Tax overpayment for 2005, can I use as credit for 2006?

Question

I recently paid off my 2005 taxes which included a penalty of late filing of close to $1500. I disputed the late filing fee and I may stand to recover that amount. Will the IRS send me the payment automatically? Can I claim the overpayment in my 2006 return, if so, where?

Answer 1

The IRS after doing their own investigation will determine whether your claim has merit, and then will mail you a check for the disputed penalty, if any.

And no, you cannot claim the overpayment, either as a deduction or income.

Penalties either charged or "abated" (removed) are never deductible or includible. Period.

Answer 2

You certainly can't take it as a credit if you "may" recover it - you don't even have the right to it yet - it's not an overpayment until the dispute is resolved in your favor. In any case, you couldn 't just take it as a credit, but if you win your appeal, they'll send you a check.

If you have a refund coming for the current year, you can choose to have part or all of your refund credited to the following year's estimated payments.

Answer 3

Dang-it! Judy got to it first! You can elect to have your return this year to be allotted for any taxes that you may owe for the following year. However, this 0% interest loan that you are giving the government would have been better invested in some term investment engines to give you at least some interest earned for the next year or so...

I used to file "married but single" for a number of years to avoid the headache of owing the government... Now I invest earned money for each year that didn't have the taxes taken out to ensure that the money works for me...

I also utilized the below website to get my filing expenses paid for this year!

Answer 4

You can't claim the fee as an over payment unless and until you 'win' the dispute. That will probably take longer than the deadline to file this years return. If I were you, I would file this years taxes as if you won't 'win' the dispute and have the fee refunded if you 'win'.

Answer 5

we had mail off them approximately claims relationship decrease back 4 years, asserting we owed them £10,000, we appealed, have been given suggestion from electorate suggestion actually from everywhere, after a pair of 365 days, we had a letter from them asserting that, they have been finding at alot of situations back because of fact human beings weren't reported genuine and ours grew to become right into a sort of situations, so with a bit of luck we wont owe them something anymore.