A new U.S. District Court ruling highlights the importance of following rules regarding IRS filing dates. A taxpayer who inherited the proceeds of a variable life insurance policy claimed that he and his wife were overtaxed in 2011 and requested a refund. In 2017, he submitted a payment for 2011 tax due that didn’t include fees and penalties assessed by the IRS. The taxpayer also sued the IRS for damages. But the court ruled against him, saying he failed to wait six months before filing a refund claim and failed to satisfy administrative requirements. It also denied a 2023 claim he filed more than three years after a return was filed for the year in question. (Chadwell, DC NJ, 10/27/23)
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