The LTR 106C is another formal claim disallowance letter in the IRS's claim processing system. It serves the same function as the LTR 86C and LTR 105C: the IRS has denied your claim for refund or credit. The letter explains the denial and your right to challenge it.
Same Rights, Same Deadlines
Your options mirror those for any claim disallowance: request an Appeals conference, file a written protest, or file a refund suit within 2 years. The specific path depends on the amount at stake and the strength of your position.
Why Multiple Disallowance Letters Exist
The IRS uses different letter numbers for different processing tracks and IRS functions. The LTR 86C, 105C, 106C, and 107C all disallow claims but may be generated by different units within the IRS. The legal effect is the same regardless of which letter number appears.
Don't Let Deadlines Pass
The 2-year refund suit deadline is absolute. If you miss it, the disallowance is permanent. Even if you plan to pursue Appeals first, keep the 2-year date on your calendar as a backstop.
If you received an LTR 106C, call us at (813) 229-7100. We evaluate claim disallowances and advise on the best path forward.