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I understand that if the refund claim is not filed timely then it will be denied. What about receiving credit the withholding/estimated tax payments? The taxpayer would still be able to use these payments to offset taxes owed, they just couldn't receive a refund of any excess withholding. Is that correct?

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The RSOL applies to the overpayment - you can still reduce the tax liability with withholding and credits.

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