Side effect of IRS extension of filing deadline

I vote "no."

Unlike the 4/17 due date, which is grounded in law (IRC

7503), this seems to be general noblesse oblige on the part of the IRS, using the administrative discretion that they have. I wouldn't rely on it for anything other than what they specifically cite.

-- Phil Marti Clarksburg, MD

No.

9543,00.html Frequently Asked Questions about the April 16, 2007, Storm Relief Q: Does the storm relief apply to the individual tax refund claims for tax year 2003 where the regular three-year statute of limitations is expiring? A: No. We do not have the authority to extend the statute of limitations for the filing of the refund claims or any other time sensitive acts unless there is a Presidential disaster declaration.

Q: Does the storm relief apply to the individual tax refund claims for tax year 2003 where the regular three-year statute of limitations is expiring? A: No. We do not have the authority to extend the statute of limitations for the filing of the refund claims or any other time sensitive acts unless there is a Presidential disaster declaration.

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-- Don EA in Upstate NY

The statute of limitiations is three years from the original filing deadline date in 2003, and therefore has nothing to do with 2007 filing deadlines or extensions.

I agree.

IRS cannot extend statutory deadlines or else there effectively would never be a statute of limitations (i.e. the IRS could extend the period indefinitely and audit someone after 3 years at will).

Nope. Tax year closed out April 15th.

ChEAr$, Harlan Lunsford, EA n LA

No.

9543,00.html. Frequently Asked Questions about the April 16, 2007, Storm Relief Q: Does the storm relief apply to the individual tax refund claims for tax year 2003 where the regular three-year statute of limitations is expiring? A: No. We do not have the authority to extend the statute of limitations for the filing of the refund claims or any other time sensitive acts unless there is a Presidential disaster declaration. Bob Sandler

There are a couple of nuances here. First the deadline for

2003 amended returns is 4/15/2007 or 3 years from the date the 2003 original return was filed, whichever is later. Second, assuming a timely 2003 return, since the 3 year statute expired on a Sunday and the following Monday was a DC holiday, IRC 7503 treats a claim filed 4/17/2007 as timely.

-- Phil Marti Clarksburg, MD

The IRS website stated that 4/17 is the deadline for 2003 returns....not sure about the storms though

In the case of fraud, the IRS can audit at will without regard to the timeframe.

Taxpayers with a balance due have, in my opinion, arranged their affairs well if that arrangement includes filing and paying at the last minute.

Moderator: Our colleague Dr. Brown was referring to taxpayers who have refunds coming and find themselves up against the three year refund statute.

Actually the instructions to the form 1040x say "must be received within three years after the date you filed your original return or within two years after the date you paid the tax, whichever is later." I take that to mean that if one filed a 2003 return on March

2nd, 2004, then they have until March 2nd 2007 to properly amend. ChEAr$, Harlan Lunsford, EA n LA

My understanding was that the statute of limitations ran three years from the date filed or the date "due," whichever was later. But that's a mistake. The time for the IRS to assess additional tax is three years from the date a return is filed or the date due, whichever is later. See IRS § 6501. But the time for claiming a refund by the taxpayer is different. Under §6511, as Harlan noted, the claim must be made within three years of when the return was filed (irrespective of when it was due) or two years from when the tax was paid. Stu

You missed the last sentence of the paragraph in the instructions: File Form 1040X only after you have filed your original return. Generally, for a credit or refund, Form 1040X must be filed within 3 years after the date you filed the original return or within 2 years after the date you paid the tax, whichever is later. A return filed early is considered filed on the due date.

IRC 6513 sets the date as the original due date for early returns.

-- Phil Marti Clarksburg, MD