claim for refund

Popular Terms
Notice to the Internal Revenue Service requesting reimbursement of all or a portion of taxes paid in prior years because of a mistake correction or a credit or loss that can decrease an earlier year's tax liability.

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.

Any of these conditions will usually result in the IRS Center issuing a letter to the taxpayer, denying consideration for the claim. If none of these conditions applies, the claim for refund is referred to an Examiner.

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.

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