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IRS Reminds Taxpayers of Upcoming Deadline to File for 2019 Tax Refunds

The Internal Revenue Service (IRS) issued a news release reminding taxpayers to submit their 2019 income tax returns by July 17, 2023, to claim their refunds. Internal Revenue Code Section 6511 provides the period in which a taxpayer may request a refund or credit:

Claim for credit or refund of an overpayment of any tax imposed by this title in respect of which tax the taxpayer is required to file a return shall be filed by the taxpayer within 3 years from the time the return was filed or 2 years from the time the tax was paid, whichever of such periods expires the later, or if no return was filed by the taxpayer, within 2 years from the time the tax was paid.

Practice Point: There is a misconception that the IRS will automatically refund an overpayment to a taxpayer, however, that is not typically the case. Indeed, you may have an overpayment sitting in an account for a specific tax year (e.g., 2020) but the IRS will not typically provide notice of the overpayment. Many times, the only way to know whether you have a credit balance on an account is to request a transcript of the account (e.g., Form 945, 1040 or 1120) for a specific tax year. It’s good practice to request a transcript for a tax year before the period outlined in IRC Section 6511 has expired. That way you can file a claim for a refund before the period expires. If you don’t, the IRS can (and routinely does) take the overpayment.

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Weekly IRS Roundup September 3 – 7, 2018

Presented below is our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of September 3 – 7, 2018:

September 4, 2018: The IRS reminded taxpayers that they have until September 28, 2018, to apply for the Offshore Voluntary Disclosure Program.

September 5, 2018: In response to taxpayer inquiries, the IRS clarified that taxpayers generally can deduct business-related payments to charities or governmental entities even if they also receive a state or local tax credit.

September 6, 2018: The IRS released a Practice Unit on “Determining an Individual’s Residency for Treaty Purposes.”

September 6, 2018: The IRS published Revenue Procedure 2018-47, which provides guidance to regulated investment companies regarding the application of the section 4982 excise tax to amounts included in income under the new Internal Revenue Code (Code) Section 965 transition tax.

September 7, 2018: The IRS published Revenue Ruling 2018-25, establishing the interest rates applicable to over- and under-payments of tax.

September 7, 2018: The IRS released PMTA 2018-016, concluding that it can use it math error authority, not only on intake and before refunds have been issued, but also anytime within the three-year statute of limitations period under Code Section 6501(a).

September 7, 2018: The IRS released its weekly list of written determinations (e.g., Private Letter Rulings, Technical Advice Memorandum and Chief Counsel Advice).

Special thanks to Kevin Hall in our DC office for this week’s roundup.

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