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limitation while the notice of deficiency was issued will not

by the IRS, you should receive a notice of claim disallow-

change when the notice is withdrawn.

ance. If the IRS does not act on your claim within 6 months

from the date you filed it, you can then file suit for a refund.

After the notice is withdrawn, you cannot file a

You generally must file suit for a credit or refund no later

petition with the Tax Court based on the notice.

than 2 years after the IRS informs you that your claim has

Also, the IRS can later issue a notice of deficiency

CAUTION

been rejected. However, you can file suit if it has been 6

in a greater or lesser amount than the amount in the

months since you filed your claim and the IRS has not yet

withdrawn deficiency.

delivered a decision.

Generally, the Tax Court hears cases before any tax

You can file suit for a credit or refund in your United

has been assessed and paid; however, you can pay the

States District Court or in the United States Court of Fed-

tax after the notice of deficiency has been issued and still

eral Claims. However, you cannot appeal to the United

petition the Tax Court for review. If you do not file your

States Court of Federal Claims if your claim is for credit or

petition on time, the proposed tax will be assessed, a bill

refund of a penalty that relates to promoting an abusive tax

will be sent, and you will not be able to take your case to

shelter or to aiding and abetting the understatement of tax

the Tax Court. Under the law, you must pay the tax within

liability on someone else’s return.

21 days (10 business days if the amount is $100,000 or

more). Collection can proceed even if you think that the

For information about procedures for filing suit in either

amount is excessive. Publication 594 explains IRS collec-

court, contact the Clerk of your District Court or of the

tion procedures.

United States Court of Federal Claims. For information on

If you filed your petition on time, the court will schedule

District Court review of Appeals determinations with re-

your case for trial at a location convenient to you. You can

spect to lien notices and proposed levies, see Publication

represent yourself before the Tax Court or you can be

1660.

represented by anyone admitted to practice before that

court.

Refund or Credit of Overpayments

Before Final Determination

Small tax case procedure. If the amount in your case is

$50,000 or less for any one tax year or period, you can

request that your case be handled under the small tax case

Any court with proper jurisdiction, including the Tax Court,

procedure. If the Tax Court approves, you can present

can order the IRS to refund any part of a tax deficiency that

your case to the Tax Court for a decision that is final and

the IRS collects from you during a period when the IRS is

that you cannot appeal. You can get more information

not permitted to assess that deficiency, or to levy or en-

regarding the small tax case procedure and other Tax

gage in any court proceeding to collect that deficiency. In

Court matters from the United States Tax Court, 400 Sec-

addition, the court can order a refund of any part of an

ond Street, N.W., Washington, DC 20217. More informa-

overpayment determined by the Tax Court that is not at

tion can be found on the Tax Court’s website at

issue on appeal to a higher court. The court can order

these refunds before its decision on the case is final.

Generally, the IRS is not permitted to take action on a

Motion to request redetermination of interest. In cer-

tax deficiency during:

tain cases, you can file a motion asking the Tax Court to

•

redetermine the amount of interest on either an underpay-

The 90-day (or 150-day if outside the United States)

ment or an overpayment. You can do this only in a situation

period that you have to petition a notice of deficiency

that meets all of the following requirements.

to the Tax Court, or

•

The IRS has assessed a deficiency that was deter-

The period that the case is under appeal if a bond is

mined by the Tax Court.

provided.

•

The assessment included interest.

•

You have paid the entire amount of the deficiency

Claims for Refund

plus the interest claimed by the IRS.

•

The Tax Court has found that you made an overpay-

If you believe you have overpaid your tax, you have a

ment.

limited amount of time in which to file a claim for a credit or

You must file the motion within one year after the decision

refund. You can claim a credit or refund by filing Form

of the Tax Court becomes final.

1040X. See Time for Filing a Claim for Refund, later.

File your claim by mailing it to the Internal Revenue

District Court and Court of Federal Claims

Service Center where you filed your original return. File a

separate form for each year or period involved. Include an

Generally, the District Court and the Court of Federal

explanation of each item of income, deduction, or credit on

Claims hear tax cases only after you have paid the tax and

which you are basing your claim.

filed a claim for a credit or refund. As explained later under

Corporations should file Form 1120X, Amended U.S.

Claims for Refund, you can file a claim with the IRS for a

Corporation Income Tax Return, or other form appropriate

credit or refund if you think that the tax you paid is incorrect

or excessive. If your claim is totally or partially disallowed

to the type of credit or refund claimed.

Page 12

Publication 556 (Rev. August 2005) - Examination Of Returns, Appeal Rights,and Claims For Refund Page 12

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