Question

3. Janet thinks that she may have made an error on a Federal income tax (FIT) return that she filed in a prior year, whereby she overpaid her FIT. If true, she would be entitled to a FIT refund if she files a timely amended FIT return claiming the refund. As she is not familiar with the FIT law, she contacts you because she would like to read the actual law in this area that specifies the time by which she must file the amended return for it to be “timely.” Based on a keyword search in Checkpoint, identify what IRC section and subsection provides guidance on the time requirement by which a taxpayer may claim a refund of an overpayment of FIT attributable to a previously filed FIT return.

Your response should appear as follows:

§ ______(_____)

Answer 1

Sec. 6511 Subsection (a)

Sec. 6511 Subsection (a) deals with the limitation period for filing amended returns for claiming refunds or tax credits. This section / subsection provides that to claim a credit or refund, a taxpayer must file the amended return three years from the date of filing the tax return or two years from the date the tax was paid, whichever is later.

For guidance of the student, the relevant portion of Section 6511 is quoted as below:

"Sec. 6511 (a) Period of limitation on filing claim

Claim for credit or refund of an overpayment of any tax imposed by this title in respect of which tax the taxpayer is required to file a return shall be filed by the taxpayer within 3 years from the time the return was filed or 2 years from the time the tax was paid, whichever of such periods expires the later, or if no return was filed by the taxpayer, within 2 years from the time the tax was paid. Claim for credit or refund of an overpayment of any tax imposed by this title which is required to be paid by means of a stamp shall be filed by the taxpayer within 3 years from the time the tax was paid."

"Sec. 6511(b)Limitation on allowance of credits and refunds(1)Filing of claim within prescribed period

No credit or refund shall be allowed or made after the expiration of the period of limitation prescribed in subsection (a) for the filing of a claim for credit or refund, unless a claim for credit or refund is filed by the taxpayer within such period."