If an individual paid income tax in the current year but did not file a current year return because his income was insufficient to require the filing of a return, the deadline for filing a refund claim is:
a. Two years from the date the tax was paid.
b. Three years from the date the tax was paid.
c. Three years from the date a return would have been due.
d. Two years from the date a return would have been due.
Answer:A
Choice "a" is correct. Two years from the date the tax was paid.
Rule: A taxpayer may file a claim for refund within three years from the time the return was filed, or two years from the time the tax was paid, whichever is later. Since no return has been filed, the refund claim must be filed within two years from the time the tax was paid.
Choices "d", "b", and "c" are incorrect, per the above rule.
