Tax refund vs. Tax owed
'94 & '95 taxes were recently filed.
'94 refund was $328 & I didn't get.
'95 owed was $142 & I paid.
IRS now wants penalties & interest.
I contend the refund should be con-
sidered a credit: I should not owe
penalties & interest; & I should get back my $142. How much of this is supported by law as opposed to wish-
ful thinking?
1 Answer from Attorneys
Re: Tax refund vs. Tax owed
Sadly, you are not entitled to the refunds (either as direct refunds or credits against other years). To get a refund (and a credit is just another form of refund), you have to file the claim (i.e. the tax return showing the overpayment) by the later of two years from the date of payment of the tax to be refunded, or three years from the due date of the return. On late filed returns like this the only thing you can recover is what you have paid (if anything) within the two years prior to the filing of the claim for the year in question.
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