NASSAUSUFFOLK

Has anyone encountered a situation where NYS waits until after the statute of limitations has passed to send a communication denying the taxpayer’s request to apply a credit to the next tax year?

For the 2008 tax year, our client’s previous accountant filed their tax return after the extended due date but well within the three year period to claim a refund or credit. The 2008 return showed a $40,399 overpayment credited to the 2009 tax year.  There was no further communication from NYS until February 2013, five month after the time to file for a refund or credit expired, claiming the 2008 return was not received by NYS.  The taxpayer promptly mailed a duplicate copy.

In addition to denying the $40,399 credit for the 2008 tax year, in January 2016 NYS seized the taxpayer’s 2014 federal refund of $44,736.64

Thanks in advance to anyone who can lend advice regarding this matter (or who can recommend someone who specializes in helping taxpayer’s in these predicaments)

I had a similar situation.  I just wrote a letter with a copy of the return claiming the credit and it worked.  It was $7000 or so.