(B) Limit where claim not filed within 3-year period

Aug 28, 2010 1 Replies

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removeps-groups 15 years ago

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(B) Limit where claim not filed within 3-year period If the claim was not filed within such 3-year period, the amount of the credit or refund shall not exceed the portion of the tax paid during the 2 years immediately preceding the filing of the claim.

What does the above mean? The complicated word is "portion". Not sure what it means.

I was looking at my relative's tax return for 2006, filed 4/15/2007. The tax was overpaid by $225 because they reported 100% of social security income as taxable. Is there any hope of a refund?

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Arthur Kamlet 15 years ago

Too late if the tax due was also paid 4/15/07

Here's an example of what they mean:

File 2006 return and pay calculated tax of $4000 on 4/15/07.

Receive a CP2000 suggesting you owe another $1500, and you pay that on 8/1/08.

On 6/15/10 you discover a two mistakes. One mistake meant the entire

1500 was miscalculated and should not have been paid and the other was an overpayment of 1000 unrelated to the CP2000.

You're out of luck on the 1000 but can still claim the 1500 since you paid it less than two years prior.

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