Example #2

An individual files an original return under extension, on October 15, 2016, for tax year 2015. The return reports $10,000 of tax and claims $6,000 in estimated payments. The individual does not remit payment of the remaining $4,000 tax balance until May 10, 2019. The individual files an amended return November 20, 2020 reporting a $5,000 decrease in tax and claiming a refund for the $5,000 reduction in tax.

Since the amended return was not filed within four years of the original return, the refund that may be claimed with the amended return is limited to payments made in the three years preceding the filing of the amended return. The estimated payments were made more than three years prior to the filing of the amended return. Therefore, no refund is allowed for any part of the estimated payments and the refund allowed to the individual is limited to the $4,000 of tax paid within the three years preceding the filing of the amended return.