I have foreign dividend income, but rarely enough income to use the Foreign Tax Credit. In 2007 I had substantial income, so I had an accountant prepare my taxes. In April 2011 he filed an amended return to carry back $2,200 of FTC from 2008 to
2007.
My son had the same situation; I filed his amended 2007 return and he got a $400 check back in 2 months.
I never heard back from the IRS about my return. In November I called them and was told that I had listed "various" for the countries involved, rather than the specific countries, so my amended return was rejected. My accountant fixed it by listing all 25 countries. I called in March and was told no one there understood it; it had gone through 3 desks there and would be transferred to another office. I would hear something in 45 days. I got a letter saying they were really busy and would hear something in 45 days. Last week I got a letter saying they were really busy and would hear something in 45 days.
In 2010 I also had significant income but the accountant failed to carry forward my 2009 FTC. He acknowledged his error and filed an amended return. It took a few months, but the IRS accepted it and agreed to a refund. (he did not list the countries because he has never listed countries) Same issue; why can they deal with that, but not with my 2007 return?
So, what the heck is going on my 2007 return, and is there anything I can do to get my $2,200? The accountant says he can file a complaint, but it is not cost effective considering the small amount involved.