No Refund for Untimely Filed Offshore Disclosure Program Amended Returns

Posted by Kim Chen on May 30th, 2017

The Offshore Voluntary Disclosure Program (OVDP), which is for taxpayers that have failed to meet foreign bank account reporting requirements, requires the filing of amended returns for eight years. The taxpayer was an OVDP participant for whom the disclosure period was for tax years 2003 through 2010. For all tax years except 2008, the taxpayer reported additional income and tax on his OVDP amended returns. The 2008 amended return reported a large loss, resulting in a tax overpayment for that year, which the taxpayer requested be credited against the increases in tax for the other years in the disclosure period. In a Chief Counsel Advice, the IRS concluded that it can only refund a resulting overpayment against other taxes if the refund claim is timely filed under IRC Sec. 6511. Otherwise, the IRS is prohibited by IRC Sec. 6514 from crediting or refunding the overpayment. CCA 201719026

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