On April $15,2022,$ Taxpayer filed her $2021$ return. In determining her taxable income, she included a bad debt loss of $$10,000.$ Taxpayer filed a $2022$ return on April $15,2023.$ On January $5,2026,$ the TP realizes that the bad debt loss claimed in $2021$ should have been deducted in $2022.$ She immediately amends her $2022$ tax return and claims a refund due to the bad debt. Assuming the deduction is correctly claimed for $2022$ and all filings are timely, which of the following statements is most accurate:

Question $1$ options:

If a refund is paid the IRS will not be allowed to open the $2021$ tax year. The SOL is not extended as this is an overstatement of deductions.

If a refund is paid the IRS will be allowed to open the $2021$ tax year.

None of these choices$/$More information is needed

Her claim of refund will be processed if the taxes paid were in excess of $$2,500.$

Her claim of refund will be rejected as she is taking inconsistent positions in different tax year.