Claims for Refund
Accuracy-related penalty = to 20% of the underpayment of tax may be imposed if the underpayment of tax is attributable to one or more of the following:
1) negligence or disregard of the tax rules and regulations; 2) any substantial understatement of income tax; 3) any substantial valuation overstatement; 4) any substantial overstatement of pension liabilities; or 5) any substantial gift or estate tax valuation understatement.
Form 843 should be used to file a refund claim for taxes other than income taxes.
Form 1045 may be used by taxpayers other than corp. to apply for similar adjustments.
Individual to claim a refund of erroneously paid income taxes. Form 1040X, Amended US Individual Income Tax Return, should be used to claim a refund of erroneously paid income taxes.
Form 1139 may be used by a corp. to file for a tentative adjustment or refund of taxes when an overpayment of taxes for a prior year results from the carryback of a current year's net operating loss or net capital loss.
Date by which a taxpayer must file an amended return to claim a refund of tax paid on a calendar-year 2014 return. A taxpayer must file an amended return to claim a refund within 3 years from the date a return was filed, or 2 years from the date of payment of tax, whichever is later.
If a return is filed before its due date, it is treated as filed on its due date. Thus, the taxpayer's 2014 calendar-year return that was filed on March 15, 2015, is treated as filed on April 15, 2015. Therefore, an amended return to claim a refund must be filed not later than April 15, 2018.
Penalties for late filing and late payment would be computed. The late filing and late payment penalties are based on the amount of net tax due.
If a taxpayer's tax return indicated a tax liability of $50,000, and $45,000 of taxes were withheld, the late filing and late payment penalties would be based on the $5,000 of tax that is owed.
Date by which a refund claim must be filed if an individual paid income tax during 2014 but did not file a tax return. An individual must file a claim for refund within 3 years from the date a return was filed, or 2 years from the date of payment of tax, whichever is later.
If no return was filed, the claim for refund must be filed within two years from the date that the tax was paid.
Date by which a refund claim due to worthless security must be filed. The normal 3 year statute of limitations is extended to 7 years for refund claims resulting from bad debts or worthless securities.
Since the securities became worthless during 2013, and Baker's 2013 return was filed on April 15, 2014, Baker's refund claim must be filed no later than April 15, 2021.
The penalty for gift or estate tax valuation understatement may apply if the value of property on a gift or estate tax return is 50% or less of the amount determined to be correct.
The penalty for a substantial income tax valuation overstatement may apply if the value, or adjusted basis, of property is 200% or more of the amount determined to be correct.
