Can I sue the IRS for holding my money?
Asked by: Dr. Clair Anderson | Last update: April 12, 2025Score: 4.1/5 (64 votes)
Once all administrative remedies have been exhausted and if your issue remains unresolved, you can then file a lawsuit against the IRS in either U.S District Court or U.S Tax Court depending on your specific situation.
Can you sue the IRS for holding your refund?
Generally, if you fully paid the tax and the IRS denies your tax refund claim, or if the IRS takes no action on the claim within six months, then you may file a refund suit. You can file a suit in a United States District Court or the United States Court of Federal Claims.
How long can the IRS legally hold your taxes?
The IRS generally has 10 years – from the date your tax was assessed – to collect the tax and any associated penalties and interest from you. This time period is called the Collection Statute Expiration Date (CSED).
How do I get the IRS to release my refund?
Request an expedited refund by calling the IRS at 800-829-1040 (TTY/TDD 800-829-4059). Request a manual refund expedited to you.
How to file a suit against the IRS?
You must file a petition to begin a case in the Tax Court. You can file a paper petition by mail or in person, or you can file an electronic petition through the Court's DAWSON system.
Where is IRS 2021 tax refunds?! Can you sue IRS for emotional distress?
What kind of lawyer do I need to sue the IRS?
Tax disputes: If you're being audited, have a tax dispute, want to sue the IRS, the state, or a local tax authority over a tax matter, or if you want a hearing before the U.S. Tax Court, a tax attorney can help.
How do I fight back against the IRS?
Requesting an appeal
If taxpayers are eligible to submit an appeal, they can write a letter to request an appeal and mail it to the IRS address on the letter they received with their appeal rights.
What if the IRS is holding my refund for 60 days?
If you haven't received your refund or heard from us after 60 days, you can call us at the number listed above. Someone may have attempted to use your personal information to obtain a tax refund. 14039 instructions, along with a copy of this notice. Notify your financial institutions.
What do I do if the IRS won't give me my refund?
If you never received your tax refund
If you were expecting a federal tax refund and did not receive it, check the IRS Where's My Refund page. You will need to enter your Social Security number, filing status, and the exact whole dollar amount of your refund.
How long can the IRS freeze your refund?
Normally, you'll receive IRS Letter CP88 indicating that your refund is frozen until the IRS completes the audit. If you respond with the requested information by the deadline, the IRS will generally finish the audit within six months and can release your refund.
What happens if the IRS holds your refund?
If the IRS thinks you claimed erroneous deductions or credits, the IRS can hold your refund. In this case, the IRS will audit you to figure out whether your return is accurate. If you prove to the IRS that you correctly took the deductions and/or credits, the IRS will issue your refund or corrected refund.
What is the IRS 6 year rule?
6 years - If you don't report income that you should have reported, and it's more than 25% of the gross income shown on the return, or it's attributable to foreign financial assets and is more than $5,000, the time to assess tax is 6 years from the date you filed the return.
Does the IRS forgive debt after 10 years?
The IRS generally has 10 years from the assessment date to collect unpaid taxes. The IRS can't extend this 10-year period unless the taxpayer agrees to extend the period as part of an installment agreement to pay tax debt or a court judgment allows the IRS to collect unpaid tax after the 10-year period.
What is the longest the IRS can hold your refund?
How long can IRS legally hold refund? There is no statutory limit. However, after 45 days from the filing deadline they must pay interest on the refund, and after six months you can sue them in the Court of Claims.
Should I be worried if my refund is still being processed?
If your refund details state that it's still processing, you can check your tax return to see if you catch any errors. If your refund status instructs you to contact the IRS, you can speak to an agent to get clarification by calling 1-800-829-1040.
How to apply for IRS fresh start?
If you don't want an online enrolment, you can always make a proposal for the IRS Fresh Start Program by filling and submitting an IRS Form 9465 that's available on IRS gov. Once again, the Fresh Start Program helps you pay off your tax debt in an affordable manner, without the risk of going into debt.
Should I be worried if my refund is delayed?
Your refund may be delayed for several reasons. In some cases, you'll just get the money later than expected. In others, the IRS may send you a letter asking for additional information before it can finish processing your return and send your refund.
Can I sue the IRS?
Yes, you can sue the Internal Revenue Service (IRS) in federal tax court for limited issues relating to your tax refund claim, an audit from the IRS, or a countersuit in response to the IRS suing you in the United States Tax Court for unpaid taxes. Keep in mind these are all technical matters for which you can sue.
How long can the IRS hold your refund for review?
If the IRS is reviewing your return, it may have questions about your wages and withholding, or credits or expenses shown on your tax return. The review process could take anywhere from 45 to 180 days, depending on the number and types of issues the IRS is reviewing.
What to do if the IRS owes you money?
You may call us toll-free at 800-829-1040, M - F, 7 a.m. - 7 p.m. Generally, if the financial institution recovers the funds and returns them to the IRS, the IRS will send a paper refund check to your last known address on file with the IRS.
What is the 60 day refund rule?
The federal Overpayment Statute requires any person who receives or retains Medicare or Medicaid funds to which they are not entitled to report and return the overpayment to the appropriate government official or contractor within 60 days after "identification" of the overpayment.
What if I haven't received my tax refund after 60 days?
You need to contact the IRS if your tax return is still being processed for almost 60 days. The IRS is reviewing your return because there is something in your return that they want to verify or look at more closely.
Can I sue the IRS for emotional distress?
A: The IRS cannot be sued for emotional distress/punitive damages. However, you have the right to sue for compensatory damages in cases based on certain types of abusive debt collection practices.
How do I stop the IRS from taking my refund?
If you have an objection to the debt, you have the right to request a review of your objection. If you're successful, your tax refund and other federal payments will not be offset, or the amount being offset may be reduced.
Who can help me fight the IRS?
The Taxpayer Advocate Service (TAS) is an independent organization within the IRS and is your voice at the IRS.