Taxpayers would have more time to file refund claims during disputes with the IRS, and the IRS would be barred from using refunds to pay down other liabilities, under
Taxpayers generally have up to three years to claim a federal income tax refund or credit. The bill would suspend this statute of limitations during a hearing or appeal on IRS collection actions. The pause would only apply to a refund or credit that relates to a disputed liability at those hearings.
During the dispute period, the IRS would be prohibited from applying any overpayments made by the ...