How about the money taken from me in overpayment of income taxes because of 20% withholding in drawing from early retirement benefits placed with a Merrill-Lynch by my former employer in a buyout? If for whatever reason you don’t report that overpayment to IRS within 3 years, they just keep it and you can never, ever get it back. The federal government owes me thousands of dollars. My fault, right?
“My fault, right?”
Well, yes, yes it is.
You are supposed adjust your taxes due by that amount when you file taxes that year. You have three years to file an amended return for any money due to you. There is no year limit on money you owe them.