Too late for a refund on 2019 taxes?

[jtrevor]

Today I discovered an egregious error in my wife's 2019 tax filings, back when she was single.  Essentially, she failed to claim the $250k capital gains exemption on the sale of her home that year, and paid approximately 25% of the gains (15% federal, 10% state) in taxes.

From what I've read, even if we filed a paper 2019 amended return (1040-X) by mail, along with the state equivalent, it's too late to receive any refund because more than three years have elapsed.  Is that correct?  If so, is there any legal adjustment we can make on our 2025 Married Filed Jointly return?

[xmasbaby0]

Sorry---you are years too late to amend a 2019 tax return to get a better refund.   You had three years from the filing deadline  to amend a 2019 return.

[jtrevor]

Heh, that's what I figured.  We married two months ago and I had never seen her statements before now.  That's unfortunate.  Thanks.

[jtrevor]

Reading further on this - Form 843 (Claim for Refund and Request for Abatement) would not be an option, correct?  And I'm guessing I wouldn't get anywhere with an informal letter to the IRS explaining what happened and exactly how much is owed on a refund?  And it cannot be claimed as a loss etc. on the 2025 return?

[MindyB]

No, Form 843 doesn't apply to income tax.  If the amendment has to do with a bad debt/worthless security, you have 7 years to claim a refund.

You could attempt to send a letter, ensuring you mention you agree to allow them to extend the statute of limitations to assess tax.  See: Exceptions to the 3-year/2-year expiration dates There is no guarantee this will be successful, because it is past the 3 years from the original due date that entitles you to the claim.

[jtrevor]

Thank you!