The IRS Audit Blog

Question: Does California not pay a tax refund if filing more that three years late like the IRS?

I just caught up on all my taxes for the last four years (I had all refunds or no taxes). Now for my 2004 Federal taxes I was too late to get my fed refund because they only go back 3 years for refunds. My question is whether there is a similar expiration to California refunds, if the year of that refund has not been filed by a certain time.

Answer: California Revenue and Taxation Code section 19306 provides for a four (4) year limit from the date that the tax return should have been filed or in the case of an amendment four years from the date that the original return was filed. Filing a late 2004 California return would get you a refund if you overpaid. You should also file the federal return although you will not get a refund.

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Question: Is a California Guaranteed Student Loan subject to a Statute of Limitations?

I’m being harassed for a student loan that is from 1987. The IRS has never attached my tax returns or garnished my wages. Is this debt legitimate?

Answer: All GSLs (guaranteed student loans) are arms of the FFELP (federally funded) and thus have no statute of limitations.

Section 484A(a) of the Higher Education Action provides that no statute of limitations bars enforcement action to collect Federal student loans, including collection by offset, lawsuit, or enforcement on student loan judgments. 20 U.S.C. § 1091a(a). State law that would otherwise limit these actions is superseded by Federal law and cannot bar collection action.

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(AP:CARSON CITY, Nev.) By the time Carlos Hernandez turned 18, little did he know his credit was trashed. Since the age of 9, he had obtained a mortgage, bought cars, obtained credit cards _ and racked up loads debt. He had a criminal record, too _ not his own _ which kept him out of the Navy.

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Question: What IRS form do I use?

I was wondering what type of form do i use to file my taxes if I am a college student that had like 2 jobs, well three but i never really recieved a check for that job. Do I use the 1040 EZ like I did in high school or do I have to move on to the 1040?

Answer: Bostonianinmo has it pretty nailed.

I would add that so long as you receive W-2′s, it’s easy. If you get a 1099 for the one job, you can just let it go, but you may want to consider a complaint against that employer. It is likely you are being cheated by the employer pretending you were not legally an employee and making you pay both halves of the social security taxes. I might add they almost certainly cheated you with unemployment and workers’ comp then too. That all is, of course, if they 1099 you.

But if you meant that you never actually got paid by them, then they don’t matter, this year. If you ever do receive the wages, they matter the year you receive them, not this year.

With the exception of complications like that, the 1040EZ vs. 1040A or 1040 question is really more about ease of filing vs. do you have any deductions you think could noticeably reduce your tax. One year, you might want to fill out all three or at least the 1040 and compare for which gets the most back (or owes the least…) and was it worth the effort?

For instance, this year the sales tax deduction will apply again. Nobody thinks much of it, but it has an interesting aspect if you bought something with a big sales tax on it like a car. Not only do you get the entire deduction anyone else in your state would get, but you also get to add in the entire sales tax you paid. So a deduction of, say, $250 might jump up to $1,250 when your car’s sales tax is added in. That could seriously affect your refund any year you buy a car in, assuming the deduction is made permanent.

Easy is nice, more money back is nicer!

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1040 form