Letter 510C, Refund In Error; Return Check, tells you the IRS issued a refund it now believes you were not entitled to and asks you to send it back. Common causes include a payment applied to the wrong account, a duplicate refund, a refund issued before an adjustment posted, or a processing error on a return.

If You Have Not Cashed It

Don't. Follow the instructions in the letter to return the check. Holding or depositing it only creates a balance that will have to be unwound later.

If You Already Cashed It

Find out why the IRS says the refund was wrong before you pay it back. Pull your account transcript and compare it with your records. If the IRS is right, repay it promptly, because interest can accrue on an erroneous refund. If the IRS is wrong, respond in writing with documentation showing you were entitled to the money.

Large or Disputed Refunds

The IRS's tools for recovering an erroneous refund depend on why the refund was wrong, and some require it to act within strict time limits. If the amount is significant and you believe the refund was correct, get advice before you send anything.

If you received Letter 510C, call us at (813) 229-7100.