What does claim for refund mean on the CPA exam?
Claim for refund. A formal request to get back tax already paid. It generally must be filed within three years of the return or two years of the payment, whichever is later.
Defined against Sec. 6511(a).
Which CPA exam sections use claim for refund?
Claim for refund appears in the REG section of the CPA exam.
Related terms
- contract liability: The obligation to transfer goods or services for which the customer has already paid, or for which payment is unconditionally due.
- statute of limitations: The window in which the Service may assess more tax, normally three years from filing, extended to six for a substantial omission of income and unlimited for a false return or none at all.
- cash equivalents: Short-term, highly liquid investments readily convertible to known amounts of cash and so near maturity that interest rate changes pose insignificant risk.
- contract asset: The right to consideration for goods or services already transferred, where the right still depends on something other than the passage of time.
- deferred tax liability: The deferred tax consequences of taxable temporary differences: income already in the books that the return has not taxed yet, or a deduction taken on the return ahead of the books.