Hello - I'm filing a 1040x for client to clean up a mess on his 2005 return. His tax owed will go up by $500. On the 1040x, it wont let you change the "overpayment" on line 17, which he had as a $900 refund on his original
1040. This will obviously result in him owing the $500 because of the newly figured tax.
However, Line 17 says "as adjusted by the IRS". This client filed the 2005
1040 more than 3 years late, hence his refund claim for $900 was rejected by the IRS. I assume this would count as an "adjustment by the IRS" down to 0 on Line 17, since the $900 refund was never "used".
Can I do this? If so, he won't owe anything on the 2005 1040x. Thanks