diff --git a/pkgs/typed-racket-pkgs/typed-racket-lib/typed-racket/base-env/class-prims.rkt b/pkgs/typed-racket-pkgs/typed-racket-lib/typed-racket/base-env/class-prims.rkt
index 85740d05..e63e45b6 100644
--- a/pkgs/typed-racket-pkgs/typed-racket-lib/typed-racket/base-env/class-prims.rkt
+++ b/pkgs/typed-racket-pkgs/typed-racket-lib/typed-racket/base-env/class-prims.rkt
@@ -336,34 +336,35 @@
         (define optional-inits (get-optional-inits clauses))
         (ignore
          (tr:class
-          #`(let-values ()
-              #,(internal (make-class-name-table (attribute forall.type-variables)
-                                                 private-fields
-                                                 ordered-inits
-                                                 optional-inits
-                                                 name-dict))
-              (untyped-class #,annotated-super
-                #,@(map clause-stx clauses)
-                ;; construct in-body type annotations for clauses
-                #,@(apply append
-                          (for/list ([a-clause clauses])
-                            (match-define (clause _1 _2 ids types) a-clause)
-                            (for/list ([id ids] [type types]
-                                       #:when type)
-                              ;; FIXME: it might be cleaner to use the type-label-property
-                              ;;        here and use the property to build annotation tables
-                              ;;        in the class type-checker.
-                              (tr:class:type-annotation-property
-                               (tr:class:top-level-property
-                                #`(: #,(if (stx-pair? id) (stx-car id) id)
-                                     #,type)
-                                #t)
-                               #t))))
-                #,@(map non-clause-stx annotated-methods)
-                #,(tr:class:top-level-property
-                   #`(begin #,@(map non-clause-stx other-top-level))
-                   #t)
-                #,(make-locals-table name-dict private-fields)))))])]))
+          (quasisyntax/loc stx
+           (let-values ()
+             #,(internal (make-class-name-table (attribute forall.type-variables)
+                                                private-fields
+                                                ordered-inits
+                                                optional-inits
+                                                name-dict))
+             (untyped-class #,annotated-super
+               #,@(map clause-stx clauses)
+               ;; construct in-body type annotations for clauses
+               #,@(apply append
+                         (for/list ([a-clause clauses])
+                           (match-define (clause _1 _2 ids types) a-clause)
+                           (for/list ([id ids] [type types]
+                                      #:when type)
+                             ;; FIXME: it might be cleaner to use the type-label-property
+                             ;;        here and use the property to build annotation tables
+                             ;;        in the class type-checker.
+                             (tr:class:type-annotation-property
+                              (tr:class:top-level-property
+                               #`(: #,(if (stx-pair? id) (stx-car id) id)
+                                    #,type)
+                               #t)
+                              #t))))
+               #,@(map non-clause-stx annotated-methods)
+               #,(tr:class:top-level-property
+                  #`(begin #,@(map non-clause-stx other-top-level))
+                  #t)
+               #,(make-locals-table name-dict private-fields))))))])]))
 
 (begin-for-syntax
   ;; process-class-contents : Listof<Syntax> Dict<Id, Listof<Id>>
diff --git a/pkgs/typed-racket-pkgs/typed-racket-lib/typed-racket/typecheck/internal-forms.rkt b/pkgs/typed-racket-pkgs/typed-racket-lib/typed-racket/typecheck/internal-forms.rkt
index 80461e4e..a11abf7d 100644
--- a/pkgs/typed-racket-pkgs/typed-racket-lib/typed-racket/typecheck/internal-forms.rkt
+++ b/pkgs/typed-racket-pkgs/typed-racket-lib/typed-racket/typecheck/internal-forms.rkt
@@ -113,9 +113,14 @@
   [predicate-assertion
     (assert-predicate-internal type predicate)]
   [type-declaration
-    (:-internal id:identifier type)]
-  [typecheck-failure
-    (typecheck-fail-internal stx message:str var:id)])
+    (:-internal id:identifier type)])
+
+;; Define separately outside of `define-internal-classes` since this form
+;; is meant to appear in expression positions, so it doesn't make sense to use
+;; the `define-values` protocol used for other internal forms.
+(define-syntax-class typecheck-failure
+  #:literal-sets (kernel-literals internal-literals)
+  (pattern (quote-syntax (typecheck-fail-internal stx message:str var))))
 
 ;;; Internal form creation
 (begin-for-syntax
diff --git a/pkgs/typed-racket-pkgs/typed-racket-test/tests/typed-racket/unit-tests/typecheck-tests.rkt b/pkgs/typed-racket-pkgs/typed-racket-test/tests/typed-racket/unit-tests/typecheck-tests.rkt
index 1f81f11c..9e7427b5 100644
--- a/pkgs/typed-racket-pkgs/typed-racket-test/tests/typed-racket/unit-tests/typecheck-tests.rkt
+++ b/pkgs/typed-racket-pkgs/typed-racket-test/tests/typed-racket/unit-tests/typecheck-tests.rkt
@@ -2747,6 +2747,12 @@
            (f 1 2 3))
          #:ret (ret Univ -true-filter)]
 
+       ;; typecheck-fail should fail
+       [tc-err (typecheck-fail #'stx "typecheck-fail")
+               #:msg #rx"typecheck-fail"]
+       [tc-err (string-append (typecheck-fail #'stx "typecheck-fail") "bar")
+               #:ret (ret -String)
+               #:msg #rx"typecheck-fail"]
         )
   (test-suite
    "tc-literal tests"