2 Year Amended Return rule

Hi all,

Hope everyone is relaxing before we start up the craziness again in 2 months.

Question please - the 2 year after tax paid amended rule always gets the best of me.

I have a new client who filed their 2017 Federal return fairly recently (March 2021) and I just reviewed this return and see they missed out on a significant business expense ($12K). Their 2017 Original Federal return filed in March 2021 shows a balance of $5k that has not yet been paid. This business expense would lower their 2017 balance to only $1K.

Am I within the time frame to make this change now via an amended 2017 1040-X?

Thanks as always !

Will

It's a two prong test if I recall correctly, with a second one being within two years of when the taxes are paid--it is the later of the two. It seems to me you can file an amended return even though you are past the three year rule for a timely filed return since you fall under two year for when taxes were paid, and they have not been paid.

If the tax has not been paid, how can your client file a claim for refund?