Skip to main content

Primary tabs

Title 6: Tax

6-7.000 - Post-litigation Unit

6-7.100 Duties of the Post-Litigation Unit
6-7.200 Delivery of Checks

6-7.100 - Duties of the Post-Litigation Unit

When the Government owes the taxpayer a refund or payment of costs or attorneys' fees as a result of a compromise, concession, or final judgment, the Post-Litigation Unit of the Office of Review is responsible for ensuring that the Government timely issues a refund check, notice of credit, or other check. The unit also closes the case at the appropriate time.

[updated September 2007]

6-7.200 - Delivery of Checks

In cases handled by the United States Attorney, the Post-Litigation Unit forwards the refund check and/or notice of credit, together with a notice of adjustment, Form 1331-B, to the United States Attorney. In turn, the United States Attorney should deliver these to the taxpayer's counsel of record. See USAM 6-6.613. When appropriate, the Post-Litigation Unit will also forward a separate check for costs, fees, and expenses payable from the judgment fund. 31 U.S.C. § 1304. If the United States Attorney or the taxpayer disagrees with the amount of a check, the Tax Division should be advised immediately. The Tax Division may instruct the United States Attorney to tender a check to the counsel of record unconditionally in order to stop the running of interest. Acceptance of the refund check does not prejudice the taxpayer's right to claim any additional amount. See 26 U.S.C. § 6611(b)(2).

When handling a settlement that involves only litigation costs or attorneys' fees, the United States Attorney must request payment either from the Judgment Fund under 31 U.S.C. § 3104 or the IRS, as appropriate.Compare 26 U.S.C. § 7430 (d)(1) with 28 U.S.C. § 2412(d)(4).

[updated September 2007] [cited in USAM 6-5.750]