Denied IRS Refund

[mstaxresolution@gmail.com]

TP was denied refund for tax year 2016 although return was filed within 3 years of filing date. TP postal mailed the return "Certified" and has tracking info proving that Fresno received the return timely pursuant to IRC 6511. Where should I mail a protest letter and how should I word the letter?

[ATSMAN]

Taxpayer Advocate serving the taxpayers jurisdiction

https://www.taxpayeradvocate.irs.gov/

[New York Enrolled Agent]

TP was denied refund for tax year 2016 although return was filed within 3 years of filing date. TP postal mailed the return "Certified" and has tracking info proving that Fresno received the return timely pursuant to IRC 6511. Where should I mail a protest letter and how should I word the letter?

It's hard to give a full answer without more details.

There are two important subsections in section 6511 relevant to your post - you apparently satisfied subsection 6511(a). You don't give any indication if subsection 6511(b) is satisfied - that subsection is often the problem. Was the original 2016 Form 1040 timely filed or was it filed after the due date without an extension?

[mstaxresolution@gmail.com]

My apologies for not clarifying. Both §6511(a) & (b) were satisfied.

[New York Enrolled Agent]

My apologies for not clarifying. Both §6511(a) & (b) were satisfied.

Did the denial letter give a right to Appeal?

[mstaxresolution@gmail.com]

TP moved and didn't leave a forwarding address at the PO; consequently he hasn't been receiving any IRS notices. All the information I have was obtained through his Account Transcript (POA).

[New York Enrolled Agent]

TP moved and didn't leave a forwarding address at the PO; consequently he hasn't been receiving any IRS notices. All the information I have was obtained through his Account Transcript (POA).

The Service Center might have it wrong but can you provide the dates regarding the first sentence in your original post?

How did the taxpayer become aware the refund was denied?

[mstaxresolution@gmail.com]

Certainly. 2016 return was due on April 15, 2017. No extension filed. I prepared the return and TP mailed (Certified) at 12:26 pm on April 13, 2020. Fresno received the return at 3:05 pm on April 15, 2020. Continually called PPS to check on processing and was informed to be patient. Concerned, but not overly worried since TP had proof the return HAD been received by the Service within the stated parameters of §6311(a). Regularly monitored Account Transcript. Processing eventually posted the return on July 19, 2021, but Transaction Code 820 was present on the transcript. Called PPS and was told that the refund had been declared an 'Excess Collection" or "Refund Expired". However, PPS sympathized and provided me with a fax number to send the protest letter. I just not certain if I should submit Form 843 or a protest letter. Thanks.

[New York Enrolled Agent]

Certainly. 2016 return was due on April 15, 2017. No extension filed. I prepared the return and TP mailed (Certified) at 12:26 pm on April 13, 2020. Fresno received the return at 3:05 pm on April 15, 2020. Continually called PPS to check on processing and was informed to be patient. Concerned, but not overly worried since TP had proof the return HAD been received by the Service within the stated parameters of §6311(a). Regularly monitored Account Transcript. Processing eventually posted the return on July 19, 2021, but Transaction Code 820 was present on the transcript. Called PPS and was told that the refund had been declared an 'Excess Collection" or "Refund Expired". However, PPS sympathized and provided me with a fax number to send the protest letter. I just not certain if I should submit Form 843 or a protest letter. Thanks.

Clearly, the Service Center personnel made an error and apparently used the 7/19 date. Personally, I would do the protest letter and fax it in to the number you were given.

I would probably cite and use Weisbart 222 F.3d 93 as your ace in the hole.

While the facts are a bit different, the Service acquiesced to the decision. In AOD 2000-9 here are the final words:Accordingly, the Service will apply the timely mailing/ timely filing rule of section 7502(a) in such cases and treat claims for refund included on delinquent original returns as filed on the date of mailing for purposes of section 6511(b)(2)(A).

[FEDUKE404]

TP moved and didn't leave a forwarding address at the PO; consequently he hasn't been receiving any IRS notices. All the information I have was obtained through his Account Transcript (POA).

The importance of a timely filing of Form 8822, although in a COVID IRS world it might not do much good.
FWIW, I don't think IRS correspondence CAN be "forwarded."

[mstaxresolution@gmail.com]

Thank you "New York Enrolled Agent", for the applicable tax law and your advice. That's exactly the authoritative cite I need.

Thank you "Feduke404" for your reply also. Yes, I was aware that the Service will not forward, hence my reliance on the transcript.