Question

#5) (1 mark) You're the accountant for a taxpayer that realizes they missed claiming a legitimate deduction for a tax return 6 years ago. Would they be able to amend their tax return from 6 years ago?

Answer 1

In my view point, No becaFor Amending the return: The time limit will be within three years from when you first filed your return. The IRS gives taxpayers three years from the date the original return was filed to file an amended return if they are seeking a tax refund or credit, but only two years if taxes were paid. If taxes are owed on the amended return, the taxpayer may face penalties and interest. You must file Form 1040X for an amended return.

However, In a few limited circumstances, the IRS does allow taxpayers to file an amended tax return after three years. The Form 1040X instructions state that the time limit for filing an amended return may be suspended for taxpayers who are “physically or mentally unable to manage their financial affairs.” If the amendments involve a bad debt or worthless security, the return must usually be filed within seven years after the return’s due date for the year in which the item became worthless.