The LTR 107C means the IRS partially allowed your claim. They agreed with some of what you requested and denied the rest. The letter shows how much was allowed and how much was denied, along with the reasons for the denial of the remaining portion.
Reconcile the Amounts
Review the allowed portion against your original claim. Verify the math. Then review the denied portion and the IRS's explanation. Determine whether the denied items have merit or whether the IRS's reasoning is sound.
Challenging the Denied Portion
You can accept the partial allowance and move on, or you can challenge the denied portion through Appeals or a refund suit. The same deadlines apply as for a full disallowance: 2 years from the date of the LTR 107C to file a refund suit.
If the denied portion is small relative to the cost of challenging it, acceptance may be the practical choice. If the denied portion is significant, Appeals is worth pursuing. Appeals Officers frequently settle partial disallowances by splitting the difference or accepting additional documentation.
The Allowed Portion
The refund or credit for the allowed portion should be processed automatically. Monitor your account to confirm the allowed amount is posted. If it's not reflected within 6 to 8 weeks, follow up with the IRS.
If your claim was partially denied, call us at (813) 229-7100. We can evaluate whether challenging the denied portion makes sense.