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What is a joint committee refund case?

When a taxpayer claims a refund or credit of more than $2 million ($5 million for C corporations), the IRS is required to review the refund or credit and provide a report to the Joint Committee of Taxation. The Joint Committee of Taxation is a non-partisan committee of the U.S. Congress. Refunds that exceed the limits above are known as a “Joint Committee Refund Case.”

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A new webpage was released on October 19, 2021, to assist taxpayers with these refunds subject to review by the Joint Committee of Taxation. You can visit the webpage here. It covers what is considered a joint committee refund case, how the IRS handles a joint committee refund case and what taxpayers need to do if you have a joint committee refund case.

A joint committee refund case can be caused by any of the following:

  1. A refund claim for previously assessed and paid taxes such as with an amended return or upon examination.
  2. A tentative refund created by the carryback of net operating losses, capital losses or credits.
  3. A refund or credit of income taxes caused by federally declared disasters.

If a taxpayer has a joint committee refund, the claim would be reviewed by the IRS and reported to the Joint Committee of Taxation before being paid out to the taxpayer.

The Joint Committee of Taxation contacts all taxpayers who have a joint committee refund that is subject to review. Agents will contact taxpayers for more information regarding the claim such as tax history, explanation for the refund or credit, or supporting documents for the claim. Taxpayers who have been contacted should work with the agent assigned to the Joint Committee Refund Case, so the refund can be paid out.

If you have any questions, contact a Henry+Horne professional for more information.

KC Kolb, CPA

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