Can I sue the IRS for not getting my refund?
Asked by: Karlie Murazik | Last update: January 17, 2026Score: 4.7/5 (25 votes)
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.
Can I sue the IRS for not processing my return?
No. You cannot sue the IRS. You can sue the USA because of something done by its agency, the IRS. Similarly, IRS cannot sue you. The local US Attorney's office, a part of the Department of Justice can sue you, if it is appropriate, on behalf of IRS.
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.
Is it illegal for the IRS to hold your refund?
If you owe a federal tax debt from a prior tax year, a debt to another federal agency, or certain debts under state law, the IRS may keep (offset) some or all your tax refund to pay your debt. In fact, in many situations the IRS is legally required to forward your refund to pay the debt.
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 reasons can you sue the IRS?
Taxpayers may bring suit, after exhaustion of administrative remedies, if any officer or employee of the Service, "knowingly or by reason of negligence" fails to release a lien under Section 6325 on property of the taxpayer. Damages are limited to actual, direct economic damages, plus the cost of the action.
How long can the IRS hold your refund for review?
See our Held or Stopped Refund page or our video for more information. If the IRS is reviewing your return, the review process could take anywhere from 45 to 180 days, depending on the number and types of issues the IRS is reviewing. Follow these steps if you know you made a mistake, before the IRS contacts you.
What's the longest the IRS can hold your tax 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.
Can I sue the IRS for holding my money?
Refund claims: If a refund claim has been denied or delayed by the IRS without justification, individuals may sue to recover their money. 5. Tax liability disputes: If an individual disagrees with the amount of tax owed to the IRS, they can file a lawsuit challenging their tax liability.
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.
Who is eligible for the IRS hardship program?
Income and necessary living expenses: The IRS compares your income against allowable living expenses, which include housing, utilities, food, clothing, transportation and healthcare. If your income barely covers or falls short of these basic expenses, you may qualify for hardship status.
What to do when IRS holds your refund?
If you're facing serious financial difficulties and need your refund immediately contact the Taxpayer Advocate Service at 877-777-4778. We may be able to expedite your refund.
What to do if I never got my refund?
Answer: If you lost your refund check, you should initiate a refund trace: Use Where's My Refund, call us at 800-829-1954 and use the automated system, or speak with an agent by calling 800-829-1040 (see telephone assistance for hours of operation).
What happens if the IRS doesn't give you your refund?
Your claim for a missing refund is processed one of two ways: If the check wasn't cashed, you'll receive a replacement check once the original check is canceled. If the refund check was cashed, the Bureau of the Fiscal Service (BFS) will provide you with a claim package that includes a copy of the cashed check.
Can you sue for no refund?
Consumers have legal rights, if you have been denied a refund it may take a lawsuit to get what you deserve. Whether or not companies must give refunds or other forms of recompense compensation can be a complicated legal matter. But what's pretty clear is that you shouldn't have to pay for something you don't receive.
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.
Can you take legal action against the IRS?
You are entitled to a fair and impartial administrative appeal of most IRS decisions, including many penalties, and have the right to receive a written response regarding the IRS Independent Office of Appeals' (hereinafter, Appeals) decision. You also generally have the right to take your case to court.
How to fight the IRS and win?
- Choose your battles. ...
- Seek advocacy for the appeals process. ...
- Straight to the point. ...
- Strictly adhere to submission deadlines. ...
- Communicate with the IRS in writing. ...
- Negotiate with revenue agents. ...
- Ensure IRS agents agree to your settlement.
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.
Can I sue the IRS for not giving me my 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.
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.
How long can the IRS legally take to process your refund?
If you file a complete and accurate paper tax return, your refund should be issued in about six to eight weeks from the date IRS receives your return. If you file your return electronically, your refund should be issued in less than three weeks, even faster when you choose direct deposit.
Why is my refund stuck on received?
Your refund may also be delayed if numbers on your return don't match documents the IRS received about your income. Common mistakes can also cause delays, such as math errors or typos on your Social Security number, or if the direct deposit account doesn't match the filing status on your return.
Does the IRS forgive tax 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.
How do I find out if my IRS owes me money?
Tax refunds – Use the IRS Where's My Refund? search tool if you have not received your tax refund. Stimulus checks – If you were eligible but did not receive one of the Economic Impact Payments, you may need to file or amend a tax return for 2020 or 2021. See the IRS guidelines for filing for a recovery rebate credit.