If you receive IRS Letter 106C, your claim for refund has been partially denied.
The IRS has strict rules for when you can make a claim for tax refund. If you fail to file a claim for refund within the IRS’s time limits, you will lose your right to the refund, and the money becomes the property of the U.S. Treasury.
If the IRS has money waiting for you, the tax laws provide opportunities to request a refund. If you have requested a refund and received IRS Letter 106C, you should not hesitate to discuss your options with an experienced Columbus, Ohio tax attorney.
Why have I received IRS Letter 106C?
IRS Letter 106C is used by the IRS to notify taxpayers of a partially disallowed refund claim. The Internal Revenue Manual contains the guidelines that IRS employees must follow when issuing Letter 106C. The letter will contain the specific reason for the claim disallowance. Typically, the letter will contain a citation to the Internal Revenue Code (“IRC”) provision under which the claim for refund is being partially disallowed.
This explanation is required under IRC § 6402(l), formerly IRC § 6402(k), which states, "In the case of a disallowance of a claim for refund, the Secretary shall provide the taxpayer with an explanation for such disallowance."
IRS Letter 106C must include appeal rights and the right to file suit. As a result, if you disagree with the IRS’s partial disallowance, you can file suit with the U.S. Tax Court or make an appeal to the IRS Appeals Division. Once again, you must comply with the strict rules for filing a petition to Tax Court and/or filing a formal written protest to the IRS Appeals Division.
Do I need to make a Claim for Refund?
If you earned income in the past few years, and you have not filed a return, the IRS may have money for you. To collect this money, a claim for refund must be made within the IRS’s strict time periods. Claims include (i) claims for credit, (ii) claims for refund, and (iii) requests for abatement.
Claims must be made (i) within 3 years from the return due date date, (ii) 3 years from the date the IRS received a late return or a timely filed extended return, or (iii) 2 years after the tax was paid.
Claims for refund are filed on a variety of forms, depending on your situation: Form 1040X, Amended U.S. Individual Income Tax Return, Form 1120X, Amended U.S. Corporation Income Tax Return, Form 843, Claim for Refund and Request for Abatement, Form 8849, Claim for Refund of Excise Taxes, or one of the Form 94XX series returns, and they may be made in an informal written inquiry.
A claim can also be made in an audit reconsideration request. If the IRS assessed additional income tax against you during an IRS examination or tax audit of your federal tax return, and you have evidence that was not available during the tax audit, you may file a request for audit reconsideration with a claim for refund of the additional assessed tax. If your claim is partially accepted, you will receive IRS Letter 106C.
Contact an Experienced Columbus, Ohio Tax Attorney
IRS Tax Settlement and Debt Resolution Lawyer
If you have received a letter or notice from the IRS or Ohio Department of Taxation, including IRS Letter 106C, do not hesitate to contact the experienced tax lawyer at Columbus, Ohio-based Porter Law Office, LLC to review your options. Often times, individuals feel intimidated and confused when they receive an IRS notice or letter. The Columbus, Ohio tax attorney at Porter Law Office, LLC will tirelessly fight to help you settle your tax debt and resolve your tax dispute with the IRS or state of Ohio. Contact the experienced IRS tax resolution attorney today for a free consultation to discuss your particular IRS or Ohio tax needs and options.