutory period or,

2. they are filed later than three years but IRS gave them credit for withholding when they did substitute return.

KathiJud (talk|edits) said:

11 February 2010
I think you may be missing the point. IRS and your returns both gave the TP credit for W-2 tax withheld. Apparently those years gave rise to potential refunds of overpaid tax. This overpaid tax became the property of IRS after a statutory period and cannot be applied to a future year. You must claim your refunds within the statutory period or lose them.
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