Question

IRS Practice & Procedure

On April 2, 20x1, Sam filed his 20x0 income tax return, which showed a tax due of $40,000. On June 1, 20x3, Sam filed an amended return for 20x0 that showed an additional tax of $12,000. Sam paid the additional amount. On May 18, 20x4, Sam files a claim for a refund of $18,000.

a. If Sam’s claim for a refund is correct, how much tax will he recover?

b. For what period will interest run in regard to Sam’s claim for a refund?

Answer 1

Solution:

Answer (a).

Just $12,000. Since the discount guarantee was not recorded inside three years of the documenting of the arrival, Sam is restricted to the sum he really paid amid the most recent two years (i.e., $12,000). § 6511(b)(2)(B).

Answer (b).

Sam isn't qualified for enthusiasm on the $12,000 except if the IRS neglected to make the discount inside 45 days of the revised return recording date (May 18, 20x4). In the event that the discount isn't made by July 2, 20x4, intrigue accumulates from the date of the now-found over installment (June 1, 20x3) through the discount installment date.

§ 6611(e), Reg. § 301.6611-1(j).