IRS webpage: Resource and information about refunds subject to review by Joint Committee on Taxation

Claims for refund or credit for amounts greater than $2 million ($5 million if a C corporation) must be reviewed by the JCT.

Subject to review by Joint Committee on Taxation

The IRS today announced the launch of a new webpage—Large Tax Refunds and Credits Subject to Review by the Joint Committee on Taxation – What to Expect—a resource for taxpayers providing information about tax refunds subject to review by the Joint Committee on Taxation (JCT).

As explained in a related IRS release—IR-2021-192—claims for refund or credit for amounts greater than $2 million ($5 million if a C corporation) must be reviewed by the IRS and also must be included in a report sent by the IRS to the JCT.

A JCT refund case may arise in various situations, such as:

  • A refund claim for previously assessed and paid taxes.
    • A refund claim may be made on an amended return or be made via a claim submitted during an examination.
    • A refund claim would be reviewed by the IRS and reported to the JCT before being paid.
  • A tentative refund from tentative carrybacks of net operating losses, capital losses or credits.
    • The tentative refund would be claimed on Form 1139, Corporation Application for Tentative Refund, or Form 1045, Application for Tentative Refund.
    • A tentative refund would be paid prior to IRS and JCT review.
  • A refund or credit of income taxes due to certain losses relating to federally declared disasters.

The new IRS webpage provides information about the JCT review process and answers the following questions about JCT case review:

  • What is a JCT refund case?
  • How does the IRS handle a JCT refund case?
  • What actions or steps do taxpayers need to take?

 

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