After I appealed, IRS agreed to return the extra tax they collected. But later they closed my case without refund me

[ethanyizheng]

In 2015, I got a letter from IRS telling me that my 2014 tax-return calculation is not correct and asking me to pay extra tax.  I followed their order and I also sent IRS my appeal letter that my calculation was correct.  After several round of communications with IRS, They finally sent me a letter in Nov 2019, telling me that they recalculated my 2014 tax-return and would return me (by check) the extra tax I paid.   Half year later, I sent IRS inquiry letter asking when I could receive the check from them.  I received a letter from IRS in Dec 2020 telling me to wait as they are still work on it.   One week ago I received a new letter from IRS telling me that they would not handle my case anymore since they don’t allow any claim for tax-return issue occurred seven years ago.   

Initially I planned to go to IRS local office to ask for help, but it need appointment first and I could never get through the IRS 800 phone to make appointment.   

How I can get my money back?   Thank you very much.

[GeorgeDenseff]

You could attempt to use the Taxpayer Advocate Service.  But you probably should have visited the IRS in person many years ago.  After this many years, it will be difficult to get the money reimbursed.  

[Anonymous_]

I agree with @GeorgeDenseff; contact the advocate service.

With respect to math errors, it is generally the better approach to ask for an abatement before sending in payment for a calculation error the taxpayer is reasonably certain does not exist.

[Mike9241]

Statute of Limitations Applying to a Claim for Refund

To successfully obtain a refund from the IRS, the taxpayer must meet certain requirements. The first requirement is that the claim for refund must be made before the expiration of the statute of limitations for refunds. This period is generally three years, which means that taxpayers have until the later of three years from the date of the original deadline of the tax return to claim a refund. Another component to the statute of limitations for refunds states that taxpayers have two years from the date the tax was actually paid to claim a refund of overpaid taxes from the IRS (2). An additional limitation on the refund process applies to civil actions for refunds: a civil action for refund cannot be instituted unless a claim for refund was previously filed within the applicable statute of limitations.

if it's been more than 2 years since you paid the extra tax, the IRS, under the law, will deny your claim. TAS can do nothing because they are limited by what the law allows. however, it doesn't hurt to try.  

 IRC § 7422(a); IRC § 301.6402-2(a)(1).

[Anonymous_]

---

@Mike9241 wrote:

if it's been more than 2 years since you paid the extra tax, the IRS, under the law, will deny your claim.

---

If that were the case, the IRS would not have sent the letter to @ethanyizheng stating the overpayment would be refunded in late 2019. 

Further, the response to the effect that @ethanyizheng disagreed with the notice should have been sufficient to establish a claim for a refund from overpayment. 

The service might be able to help in this instance and should definitely be the next step.

[Mike9241]

the tax code and regulations are what counts.  the IRS is not bound by responses that do not conform to what the law says. but like we are all saying the taxpayer should try the TAS 

[Anonymous_]

---

@Mike9241 wrote:

the tax code and regulations are what counts.  the IRS is not bound by responses that do not conform to what the law says.....

---

I agree, the operative word in the Code is "claim" and @ethanyizheng did that in a timely manner.

[ethanyizheng]

Thank you very much for your suggestions.   I will try Taxpayer Advocate Service first.