Delinquent 2004 1040 with refund

[BobinNJ]

After much prodding, client finally presented return info during late March, 2008. (a disregarded entity LLC)

Return resulted in overpayment of $6340 which was applied fwd. to 2005. Return was mailed on 4/14/08 and now IRS has notified that money will not be applied to 2005 because return was not rec'd. by them prior to Three Year Rule limitation.

Is there any way that this can be appealed? Anyone ever gotten relief in this situation?

Bob

[BulldogTom]

Could you argue that the disregarded entity payment was actually the schedule c payment of the individual, making the last day to file for refund on an individual return 4/15/08?

I know it is weak, but it is the best I can come up with.

Tom

Lodi, CA

[taxit]

I believe in this situation, IRS had to receive the 2004 1040 by April 15, 2008. Post marked by 4/15/2008 will not work.

[jainen]

>>this can be appealed<<

The letter should explain how to file the appeal. $6340 is a significant sum, but your client will have to decide how much he wants it. Don't expect the IRS to give in without a fight, possibly including going to tax court, so watch all your time limits very carefully and don't take any procedural shortcuts. There are a number of court cases to research and the results have been mixed depending on facts and circumstances.