What is an IRS Claim for Refund?
An IRS claim for refund is, in most cases, a form you file when you ask for money back that you overpaid to the IRS. The critical thing: A claim for refund is time-sensitive — essentially 3 years from the original due date of the return or 2 years from the date of payment. Otherwise the IRS gets to keep your money if you are too late.
Common Claim for Refund types
Personal and corporate tax claims for refund
Claim for refund on for an IRS-prepared return
Claim for Refund and Request for Abatement on Trust Fund Penalty Assessments, 6672, the Civil Penalty
If you believe you have wrongly been assessed a Trust Fund Penalty Assessment, you may be able to “reverse” that assessment through a Form 843 claim for refund— even if you have not paid anything. The process is quite convoluted, but it is possible to prevail.
Now, while it it is true you can settle a trust fund penalty with an Offer in Compromise, your strongest reason will be that you simply do not have the resources to pay the entire liability. And you will have to pay something. So it is best, if possible, to try eliminating a wrongfully assessed trust fund penalty with a Claim for Refund first.
Others types of a Claim for Refund
Claim for Refund Success story:
Diane Wilson, a self-employed certified financial planner, was in a jam. An investment property she owned had been on the market for awhile. She finally received a favorable offer, but the deal was in jeopardy because of some outstanding tax liens for $450,000. Although Diane believed she only owed a fraction of the amount, she paid in full so the property could close on time.
Diane came to IRSMedic, hoping our attorneys might be able to recoup some of the IRS payment. We determined that she hadn’t documented her capital gains properly over several years. Our staff filed amended returns, and Diane received $375,000 back from the IRS. For more IRSMedic success stories, click here.
Identities and certain facts have been changed to protect the identities of clients. These stories aren’t intended to be a promise of how your case will turn out. All facts are different, and, outside of tax or federal court, approval of the final resolution is up to the IRS.