Amended Returns

You are wrong about always owing a balance due. The three year statute of limitations applies to both the IRS and to the taxpayer. Since you are talking about amending returns, I must assume that returns were filed. The 2003 return was due in April 2004. Three years later is April 2007. Thus, 2003 is a closed year, whether you are talking a refund or an additional balance due. Lanny K. Williams, CPA Nawarat, Williams & Co., Ltd. Income Tax Services for Expatriate Americans

Let's say that the 2003 tax as assessed (more than 3 years ago) is $1,000 more than it should be. He can pay the $850 and, within 2 years of the payment, claim a refund based on the overassessment. The $150 is lost.

-- Phil Marti Clarksburg, MD

"Pats Fan" wrote

He can file an amended return and pay at any time.

The sooner the better to minimize interest and penalties (if any).

If there is additional income, and maybe also a credit that is due to him (ie: not claimed on the original return), then by all means, file for the credit as well. While any refundable credit won't be refunded based on statute limits, it can't hurt to put it in there to reduce any liability.

-- Paul A. Thomas, CPA Athens, Georgia

I'm not sure where your confusion is coming from. There are two possible dates of interest and the deadline for filing an amended return is the later of those two dates. (1) 3 years after filing. The deadline for filing the 2003 return was April 15, 2004. If he filed his return by then, the last date for amending is April 15, 2007. If he filed for an extension or just plain filed late, then the last date for amending is three years from the date he filed. So it really depends on when he filed his original return in determining this date. (2) 2 years after paying the tax. If he filed on time, and the IRS sent him a notice in 2005 that he owed more tax and he paid that tax on February 5, 2006, then the last date he could amend his return is two years past the date he paid the tax, Feb. 5, 2008. In this example, this would be later than 3 years past the filing deadline. Hope this makes it clear. Dennis