The Elastic Statute of Limitations on Claims for Refund

Why Old Claims May Still Be Open

Fabio Ambrosio, JD, LLM, CPA/PFS/ABV, CGMA, CFP, EA, CVA, MAFF, CFE

In BriefTax professionals have traditionally cited the statute of limitations on claims for refund to be the later of two years from the date of payment or three years from the date of filing based on the plain language of IRC section 6511. The author offers insights into the interplay of subsections (a) and (b) of section 6511, which causes a paradoxical scenario that has puzzled the courts for decades. After the IRS's loss in Weisbart v. U.S., recently revised Treasury Regulations indicate the IRS will reconsider all claims for refund previously disallowed on grounds similar to those in Weisbart, no matter how old.