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January 30, 2015


When the IRS refuses to change its position in a refund dispute

When a business owner is trying to keep their business financially strong and in a position to have a bright future, every little bit counts. Thus, it can be extremely frustrating for a business owner when it appears that the federal government is keeping more of the money that came from their business than it should under the tax laws.

This situation sometimes occurs in relation to tax refund matters. Sometimes, the Internal Revenue Service will give a business owner a smaller tax refund than the business owner feels that the tax code entitled them to.

Sometimes, business owners are able to reach an acceptable resolution to disputes over tax refunds through negotiating with the IRS. However, other times, the IRS will stick to its initial decision on a tax refund amount and refuse to be swayed by a business owner’s arguments.

It can be a very exasperating experience for a business owner when they feel they have a strong argument that they should have received a larger tax refund, but the IRS simply refuses to budge. They may be worried that the IRS saying no to their arguments means it is the end of any hope of the refund amount being changed.

It is important for business owners who are in such a situation to know that there may be further actions they can take. When unable to successfully negotiate a resolution to a tax refund dispute with the IRS, a taxpayer may be able to bring a lawsuit in relation to the dispute.

Our firm understands the complex nature of tax refund disputes and we can help business owners who disagree with the IRS about a tax refund amount determine if pursuing litigation is a step they should consider.