Overpayment Refund Requests
It is not uncommon for changes in interest rates to result in an issuer earning negative arbitrage which may be used to offset arbitrage earned and already paid, making the issuer eligible to apply for a refund of prior rebate payments. Pinnacle monitors possible refund request opportunities as part of our rebate calculation service and notifies clients when a refund opportunity exists. Pinnacle provides refund request analysis which includes the preparation of the refund request and assistance in answering any questions the IRS may have about the request.
Our approach to the recovery of overpayments is pursuant to the Regulations. Overpayments can only be recovered to the extent that the recovery does not result in additional rebate as of the date the recovery is requested. We determine the maximum allowable refund, consult with the client, and offer to file a recovery request with supporting documentation. IRS agents reviewing recovery requests must be satisfied the refund request is valid, and it is not uncommon for them to have questions. Our involvement does not end with the submission of the request. We assist our clients in resolving any rebate related questions that arise. We routinely include a Power of Attorney allowing us to deal directly with the IRS to expedite the recovery process.