The Internal Revenue Service (IRS) set up a new webpage to guide taxpayers whose refunds or credits are subject to review by the Joint Committee on Taxation (JCT).
The JCT is a non-partisan committee of Congress. When a taxpayer claims refunds or credits of more than $2 million or $5 million for C corporations, the IRS is required by law to review the claims and furnish a report to the JCT. The report contains the taxpayer’s history, reasons for the refund or credits and supporting evidence for all IRS adjustments. In some instances, the IRS may contact the taxpayer for more information when preparing the report.
The new webpage provides taxpayers with general information on JCT refund cases, the IRS’s role in handling those cases and additional resources to assist the taxpayers. The site also supplies taxpayers with scenarios where JCT refund cases may arise. These situations involve refund claims for taxes that have already been assessed and paid, claims from the tentative carryback of net operating or capital losses, or claims from certain losses related to federally declared disaster areas.
JCT does not handle cases dealing with a refund or credit of employment taxes, certain excise taxes, trust fund recovery penalties or estimated payments. Additionally, JCT will not review cases involving abatements of unpaid liabilities or refunds or credits reduced below the $2 million and $5 million thresholds because of additional tax owed.
The IRS encourages taxpayers to visit the new website for more information regarding their refunds. Taxpayers contacted by an IRS agent should cooperate with that agent to resolve their JCT refund case.