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Amended Return Time Frame

Technical topics regarding tax preparation.
#1
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8-Jan-2016 12:56pm
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NC
Taxpayers timely filed their 2014 tax return. In August, 2016 the IRS sent them a CP2000 notice for additional income and tax due. Taxpayers paid the tax on May 24, 2017. The change was related to a stock sale with no basis reported so the IRS did not give them a deduction for the basis. From reviewing the instructions it looks like an amended return would have been required to be filed by May 24, 2019, two years after payment. Of course these folks prepared their return and just walked in my door yesterday.

Am I understanding this right? If anyone has any other suggestions, it would be appreciated.

Thanks!
 

#2
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Chicago, IL
Yes it looks like they are out of luck. A claim for refund must be filed either 3 years from the date the return was filed or 2 years from the time the tax was paid. The only relief would be if the SOL was tolled, for example medical reasons.
 

#3
HowardS  
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Southern Pines, NC
Of course these folks prepared their return and just walked in my door yesterday.


:lol: :lol: :lol:
I suffer from depreciation.
 

#4
ode923  
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CarolinaCPA wrote:Taxpayers timely filed their 2014 tax return. In August, 2016 the IRS sent them a CP2000 notice for additional income and tax due. Taxpayers paid the tax on May 24, 2017. The change was related to a stock sale with no basis reported so the IRS did not give them a deduction for the basis. From reviewing the instructions it looks like an amended return would have been required to be filed by May 24, 2019, two years after payment. Of course these folks prepared their return and just walked in my door yesterday.

Am I understanding this right? If anyone has any other suggestions, it would be appreciated.

Thanks!


Just dealt with a similar situation. I read the rules exactly as you do. The closest deadline that would've benefited them is the 2 year payment deadline. I believe the medical exception nightsnorkeler is mentioning is IRC § 6511(h)(2).
 

#5
Frankly  
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ode923 wrote: I believe the medical exception nightsnorkeler is mentioning is IRC § 6511(h)(2).

For a joint return, both spouses would have to be impaired and unable to file.
 

#6
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5
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8-Jan-2016 12:56pm
Location:
NC
Unfortunately, the medical exception is not going to work.

Thanks so much for your responses.
 


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