Alice's brother, Edward, received a Notice of Deficiency from the IRS proposing an increase for his 2017 income taxes. The IRS claims he failed to report $10,000 in contractor income. Edward received the notice six months ago and is only now debating whether he should disagree with the tax increase.

Edward decides to file an amended return claiming he did not receive the contractor income in 2017 because he actually received the income in 2018 and reported it in that tax year. Because he's claiming that he does not owe the income taxes, can he file suit right away? Explain why or why not?

Assume Edward later files a timely refund suit. In the suit, he argues that he not only did not receive the contractor income, but adds an argument that he had additional charitable donations that he failed to claim on his amended return that further reduce his income taxes for 2017. Will the refund court consider this argument? Why or why not?

Answer rating: 100% (QA)

Edward cannot file suit right away after filing an amended return claiming he did not ... View the full answer