What This Letter Means
Letter 1363 is a formal notice from the IRS Independent Office of Appeals that it disallowed part of your claim for refund. It's a legal notice of claim disallowance. Appeals sends it by certified mail, or registered mail if you're outside the United States. The letter must explain why the claim was disallowed.
Part of your claim was allowed. The disallowed part is what this letter puts on the clock. Letter 1364 is the version Appeals uses when the whole claim is disallowed.
Your Deadline
This letter starts the 2-year period for filing a refund suit. The suit is filed in a U.S. District Court or the U.S. Court of Federal Claims, not the Tax Court. Once the 2 years pass without a suit, a refund or credit for the disallowed issues is barred.
- Asking Appeals to reconsider later does not extend or shorten the 2-year period.
- Filing another amended return on the same issues does not restart it.
- The period can be extended only by a written agreement with the IRS (Form 907) signed before the period runs out.
What to Do
- Read the explanation for each disallowed issue.
- Find the mailing date and calendar the date 2 years later.
- Decide early whether a refund suit makes sense. Refund litigation takes preparation.
- If you accept the result, no response is needed. Keep the letter with your records for the year.
If You Disagree
Your remedy now is court. Appeals has already considered the claim. Talk with a tax attorney about the strength of the disallowed issues, the amount at stake, and which court fits your case.
If Appeals disallowed part of your refund claim and you're weighing a refund suit, call us at (813) 229-7100.