The RETURN Act would require the IRS to review and decide most refund claims within 12 months, unless the taxpayer and IRS agree to a later date. If the IRS denies a claim in whole or in part, it must send a detailed written explanation and, when the taxpayer can appeal, instructions for appealing to the IRS Independent Office of Appeals. For claims that miss the deadline, the interest rate on an overpayment would increase by 1 percentage point for later periods, subject to a $500 cap that would be adjusted for inflation. Frivolous claims would receive written notice of denial instead of the detailed explanation. The changes would apply to claims received more than 12 months after the Act is enacted.
If you file a refund claim covered by the Act, the IRS would have a deadline to decide it and explain any denial in writing. If you are eligible to appeal, the notice would include appeal instructions. A late decision could lead to additional interest on an overpayment, within the bill's limit.
The bill does not state an overall cost. It could require additional interest payments when the IRS misses the deadline; the increase would be capped at $500 per claim, with inflation adjustments for claims filed after 2026.
No publicly available information.
No publicly available information.