IRS Bars Overpayment Refund for Failure to Timely File Challenge

UILC: 6532.00-00, 6514.00-00
Release Date: 7/5/2019

ID: CCA_2019061716373457

From: * * *
Sent: Monday, June 17, 2019 4:37:34 PM
To: * * *
Cc: * * *
Bcc: * * *
Subject: RE: Chief Counsel Advice — POSTN-138440-10

Hi * * *

The refund is barred.

Assuming there is no waiver/extension of period of limitation for filing suit, a taxpayer has two years from the issuance of the Notice of Disallowance to file suit to challenge the disallowance of the claim (on whatever grounds). I.R.C. § 6532. If the taxpayer did not file suit before the two-year period elapsed, I.R.C. § 6514 prohibits the refund or credit of the claimed overpayment.

Where the IRS had already refunded the overpayment, it's treated as an erroneous refund.

I.R.C. § 6511, which addresses limitations on claims, is not the statute that is barring the refund.