RETURN Act

Sponsor: Deborah K. Ross (Democratic-NC)June 25, 2026

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Introduced

In Committee

Passed One Chamber

Passed Both Chambers

Signed into Law

Referred to the House Committee on Ways and Means.

Taxpayers would get clear reasons for denied refunds and faster IRS responses.

This bill would make the IRS give clear, written reasons for denying tax refunds within 12 months. If the IRS is late, taxpayers could get extra interest on their overpayments. This aims to help millions of taxpayers get faster, clearer answers about their refund claims.

What Would Change

Today, the IRS isn't explicitly required to give detailed reasons or meet a specific deadline for denying refund claims. They also don't face an increased interest penalty for delays. If this bill becomes law, the IRS would have to provide detailed explanations for denied refunds and make decisions within 12 months. If they miss that deadline, taxpayers would get an extra 1 percentage point in interest on their overpayment, capped at $500.

Key Provisions

Requires the IRS to give detailed written explanations for denied refund claims.
Requires the IRS to make a decision on refund claims within 12 months, or a date agreed upon by the taxpayer.
Increases the interest rate by 1 percentage point on overpayments if the IRS misses the 12-month deadline for a refund decision.
Caps the extra interest paid by the IRS for delayed decisions at $500, with future adjustments for inflation.
Clarifies that detailed explanations are not needed for frivolous claims, but a denial notice must still be sent.

View on Congress.gov

HR 9481 · 119th Congress · June 25, 2026 · AI Summary by gemini-2.5-flash · 9/10

RETURN Act

What Would Change

Key Provisions

Lobbying Activity