Thursday, January 31, 2013

Amending Returns for My Parents' Estate

As an executor of my parents' estate, one of my tasks has been to amend previous year state tax returns due to errors on state tax withholding documents.   One amended tax return was filed just within the three year time period allowed.  Unfortunately, the second amendment was outside of the three year time period and may be denied.

The only change in the amendment was to increase the amount of estimated tax paid to the correct amount.  Since my parents received a 100% refund, they should receive the additional amount.   Typcially, states will automatically correct for errors in estimated tax paid and send the correct refund amount.  But in this case, no correction is made.

I've asked the state to consider the specfics of this situation and grant the additional refund requested in the ammendments.   We'll learn of their decision in the next month.

For more on Crossing Generations, check back every Thursday for a new segment.

This is not financial or tax  advice. Please consult a professional advisor.

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