Financial Planning for Generation X & Y Women
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Expert Q&A Archive

Can You Amend Prior Taxes for Financial Emergency?
I heard that you can request a refund from the IRS for taxes paid in previous years if you have a financial emergency. Can you provide any information on this?
Rosemary Ervin, CPA:
expert info »
You can amend a prior year return to report a discrepancy in the originally filed return which may yield a refund; but you must support the assertion, for example, you failed to report a deduction for medical expense.

You cannot get a refund of taxes paid because of financial emergency. You may be able to borrow some of the money that you contributed to a retirement plan in the past, but you will have to pay it back with interest.
Gail Rosen, CPA:
expert info »
There is no tax law that I am aware of that allows you to get a refund of taxes paid due to a financial emergency. The closest thing I can think of is that if you have an NOL (Net Operating Loss) for your total income, then you can possibly carry it back and get a refund of prior taxes paid.