If I were due a federal refund in 2011 and owed in 2012 and did not file either year, can I apply the 2011 refund to the 2012 bill? I know I can no longer claim the refund for 2011. Will the IRS handle this automatically?
In reality, there were 2 years I was due a refund and a year I will owe a substantial amount.
I am using FreeTaxUSA to prepare the prior year returns. They have an option to apply the refund to next years taxes, but I don't see any difference in the 1040 that's being created.