Saturday, December 5, 2009

IRS told me to file 2001-2004 and now say too late for 2001 and 2002. What can I do to get this mone

I filed my 2005 tax return as was getting a pretty sizable return. After calling the IRS they told me that I would have to file for 2001 - 2004 to make sure that I didn't owe them any money before they would give me the refund. I filed the taxes as they requested (for each year I had paid too much and was owed money) and they released the 2005 tax return and sent me the checks for 2003 and 2004, but received two letters saying that it was too late to get a refund for 2001 and 2002. After I called back I was told that they just wanted to have those years and file, but they would not be sending me the refunds. If they are the ones who requested me to file the returns shouldn't they send me the refunds? What can I do to get the refunds?



IRS told me to file 2001-2004 and now say too late for 2001 and 2002. What can I do to get this money?ballet theater



You can not get the refunds. There is a three-year statute of limitations on refunds, but a much longer one for a balance due. The IRS normally asks for the past six years to be filed, though they can kindly reduce it to three. It would appear your agent was not so kindly.



I'm sure you've learned your lesson now, albeit the hard way: File your return early to ensure you don't lose your refund.



IRS told me to file 2001-2004 and now say too late for 2001 and 2002. What can I do to get this money?chicago theater opera theater



Lizzit is right. The IRS isn't saying they won't accept returns from more than 3 years back, what they are saying is they won't issue refunds for returns filed more than 3 years after they are due. There is no limitation for how far back you can file your return, there is no limitation for how far back you will owe on a return, but there is a limitation for how far back you will get a refund on a return. The reason they insisted on seeing '01 and '02 was, if you owed, they wanted to subtract that from what you were getting back.



Ironically, if your '01 showed a $100 refund and your '02 showed you owing $100, they would have ignored the '01 refund and subtracted the $100 owed from '02 from to your '05 refund.



April 15th is Tax Day. That means something. I'm sure you knew what. You can't escape it on the news, at work, everywhere. Remember all those W-2s and tax forms you get in the mail each year? Now you are paying the price for your indisgression. Not only could you have more money in your pocket, but you could have had it much earlier. Most tax returns (especially for people who aren't rich) provide refunds, so it is bad for many reasons not filing on time. If you have a valid reason for not filing (spouse said he took care of it and didn't, you were overseas with the military, you were incapacitated, etc.), you may be able to strike a deal with the IRS. It is worth a shot.



(the last paragraph was eliminated based on Steve F's feedback.)
Taxman's answer implies you can receive interest on a refund you never claimed. This is false. You can receive interest on a refund that is delayed because of the IRS. If you failed to file a return, it is your fault the refund was delayed.
Sorry about your luck. The government has a three year statute of limitations. Which means the taxpayer can only collect on the last three tax years, however, the government can go back as far as they like to get money you owe them and tack on penalties and interest. It's a hard lesson learned that you should just file your taxes on time. You are not going to get the money no matter what you do.
Nothing can be done. They have a three year cutoff for refunds. But, to balance things out, if you owe money for over three years ago you will have to pay them. Don't you wish you could rewrite the rules?
The statute of limitations for filing is two years after the date the tax was paid (if you're claiming a refund).



If you want a "creative" attempt at trying to end up with something considering the situation, check if they applied your overpayment (aka refund) to any penalties for not filing on time for 2001 and 2002. Also, talk to them and see if you can amend the 2001 and 2002 returns so that instead of requesting a refund on the form, mark the form so that they apply your overpayment to the next year's tax liability. This would be done for each year. This would allow you to adjust your W-4 currently so not so much is sent to the IRS and you would owe money at the end of next year. Because you already have some funds "in the bank" at the IRS, these would be used to satisfy the underpayment that year.



STEVEN F. - "You can receive interest on a refund that is delayed because of the IRS."



I found out you can also receive interest on a refund that is delayed because YOU filed an extension. See this link:



http://answers.yahoo.com/question/index;...

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