Refund lookback limits apply to late-filed claims

Plain-English summary

Chief Counsel's advice explains how the refund limitations in IRC § 6511 apply when a taxpayer files an income tax return late. A late-filed return may satisfy the three-year claim period under § 6511(a), but § 6511(b)(2)(A) separately limits the refund to taxes paid during the applicable three-year lookback period, including an allowable filing extension. Withholding and estimated tax payments are generally treated as paid on the date specified by § 6513(b), which in the described facts falls outside that lookback period. The advice concludes that those payments cannot be refunded, although other payments within the lookback period could qualify if the taxpayer overpaid.

Ruling snapshot

• Question: Can withholding or estimated-tax payments be refunded when a claim is filed after the applicable lookback period?
• Outcome: Advice given
• Key authorities: IRC §§ 6511(a), 6511(b)(2)(A), and 6513(b); Rev. Rul. 76-511

Full text (IRS public release)

ID: CCA_2012041213454516 Number: 201220033
Release Date: 5/18/2012
Office: --------------
UILC: 6511.01-00, 6511.01-03, 6511.02-
04, 6511.09-00

From: -----------------
Sent: Thursday, April 12, 2012 1:45:50 PM
To: -----------------
Cc:
Subject: RE: Claim for Refund Question

Take a look at Rev. Rul. 76-511. There are two parts of section 6511 that have to be
satisfied. Omohundro, Miller, and the revenue ruling confirm that for purposes of a
claim for refund made on a late-filed income tax return, the claim satisfies the three-year
period under section 6511(a). However, section 6511(b) provides a limit on the amount
of the refund that is allowable. Section 6511(b)(2)(A) provides that when the three-year
period of section 6511(a) is satisfied, the amount of the refund that is allowable is the
amount of tax paid within the three-year period (plus the period of any extension of time to
file) preceding the filing of the claim ("lookback period"). Thus for a claim filed on -----
-----------------, only amounts paid on or after -----------------(assuming there was no
extension of time to file) may be refunded. You state that the year at issue is -------. I'm
assuming the tax at issue is withholding and/or estimated tax, which pursuant to section
6513(b) would be deemed paid on -------------------, which would be well outside of the
three-year lookback period. Accordingly, the taxpayer would not be entitled to a refund
of any of those payments. Of course, if the taxpayer made any other payments that fell
within the lookback period then the taxpayer might be entitled to a refund of those
payments (assuming the taxpayer actually overpaid their taxes).

Please let me know if you have any questions.

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