statute of limitations re refund

Tax year 2005. Due to erroneous 1099 received from a trust, taxpayer reported and paid tax on monies that should not have been taxable. Within the 3yr limitation a 1040x was filed, indicating that only part of the money reported was received and a refund was requested for the tax on the difference. In 2009 it was determined that none of the money was to be taxed and an additional 1040x was filed but outside of the original statutory period but within 3 yrs of the first 1040x.

Irs is denying the refund based upon the statute of limitation of the original filing. Is this correct or is the statute clock re started based upon the first

1040x.

Are there any options open to obtain the refund (the amount is quite substantial) Thanks Neil

Reply to
bakern
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Original filing determines the period of limitations.

Yes.

Try the "claim of right" provisions if they apply.

However, why a 1099 from the trust and not a 1041 K-1?

Reply to
D. Stussy

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