Typically, the following steps are followed. The taxpayer files a claim for refund with his or her state's IRS Center, stating the amount the taxpayer thinks has been overpaid and the grounds that support the claim of overpayment. The IRS Center evaluates the claim to establish if (1) the claim was timely; (2) the claim alleges that the Internal Revenue laws are unconstitutional; (3) the taxpayer had waived the right to a refund; or (4) the claim involves a tax return closed because of a closing agreement or court order.
If the Examiner decides the claim should be disallowed, he or she sends the taxpayer a report and Letter 569, stating that the taxpayer may ask to meet with or call the Examiner's supervisor. If the taxpayer is still not satisfied, he or she may ask for a meeting with the Appeals Office.