When does IRS refund check expire?
Q.What is the time limit for cashing an IRS refund check? My son received a refund check last May for the 2002 tax year. He neglected to cash it. He believes that he had only 90 days to cash an IRS refund check. So he believes the refund check is now worthless. Assuming that my son now wants the refund money, what should he do, if the refund check is indeed expired? For example, is there a procedure for requesting that the IRS issue a new refund check (if necessary)? If so, what is the time limit for such a request? To compound the problem, I believe that the IRS refund is in excess of the refund due. Along with the refund check, my son received a notice that the IRS "corrected" the tax computation. The IRS "correction" resulted in a larger refund. The notice indicated that my son had 60 days to challenge the "correction". At the time, I explained to my son that the IRS must have misread a handwritten "computer zero" (slashed zero) for a "one". That resulted in a miscalculation by the IRS. My son was supposed to send the explanation to the IRS and request a new refund check. He never did. And of course, by now the 60-day period has elapsed. Given those facts, what should my son do now about the refund? Even if the check is redeemable, should he cash it, given that it is more than he deserves? I presume that the IRS has until 2006 to review the tax return and send a new notice of correction, essentially overruling their previous "correction". If that happened, would my son owe interest (at least) on the amount of the refund that exceeds the correct refund?
A.Your instinct is most likely accurate, and if we are talking about tax year -2002, these returns will be going into CP-2000 analysis this Summer, if the suspected transcription error results in a {RE-ADJUSTMENT} your son will be liable for the balance of tax due plus interest. He really should have Protested the increased refund, and explained his perception of the correct tax liability, with that additional information the tax examiner would have been able to make the most accurate adjustment possible 99% of the time. Today he could now return the UNCASHED-VOIDED refund with a Letter of explanation and a EXACT copy of the return for review and adjustment. Once the fix is made and the account settled, the NET true refund would be mailed to him. Since we are getting close to CP-2000 process year the cases are being classified & and queued up for analysis & review, he may get a contact letter at the same time or soon after voluntarily resolving the issue, If this happens make sure they are aware the resolution is/was in process. All Federal Government checks expire 1 year after the issue date. After that you must request a re-issue from the original agency.
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