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1.
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A taxpayer
has the right to file a claim for a credit or refund,
after making tax payments to the IRS. Taxpayers can
request a tax credit or a tax refund by filing Form
1040X (in the case of individuals) or Form 1020X (in the
case of corporations).
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2.
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A taxpayer
can request a copy of a prior filed tax return from the
IRS by using Form 4506.
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3.
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A taxpayer
can also obtain a copy (transcript) of the tax account
for an individual income tax return. A transcript can be
requested from a taxpayer's local IRS office. The
transcript will provdie information on the type of
return file, marital status, the tax shown on the
return, adjusted gross income, taxable income,
self-employment tax, and the number of exemptions.
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4.
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Generally,
a taxpayer must file a claim for a credit or refund
within 3 years from the date the original tax return was
filed or 2 years from the date the tax was paid,
whichever is later.
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5.
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If a
taxpayer files a claim within 3 years after filing a
return, the credit or refund cannot be more than the
part of the tax paid within the 3 years (plus any
extension of time for filing the return) before the
claim is filed.
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6.
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If a
taxpayer files a claim after the 3-year period, but
within 2 years from the time the tax is paid, the credit
or refund cannot be more than the tax paid within 2
years immediately before the claim was filed.
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7.
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Special
rules are provided for a bad debt, a worthless security,
a payment or accrual of foreign tax, a net operating
loss carrback, or a carryback of certain tax credits.
See section 6501 of the IRS code.
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8.
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Claims are
usually processed shortly after they are filed. A
taxpayer's claim may be accepted as filed or it may be
examined.
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9.
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If a claim
for credit or refund is based only on a contested income
tax or on estate tax or gift tax issues consdered in
previously examined returns, a taxpayer does not have to
appeal to the IRS for the refund. The taxpayer can
request in writing that the claim be immediately
rejected. A notice of claim disallowance will then be
promptly sent to the taxpayer who then has 2 years from
the date of mailing of the notice of disallowance to
file a refund suit in the US Distrcit Court in the US
Court of Federal Claims.
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10.
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A refund
may be reduced by an additional tax liability, past-due
child support, or debts owed to another agency. A
taxpayer cannot use the appeal and refund procedures for
those reductions.
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