Generally, the taxpayer must file their claim for a credit or refund within 3 years after the date they filed their original return or within 2 years after the date they paid the tax, whichever is later.
As a result of COVID-19, the due date to file a protective claim for tax year 2016 individual income tax returns has been postponed until July 15, 2020. To file a protective claim for tax year 2016, taxpayers make sure their claim is properly addressed, mailed, and postmarked by July 15, 2020.
For Forms 1040-X filed as “Protective Claims under the ACA litigation,” write “Protective Claim for refund under California, et al. v. Texas” at the top of Form 1040-X.
Instructions related to Form 1040-X in IRS Publication 17 include:
Protective claim for refund
Generally, a protective claim is a formal claim or amended return for credit or refund normally based on current litigation or expected changes in tax law or other legislation. You file a protective claim when your right to a refund is contingent on future events and may not be determinable until after the statute of limitations expires. A valid protective claim doesn't have to list a particular dollar amount or demand an immediate refund. However, a valid protective claim must:
- Be in writing and signed
- Include your name, address, SSN or ITIN, and other contact information
- Identify and describe the contingencies affecting the claim
- Clearly alert the IRS to the essential nature of the claim
- Identify the specific year(s) for which a refund is sought.