IRC 6511 – Refunds, Three-Year Statute, and Exception for Financial Disability

IRC 6511 establishes the rules and limitations for filing claims for credit or refund of overpaid federal taxes The section is central to determining whether a taxpayer is eligible to receive a refund and if so how much can be refunded A claim for credit or refund must be filed within the later of Three years from the time the return was filed or Two years from the time the tax was paid If no return was filed the claim must be filed within two years from the time the tax was paid There is an exception for financial disability under IRC 6511h which states that the running of the limitation periods is suspended during any period in which an individual is unable to manage their financial affairs due to a medically determinable physical or mental impairment expected to result in death or lasting at least 12 months This does not apply if a spouse or another person is authorized to act on the taxpayers behalf