Thanks for the opportunity to ask this.
I late filed for 2002-2004 in Nov 2005. For 2002, 2003 and 2004, I owed the IRS. In 2005 and 2006 the IRS owed me.
I had filed late pending a dispute outcome over 2001 taxes which was finally settled in my favor with a refund Apr 2006.
The due amounts from 2002-2004 have not yet been paid to or requested by the IRS and a change to tax law in late 2007 covered a VA benefit income for which I had in 2002 and 2003 judging it as a non-taxable benefit (below link).
I understand that the 2007 tax change would apply for three prior years in a on-time filing situation
That change, if applied to my late filed 02-03 taxes results in a refund to me for both years that more than make the 2004 taxes I owe.
My question is:
Does the three year statute of limitations (to amend taxes for a refund) start on the day I filed (8 Nov 05) for those years, the same as it would for the IRS if they were going after me to collect taxes due for the same years?
Thanks So Much for your time in even considering this.