RETURN Act

This bill would require the IRS to review and decide on each tax refund claim within 12 months of receiving it, unless the IRS and the taxpayer agree on another date. If the IRS denies a claim in whole or in part, it must mail the taxpayer a detailed written explanation and, where an appeal is available, instructions for appealing to the IRS Independent Office of Appeals. If the IRS misses the deadline, the interest rate paid on the overpayment would rise by 1 percentage point, with the added interest capped at $500 per claim and adjusted for inflation after 2026. Claims based on positions already ruled frivolous would only get a mailed denial notice. The rules would apply to claims received starting 12 months after the bill becomes law.

Full text and official record on Congress.gov

Sponsors

• Deborah K. Ross Democrat sponsor
• 5 cosponsors