Looking for a Irs Publications? Download it for free!

For information on special rules on filing claims

Limit on Amount of Refund

TIP

for an individual affected by a terrorist attack, see

Publication 3920.

If you file your claim within 3 years after filing your return,

the credit or refund cannot be more than the part of the tax

paid within the 3 years (plus the length of any extension of

Periods of financial disability. If you are an individual

time granted for filing your return) before you filed the

(not a corporation or other taxpaying entity), the period of

claim.

limitations on credits and refunds can be suspended during

periods when you cannot manage your financial affairs

Example 1.

You made estimated tax payments of

because of physical or mental impairment that is medically

$1,000 and got an automatic extension of time from April

15, 2001, to August 15, 2001, to file your 2000 income tax

determinable and either:

return. When you filed your return on that date, you paid an

•

Has lasted or can be expected to last continuously

additional $200 tax. Three years later, on August 15, 2004,

for at least 12 months, or

you file an amended return and claim a refund of $700.

•

Because you filed within 3 years after filing your return, you

Can be expected to result in death.

could get a refund of any tax paid after April 15, 2001.

Example 2. The situation is the same as in Example 1,

The period for filing a claim for refund will not be

except that you filed your return on October 31, 2001, 2

suspended for any time that someone else, such

months after the extension period ended. You paid an

as your spouse or guardian, was authorized to act

CAUTION

additional $200 on that date. Three years later, on October

for you in financial matters.

27, 2004, you file an amended return and claim a refund of

To claim financial disability, you generally must submit

$700. Although you filed your claim within 3 years from the

the following statements with your claim for credit or re-

date you filed your original return, the refund is limited to

fund:

$200. The estimated tax of $1,000 was paid before the 3

years plus the 4-month extension period.

1. A written statement signed by a physician, qualified

to make the determination, that sets forth:

Claim filed after the 3-year period. If you file a claim

after the 3-year period, but within 2 years from the time you

a. The name and a description of your physical or

paid the tax, the credit or refund cannot be more than the

mental impairment,

tax you paid within the 2 years immediately before you filed

the claim.

b. The physician’s medical opinion that your physical

or mental impairment prevented you from manag-

Example. You filed your 2000 tax return on April 15,

ing your financial affairs,

2001. You paid $500 in tax. On November 2, 2002, after an

examination of your 2000 return, you had to pay $200 in

c. The physician’s medical opinion that your physical

additional tax. On May 2, 2004, you file a claim for a refund

or mental impairment was or can be expected to

of $300. Your refund will be limited to the $200 you paid

result in death, or that it has lasted (or can be

during the 2 years immediately before you filed your claim.

expected to last) for a continuous period of not

less than 12 months, and

Exceptions

d. To the best of the physician’s knowledge, the spe-

cific time period during which you were prevented

The limits on your claim for refund can be affected by the

by such physical or mental impairment from man-

type of item that forms the basis of your claim.

aging your financial affairs, and

Special refunds. If you file a claim for refund based on

one of the items listed below, the limits discussed earlier

2. A written statement by the person signing the claim

under Time for Filing a Claim for Refund may not apply.

for credit or refund that no person, including your

These special items are:

spouse, was authorized to act on your behalf in fi-

•

nancial matters during the period described in para-

A bad debt,

graph (1)(d) of the physician’s statement.

•

A worthless security,

Alternatively, if a person was authorized to act on

•

your behalf in financial matters during any part of the

A payment or accrual of foreign tax,

period described in that paragraph, the beginning

•

A net operating loss carryback, and

and ending dates of the period of time the person

•

was so authorized.

A carryback of certain tax credits.

The period of limitations will not be suspended on

The limits discussed earlier also may not apply if you

any claim for refund that (without regard to this

have signed an agreement to extend the period of assess-

provision) was barred as of July 22, 1998.

CAUTION

ment of tax.

Page 14

Publication 556 (Rev. August 2005) - Examination Of Returns, Appeal Rights,and Claims For Refund Page 14

Related Articles

Related forms

Related Categories