Need tax advice, can I amend my 1995 taxes?

[RossMAN]

Ok here's the scoop.

1995: I worked two jobs, a full time bank job and a part time job.

April 15, 1996: My 1995 federal and Oregon state income taxes are due, none were filed.

April 15, 1999: 3 year deadline to file my 1995 taxes is today. So around 4:00 PM I'm at the IRS federal offices in downtown Portland trying to file my own federal and state income taxes (which I have never done before - yes I'm a lazy ass and usually pay my accountant to do my taxes). Of course I came unprepared and didn't have any of my W-2's with me, hehe. The IRS typed in my name and social security number but only my part time job's W-2 shows on their records so they print out the info. The income for this part time job is piddly like $2,500 for 1995. They find no record of my full time job, specifically the amount I earned. I ask them what should I do? They recommend I at least file what information I currently have and know is accurate. So I file my federal and state income tax returns only using my part time job salary.

Questions you might ask me:
1) Why Ross, why Ross, why Ross? Because I'm lazy.
2) Aren't you going to have like major fines and interest and penalties and jail time? No because the government owes me money. In the beginning of 1996 I called my accountant giving her the salaries for both jobs and she calculated that my total refund is around $700.
3) Did you file for 1996, 1997, 1998, 1999 and 2000? Yes.
4) So then why did you not file for 1995 you ^&%$! Ferengi? See above #1.

Questions for you:
1) After I locate my 1995 W-2 from my full time job will I be able to amend my 1995 tax returns which were filed in 1999? I have heard that you have up to 3 years from the filing date. If this is true that means my deadline to file an amendment is April 15, 2002.
2) Is it likely that I will still receive my entire $700 refund from the federal and Oregon state? If not, how can I find out the adjusted amount?
3) How much would a typical accountant charge to file an amendment for taxes? If it's easy enough I just might file the amendment myself.
4) A year later in 2000 I called the IRS helpline and spoke with a friendly IRS employee who gave me her first name, last name and badge number. She said this information is correct and that YES I can file an amendment up until April 15, 2002 and receive a refund (she did not mention if I would receive the complete refund or not). I thought this is not good, the IRS is telling me good news? So I asked her to re-confirm this with her supervisor, she said he confirms the same info. So I also got his first name, last name and badge number. In my notes I recorded the date and time I spoke with the IRS employee. What if the IRS employee was incorrect in giving me this information? Do I have any recourse?

Any help you guys can provide would be greatly appreciated.

 

[cipher00]

Whoa. This one *is* tricky.

Generally, yes, you have three years to amend a return, and it might be that since you filed late, you can take advantage of this. The three year rule generally (also?) means that your personal statute of limitations runs three years from the later of your filing or the due date to keep records, etc., after which the IRS can't come back and ask for more.

BTW, it makes no difference what IRS employees tell you. The Code is the Code, and not what some telephone person says it is.

If you're sure of your numbers, it's worth one more chat with the IRS folks, and maybe a refile. Refiling isn't difficult, and there should be 1995 instructions around somewhere, or, if you want, you can go to the IRS and ask them for help. They just might.

Expect to do a lot of explaining. Good luck.

 

[shifrbv]

"BTW, it makes no difference what IRS employees tell you. The Code is the Code, and not what some telephone person says it is."

I second that. I've been having the same type of situation with my 1997 taxes. I've been told about a hundred different things by different IRS agents and it's been about 5 months now and I'm still working with them on it. Even if you have a refund coming, they can still assess penalties for not filing (which the minimum is $100). And in this economic climate today, they are finding every excuse in the book to reduce restitutions. I found out the hard way because my spouse didn't file their 1997 taxes and it held up our 2000 refund (which we still haven't received).

Incidently, in my case, don't let the IRS do your return for you. On mine, they went ahead and filed their own copy of my return (which I did a paper copy and was supposed to receive a refund as well). Their stupid employees added all of my stock and bond holdings (not capital gains, but actual stocks and bonds - what idiots) for that year to my wages which made me come out in a much higher tax bracket. I'm now working with the Tax Advocacy office to get them to correct their errors because they just ignore me whenever I try to get them to take action on it.

Their needs to be more taxpayer protection laws against the IRS to protect people from undue burdens when the IRS makes mistakes.

 

[bunker]

RossMan, strictly out of curiousity, why are you asking us when you have an accountant? I'm not trying to be a smartass like most people would be in asking this question, I'm genuinely interested.

 

[RossMAN]

RossMan, strictly out of curiousity, why are you asking us when you have an accountant? I'm not trying to be a smartass like most people would be in asking this question, I'm genuinely interested.

Good question, she only works part time and is out on vacation this week. So that's why. Plus I've seen good tax advice given here on past occasions. Receiving my $700 tax refund sure would be nice but I'd also like the IRS to show that I filed a proper return for 1995 instead of a bogus (or incomplete) return which is what I did. If I get back $300 or more I'll be content.

Thanks for all the replies.

Anyone else?

 

[johndoe52]

I think you can only go back 3 years. I'm not sure though.

 

[Frglss]

I thought 3 years was the limit for amending federal tax returns as well.

 

[RossMAN]

johndoe52 & Frglss - You're probably right, but isn't it 3 years from the filing date (April 15, 1999)?

That's the question.

 

[EagleKeeper]

Water under the bridge. Both you and IRS had to do something by 16 April 1999. For IRS to prove fraud they had until 16 April 2001.

If you really are worried, write a check for 1/3 the amount of the missing W2, less withholding and send it to the treasury as a "donation". Then use the donation on your Schedule A for 2001 taxes.

 

[RossMAN]

If you're right and it's "water under the bridge" then I screwed myself over by 1) Losing my entire refund and 2) I didn't file an accurate tax return.

%^$!

 

[C'DaleRider]

From the IRS web site....interesting what searching does for you...........



<< Form 1040X can be used to correct an individual Form 1040 income tax return filed for any year for which the period of limitation has not expired (usually 3 years after the due date of the return filed, or 2 years after the tax was paid, whichever is later). >>



So, you have 3 years from the time the return was filed to amend it.

 

[kranky]

According to IRS Pub. 17 (on my TurboTax Deluxe CD):
Late-filed return. If you did not file an original return when it was due, you generally can claim a refund by filing your return within 3 years from the time the tax was paid. The return must be received by the Internal Revenue Service within the 3-year period.

Limit on amount of refund. If you file your claim within 3 years after the date you filed your return, the credit or refund cannot be more than the part of the tax paid within the 3-year period (plus any extension of time for filing your return) immediately before you filed the claim.

Tax paid. Payments made before the due date (without regard to extensions) of the original return are considered paid on the due date. Examples include federal income tax withheld from wages and estimated income tax.

The way I read this is that you could file an amended return because you're within the 3-year window from when you FILED, but because the tax was paid BEFORE the 3-year window, you can't go back and get it.

 

[C'DaleRider]

Oh, and shifrbv....

<< Even if you have a refund coming, they can still assess penalties for not filing (which the minimum is $100). >>

....WRONG!


Again, from the IRS, Publication 17:




<< Late filing penalties are based on the amount owed. If you have a refund coming there will be no penalty. >>




A link to this is HERE.