What is the legal basis for a Protective Refund Claim? Where is this authorized?

The concept of a protective claim is not explicitly found in the Internal Revenue Code or Treasury Regulations, but it is well established in case law and recognized by the IRS. The Supreme Court in United States v. Kales, 314 U.S. 186 (1941), and subsequent IRS guidance, have affirmed the validity and function of protective claims.