Denied my tax refunds - 3 year limit?

What is the name of your state?CA

I am a 'late filer'. But I did file, in October, for years 2000-2004.

I was 'owed' over $4000 in taxes. I filed all the required documentation, which is basically my w-2's.

I just received a letter from the IRS for each tax return that is over 3 years old. They said they would not allow my claim because I filed more than three years from when the return should have been filed.

They did not cite any laws or US code, or statutes, just a sentence 'we will not process your claim because you are over the 3 year time limit'.

I could not find any reference to this on the irs website.

In these letters, is also a dispute form, that asks ME to cite any relevant laws and legal precedence for why they should not disallow me my tax refunds. I may then send that back to a dispute agency that will 'take a look' at my dispute.

I need to know where to look, because I'm just not hip on tax resources, and if a lawyer wouldn't charge me 2K to look at this case, I would get counsel.

I wonder *what if I owed them money* would the this nebulous 3 year limit apply? So, I am a slacker, I am owed money, and they won't give it to me.

What to do, what resources, law library, etc, is out there for me?

Thanks

TITLE 26 > Subtitle F > CHAPTER 66 > Subchapter B > § 6511

§ 6511. Limitations on credit or refund

(a) Period of limitation on filing claim
Claim for credit or refund of an overpayment of any tax imposed by this title in respect of which tax the taxpayer is required to file a return shall be filed by the taxpayer within 3 years from the time the return was filed or 2 years from the time the tax was paid, whichever of such periods expires the later, or if no return was filed by the taxpayer, within 2 years from the time the tax was paid. Claim for credit or refund of an overpayment of any tax imposed by this title which is required to be paid by means of a stamp shall be filed by the taxpayer within 3 years from the time the tax was paid.
(b) Limitation on allowance of credits and refunds
(1) Filing of claim within prescribed period
No credit or refund shall be allowed or made after the expiration of the period of limitation prescribed in subsection (a) for the filing of a claim for credit or refund, unless a claim for credit or refund is filed by the taxpayer within such period.

What this means in English is that you had three years from the due date of the return to file your *late* return. Since you did not do so, they are not giving you any money for the expired tax years.

Unless you have some extenuating circumstance that caused you to be a slacker, your dispute will likely be filed in their circular file.

Snipes

Congress set the statute of limitations at 3 years to claim a refund. You can 'extend' the 3 years if you can show compelling evidence as to why you were prevented, through no fault of your own, from filing within 3 years of the due date. Examples would include being incapacitated for some time, or filing an insufficient return (not signed) & being told by the IRS that it was OK, until the S/L ran out. In such cases, the amount of time you were incapacitated extends the 3 year filing period.

And yes, if you owe, waiting 3 years to file doesn't help you at all.

Did you properly file forms 4868 and 2688 at the originally scheduled filing dates to request extension http://www.irs.gov/newsroom/article/0,,id=137750,00.html

If not, 2002 and earlier are now probably past the limit (2001 was already past the limit last April if you did not file an extension). The 3 year limit does not apply to taxes and penalties owed.

Form 4868 is now for automatic 6 month extension and 2688 is being eliminated http://www.irs.gov/newsroom/article/0,,id=150456,00.html

Any year you are due a refund, it is in your best interest to file as soon after the 1st of the year that you have all necessary documentation (and possibly adjust your W-4 if you consistantly get a big refund).

Isn't that a fun game they play? The IRS will go back as far as they want to get $$$ from you, but only 3 years to refund your overpayment to them. Heck, they won't even give you credit towards your upcoming taxes. Now, if you can show you were doing undercover DEA work in the jungles of Columbia for those years they might give you a break. Otherwise, you don't even get a kiss.

Dallas,

The burden is on the taxpayer to file. If they DO NOT FILE, yes the IRS can go back for an unlimited period of time. Once a taxpayer has filed, the IRS has only that same limitation, three years, to go back looking for errors, unless they suspect FRAUD.

Effandt,

Tax year 2002 expires on 4/17/06. It's better to actually know your facts than think you do, especially since the relevant statute is actually in the thread.

Snipes

Geez, I'm sunk here, as I wasn't in the jungles of Columbia as an undercover DEA agent.

Now, as far as compelling evidence, and please don't abuse this info here, my son was diagnosed with a rare genetic disorder that requires life-long care. I left all the paperwork for taxes in the hands of our accountant, who apparently was going through a divorce at the time, and never returned my phone calls, even when I showed up at his office, he 'wasn't there'. I don't even have my employees old payroll tax records (yikes) because I can't get them back from him. So between these two things, I am officially a slacker in filing my taxes.

Yes, I was owed big refunds. I didn't know and my accountant didn't stress the importance of filing on time - I did file extensions, but only on the corporate end (s-corp, which flows through to personal)......would that matter?

I don't suppose that a pressing life changing medical issue in the family and a deadbeat accountant would keep me out of the irs' circular file, would it?

Sounds like a soap opera. Truth is stranger than fiction.

Why would Congress pass an act like this? In California, one of the districts Rep is very hot on the 'unclaimed checks' from the irs, and that people get them. He has even posted a list of recipients on his district website. Now, what about those? Has the irs voided those old checks (go back to 97, 98 and on)?
Not applicable to my situation, just wondering. I'm more interested in what constitutes compelling evidence and whether or not I'm just wasting time trying to get my refunds.

Snipes5;

Yes, I meant for non-filers...although isn't the mistake or possible fraud limit at 7 years? My comment was more a dig at the lopsided rules that Congress has imposed on us simple-minded taxpayers.

semantic;

You could certainly give give it a try (nothing to lose now on the years that have past the limit), but I have always found the IRS to be inflexible on this. However, you may have a good cause for a SCC suit against your preparer...especially if he didn't file and you were expecting him to do so. If he has "lost" your employee tax records you need to take action fast.

I agree with Dallas, you do have a good shot with the info you have posted.

File an appeal, flood them with paperwork, doctors' notes, hospital dates for your son's medical treatment and diagnosis, detailed info on how you tried to get your accountant to comply, etc.

You may want to enlist the help of either an Enrolled Agent or the Office of the Taxpayer Advocate.

It sounds reasonable to me. Go for it.

Snipes

Thanks All,

I suppose since I'm a loser anyway if I don't try, then I might as well try.

I do appreciate the advice......