Form 4868 does not start limitations period

Article Abstract:

The Tax Court decided in the 'Khinda' case that the two-year look-back period for submitting a refund claim is applicable to a taxpayer who filed his tax return after his claim for refund was considered filed because his timely filed Form 4868 was found to be an unacceptable tax return or an unacceptable refund claim. The Service argued that the taxpayer was not qualified to have a refund or credit because Secs. 6512(b)(3)(A), 6512(b)(3)(B) and 6512(b)(3)(C) were all inapplicable. Sec. 6512(b)(3)(A) holds that the tax should be paid after the mailing of the deficiency notice while Sec. 6512(b)(3)(C) asks for the refund claim to be filed before the mailing of the deficiency notice. Sec. 6513(b)(3)(B), on the other hand, holds that a credit or refund is permissible if a filing of the refund claim is made on the date of the mailing of the deficiency notice. After reviewing the case, the court found that the taxpayer was not entitled to a refund.

---

Document 'filing' occurs when received by Service's mail room

Article Abstract:

The Court of Appeals for the Fourth Circuit ruled in a 1998 case that the taxpayers satisfied the 'filing' requirement when the mail room of the IRS received the documents and not when the particular appeals officer received them. In this case, taxpayers filed claims in 1994 for refund of taxes paid four years earlier. The IRS did not allow the claims and designated an appeals officer to the case, who refused to settle the claims and proposed full disallowance by requesting that the claimants waive their right to formal notice of disallowance through an execution of waivers. The taxpayers executed the waivers and sent them via mail to the IRS, which received the waivers on Dec 8, 1994, according to the mail room receipt stamp. They waited for two years to file their refund claims on Dec 17, 1996, which were then challenged by the IRS for being untimely. The arguments of the taxpayers and the bases for the decision of the court are discussed.

Tax appeals, United States. Internal Revenue Service

---

Tears cannot wash away the limitations

Article Abstract:

The Supreme Court decided in the 'Brockamp' case that the incompetence of a taxpayer does not extend the limitations period for filing a claim of refund. The case involved a senile taxpayer who mailed a $7,000 check to the IRS and a request for an automatic extension of the time to file his return. He passed away four and a half years after without filing the return. Sec 6511(a) provides that a refund claim should be submitted within three years from the date of the return or two years from the time of the payment of tax. The court reasoned that the very detailed technical language mentioned repeatedly in Sec 6511 (a),(b) and (d) does not leave any room for an equitable-tolling exception. Moreover, equitable tolling which introduces exceptions on a case-by-case basis could result in administrative difficulties because the IRS would have to deal with volumes of late refund claims.

Tax extensions

Similar abstracts:

• Abstracts: UN participation in ISY. Remote sensing in the information age. Collective trusteeship for near space: the case for UNNESA
• Abstracts: Lots of cash, little faith. Treasurers want more than the basics
• Abstracts: Focusing on technology, operations, and processes at Witco Houston. Focusing on time and teams to eliminate waste at Shingo prize-winning Ford Electronics
• Abstracts: Stock returns and classification pattern of firm-specific financial variables: empirical evidence with Finnish data
• Abstracts: The market reaction to changes in compensation contracts: a review of the evidence. Effect of risk on the use of performance-contingent compensation

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.