The client has not filed since 2009. After tax preparation of the 2009 tax return, the client is due a refund. However, since the statute has expired, is it possible to apply the refund to 2010?
The statute of limitations is the later of 4 years from the original due date of the reutrn or 1 year from date of payment. The refund is lost for the 2009 year unless a payment was made within the last year.