Today TaxMama® hears from Harry in the TaxQuips Forum, who is frustrated. “IRS is denying a refund for 2006 individual return. The individual Form 1040 return was filed in 2010 and most of the tax was paid through withholding. An amended return was filed in 2012, requesting a refund of all tax paid due to a casualty loss omitted from the original return. According to 1040-X instructions, IRS pub 556 and a call to the IRS call center, the taxpayers understood they were within the time frame that allows a refund, within three years of the filed return. The taxpayer did the due diligence that would be expected and filed a 1040-X refund claim accordingly. IRS is now denying the refund based upon IRC 6511(b)(2)(a) & IRC 6513(b)(1), which indicate no refund will be allowed more than 3 years after tax is paid although there is no reference to that in either the instructions to 1040-X, Pub 556 or the call to the IRS call center.
Essentially, our enrolled agents, Laura in Hawaii and Mike in California are correct.
If that first tax return was filed by April 15, 2010, then it was filed on time.
Once you file a tax return, you do have three years to amend it.
However, to get a refund, you must file for the refund within three years of the due date,
or within 2 years of the date it was paid. The amended return didn’t qualify for either.
I am not sure why you say the instructions to the 1040X don’t spell that out?
I looked at the instructions. Under “When to File” it says exactly that. Sorry to be the bearer of bad news.
Why didn’t the call center tell you? Who knows? They don’t get a lot of training and often make errors, or give incomplete information.
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