Client may lose refund when practitioner fails to follow procedural guidelines
Article Abstract:
Tax refund claims are examined as to: type of claim, due dates for filing claims, and preparation or presentation of the claim. Refund claims may be part of the original tax return, may be filed as special corrections of earlier returns, or may be presented in court following the payment of an allegedly erroneous IRS assessment. Six methods for presenting tax refund claims in Tax Courts, Claims Courts, or district courts are explained. Claims filed by form may apply to returns filed as long ago as seven years. Full tax recovery is, however, possible only when claims are filed within three years. Rules governing refund claims vary depending upon the situation causing the claim: claims may be for overpayment of tax, worthless securities, operating losses not recognized, and loss carrybacks or carryforwards. Refund claims can also be avoided by nonpayment of current taxes and appearance in Tax Court.
Publication Name: Taxation for Accountants
Subject: Business
ISSN: 0040-0165
Year: 1987
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Proper procedures can help to avoid preparer penalties
Article Abstract:
Tax consultants can be penalized for breach of professional standards, for acts of professional malpractice and for negligence of preparer responsibilities. Although penalties are generally negligible in terms of their monetary value, they can cause considerable damage to the tax consultant's professional reputation and may even prompt the IRS and professional organizations to implement disciplinary measures. There are several preparer standards that should be observed to avoid penalties, such as those in Secs. 6694, 6695, 6700, 6701, and Treasury Circular 230. In addition, tax consultants should follow proper office procedures, including the use of a client organizer or data sheet to ensure that vital information is not overlooked, compliance with procedures for reviewing preparation of the return, and observance of procedures for assessment of client-provided information for completeness.
Publication Name: Taxation for Accountants
Subject: Business
ISSN: 0040-0165
Year: 1995
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Protective claims preserve taxpayer's right to refund or credit
Article Abstract:
A protective claim is a document that a taxpayer can file with the IRS in order to preserve and protect the right to a refund by preventing expiration of the statute of limitations. Filing a protective claim also protects the taxpayer's right to sue for refund in Claims Court or district court. Circumstances under which filing a protective claim may be appropriate, together with the content and form of such a claim, are discussed.
Publication Name: Taxation for Accountants
Subject: Business
ISSN: 0040-0165
Year: 1988
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