IRC 1341 Claim of Right

[Kimokeo]

I'm interested in your opinion regarding credit this credit.

Estimated taxes and Federal withholding are considered pre-paid credits. This sets the 3-year rule for these to be refunded.

But, what starts the clock on IRC 1341 credits?

[Quixote]

I'm interested in your opinion regarding credit this credit.

Estimated taxes and Federal withholding are considered pre-paid credits. This sets the 3-year rule for these to be refunded.

But, what starts the clock on IRC 1341 credits?

IRC §1341(b)(1) does.

If the decrease in tax ascertained under subsection (a)(5)(B) exceeds the tax imposed by this chapter for the taxable year (computed without the deduction) such excess shall be considered to be a payment of tax on the last day prescribed by law for the payment of tax for the taxable year, and shall be refunded or credited in the same manner as if it were an overpayment for such taxable year.

[Kimokeo]

"If the decrease in tax ascertained under subsection (a)(5)(B) exceeds the tax imposed by this chapter for the taxable year (computed without the deduction) such excess shall be considered to be a payment of tax on the last day prescribed by law for the payment of tax for the taxable year, and shall be refunded or credited in the same manner as if it were an overpayment for such taxable year. "


If I'm looking at a 1870 tax year, with the return due April 15, 1871, calendar year filer.
The claim is made.

Last day prescribed by law for the payment of tax for the taxable year. What is the last day? Sorry, but my mind is foggy... Is it December 31st of the year or is it April 15th?
Also, if I chose file the return in 1872, making it a late return, what would be the date?

[LaVidaRoja]

Date for payment is not same as date for filing. Remember, extension is of time to file, not time to pay. Date for payment is normally same as initial filing date requirement (i.e. April 15) However, remember that penalties for failure to make estimated payments (i.e. pay early) may apply