Terry files his return on March 31. The return shows taxes of $6,000, and Terry pays this entire amount when he files his return. By what time must he file a claim of refund?

Question

Quizplus · Accepted Answer

The general rule is that a claim for refund must be filed within three years of the original return due date or two years from the date the tax was paid, whichever is later. In this case, Terry filed his return on time and paid the tax on March 31, so he must file a claim for refund no later than three years from the original due date of the return (April 15) or two years from the date he paid the tax (March 31), whichever is later. Therefore, the answer is B.

Terry Files His Return on March 31