Filing an Original Return to Replace SFR


#1

Hi, all.

Does it make sense to file an original return for an SFR, even if it is old? For example, 8 years old. Will the IRS accept it?

I assume we would only do this if the CSED is still open. Right?

Can filing an original return for an old SFR result in a refund? Or does the 3 year statute for refunds apply?

Thanks in advance for the clarification!


#2

I have been filing 1040’s after SFR’s for 24 years, 1,000’s of returns:

  1. The IRS will accept an original 1040 at any time. That starts the 3 year audit ASED on the newly filed 1040. The refund statutes apply (3 yrs from due date or 2 years from individual payment dates/levies. Sometimes the Service Center makes mistakes and issues a credit or refund, but that is not supported by law.

  2. The CSED does not matter. The CSED was created upon the SFR assessment date and has it’s own 10 yr life. If you file a 1040 and the amount is reduced, no “new” CSED is created as there is no new assessment. However, if the 1040 results in additional tax, that additional tax (and only the additional amount) is a new assessment and only that amount has it’s own CSED.

  3. The CSED does matter if this period is close to the 10 years on the SFR and you open up the whole case. It is wise to consider doing nothing-on a case by case basis, I don’t know your specifics.