Last year, we filed protective elections for clients who paid the Net Investment Income Tax and Medicare Tax on their 2016 tax returns in case the Supreme Court determined these to be invalid. I believe the statute of limitations on the 2017 tax returns has been extended from 4/15/2021 to 5/17/2021 … has there been any update on this issue (U.S. Supreme Court Docket 19-840)?
Also, if we should file protective claims now for the 2017 tax returns, do you recommend filing a 1040X or submitting a “Protective Claim for Refund” statement (I think Spidell had a “sample” statement to use).
I am curious about this as well. Should protective refund claimed be filed by May 17, 2021 for tax year 2017? I guess it doesn’t hurt to do so but was wondering what all of you are doing. I guess if it is Biden deciding nothing will change but it’s the Supreme Court making the decision. Thanks.
Some tax practitioners previously recommended filing a 1040X rather than submitting a “Protective Claim for Refund” statement (Spidell had a “sample” statement to use). Do you believe the “Protective Claim for Refund” statement is still sufficient?