2011 Refund

[David]

TP sent me his 2011 information and is getting a refund.

Before I tell him it is futile to file the return because he won't get the refund since it is past the 3 year limitation, I want to make sure.

I recently read an IRS update email that said to make sure TPs file their 2011 tax returns ASAP or they may not receive their refund. Since the update said "may" that leads me to believe that we should go ahead and file and the TP may still receive his refund.

Has anyone ever file a tax return shortly after the 3 year limitation and had the client receive their refund?

Thanks.

[ILLMAS]

I would just file it and make no promise to the TP, if they get it, perfect and if not, too bad. 

 

MAS

[Jack from Ohio]

Tell them there will be no refund, charge for preparing the return and tell them to pray for divine intervention.

[MsTabbyKats]

One time a client got a NYS refund that was over the 3 year limit.  I told him....have fun with the money...but don't be surprised if they ask for it back.  That was a decade ago...and they still didn't ask.

 

But...I'd bet the clerk who processed the return made an error....rather than NY was being nice.

[mrichman333]

^{I had a T/P that filed three weeks past the deadline for refund and the IRS refused sent a letter stating she failed to file in the three year deadline and would not be receiving her refund}

[kcjenkins]

The point that should be made is that whether he gets a refund or not, he starts the SOL running, which alone is worth filing.  

[Lion EA]

Had a client that argued herself with IRS and CT over a lot of back years and did get them to keep applying those very old refunds forward as she filed each year.  It was something like 10+ years worth of returns.  Really surprised me.  But saw that only once.  For other clients, it's that letter as mentioned above for failure to file within the three year deadline blah blah blah.

[Max W]

It's worth a shot, because sometimes these things fall thru the cracks.

If an extension was filed, the refund could be gotten up to Oct 15.

[ILLMAS]

I just remember this, the IRS makes mistake sometimes that be favorable to a TP, I amended a 2009 tax return with $3K balance due in 2012, the TP was holding on to it and didn't send in until September 2013, a couple of months later TP received an IRS letter letting her know she was not going to get her $3K refund because it was more than three years.  TP called me to let me know about the notice, I reviewed it and indeed the IRS converted a balance due into a refund, told TP the IRS made a mistake and you still will owe them, spoke with agent, the agent verified the tax return and according to the records the TP indeed owed the $3K, it's been almost two years and the IRS has not contacted the TP, but I do remind her every year, be prepared when bill finally arrives.

 

MAS

[MsTabbyKats]

This is what it comes down to with hand processed returns....it depends on the quality of the hands that do the processing 

[jklcpa]

Before I tell him it is futile to file the return because he won't get the refund since it is past the 3 year limitation, I want to make sure.

 

 

He should file the return regardless so that it starts the SOL.

[SaraEA]

You have to file a claim for refund within 3 years after the due date of the return or within 2 years after the tax was paid, whichever is later.  So if a taxpayer filed a 2010 return in 2014 and paid up, s/he has until 2016 to file a claim for refund.  Since that doesn't apply to your client, he or she is outtaluck.

 

For what it's worth, Wisconsin has a 4 year SOL.  Maybe your client's state has different rules as well.

[joanmcq]

CA has a 4 year SOL too.