Do you file amended or refund claims?

Depending on your country and its time limits, a business may be able to amend a past return or claim for a year it did not claim at the time.1Source 1Time limits for amending a return or claiming for a past year: Internal Revenue Code section 6511(a) (United States); HMRC CIRD81800, Finance Act 1998 Schedule 18 paragraph 83E (United Kingdom); Revenue, Tax and Duty Manual Part 29-02-03, section 2.6 (Ireland); Income Tax Act section 37(11) (Canada); Department of Industry, Science and Resources, "Apply for the R&D Tax Incentive" (Australia); Inland Revenue, "Research and development tax incentive due dates" (New Zealand); IRAS, "After filing Form C-S, Form C-S (Lite) or Form C" and Income Tax Act 1947 section 93A (Singapore). More detail on your country page. A legitimate amended claim can be worth having. It also carries its own risks: the records are older, and the people who did the work may have moved on.

Fees for amended claims can be structured differently too. In the United States, Treasury rules restrict contingent fees for practitioners in certain circumstances, and the position on refund claims has its own history.2Source 2Treasury Department Circular No. 230, 31 CFR section 10.27 (contingent fees), and Ridgely v. Lew, 55 F. Supp. 3d 89 (D.D.C. 2014). More detail on the United States pages. The detail is on the country pages.

An explanation of which past years are still open in your country and why the adviser thinks a claim is worth making. The same technical process as for a current claim, including talking to the people who did the work. A fee basis that is stated as clearly as for the current year, and a statement of what happens if the amended claim is reviewed.

An approach that began with a cold call about money you are owed. A claim for past years proposed before anyone has looked at the records. A fee on the amount claimed with no adjustment for a review. Pressure to file before a deadline that is not explained.

• The clause: fee basis
• The script: declining a cold call
• Red flag: cold calls about unclaimed refunds. Green flag: they tell you what does not qualify
• Case study: the cold call about past years

Sources

1. Time limits for amending a return or claiming for a past year: Internal Revenue Code section 6511(a) (United States); HMRC CIRD81800, Finance Act 1998 Schedule 18 paragraph 83E (United Kingdom); Revenue, Tax and Duty Manual Part 29-02-03, section 2.6 (Ireland); Income Tax Act section 37(11) (Canada); Department of Industry, Science and Resources, "Apply for the R&D Tax Incentive" (Australia); Inland Revenue, "Research and development tax incentive due dates" (New Zealand); IRAS, "After filing Form C-S, Form C-S (Lite) or Form C" and Income Tax Act 1947 section 93A (Singapore). More detail on your country page.  Back
2. Treasury Department Circular No. 230, 31 CFR section 10.27 (contingent fees), and Ridgely v. Lew, 55 F. Supp. 3d 89 (D.D.C. 2014). More detail on the United States pages.  Back