SOL on individuals' refund claims.(statute of limitation)

Tax Adviser, The, October, 2004 by Parker, Kenneth M.

Taxpayers lose millions of dollars annually because they do not file returns timely. Generally, taxpayers must file a claim for a credit or refund within three years from the date they filed their original return or two years from the date they paid the tax, whichever is later. If taxpayers do not file a refund claim within this period, they will not he entitled to a refund. If taxpayers do not file a return, they must file a refund claim within two years from the time they paid the tax; see Sec. 6511 (a).

The Tax Court can consider taxes paid during the three-year period preceding a deficiency notice's date in determining any refund due to nonfilers. This means that if taxpayers do not file a return, receive a deficiency notice in the third year after the...

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