What is the last date to file a 2019 tax return and not lose a taxpayer refund if a 2019 extension was filed?

[ackassociate]

I realize that July 17, 2023, is the last date to file a 2019 tax return in order for a taxpayer to get their 2019 refund.

However if a 2019 extension was filed is the three-year window tax filing deadline date extended to October 15, 2023?

In other words, what is the last date to file a 2019 tax return and not lose a taxpayer refund if a 2019 extension was filed?

Please let me know.

Thank you,

Anthony

[Skylane]

No. 
7/17/23

[BobKamman]

Yes.  If a timely extension was requested, you have until 10/15/23.  

[qbteachmt]

Don't overlook that the IRS knows everything:

https://www.irs.gov/newsroom/time-running-out-to-claim-1-point-5-billion-in-refunds-for-tax-year-201...

"But the three-year window for 2019 unfiled returns was postponed to July 17, 2023, due to the COVID-19 pandemic emergency. The IRS issued Notice 2023-21 on Feb. 27, 2023, providing legal guidance on claims made by the postponed deadline."

https://www.irs.gov/irb/2023-11_IRB#NOT-2023-21

"Section 6511(a) requires a taxpayer to file a claim for credit or refund within three years from the time the taxpayer’s return was filed or two years from the time the tax was paid, whichever period expires later. Under § 6511(b)(2), the amount of a credit or refund is limited to the amount of tax paid within a specified period immediately preceding the filing of the claim for credit or refund (lookback period). When a taxpayer files a claim within three years of filing the taxpayer’s return, the lookback period is equal to three years plus the period of any extension of time for filing the return. Otherwise, the lookback period is two years. For a calendar-year taxpayer, withheld and estimated income taxes are deemed paid on the due date of the tax return, generally April 15 of each year. See § 6513(b)(1) and (2)."

[BobKamman]

From Notice 2023-11:

The relief granted in section 3 of this notice permits taxpayers who had a return filing due date postponed by Notice 2020-23 or Notice 2021-21, who did not receive an extension of time for filing such return, and who file timely claims for credit or refund to be credited or refunded amounts deemed paid on April 15 of each year.

[ackassociate]

Thank you for the reply.  My hunch told me the 2019 final three-yr window to file and not lose taxpayer refunds was 10/15/2023 since a timely extension was filed.

I also called the IRS this afternoon and confirmed the 10/15/2023 filing deadline.

[BobKamman]

I have my doubts now, since IRS is telling you that.  

[qbteachmt]

Yes, it normally is April 15 or to the extension date as was filed, but the 2019 tax year due date in 2020 was extended to mid-July, which doesn't matter to you, because the extension date didn't change.

[Accountant-Man]

This has always been a sticking point for me.

"Section 6511(a) requires a taxpayer to file a claim for credit or refund within three years from the time the taxpayer’s return was filed or two years from the time the tax was paid, whichever period expires later."

"The time the tax was paid" means 12/31/xx for a non-filed return, i.e., the end of the calendar year for a W2 employee. It also means if you filed timely and paid tax due, and you later amended to get back that money (due to missing or mistaken info), you have two years from THAT payment date.

Even though it is "whichever period expires later," what does that mean when a return was never filed? 

"Three years from the time the taxpayer’s return was filed" CANNOT mean that if you file a 2018 return (due in 2019) in 2024 that you have three years from 2024 to file a claim. I believe that this three year period means 4/15/19 (plus extension) plus three years from then, or 2022. If you file a first return in 2023, you are too late.

If you didn't file the 2018 return until 2021 to get the W2 withholdings, you cannot get a refund. It is past two years from the time the tax was paid.

[qbteachmt]

@Accountant-Man 

Will this question be on the final exam? I think I have a doctor's appointment that day.

[BobKamman]

Withholding credits are not considered paid on 12/31.  Think about it, the employer may not have to pay them until 1/31 of the following year.  What the law says is that they are considered paid on 4/15.

"Even though it is "whichever period expires later," what does that mean when a return was never filed?"

But we are not talking about a return never being filed.  We are talking about a return being filed at the same time the statute is about to expire.