The RETURN Act mandates the IRS to respond to refund claims within 12 months, providing explanations and appeal instructions.
The RETURN Act amends the Internal Revenue Code to enhance the Internal Revenue Service's handling of refund claims. It requires the IRS to review refund claims and provide written explanations for disallowances within 12 months of receipt. If the IRS fails to meet this deadline, the interest rate on overpayments increases by one percentage point. The act also mandates that frivolous claims, defined as those deemed frivolous by a federal court or the IRS, are exempt from these requirements. The $500 cap on interest increases is subject to annual cost-of-living adjustments starting from 2027.
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- Core Provisions
- Implementation
- Impact
- Legal Framework
- Critical Issues
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