Can I get refunds or garnishments (which occurred 6 years after the filing deadline) back when I filed my return after the 3 year period? Can those credits be rolled forward into the following year? The IRS filed a 1040A which had me owing taxes. When I filed the 1040 return it came out that I was owed a refund and that the garnishments should never have occurred.

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Originally Posted by SBLF

Can I get refunds or garnishments (which occurred 6 years after the filing deadline) back when I filed my return after the 3 year period? Can those credits be rolled forward into the following year? The IRS filed a 1040A which had me owing taxes. When I filed the 1040 return it came out that I was owed a refund and that the garnishments should never have occurred.

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Who garnished it? They clearly had a writ of garnishment to do it... and how do you know what their deadline was... they renew them from time to time and can hit you 30 years or more after you lost the case. Even after you die... they get dibs on your estate.

You have to explain this better.

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Originally Posted by smoothy

Who garnished it? They clearly had a writ of garnishment to do it...and how do you know what their deadline was...they renew them from time to time and can hit you 30 years or more after you lost the case. Even after you die...they get dibs on your estate.

You have to explain this better.

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So, say they garnished my wages in 2011 for a 2005 return. I filed the 2005 return in 2011 that said that I had a refund coming and that they should not have garnished my wages. Am I entitled to either a) get the refund back b) apply the refund amount to a later year (use the credit to say the 2006 return) or c) get the garnishment back?

You should get a refund of the money they took in the garnishment.

However, you must file Form 1040X as an amendment to the Form the IRS filed for you.

To answer the question about getting a refund for over-withholding of taxes in 2005 - the answer us no, you won't get that, nor can you apply it to your 2012 return. Reason is that any filings for a tax refund must be made within 3 years of the return's original due date. So you would have had to file by April 15 2009 to get a refund on 2005 taxes.

What ebaines says is accurate, IF the original return for 2005 was filed in 2006.

However, an IRS-filed return for 2005 was likely filed MUCH later than 2006. It is my experience that, normally, 4-5 years have passed before the IRS does the filing for you.

So, if the 2005 was filed in 2010, you have TWO years from that filing date to amend the return.

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Originally Posted by AtlantaTaxExpert

So, if the 2005 was filed in 2010, you have TWO years from that filing date to amend the return.

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Interesting. The IRS web site has some confusing information on this topic. I found this for example:

What are the consequences of not filing a tax return?

Losing your refund. There is no penalty for failure to file if you are due a refund. However, you cannot obtain a refund without filing a tax return. If you wait too long to file, you may risk losing the refund altogether. In cases where a return is not filed, the law provides most taxpayers with a three-year window of opportunity for claiming a refund.

Statutes of limitation. After the expiration of the refund statute, not only does the law prevent the issuance of a refund check, it also prevents the application of any credits, including overpayments of estimated or withholding taxes, to other tax years that are underpaid

This is from: http://www.irs.gov/newsroom/article/...178194,00.html From it I conclude that since the OP didn't file by April 2009 he lost the opportunity for any refund for 2005. But I'll be the first to admit that you have a lot more practical experience in this area.

Let me clarify with an example:

The client fails to file his 2005 return. If he HAD filed, he would have gotten a $500 refund. After multiple attempts to get him to file, the IRS files FOR him on15 September 2010, filing under the worst possible filing status, which results in him owing $2,000, plus penalties and interest.

The client has until 15 September 2012 to file an amendment to the IRS-filed return. Once he shows that he would have been entitled to the original $500 refund, the IRS reverses the $2,000 assessment and removes all penalties and interest.

The client DID forfeit the original $500 refund.

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Originally Posted by AtlantaTaxExpert

Let me clarify with an example:...The client DID forfeit the original $500 refund.

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That was my point. I interpreted your response in post #6 to mean that what I said about it being too late for the $500 would only apply in he had actually filed back in 2006. I was trying to be clear that I was referring to a refund of the original over-withholding of taxes back in 2005 (the $500 in your example); I was not saying he won't get a refund of the garnisfhment.