Limitations Period for Refund Litigation
Charles P. Rettig
Hochman, Salkin, Rettig, Toscher & Perez, P.C.
November 1, 2012
In a recent Chief Counsel Notice (CC-2012-012, June 1, 2012) , the IRS has confirmed that, notwithstanding various recent district court cases to the contrary, a taxpayer may file a complaint for refund under Code Sec. 7422 at any time at least six months after the filing of an administrative claim when the IRS has not previously issued a notice of claim disallowance and the taxpayer has not waived the requirement to receive that notice.
Although favorable to the government, the Chief Counsel Notice advises that holdings regarding the application of the general six-year statute of limitations under 28 U.S.C. Sec. 2401 to refund suits brought under Code Sec. 7422 are inconsistent with Rev. Rul. 56-381 and the decisions cited therein that reject the argument that six-year periods of limitation in either 28 U.S.C. Sec. 2401 or 28 U.S.C. Sec. 2501 apply to bar tax refund suits. Congress has supplanted the catch-all limitation period provided for in 28 U.S.C. Sec. 2401 and 28 U.S.C. Sec. 2501with a specific period of limitation in Code Sec. 6532 that governs tax refund suits.
The Chief Counsel Notice advises IRS attorneys to continue to follow Rev. Rul. 56-381 and to advise the IRS or the Department of Justice that the general six-year period of limitation for bringing claims against the government in 28 U.S.C. Sec. 2401 or 28 U.S.C. Sec. 2501 does not apply to tax refund suits. When the IRS has not issued a notice of claim disallowance and the taxpayer has not waived notice of receiving the claim disallowance, the taxpayer may file a refund suit anytime after the initial six-month period provided in Code Sec. 6532(a).
Number of Pages in PDF File: 3
Keywords: tax, refund, tax refund, statute of limitations, limit, limitations, 6532, 7422, Code, internal revenue codeworking papers series
Date posted: March 6, 2013
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