Refund statute of limitation - amended 2011 return.

[Jack from Ohio]

Client filed their own 2011 return by mail on April 14, 2015.  She hurriedly filed to preserve her refund. She received the refund as filed. 

She contacted us 8 days ago to amend her return to include her home business she operated in 2011.  She is going to show a small loss, so there will be an additional small refund of approx. $95.

Here is the question:  Since the amended return will be filed after the statute has expired, will she receive the refund based on the fact that the original was filed before the statute expired?

My gut tells me no, and I have not located any documentation about this, thus I am interested in some other opinions.

Edited August 18, 2015 by Jack from Ohio

[Max W]

Any return can be amended withing three years of the filing the original.

http://www.irs.gov/uac/Nine-Facts-on-filing-an-Amended-Return

There is one exception - change in filing status.  This has to be amended within 3 years of

the original due date.

[Cathy]

Client filed their own 2011 return by mail on April 14, 2015.  She hurriedly filed to preserve her refund. She received the refund as filed. 

She contacted us 8 days ago to amend her return to include her home business she operated in 2011.  She is going to show a small loss, so there will be an additional small refund of approx. $95.

Here is the question:  Since the amended return will be filed after the statute has expired, will she receive the refund based on the fact that the original was filed before the statute expired?

My gut tells me no, and I have not located any documentation about this, thus I am interested in some other opinions.

From Publication 17:

Time for filing a claim for refund.    Generally, you must file your claim for a credit or refund within 3 years after the date you filed your original return or within 2 years after the date you paid the tax, whichever is later. Returns filed before the due date (without regard to extensions) are considered filed on the due date (even if the due date was a Saturday, Sunday, or legal holiday). These time periods are suspended while you are financially disabled, discussed later.

 If the last day for claiming a credit or refund is a Saturday, Sunday, or legal holiday, you can file the claim on the next business day.

If you do not file a claim within this period, you may not be entitled to a credit or a refund.

 

My reply:  Tax advice including research = $95

                 Amended Return: $250-minimum

 

Let her be the judge. 

 

 

 

[Jack from Ohio]

My reply:  Tax advice including research = $95

                 Amended Return: $250-minimum

 

Let her be the judge. 

I like the way you think!!!

[Catherine]

Well I just did an amended 2011 return for some folks - reason for amending was W-2C received in 2015.  Basically an IRS settlement with employer over a specific topic.  I think there will be a LOT of folks ticked off at their employer if they do not get their refunds.  

We'll see.

[joanmcq]

Should have filed a protective claim for refund. 

[Randall]

A side question.  If the original return has not been filed yet, is the refund deadline two years from when the tax was paid?.  Say 12/31/xxyear for W2 withholding.

[Catherine]

Should have filed a protective claim for refund. 

This one is new to me!  Will have to look it up.

[Cathy]

A side question.  If the original return has not been filed yet, is the refund deadline two years from when the tax was paid?.  Say 12/31/xxyear for W2 withholding.

Randall, 

I understand the rules to mean 2 years after you pay the additional taxes due when you file your return....OR......the LATER of the 3 years AFTER filing your return (with the exception of filing your return BEFORE the due date...in which case, the date would revert to three years after the actual due date of the return...(.or again, 2 Years after you pay the additional tax that is due after you file your return.....whichever is later.)

Just keep in mind that if the rules were talking about the taxes withheld on W-2's, there would be no need to make the confusing rule to begin with as the 3 year rule would ALWAYS be later.     Did I confuse you enough?  Please someone correct me if needed!