alexander468
Active Member
What is the name of your state? Massachusetts
I'm filing tax returns for the estate of a deceased relative who owned a small sole proprietorship with no employees. He overpaid estimated tax for 2014 by several thousand dollars but did not file a 2014 return (to have it refunded or applied to 2015), and then there were no tax returns for several years until his death. He seemed to stop most bookkeeping in early 2015, but he saved notices and bank account statements that show enough income to require a tax return for some of his other final years but not others. He owed no tax for '15 or '16. Those are the years ('14, '15, and '16) that I've worked out so far, but I'm fairly sure based on some 1099-MISC with no withholding from later years that he did owe and the estate will need to pay tax for those later years.
In his files is an IRS notice CP81 sent in May '18 that the entire estimated tax amount that was paid in '14 was a credit on account, and the notice included the statement
I'm filing tax returns for the estate of a deceased relative who owned a small sole proprietorship with no employees. He overpaid estimated tax for 2014 by several thousand dollars but did not file a 2014 return (to have it refunded or applied to 2015), and then there were no tax returns for several years until his death. He seemed to stop most bookkeeping in early 2015, but he saved notices and bank account statements that show enough income to require a tax return for some of his other final years but not others. He owed no tax for '15 or '16. Those are the years ('14, '15, and '16) that I've worked out so far, but I'm fairly sure based on some 1099-MISC with no withholding from later years that he did owe and the estate will need to pay tax for those later years.
In his files is an IRS notice CP81 sent in May '18 that the entire estimated tax amount that was paid in '14 was a credit on account, and the notice included the statement
I have two questions: First, what are the time limits for recovering the '14 overpayment with and without having a medical reason for his failure to file? Second, should I just seek the '14 refund and pay the taxes due in later years as separate actions or file a '14 return that carries the overpayment over to '15 and then file returns for years when they weren't needed '15 and '16 continuing to carry this overpayment to returns for the years when taxes were due?If you don't file your return or contact us, you may lose this credit. The Internal Revenue Code sets strict time limits for refunding or transferring credits.