IRS Form 8691 – IRS Forms, Instructions, Pubs 2026 – If you’ve been involved in a tax refund lawsuit against the IRS and the government has settled or conceded the case, you may indirectly benefit from IRS Form 8691. This internal memorandum plays a critical role in processing refunds after favorable resolutions in tax litigation. While taxpayers do not file this form themselves, understanding it helps explain how refunds move from court approval to actual payment.
This comprehensive guide, based on official IRS sources as of February 2026, covers everything about Form 8691—including its purpose, who uses it, the filing process, key differences from related forms, and the official download link.
What Is IRS Form 8691?
IRS Form 8691, officially titled Internal Revenue Service Memorandum Refund Pursuant To: Settlement/Government Concession (Revision Date: June 2022), is a specialized internal memorandum used exclusively by IRS and Department of Justice (DOJ) personnel.
Its primary purpose is to recommend and authorize the issuance of a tax refund (including tax, penalties, and interest) to a taxpayer when the government has settled a refund suit or conceded the case entirely or partially.
The form serves as an official instruction from the DOJ Tax Division or IRS Chief Counsel to the appropriate IRS Campus (processing center) to issue the refund check or credit. It also addresses potential offsets under IRC Section 6402 (crediting overpayments against other tax liabilities) and specifies where the refund should be sent.
Key facts about the current version (as of 2026):
- Revision date: June 2022
- Catalog Number: 64554T
- Posted on IRS.gov: July 5, 2022
- No newer revision has been issued
Official Download:
Download IRS Form 8691 PDF
The one-page form is a straightforward memorandum template with fields for:
- Date
- “To” (recipient at the IRS Campus)
- Subject line (“Refund pursuant to Settlement/Government Concession”)
- Case description
- Recommended refund amounts (supported by attached recomputation)
- Standard language directing payment and advising the office when the check or credit notice is issued
- Enclosures required (transcript of account, recomputation, DOJ letter)
- Mailing instructions for the refund check to the Assistant Attorney General, Tax Division, DOJ in Washington, DC
Who Uses IRS Form 8691? (Hint: Not Taxpayers)
Form 8691 is not a form that individual or business taxpayers prepare or file. It is strictly an internal government document used in refund litigation handled by the DOJ Tax Division.
Primary users include:
- DOJ Tax Division attorneys (who often prepare it as their internal “Form M-4457”)
- IRS Chief Counsel field attorneys (who may prepare, review, or forward it)
According to the Internal Revenue Manual (IRM) 34.10.1.2.2.1, the form is prepared at the conclusion of a refund suit when the government settles or concedes the case, resulting in a refund or credit due to the taxpayer.
Important: Taxpayers cannot submit Form 8691 themselves. If your refund case reaches settlement or concession, the government attorneys handling the litigation will prepare and route this memorandum automatically.
When Is Form 8691 Used?
Form 8691 is required in these specific refund litigation scenarios:
- The government settles the refund suit (partial or full settlement in favor of the taxpayer).
- The government concedes the case (admits the taxpayer is entitled to the refund).
It is not used when a final court judgment has been entered in favor of the taxpayer—that scenario uses Form 8690 (Memorandum — Refund Pursuant to Judgment).
The process ensures the refund (including statutory interest) is computed accurately and issued promptly. The case cannot be closed until the refund is paid, making timely preparation of Form 8691 essential.
How the Form 8691 Refund Process Works (Step-by-Step)?
- Case Resolution — Refund suit ends via settlement or government concession.
- Computation Prepared — Appeals Tax Computation Specialists or appropriate IRS personnel calculate the exact refund amount, including breakdowns by tax period, penalties, and underpayment interest.
- Form 8691 Prepared — DOJ attorney (preferred) or IRS field attorney completes the memorandum, attaching:
- Transcript of Account
- Recomputation dated
- DOJ closing letter
- Transmission to IRS Campus — Sent to the correct IRS processing campus (determined by Exhibits in IRM 34.12.1).
- IRS Processes Refund — Campus issues the check or credit notice and advises the originating office.
- Refund Delivered — Check is mailed to the DOJ address specified on the form (or credited as appropriate).
The IRM emphasizes communication between field attorneys and DOJ attorneys to ensure the memorandum is prepared and transmitted promptly.
Form 8691 vs. Form 8690: Key Differences
| Aspect | Form 8691 (Settlement/Concession) | Form 8690 (Judgment) |
|---|---|---|
| Trigger | Settlement or government concession | Final judgment entered in taxpayer’s favor |
| Primary Preparer | DOJ attorney (Form M-4457) or IRS field attorney | IRS field attorney |
| Use Case | Negotiated resolution | Court-ordered judgment |
| Enclosures | Recomputation, DOJ letter, transcript | Certified judgment, computation, etc. |
Why Form 8691 Matters in Tax Disputes
Even though taxpayers never see or file Form 8691 directly, it is the critical internal document that turns a favorable settlement or concession into actual money in your bank account. Delays in preparing or routing the memorandum can slow down refund issuance, which is why the IRM stresses timely action.
The form also protects the government’s interests by explicitly referencing IRC Section 6402 offset rights.
How to Download the Latest IRS Form 8691?
The most current version is always available directly from the official IRS Forms and Instructions page:
You can also find it by searching “Form 8691” on IRS.gov under Forms, Instructions and Publications.
Note: No separate instructions PDF exists for Form 8691 because it is a simple internal memorandum. Full procedural guidance appears in IRM 34.10.1 (General Procedures for Refund Litigation Payment Memoranda).
Frequently Asked Questions (FAQ)
- Can I file IRS Form 8691 myself to claim a refund?
No. This is an internal government memorandum only. Taxpayers use Form 843, Form 1040-X, or litigation through the courts/DOJ for refunds. - What if my tax case was settled out of court?
The DOJ or IRS attorneys handling your case will prepare Form 8691 (or M-4457) to process your refund. - How long does it take to receive a refund after settlement?
It depends on processing times at the IRS Campus, but the IRM requires timely preparation precisely to avoid delays. - Is there a 2025 or 2026 version of Form 8691?
No—the June 2022 revision remains the current version as of February 2026.
Final Thoughts
IRS Form 8691 may be one of the least-known tax forms, but it plays an essential behind-the-scenes role in delivering refunds to taxpayers who successfully resolve disputes through settlement or government concession. Understanding its function helps set realistic expectations about the final steps in refund litigation.
For the most accurate and up-to-date information, always refer to official IRS sources:
If you are currently involved in tax refund litigation or have questions about a settlement, consult a qualified tax attorney or enrolled agent familiar with DOJ Tax Division procedures. They can help ensure your refund is processed smoothly once the government prepares the necessary internal memorandum.
This article is for informational purposes only and is not legal or tax advice. All information is sourced from official IRS.gov and IRM publications current as of February 2026.