File your tax returns!

If you are in the situation where you have paid more than you owe on your Federal Income taxes to the Internal Revenue Service (IRS) please be aware that you must file your tax return within the 3 years statute of limitations from when the tax was originally due to obtain a refund. Further, the IRS has a 10 year statute of limitations on collecting any unpaid taxes from the day the taxes were due. The following example may clear up any confusion, if you did not file a tax return in 2007 and you paid more Federal Income taxes than you owe, you have until April 15th 2011 to obtain a refund from the IRS. Because the IRS statute is unambiguous, the chances of obtaining a judgment from a tax court in your favor after the statutory period has passed is slim to none. The only exception to the statutory rule found in the case law is whether the excess payment could be defined as a deposit paid to the IRS to defend against any potential deficiency claim by the IRS. However, the rules and the factual situation required to define any excess payment as a deposit is complicated and may not work in every situation. 

For more information on tax problems and solutions, visit tonyfamlaw.com.