TAS advocates for refunds as IRS misapplies the law

Success Story: TAS advocates for refunds as IRS misapplies the law 

At the heart of our organization’s mission lies a commitment to advocacy. Every year, we help thousands of individuals navigate the complex landscape of federal taxes with confidence and clarity. This story is just one of many examples of how TAS helps resolve taxpayer issues. All personal details have been removed to protect the privacy of the taxpayer. 

A taxpayer and their representative came to TAS for help with several years of amended returns. The taxpayer had included non-taxable income on several tax returns and owed substantial balances on those returns. They filed amended returns asking that the non-taxable income and related tax be removed. 

The taxpayer and representative acknowledged that some of the claims were filed too late to claim a refund but did not agree with the IRS disallowance of all claims. The IRS disallowed one amended return as untimely under IRC § 6511(a), which allows taxpayers three years from the date of filing a tax return or two years from the date the tax was paid to claim a refund. Since the taxpayer had made payments less than two years before filing this amended return, and no other conditions preventing the refund were present, those payments were eligible for refund. The IRS disallowed another amended return as untimely even though the taxpayer was only seeking a tax reduction, not a refund. Tax reductions are not subject to the timeliness provisions of IRC § 6511. 

TAS advocated for the taxpayer by asking the IRS to reconsider the two amended returns that had been disallowed with an accurate interpretation of the law. TAS also requested that the IRS consider two other amended returns the IRS had not processed. As a result of TAS’s advocacy efforts, all four amended returns were processed. The taxpayer was relieved of tens of thousands of dollars in taxes they did not owe and received a refund of the overpayment to which they were entitled, protecting the taxpayer’s right to pay no more than the correct amount of tax. 

Today, tomorrow, and beyond, we remain steadfast in our dedication to making a difference – one taxpayer, one success story at a time. Read more TAS success stories. 

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