After filing your return and expecting money back, the IRS sends you a notice saying you are not entitled to it. Being denied a tax refund is frustrating. Depending on the amount you expected, it could also be financially devastating. That denial might feel final, but it does not have to be. Taxpayers have legal options to challenge those decisions, especially when they believe the IRS got it wrong.
A Richmond tax refund litigation lawyer helps individuals and businesses push back when the IRS refuses to issue a refund. While not every case ends up in court, knowing the process and your rights is the first step in getting the money you believe you are owed. A tax litigation lawyer can help navigate that path forward.
IRS refund denials can happen for several reasons. Some are procedural, and some are more complex. Understanding why a claim was rejected can help a taxpayer decide if pursuing a legal challenge makes sense.
Some of the most common reasons for a refund denial include:
It is important to distinguish between a refund delay, which may result from IRS backlog or a request for more information, and a formal denial. Once a refund denial is issued, an attorney in Richmond could help you take legal action against the IRS.
If a refund claim is denied, the law allows taxpayers to take the matter to court. Under 26 U.S. Code § 7422, a person must file a claim with the IRS first. Only after the claim is denied or not addressed within six months can they file a lawsuit to recover the refund.
To proceed with litigation, the following must apply:
Refund lawsuits can be filed in either a U.S. District Court or the U.S. Court of Federal Claims. Richmond taxpayers would typically file in a federal district court in Virginia. Unlike Tax Court, where the tax does not have ot be paid first, a refund suit requires that the taxpayer has already paid the disputed amount.
A denied refund does not always mean the IRS is right. If your refund claim was rejected and you believe you followed the law, you may still have a legal path forward. The key is to act quickly and work with an experienced attorney who understands how refund litigation works.
Contact a Richmond tax refund litigation lawyer to discuss your options. Having an experienced legal representative can make all the difference, no matter where you are in the dispute process. Do not let a denied fund go unchallenged. Get the legal help you need to recover what you are owed.