A person generally doesn't want more of their hard-earned money being transferred from them to the government through taxes than is supposed to under the law. Unfortunately, the Internal Revenue Service sometimes collects from a person a tax that they didn't actually, under the law, owe. Such an over-collection can be very unsettling for a taxpayer and leave them wondering what they can do.
There are a variety of actions a taxpayer may be able to take in response to the IRS making an improper tax collection. One option that may be available is filing a lawsuit for the refund of improperly collected taxes.
Now, there are rules in place that make it so certain things have to happen before such a tax refund lawsuit can be filed. For example, generally, such a suit cannot be filed until the available administrative remedies with the IRS, such as filing a claim with the IRS, have been exhausted.
Also, once a taxpayer is eligible to bring such a lawsuit, there is typically a time limit on how long they have to file. Generally, a lawsuit for a refund of a tax over-collection cannot be filed once two years have passed since the IRS rejected a claim for the requested refund.
Thus, there are many timing issues connected to tax refund lawsuits. These sorts of issues can be important for a taxpayer to take into account when making decisions in their efforts to try to get a refund for improperly collected taxes.
Our firm can help individuals who believe they were subjected to an improper tax collection from the IRS understand what their current legal position is and how the various rules regarding remedies, such as timing rules, could impact their position over time. We can also help them with seeking out the right remedy for their situation.