Services: Statute of Limitation: Why Did the IRS Keep My Refund?

Understanding the Statute of Limitation on Unpaid Tax

The IRS will typically keep or delay your refund if you have an unpaid tax liability for other years, if you have unfiled tax returns, if you are in bankruptcy or if you are under audit. There is also a refund statute of limitation on refunds where the IRS is barred by law from sending a refund on an older tax return to you. Most people do not realize that the law can bar the IRS from sending a refund to you if you do not act within the time period for doing so.

If your tax return was due greater than three years ago, the IRS may be prohibited from issuing a refund for that year, and you will receive notice of a Barred Refund if you try to collect. However, if an older tax was actually paid within the last two years, the IRS may be able to issue that refund.

There are some limited exceptions to the refund statute of limitation. Patrick T. Sheehan & Associates, Attorneys at Law, P.C., has successfully obtained refunds for many of its clients since its inception in 1991. We will build upon our past successes and continue developing effective strategies to obtain refunds for our clients.

If you believe that the IRS has improperly seized or delayed your refund, call us. Or, learn more about “How long does the IRS have to collect money from me?” or “How long does the IRS have to audit my tax returns?”

We can help. Call us before the IRS calls you!®