IRS Letter 106C: Claim Partially Disallowed

What the IRS says: “The IRS allowed part of your refund claim and disallowed the rest, with appeal rights on the disallowed portion.” Here’s what it actually means, your deadline, and exactly how to respond.

Refund Holds & Unfiled ReturnsTime-sensitiveDeadline: 30 daysFree response letter draft

What Letter 106C actually means

The split decision: some of the claim paid, the remainder rejected. Same appeal architecture as the 105C (Appeals window + 2-year suit clock) applied to the disallowed slice. Verify the allowed portion actually arrives — partial payments have a way of getting lost in offsets.

Notice family: Refund Holds & Unfiled Returns — Your refund is frozen or the IRS has no return on file for a year it expected one. These resolve by filing, verifying, or sending exactly the documents requested — silence makes them worse.

Your deadline

30 days — for IRS Appeals on the disallowed portion; 2-year suit clock running.

Counted in calendar days from the notice date. The exact respond-by date printed on your notice always controls — check page 1.

Why you received Letter 106C

What to do about Letter 106C

1

Step 1

Reconcile which items were allowed vs disallowed

2

Step 2

Track the allowed refund to your bank/offset ledger

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Step 3

Protest the disallowed part with targeted documentation

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Step 4

Same 2-year suit backstop on the disallowed portion

How to respond

The protest letter narrows to the rejected items only — clean cases resolve at Appeals without ever testing the court deadline.

Draft a Letter 106C response letter now ↓

Draft your response letter

Describe the notice and your side of it — use placeholders, never your SSN or account numbers (the letter keeps [YOUR NAME]-style fields so you fill in the real details privately before mailing). A mail-ready draft with an enclosure checklist comes back in ~20 seconds.

Your IRS response letter draft will appear here.

Frequently asked questions

What does IRS Letter 106C mean?

The IRS allowed part of your refund claim and disallowed the rest, with appeal rights on the disallowed portion. In practice: The split decision: some of the claim paid, the remainder rejected. Same appeal architecture as the 105C (Appeals window + 2-year suit clock) applied to the disallowed slice. Verify the allowed portion actually arrives — partial payments have a way of getting lost in offsets.

How long do I have to respond to Letter 106C?

You generally have 30 days — for IRS Appeals on the disallowed portion; 2-year suit clock running. The respond-by date printed on your own notice always controls.

Should I respond to Letter 106C in writing?

The protest letter narrows to the rejected items only — clean cases resolve at Appeals without ever testing the court deadline.

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