Question

Carolina passed away in 2017. Her granddaughter, Olivia, is the court-appointed personal representative for Carolina's estate. While sorting through her grandmother's documents, Olivia determines that, although Carolina timely filed her 2014 return, she neglected to claim all the deductions for which she was eligible. In January 2018, Olivia seeks your tax expertise on this matter. Choose the option that best describes how you should advise Olivia given these circumstances.

	Inform Olivia that regrettably, the deadline for filing an amended return has passed, and she is no longer eligible to claim the refund.
	Let her know that she has until April 17, 2018, to file Form 1040X, amending the original return.
	Inform her that, although the deadline for filing an amended return has passed, she may request a waiver. She should also file Form 1310 to claim a refund and attach a certificate showing her court appointment.
	Tell Olivia that she has until April 17, 2018, to file Form 1040X, amending the original return. She should include Form 1310 to claim a refund and attach a certificate showing her court appointment.

Answer 1

4th option would be the most appropirate considering that Carolina had filled timely return and Form 1040X can be filled within three years of the original filing deadline or within two years of actually paying the tax for that year.

Form 1040X is used to claim additional deductions or credits or to correct an error that reduces the amount of tax due of the year. It serves as a formal claim for a refund.

Moreover, Form 1310 is also required as per IRS since Carolina filed her own return and not Olivia. Had Olivia filed Carolina returns, requirement for Form 1310 was not due.

Option 1 is not applicable because IRS allows time of 3 years for orignal return from the due date. Since the dute of 2014 return was April 17, 2015, 3 years has not passed since.

In Option 2, Though time is available till April 17th 2018 but since mention of Form 1310 is not given it shall not be applicable.

In Option 3 also due date is not passes so it is inapplicable.

Note: Hi, after reading a question I was not sure how it should be framed. I have framed it in a way that we have to choose one option from the given 4 which is correct and ellaborate on it as to why it is a correct advice and why others are not. If I misunderstood it, do reach via comment section so I would reframe answer accordingly. If you are satisfied with the answer please give a like. Thanks