Timely tax filing is crucial

If a tax refund claim is denied, the taxpayer may file a refund lawsuit, within two years of the date the IRS mails the disallowance notice. In one case, a corporation received a refund that should have included (but didn’t) substantial interest due to the lateness of the refund. The corporation then filed a refund suit to recover the interest, but not within the two-year limit. The U.S. District Court rejected the claim, stating that, outside of the two-year limit, the court lacked jurisdiction.