RETURN Act
Sponsored By: Representative Ross, Deborah K. [D-NC-2]
Introduced
Summary
Clearer, faster IRS decisions on refund claims. This bill would require the IRS to decide refund claims on a predictable timeline and give taxpayers a written explanation and appeal instructions when claims are denied.
Show full summary
- Claimants would get a determination within 12 months of the IRS receiving a claim or another date the taxpayer and IRS agree to. If a claim is disallowed the IRS must mail a detailed explanation and instructions for appealing to the IRS Independent Office of Appeals.
- If the IRS misses the deadline the overpayment interest rate would be increased by 1 percentage point for any period after the applicable date, with that increase capped at $500 per claim. Beginning in 2027 the $500 cap would rise with a cost-of-living adjustment and be rounded to the nearest $50.
- Frivolous claims would not get the detailed explanation. Those claims would receive a mailed denial by the same deadline, and a frivolous claim is defined as one a federal court has found frivolous and that the IRS has identified under section 6702.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 0 benefits, 0 costs, 1 mixed.
Quicker IRS refund notices and cap
This bill would require the IRS to review any refund claim and decide it by the applicable date. If your claim is denied in whole or part, the IRS would mail a detailed written explanation to your last known address. When you can appeal, that notice would include instructions for appealing to the Independent Office of Appeals. For claims the IRS identifies as frivolous (a court found the position frivolous and the IRS designated it under section 6702(c)), the IRS would instead mail a written denial. If the IRS misses the decision deadline, interest on any overpayment for any period after that date would be increased by 1 percentage point. The extra interest would be capped at $500 per claim, with that cap indexed for inflation for calendar years after 2026 and rounded to the nearest $50. These rules would apply to refund claims received after the date that is 12 months after enactment of the Act.
Sponsors & CoSponsors
Sponsor
Ross, Deborah K. [D-NC-2]
NC • D
Cosponsors
Rep. Panetta, Jimmy [D-CA-19]
CA • D
Sponsored 6/25/2026
Rep. DeLauro, Rosa L. [D-CT-3]
CT • D
Sponsored 6/25/2026
Rep. Carson, André [D-IN-7]
IN • D
Sponsored 7/13/2026
Del. Norton, Eleanor Holmes [D-DC-At Large]
DC • D
Sponsored 7/13/2026
Rep. Moulton, Seth [D-MA-6]
MA • D
Sponsored 7/22/2026
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov