What are the requirements of a Protective Refund Claim?

A valid protective claim must meet certain requirements, which have been clarified by case law, IRS guidance, and the Internal Revenue Manual:
1. Written and Signed: The claim must be in writing and signed by the taxpayer or their authorized representative. IRS Publication 556
2. Identification of Taxpayer and Period: It must include the taxpayer\’s name, address, taxpayer identification number, and clearly identify the specific tax year(s) or period(s) for which a refund is sought. IRS Publication 556
3. Description of Contingency: The claim must identify and describe the contingencies affecting the claim. It should explain the future event(s) or pending litigation that will determine the taxpayer\’s right to a refund. CCA 200547011, ECC 200848045
4. Essential Nature of the Claim: The claim must be sufficiently clear and definite to alert the IRS to the essential nature of the claim. It should state the legal and factual grounds for the claim, even if the exact amount of the refund cannot be determined at the time of filing. CCA 200547011, ECC 200848045
5. No Need for Specific Dollar Amount: A protective claim does not need to state a particular dollar amount or demand an immediate refund, as the amount may not be determinable until the contingency is resolved. CCA 200547011, IRS Publication 556
6. Timeliness: The claim must be filed within the applicable statute of limitations for refund claims (generally three years from the date the return was filed or two years from the date the tax was paid, whichever is later, unless a special period applies). IRS Publication 556