US (United States) Code. Title 26. Subtitle F: Procedure and administration. Chapter 65: Abatements, credits

Codificación normativa de EEUU (Estados Unidos) Legislación Federal estadounidense # Internal revenue code. Refunds

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26 USC CHAPTER 65 - ABATEMENTS, CREDITS, AND REFUNDS 01/06/03

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TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 65 - ABATEMENTS, CREDITS, AND REFUNDS

-HEAD-

CHAPTER 65 - ABATEMENTS, CREDITS, AND REFUNDS

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Subchapter Sec.(!1)

A. Procedure in general 6401

B. Rules of special application 6411

-SECREF-

CHAPTER REFERRED TO IN OTHER SECTIONS

This chapter is referred to in sections 1464, 7422, 7801, 7851 of

this title.

-FOOTNOTE-

(!1) Section numbers editorially supplied.

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26 USC Subchapter A - Procedure in General 01/06/03

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TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 65 - ABATEMENTS, CREDITS, AND REFUNDS

Subchapter A - Procedure in General

-HEAD-

SUBCHAPTER A - PROCEDURE IN GENERAL

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Sec.

6401. Amounts treated as overpayments.

6402. Authority to make credits or refunds.

6403. Overpayment of installment.

6404. Abatements.

6405. Reports of refunds and credits.

6406. Prohibition of administrative review of decisions.

6407. Date of allowance of refund or credit.

6408. State escheat laws not to apply.

AMENDMENTS

1987 - Pub. L. 100-203, title X, Sec. 10621(b), Dec. 22, 1987,

101 Stat. 1330-452, added item 6408.

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26 USC Sec. 6401 01/06/03

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TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 65 - ABATEMENTS, CREDITS, AND REFUNDS

Subchapter A - Procedure in General

-HEAD-

Sec. 6401. Amounts treated as overpayments

-STATUTE-

(a) Assessment and collection after limitation period.

The term "overpayment" includes that part of the amount of the

payment of any internal revenue tax which is assessed or collected

after the expiration of the period of limitation properly

applicable thereto.

(b) Excessive credits

(1) In general

If the amount allowable as credits under subpart C of part IV

of subchapter A of chapter 1 (relating to refundable credits)

exceeds the tax imposed by subtitle A (reduced by the credits

allowable under subparts A, B, D, and G of such part IV), the

amount of such excess shall be considered an overpayment.

(2) Special rule for credit under section 33

For purposes of paragraph (1), any credit allowed under section

33 (relating to withholding of tax on nonresident aliens and on

foreign corporations) for any taxable year shall be treated as a

credit allowable under subpart C of part IV of subchapter A of

chapter 1 only if an election under subsection (g) or (h) of

section 6013 is in effect for such taxable year. The preceding

sentence shall not apply to any credit so allowed by reason of

section 1446.

(c) Rule where no tax liability

An amount paid as tax shall not be considered not to constitute

an overpayment solely by reason of the fact that there was no tax

liability in respect of which such amount was paid.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 791; Pub. L. 89-44, title VIII,

Sec. 809(d)(6), June 21, 1965, 79 Stat. 168; Pub. L. 91-172, title

III, Sec. 331(c), Dec. 30, 1969, 83 Stat. 598; Pub. L. 91-258,

title II, Sec. 207(d)(1), May 21, 1970, 84 Stat. 248; Pub. L.

94-12, title II, Sec. 204(b)(1), Mar. 29, 1975, 89 Stat. 31; Pub.

L. 94-455, title VII, Sec. 701(f)(2), (3), Oct. 4, 1976, 90 Stat.

1580; Pub. L. 95-600, title VII, Sec. 701(u)(15)(D), Nov. 6, 1978,

92 Stat. 2919; Pub. L. 95-618, title III, Sec. 301(c)(2), Nov. 9,

1978, 92 Stat. 3199; Pub. L. 96-222, title I, Sec.

103(a)(2)(B)(iv), Apr. 1, 1980, 94 Stat. 209; Pub. L. 96-223, title

II, Sec. 223(b)(2), Apr. 2, 1980, 94 Stat. 266; Pub. L. 97-248,

title III, Secs. 307(a)(9), 308(a), Sept. 3, 1982, 96 Stat. 589,

591; Pub. L. 98-67, title I, Sec. 102(a), Aug. 5, 1983, 97 Stat.

369; Pub. L. 98-369, div. A, title IV, Sec. 474(r)(36), title VII,

Sec. 735(c)(16), July 18, 1984, 98 Stat. 846, 985; Pub. L. 99-514,

title XII, Sec. 1246(b), Oct. 22, 1986, 100 Stat. 2582; Pub. L.

100-647, title I, Sec. 1012(s)(1)(B), Nov. 10, 1988, 102 Stat.

3527; Pub. L. 105-206, title VI, Sec. 6022(a), July 22, 1998, 112

Stat. 824.)

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AMENDMENTS

1998 - Subsec. (b)(1). Pub. L. 105-206 substituted "D, and G" for

"and D".

1988 - Subsec. (b)(2). Pub. L. 100-647 amended last sentence

generally, substituting "credit so allowed by reason of section

1446" for "amount deducted and withheld under section 1446".

1986 - Subsec. (b)(2). Pub. L. 99-514 inserted last sentence.

1984 - Subsec. (b). Pub. L. 98-369, Sec. 474(r)(36), amended

subsec. (b) generally. Prior to amendment, subsec. (b) read as

follows: "If the amount allowable as credits under sections 31

(relating to tax withheld on wages) and 39 (relating to certain

uses of gasoline and special fuels), and 43 (relating to earned

income credit), exceeds the tax imposed by subtitle A (reduced by

the credits allowable under subpart A of part IV of subchapter A of

chapter 1, other than the credits allowable under sections 31, 39,

and 43), the amount of such excess shall be considered an

overpayment. For purposes of the preceding sentence, any credit

allowed under paragraph (1) of section 32 (relating to withholding

of tax on nonresident aliens and on foreign corporations) to a

nonresident alien individual for a taxable year with respect to

which an election under section 6013(g) or (h) is in effect shall

be treated as an amount allowable as a credit under section 31."

Pub. L. 98-369, Sec. 735(c)(16), substituted "and special fuels"

for ", special fuels, and lubricating oil".

1983 - Subsec. (b). Pub. L. 98-67 repealed amendments made by

Pub. L. 97-248. See 1982 Amendment note below.

1982 - Subsec. (b). Pub. L. 97-248 provided that, applicable to

payments of interest, dividends, and patronage dividends paid or

credited after June 30, 1983, subsec. (b) is amended by inserting

", interest, dividends, and patronage dividends" after "tax

withheld on wages". Section 102(a), (b) of Pub. L. 98-67, title I,

Aug. 5, 1983, 97 Stat. 369, repealed subtitle A (Secs. 301-308) of

title III of Pub. L. 97-247 as of the close of June 30, 1983, and

provided that the Internal Revenue Code of 1954 [now 1986] [this

title] shall be applied and administered (subject to certain

exceptions) as if such subtitle A (and the amendments made by such

subtitle A) had not been enacted.

1980 - Subsec. (d). Pub. L. 96-223 struck out subsec. (d) which

made a cross reference to section 46(a)(9)(C) for a rule allowing a

refund for excess investment credit attributable to solar or wind

energy property.

Pub. L. 96-222 substituted "46(a)(9)(C)" for "46(a)(10)(C)".

1978 - Subsec. (b). Pub. L. 95-600 inserted provisions relating

to credit to a nonresident alien individual.

Subsec. (d). Pub. L. 95-618 added subsec. (d).

1976 - Subsec. (b). Pub. L. 94-455 substituted "wages) and" and

"lubricating oil), and" for "wages)," and "lubricating oil),",

respectively; and pars. (2) and (3) made identical change: striking

out "and 667(b) (relating to taxes paid by certain trusts)" after

"(relating to earned income credit)".

1975 - Subsec. (b). Pub. L. 94-12 inserted "43 (relating to

earned income credit)," before "and 667(b)" and substituted ", 39,

and 43" for "and 39".

1970 - Subsec. (b). Pub. L. 91-258 inserted reference to credits

under section 39 relating to certain uses of special fuels.

1969 - Subsec. (b). Pub. L. 91-172 struck out "under sections 31

and 39" after "Excessive credits" in heading and inserted in text

reference to section 667(b) (relating to taxes paid by certain

trusts).

1965 - Subsec. (b). Pub. L. 89-44 substituted "Excessive credits

under sections 31 and 39" for "Excessive withholding" in heading

and expanded text to include credits under section 39.

EFFECTIVE DATE OF 1998 AMENDMENT

Pub. L. 105-206, title VI, Sec. 6022(b), July 22, 1998, 112 Stat.

824, provided that: "The amendment made by subsection (a) [amending

this section] shall take effect as if included in the amendments

made by section 701(b) of the Tax Reform Act of 1986 [Pub. L.

99-514]."

EFFECTIVE DATE OF 1988 AMENDMENT

Amendment by Pub. L. 100-647 applicable to taxable years

beginning after Dec. 31, 1987, see section 1012(s)(1)(D) of Pub. L.

100-647, set out as a note under section 1446 of this title.

EFFECTIVE DATE OF 1986 AMENDMENT

Amendment by Pub. L. 99-514 applicable to distributions after

Dec. 31, 1987, or, if earlier, the effective date of the initial

regulations issued under section 1446 of this title, which date

shall not be earlier than Jan. 1, 1987, see section 1246(d) of Pub.

L. 99-514, set out as an Effective Date note under section 1446 of

this title.

EFFECTIVE DATE OF 1984 AMENDMENT

Amendment by section 474(r)(36) of Pub. L. 98-369 applicable to

taxable years beginning after Dec. 31, 1983, and to carrybacks from

such years, see section 475(a) of Pub. L. 98-369, set out as a note

under section 21 of this title.

Amendment by section 735(c)(16) of Pub. L. 98-369 effective,

except as otherwise provided, as if included in the provisions of

the Highway Revenue Act of 1982, title V of Pub. L. 97-424, to

which such amendment relates, see section 736 of Pub. L. 98-369,

set out as a note under section 4051 of this title.

EFFECTIVE DATE OF 1980 AMENDMENTS

Amendment by Pub. L. 96-223 applicable to qualified investment

for taxable years beginning after Dec. 31, 1979, see section

223(b)(3) of Pub. L. 96-223, set out as a note under section 46 of

this title.

Amendment by Pub. L. 96-222 effective, except as otherwise

provided, as if it had been included in the provisions of the

Revenue Act of 1978, Pub. L. 95-600, to which such amendment

relates, see section 201 of Pub. L. 96-222, set out as a note under

section 32 of this title.

EFFECTIVE DATE OF 1978 AMENDMENT

Amendment by Pub. L. 95-600, to the extent amendment relates to

chapter 1 or 5 of this title, applicable to taxable years ending on

or after Dec. 31, 1975, and, to the extent amendment relates to

wage withholding under chapter 24 of this title, applicable to

remuneration paid on or after the first day of the first month

which begins more than 90 days after Nov. 6, 1978, see section

701(u)(15)(E) of Pub. L. 95-600, set out as a note under section

6013 of this title.

EFFECTIVE DATE OF 1976 AMENDMENT

Amendment by Pub. L. 94-455 applicable to distributions made in

taxable years beginning after Dec. 31, 1975, see section 701(h) of

Pub. L. 94-455, set out as a note under section 667 of this title.

EFFECTIVE DATE OF 1975 AMENDMENT

Amendment by Pub. L. 94-12 applicable to taxable years beginning

after Dec. 31, 1974, see section 209(b) of Pub. L. 94-12, as

amended, set out as a note under section 32 of this title.

EFFECTIVE DATE OF 1970 AMENDMENT

Amendment by Pub. L. 91-258 effective July 1, 1970, see section

211(a) of Pub. L. 91-258, set out as a note under section 4041 of

this title.

EFFECTIVE DATE OF 1969 AMENDMENT

Amendment by Pub. L. 91-172 applicable to taxable years beginning

before Jan. 1, 1970, see section 331(d) of Pub. L. 91-172, set out

as a note under section 665 of this title.

EFFECTIVE DATE OF 1965 AMENDMENT

Amendment by Pub. L. 89-44 applicable to taxable years beginning

on or after July 1, 1965, see section 809(f) of Pub. L. 89-44, set

out as a note under section 6420 of this title.

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SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 36, 6514 of this title.

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26 USC Sec. 6402 01/06/03

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TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 65 - ABATEMENTS, CREDITS, AND REFUNDS

Subchapter A - Procedure in General

-HEAD-

Sec. 6402. Authority to make credits or refunds

-STATUTE-

(a) General rule

In the case of any overpayment, the Secretary, within the

applicable period of limitations, may credit the amount of such

overpayment, including any interest allowed thereon, against any

liability in respect of an internal revenue tax on the part of the

person who made the overpayment and shall, subject to subsections

(c), (d), and (e) refund any balance to such person.

(b) Credits against estimated tax

The Secretary is authorized to prescribe regulations providing

for the crediting against the estimated income tax for any taxable

year of the amount determined by the taxpayer or the Secretary to

be an overpayment of the income tax for a preceding taxable year.

(c) Offset of past-due support against overpayments

The amount of any overpayment to be refunded to the person making

the overpayment shall be reduced by the amount of any past-due

support (as defined in section 464(c) of the Social Security Act)

owed by that person of which the Secretary has been notified by a

State in accordance with section 464 of the Social Security Act.

The Secretary shall remit the amount by which the overpayment is so

reduced to the State collecting such support and notify the person

making the overpayment that so much of the overpayment as was

necessary to satisfy his obligation for past-due support has been

paid to the State. A reduction under this subsection shall be

applied first to satisfy any past-due support which has been

assigned to the State under section 402(a)(26) (!1) or 471(a)(17)

of the Social Security Act, and shall be applied to satisfy any

other past-due support after any other reductions allowed by law

(but before a credit against future liability for an internal

revenue tax) have been made. This subsection shall be applied to an

overpayment prior to its being credited to a person's future

liability for an internal revenue tax.

(d) Collection of debts owed to Federal agencies

(1) In general

Upon receiving notice from any Federal agency that a named

person owes a past-due legally enforceable debt (other than

past-due support subject to the provisions of subsection (c)) to

such agency, the Secretary shall -

(A) reduce the amount of any overpayment payable to such

person by the amount of such debt;

(B) pay the amount by which such overpayment is reduced under

subparagraph (A) to such agency; and

(C) notify the person making such overpayment that such

overpayment has been reduced by an amount necessary to satisfy

such debt.

(2) Priorities for offset

Any overpayment by a person shall be reduced pursuant to this

subsection after such overpayment is reduced pursuant to

subsection (c) with respect to past-due support collected

pursuant to an assignment under section 402(a)(26) (!1) of the

Social Security Act and before such overpayment is reduced

pursuant to subsection (e) and before such overpayment is

credited to the future liability for tax of such person pursuant

to subsection (b). If the Secretary receives notice from a

Federal agency or agencies of more than one debt subject to

paragraph (1) that is owed by a person to such agency or

agencies, any overpayment by such person shall be applied against

such debts in the order in which such debts accrued.

(3) Treatment of OASDI overpayments

(A) Requirements

Paragraph (1) shall apply with respect to an OASDI

overpayment only if the requirements of paragraphs (1) and (2)

of section 3720A(f) of title 31, United States Code, are met

with respect to such overpayment.

(B) Notice; protection of other persons filing joint return

(i) Notice

In the case of a debt consisting of an OASDI overpayment,

if the Secretary determines upon receipt of the notice

referred to in paragraph (1) that the refund from which the

reduction described in paragraph (1)(A) would be made is

based upon a joint return, the Secretary shall -

(I) notify each taxpayer filing such joint return that

the reduction is being made from a refund based upon such

return, and

(II) include in such notification a description of the

procedures to be followed, in the case of a joint return,

to protect the share of the refund which may be payable to

another person.

(ii) Adjustments based on protections given to other

taxpayers on joint return

If the other person filing a joint return with the person

owing the OASDI overpayment takes appropriate action to

secure his or her proper share of the refund subject to

reduction under this subsection, the Secretary shall pay such

share to such other person. The Secretary shall deduct the

amount of such payment from amounts which are derived from

subsequent reductions in refunds under this subsection and

are payable to a trust fund referred to in subparagraph (C).

(C) Deposit of amount of reduction into appropriate trust fund

In lieu of payment, pursuant to paragraph (1)(B), of the

amount of any reduction under this subsection to the

Commissioner of Social Security, the Secretary shall deposit

such amount in the Federal Old-Age and Survivors Insurance

Trust Fund or the Federal Disability Insurance Trust Fund,

whichever is certified to the Secretary as appropriate by the

Commissioner of Social Security.

(D) OASDI overpayment

For purposes of this paragraph, the term "OASDI overpayment"

means any overpayment of benefits made to an individual under

title II of the Social Security Act.

(e) Collection of past-due, legally enforceable State income tax

obligations

(1) In general

Upon receiving notice from any State that a named person owes a

past-due, legally enforceable State income tax obligation to such

State, the Secretary shall, under such conditions as may be

prescribed by the Secretary -

(A) reduce the amount of any overpayment payable to such

person by the amount of such State income tax obligation;

(B) pay the amount by which such overpayment is reduced under

subparagraph (A) to such State and notify such State of such

person's name, taxpayer identification number, address, and the

amount collected; and

(C) notify the person making such overpayment that the

overpayment has been reduced by an amount necessary to satisfy

a past-due, legally enforceable State income tax obligation.

If an offset is made pursuant to a joint return, the notice under

subparagraph (B) shall include the names, taxpayer identification

numbers, and addresses of each person filing such return.

(2) Offset permitted only against residents of State seeking

offset

Paragraph (1) shall apply to an overpayment by any person for a

taxable year only if the address shown on the Federal return for

such taxable year of the overpayment is an address within the

State seeking the offset.

(3) Priorities for offset

Any overpayment by a person shall be reduced pursuant to this

subsection -

(A) after such overpayment is reduced pursuant to -

(i) subsection (a) with respect to any liability for any

internal revenue tax on the part of the person who made the

overpayment;

(ii) subsection (c) with respect to past-due support; and

(iii) subsection (d) with respect to any past-due, legally

enforceable debt owed to a Federal agency; and

(B) before such overpayment is credited to the future

liability for any Federal internal revenue tax of such person

pursuant to subsection (b).

If the Secretary receives notice from one or more agencies of the

State of more than one debt subject to paragraph (1) that is owed

by such person to such an agency, any overpayment by such person

shall be applied against such debts in the order in which such

debts accrued.

(4) Notice; consideration of evidence

No State may take action under this subsection until such State

-

(A) notifies by certified mail with return receipt the person

owing the past-due State income tax liability that the State

proposes to take action pursuant to this section;

(B) gives such person at least 60 days to present evidence

that all or part of such liability is not past-due or not

legally enforceable;

(C) considers any evidence presented by such person and

determines that an amount of such debt is past-due and legally

enforceable; and

(D) satisfies such other conditions as the Secretary may

prescribe to ensure that the determination made under

subparagraph (C) is valid and that the State has made

reasonable efforts to obtain payment of such State income tax

obligation.

(5) Past-due, legally enforceable State income tax obligation

For purposes of this subsection, the term "past-due, legally

enforceable State income tax obligation" means a debt -

(A)(i) which resulted from -

(I) a judgment rendered by a court of competent

jurisdiction which has determined an amount of State income

tax to be due; or

(II) a determination after an administrative hearing which

has determined an amount of State income tax to be due; and

(ii) which is no longer subject to judicial review; or

(B) which resulted from a State income tax which has been

assessed but not collected, the time for redetermination of

which has expired, and which has not been delinquent for more

than 10 years.

For purposes of this paragraph, the term "State income tax"

includes any local income tax administered by the chief tax

administration agency of the State.

(6) Regulations

The Secretary shall issue regulations prescribing the time and

manner in which States must submit notices of past-due, legally

enforceable State income tax obligations and the necessary

information that must be contained in or accompany such notices.

The regulations shall specify the types of State income taxes and

the minimum amount of debt to which the reduction procedure

established by paragraph (1) may be applied. The regulations may

require States to pay a fee to reimburse the Secretary for the

cost of applying such procedure. Any fee paid to the Secretary

pursuant to the preceding sentence shall be used to reimburse

appropriations which bore all or part of the cost of applying

such procedure.

(7) Erroneous payment to State

Any State receiving notice from the Secretary that an erroneous

payment has been made to such State under paragraph (1) shall pay

promptly to the Secretary, in accordance with such regulations as

the Secretary may prescribe, an amount equal to the amount of

such erroneous payment (without regard to whether any other

amounts payable to such State under such paragraph have been paid

to such State).

(f) Review of reductions

No court of the United States shall have jurisdiction to hear any

action, whether legal or equitable, brought to restrain or review a

reduction authorized by subsection (c), (d), or (e). No such

reduction shall be subject to review by the Secretary in an

administrative proceeding. No action brought against the United

States to recover the amount of any such reduction shall be

considered to be a suit for refund of tax. This subsection does not

preclude any legal, equitable, or administrative action against the

Federal agency or State to which the amount of such reduction was

paid or any such action against the Commissioner of Social Security

which is otherwise available with respect to recoveries of

overpayments of benefits under section 204 of the Social Security

Act.

(g) Federal agency

For purposes of this section, the term "Federal agency" means a

department, agency, or instrumentality of the United States, and

includes a Government corporation (as such term is defined in

section 103 of title 5, United States Code).

(h) Treatment of payments to States

The Secretary may provide that, for purposes of determining

interest, the payment of any amount withheld under subsection (c)

or (e) to a State shall be treated as a payment to the person or

persons making the overpayment.

(i) Cross reference

For procedures relating to agency notification of the Secretary,

see section 3721 of title 31, United States Code.

(j) Refunds to certain fiduciaries of insolvent members of

affiliated groups

Notwithstanding any other provision of law, in the case of an

insolvent corporation which is a member of an affiliated group of

corporations filing a consolidated return for any taxable year and

which is subject to a statutory or court-appointed fiduciary, the

Secretary may by regulation provide that any refund for such

taxable year may be paid on behalf of such insolvent corporation to

such fiduciary to the extent that the Secretary determines that the

refund is attributable to losses or credits of such insolvent

corporation.

(k) Explanation of reason for refund disallowance

In the case of a disallowance of a claim for refund, the

Secretary shall provide the taxpayer with an explanation for such

disallowance.

-SOURCE-

(Aug. 6, 1954, ch. 736, 68A Stat. 791; Pub. L. 94-455, title XIX,

Sec. 1906(b)(13) (A), (K), Oct. 4, 1976, 90 Stat. 1834, 1835; Pub.

L. 97-35, title XXIII, Sec. 2331(c), Aug. 13, 1981, 95 Stat. 861;

Pub. L. 98-369, div. B, title VI, Sec. 2653(b)(1), (2), July 18,

1984, 98 Stat. 1154, 1155; Pub. L. 98-378, Sec. 21(e), Aug. 16,

1984, 98 Stat. 1325; Pub. L. 100-647, title VI, Sec. 6276, Nov. 10,

1988, 102 Stat. 3753; Pub. L. 101-508, title V, Sec. 5129(c), Nov.

5, 1990, 104 Stat. 1388-288; Pub. L. 103-296, title I, Sec.

108(h)(7), Aug. 15, 1994, 108 Stat. 1487; Pub. L. 104-134, title

III, Sec. 31001(u)(2), Apr. 26, 1996, 110 Stat. 1321-375; Pub. L.

104-193, title I, Sec. 110(l)(7), Aug. 22, 1996, 110 Stat. 2173;

Pub. L. 105-33, title V, Sec. 5514(a)(1), Aug. 5, 1997, 111 Stat.

620; Pub. L. 105-206, title III, Secs. 3505(a), 3711(a), (c), July

22, 1998, 112 Stat. 771, 779, 781.)

-REFTEXT-

REFERENCES IN TEXT

The Social Security Act, referred to in subsecs. (c), (d)(2),

(3)(D), and (f), is act Aug. 14, 1935, ch. 531, 49 Stat. 620, as

amended. Title II of the Act is classified generally to subchapter

II (Sec. 401 et seq.) of chapter 7 of Title 42, The Public Health

and Welfare. Sections 204, 464, and 471(a)(17) of the Act are

classified to sections 404, 664, and 671(a)(17) of Title 42.

Section 402 of the Act, which was classified to section 602 of

Title 42, was repealed and a new section 402 enacted by Pub. L.

104-193, title I, Sec. 103(a)(1), Aug. 22, 1996, 110 Stat. 2112. As

so enacted section 402 does not contain a subsec. (a)(26). For

complete classification of this Act to the Code, see section 1305

of Title 42 and Tables.

-MISC1-

AMENDMENTS

1998 - Subsec. (a). Pub. L. 105-206, Sec. 3711(c)(1), substituted

"(c), (d), and (e)" for "(c) and (d)".

Subsec. (d)(2). Pub. L. 105-206, Sec. 3711(c)(2), substituted

"and before such overpayment is reduced pursuant to subsection (e)

and before such overpayment" for "and before such overpayment".

Subsec. (e). Pub. L. 105-206, Sec. 3711(a), added subsec. (e).

Former subsec. (e) redesignated (f).

Subsec. (f). Pub. L. 105-206, Sec. 3711(a), (c)(3), redesignated

subsec. (e) as (f) and substituted "(c), (d), or (e)" for "(c) or

(d)" and "Federal agency or State" for "Federal agency". Former

subsec. (f) redesignated (g).

Subsec. (g). Pub. L. 105-206, Sec. 3711(a), redesignated subsec.

(f) as (g). Former subsec. (g) redesignated (h).

Subsec. (h). Pub. L. 105-206, Sec. 3711(a), (c)(4), redesignated

subsec. (g) as (h) and substituted "subsection (c) or (e)" for

"subsection (c)". Former subsec. (h) redesignated (i).

Subsec. (i). Pub. L. 105-206, Sec. 3711(a), redesignated subsec.

(h) as (i). Former subsec. (i) redesignated (j).

Subsec. (j). Pub. L. 105-206, Sec. 3711(a), redesignated subsec.

(i) as (j). Former subsec. (j) redesignated (k).

Pub. L. 105-206, Sec. 3505(a), added subsec. (j).

Subsec. (k). Pub. L. 105-206, Sec. 3711(a), redesignated subsec.

(j) as (k).

1997 - Subsecs. (a), (e) to (j). Pub. L. 105-33 repealed Pub. L.

104-193, Sec. 110(l)(7). See 1996 Amendment notes below.

1996 - Subsec. (a). Pub. L. 104-193, Sec. 110(l)(7)(A), which

directed substitution of "(c), (d), and (e)" for "(c) and (d)", was

repealed by Pub. L. 105-33.

Subsec. (e). Pub. L. 104-193, Sec. 110(l)(7)(C), which directed

amendment by adding subsec. (e), reading as follows: "Collection of

Overpayments Under Title IV-A of the Social Security Act. - The

amount of any overpayment to be refunded to the person making the

overpayment shall be reduced (after reductions pursuant to

subsections (c) and (d), but before a credit against future

liability for an internal revenue tax) in accordance with section

405(e) of the Social Security Act (concerning recovery of

overpayments to individuals under State plans approved under part A

of title IV of such Act).", was repealed by Pub. L. 105-33.

Subsec. (f). Pub. L. 104-193, Sec. 110(l)(7)(B), which directed

amendment by redesignating subsec. (e) as (f), was repealed by Pub.

L. 105-33.

Pub. L. 104-134 amended subsec. (f) generally. Prior to

amendment, subsec. (f) read as follows: "For purposes of this

section, the term 'Federal agency' means a department, agency, or

instrumentality of the United States (other than an agency subject

to section 9 of the Act of May 18, 1933 (48 Stat. 63, chapter 32;

16 U.S.C. 831h)), and includes a Government corporation (as such

term is defined in section 103 of title 5, United States Code)."

Subsecs. (g) to (j). Pub. L. 104-193, Sec. 110(l)(7)(B), which

directed amendment by redesignating subsecs. (f) to (i) as (g) to

(j), respectively, was repealed by Pub. L. 105-33.

1994 - Subsecs. (d)(3)(C), (e). Pub. L. 103-296 substituted

"Commissioner of Social Security" for "Secretary of Health and

Human Services" wherever appearing.

1990 - Subsec. (d)(1). Pub. L. 101-508, Sec. 5129(c)(1)(A),

struck out "any OASDI overpayment and" after "(other than".

Subsec. (d)(3). Pub. L. 101-508, Sec. 5129(c)(1)(B), added par.

(3) and struck out former par. (3) which read as follows: "For

purposes of this subsection the term 'OASDI overpayment' means any

overpayment of benefits made to an individual under title II of the

Social Security Act."

Subsec. (e). Pub. L. 101-508, Sec. 5129(c)(2), inserted before

period at end "or any such action against the Secretary of Health

and Human Services which is otherwise available with respect to

recoveries of overpayments of benefits under section 204 of the

Social Security Act".

1988 - Subsec. (i). Pub. L. 100-647 added subsec. (i).

1984 - Subsec. (a). Pub. L. 98-369, Sec. 2653(b)(2), substituted

"subsections (c) and (d)" for "subsection (c)".

Subsec. (c). Pub. L. 98-378, Sec. 21(e)(1), substituted

"collecting such support" for "to which such support has been

assigned" and inserted provision that a reduction under this

subsection shall be applied first to satisfy any past-due support

which has been assigned to the State under section 402(a)(26) or

471(a)(17) of the Social Security Act, and shall be applied to

satisfy any other past-due support after any other reductions

allowed by law (but before a credit against future liability for an

internal revenue tax) have been made.

Subsecs. (d) to (f). Pub. L. 98-369, Sec. 2653(b)(1), added

subsecs. (d) to (f).

Subsec. (g). Pub. L. 98-378, Sec. 21(e)(2), added subsec. (g).

Former subsec. (g) redesignated (h).

Pub. L. 98-369, Sec. 2653(b)(1), added subsec. (g).

Subsec. (h). Pub. L. 98-378, Sec. 21(e)(2), redesignated former

subsec. (g) as (h).

1981 - Subsec. (a). Pub. L. 97-35, Sec. 2331(c)(1), inserted

reference to subsec. (c) of this section.

Subsec. (c). Pub. L. 97-35, Sec. 2331(c)(2), added subsec. (c).

1976 - Pub. L. 94-455 struck out "or his delegate" after

"Secretary" wherever appearing.

EFFECTIVE DATE OF 1998 AMENDMENT

Pub. L. 105-206, title III, Sec. 3505(b), July 22, 1998, 112

Stat. 771, provided that: "The amendment made by this section

[amending this section] shall apply to disallowances after the

180th day after the date of the enactment of this Act [July 22,

1998]."

Amendment by section 3711 of Pub. L. 105-206 applicable to

refunds payable under this section after Dec. 31, 1999, see section

3711(d) of Pub. L. 105-206, set out as a note under section 6103 of

this title.

EFFECTIVE DATE OF 1997 AMENDMENT

Amendment by Pub. L. 105-33 effective as if included in section

110 of the Personal Responsibility and Work Opportunity

Reconciliation Act of 1996, Pub. L. 104-193, at the time such

section 110 became law, see section 5518(c) of Pub. L. 105-33, set

out as a note under section 51 of this title.

EFFECTIVE DATE OF 1996 AMENDMENT

Amendment by Pub. L. 104-193 effective July 1, 1997, with

transition rules relating to State options to accelerate such date,

rules relating to claims, actions, and proceedings commenced before

such date, rules relating to closing out of accounts for terminated

or substantially modified programs and continuance in office of

Assistant Secretary for Family Support, and provisions relating to

termination of entitlement under AFDC program, see section 116 of

Pub. L. 104-193, as amended, set out as an Effective Date note

under section 601 of Title 42, The Public Health and Welfare.

EFFECTIVE DATE OF 1994 AMENDMENT

Amendment by Pub. L. 103-296 effective Mar. 31, 1995, see section

110(a) of Pub. L. 103-296, set out as a note under section 401 of

Title 42, The Public Health and Welfare.

EFFECTIVE DATE OF 1990 AMENDMENT

Section 5129(d) of Pub. L. 101-508 provided that: "The amendments

made by this section [amending this section, section 3720A of Title

31, Money and Finance, and section 404 of Title 42, The Public

Health and Welfare] -

"(1) shall take effect January 1, 1991, and

"(2) shall not apply to refunds to which the amendments made by

section 2653 of the Deficit Reduction Act of 1984 (98 Stat. 1153)

[enacting section 3720A of Title 31 and amending this section and

sections 6103 and 7213 of this title] do not apply."

EFFECTIVE DATE OF 1984 AMENDMENTS

Amendment by Pub. L. 98-378 applicable with respect to refunds

payable under this section after Dec. 31, 1985, see section 21(g)

of Pub. L. 98-378, set out as a note under section 6103 of this

title.

Section 2653(c) of Pub. L. 98-369, as amended by Pub. L. 99-514,

Sec. 2, Oct. 22, 1986, 100 Stat. 2095; Pub. L. 100-203, title IX,

Sec. 9402(a), Dec. 22, 1987, 101 Stat. 1330-376; Pub. L. 100-485,

title VII, Sec. 701(a), Oct. 13, 1988, 102 Stat. 2425; Pub. L.

102-164, title IV, Sec. 401(a), Nov. 15, 1991, 105 Stat. 1061,

provided that: "The amendments made by this section [enacting

section 3720A of Title 31, Money and Finance, and amending this

section and sections 6103 and 7213 of this title] shall apply with

respect to refunds payable under section 6402 of the Internal

Revenue Code of 1986 [formerly I.R.C. 1954] after December 31,

1985."

[Pub. L. 102-164, title IV, Sec. 401(b), Nov. 15, 1991, 105 Stat.

1061, provided that: "The amendment made by this section [amending

section 2653(c) of Pub. L. 98-369, set out above] shall take effect

on October 1, 1991."]

EFFECTIVE DATE OF 1981 AMENDMENT

Amendment by Pub. L. 97-35 effective, except as otherwise

specifically provided, on Oct. 1, 1981, see section 2336 of Pub. L.

97-35, set out as a note under section 651 of Title 42, The Public

Health and Welfare.

ORGAN AND TISSUE DONATION INFORMATION INCLUDED WITH INCOME TAX

REFUND PAYMENTS

Pub. L. 104-191, title III, Sec. 371, Aug. 21, 1996, 110 Stat.

2072, provided that:

"(a) In General. - The Secretary of the Treasury shall, to the

extent practicable, include with the mailing of any payment of a

refund of individual income tax made during the period beginning on

February 1, 1997, and ending on June 30, 1997, a copy of the

document described in subsection (b).

"(b) Text of Document. - The Secretary of the Treasury shall,

after consultation with the Secretary of Health and Human Services

and organizations promoting organ and tissue (including eye)

donation, prepare a document suitable for inclusion with individual

income tax refund payments which -

"(1) encourages organ and tissue donation;

"(2) includes a detachable organ and tissue donor card; and

"(3) urges recipients to -

"(A) sign the organ and tissue donor card;

"(B) discuss organ and tissue donation with family members

and tell family members about the recipient's desire to be an

organ and tissue donor if the occasion arises; and

"(C) encourage family members to request or authorize organ

and tissue donation if the occasion arises."

CLARIFICATION OF CONGRESSIONAL INTENT AS TO SCOPE OF AMENDMENTS BY

SECTION 2653 OF PUB. L. 98-369

Pub. L. 100-203, title IX, Sec. 9402(b), Dec. 22, 1987, 101 Stat.

1330-376, provided that:

"(1) Nothing in the amendments made by section 2653 of the

Deficit Reduction Act of 1984 [enacting section 3720A of Title 31,

Money and Finance, and amending this section and sections 6103 and

7213 of this title] shall be construed as exempting debts of

corporations or any other category of persons from the application

of such amendments.

"(2) It is the intent of the Congress that, to the extent

practicable, the amendments made by section 2653 of the Deficit

Reduction Act of 1984 shall extend to all Federal agencies (as

defined in the amendments made by such section).

"(3) The Secretary of the Treasury shall issue regulations to

carry out the purposes of this subsection."

STUDY BY GENERAL ACCOUNTING OFFICE OF OPERATION AND EFFECTIVENESS

OF AMENDMENTS BY SECTION 2653 OF PUB. L. 98-369

Pub. L. 100-203, title IX, Sec. 9402(c), Dec. 22, 1987, 101 Stat.

1330-376, provided that: "The Comptroller General of the United

States, in consultation with the Secretary of the Treasury or his

delegate, shall conduct a study of the operation and effectiveness

of the amendments made by section 2653 of the Deficit Reduction Act

of 1984 [enacting section 3720A of Title 31, Money and Finance, and

amending this section and sections 6103 and 7213 of this title].

The study shall compile and evaluate information on the effect of

those amendments on voluntary compliance with the income tax laws.

Not later than April 1, 1989, the Comptroller General shall submit

to the Committee on Ways and Means of the House of Representatives

and the Committee on Finance of the Senate a report of the study

conducted under this subsection, together with such recommendations

as he may deem advisable."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 6103, 6331, 6403, 6512,

6513, 6861, 9502 of this title; title 42 section 664.

-FOOTNOTE-

(!1) See References in Text note below.

-End-

-CITE-

26 USC Sec. 6403 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 65 - ABATEMENTS, CREDITS, AND REFUNDS

Subchapter A - Procedure in General

-HEAD-

Sec. 6403. Overpayment of installment

-STATUTE-

In the case of a tax payable in installments, if the taxpayer has

paid as an installment of the tax more than the amount determined

to be the correct amount of such installment, the overpayment shall

be credited against the unpaid installments, if any. If the amount

already paid, whether or not on the basis of installments, exceeds

the amount determined to be the correct amount of the tax, the

overpayment shall be credited or refunded as provided in section

6402.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 791.)

-End-

-CITE-

26 USC Sec. 6404 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 65 - ABATEMENTS, CREDITS, AND REFUNDS

Subchapter A - Procedure in General

-HEAD-

Sec. 6404. Abatements

-STATUTE-

(a) General rule

The Secretary is authorized to abate the unpaid portion of the

assessment of any tax or any liability in respect thereof, which -

(1) is excessive in amount, or

(2) is assessed after the expiration of the period of

limitation properly applicable thereto, or

(3) is erroneously or illegally assessed.

(b) No claim for abatement of income, estate, and gift taxes

No claim for abatement shall be filed by a taxpayer in respect of

any assessment of any tax imposed under subtitle A or B.

(c) Small tax balances

The Secretary is authorized to abate the unpaid portion of the

assessment of any tax, or any liability in respect thereof, if the

Secretary determines under uniform rules prescribed by the

Secretary that the administration and collection costs involved

would not warrant collection of the amount due.

(d) Assessments attributable to certain mathematical errors by

Internal Revenue Service

In the case of an assessment of any tax imposed by chapter 1

attributable in whole or in part to a mathematical error described

in section 6213(g)(2)(A), if the return was prepared by an officer

or employee of the Internal Revenue Service acting in his official

capacity to provide assistance to taxpayers in the preparation of

income tax returns, the Secretary is authorized to abate the

assessment of all or any part of any interest on such deficiency

for any period ending on or before the 30th day following the date

of notice and demand by the Secretary for payment of the

deficiency.

(e) Abatement of interest attributable to unreasonable errors and

delays by Internal Revenue Service

(1) In general

In the case of any assessment of interest on -

(A) any deficiency attributable in whole or in part to any

unreasonable error or delay by an officer or employee of the

Internal Revenue Service (acting in his official capacity) in

performing a ministerial or managerial act, or

(B) any payment of any tax described in section 6212(a) to

the extent that any unreasonable error or delay in such payment

is attributable to such an officer or employee being erroneous

or dilatory in performing a ministerial or managerial act,

the Secretary may abate the assessment of all or any part of such

interest for any period. For purposes of the preceding sentence,

an error or delay shall be taken into account only if no

significant aspect of such error or delay can be attributed to

the taxpayer involved, and after the Internal Revenue Service has

contacted the taxpayer in writing with respect to such deficiency

or payment.

(2) Interest abated with respect to erroneous refund check

The Secretary shall abate the assessment of all interest on any

erroneous refund under section 6602 until the date demand for

repayment is made, unless -

(A) the taxpayer (or a related party) has in any way caused

such erroneous refund, or

(B) such erroneous refund exceeds $50,000.

(f) Abatement of any penalty or addition to tax attributable to

erroneous written advice by the Internal Revenue Service

(1) In general

The Secretary shall abate any portion of any penalty or

addition to tax attributable to erroneous advice furnished to the

taxpayer in writing by an officer or employee of the Internal

Revenue Service, acting in such officer's or employee's official

capacity.

(2) Limitations

Paragraph (1) shall apply only if -

(A) the written advice was reasonably relied upon by the

taxpayer and was in response to a specific written request of

the taxpayer, and

(B) the portion of the penalty or addition to tax did not

result from a failure by the taxpayer to provide adequate or

accurate information.

(3) Initial regulations

Within 180 days after the date of the enactment of this

subsection, the Secretary shall prescribe such initial

regulations as may be necessary to carry out this subsection.

(g) Suspension of interest and certain penalties where Secretary

fails to contact taxpayer

(1) Suspension

(A) In general

In the case of an individual who files a return of tax

imposed by subtitle A for a taxable year on or before the due

date for the return (including extensions), if the Secretary

does not provide a notice to the taxpayer specifically stating

the taxpayer's liability and the basis for the liability before

the close of the 1-year period (18-month period in the case of

taxable years beginning before January 1, 2004) beginning on

the later of -

(i) the date on which the return is filed; or

(ii) the due date of the return without regard to

extensions,

the Secretary shall suspend the imposition of any interest,

penalty, addition to tax, or additional amount with respect to

any failure relating to the return which is computed by

reference to the period of time the failure continues to exist

and which is properly allocable to the suspension period.

(B) Separate application

This paragraph shall be applied separately with respect to

each item or adjustment.

(2) Exceptions

Paragraph (1) shall not apply to -

(A) any penalty imposed by section 6651;

(B) any interest, penalty, addition to tax, or additional

amount in a case involving fraud;

(C) any interest, penalty, addition to tax, or additional

amount with respect to any tax liability shown on the return;

or

(D) any criminal penalty.

(3) Suspension period

For purposes of this subsection, the term "suspension period"

means the period -

(A) beginning on the day after the close of the 1-year period

(18-month period in the case of taxable years beginning before

January 1, 2004) under paragraph (1); and

(B) ending on the date which is 21 days after the date on

which notice described in paragraph (1)(A) is provided by the

Secretary.

(h) Review of denial of request for abatement of interest

(1) In general

The Tax Court shall have jurisdiction over any action brought

by a taxpayer who meets the requirements referred to in section

7430(c)(4)(A)(ii) to determine whether the Secretary's failure to

abate interest under this section was an abuse of discretion, and

may order an abatement, if such action is brought within 180 days

after the date of the mailing of the Secretary's final

determination not to abate such interest.

(2) Special rules

(A) Date of mailing

Rules similar to the rules of section 6213 shall apply for

purposes of determining the date of the mailing referred to in

paragraph (1).

(B) Relief

Rules similar to the rules of section 6512(b) shall apply for

purposes of this subsection.

(C) Review

An order of the Tax Court under this subsection shall be

reviewable in the same manner as a decision of the Tax Court,

but only with respect to the matters determined in such order.

(i) Cross reference

For authority to suspend running of interest, etc. by reason

of Presidentially declared disaster or terroristic or military

action, see section 7508A.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 792; Pub. L. 94-455, title XII,

Sec. 1212(a), title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90

Stat. 1712, 1834; Pub. L. 96-589, Sec. 6(b)(2), Dec. 24, 1980, 94

Stat. 3407; Pub. L. 99-514, title XV, Sec. 1563(a), Oct. 22, 1986,

100 Stat. 2762; Pub. L. 100-647, title I, Sec. 1015(n), title VI,

Sec. 6229(a), Nov. 10, 1988, 102 Stat. 3572, 3733; Pub. L. 104-168,

title III, Secs. 301(a), (b), 302(a), title VII, Sec. 701(c)(3),

July 30, 1996, 110 Stat. 1457, 1464; Pub. L. 105-206, title III,

Secs. 3305(a), 3309(a), July 22, 1998, 112 Stat. 743, 745; Pub. L.

105-277, div. J, title IV, Sec. 4003(e)(2), Oct. 21, 1998, 112

Stat. 2681-909; Pub. L. 107-134, title I, Sec. 112(d)(1), Jan. 23,

2002, 115 Stat. 2434.)

-REFTEXT-

REFERENCES IN TEXT

The date of the enactment of this subsection, referred to in

subsec. (f)(3), is the date of enactment of Pub. L. 100-647, which

was approved Nov. 10, 1988.

-MISC1-

AMENDMENTS

2002 - Subsecs. (h), (i). Pub. L. 107-134 added subsec. (i),

redesignated former subsec. (i) as (h), and struck out former

subsec. (h), which had authorized abatement of interest on

underpayments by taxpayers in Presidentially declared disaster

areas and defined the term "Presidentially declared disaster area"

for purposes of this provision.

1998 - Subsec. (g). Pub. L. 105-206, Sec. 3305(a), added subsec.

(g). Former subsec. (g) redesignated (h).

Subsec. (h). Pub. L. 105-206, Sec. 3309(a), added subsec. (h).

Former subsec. (h) redesignated (i).

Pub. L. 105-206, Sec. 3305(a), redesignated subsec. (g) as (h).

Subsec. (h)(2). Pub. L. 105-277 inserted "Robert T. Stafford"

before "Disaster".

Subsec. (i). Pub. L. 105-206, Sec. 3309(a), redesignated subsec.

(h) as (i).

1996 - Subsec. (e). Pub. L. 104-168, Sec. 301(b), substituted

"Abatement of interest attributable to unreasonable errors" for

"Assessments of interest attributable to errors" in heading.

Subsec. (e)(1)(A), (B). Pub. L. 104-168, Sec. 301(a), inserted

"unreasonable" before "error" and substituted "in performing a

ministerial or managerial act" for "in performing a ministerial

act".

Subsec. (g). Pub. L. 104-168, Sec. 302(a), added subsec. (g).

Subsec. (g)(1). Pub. L. 104-168, Sec. 701(c)(3), substituted

"section 7430(c)(4)(A)(ii)" for "section 7430(c)(4)(A)(iii)".

1988 - Subsec. (e)(1)(B). Pub. L. 100-647, Sec. 1015(n), inserted

"error or" before "delay" and "erroneous or" before "dilatory".

Subsec. (f). Pub. L. 100-647, Sec. 6229(a), added subsec. (f).

1986 - Subsec. (e). Pub. L. 99-514 added subsec. (e).

1980 - Subsec. (d). Pub. L. 96-589 substituted "section

6213(g)(2)(A)" for "section 6213(f)(2)(A)".

1976 - Subsecs. (a), (c). Pub. L. 94-455, Sec. 1906(b)(13)(A),

struck out "or his delegate" after "Secretary" wherever appearing.

Subsec. (d). Pub. L. 94-455, Sec. 1212(a), added subsec. (d).

EFFECTIVE DATE OF 2002 AMENDMENT

Amendment by Pub. L. 107-134 applicable to disasters and

terroristic or military actions occurring on or after Sept. 11,

2001, with respect to any action of the Secretary of the Treasury,

the Secretary of Labor, or the Pension Benefit Guaranty Corporation

occurring on or after Jan. 23, 2002, see section 112(f) of Pub. L.

107-134, set out as a note under section 6081 of this title.

EFFECTIVE DATE OF 1998 AMENDMENTS

Amendment by Pub. L. 105-277 effective as if included in the

provision of the Taxpayer Relief Act of 1997, Pub. L. 105-34, to

which such amendment relates, see section 4003(l) of Pub. L.

105-277, set out as a note under section 86 of this title.

Pub. L. 105-206, title III, Sec. 3305(b), July 22, 1998, 112

Stat. 743, provided that: "The amendments made by this section

[amending this section] shall apply to taxable years ending after

the date of the enactment of this Act [July 22, 1998]."

Pub. L. 105-206, title III, Sec. 3309(b), (c), July 22, 1998, 112

Stat. 745, provided that:

"(b) Effective Date. - The amendment made by this section

[amending this section] shall apply to disasters declared after

December 31, 1997, with respect to taxable years beginning after

December 31, 1997.

"(c) Emergency Designation. -

"(1) For the purposes of section 252(e) of the Balanced Budget

and Emergency Deficit Control Act [2 U.S.C. 902(e)], Congress

designates the provisions of this section as an emergency

requirement.

"(2) The amendments made by subsections (a) and (b) of this

section [amending this section] shall only take effect upon the

transmittal by the President to the Congress of a message

designating the provisions of subsections (a) and (b) as an

emergency requirement pursuant to section 252(e) of the Balanced

Budget and Emergency Deficit Control Act."

[For message of the President dated July 22, 1998, designating

the provisions of section 3309(a), (b) of Pub. L. 105-206 as an

emergency requirement pursuant to section 252(e) of the Balanced

Budget and Emergency Deficit Control Act of 1985 on July 22, 1998,

see Cong. Rec., vol. 144, p. H6160, Daily Issue.]

EFFECTIVE DATE OF 1996 AMENDMENT

Section 301(c) of Pub. L. 104-168 provided that: "The amendments

made by this section [amending this section] shall apply to

interest accruing with respect to deficiencies or payments for

taxable years beginning after the date of the enactment of this Act

[July 30, 1996]."

Section 302(b) of Pub. L. 104-168 provided that: "The amendment

made by this section [amending this section] shall apply to

requests for abatement after the date of the enactment of this Act

[July 30, 1996]."

Section 701(d) of Pub. L. 104-168 provided that: "The amendments

made by this section [amending this section and sections 6656 and

7430 of this title] shall apply in the case of proceedings

commenced after the date of the enactment of this Act [July 30,

1996]."

EFFECTIVE DATE OF 1988 AMENDMENT

Amendment by section 1015(n) of Pub. L. 100-647 effective, except

as otherwise provided, as if included in the provision of the Tax

Reform Act of 1986, Pub. L. 99-514, to which such amendment

relates, see section 1019(a) of Pub. L. 100-647, set out as a note

under section 1 of this title.

Section 6229(b) of Pub. L. 100-647 provided that: "The amendment

made by subsection (a) [amending this section] shall apply with

respect to advice requested on or after January 1, 1989."

EFFECTIVE DATE OF 1986 AMENDMENT

Section 1563(b) of Pub. L. 99-514 provided that:

"(1) In general. - The amendment made by subsection (a) [amending

this section] shall apply to interest accruing with respect to

deficiencies or payments for taxable years beginning after December

31, 1978.

"(2) Statute of limitations. - If refund or credit of any amount

resulting from the application of the amendment made by subsection

(a) is prevented at any time before the close of the date which is

1 year after the date of the enactment of this Act [Oct. 22, 1986]

by the operation of any law or rule of law (including res

judicata), refund or credit of such amount (to the extent

attributable to the application of the amendment made by subsection

(a)) may, nevertheless, be made or allowed if claim therefore [sic]

is filed before the close of such 1-year period."

EFFECTIVE DATE OF 1980 AMENDMENT

Amendment by Pub. L. 96-589 effective on Oct. 1, 1979, but not

applicable to proceedings under Title 11, Bankruptcy, commenced

before Oct. 1, 1979, see section 7(e) of Pub. L. 96-589, set out as

a note under section 108 of this title.

EFFECTIVE DATE OF 1976 AMENDMENT

Section 1212(b) of Pub. L. 94-455 provided that: "The amendment

made by subsection (a) [amending this section] shall apply with

respect to returns filed for taxable years ending after the date of

enactment of this Act [Oct. 4, 1976]."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 6213, 6230 of this title.

-End-

-CITE-

26 USC Sec. 6405 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 65 - ABATEMENTS, CREDITS, AND REFUNDS

Subchapter A - Procedure in General

-HEAD-

Sec. 6405. Reports of refunds and credits

-STATUTE-

(a) By Treasury to Joint Committee

No refund or credit of any income, war profits, excess profits,

estate, or gift tax, or any tax imposed with respect to public

charities, private foundations, operators' trust funds, pension

plans, or real estate investment trusts under chapter 41, 42, 43,

or 44, in excess of $2,000,000 shall be made until after the

expiration of 30 days from the date upon which a report giving the

name of the person to whom the refund or credit is to be made, the

amount of such refund or credit, and a summary of the facts and the

decision of the Secretary, is submitted to the Joint Committee on

Taxation.

(b) Tentative adjustments

Any credit or refund allowed or made under section 6411 shall be

made without regard to the provisions of subsection (a) of this

section. In any such case, if the credit or refund, reduced by any

deficiency in such tax thereafter assessed and by deficiencies in

any other tax resulting from adjustments reflected in the

determination of the credit or refund, is in excess of $2,000,000,

there shall be submitted to such committee a report containing the

matter specified in subsection (a) at such time after the making of

the credit or refund as the Secretary shall determine the correct

amount of the tax.

(c) Refunds attributable to certain disaster losses

If any refund or credit of income taxes is attributable to the

taxpayer's election under section 165(i) to deduct a disaster loss

for the taxable year immediately preceding the taxable year in

which the disaster occurred, the Secretary is authorized in his

discretion to make the refund or credit, to the extent attributable

to such election, without regard to the provisions of subsection

(a) of this section. If such refund or credit is made without

regard to subsection (a), there shall thereafter be submitted to

such Joint Committee a report containing the matter specified in

subsection (a) as soon as the Secretary shall determine the correct

amount of the tax for the taxable year for which the refund or

credit is made.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 792; Pub. L. 92-418, Sec. 2(b),

Aug. 29, 1972, 86 Stat. 657; Pub. L. 92-512, title II, Sec. 203(a),

Oct. 20, 1972, 86 Stat. 944; Pub. L. 94-455, title XII, Sec.

1210(a), (b), title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90

Stat. 1711, 1834; Pub. L. 95-227, Sec. 4(d)(3), Feb. 10, 1978, 92

Stat. 23; Pub. L. 98-369, div. A, title VII, Sec. 711(c)(3), July

18, 1984, 98 Stat. 946; Pub. L. 99-514, title XVIII, Sec. 1879(e),

Oct. 22, 1986, 100 Stat. 2906; Pub. L. 101-508, title XI, Secs.

11801(c)(21)(A), 11834(a), Nov. 5, 1990, 104 Stat. 1388-528,

1388-560; Pub. L. 106-554, Sec. 1(a)(7) [title III, Sec. 305(a)],

Dec. 21, 2000, 114 Stat. 2763, 2763A-634.)

-MISC1-

AMENDMENTS

2000 - Subsecs. (a), (b). Pub. L. 106-554 substituted

"$2,000,000" for "$1,000,000".

1990 - Subsecs. (a), (b). Pub. L. 101-508, Sec. 11834(a)

substituted "$1,000,000" for "$200,000".

Subsec. (d). Pub. L. 101-508, Sec. 11801(c)(21)(A), struck out

subsec. (d) which read as follows: "For purposes of this section, a

refund or credit made under subchapter E of chapter 64 (relating to

Federal collection of qualified State individual income taxes) for

a taxable year shall be treated as a portion of a refund or credit

of the income tax for that taxable year."

1986 - Subsecs. (b) to (e). Pub. L. 99-514 redesignated subsecs.

(c) to (e) as (b) to (d), respectively, and struck out former

subsec. (b) which read as follows: "A report to Congress shall be

made annually by such committee of such refunds and credits,

including the names of all persons and corporations to whom amounts

are credited or payments are made, together with the amounts

credited or paid to each."

1984 - Subsec. (d). Pub. L. 98-369 substituted "section 165(i)"

for "section 165(h)".

1978 - Subsec. (a). Pub. L. 95-227 inserted provisions relating

to applicability to public charities, operators' trust funds, or

real estate investment trusts, and references to chapters 41 and

44.

1976 - Subsec. (a). Pub. L. 94-455, Sec. 1210(a), inserted

reference to any tax imposed with respect to private foundations

and pensions under chapters 42 and 43, substituted $200,000 for

$100,000 and struck out "or his delegate" after "Secretary".

Subsec. (c). Pub. L. 94-455, Secs. 1210(b), 1906(b)(13)(A),

substituted "$200,000" for "$100,000" and struck out "or his

delegate" after "Secretary".

Subsec. (d). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck out "or

his delegate" after "Secretary" wherever appearing.

1972 - Subsec. (d). Pub. L. 92-418 added subsec. (d).

Subsec. (e). Pub. L. 92-512 added subsec. (e).

EFFECTIVE DATE OF 2000 AMENDMENT

Pub. L. 106-554, Sec. 1(a)(7) [title III, Sec. 305(b)], Dec. 21,

2000, 114 Stat. 2763, 2763A-634, provided that: "The amendment made

by subsection (a) [amending this section] shall take effect on the

date of the enactment of this Act [Dec. 21, 2000], except that such

amendment shall not apply with respect to any refund or credit with

respect to a report that has been made before such date of the

enactment under section 6405 of the Internal Revenue Code of 1986."

EFFECTIVE DATE OF 1990 AMENDMENT

Section 11834(b) of Pub. L. 101-508 provided that: "The amendment

made by subsection (a) [amending this section] shall take effect on

the date of the enactment of this Act [Nov. 5, 1990], except that

such amendment shall not apply with respect to any refund or credit

with respect to a report has been made before such date of

enactment under section 6405 of the Internal Revenue Code of 1986."

EFFECTIVE DATE OF 1986 AMENDMENT

Amendment by Pub. L. 99-514 effective, except as otherwise

provided, as if included in the provisions of the Tax Reform Act of

1984, Pub. L. 98-369, div. A, to which such amendment relates, see

section 1881 of Pub. L. 99-514, set out as a note under section 48

of this title.

EFFECTIVE DATE OF 1984 AMENDMENT

Amendment by Pub. L. 98-369 effective as if included in the

provision of the Tax Equity and Fiscal Responsibility Act of 1982,

Pub. L. 97-248, to which such amendment relates, see section 715 of

Pub. L. 98-369, set out as a note under section 31 of this title.

EFFECTIVE DATE OF 1978 AMENDMENT

Amendment by Pub. L. 95-227 applicable with respect to

contributions, acts, and expenditures made after Dec. 31, 1977, in

and for taxable years beginning after such date, see section 4(f)

of Pub. L. 95-227, set out as an Effective Date note under section

192 of this title.

EFFECTIVE DATE OF 1976 AMENDMENT

Section 1210(d)(1) of Pub. L. 94-455, as amended by Pub. L.

99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that: "The

amendments made by subsections (a) and (b) [amending this section]

shall take effect on the date of enactment of this Act [Oct. 4,

1976], except that such amendments shall not apply with respect to

any refund or credit with respect to which a report has been made

before the date of enactment of this Act [Oct. 4, 1976] under

subsection (a) or (c) of section 6405 of the Internal Revenue Code

of 1986 [formerly I.R.C. 1954]."

EFFECTIVE DATE OF 1972 AMENDMENT

Section 2(c) of Pub. L. 92-418 provided in part that: "The

amendment made by subsection (b) [amending this section] shall

apply with respect to refunds or credits made after July 1, 1972."

SAVINGS PROVISION

For provisions that nothing in amendment by section

11801(c)(21)(A) of Pub. L. 101-508 be construed to affect treatment

of certain transactions occurring, property acquired, or items of

income, loss, deduction, or credit taken into account prior to Nov.

5, 1990, for purposes of determining liability for tax for periods

ending after Nov. 5, 1990, see section 11821(b) of Pub. L. 101-508,

set out as a note under section 29 of this title.

PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1989

For provisions directing that if any amendments made by subtitle

A or subtitle C of title XI [Secs. 1101-1147 and 1171-1177] or

title XVIII [Secs. 1800-1899A] of Pub. L. 99-514 require an

amendment to any plan, such plan amendment shall not be required to

be made before the first plan year beginning on or after Jan. 1,

1989, see section 1140 of Pub. L. 99-514, as amended, set out as a

note under section 401 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 7851, 8022 of this title;

title 28 section 530D.

-End-

-CITE-

26 USC Sec. 6406 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 65 - ABATEMENTS, CREDITS, AND REFUNDS

Subchapter A - Procedure in General

-HEAD-

Sec. 6406. Prohibition of administrative review of decisions

-STATUTE-

In the absence of fraud or mistake in mathematical calculation,

the findings of fact in and the decision of the Secretary upon the

merits of any claim presented under or authorized by the internal

revenue laws and the allowance or non-allowance by the Secretary of

interest on any credit or refund under the internal revenue laws

shall not, except as provided in subchapters C and D of chapter 76

(relating to the Tax Court), be subject to review by any other

administrative or accounting officer, employee, or agent of the

United States.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 792; Pub. L. 94-455, title XIX,

Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.)

-MISC1-

AMENDMENTS

1976 - Pub. L. 94-455 struck out "or his delegate" after

"Secretary" wherever appearing.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 6611 of this title; title

31 section 713.

-End-

-CITE-

26 USC Sec. 6407 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 65 - ABATEMENTS, CREDITS, AND REFUNDS

Subchapter A - Procedure in General

-HEAD-

Sec. 6407. Date of allowance of refund or credit

-STATUTE-

The date on which the Secretary first authorizes the scheduling

of an overassessment in respect of any internal revenue tax shall

be considered as the date of allowance of refund or credit in

respect of such tax.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 793; Pub. L. 94-455, title XIX,

Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.)

-MISC1-

AMENDMENTS

1976 - Pub. L. 94-455 struck out "or his delegate" after

"Secretary" wherever appearing.

-End-

-CITE-

26 USC Sec. 6408 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 65 - ABATEMENTS, CREDITS, AND REFUNDS

Subchapter A - Procedure in General

-HEAD-

Sec. 6408. State escheat laws not to apply

-STATUTE-

No overpayment of any tax imposed by this title shall be refunded

(and no interest with respect to any such overpayment shall be

paid) if the amount of such refund (or interest) would escheat to a

State or would otherwise become the property of a State under any

law relating to the disposition of unclaimed or abandoned property.

No refund (or payment of interest) shall be made to the estate of

any decedent unless it is affirmatively shown that such amount will

not escheat to a State or otherwise become the property of a State

under such a law.

-SOURCE-

(Added Pub. L. 100-203, title X, Sec. 10621(a), Dec. 22, 1987, 101

Stat. 1330-452.)

-MISC1-

EFFECTIVE DATE

Section 10621(c) of Pub. L. 100-203 provided that: "The

amendments made by this section [enacting this section] shall take

effect on the date of the enactment of this Act [Dec. 22, 1987]."

-End-

-CITE-

26 USC Subchapter B - Rules of Special Application 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 65 - ABATEMENTS, CREDITS, AND REFUNDS

Subchapter B - Rules of Special Application

-HEAD-

SUBCHAPTER B - RULES OF SPECIAL APPLICATION

-MISC1-

Sec.

6411. Tentative carryback and refund adjustments.

6412. Floor stocks refunds.

6413. Special rules applicable to certain employment taxes.

6414. Income tax withheld.

6415. Credits or refunds to persons who collected certain

taxes.

6416. Certain taxes on sales and services.

[6417, 6418. Repealed.]

6419. Excise tax on wagering.

6420. Gasoline used on farms.

6421. Gasoline used for certain nonhighway purposes, used by

local transit systems, or sold for certain exempt

purposes.

6422. Cross references.

6423. Conditions to allowance in the case of alcohol and

tobacco taxes.

[6424. Repealed.]

6425. Adjustment of overpayment of estimated income tax by

corporation.

[6426. Repealed.]

6427. Fuels not used for taxable purposes.

6428. Acceleration of 10 percent income tax rate bracket

benefit for 2001.

[6429, 6430. Repealed.]

AMENDMENTS

2001 - Pub. L. 107-16, title I, Sec. 101(b)(2), June 7, 2001, 115

Stat. 43, added item 6428.

1990 - Pub. L. 101-508, title XI, Sec. 11801(b)(15),

(c)(22)(B)(ii), Nov. 5, 1990, 104 Stat. 1388-522, 1388-528, struck

out item 6418 "Sugar" and item 6428 "1981 rate reduction tax

credit".

1988 - Pub. L. 100-418, title I, Sec. 1941(b)(3)(E), Aug. 23,

1988, 102 Stat. 1324, struck out items 6429 "Credit and refund of

chapter 45 taxes paid by royalty owners" and 6430 "Credit or refund

of windfall profit taxes to certain trust beneficiaries".

1986 - Pub. L. 99-514, title XVII, Sec. 1703(c)(2)(E), Oct. 22,

1986, 100 Stat. 2777, substituted ", used by local transit systems,

or sold for certain exempt purposes" for "or by local transit

systems" in item 6421.

1983 - Pub. L. 98-67 repealed amendments made by Pub. L. 97-248.

See 1982 Amendment note below.

Pub. L. 97-448, title I, Sec. 106(a)(4)(D), Jan. 12, 1983, 96

Stat. 2390, added item 6430.

Pub. L. 97-424, title V, Sec. 515(b)(14), Jan. 6, 1983, 96 Stat.

2182, struck out item 6424 "Lubricating oil used for certain

nontaxable purposes".

1982 - Pub. L. 97-248, title II, Sec. 280(c)(2)(H), Sept. 3,

1982, 96 Stat. 565, struck out item 6426 "Refund of aircraft use

tax where plane transports for hire in foreign air commerce".

Pub. L. 97-248, title III, Secs. 307(a)(13), 308(a), Sept. 3,

1982, 96 Stat. 590, 591, provided that, applicable to payments of

interest, dividends, and patronage dividends paid or credited after

June 30, 1983, item 6413 is amended by substituting "taxes under

subtitle C" for "employment taxes". Section 102(a), (b) of Pub. L.

98-67, title I, Aug. 5, 1983, 97 Stat. 369, repealed subtitle A

(Secs. 301-308) of title III of Pub. L. 97-248 as of the close of

June 30, 1983, and provided that the Internal Revenue Code of 1954

[now 1986] [this title] shall be applied and administered (subject

to certain exceptions) as if such subtitle A (and the amendments

made by such subtitle A) had not been enacted.

1981 - Pub. L. 97-34, title I, Sec. 101(b)(2)(A), Aug. 13, 1981,

95 Stat. 183, substituted "1981 rate reduction tax credit" for

"Refund of 1974 individual income taxes" in item 6428.

1980 - Pub. L. 96-499, title XI, Sec. 1131(a)(2), Dec. 5, 1980,

94 Stat. 2693, added item 6429.

1978 - Pub. L. 95-618, title II, Sec. 233(b)(2)(B), Nov. 9, 1978,

92 Stat. 3191, substituted "used for certain nontaxable purposes"

for "not used in highway motor vehicles" in item 6424.

Pub. L. 95-600, title V, Sec. 504(b)(1)(B), Nov. 6, 1978, 92

Stat. 2881, inserted "and refund" after "carryback" in item 6411.

1976 - Pub. L. 94-455, title XIX, Sec. 1906(b)(7), Oct. 4, 1976,

90 Stat. 1834, struck out item 6417 "Coconut and palm oil".

1975 - Pub. L. 94-12, title I, Sec. 101(c), Mar. 29, 1975, 89

Stat. 28, added item 6428.

1970 - Pub. L. 91-258, title II, Secs. 206(d)(4), 207(d)(12), May

21, 1970, 84 Stat. 246, 249, added items 6426 and 6427.

1968 - Pub. L. 90-364, title I, Sec. 103(e)(9), June 28, 1968, 82

Stat. 264, added item 6425.

1958 - Pub. L. 85-323, Sec. 2, Feb. 11, 1958, 72 Stat. 10, added

item 6423.

1956 - Act June 29, 1956, ch. 462, title II, Sec. 208(e)(4), 70

Stat. 397, added item 6421 and renumbered former item 6421 as 6422.

Act Apr. 2, 1956, ch. 160, Sec. 4(c), 70 Stat. 91, added item

6420 and renumbered former item 6420 as 6421.

-End-

-CITE-

26 USC Sec. 6411 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 65 - ABATEMENTS, CREDITS, AND REFUNDS

Subchapter B - Rules of Special Application

-HEAD-

Sec. 6411. Tentative carryback and refund adjustments

-STATUTE-

(a) Application for adjustment

A taxpayer may file an application for a tentative carryback

adjustment of the tax for the prior taxable year affected by a net

operating loss carryback provided in section 172(b), by a business

credit carryback provided in section 39, or by a capital loss

carryback provided in subsection (a)(1) or (c) of section 1212,

from any taxable year. The application shall be verified in the

manner prescribed by section 6065 in the case of a return of such

taxpayer and shall be filed, on or after the date of filing for the

return for the taxable year of the net operating loss, net capital

loss, or unused business credit from which the carryback results

and within a period of 12 months after such taxable year or, with

respect to any portion of a business credit carryback attributable

to a net operating loss carryback or a net capital loss carryback

from a subsequent taxable year, in the manner and form required by

regulations prescribed by the Secretary. The applications shall set

forth in such detail and with such supporting data and explanation

as such regulations shall require -

(1) The amount of the net operating loss, net capital loss, or

unused business credit;

(2) The amount of the tax previously determined for the prior

taxable year affected by such carryback, the tax previously

determined being ascertained in accordance with the method

prescribed in section 1314(a);

(3) The amount of decrease in such tax, attributable to such

carryback, such decrease being determined by applying the

carryback in the manner provided by law to the items on the basis

of which such tax was determined;

(4) The unpaid amount of such tax, not including any amount

required to be shown under paragraph (5);

(5) The amount, with respect to the tax for the taxable year

immediately preceding the taxable year from which the carryback

is made, as to which an extension of time for payment under

section 6164 is in effect; and

(6) Such other information for purposes of carrying out the

provisions of this section as may be required by such

regulations.

Except for purposes of applying section 6611(f)(3)(B),(!1) an

application under this subsection shall not constitute a claim for

credit or refund.

(b) Allowance of adjustments

Within a period of 90 days from the date on which an application

for a tentative carryback adjustment is filed under subsection (a),

or from the last day of the month in which falls the last date

prescribed by law (including any extension of time granted the

taxpayer) for filing the return for the taxable year of the net

operating loss, net capital loss, or unused business credit from

which such carryback results, whichever is the later, the Secretary

shall make, to the extent he deems practicable in such period, a

limited examination of the application, to discover omissions and

errors of computation therein, and shall determine the amount of

the decrease in the tax attributable to such carryback upon the

basis of the application and the examination, except that the

Secretary may disallow, without further action, any application

which he finds contains errors of computation which he deems cannot

be corrected by him within such 90-day period or material

omissions. Such decrease shall be applied against any unpaid amount

of the tax decreased (including any amount of such tax as to which

an extension of time under section 6164 is in effect) and any

remainder shall be credited against any unsatisfied amount of any

tax for the taxable year immediately preceding the taxable year of

the net operating loss, net capital loss, or unused business credit

the time for payment of which tax is extended under section 6164.

Any remainder shall, within such 90-day period, be either credited

against any tax or installment thereof then due from the taxpayer,

or refunded to the taxpayer.

(c) Consolidated returns

If the corporation seeking a tentative carryback adjustment under

this section, made or was required to make a consolidated return,

either for the taxable year within which the net operating loss,

net capital loss, or unused business credit arises, or for the

preceding taxable year affected by such loss or credit, the

provisions of this section shall apply only to such extent and

subject to such conditions, limitations, and exceptions as the

Secretary may by regulations prescribe.

(d) Tentative refund of tax under claim of right adjustment

(1) Application

A taxpayer may file an application for a tentative refund of

any amount treated as an overpayment of tax for the taxable year

under section 1341(b)(1). Such application shall be in such

manner and form as the Secretary may prescribe by regulation and

shall -

(A) be verified in the same manner as an application under

subsection (a),

(B) be filed during the period beginning on the date of

filing the return for such taxable year and ending on the date

12 months from the last day of such taxable year, and

(C) set forth in such detail and with such supporting data

such regulations prescribe -

(i) the amount of the tax for such taxable year computed

without regard to the deduction described in section

1341(a)(2),

(ii) the amount of the tax for all prior taxable years for

which the decrease in tax provided in section 1341(a)(5)(B)

was computed,

(iii) the amount determined under section 1341(a)(5)(B),

(iv) the amount of the overpayment determined under section

1341(b)(1); and

(v) such other information as the Secretary may require.

(2) Allowance of adjustments

Within a period of 90 days from the date on which an

application is filed under paragraph (1) or from the date of the

overpayment (determined under section 1341(b)(1)), whichever is

later, the Secretary shall -

(A) review the application,

(B) determine the amount of the overpayment, and

(C) apply, credit, or refund such overpayment,

in a manner similar to the manner provided in subsection (b).

(3) Consolidated returns

The provisions of subsection (c) shall apply to an adjustment

under this subsection to the same extent and manner as the

Secretary may by regulations provide.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 794; Pub. L. 89-721, Sec.

2(a)-(e), Nov. 2, 1966, 80 Stat. 1150; Pub. L. 90-225, Sec. 2(b),

Dec. 27, 1967, 81 Stat. 731; Pub. L. 91-172, title V, Sec. 512(d),

Dec. 30, 1969, 83 Stat. 639; Pub. L. 92-178, title VI, Sec.

601(e)(1), Dec. 10, 1971, 85 Stat. 560; Pub. L. 94-455, title XIX,

Sec. 1906(b)(13)(A), title XXI, Sec. 2107(g)(1), Oct. 4, 1976, 90

Stat. 1834, 1904; Pub. L. 95-30, title II, Sec. 202(d)(5)(A), May

23, 1977, 91 Stat. 150; Pub. L. 95-600, title V, Sec. 504(a),

(b)(1)(A), Nov. 6, 1978, 92 Stat. 2880, 2881; Pub. L. 96-222, title

I, Secs. 103(a)(6)(G)(xiii), 105(a)(2), Apr. 1, 1980, 94 Stat. 211,

218; Pub. L. 97-34, title II, Sec. 221(b)(2)(B), title III, Sec.

331(d)(2)(B), Aug. 13, 1981, 95 Stat. 247, 295; Pub. L. 98-369,

div. A, title IV, Sec. 474(r)(37), title VII, Sec. 714(n)(2)(B),

July 18, 1984, 98 Stat. 846, 964; Pub. L. 99-514, title II, Sec.

231(d)(3)(H), title XVIII, Sec. 1847(b)(10), Oct. 22, 1986, 100

Stat. 2180, 2857; Pub. L. 100-647, title I, Sec. 1002(h)(2), Nov.

10, 1988, 102 Stat. 3370; Pub. L. 106-554, Sec. 1(a)(7) [title III,

Sec. 318(d)(1)], Dec. 21, 2000, 114 Stat. 2763, 2763A-645.)

-REFTEXT-

REFERENCES IN TEXT

Section 6611(f)(3)(B), referred to in subsec. (a), was

redesignated section 6611(f)(4)(B) of this title by Pub. L. 105-34,

title X, Sec. 1055(b)(1), Aug. 5, 1997, 111 Stat. 944.

-MISC1-

AMENDMENTS

2000 - Subsec. (a). Pub. L. 106-554 substituted "subsection

(a)(1) or (c) of section 1212" for "section 1212(a)(1)" in

introductory provisions.

1988 - Subsec. (c). Pub. L. 100-647 struck out "unused research

credit," after "net capital loss,".

1986 - Subsec. (a). Pub. L. 99-514, Sec. 231(d)(3)(H), in

introductory provisions, struck out "by a research credit carryback

provided in section 30(g)(2)" after "carryback provided in section

39,", "unused research credit," after "net capital loss,", "a

research credit carryback or" after "with respect to any portion

of", and "(or, with respect to any portion of a business credit

carryback attributable to a research credit carryback from a

subsequent taxable year within a period of 12 months from the end

of such subsequent taxable year)" after "such subsequent taxable

year", and in par. (1), struck out "unused research credit," after

"net capital loss,".

Pub. L. 99-514, Sec. 1847(b)(10), substituted "unused research

credit, or unused business credit" for "or unused business credit".

Subsec. (b). Pub. L. 99-514, Sec. 231(d)(3)(H)(iv), struck out

"unused research credit," after "net capital loss,", in two places.

1984 - Subsec. (a). Pub. L. 98-369, Sec. 474(r)(37)(A), amended

provisions preceding par. (1) generally. Prior to amendment, such

provisions read as follows: "A taxpayer may file an application for

a tentative carryback adjustment of the tax for the prior taxable

year affected by a net operating loss carryback provided in section

172(b), by an investment credit carryback provided in section

46(b), by a work incentive program carryback provided in section

50A(b), by a new employee credit carryback provided in section

53(b), by a research credit carryback provided in section 44F(g)(2)

by an employee stock ownership credit carryback provided by section

44G(b)(2), or by a capital loss carryback provided in section

1212(a)(1), from any taxable year. The application shall be

verified in the manner prescribed by section 6065 in the case of a

return of such taxpayer, and shall be filed, on or after the date

of filing of the return for the taxable year of the net operating

loss, net capital loss, unused investment credit, unused work

incentive program credit, unused new employee credit, unused

research credit, or unused employee stock ownership credit, from

which the carryback results and within a period of 12 months from

the end of such taxable year (or, with respect to any portion of an

investment credit carryback, a work incentive program carryback, a

new employee credit carryback, a research credit carryback, or

employee stock ownership credit carryback from a taxable year

attributable to a net operating loss carryback or a capital loss

carryback (or, in the case of a work incentive program carryback,

to an investment credit carryback, or, in the case of a new

employee credit carryback, to an investment credit carryback or a

work incentive program carryback, or, in the case of a research

credit carryback, to an investment credit carryback, a work

incentive program carryback, or a new employee credit carryback,

or, in the case of an employee stock ownership credit carryback, to

an investment credit carryback, a new employee credit carryback or

a research and experimental credit carryback) from a subsequent

taxable year, within a period of 12 months from the end of such

subsequent taxable year), in the manner and form required by

regulations prescribed by the Secretary. The application shall set

forth in such detail and with such supporting data and explanation

as such regulations shall require - ".

Pub. L. 98-369, Sec. 714(n)(2)(B), in provisions following par.

(6), substituted "Except for purposes of applying section

6611(f)(3)(B), an application" for "An application".

Subsec. (a)(1). Pub. L. 98-369, Sec. 474(r)(37)(A), substituted

"unused research credit, or unused business credit" for "unused

investment credit, unused work incentive program credit, unused new

employee credit, unused research credit, or unused employee stock

ownership credit".

Subsecs. (b), (c). Pub. L. 98-369, Sec. 474(r)(37)(B),

substituted "unused research credit, or unused business credit" for

"unused investment credit, unused work incentive program credit,

unused new employee credit, unused research credit, or unused

employee stock ownership credit" wherever appearing.

1981 - Subsec. (a). Pub. L. 97-34, Sec. 331(d)(2)(B), inserted in

introductory provisions "by an employee stock ownership credit

carryback provided by section 44G(b)(2)" after "section 44F(g)(2),"

and substituted "unused research credit, or unused employee stock

ownership credit" for "or unused research credit", "a research

credit carryback, or employee stock ownership credit carryback" for

"or a research credit carryback", and "new employee credit

carryback, or, in the case of an employee stock ownership credit

carryback, to an investment credit carryback, a new employee credit

carryback or a research and experimental credit carryback)" for

"new employee credit carryback)" and in par. (1) substituted

"unused research credit, or unused employee stock ownership credit"

for "or unused research credit".

Pub. L. 97-34, Sec. 221(b)(2)(B), inserted in introductory

provision "by a research credit carryback provided in section

44F(g)(2)," after "section 53(b)," and substituted "unused new

employee credit, or unused research credit" for "or unused new

employee credit", "a new employee credit carryback, or a research

credit carryback" for "or a new employee credit carryback", and

"work incentive program carryback, or, in the case of a research

credit carryback, to an investment credit carryback, a work

incentive program carryback, or new employee credit carryback)" for

"work incentive program carryback)" and in par. (1) substituted

"unused new employee credit, or unused research credit" for "or

unused new employee credit".

Subsec. (b). Pub. L. 97-34, Sec. 331(d)(2)(B)(i), substituted

"unused research credit, or unused employee stock ownership credit"

for "or unused research credit".

Pub. L. 97-34, Sec. 221(b)(2)(B)(i), substituted "unused new

employee credit, or unused research credit" for "or unused new

employee credit".

Subsec. (c). Pub. L. 97-34, Sec. 331(d)(2)(B)(i), substituted

"unused research credit, or unused employee stock ownership credit"

for "or unused research credit".

Pub. L. 97-34, Sec. 221(b)(2)(B)(i), substituted "unused new

employee credit, or unused research credit" for "or unused new

employee credit".

1980 - Subsec. (a). Pub. L. 96-222, Sec. 103(a)(6)(G)(xiii),

substituted "section 53(b)" for "section 53(c)".

Subsec. (d)(2). Pub. L. 96-222, Sec. 105(a)(2), substituted "the

date of the overpayment (determined under section 1341(b)(1))" for

"the last day of the month in which falls the last date prescribed

by law (including any extension of time granted the taxpayer) for

filing the return for taxable year in which the overpayment

occurs".

1978 - Pub. L. 95-600, Sec. 504(b)(1)(A), inserted "and refund"

after "carryback" in section catchline.

Subsec. (d). Pub. L. 95-600, Sec. 504(a), added subsec. (d).

1977 - Subsec. (a). Pub. L. 95-30, Sec. 202(d)(5)(A)(i) to (iv),

inserted references to unused new employee credits and to new

employee credit carrybacks in provisions preceding par. (1) and in

par. (1).

Subsecs. (b), (c). Pub. L. 95-30, Sec. 202(d)(5)(A)(i), inserted

references to unused new employee credits.

1976 - Subsec. (a). Pub. L. 94-455, Secs. 1906(b)(13)(A),

2107(g)(1), struck out "or his delegate" after "Secretary" and

inserted "(or, in the case of a work incentive program carryback,

to an investment credit carryback)" after "capital loss carryback"

in second sentence.

Subsecs. (b), (c). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck

out "or his delegate" after "Secretary" wherever appearing.

1971 - Pub. L. 92-178, Sec. 601(e)(1)(A), substituted "unused

investment credit, or unused work incentive program credit" for "or

unused investment credit" wherever appearing in subsecs. (a),

(a)(1), (b), and (c).

Subsec. (a). Pub. L. 92-178, Sec. 601(e)(1)(B) and (C), inserted

"by a work incentive program carryback provided in section 50A(b),"

after "section 46(b)," in first sentence, and "or a work incentive

program carryback" after "investment credit carryback" in second

sentence, respectively.

1969 - Subsec. (a). Pub. L. 91-172, Sec. 512(d)(1), (2), provided

quick refund procedure, presently available in case of net

operating loss carrybacks, to be made available in the case of the

3-year capital loss carryback, and substituted "net operating loss,

net capital loss, or unused investment credit" for "net operating

loss or unused investment credit" in par. (1).

Subsec. (b). Pub. L. 91-172, Sec. 512(d)(2), substituted "net

operating loss, net capital loss, or unused investment credit" for

"net operating loss or unused investment credit" wherever such term

appears.

Subsec. (c). Pub. L. 91-172, Sec. 512(d)(2), substituted "net

operating loss, net capital loss, or unused investment credit" for

"net operating loss or unused investment credit".

1967 - Subsec. (a). Pub. L. 90-225 inserted "(or, with respect to

any portion of an investment credit carryback from a taxable year

attributable to a net operating loss carryback from a subsequent

taxable year, within a period of 12 months from the end of such

subsequent taxable year)" after "within a period of 12 months from

the end of such taxable year".

1966 - Subsec. (a). Pub. L. 89-721, Sec. 2(a)-(c), provided in

introductory text for a tentative carryback adjustment based on an

investment credit carryback as provided for in section 46(b) of

this title and and inserted "or unused investment credit" after

"the taxable year of the net operating loss", inserted in par. (1)

"or unused investment" after "net operating loss", and struck out

in par. (5) "of such loss" and inserted in lieu thereof "from which

the carryback is made".

Subsec. (b). Pub. L. 89-721, Sec. 2(d), inserted "or unused

investment credit" after "net operating loss" in two places.

Subsec. (c). Pub. L. 89-721, Sec. 2(d), (e), inserted "or unused

investment credit" after "net operating loss" and "or credit" after

"such loss".

EFFECTIVE DATE OF 2000 AMENDMENT

Pub. L. 106-554, Sec. 1(a)(7) [title III, Sec. 318(d)(2)], Dec.

21, 2000, 114 Stat. 2763, 2763A-645, provided that: "The amendment

made by paragraph (1) [amending this section] shall take effect as

if included in the amendments made by section 504 of the Economic

Recovery Tax Act of 1981 [Pub. L. 97-34, amending section 1212 of

this title]."

EFFECTIVE DATE OF 1988 AMENDMENT

Amendment by Pub. L. 100-647 effective, except as otherwise

provided, as if included in the provision of the Tax Reform Act of

1986, Pub. L. 99-514, to which such amendment relates, see section

1019(a) of Pub. L. 100-647, set out as a note under section 1 of

this title.

EFFECTIVE DATE OF 1986 AMENDMENT

Amendment by section 231(d)(3)(H) of Pub. L. 99-514 applicable to

taxable years beginning after Dec. 31, 1985, see section 231(g) of

Pub. L. 99-514, set out as a note under section 41 of this title.

Amendment by section 1847(b)(10) of Pub. L. 99-514 effective,

except as otherwise provided, as if included in the provisions of

the Tax Reform Act of 1984, Pub. L. 98-369, div. A, to which such

amendment relates, see section 1881 of Pub. L. 99-514, set out as a

note under section 48 of this title.

EFFECTIVE DATE OF 1984 AMENDMENT

Amendment by section 474(r)(37) of Pub. L. 98-369 applicable to

taxable years beginning after Dec. 31, 1983, and to carrybacks from

such years, see section 475(a) of Pub. L. 98-369, set out as a note

under section 21 of this title.

Amendment by section 714(n)(2)(B) of Pub. L. 98-369 effective as

if included in the provision of the Tax Equity and Fiscal

Responsibility Act of 1982, Pub. L. 97-248, to which such amendment

relates, see section 715 of Pub. L. 98-369, set out as a note under

section 31 of this title.

Notwithstanding section 715 of Pub. L. 98-369, amendment by

section 714(n)(2)(B) of Pub. L. 98-369 applicable only to

applications filed after July 18, 1984, see section 1875(d)(3) of

Pub. L. 99-514, set out as a note under section 6611 of this title.

EFFECTIVE DATE OF 1981 AMENDMENT

Amendment by section 221(b)(2)(B) of Pub. L. 97-34 applicable to

amounts paid or incurred after June 30, 1981, see section 221(d) of

Pub. L. 97-34, as amended, set out as an Effective Date note under

section 41 of this title.

Amendment by section 331(d)(2)(B) of Pub. L. 97-34 applicable to

taxable years beginning after Dec. 31, 1981, see section 339 of

Pub. L. 97-34, set out as a note under section 401 of this title.

EFFECTIVE DATE OF 1980 AMENDMENT

Amendment by Pub. L. 96-222 effective, except as otherwise

provided, as if it had been included in the provisions of the

Revenue Act of 1978, Pub. L. 95-600, to which such amendment

relates, see section 201 of Pub. L. 96-222, set out as a note under

section 32 of this title.

EFFECTIVE DATE OF 1978 AMENDMENT

Section 504(c) of Pub. L. 95-600 provided that: "The amendments

made by this section [amending this section and sections 6213 and

6501 of this title] shall apply to tentative refund claims filed on

and after the date of the enactment of this Act [Nov. 6, 1978]."

EFFECTIVE DATE OF 1977 AMENDMENT

Amendment by Pub. L. 95-30 applicable to taxable years beginning

after Dec. 31, 1976, and to credit carrybacks from such years, see

section 202(e) of Pub. L. 95-30, set out as an Effective Date note

under section 51 of this title.

EFFECTIVE DATE OF 1971 AMENDMENT

Amendment by Pub. L. 92-178 applicable to taxable years beginning

after Dec. 31, 1971, see section 601(f) of Pub. L. 92-178, set out

as a note under section 381 of this title.

EFFECTIVE DATE OF 1969 AMENDMENT

Amendment by Pub. L. 91-172 applicable with respect to net

capital losses sustained in taxable years beginning after Dec. 31,

1969, see section 512(g) of Pub. L. 91-172, set out as a note under

section 1212 of this title.

EFFECTIVE DATE OF 1967 AMENDMENT

Amendment by Pub. L. 90-225 applicable with respect to investment

credit carrybacks attributable to net operating loss carrybacks

from taxable years ending after July 31, 1967, see section 2(g) of

Pub. L. 90-225, set out as a note under section 46 of this title.

EFFECTIVE DATE OF 1966 AMENDMENT

Section 2(g) of Pub. L. 89-721, as amended by Pub. L. 99-514,

Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that: "The

amendments made by this section [amending this section and section

6501 of this title] shall apply with respect to taxable years

ending after December 31, 1961, but only in the case of

applications filed after the date of the enactment of this Act

[Nov. 2, 1966]. The period of 12 months referred to in the second

sentence of section 6411(a) of the Internal Revenue Code of 1986

[formerly I.R.C. 1954] (as amended by this section) for filing an

application for a tentative carryback adjustment of tax

attributable to the carryback of any unused investment credit shall

not expire before the close of December 31, 1966."

PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1989

For provisions directing that if any amendments made by subtitle

A or subtitle C of title XI [Secs. 1101-1147 and 1171-1177] or

title XVIII [Secs. 1800-1899A] of Pub. L. 99-514 require an

amendment to any plan, such plan amendment shall not be required to

be made before the first plan year beginning on or after Jan. 1,

1989, see section 1140 of Pub. L. 99-514, as amended, set out as a

note under section 401 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 6040, 6164, 6213, 6405,

6501, 6511, 6515, 6611 of this title.

-FOOTNOTE-

(!1) See References in Text note below.

-End-

-CITE-

26 USC Sec. 6412 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 65 - ABATEMENTS, CREDITS, AND REFUNDS

Subchapter B - Rules of Special Application

-HEAD-

Sec. 6412. Floor stocks refunds

-STATUTE-

(a) In general

(1) Tires and taxable fuel

Where before October 1, 2005, any article subject to the tax

imposed by section 4071 or 4081 has been sold by the

manufacturer, producer, or importer and on such date is held by a

dealer and has not been used and is intended for sale, there

shall be credited or refunded (without interest) to the

manufacturer, producer, or importer an amount equal to the

difference between the tax paid by such manufacturer, producer,

or importer on his sale of the article and the amount of tax made

applicable to such article on and after October 1, 2005, if claim

for such credit or refund is filed with the Secretary on or

before March 31, 2006, based upon a request submitted to the

manufacturer, producer, or importer before January 1, 2006, by

the dealer who held the article in respect of which the credit or

refund is claimed, and, on or before March 31, 2006,

reimbursement has been made to such dealer by such manufacturer,

producer, or importer for the tax reduction on such article or

written consent has been obtained from such dealer to allowance

of such credit or refund. No credit or refund shall be allowable

under this paragraph with respect to taxable fuel in retail

stocks held at the place where intended to be sold at retail, nor

with respect to taxable fuel held for sale by a producer or

importer of taxable fuel.

(2) Definitions

For purposes of this section -

(A) The term "dealer" includes a wholesaler, jobber,

distributor, or retailer.

(B) An article shall be considered as "held by a dealer" if

title thereto has passed to such dealer (whether or not

delivery to him has been made), and if for purposes of

consumption title to such article or possession thereof has not

at any time been transferred to any person other than a dealer.

(b) Limitation on eligibility for credit or refund

No manufacturer, producer, or importer shall be entitled to

credit or refund under subsection (a) unless he has in his

possession such evidence of the inventories with respect to which

the credit or refund is claimed as may be required by regulations

prescribed under this section.

(c) Other laws applicable

All provisions of law, including penalties, applicable in respect

of the taxes imposed by sections 4071 and 4081 shall, insofar as

applicable and not inconsistent with subsections (a) and (b) of

this section, apply in respect of the credits and refunds provided

for in subsection (a) to the same extent as if such credits or

refunds constituted overpayments of such taxes.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 795; Mar. 30, 1955, ch. 18, Sec.

3(b)(4), 69 Stat. 15; Mar. 29, 1956, ch. 115, Sec. 3(b)(4), 70

Stat. 67; May 29, 1956, ch. 342, Sec. 19, 70 Stat. 221; June 29,

1956, ch. 462, title II, Sec. 208(a), 70 Stat. 392; Pub. L. 85-12,

Sec. 3(b)(4), Mar. 29, 1957, 71 Stat. 10; Pub. L. 85-475, Sec.

3(b)(4), June 30, 1958, 72 Stat. 260; Pub. L. 85-859, title I, Sec.

162(a), Sept. 2, 1958, 72 Stat. 1306; Pub. L. 86-75, Sec. 3(b)(3),

June 30, 1959, 73 Stat. 158; Pub. L. 86-342, title II, Sec.

201(c)(4), Sept. 21, 1959, 73 Stat. 614; Pub. L. 86-564, title II,

Sec. 202(b)(3), June 30, 1960, 74 Stat. 291; Pub. L. 86-592, Sec.

2, July 6, 1960, 74 Stat. 330; Pub. L. 87-15, Sec. 2(b), Mar. 31,

1961, 75 Stat. 40; Pub. L. 87-61, title II, Sec. 206 (c), (d), June

29, 1961, 75 Stat. 127; Pub. L. 87-72, Sec. 3(b)(3), June 30, 1961,

75 Stat. 193; Pub. L. 87-456, title III, Sec. 302(d), May 24, 1962,

76 Stat. 77; Pub. L. 87-508, Sec. 3(b)(3), June 28, 1962, 76 Stat.

114; Pub. L. 87-535, Sec. 18(b), July 13, 1962, 76 Stat. 166; Pub.

L. 88-52, Sec. 3(b)(1)(C), June 29, 1963, 77 Stat. 72; Pub. L.

88-348, Sec. 2(b)(1)(C), June 30, 1964, 78 Stat. 237; Pub. L.

89-44, title II, Sec. 209(a), (d), June 21, 1965, 79 Stat. 141,

144; Pub. L. 89-368, title II, Sec. 201(b), Mar. 15, 1966, 80 Stat.

66; Pub. L. 90-285, Sec. 1(a)(2), Apr. 12, 1968, 82 Stat. 92; Pub.

L. 90-364, title I, Sec. 105(a)(2), June 28, 1968, 82 Stat. 265;

Pub. L. 91-172, title VII, Sec. 702(a)(2), Dec. 30, 1969, 83 Stat.

660; Pub. L. 91-605, title III, Sec. 303(b), Dec. 31, 1970, 84

Stat. 1744; Pub. L. 91-614, title II, Sec. 201(a)(2), Dec. 31,

1970, 84 Stat. 1843; Pub. L. 92-178, title IV, Sec. 401(g)(5), Dec.

10, 1971, 85 Stat. 533; Pub. L. 94-280, title III, Sec. 303(b), May

5, 1976, 90 Stat. 457; Pub. L. 94-455, title XIX, Sec. 1906(a)(22),

(b)(13)(A), Oct. 4, 1976, 90 Stat. 1826, 1834; Pub. L. 95-599,

title V, Sec. 502(c), Nov. 6, 1978, 92 Stat. 2757; Pub. L. 95-618,

title II, Sec. 231(f)(1), Nov. 9, 1978, 92 Stat. 3189; Pub. L.

97-424, title V, Sec. 516(a)(5), Jan. 6, 1983, 96 Stat. 2183; Pub.

L. 98-369, div. A, title VII, Sec. 735(c)(12), July 18, 1984, 98

Stat. 983; Pub. L. 100-17, title V, Sec. 502(d)(1), Apr. 2, 1987,

101 Stat. 257; Pub. L. 101-508, title XI, Sec. 11211(f)(1), Nov. 5,

1990, 104 Stat. 1388-427; Pub. L. 102-240, title VIII, Sec.

8002(c)(1), Dec. 18, 1991, 105 Stat. 2203; Pub. L. 103-66, title

XIII, Sec. 13242(d)(16), Aug. 10, 1993, 107 Stat. 524; Pub. L.

105-178, title IX, Sec. 9002(a)(2)(A), June 9, 1998, 112 Stat.

499.)

-MISC1-

AMENDMENTS

1998 - Subsec. (a)(1). Pub. L. 105-178 substituted "2005" for

"1999" and "2006" for "2000" wherever appearing.

1993 - Subsec. (a)(1). Pub. L. 103-66 substituted "taxable fuel"

for "gasoline" wherever appearing in heading and text.

1991 - Subsec. (a)(1). Pub. L. 102-240 substituted "1999" for

"1995" and "2000" for "1996" wherever appearing.

1990 - Subsec. (a)(1). Pub. L. 101-508 substituted "1995" for

"1993" and "1996" for "1994" wherever appearing.

1987 - Subsec. (a)(1). Pub. L. 100-17 substituted "1993" for

"1988" and "1994" for "1989" wherever appearing.

1984 - Subsec. (a)(1). Pub. L. 98-369, Sec. 735(c)(12)(A), (B),

substituted "Tires and gasoline" for "Trucks, tires, tubes, tread

rubber, and gasoline" in heading, and in text substituted "Where

before October 1, 1988, any article subject to the tax imposed by

section 4071 or 4081 has been sold by the manufacturer, producer,

or importer and on such date is held by a dealer and has not been

used and is intended for sale," for "Where before October 1, 1988,

any article subject to the tax imposed by section 4061(a)(1),

4071((a)(1), (3) or (4), or 4081 has been sold by the manufacturer,

producer, or importer and on such date is held by a dealer and has

not been used and is intended for sale (or, in the case of tread

rubber, is intended for sale or is held for use),", and struck out

provision that no credit or refund shall be allowable under this

paragraph with respect to inner tubes for bicycle tires (as defined

in section 4221(e)(4)(B)).

Subsec. (a)(2)(A). Pub. L. 98-369, Sec. 735(c)(12)(C),

substituted "The term 'dealer' includes a wholesaler, jobber,

distributor, or retailer" for "The term 'dealer' includes a

wholesaler, jobber, distributor, or retailer, or, in the case of

tread rubber subject to tax under section 4071(a)(4), includes any

person (other than the manufacturer, producer, or importer thereof)

who holds such tread rubber for sale or use".

Subsec. (c). Pub. L. 98-369, Sec. 735(c)(12)(D), substituted

"4071" for "4061, 4071,".

1983 - Subsec. (a)(1). Pub. L. 97-424, Sec. 516(a)(5),

substituted "1989" for "1985" and "1988" for "1984" wherever

appearing.

1978 - Subsec. (a)(1). Pub. L. 95-618 struck out "and buses"

after "Trucks" in heading.

Pub. L. 95-599 substituted "1984" for "1979" and "1985" for

"1980" wherever appearing.

1976 - Subsec. (a)(1). Pub. L. 94-455, Sec. 1906(a)(22),

(b)(13)(A), redesignated par. (2) as (1) and struck out "or his

delegate" after "Secretary". Prior par. (1) had been repealed by

Pub. L. 92-178, title IV, Sec. 401(g)(5), Dec. 10, 1971, 85 Stat.

533.

Subsec. (a)(2). Pub. L. 94-455, Sec. 1906(a)(22), redesignated

par. (4) as (2). Former par. (2) redesignated (1).

Pub. L. 94-280 substituted "1979" for "1977" in two places and

"1980" for "1978" in three places, respectively.

Subsec. (a)(4). Pub. L. 94-455, Sec. 1906(a)(22), redesignated

par. (4) as (2).

1971 - Subsec. (a)(1). Pub. L. 92-178 struck out par. (1) which

related to general rule for floor stocks refunds on passenger

automobiles, etc.

1970 - Subsec. (a)(1). Pub. L. 91-614 substituted "January 1 of

1973, 1974, 1978, 1979, 1980, 1981, or 1982" for "January 1, 1971,

January 1, 1972, January 1, 1973, or January 1, 1974".

Subsec. (a)(2). Pub. L. 91-605 substituted in two places "1977"

for "1972" and "March 31, 1978" for "February 10, 1973", and

substituted "January 1, 1978" for "January 1, 1973".

1969 - Subsec. (a)(1). Pub. L. 91-172 struck out reference to

Jan. 1, 1970, and inserted reference to Jan. 1, 1974.

1968 - Subsec. (a)(1). Pub. L. 90-364 substituted "January 1,

1970, January 1, 1971, January 1, 1972, or January 1, 1973," for

"May 1, 1968, or January 1, 1969,".

Pub. L. 90-285 substituted "May 1, 1968" for "April 1, 1968".

1966 - Subsec. (a)(1). Pub. L. 89-368 substituted "January 1,

1966, April 1, 1968, or January 1, 1969," for "January 1, 1966,

1967, 1968, or 1969,".

1965 - Subsec. (a)(1). Pub. L. 89-44, Sec. 209(a), made floor

stock refunds available with respect to passenger cars in dealers'

inventories on the various reduction dates for the passenger car

tax and required claims for credit or refund to be filed on or

before the 10th day of the 8th calendar month beginning after the

date of the tax reduction.

Subsec. (e). Pub. L. 89-44, Sec. 209(d), repealed subsec. (e)

which related to cross reference.

1964 - Subsec. (a)(1). Pub. L. 88-348 substituted "July 1, 1965"

for "July 1, 1964" in two places, "October 1, 1965" for "October 1,

1964", and "November 10, 1965" for "November 10, 1964" in two

places.

1963 - Subsec. (a)(1). Pub. L. 88-52 substituted "July 1, 1964"

for "July 1, 1963", in two places, "October 1, 1964" for "October

1, 1963", and "November 10, 1964" for "November 10, 1963" in two

places.

1962 - Subsec. (a)(1). Pub. L. 87-508 substituted "July 1, 1963"

for "July 1, 1962" in two places, "October 1, 1963" for "October 1,

1962", and "November 10, 1963" for "November 10, 1962" in two

places.

Subsec. (d). Pub. L. 87-456 repealed subsec. (d) which related to

floor stock refunds with respect to any sugar or articles composed

in chief value of sugar.

Pub. L. 87-535 substituted "June 30, 1967" for "December 31,

1962" after "paid and which, on", and "September 30, 1967" for

"March 31, 1963" after "delegate on or before".

1961 - Subsec. (a)(1). Pub. L. 87-72 substituted "July 1, 1962"

for "July 1, 1961" in two places, "October 1, 1962" for "October 1,

1961", and "November 10, 1962" for "November 10, 1961" in two

places.

Subsec. (a)(2). Pub. L. 87-61, Sec. 206(c), inserted tubes in

heading, authorized credit or refund for articles subject to the

tax imposed by section 4071(a)(3), prohibited credit or refund with

respect to inner tubes for bicycle tires, and substituted "October

1, 1972" for "July 1, 1972" in two places, "February 10, 1973" for

"November 10, 1972" in two places, and "January 1, 1973" for

"October 1, 1972".

Subsec. (a)(3). Pub. L. 87-61, Sec. 206(d), repealed par. (3)

which related to 1961 floor stocks refund on gasoline.

Subsec. (d). Pub. L. 87-15 substituted "December 31, 1962" for

"September 30, 1961" after "paid and which, on", and "March 31,

1963" for "September 30, 1961" after "delegate on or before".

1960 - Subsec. (a)(1). Pub. L. 86-564 substituted "July 1, 1961"

for "July 1, 1960" in two places, "October 1, 1961" for "October 1,

1960", and "November 10, 1961" for "November 10, 1960" in two

places.

Subsec. (d). Pub. L. 86-592 substituted "September 30, 1961" for

"June 30, 1961" after "and which, on".

1959 - Subsec. (a)(1). Pub. L. 86-75 substituted "July 1, 1960"

for "July 1, 1959" in two places, "October 1, 1960" for "October 1,

1959" and "November 10, 1960" for "November 10, 1959" in two

places.

Subsec. (a)(3), (4). Pub. L. 86-342 added par. (3) and

redesignated former par. (3) as (4).

1958 - Subsec. (a)(1). Pub. L. 85-475 substituted "July 1, 1959"

for "July 1, 1958" in two places, "October 1, 1959" for "October 1,

1958", and "November 10, 1959" for "November 10, 1958" in two

places.

Subsec. (d). Pub. L. 85-859 required filing of claims for refund

on or before Sept. 30, 1961.

1957 - Subsec. (a)(1). Pub. L. 85-12, substituted "July 1, 1958"

for "April 1, 1957" in two places, "October 1, 1958" for "July 1,

1957", and "November 10, 1958" for "August 10, 1957" in two places.

1956 - Subsec. (a). Act June 29, 1956, in par. (1), substituted

"April 1, 1957" for "April 1, 1956" in two places, "section

4061(a)(2)" for "section 4061 (a) or (b)", and inserted provisions

requiring claims for refund to be made on or before August 10,

1957, inserted provisions relating to trucks and buses, tires,

tread rubber, and gasoline as par. (2), defined "dealer" in the

case of tread rubber subject to tax under section 4071(a)(4) of

this title in par. (3), and struck out pars. (4) and (5). Former

par. (4), which related to reimbursement of dealers, was covered

generally by pars. (1) and (2). Former par. (5) was covered by

subsec. (b).

Act Mar. 29, 1956, substituted "April 1, 1957" for "April 1,

1956" in two places, and "July 1, 1957" for "July 1, 1956".

Subsec. (b). Act June 29, 1956, redesignated par. (5) of subsec.

(a) as subsec. (b) and substituted "manufacturer, producer, or

importer" for "person", and struck out provisions that required

claims for credit or refund to be filed before July 1, 1956. Former

subsec. (b) was covered by par. (2) of subsec. (a).

Act Mar. 29, 1956, substituted "April 1, 1957" for "April 1,

1956" in three places, and "July 1, 1957" for "July 1, 1956".

Subsec. (c). Act June 29, 1956, included taxes imposed by section

4071 of this title.

Subsec. (d). Act May 29, 1956, substituted "1961" for "1957".

1955 - Subsecs. (a), (b). Act Mar. 30, 1955, substituted "April

1, 1956" for "April 1, 1955" and "July 1, 1956" for "July 1, 1955"

wherever appearing.

EFFECTIVE DATE OF 1993 AMENDMENT

Amendment by Pub. L. 103-66 effective Jan. 1, 1994, see section

13242(e) of Pub. L. 103-66, set out as a note under section 4041 of

this title.

EFFECTIVE DATE OF 1984 AMENDMENT

Amendment by Pub. L. 98-369 effective, except as otherwise

provided, as if included in the provisions of the Highway Revenue

Act of 1982, title V of Pub. L. 97-424, to which such amendment

relates, see section 736 of Pub. L. 98-369, set out as a note under

section 4051 of this title.

EFFECTIVE DATE OF 1978 AMENDMENT

Amendment by Pub. L. 95-618 applicable with respect to articles

sold after Nov. 9, 1978, see section 231(g) of Pub. L. 95-618, set

out as a note under section 4222 of this title.

EFFECTIVE DATE OF 1971 AMENDMENT

Amendment by Pub. L. 92-178 applicable with respect to articles

sold on or after the day after Dec. 10, 1971, see section 401(h)(1)

of Pub. L. 92-178, set out as a note under section 4071 of this

title.

EFFECTIVE DATE OF 1968 AMENDMENTS

Section 105(c) of Pub. L. 90-364 provided that: "The amendments

made by this section [amending this section and sections 4061 and

4251 of this title] shall take effect as of April 30, 1968."

Section 1(b) of Pub. L. 90-285 provided that: "The amendments

made by subsection (a) [amending this section and sections 4061 and

4251 of this title] shall take effect as of March 31, 1968."

EFFECTIVE DATE OF 1965 AMENDMENT

Amendment by Pub. L. 89-44 effective June 22, 1965, see section

701(a) of Pub. L. 89-44, set out as a note under section 4161 of

this title.

EFFECTIVE DATE OF 1962 AMENDMENTS

Amendment by Pub. L. 87-535 effective Jan. 1, 1962, see section

19(a) of Pub. L. 87-535.

Amendment by Pub. L. 87-456 effective with respect to articles

entered, or withdrawn from warehouse, for consumption on or after

Aug. 31, 1963, see section 501(a) of Pub. L. 87-456.

EFFECTIVE DATE OF 1961 AMENDMENT

Amendment by Pub. L. 87-61 effective June 29, 1961, see section

208 of Pub. L. 87-61, set out as a note under section 4041 of this

title.

EFFECTIVE DATE OF 1958 AMENDMENT

Amendment by Pub. L. 85-859 effective on first day of first

calendar quarter which begins more than 60 days after Sept. 2,

1958, see section 1(c) of Pub. L. 85-859.

EFFECTIVE DATE OF 1956 AMENDMENTS

Amendment by act June 29, 1956, effective June 29, 1956, see

section 211 of act June 29, 1956, set out as a note under section

4041 of this title.

Amendment by act May 29, 1956, effective as of Jan. 1, 1956, see

section 22 of act May 29, 1956.

FLOOR STOCK REFUNDS

Section 209(b) of Pub. L. 89-44 provided that where any article

subject to taxes under section 4111, 4121, 4141, 4151, 4161, 4191

or 4451 of this title before June 21, 1965, or subject to taxes

under section 4061(b), 4091(1), or 4131 of this title before Jan.

1, 1966, had been sold by the manufacturer, importer or producer

and on such date held by the dealer and not used, there was to be

credited or refunded to the manufacturer, importer or producer an

amount equal to the difference between the tax paid by him on his

sale of the article and the amount of tax made applicable to the

article on such date where certain conditions were satisfactorily

met.

EXTENSION OF TIME FOR FILING CLAIMS FOR FLOOR STOCKS REFUNDS

Pub. L. 91-642, Sec. 1, Dec. 31, 1970, 84 Stat. 1880, provided

that if a claim for credit or refund was filed by a manufacturer,

importer or producer on or before the 90th day after Dec. 31, 1970,

such filing was deemed to have satisfied the requirements of

section 209(b)(1)(A) of Pub. L. 89-44 for filing on or before Feb.

10, 1966, or Aug. 10, 1966.

REFUNDS RESPECTING CONSUMER PURCHASES

Section 209(c) of Pub. L. 89-44 provided that if after May 14,

1965, but before June 21, 1965, a new automotive item subject to

the tax imposed by section 4061(a)(2) of this title, or a new

self-contained air-conditioning unit subject to the tax imposed by

section 4111 of this title, had been sold to an ultimate purchaser,

there was to be credited or refunded to the manufacturer, producer,

or importer an amount equal to the difference between the tax paid

by the manufacturer, producer, or importer on his sale of the

article and the tax made applicable to the article on such date if

certain conditions were met.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 6511, 6612, 9503 of this

title; title 16 section 460l-11; title 42 section 430.

-End-

-CITE-

26 USC Sec. 6413 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 65 - ABATEMENTS, CREDITS, AND REFUNDS

Subchapter B - Rules of Special Application

-HEAD-

Sec. 6413. Special rules applicable to certain employment taxes

-STATUTE-

(a) Adjustment of tax

(1) General rule

If more than the correct amount of tax imposed by section 3101,

3111, 3201, 3221, or 3402 is paid with respect to any payment of

remuneration, proper adjustments, with respect to both the tax

and the amount to be deducted, shall be made, without interest,

in such manner and at such times as the Secretary may by

regulations prescribe.

(2) United States as employer

For purposes of this subsection, in the case of remuneration

received from the United States or a wholly-owned instrumentality

thereof during any calendar year, each head of a Federal agency

or instrumentality who makes a return pursuant to section 3122

and each agent, designated by the head of a Federal agency or

instrumentality, who makes a return pursuant to such section

shall be deemed a separate employer.

(3) Guam or American Samoa as employer

For purposes of this subsection, in the case of remuneration

received during any calendar year from the Government of Guam,

the Government of American Samoa, a political subdivision of

either, or any instrumentality of any one or more of the

foregoing which is wholly owned thereby, the Governor of Guam,

the Governor of American Samoa, and each agent designated by

either who makes a return pursuant to section 3125 shall be

deemed a separate employer.

(4) District of Columbia as employer

For purposes of this subsection, in the case of remuneration

received during any calendar year from the District of Columbia

or any instrumentality which is wholly owned thereby, the Mayor

of the District of Columbia and each agent designated by him who

makes a return pursuant to section 3125 shall be deemed a

separate employer.

(5) States and political subdivisions as employer

For purposes of this subsection, in the case of remuneration

received from a State or any political subdivision thereof (or

any instrumentality of any one or more of the foregoing which is

wholly owned thereby) during any calendar year, each head of an

agency or instrumentality, and each agent designated by either,

who makes a return pursuant to section 3125 shall be deemed a

separate employer.

(b) Overpayments of certain employment taxes

If more than the correct amount of tax imposed by section 3101,

3111, 3201, 3221, or 3402 is paid or deducted with respect to any

payment of remuneration and the overpayment cannot be adjusted

under subsection (a) of this section, the amount of the overpayment

shall be refunded in such manner and at such times (subject to the

statute of limitations properly applicable thereto) as the

Secretary may by regulations prescribe.

(c) Special refunds

(1) In general

If by reason of an employee receiving wages from more than one

employer during a calendar year the wages received by him during

such year exceed the contribution and benefit base (as determined

under section 230 of the Social Security Act) which is effective

with respect to such year, the employee shall be entitled

(subject to the provisions of section 31(b)) to a credit or

refund of any amount of tax, with respect to such wages, imposed

by section 3101(a) or section 3201(a) (to the extent of so much

of the rate applicable under section 3201(a) as does not exceed

the rate of tax in effect under section 3101(a)), or by both such

sections, and deducted from the employee's wages (whether or not

paid to the Secretary), which exceeds the tax with respect to the

amount of such wages received in such year which is equal to such

contribution and benefit base. The term "wages" as used in this

paragraph shall, for purposes of this paragraph, include

"compensation" as defined in section 3231(e).

(2) Applicability in case of Federal and State employees,

employees of certain foreign affiliates, and governmental

employees in Guam, American Samoa, and the District of Columbia

(A) Federal employees

In the case of remuneration received from the United States

or a wholly-owned instrumentality thereof during any calendar

year, each head of a Federal agency or instrumentality who

makes a return pursuant to section 3122 and each agent,

designated by the head of a Federal agency or instrumentality,

who makes a return pursuant to such section shall, for purposes

of this subsection, be deemed a separate employer; and the term

"wages" includes for purposes of this subsection the amount,

not to exceed an amount equal to the contribution and benefit

base (as determined under section 230 of the Social Security

Act) for any calendar year with respect to which such

contribution and benefit base is effective, determined by each

such head or agent as constituting wages paid to an employee.

(B) State employees

For purposes of this subsection, in the case of remuneration

received during any calendar year, the term "wages" includes

such remuneration for services covered by an agreement made

pursuant to section 218 of the Social Security Act as would be

wages if such services constituted employment; the term

"employer" includes a State or any political subdivision

thereof, or any instrumentality of any one or more of the

foregoing; the term "tax" or "tax imposed by section 3101(a)"

includes, in the case of services covered by an agreement made

pursuant to section 218 of the Social Security Act, an amount

equivalent to the tax which would be imposed by section

3101(a), if such services constituted employment as defined in

section 3121; and the provisions of this subsection shall apply

whether or not any amount deducted from the employee's

remuneration as a result of an agreement made pursuant to

section 218 of the Social Security Act has been paid to the

Secretary.

(C) Employees of certain foreign affiliates

For purposes of paragraph (1) of this subsection, the term

"wages" includes such remuneration for services covered by an

agreement made pursuant to section 3121(l) as would be wages if

such services constituted employment; the term "employer"

includes any American employer which has entered into an

agreement pursuant to section 3121(l); the term "tax" or "tax

imposed by section 3101(a)," includes, in the case of services

covered by an agreement entered into pursuant to section

3121(l), an amount equivalent to the tax which would be imposed

by section 3101(a), if such services constituted employment as

defined in section 3121; and the provisions of paragraph (1) of

this subsection shall apply whether or not any amount deducted

from the employee's remuneration as a result of the agreement

entered into pursuant to section 3121(l) has been paid to the

Secretary.

(D) Governmental employees in Guam

In the case of remuneration received from the Government of

Guam or any political subdivision thereof or from any

instrumentality of any one or more of the foregoing which is

wholly owned thereby, during any calendar year, the Governor of

Guam and each agent designated by him who makes a return

pursuant to section 3125(b) shall, for purposes of this

subsection, be deemed a separate employer.

(E) Governmental employees in American Samoa

In the case of remuneration received from the Government of

American Samoa or any political subdivision thereof or from any

instrumentality of any one or more of the foregoing which is

wholly owned thereby, during any calendar year, the Governor of

American Samoa and each agent designated by him who makes a

return pursuant to section 3125(c) shall, for purposes of this

subsection, be deemed a separate employer.

(F) Governmental employees in the District of Columbia

In the case of remuneration received from the District of

Columbia or any instrumentality wholly owned thereby, during

any calendar year, the Mayor of the District of Columbia and

each agent designated by him who makes a return pursuant to

section 3125(d) shall, for purposes of this subsection, be

deemed a separate employer.

(G) Employees of States and political subdivisions

In the case of remuneration received from a State or any

political subdivision thereof (or any instrumentality of any

one or more of the foregoing which is wholly owned thereby)

during any calendar year, each head of an agency or

instrumentality, and each agent designated by either, who makes

a return pursuant to section 3125(a) shall, for purposes of

this subsection, be deemed a separate employer.

(d) Refund or credit of Federal unemployment tax

Any credit allowable under section 3302, to the extent not

previously allowed, shall be considered an overpayment, but no

interest shall be allowed or paid with respect to such overpayment.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 797; Sept. 1, 1954, ch. 1206,

title II, Sec. 202(a)(1), (b)(1)-(3), 68 Stat. 1089, 1090; Pub. L.

85-840, title IV, Sec. 402(d), Aug. 28, 1958, 72 Stat. 1043; Pub.

L. 86-778, title I, Sec. 103(r)(2)-(4), Sept. 13, 1960, 74 Stat.

940; Pub. L. 89-97, title III, Secs. 317(e), (f), 320(b)(5), (6),

July 30, 1965, 79 Stat. 389, 390, 393, 394; Pub. L. 90-248, title

I, Sec. 108(b)(5), (6), title V, Sec. 502(a), Jan. 2, 1968, 81

Stat. 835, 934; Pub. L. 92-5, title II, Sec. 203(b)(5), (6), Mar.

17, 1971, 85 Stat. 11; Pub. L. 92-336, title II, Sec. 203(b)(5),

(6), July 1, 1972, 86 Stat. 419, 420; Pub. L. 92-603, title I, Sec.

144(c), Oct. 30, 1972, 86 Stat. 1370; Pub. L. 93-66, title II, Sec.

203(b)(5), (6), July 9, 1973, 87 Stat. 153; Pub. L. 93-233, Sec.

5(b)(5), (6), Dec. 31, 1973, 87 Stat. 954; Pub. L. 93-445, title V,

Sec. 502, Oct. 16, 1974, 88 Stat. 1360; Pub. L. 94-455, title XIX,

Sec. 1906(a)(23)(A), (B)(i), (ii), (C), (D), (b)(13)(A), Oct. 4,

1976, 90 Stat. 1826, 1827, 1834; Pub. L. 97-248, title III, Secs.

302(c), 307(a)(10)-(12), 308(a), Sept. 3, 1982, 96 Stat. 586,

589-591; Pub. L. 98-21, title III, Sec. 321(e)(4), Apr. 20, 1983,

97 Stat. 120; Pub. L. 98-67, title I, Sec. 102(a), Aug. 5, 1983, 97

Stat. 369; Pub. L. 99-272, title XIII, Sec. 13205(a)(2)(E), Apr. 7,

1986, 100 Stat. 315; Pub. L. 101-508, title XI, Sec. 11331(d)(1),

Nov. 5, 1990, 104 Stat. 1388-468; Pub. L. 103-66, title XIII, Sec.

13207(d)(1)-(3), Aug. 10, 1993, 107 Stat. 468.)

-REFTEXT-

REFERENCES IN TEXT

Section 230 of the Social Security Act, referred to in subsec.

(c)(1), (2)(A), is classified to section 430 of Title 42, The

Public Health and Welfare.

Section 218 of the Social Security Act, referred to in subsec.

(c)(2)(B), is classified to section 418 of Title 42.

-MISC1-

AMENDMENTS

1993 - Subsec. (c)(1). Pub. L. 103-66, Sec. 13207(d)(1),

substituted "section 3101(a) or section 3201(a) (to the extent of

so much of the rate applicable under section 3201(a) as does not

exceed the rate of tax in effect under section 3101(a))" for

"section 3101 or section 3201".

Subsec. (c)(2)(B), (C). Pub. L. 103-66, Sec. 13207(d)(2),

substituted "section 3101(a)" for "section 3101" wherever

appearing.

Subsec. (c)(3). Pub. L. 103-66, Sec. 13207(d)(3), struck out

heading and text of par. (3). Text read as follows: "In applying

this subsection with respect to -

"(A) the tax imposed by section 3101(b) (or any amount

equivalent to such tax), and

"(B) so much of the tax imposed by section 3201 as is

determined at a rate not greater than the rate in effect under

section 3101(b),

the applicable contribution base determined under section

3121(x)(2) for any calendar year shall be substituted for

'contribution and benefit base (as determined under section 230 of

the Social Security Act)' each place it appears."

1990 - Subsec. (c)(3). Pub. L. 101-508 substituted heading for

one which read: "Applicability with respect to compensation of

employees subject to the Railroad Retirement Tax Act" and amended

text generally. Prior to amendment, text read as follows: "In the

case of any individual who, during any calendar year, receives

wages from one or more employers and also receives compensation

which is subject to the tax imposed by section 3201 or 3211, such

compensation shall, solely for purposes of applying paragraph (1)

with respect to the tax imposed by section 3101(b), be treated as

wages received from an employer with respect to which the tax

imposed by section 3101(b) was deducted."

1986 - Subsec. (a)(5). Pub. L. 99-272, Sec. 13205(a)(2)(E)(i),

added par. (5).

Subsec. (c)(2)(D) to (F). Pub. L. 99-272, Sec.

13205(a)(2)(E)(ii)(I), substituted "3125(b)", "3125(c)", and

"3125(d)" for "3125(a)", "3125(b)", and "3125(c)", respectively, in

subpars. (D), (E), and (F), respectively.

Subsec. (c)(2)(G). Pub. L. 99-272, Sec. 13205(a)(2)(E)(ii)(II),

added subpar. (G).

1983 - Pub. L. 98-67 repealed amendments made by Pub. L. 97-248.

See 1982 Amendment note below.

Subsec. (c)(2). Pub. L. 98-21, Sec. 321(e)(4)(B), substituted

"foreign affiliates" for "foreign corporations" in heading.

Subsec. (c)(2)(C). Pub. L. 98-21, Sec. 321(e)(4)(A), substituted

"foreign affiliates" for "foreign corporations" in heading and, in

text, substituted "American employer" for "domestic corporation".

1982 - Catchline and subsecs. (a)(1), (b), (c)(1). Pub. L. 97-248

provided that, applicable to payments of interest, dividends, and

patronage dividends paid or credited after June 30, 1983, the

section catchline is amended by substituting "taxes under subtitle

C" for "employment taxes"; subsec. (a)(1) is amended by

substituting "3402 or 3451 is paid with respect to any payment of

remuneration, interest, dividends, or other amounts," for "or 3402

is paid with respect to any payment of remuneration,"; subsec. (b)

is amended by striking out "of certain employment taxes" from

heading, and by substituting "3402 or 3451 is paid or deducted with

respect to any payment of remuneration, interest, dividends, or

other amount"; and subsec. (c)(1) is amended by substituting

"section 31(c)" for "section 31(b)". Section 102(a), (b) of Pub. L.

98-67, title I, Aug. 5, 1983, 97 Stat. 369, repealed subtitle A

(Secs. 301-308) of title III of Pub. L. 97-248 as of the close of

June 30, 1983, and provided that the Internal Revenue Code of 1954

[now 1986] [this title] shall be applied and administered (subject

to certain exceptions) as if such subtitle A (and the amendments

made by such subtitle A) had not been enacted.

1976 - Subsec. (a)(1). Pub. L. 94-455, Sec. 1906(b)(13)(A),

struck out "or his delegate" after "Secretary".

Subsec. (a)(4). Pub. L. 94-455, Sec. 1906(a)(23)(A), substituted

"Mayor of the District of Columbia and each agent designated by

him" for "Commissioners of the District of Columbia and each agent

designated by them".

Subsec. (b). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck out "or

his delegate" after "Secretary".

Subsec. (c)(1). Pub. L. 94-455, Sec. 1906(a)(23)(B)(i), struck

out "or his delegate" after "Secretary" and substituted general

provision for entitlement to credit or refund of employment taxes

deducted from an employee receiving wages from more than one

employer during a calendar year and in excess of employment taxes

with respect to amount of wages received in the calendar year equal

to the contribution and benefit base determined under section 230

of the Social Security Act and effective with respect to such

calendar year for prior specific provisions for such credit or

refund of employment taxes deducted in excess of prescribed amount

for base limits and applicable periods set forth below:

Amount After Prior to

Calendar Calendar

Year Year

--------------------------------------------------------------------

$3,600 1950 1955

$4,200 1954 1959

$4,800 1958 1966

$6,600 1965 1968

$7,800 1967 1972

$9,000 1971 1973

$10,800 1972 1974

$13,200 1973 1975

--------------------------------------------------------------------

and amount equal to the contribution and benefit base determined

under section 230 of the Social Security Act and effective with

respect to calendar year after calendar year 1974, and thereafter.

Subsec. (c)(2)(A). Pub. L. 94-455, Sec. 1906(a)(23)(B)(ii),

substituted "the amount, not to exceed an amount equal to the

contribution and benefit base (as determined under section 230 of

the Social Security Act) for any calendar year" for "the amount,

not to exceed $3,600 for the calendar year 1951, 1952, 1953, or

1954, $4,200 for the calendar year 1955, 1956, 1957, or 1958,

$4,800 for the calendar year 1959, 1960, 1961, 1962, 1963, 1964, or

1965, $6,600 for the calendar year 1966 or 1967, $7,800 for the

calendar year 1968, 1969, 1970, or 1971, $9,000 for the calendar

year 1972, $10,800 for the calendar year 1973, $13,200 for the

calendar year 1974, or an amount equal to the contribution and

benefit base (as determined under section 230 of the Social

Security Act) for any calendar year after 1974" before "with

respect to which such contribution and benefit base is effective".

Subsec. (c)(2)(C). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck

out "or his delegate" after "Secretary".

Subsec. (c)(2)(F). Pub. L. 94-455, Sec. 1906(a)(23)(C),

substituted "Mayor of the District of Columbia and each agent

designated by him" for "Commissioners of the District of Columbia

and each agent designated by them".

Subsec. (c)(3). Pub. L. 94-455, Sec. 1906(a)(23)(D), struck out

"after 1967" after "calendar year".

1974 - Subsec. (c)(1). Pub. L. 93-445 inserted "or section 3201,

or by both such sections" after "section 3101" and inserted

provision that for purposes of subsec. (c)(1) the term "wages"

include compensation as defined in section 3231(e).

1973 - Subsec. (c)(1). Pub. L. 93-233, Sec. 5(b)(5), substituted

"$13,200" for "$12,600" whenever appearing.

Pub. L. 93-66, Sec. 203(b)(5), substituted "$12,600" for

"$12,000" wherever appearing.

Subsec. (c)(2)(A). Pub. L. 93-233, Sec. 5(b)(6), substituted

"$13,200" for "$12,600".

Pub. L. 93-66, Sec. 203(b)(6), substituted "$12,600" for

"$12,000".

1972 - Subsec. (c)(1). Pub. L. 92-336, Sec. 203(b)(5), inserted

"and prior to the calendar year 1973" after "after the calendar

year 1971", inserted provisions of cls. (F) to (H), and provisions

relating to wages received after 1971 and before 1973, after 1972

and before 1974, after 1973 and before 1975, and the calendar year

after 1974.

Subsec. (c)(2)(A). Pub. L. 92-336, Sec. 203(b)(6), as amended by

Pub. L. 92-603, Sec. 144(c), eff. July 1, 1972, inserted provisions

relating to amounts to be included within the term "wages" for the

calendar years 1972, 1973, 1974, or any calendar year after 1974.

1971 - Subsec. (c)(1). Pub. L. 92-5, Sec. 203(b)(5), inserted

"and prior to the calendar year 1972" after "after the calendar

year 1967", "or (E) during any calendar year after the calendar

year 1971, the wages received by him during such year exceed

$9,000," after "exceed $7,800," and inserted before the period at

end of subpar. (1) "and before 1972, or which exceeds the tax with

respect to the first $9,000 of such wages received in such calendar

year after 1971".

Subsec. (c)(2)(A). Pub. L. 92-5, Sec. 203(b)(6), substituted

"$7,800 for the calendar year 1968, 1969, 1970, or 1971, or $9,000

for any calendar year after 1971" for "or $7,800 for any calendar

year after 1967".

1968 - Subsec. (c)(1). Pub. L. 90-248, Sec. 108(b)(5), inserted

"and prior to the calendar year 1968" after "the calendar year

1965", "or (D) during any calendar year after the calendar year

1967, the wages received by him during such year exceed $7,800,"

after "exceed $6,600,", and "and before 1968, or which exceeds the

tax with respect to the first $7,800 of such wages received in such

calendar year after 1967".

Subsec. (c)(2)(A). Pub. L. 90-248, Sec. 108(b)(6), substituted

"$6,600 for the calendar year 1966 or 1967, or $7,800 for any

calendar year after 1967" for "or $6,600 for any calendar year

after 1965".

Subsec. (c)(3). Pub. L. 90-248, Sec. 502(a), added par. (3).

1965 - Subsec. (a)(4). Pub. L. 89-97, Sec. 317(e), added par.

(4).

Subsec. (c)(1). Pub. L. 89-97, Sec. 320(b)(5), inserted "and

prior to the calendar year 1966" after "the calendar year 1958",

"or (C) during any calendar year after the calendar year 1965, the

wages received by him during such year exceed $6,600" after "exceed

$4,800,", and "and before 1966, or which exceeds the tax with

respect to the first $6,600 of such wages received in such calendar

year after 1965" before the period at end of par.

Subsec. (c)(2)(A). Pub. L. 89-97, Sec. 320(b)(6), substituted

"$4,800 for the calendar year 1959, 1960, 1961, 1962, 1963, 1964,

or 1965, or $6,600 for any calendar year after 1965" for "or $4,800

for any calendar year after 1958".

Subsec. (c)(2)(F). Pub. L. 89-97, Sec. 317(f)(1), added subpar.

(F) and inserted reference to the District of Columbia in heading.

1960 - Subsec. (a)(3). Pub. L. 86-778, Sec. 103(r)(2), added par.

(3).

Subsec. (c)(2). Pub. L. 86-778, Sec. 103(r) (3), (4), inserted

governmental employees in Guam and American Samoa in heading, and

added subpars. (D) and (E).

1958 - Subsec. (c)(1). Pub. L. 85-840, Sec. 402(d)(1), conformed

the special-refund provisions to the increase made by Pub. L.

85-840, in the limitation on wages from $4,200 to $4,800 for

calendar years after 1958.

Subsec. (c)(2)(A). Pub. L. 85-840, Sec. 402(d)(2), substituted

"$4,200 for the calendar year 1955, 1956, 1957, or 1958, or $4,800

for any calendar year after 1958" for "$4,200 for any calendar year

after 1954".

1954 - Subsec. (c)(1). Act Sept. 1, 1954, Sec. 202(a)(1),

conformed the special-refund provisions to the increase made by

said act Sept. 1, 1954, in the limitation on wages from $3,600 to

$4,200 for calendar years after 1954.

Subsec. (c)(2). Act Sept. 1, 1954, Sec. 202(b)(1), inserted "and

employees of certain foreign corporations" in heading.

Subsec. (c)(2)(A). Act Sept. 1, 1954, Sec. 202(b)(2), substituted

"$3,600 for the calendar year 1951, 1952, 1953, or 1954, or $4,200

for any calendar year after 1954" for '$3,600".

Subsec. (c)(2)(C). Act Sept. 1, 1954, Sec. 202(b)(3), added

subpar. (C).

EFFECTIVE DATE OF 1993 AMENDMENT

Amendment by Pub. L. 103-66 applicable to 1994 and later calendar

years, see section 13207(e) of Pub. L. 103-66, set out as a note

under section 1402 of this title.

EFFECTIVE DATE OF 1990 AMENDMENT

Amendment by Pub. L. 101-508 applicable to 1991 and later

calendar years, see section 11331(e) of Pub. L. 101-508, set out as

a note under section 1402 of this title.

EFFECTIVE DATE OF 1986 AMENDMENT

Amendment by Pub. L. 99-272 applicable to services performed

after Mar. 31, 1986, see section 13205(d)(1) of Pub. L. 99-272, set

out as a note under section 3121 of this title.

EFFECTIVE DATE OF 1983 AMENDMENT

Amendment by Pub. L. 98-21 applicable to agreements entered into

after Apr. 20, 1983, except that at election of any American

employer such amendment shall also apply to any agreement entered

into on or before Apr. 20, 1983, see section 321(f) of Pub. L.

98-21, set out as a note under section 406 of this title.

EFFECTIVE DATE OF 1976 AMENDMENT

Amendment by section 1906(a)(23)(A), (C), (D), (b)(13)(A) of Pub.

L. 94-455 effective on first day of first month which begins more

than ninety days after Oct. 4, 1976, see section 1906(d)(1) of Pub.

l. 94-455, set out as a note under section 6013 of this title.

Section 1906(a)(23)(B)(iii) of Pub. L. 94-455 provided that: "The

amendments made by clauses (i) and (ii) [amending this section]

shall apply with respect to remuneration paid after December 31,

1976."

EFFECTIVE DATE OF 1974 AMENDMENT

Amendment by Pub. L. 93-445 effective Jan. 1, 1975, and

applicable only with respect to compensation paid for services

rendered on or after that date, see section 604 of Pub. L. 93-445,

set out as a note under section 3221 of this title.

EFFECTIVE DATE OF 1973 AMENDMENTS

Amendment by Pub. L. 93-233 applicable only with respect to

remuneration paid after, and taxable years beginning after, 1973,

see section 5(e) of Pub. L. 93-233, set out as a note under section

409 of Title 42, The Public Health and Welfare.

Amendment by Pub. L. 93-66 applicable only with respect to

remuneration paid after, and taxable years beginning after, 1973,

see section 203(e) of Pub. L. 93-66, set out as a note under

section 409 of Title 42.

EFFECTIVE DATE OF 1972 AMENDMENT

Amendment by Pub. L. 92-336, as amended by Pub. L. 92-603, Sec.

144(c), applicable only with respect to remuneration paid after

Dec. 1972, see section 203(c) of Pub. L. 92-336, set out as a note

under section 409 of Title 42, The Public Health and Welfare.

EFFECTIVE DATE OF 1971 AMENDMENT

Amendment by Pub. L. 92-5 applicable only with respect to

remuneration paid after Dec. 1971, see section 203(c) of Pub. L.

92-5, set out as a note under section 409 of Title 42, The Public

Health and Welfare.

EFFECTIVE DATE OF 1968 AMENDMENT

Amendment by section 108(b)(5), (6) of Pub. L. 90-248 applicable

only with respect to remuneration paid after December 1967, see

section 108(c) of Pub. L. 90-248, set out as a note under section

409 of Title 42, The Public Health and Welfare.

EFFECTIVE DATE OF 1965 AMENDMENT

Amendment by section 317(e), (f) of Pub. L. 89-97 applicable with

respect to services performed after the quarter ending September

30, 1965, and after the quarter in which the Secretary of the

Treasury receives a certification from the Commissioners [now

Mayor] of the District of Columbia expressing their desire to have

the insurance system established by sections 401 et seq. and 1395c

et seq. of Title 42, The Public Health and Welfare, extended to the

officers and employees coming under the provisions of such

amendments, see section 317(g) of Pub. L. 89-97, set out as a note

under section 410 of Title 42.

Amendment by section 320(b)(5), (6) of Pub. L. 89-97 applicable

with respect to remuneration paid after December 1965, see section

320(c) of Pub. L. 89-97, set out as a note under section 3121 of

this title.

EFFECTIVE DATE OF 1960 AMENDMENT

Amendment by Pub. L. 86-778 applicable only with respect to (1)

service in the employ of the Government of Guam or any political

subdivision thereof, or any instrumentality of any one or more of

the foregoing wholly owned thereby, which is performed after 1960

and after the calendar quarter in which the Secretary of the

Treasury receives a certification by the Governor of Guam that

legislation has been enacted by the Government of Guam expressing

its desire to have the insurance system established by title II of

the Social Security Act, section 401 et seq. of Title 42, The

Public Health and Welfare, extended to the officers and employees

of such Government and such political subdivisions and

instrumentalities, and (2) service in the employ of the Government

of American Samoa or any political subdivision thereof or any

instrumentality of any one or more of the foregoing wholly owned

thereby, which is performed after 1960 and after the calendar

quarter in which the Secretary of the Treasury receives a

certification by the Governor of American Samoa that the Government

of American Samoa desires to have the insurance system established

by title II of the Social Security Act, section 401 et seq. of

Title 42, extended to the officers and employees of such Government

and such political subdivisions and instrumentalities, see section

103(v)(1) of Pub. L. 86-778, set out as a note under section 402 of

Title 42.

EFFECTIVE DATE OF 1954 AMENDMENT

Amendment by act Sept. 1, 1954, applicable only with respect to

remuneration paid after 1954, see section 202(d) of act Sept. 1,

1954, set out as a note under section 1401 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 21, 24, 31, 3121, 6612 of

this title; title 10 section 1451; title 42 sections 401, 1395i.

-End-

-CITE-

26 USC Sec. 6414 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 65 - ABATEMENTS, CREDITS, AND REFUNDS

Subchapter B - Rules of Special Application

-HEAD-

Sec. 6414. Income tax withheld

-STATUTE-

In the case of an overpayment of tax imposed by chapter 24, or by

chapter 3, refund or credit shall be made to the employer or to the

withholding agent, as the case may be, only to the extent that the

amount of such overpayment was not deducted and withheld by the

employer or withholding agent.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 798.)

-End-

-CITE-

26 USC Sec. 6415 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 65 - ABATEMENTS, CREDITS, AND REFUNDS

Subchapter B - Rules of Special Application

-HEAD-

Sec. 6415. Credits or refunds to persons who collected certain

taxes

-STATUTE-

(a) Allowance of credits or refunds

Credit or refund of any overpayment of tax imposed by section

4251, 4261, or 4271 may be allowed to the person who collected the

tax and paid it to the Secretary if such person establishes, under

such regulations as the Secretary may prescribe, that he has repaid

the amount of such tax to the person from whom he collected it, or

obtains the consent of such person to the allowance of such credit

or refund.

(b) Credit on returns

Any person entitled to a refund of tax imposed by section 4251,

4261, or 4271 paid, or collected and paid, to the Secretary by him

may, instead of filing a claim for refund, take credit therefor

against taxes imposed by such section due upon any subsequent

return.

(c) Refund of overcollections

In case any person required under section 4251, 4261, or 4271 to

collect any tax shall make an overcollection of such tax, such

person shall, upon proper application, refund such overcollection

to the person entitled thereto.

(d) Refund of taxable payment

Any person making a refund of any payment on which tax imposed by

section 4251, 4261, or 4271 has been collected may repay therewith

the amount of tax collected on such payment.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 798; Pub. L. 85-475, Sec.

4(b)(4), June 30, 1958, 72 Stat. 260; Pub. L. 85-859, title I, Sec.

163(d)(1), Sept. 2, 1958, 72 Stat. 1311; Pub. L. 89-44, title VI,

Sec. 601(b), June 21, 1965, 79 Stat. 153; Pub. L. 91-258, title II,

Sec. 205(b)(2), May 21, 1970, 84 Stat. 241; Pub. L. 94-455, title

XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.)

-MISC1-

AMENDMENTS

1976 - Subsecs. (a), (b). Pub. L. 94-455 struck out "or his

delegate" after "Secretary" wherever appearing.

1970 - Pub. L. 91-258 inserted reference to section 4271 in four

places.

1965 - Subsec. (a). Pub. L. 89-44, Sec. 601(b)(1), (2),

substituted "section 4251 or 4261" for "sections 4231(1), 4231(2),

4231(3), 4241, 4245, 4261, or 4286" and struck out last sentence

which referred to payment outside the United States of taxes

imposed under pars. (1), (2) and (3) of section 4231.

Subsecs. (b) to (d). Pub. L. 89-44, Sec. 601(b)(1), substituted

"section 4251 or 4261" for "section 4231(1), 4231(2), 4231(3),

4241, 4245, 4261, or 4286" wherever appearing.

1958 - Subsec. (a). Pub. L. 85-859 provided that in the case of

any payment outside the United States in respect of which tax is

imposed under par. (1), (2), or (3) of section 4231 of this title,

the person who paid for the admission or for the use of the box or

seat shall be considered the person from whom the tax was

collected.

Subsecs. (a) to (d). Pub. L. 85-475 struck out references to

section 4271.

EFFECTIVE DATE OF 1970 AMENDMENT

Amendment by Pub. L. 91-258 effective July 1, 1970, see section

211(a) of Pub. L. 91-258, set out as a note under section 4041 of

this title.

EFFECTIVE DATE OF 1965 AMENDMENT

Amendment by Pub. L. 89-44 to take effect in a manner consistent

with effective date of change of tax provision to which related,

see section 701(e) of Pub. L. 89-44, set out as a note under

section 6103 of this title.

EFFECTIVE DATE OF 1958 AMENDMENTS

Section 1(c) of Pub. L. 85-859 provided in part that: "Except as

otherwise provided, the amendments and repeals made by title I of

this Act [enacting sections 4057, 4143, 4221 to 4225, and 4294 of

this title, amending chapter 34, this section, and sections 4001,

4003, 4031, 4041, 4053, 4111, 4121, 4141, 4142, 4192, 4216 to 4218,

4231 to 4233, 4263, 4291, 4501, 4601, 6011, 6412, 6416, 6420, 6421,

6501, and 6805 of this title, and repealing section 4112 of this

title and former sections 4143, 4152, 4220 to 4225, and 4316 of

this title] shall take effect on the first day of the first

calendar quarter which begins more than 60 days after the date on

which this Act is enacted [Sept. 2, 1958]."

Section 4(c) of Pub. L. 85-475, as amended by Pub. L. 99-514,

Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:

"(1) Except as provided in paragraph (2), the repeals and

amendments made by subsections (a) and (b) [repealing sections 4271

to 4273 and 4281 to 4283 of this title and amending this section

and sections 4292, 6416, 7012, and 7272 of this title] shall apply

only with respect to amounts paid on or after August 1, 1958.

"(2) In the case of transportation with respect to which the

second sentence of section 4281 of the Internal Revenue Code of

1986 [formerly I.R.C. 1954] applies, the repeals and amendments

made by subsections (a) and (b) [repealing sections 4271 to 4273

and 4281 to 4283 of this title and amending this section and

sections 4292, 6416, 7012, and 7272 of this title] shall apply only

if the transportation begins on or after August 1, 1958."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 9502 of this title.

-End-

-CITE-

26 USC Sec. 6416 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 65 - ABATEMENTS, CREDITS, AND REFUNDS

Subchapter B - Rules of Special Application

-HEAD-

Sec. 6416. Certain taxes on sales and services

-STATUTE-

(a) Condition to allowance

(1) General rule

No credit or refund of any overpayment of tax imposed by

chapter 31 (relating to retail excise taxes), or chapter 32

(manufacturers taxes), shall be allowed or made unless the person

who paid the tax establishes, under regulations prescribed by the

Secretary, that he -

(A) has not included the tax in the price of the article with

respect to which it was imposed and has not collected the

amount of the tax from the person who purchased such article;

(B) has repaid the amount of the tax to the ultimate

purchaser of the article;

(C) in the case of an overpayment under subsection (b)(2) of

this section -

(i) has repaid or agreed to repay the amount of the tax to

the ultimate vendor of the article, or

(ii) has obtained the written consent of such ultimate

vendor to the allowance of the credit or the making of the

refund; or

(D) has filed with the Secretary the written consent of the

person referred to in subparagraph (B) to the allowance of the

credit or the making of the refund.

(2) Exceptions

This subsection shall not apply to -

(A) the tax imposed by section 4041 (relating to tax on

special fuels) on the use of any liquid, and

(B) an overpayment of tax under paragraph (1), (3)(A), (4),

(5), or (6) of subsection (b) of this section.

(3) Special rule

For purposes of this subsection, in any case in which the

Secretary determines that an article is not taxable, the term

"ultimate purchaser" (when used in paragraph (1)(B) of this

subsection) includes a wholesaler, jobber, distributor, or

retailer who, on the 15th day after the date of such

determination, holds such article for sale; but only if claim for

credit or refund by reason of this paragraph is filed on or

before the date for filing the return with respect to the taxes

imposed under chapter 32 for the first period which begins more

than 60 days after the date on such determination.

(4) Wholesale distributors to administer credits and refunds of

gasoline tax

(A) In general

For purposes of this subsection, a wholesale distributor who

purchases any gasoline on which tax imposed by section 4081 has

been paid and who sells the gasoline to its ultimate purchaser

shall be treated as the person (and the only person) who paid

such tax.

(B) Wholesale distributor

For purposes of subparagraph (A), the term "wholesale

distributor" has the meaning given such term by section

4093(b)(2) (determined by substituting "any gasoline taxable

under section 4081" for "aviation fuel" therein). Such term

includes any person who makes retail sales of gasoline at 10 or

more retail motor fuel outlets.

(b) Special cases in which tax payments considered overpayments

Under regulations prescribed by the Secretary, credit or refund

(without interest) shall be allowed or made in respect of the

overpayments determined under the following paragraphs:

(1) Price readjustments

(A) In general

Except as provided in subparagraph (B) or (C), if the price

of any article in respect of which a tax, based on such price,

is imposed by chapter 31 or 32, is readjusted by reason of the

return or repossession of the article or a covering or

container, or by a bona fide discount, rebate, or allowance,

including a readjustment for local advertising (but only to the

extent provided in section 4216(e)(2) and (3)), the part of the

tax proportionate to the part of the price repaid or credited

to the purchaser shall be deemed to be an overpayment.

(B) Further manufacture

Subparagraph (A) shall not apply in the case of an article in

respect of which tax was computed under section 4223(b)(2); but

if the price for which such article was sold is readjusted by

reason of the return or repossession of the article, the part

of the tax proportionate to the part of such price repaid or

credited to the purchaser shall be deemed to be an overpayment.

(C) Adjustment of tire price

No credit or refund of any tax imposed by subsection (a) or

(b) of section 4071 shall be allowed or made by reason of an

adjustment of a tire pursuant to a warranty or guarantee.

(2) Specified uses and resales

The tax paid under chapter 32 (or under subsection (a) or (d)

of section 4041 in respect of sales or under section 4051) in

respect of any article shall be deemed to be an overpayment if

such article was, by any person -

(A) exported;

(B) used or sold for use as supplies for vessels or aircraft;

(C) sold to a State or local government for the exclusive use

of a State or local government;

(D) sold to a nonprofit educational organization for its

exclusive use;

(E) in the case of any tire taxable under section 4071(a),

sold to any person for use as described in section 4221(e)(3);

or

(F) in the case of gasoline, used or sold for use in the

production of special fuels referred to in section 4041.

Subparagraphs (C) and (D) shall not apply in the case of any tax

paid under section 4064. In the case of the tax imposed by

section 4131, subparagraphs (B), (C), and (D) shall not apply and

subparagraph (A) shall apply only if the use of the exported

vaccine meets such requirements as the Secretary may by

regulations prescribe. This paragraph shall not apply in the case

of any tax imposed under section 4041(a)(1) or 4081 on diesel

fuel or kerosene and any tax paid under section 4091 or 4121.

(3) Tax-paid articles used for further manufacture, etc.

If the tax imposed by chapter 32 has been paid with respect to

the sale of any article (other than coal taxable under section

4121) by the manufacturer, producer, or importer thereof and such

article is sold to a subsequent manufacturer or producer before

being used, such tax shall be deemed to be an overpayment by such

subsequent manufacturer or producer if -

(A) in the case of any article other than any fuel taxable

under section 4081 or 4091, such article is used by the

subsequent manufacturer or producer as material in the

manufacture or production of, or as a component part of -

(i) another article taxable under chapter 32, or

(ii) an automobile bus chassis or an automobile bus body,

manufactured or produced by him; or

(B) in the case of any fuel taxable under section 4081 or

4091, such fuel is used by the subsequent manufacturer or

producer, for nonfuel purposes, as a material in the

manufacture or production of any other article manufactured or

produced by him.

(4) Tires

If -

(A) the tax imposed by section 4071 has been paid with

respect to the sale of any tire by the manufacturer, producer,

or importer thereof, and

(B) such tire is sold by any person on or in connection with,

or with the sale of, any other article, such tax shall be

deemed to be an overpayment by such person if such other

article is -

(i) an automobile bus chassis or an automobile bus body, or

(ii) by such person exported, sold to a State or local

government for the exclusive use of a State or local

government, sold to a nonprofit educational organization for

its exclusive use, or used or sold for use as supplies for

vessels or aircraft.

(5) Return of certain installment accounts

If -

(A) tax was paid under section 4216(d)(1) in respect of any

installment account,

(B) such account is, under the agreement under which the

account was sold, returned to the person who sold such account,

and

(C) the consideration is readjusted as provided in such

agreement,

the part of the tax paid under section 4216(d)(1) allocable to

the part of the consideration repaid or credited to the purchaser

of such account shall be deemed to be an overpayment.

(6) Truck chassis, bodies, and semitrailers used for further

manufacture

If -

(A) the tax imposed by section 4051 has been paid with

respect to the sale of any article, and

(B) before any other use, such article is by any person used

as a component part of another article taxable under section

4051 manufactured or produced by him,

such tax shall be deemed to be an overpayment by such person. For

purposes of the preceding sentence, an article shall be treated

as having been used as a component part of another article if,

had it not been broken or rendered useless in the manufacture or

production of such other article, it would have been so used.

This subsection shall apply in respect of an article only if the

exportation or use referred to in the applicable provision of this

subsection occurs before any other use, or, in the case of a sale

or resale, the use referred to in the applicable provision of this

subsection is to occur before any other use.

(c) Refund to exporter or shipper

Under regulations prescribed by the Secretary the amount of any

tax imposed by chapter 31, or chapter 32 erroneously or illegally

collected in respect of any article exported to a foreign country

or shipped to a possession of the United States may be refunded to

the exporter or shipper thereof, if the person who paid such tax

waives his claim to such amount.

(d) Credit on returns

Any person entitled to a refund of tax imposed by chapter 31 or

32, paid to the Secretary may, instead of filing a claim for

refund, take credit therefor against taxes imposed by such chapter

due on any subsequent return. The preceding sentence shall not

apply to the tax imposed by section 4081 in the case of refunds

described in section 4081(e) or to the tax imposed by section 4091

in the case of refunds described in section 4091(d).

(e) Accounting procedures for like articles

Under regulations prescribed by the Secretary, if any person uses

or resells like articles, then for purposes of this section the

manufacturer, producer, or importer of any such article may be

identified, and the amount of tax paid under chapter 32 in respect

of such article may be determined -

(1) on a first-in-first-out basis,

(2) on a last-in-first-out basis, or

(3) in accordance with any other consistent method approved by

the Secretary.

(f) Meaning of terms

For purposes of this section, any term used in this section has

the same meaning as when used in chapter 31, 32, or 33, as the case

may be.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 798; Aug. 11, 1955, ch. 793,

Sec. 2, 69 Stat. 676; Aug. 11, 1955, ch. 805, Secs. 1(h), (i),

2(b), 69 Stat. 690; Apr. 2, 1956, ch. 160, Sec. 2(b)(1), 70 Stat.

90; June 29, 1956, ch. 462, title II, Sec. 208(b), 70 Stat. 393;

Pub. L. 85-475, Sec. 4(b)(5), (6), June 30, 1958, 72 Stat. 260;

Pub. L. 85-859, title I, Sec. 163(a), (c), Sept. 2, 1958, 72 Stat.

1306, 1311; Pub. L. 86-342, title II, Sec. 201(d)(1), Sept. 21,

1959, 73 Stat. 614; Pub. L. 86-418, Sec. 3, Apr. 8, 1960, 74 Stat.

38; Pub. L. 86-781, Sec. 2, Sept. 14, 1960, 74 Stat. 1018; Pub. L.

87-61, title II, Sec. 205(c), (d), June 29, 1961, 75 Stat. 126;

Pub. L. 87-508, Sec. 5(c)(3), June 28, 1962, 76 Stat. 119; Pub. L.

89-44, title II, Sec. 207(c), title VI, Sec. 601(c), title VIII,

Sec. 801(d)(2), June 21, 1965, 79 Stat. 140, 153, 158; Pub. L.

91-258, title II, Secs. 205(b)(3), (4), 207(d)(4)-(7), May 21,

1970, 84 Stat. 242, 248, 249; Pub. L. 91-614, title III, Sec.

302(a), (b), Dec. 31, 1970, 84 Stat. 1845; Pub. L. 92-178, title

IV, Sec. 401(a)(3)(C), (g)(6), Dec. 10, 1971, 85 Stat. 531, 534;

Pub. L. 94-455, title XIX, Secs. 1904(b)(1), (2), 1906(a)(24)(A),

(B)(i), (b)(13)(A), title XXI, Sec. 2108(a), Oct. 4, 1976, 90 Stat.

1815, 1827, 1834, 1904; Pub. L. 95-227, Sec. 2(b)(4), Feb. 10,

1978, 92 Stat. 12; Pub. L. 95-618, title II, Secs. 201(c)(3),

232(b), 233(c)(3), Nov. 9, 1978, 92 Stat. 3184, 3189, 3192; Pub. L.

96-222, title I, Sec. 108(c)(2)(A), (B), (3), (4), Apr. 1, 1980, 94

Stat. 227; Pub. L. 96-596, Sec. 4(c)(1), Dec. 24, 1980, 94 Stat.

3475; Pub. L. 96-598, Sec. 1(a), (b), Dec. 24, 1980, 94 Stat. 3485,

3486; Pub. L. 97-424, title V, Secs. 511(g)(2)(A), 512(b)(2)(C),

(D), 515(b)(4), Jan. 6, 1983, 96 Stat. 2173, 2177, 2181; Pub. L.

98-369, div. A, title VII, Secs. 734(b), (j), 735(c)(13), July 18,

1984, 98 Stat. 978, 980, 984; Pub. L. 99-499, title V, Sec.

521(d)(5), Oct. 17, 1986, 100 Stat. 1780; Pub. L. 100-203, title

IX, Sec. 9201(b)(2), title X, Sec. 10502(d)(6)-(8), Dec. 22, 1987,

101 Stat. 1330-330, 1330-444; Pub. L. 100-647, title II, Sec.

2001(d)(1)(B), title VI, Sec. 6102(a), Nov. 10, 1988, 102 Stat.

3594, 3710; Pub. L. 101-508, title XI, Sec. 11212(d)(2), Nov. 5,

1990, 104 Stat. 1388-432; Pub. L. 103-66, title XIII, Sec.

13242(d)(17)-(19), Aug. 10, 1993, 107 Stat. 524; Pub. L. 104-188,

title I, Sec. 1702(b)(3), Aug. 20, 1996, 110 Stat. 1868; Pub. L.

105-34, title IX, Sec. 905(a), title X, Sec. 1032(e)(6), title XIV,

Sec. 1436(b), Aug. 5, 1997, 111 Stat. 874, 935, 1053; Pub. L.

105-206, title VI, Sec. 6023(23), July 22, 1998, 112 Stat. 826.)

-MISC1-

AMENDMENTS

1998 - Subsec. (b)(5). Pub. L. 105-206 substituted "section

4216(d)(1)" for "section 4216(e)(1)" in subpar. (A) and concluding

provisions.

1997 - Subsec. (a)(4)(B). Pub. L. 105-34, Sec. 905(a), inserted

at end "Such term includes any person who makes retail sales of

gasoline at 10 or more retail motor fuel outlets."

Subsec. (b)(2). Pub. L. 105-34, Sec. 1032(e)(6), inserted "or

kerosene" after "diesel fuel" in concluding provisions.

Subsec. (d). Pub. L. 105-34, Sec. 1436(b), inserted before period

at end "or to the tax imposed by section 4091 in the case of

refunds described in section 4091(d)".

1996 - Subsec. (b)(1)(A). Pub. L. 104-188 substituted "chapter 31

or 32" for "chapter 32 or by section 4051".

1993 - Subsec. (a)(4)(A). Pub. L. 103-66, Sec. 13242(d)(17)(A),

substituted "gasoline" for "product" in two places.

Subsec. (a)(4)(B). Pub. L. 103-66, Sec. 13242(d)(17)(B),

substituted "section 4093(b)(2)" for "section 4092(b)(2)" and "

'any gasoline taxable under section 4081' for 'aviation fuel'

therein)" for " 'any product taxable under section 4081' for 'a

taxable fuel' therein)".

Subsec. (b)(2). Pub. L. 103-66, Sec. 13242(d)(18), inserted "any

tax imposed under section 4041(a)(1) or 4081 on diesel fuel and"

after "This paragraph shall not apply in the case of" in concluding

provisions.

Subsec. (b)(3)(A). Pub. L. 103-66, Sec. 13242(d)(19)(A),

substituted "any fuel taxable under section 4081 or 4091" for

"gasoline taxable under section 4081 and other than any fuel

taxable under section 4091".

Subsec. (b)(3)(B). Pub. L. 103-66, Sec. 13242(d)(19)(B),

substituted "any fuel taxable under section 4081 or 4091, such

fuel" for "gasoline taxable under section 4081 or any fuel taxable

under section 4091, such gasoline or fuel".

1990 - Subsec. (d). Pub. L. 101-508 inserted at end "The

preceding sentence shall not apply to the tax imposed by section

4081 in the case of refunds described in section 4081(e)."

1988 - Subsec. (a)(4). Pub. L. 100-647, Sec. 6102(a), added par.

(4).

Subsec. (b)(2). Pub. L. 100-647, Sec. 2001(d)(1)(B), substituted

"(or under subsection (a) or (d) of section 4041 in respect of

sales or under section 4051)" for "(or under paragraph (1)(A) or

(2)(A) of section 4041(a) or under paragraph (1)(A) or (2)(A) of

section 4041(d) or under section 4051)".

1987 - Subsec. (b)(2). Pub. L. 100-203, Sec. 10502(d)(6), struck

out "(other than coal taxable under section 4121)" after "of any

article" in introductory provisions and inserted at end "This

paragraph shall not apply in the case of any tax paid under section

4091 or 4121."

Pub. L. 100-203, Sec. 9201(b)(2), inserted at end "In the case of

the tax imposed by section 4131, subparagraphs (B), (C), and (D)

shall not apply and subparagraph (A) shall apply only if the use of

the exported vaccine meets such requirements as the Secretary may

by regulations prescribe."

Subsec. (b)(3)(A). Pub. L. 100-203, Sec. 10502(d)(7), inserted

"and other than any fuel taxable under section 4091" after "section

4081".

Subsec. (b)(3)(B). Pub. L. 100-203, Sec. 10502(d)(8), substituted

"or any fuel taxable under section 4091, such gasoline or fuel" for

", such gasoline".

1986 - Subsec. (b)(2). Pub. L. 99-499 inserted "or under

paragraph (1)(A) or (2)(A) of section 4041(d)" after "section

4041(a)".

1984 - Subsec. (a)(1)(C). Pub. L. 98-369, Sec. 734(b)(2)(B)(iii),

struck out ", (b)(3)(C), or (D), or (b)(4)" before "of this

section".

Subsec. (a)(2)(B). Pub. L. 98-369, Secs. 734(b)(1)(B),

(2)(B)(iv), 735(c)(13)(D), substituted "(4), (5), or (6) of

subsection (b)" for "or (B), or (5) of subsection (b)".

Subsec. (a)(3). Pub. L. 98-369, Sec. 734(b)(2)(B)(v), in amending

par. (3) generally, struck out the subpar. (A) designation before

"in any case", substituted a period for "; and" after

"determination", and struck out subpar. (B) which provided that in

applying paragraph (1) to any overpayment under paragraph (2)(F),

(3)(C), or (4) of subsection (b), the term "ultimate vendor" means

the ultimate vendor of the other article.

Subsec. (b)(1)(A). Pub. L. 98-369, Sec. 734(j), inserted "or by

section 4051" after "by chapter 32".

Subsec. (b)(1)(C). Pub. L. 98-369, Sec. 735(c)(13)(A),

substituted "subsection (a) or (b) of section 4071" for "section

4071(a)(1) or (2) or section 4071(b)".

Subsec. (b)(2). Pub. L. 98-369, Sec. 735(c)(13)(B), inserted a

period after "section 4064" at end of flush sentence following

subpar. (F).

Subsec. (b)(2)(A). Pub. L. 98-369, Sec. 735(c)(13)(F), struck out

"(except in any case to which subsection (g) applies)" after

"exported".

Subsec. (b)(2)(E). Pub. L. 98-369, Sec. 735(c)(13)(B), added

subpar. (E).

Pub. L. 98-369, Sec. 734(b)(2)(B)(i), struck out former subpar.

(E) which related to tires or inner tubes resold for use or tread

rubber on recapped or retreaded tires resold for use.

Subsec. (b)(2)(F). Pub. L. 98-369, Sec. 735(c)(13)(B), added

subsec. (F) and struck out former subsec. (F) which related to any

article taxable under section 4061(b) (other than spark plugs and

storage batteries), used or sold for use as repair or replacement

parts or accessories for farm equipment (other than equipment

taxable under section 4061(a).

Subsec. (b)(2)(G) to (M). Pub. L. 98-369, Sec. 735(c)(13)(B),

struck out subpars. (G) through (M) which related to tread rubber,

gasoline, articles used with automobile buses, boxes or containers,

light-duty trucks, tires and inner tubes, recapped tires, and tires

sold for use in connection with qualified buses.

Subsec. (b)(3). Pub. L. 98-369, Sec. 735(c)(13)(C), struck out

provision at end that for purposes of subparagraphs (A) and (B), an

article shall be treated as having been used as a component part of

another article if, had it not been broken or rendered useless in

the manufacture or production of such other article, it would have

been so used.

Subsec. (b)(3)(A). Pub. L. 98-369, Sec. 735(c)(13)(C),

substituted "gasoline taxable under section 4081," for "an article

to which subparagraphs (B), (C), (D), or (E) applies,".

Subsec. (b)(3)(B). Pub. L. 98-369, Sec. 735(c)(13)(C),

substituted "gasoline taxable under section 4081," for "a part or

accessory taxable under section 4061(b)", substituted "gasoline"

for "article", inserted "for nonfuel purposes,", and substituted a

period for a semicolon after "produced by him".

Subsec. (b)(3)(C). Pub. L. 98-369, Sec. 734(b)(2)(B)(ii), struck

out subpar. (C) which related to tires or inner tubes taxable under

section 4071(a) of this title.

Subsec. (b)(3)(D) to (F). Pub. L. 98-369, Sec. 735(c)(13)(C),

struck out subpar. (D) which related to tread rubber in respect of

which tax was paid under section 4071(a)(4) used in recapping or

retreading of a tire, subpar. (E) which related to bicycle tires or

inner tubes used for such a tire, and subpar. (F) which dealt with

gasoline taxable under section 4081. See subpar. (B) for similar

provisions.

Subsec. (b)(4)(A). Pub. L. 98-369, Sec. 734(b)(2)(A), amended

par. (4) generally. Prior to amendment par. (4) provided that if

(A) a tire or inner tube taxable under section 4071, or a recapped

or retreaded tire in respect of which tax under section 4071(a)(4)

was paid on the tread rubber used in the recapping or retreading,

is sold by the manufacturer, producer, or importer thereof on or in

connection with, or with the sale of, any other article

manufactured or produced by him; and (B) such other article is (i)

an automobile bus chassis or an automobile bus body, or (ii) by any

person exported, sold to a State or local government for the

exclusive use of a State or local government, sold to a nonprofit

educational organization for its exclusive use, or used or sold for

use as supplies for vessels or aircraft, any tax imposed by chapter

32 in respect of such tire or inner tube which has been paid by the

manufacturer, producer, or importer thereof shall be deemed to be

an overpayment by him.

Subsec. (b)(6). Pub. L. 98-369, Sec. 734(b)(1)(A), added par.

(6).

Subsec. (c). Pub. L. 98-369, Sec. 735(c)(13)(E), redesignated

subsec. (e) as (c). Former subsec. (c), which related to credit for

tax paid on tires or inner tubes, was struck out.

Subsecs. (d) to (f). Pub. L. 98-369, Sec. 735(c)(13)(E),

redesignated subsecs. (f), (h), and (i), as subsecs. (d), (e), and

(f), respectively. Former subsec. (d) had been previously repealed

and former subsec. (e) was redesignated (c).

Subsec. (g). Pub. L. 98-369, Sec. 735(c)(13)(E), struck out

subsec. (g) which related to trucks, buses, tractors, etc.

Subsecs. (h), (i). Pub. L. 98-369, Sec. 735(c)(13)(E),

redesignated subsecs. (h) and (i) as (e) and (f), respectively.

1983 - Subsec. (a)(1). Pub. L. 97-424, Sec. 512(b)(2)(D),

substituted "chapter 31 (relating to retail excise taxes)" for

"chapter 31 (special fuels)".

Subsec. (b)(2). Pub. L. 97-424, Sec. 511(g)(2)(A), substituted

"paragraph (1)(A) or (2)(A) of section 4041(a)" for "section

4041(a)(1) or (b)(1)" in provision before subpar. (A).

Pub. L. 97-424, Sec. 512(b)(2)(C), inserted "or under section

4051" after "section 4041(a)".

Pub. L. 97-424, Sec. 515(b)(4), struck out subpar. (N) and

provision following subpar. (N) relating to amount of credit or

refund under subpar. (N).

1980 - Subsec. (a)(1)(C). Pub. L. 96-598, Sec. 1(b)(2)(B),

substituted "(b)(3)(C) or (D)" for "(b)(3)(C)".

Subsec. (b)(1). Pub. L. 96-596 designated existing provision in

part as subpar. (A), and in subpar. (A) as so designated, inserted

heading "In general" and substituted "Except as provided in

subparagraph (B) or (C), if the price" for "If the price",

designated existing provision in part as subpar. (B), and in

subpar. (B) as so designated, inserted heading "Further

manufacture" and substituted "Subparagraph (A) shall not" for "The

preceding sentence shall not", and added subpar. (C).

Subsec. (b)(2). Pub. L. 96-222, Sec. 108(c)(3), added subpar. (N)

and provision following subpar. (N) relating to amount of credit or

refund under subpar. (N).

Subsec. (b)(2)(E). Pub. L. 96-598, Sec. 1(b)(2)(A), inserted "(or

in the case of the tread rubber on a recapped or retreaded tire,

resold for use as provided in subparagraph (D) of paragraph (3)),"

after "paragraph (3)".

Subsec. (b)(2)(G). Pub. L. 96-598, Sec. 1(a), inserted provision

making a credit or refund of the tread rubber tax available where

the tread rubber is destroyed, scrapped, wasted, or rendered

useless in the recapping or retreading process, where the tread

rubber is used in the recapping or retreading of a tire if the

sales price of the tire is later adjusted because of a warranty or

guarantee, in which case the overpayment is to be in proportion to

the adjustment in the sales price of such tire, and where the tread

rubber is used in the recapping or retreading of a tire, if such

tire is by any person exported, used or sold for use as supplies

for vessels or aircraft, sold to a State or local government for

the exclusive use of a State or local government, or sold to a

nonprofit educational organization for its exclusive use.

Subsec. (b)(3)(A). Pub. L. 96-598, Sec. 1(b)(2)(C), inserted

"(D)," after "(C),".

Pub. L. 96-222, Sec. 108(c)(4), inserted reference to an

automobile bus chassis or an automobile bus body.

Subsec. (b)(3)(C). Pub. L. 96-222, Sec. 108(c)(2)(A), inserted

reference to an automobile bus chassis or an automobile bus body.

Subsec. (b)(3)(D). Pub. L. 96-598, Sec. 1(b)(1), added subpar.

(D).

Subsec. (b)(4)(A). Pub. L. 96-598, Sec. 1(b)(2)(D), substituted

"section 4071, or a recapped or retreaded tire in respect of which

tax under section 4071(a)(4) was paid on the tread rubber used in

the recapping or retreading," for "section 4071".

Subsec. (b)(4)(B). Pub. L. 96-222, Sec. 108(c)(2)(B), inserted

reference to automobile bus chassis or an automobile bus body.

1978 - Subsec. (b)(2). Pub. L. 95-618 substituted in subpar. (I)

"in the case of any article taxable under section 4061(b), sold for

use by the purchaser on or in connection with an automobile bus"

for "in the case of a bus chasis or body taxable under section

4061(a), sold to any person for use as described in section

4063(a)(6) or 4221(e)(5)" and added subpars. (L) and (M) and

provision following subpar. (M).

Pub. L. 95-227 inserted "(other than coal taxable under section

4121)" after "of any article".

Subsec. (b)(3). Pub. L. 95-227 inserted "(other than coal taxable

under section 4121)" after "of any article".

1976 - Subsec. (a)(1). Pub. L. 94-455, Secs. 1904(b)(1)(A),

1906(b)(13)(A), substituted "(special fuels)" for "(retailers

taxes)", and struck out "or his delegate" after "Secretary".

Subsec. (a)(3). Pub. L. 94-455, Sec. 1906(a)(24)(A), (b)(13)(A),

redesignated subpars. (C) and (D) as (A) and (B), and as so

redesignated, struck out "or his delegate" after "Secretary", in

subpar. (A). Prior subpars. (A) and (B) had been repealed by Pub.

L. 89-44, title VI, Sec. 601(c)(6), June 21, 1965, 79 Stat. 153.

Subsec. (b). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck out "or

his delegate" after "Secretary".

Subsec. (b)(1). Pub. L. 94-455, Sec. 1904(b)(2), substituted

"section 4216(e)(2) and (3)" for "section 4216(f)(2) and (3)".

Subsec. (b)(2)(E). Pub. L. 94-455, Sec. 1906(a)(24)(B)(i),

redesignated subpar. (F) as (E). A prior subpar. (E) had been

repealed by Pub. L. 91-614, title III, Sec. 302(b), Dec. 31, 1970,

84 Stat. 1845.

Subsec. (b)(2)(F). Pub. L. 94-455, Sec. 1906(a)(24)(B)(i),

redesignated subpar. (K) as (F). Former subpar. (F) redesignated

(E).

Subsec. (b)(2)(G). Pub. L. 94-455, Sec. 1906(a)(24)(B)(i),

redesignated subpar. (L) as (G), and struck out former subpar. (G)

respecting consideration as overpayments, tax payments in case of

liquids sold for use as fuel in a diesel-powered highway vehicle or

as fuel for propulsion of motor vehicles, motorboats, or airplanes

and used in other specified ways or resold.

Subsec. (b)(2)(H). Pub. L. 94-455, Sec. 1906(a)(24)(B)(i),

redesignated subpar. (M) as (H), and struck out former subpar. (H)

respecting consideration as overpayments, tax payments in case of

liquids used in vehicles while engaged in furnishing scheduled

common carrier public passenger land transportation services along

regular routes under prescribed conditions.

Subsec. (b)(2)(I). Pub. L. 94-455, Sec. 1906(a)(24)(B)(i),

redesignated subpar. (R) as (I), and struck out former subpar. (I)

respecting consideration as overpayments, tax payments in case of

liquids used or resold for use as fuel in diesel-powered highway

vehicles, which were not registered in any State or foreign country

or were United States owned but not used on the highway.

Subsec. (b)(2)(J). Pub. L. 94-455, Sec. 1906(a)(24)(B)(i),

redesignated subpar. (S) as (J), and struck out former subpar. (J)

respecting consideration as overpayments, tax payments in case of

liquids used or resold, otherwise than as a fuel for propulsion of

highway vehicles, which were registered in any State or foreign

country or were United States owned and used on the highway.

Subsec. (b)(2)(K). Pub. L. 94-455, Sec. 1906(a)(24)(B)(i),

redesignated subpar. (T), added by Pub. L. 94-455, Sec. 2108(a), as

(K). Former subpar. (K) redesignated (F).

Subsec. (b)(2)(L), (M). Pub. L. 94-455, Sec. 1906(a)(2)(B)(i),

redesignated subpars. (L) and (M) as (G) and (H), respectively.

Subsec. (b)(2)(R), (S). Pub. L. 94-455, Sec. 1906(a)(2)(B)(i),

redesignated subpars. (R) and (S) as (I) and (J), respectively.

Subsec. (b)(2)(T). Pub. L. 94-455, Sec. 1906(a)(2)(B)(i),

redesignated subpar. (T), added by Pub. L. 94-455, Sec. 2108(a), as

(K).

Subsec. (c). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck out "or

his delegate" after "Secretary" wherever appearing.

Subsec. (e). Pub. L. 94-455, Sec. 1904(b)(1)(B), struck out

"subchapter E of" before "chapter 31".

Subsecs. (g), (h). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck

out "or his delegate" after "Secretary" wherever appearing.

1971 - Subsec. (b)(2)(R). Pub. L. 92-178, Sec. 401(a)(3)(C)(i),

inserted reference to section 4063(a)(6).

Subsec. (b)(2)(S). Pub. L. 92-178, Sec. 401(a)(3)(C)(ii), added

subpar. (S).

Subsec. (g). Pub. L. 92-178, Sec. 401(g)(6), substituted "Trucks,

buses, tractors, etc." for "Automobiles, etc." in heading.

1970 - Subsec. (a)(2)(A). Pub. L. 91-258, Sec. 205(b)(3),

substituted "section 4041 (relating to tax on special fuels)" for

"section 4041(a)(2) or (b)(2) (use of diesel and special motor

fuels)".

Subsec. (b)(2)(E). Pub. L. 91-614, Sec. 302(b), struck out

subpar. (E) providing that the tax paid under chapter 32 (or under

section 4041(a)(1) or (b)(1)) in respect of any article is deemed

an overpayment if such article was resold by any person to a

manufacturer or producer for use by him as provided in subsec.

(b)(3)(A), (B), (E) or (F).

Subsec. (b)(2)(G). Pub. L. 91-258, Sec. 207(d)(4), inserted

"before July 1, 1970" after "if".

Subsec. (b)(2)(H). Pub. L. 91-258, Sec. 207(d)(5), inserted

"beginning before July 1, 1970," after "during any calendar

quarter".

Subsec. (b)(2)(I), (J). Pub. L. 91-258, Sec. 207(d)(6), (7),

inserted "before July 1, 1970," after "used or resold for use".

Subsec. (b)(2)(M). Pub. L. 91-258, Sec. 205(b)(4), substituted

"use in the production of special fuels referred to in section

4041" for "use in production of special motor fuels referred to in

section 4041(b)".

Subsec. (b)(3). Pub. L. 91-614, Sec. 302(a)(1)(A), substituted

"and such article is sold to a subsequent manufacturer or producer

before being used, such tax shall be deemed to be an overpayment by

such subsequent manufacturer or producer if" for "to a second

manufacturer or producer, such tax shall be deemed to be an

overpayment by such second manufacturer or producer if".

Subsec. (b)(3)(A) to (C), (E), (F). Pub. L. 91-614, Sec.

302(a)(1)(B), substituted "the subsequent manufacturer" for "the

second manufacturer".

Subsec. (c). Pub. L. 91-614, Sec. 302(a)(2), struck out provision

providing that the credit for tax paid on tires or inner tubes is

allowable only in respect of the first sale on or in connection

with, or with the sale of, another article on the sale of which tax

is imposed under chapter 32 of this title.

1965 - Subsec. (a)(1). Pub. L. 89-44, Sec. 601(c)(1), struck out

"section 4231(4), (5), or (6) (cabarets, etc.)," from material

preceding subpar. (A).

Subsec. (a)(1)(A). Pub. L. 89-44, Sec. 601(c)(2), struck out

"admission, or service" after "article" each place it appears.

Subsec. (a)(1)(B). Pub. L. 89-44, Sec. 601(c)(3), struck out (i),

(ii), and (iii) which dealt specifically with taxes imposed by

sections 4041(a)(1) or (b)(1), 4231(4), (5), or (6) (cabarets,

etc.), and chapters 31 and 32, and amended the subpar. to simply

require that the person has repaid the amount of the tax to the

ultimate purchaser of the article.

Subsec. (a)(1)(C). Pub. L. 89-44, Sec. 601(c)(4), struck out "or

(D)" after "(b)(3)(C)".

Subsec. (a)(1)(D). Pub. L. 89-44, Sec. 601(c)(5), struck out

"(1), (ii), or (iii), as the case may be," after "subparagraph

(B)".

Subsec. (a)(3)(A), (B). Pub. L. 89-44, Sec. 601(c)(6), struck out

subpars. (A) and (B).

Subsec. (a)(3)(C). Pub. L. 89-44, Sec. 601(c)(6), struck out

"(ii)" after "paragraph (1)(B)".

Subsec. (a)(3)(D). Pub. L. 89-44, Sec. 601(c)(6), struck out "or

(D)" after "paragraph (2)(F), (3)(C)".

Subsec. (b)(1). Pub. L. 89-44, Sec. 601(c)(7), struck out "31 or"

after "imposed by chapter" and "(in the case of a tax imposed by

chapter 32)" after "or allowance, including".

Subsec. (b)(2)(F). Pub. L. 89-44, Sec. 601(c)(8), struck out

reference to receiving sets resold for use and struck out reference

to subparagraph (D) of paragraph (3).

Subsec. (b)(2)(N) to (Q). Pub. L. 89-44, Sec. 601(c)(9), struck

out subpars. (N) to (Q).

Subsec. (b)(2)(R). Pub. L. 89-44, Sec. 801(d)(2), added subpar.

(R).

Subsec. (b)(3)(A). Pub. L. 89-44, Sec. 601(c)(10), struck out

"(D)," after "subparagraph (B), (C),".

Subsec. (b)(3)(B). Pub. L. 89-44, Sec. 601(c)(10), struck out

references to radio and television components taxable under section

4141 and camera lenses taxable under section 4171.

Subsec. (b)(3)(C). Pub. L. 89-44, Sec. 601(c)(10), struck out

reference to automobile radios or television receiving sets taxable

under section 4141.

Subsec. (b)(3)(D). Pub. L. 89-44, Sec. 601(c)(10), struck out

subpar. (D) which related to radio receiving sets or automobile

receiving sets.

Subsec. (b)(4). Pub. L. 89-44, Sec. 601(c)(11), struck out all

references to automobile radio or television receiving sets taxable

under section 4141.

Subsec. (b)(5). Pub. L. 89-44, Secs. 207(c), 601(c)(12),

substituted "allocable" for "proportionate" and struck out

"4053(b)(1) or" before "4216(e)(1)" wherever appearing.

Subsec. (c). Pub. L. 89-44, Sec. 601(c)(13), struck out

references to automobile radio or television receiving sets.

Subsec. (d). Pub. L. 89-44, Sec. 601(c)(14), struck out subsec.

(d) which related to mechanical pencils taxable as jewelry.

Subsec. (g). Pub. L. 89-44, Sec. 601(c)(15), substituted "section

4061(a)" for "sections 4061(a), 4111, 4121, 4141,".

1962 - Subsec. (b)(2)(H). Pub. L. 87-508 substituted "commuter

fare revenue" for "tax-exempt passenger fare revenue" and struck

out "(not including the tax imposed by section 4261, relating to

the tax on transportation of persons)" after "total passenger fare

revenue".

1961 - Subsec. (b)(2)(E). Pub. L. 87-61, Sec. 205(d), inserted

reference to subpar. (F) of par. (3).

Subsec. (b)(3)(F). Pub. L. 87-61, Sec. 205(c), added subpar. (F).

1960 - Subsec. (b)(1). Pub. L. 86-781 inserted "including (in the

case of a tax imposed by chapter 32) a readjustment for local

advertising (but only to the extent provided in section 4216(f)(2)

and (3),)" after "or allowance,".

Subsec. (b)(2)(E). Pub. L. 86-418, Sec. 3(a), substituted

"subparagraph (A), (B), or (E)" for "subparagraph (A) or (B)".

Subsec. (b)(3)(A). Pub. L. 86-418, Sec. 3(b)(1), substituted

"subparagraph (B), (C), (D), or (E)" for "subparagraph (B), (C), or

(D)".

Subsec. (b)(3)(E). Pub. L. 86-418, Sec. 3(b)(2), added subpar.

(E).

1959 - Subsec. (b)(2)(H). Pub. L. 86-342, Sec. 201(d)(1)(A), (B),

substituted "at the rate of 3 cents or 4 cents a gallon" for "at

the rate of 3 cents a gallon", and "1 cent (where tax was paid at

the 3-cent rate) or 2 cents (where tax was paid at the 4-cent rate)

for each gallon" for "1 cent for each gallon".

Subsec. (b)(2)(I), (J). Pub. L. 86-342, Sec. 201(d)(1)(A), (C),

substituted "at the rate of 3 cents or 4 cents a gallon" for "at

the rate of 3 cents a gallon", and "at the rate of 1 cent a gallon

where tax was paid at the 3-cent rate or at the rate of 2 cents a

gallon where tax was paid at the 4-cent rate" for "at the rate of 1

cent a gallon".

1958 - Subsec. (a) amended generally by Pub. L. 85-859, Sec.

163(a), to make section applicable to taxes imposed by pars. (4)

and (5) of section 4231, to permit credit or refund of the cabaret

tax where the person has repaid the amount of the tax or has filed

a written consent to the allowance of the credit or the making of

the refund, and to establish special rules for taxes collected

under section 4231(6) from a concessionaire, taxes under chapter 31

paid by a supplier, and defining "ultimate purchaser" and "ultimate

vendor".

Subsec. (a). Pub. L. 85-475, Sec. 4(b)(5), struck out reference

to section 4281.

Subsec. (b)(1). Pub. L. 85-859, Sec. 163(a), made price

readjustment provisions inapplicable in the case of an article in

respect of which tax was computed under section 4223(b)(2), but if

the price for which such article was sold is readjusted by reason

of the return or repossession of the article, the part of the tax

proportionate to the part of such price repaid or credited to the

purchaser shall be deemed to be an overpayment.

Subsec. (b)(2) amended generally by Pub. L. 85-859, Sec. 163(a),

to consider as overpayments taxes paid in respect of any articles

which were, by any person, exported, resold to a manufacturer or

producer for use by him as provided in subpar. (A) or (B) of par.

(3), resold for use, in the case of a tire, inner tube, or

receiving set, as provided in subpar. (C) or (D) of par. (3) and

the other article referred to in such paragraph is by any person

exported or sold as provided in such paragraph, and to eliminate

provisions which excluded leaf springs, coils, timers, and tire

chains in the case of articles taxable under section 4061(b).

Subsec. (b)(3) amended generally by Pub. L. 85-859, Sec. 163(a),

to consider as overpayments taxes paid in the case of tires or

inner tubes taxable under section 4071 and automobile radio or

television receiving sets taxable under section 4141 where the

articles are resold in certain particular cases, and taxes paid in

the case of radio receiving sets or automobile radio receiving sets

which are used by the manufacturer or producer as component parts

of any other article manufactured or produced by him, and are

exported or sold in certain particular cases, and to provide that

for purposes of subpars. (A) and (B) an article shall be treated as

having been used as a component part of another article if, had it

not been broken or rendered useless in the manufacture or

production of such other article, it would have been so used.

Subsec. (b)(4), (5). Pub. L. 85-859, Sec. 163(a), added pars. (4)

and (5).

Subsec. (c). Pub. L. 85-859, Sec. 163(a), authorized a credit

with respect to tires, inner tubes, or automobile radio or

television receiving sets which are sold on or in connection with,

or with the sale of, another article taxable under chapter 32, and

permitted the credit only in respect of the first sale on or in

connection with, or with the sale of, another article on the sale

of which tax is imposed under chapter 32.

Subsec. (f). Pub. L. 85-475, Sec. 4(b)(6), struck out reference

to section 4281.

Subsecs. (g) to (i). Pub. L. 85-859, Sec. 163(c), added subsecs.

(g) to (i).

1956 - Subsec. (b)(2)(C). Act Apr. 2, 1956, included liquid used

on a farm for farming purposes.

Subsec. (b)(2)(J) to (M). Act June 29, 1956, added subpars. (J)

to (M).

1955 - Subsec. (b)(2)(G). Act Aug. 11, 1955, ch. 805, Sec. 2(b),

repealed subpar. (G) relating to credit for communication,

detection, and navigation receivers when sold to the United States

Government.

Subsec. (b)(2)(I). Act Aug. 11, 1955, ch. 793, added subpar. (I).

Subsec. (b)(3)(A). Act Aug. 11, 1955, ch. 805, Sec. 1(h),

inserted "and other than an automobile part or accessory taxable

under section 4061(b), a refrigerator component taxable under

section 4111, a radio or television component taxable under section

4141, or a camera lens taxable under section 4171" after "section

4141".

Subsec. (b)(3)(B). Act Aug. 11, 1955, ch. 805, Sec. 1(i),

substituted provisions allowing a credit for automobile parts or

accessories, refrigerator, radio, or television components, or

camera lenses taxable under sections 4061(b), 4111, 4141, or 4171,

respectively, of this title, for provisions allowing a credit for

radio and television components purchased and used by a producer in

the manufacture of communication, detection, or navigation

receivers in commercial, military, or marine installations if such

receivers were sold to the United States.

EFFECTIVE DATE OF 1997 AMENDMENT

Section 905(b) of Pub. L. 105-34 provided that: "The amendment

made by subsection (a) [amending this section] shall apply to sales

after the date of the enactment of this Act [Aug. 5, 1997]."

Amendment by section 1032(e)(6) of Pub. L. 105-34 effective July

1, 1998, see section 1032(f)(1) of Pub. L. 105-34, as amended, set

out as a note under section 4041 of this title.

Amendment by section 1436(b) of Pub. L. 105-34 applicable to fuel

acquired by producer after Sept. 30, 1997, see section 1436(c) of

Pub. L. 105-34, set out as a note under section 4091 of this title.

EFFECTIVE DATE OF 1996 AMENDMENT

Amendment by Pub. L. 104-188 effective, except as otherwise

expressly provided, as if included in the provision of the Revenue

Reconciliation Act of 1990, Pub. L. 101-508, title XI, to which

such amendment relates, see section 1702(i) of Pub. L. 104-188, set

out as a note under section 38 of this title.

EFFECTIVE DATE OF 1993 AMENDMENT

Amendment by Pub. L. 103-66 effective Jan. 1, 1994, see section

13242(e) of Pub. L. 103-66, set out as a note under section 4041 of

this title.

EFFECTIVE DATE OF 1990 AMENDMENT

Amendment by Pub. L. 101-508 effective July 1, 1991, see section

11212(f)(1) of Pub. L. 101-508, set out as a note under section

4081 of this title.

EFFECTIVE DATE OF 1988 AMENDMENT

Amendment by section 2001(d)(1)(B) of Pub. L. 100-647 effective,

except as otherwise provided, as if included in the provision of

the Superfund Revenue Act of 1986, Pub. L. 99-499, title V, to

which it relates, see section 2001(e) of Pub. L. 100-647, set out

as a note under section 56 of this title.

Section 6102(b) of Pub. L. 100-647 provided that: "The amendment

made by this section [amending this section] shall apply to fuel

sold by wholesale distributors (as defined in section 6416(a)(4)(B)

of the 1986 Code, as added by this section) after September 30,

1988."

EFFECTIVE DATE OF 1987 AMENDMENT

Amendment by section 9201(b)(2) of Pub. L. 100-203 effective Jan.

1, 1988, see section 9201(d) of Pub. L. 100-203, set out as an

Effective Date note under section 4131 of this title.

Amendment by section 10502(d)(6)-(8) of Pub. L. 100-203

applicable to sales after Mar. 31, 1988, see section 10502(e) of

Pub. L. 100-203, set out as a note under section 40 of this title.

EFFECTIVE DATE OF 1986 AMENDMENT

Amendment by Pub. L. 99-499 effective Jan. 1, 1987, see section

521(e) of Pub. L. 99-499, set out as a note under section 4041 of

this title.

EFFECTIVE DATE OF 1984 AMENDMENT

Amendment by Pub. L. 98-369 effective, except as otherwise

provided, as if included in the provisions of the Highway Revenue

Act of 1982, title V of Pub. L. 97-424, to which such amendment

relates, see section 736 of Pub. L. 98-369, set out as a note under

section 4051 of this title.

EFFECTIVE DATE OF 1983 AMENDMENT

Amendment by section 511(g)(2)(A) of Pub. L. 97-424 effective

Apr. 1, 1983, see section 511(h)(1) of Pub. L. 97-424, set out as a

note under section 4041 of this title.

Amendment by section 512(b)(2)(C), (D) of Pub. L. 97-424

effective Apr. 1, 1983, see section 512(b)(3) of Pub. L. 97-424,

set out as a note under section 4051 of this title.

Amendment by section 515(b)(4) of Pub. L. 97-424 applicable with

respect to articles sold after Jan. 6, 1983, see section 515(c) of

Pub. L. 97-424, set out as a note under section 34 of this title.

EFFECTIVE DATE OF 1980 AMENDMENTS

Amendment by Pub. L. 96-598 effective on first day of first

calendar month which begins more than 10 days after Dec. 24, 1980,

see section 1(e) of Pub. L. 96-598, set out as a note under section

4071 of this title.

Section 4(c)(2) of Pub. L. 96-596 provided that: "The amendments

made by this subsection [amending this section] shall apply to the

adjustments of any tire after December 31, 1982."

Amendment by Pub. L. 96-222 effective as if included in the

provisions of the Energy Tax Act of 1978, Pub. L. 95-618, to which

such amendment relates, see section 108(c)(7) of Pub. L. 96-222,

set out as a note under section 48 of this title.

EFFECTIVE DATE OF 1978 AMENDMENTS

Amendment by section 201(c)(3) of Pub. L. 95-618 applicable with

respect to 1980 and later model year automobiles, see section

201(g) of Pub. L. 95-618, set out as an Effective Date note under

section 4064 of this title.

Amendment by section 232(b) of Pub. L. 95-618 applicable to sales

on or after day of first calendar month beginning more than 10 days

after Nov. 9, 1978, see section 232(c) of Pub. L. 95-618, set out

as a note under section 4221 of this title.

Amendment by section 233(c)(3) of Pub. L. 95-618 effective on

first day of first calendar month which begins more than 10 days

after Nov. 9, 1978, see section 233(d) of Pub. L. 95-618, set out

as a note under section 34 of this title.

Amendment by Pub. L. 95-227 applicable with respect to sales

after Mar. 31, 1978, see section 2(d) of Pub. L. 95-227, set out as

an Effective Date note under section 4121 of this title.

EFFECTIVE DATE OF 1976 AMENDMENT

Amendment by section 1904(b)(1), (2) of Pub. L. 94-455 effective

on first day of first month which begins more than 90 days after

Oct. 4, 1976, see section 1904(d) of Pub. L. 94-455, set out as a

note under section 4041 of this title.

Amendment by section 1906(a)(24)(A), (b)(13)(A) of Pub. L. 94-455

effective on first day of first month which begins more than 90

days after Oct. 4, 1976, see section 1906(d)(1) of Pub. L. 94-455,

set out as a note under section 6013 of this title.

Section 1906(a)(24)(B)(ii) of Pub. L. 94-455 provided that: "The

repeals made by clause (i) [amending this section] shall apply with

respect to the use or resale for use of liquids after December 31,

1976."

Section 2108(b) of Pub. L. 94-455 provided that: "The amendment

made by this section [amending this section] shall apply to parts

and accessories sold after the date of the enactment of this Act

[Oct. 4, 1976]."

EFFECTIVE DATE OF 1971 AMENDMENT

Amendment by Pub. L. 92-178 applicable with respect to articles

sold on or after day after Dec. 10, 1971, see section 401(h)(1) of

Pub. L. 92-178, set out as a note under section 4071 of this title.

EFFECTIVE DATE OF 1970 AMENDMENTS

Section 302(c) of Pub. L. 91-614 provided that: "The amendments

made by subsections (a) and (b) of this section [amending this

section] shall apply only with respect to claims for credit or

refund filed after the date of the enactment of this Act [Dec. 31,

1970], but only if the filing of the claim is not barred on the day

after the date of the enactment of this Act by any law or rule of

law."

Amendment by Pub. L. 91-258 effective on July 1, 1970, see

section 211(a) of Pub. L. 91-258, set out as a note under section

4041 of this title.

EFFECTIVE DATE OF 1965 AMENDMENT

Amendment by section 207(c) of Pub. L. 89-44 effective June 22,

1965, see section 701(a) of Pub. L. 89-44, set out as an Effective

Date of 1965 Amendment note under section 4161 of this title.

Amendment by section 601(c) of Pub. L. 89-44 to take effect in a

manner consistent with effective date of change of tax provisions

to which related, see section 701(e) of Pub. L. 89-44, set out as a

note under section 6103 of this title.

Amendment by section 801(d)(2) applicable with respect to

articles sold on or after June 22, 1965, see section 801(e) of Pub.

L. 89-44, set out as a note under section 4216 of this title.

EFFECTIVE DATE OF 1962 AMENDMENT

Section 5(d) of Pub. L. 87-508 provided in part that: "The

amendments made by subsection (c)(3) [amending this section] shall

apply only in respect to the use or sale of special fuels made on

or after November 16, 1962."

EFFECTIVE DATE OF 1961 AMENDMENT

Amendment by Pub. L. 87-61 applicable only in the case of

gasoline sold on or after Oct. 1, 1961, see section 208 of Pub. L.

87-61, set out as a note under section 4041 of this title.

EFFECTIVE DATE OF 1960 AMENDMENTS

Amendment by Pub. L. 86-781 applicable with respect to articles

sold on or after first day of first calendar quarter beginning more

than twenty days after Sept. 14, 1960, see section 3 of Pub. L.

86-781, set out as a note under section 4216 of this title.

Amendment by Pub. L. 86-418 applicable only with respect to

bicycle tires and tubes sold by the manufacturer, producer, or

importer thereof on or after first day of first month which begins

more than 10 days after Apr. 8, 1960, see section 4 of Pub. L.

86-418, set out as a note under section 4221 of this title.

EFFECTIVE DATE OF 1958 AMENDMENTS

Section 163(b) of Pub. L. 85-859, as amended by Pub. L. 99-514,

Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that: "Section

6416(b) of the Internal Revenue Code of 1986 [formerly I.R.C.

1954], as amended by this Act, shall apply only with respect to

articles exported, sold, or resold, as the case may be, on or after

the effective date specified in section 1(c) of this Act [set out

as a note under section 6415 of this title]."

For effective date of amendment by Pub. L. 85-475, see section

4(c) of Pub. L. 85-475, set out as a note under section 6415 of

this title.

EFFECTIVE DATE OF 1956 AMENDMENTS

Amendment by act June 29, 1956, effective June 29, 1956, see

section 211 of act June 29, 1956, set out as a note under section

4041 of this title.

Act Apr. 2, 1956, Sec. 2(b)(2), provided that: "The amendment

made by paragraph (1) [amending this section] shall apply with

respect to liquid sold after December 31, 1955."

EFFECTIVE DATE OF 1955 AMENDMENTS

Section 3 of act Aug. 11, 1955, ch. 805, as amended by Oct. 22,

1986, Pub. L. 99-514, Sec. 2, 100 Stat. 2095, provided that: "The

amendments made by the first section and section 2 of this Act

[amending this section and sections 4091 and 4092 of this title]

shall take effect on the first day of the first month which begins

more than ten days after the date of the enactment of this Act

[Aug. 11, 1955]. Notwithstanding the preceding sentence -

"(1) the repeal of section 6416(b)(2)(G) of the Internal

Revenue Code of 1986 [formerly I.R.C. 1954] shall apply only with

respect to articles sold by the manufacturer, producer, or

importer on or after the first day of the first month which

begins more than 10 days after the date of the enactment of this

Act [Aug. 11, 1955], and

"(2) section 6416(b)(3)(B) of the Internal Revenue Code of

1986, as amended by subsection (i) of the first section of this

Act [Aug. 11, 1955], shall apply with respect to articles used on

or after such first day by the manufacturer or producer as

material in the manufacture of, production of, or as a component

part of, another article."

Section 3 of act Aug. 11, 1955, ch. 793, provided that: "The

amendments made by this Act [amending this section and sections

4091 and 4092 of this title] shall take effect on the first day of

the first calendar quarter which begins more than ten days after

the date of the enactment of this Act [Aug. 11, 1955]".

OVERPAYMENT OF TAX ON CERTAIN RADIO RECEIVING SETS AND RADIO AND

TELEVISION COMPONENTS

Section 163(e) of Pub. L. 85-859, as amended by Pub. L. 99-514,

Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that: "If -

"(1) a radio receiving set, an automobile radio receiving set,

or a radio or television component was (before any other use)

used as a component part of any other article, and

"(2) such other article was (before any other use) by any

person exported, or sold to a State or local government for the

exclusive use of a State or local government,

then any tax imposed by chapter 32 of the Internal Revenue Code of

1986 [formerly I.R.C. 1954] (or the corresponding provisions of

prior revenue law) in respect of such set or component which has

been paid shall be deemed to have been an overpayment, by the

manufacturer, producer, or importer of such other article, at the

time paid. No credit or refund shall be allowed or made under this

subsection unless the manufacturer, producer, or importer of such

other article establishes to the satisfaction of the Secretary of

the Treasury or his delegate that he did not include the amount of

the tax in the price of such other article (and has not collected

the amount of the tax from the purchaser of such other article),

that the amount of the tax has been repaid to the ultimate

purchaser of such other article, or that he has obtained the

written consent of such ultimate purchaser to the allowance of the

credit or the making of the refund. No interest shall be allowed or

paid in respect of any such overpayment."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 4064, 4216, 6427, 6612,

7851, 9510 of this title.

-End-

-CITE-

26 USC [Sec. 6417 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 65 - ABATEMENTS, CREDITS, AND REFUNDS

Subchapter B - Rules of Special Application

-HEAD-

[Sec. 6417. Repealed. Pub. L. 94-455, title XIX, Sec. 1906(a)(25),

Oct. 4, 1976, 90 Stat. 1827]

-MISC1-

Section, act Aug. 16, 1954, ch. 736, 68A Stat. 801, related to a

tax credit or refund to any person who has sold to a State, or a

political subdivision thereof, any article containing any oil,

combination, or mixture, upon the processing of which a tax has

been paid under former section 4511, and to a refund to the

exporter of the tax paid under former subchapter B of chapter 37.

EFFECTIVE DATE OF REPEAL

Repeal effective on first day of first month which begins more

than 90 days after Oct. 4, 1976, see section 1906(d)(1) of Pub. L.

94-455, set out as an Effective Date of 1976 Amendment note under

section 6013 of this title.

-End-

-CITE-

26 USC [Sec. 6418 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 65 - ABATEMENTS, CREDITS, AND REFUNDS

Subchapter B - Rules of Special Application

-HEAD-

[Sec. 6418. Repealed. Pub. L. 101-508, title XI, Sec.

11801(c)(22)(B)(i), Nov. 5, 1990, 104 Stat. 1388-528]

-MISC1-

Section, acts Aug. 16, 1954, ch. 736, 68A Stat. 801; May 29,

1956, ch. 342, Sec. 21(b), 70 Stat. 221; May 24, 1962, Pub. L.

87-456, title III, Sec. 302(c), 76 Stat. 77; Nov. 8, 1965, Pub. L.

89-331, Sec. 9(b), 79 Stat. 1278; Oct. 4, 1976, Pub. L. 94-455,

title XIX, Sec. 1906(b)(13)(A), 90 Stat. 1834, authorized refund of

taxes paid on sugar used as livestock feed, for distillation or

production of alcohol, or in certain cases where sugar was

exported.

SAVINGS PROVISION

For provisions that nothing in repeal by Pub. L. 101-508 be

construed to affect treatment of certain transactions occurring,

property acquired, or items of income, loss, deduction, or credit

taken into account prior to Nov. 5, 1990, for purposes of

determining liability for tax for periods ending after Nov. 5,

1990, see section 11821(b) of Pub. L. 101-508, set out as a note

under section 29 of this title.

-End-

-CITE-

26 USC Sec. 6419 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 65 - ABATEMENTS, CREDITS, AND REFUNDS

Subchapter B - Rules of Special Application

-HEAD-

Sec. 6419. Excise tax on wagering

-STATUTE-

(a) Credit or refund generally

No overpayment of tax imposed by chapter 35 shall be credited or

refunded (otherwise than under subsection (b)), in pursuance of a

court decision or otherwise, unless the person who paid the tax

establishes, in accordance with regulations prescribed by the

Secretary, (1) that he has not collected (whether as a separate

charge or otherwise) the amount of the tax from the person who

placed the wager on which the tax was imposed, or (2) that he has

repaid the amount of the tax to the person who placed such wager,

or unless he files with the Secretary written consent of the person

who placed such wager to the allowance of the credit or the making

of the refund. In the case of any laid-off wager, no overpayment of

tax imposed by chapter 35 shall be so credited or refunded to the

person with whom such laid-off wager was placed unless he

establishes, in accordance with regulations prescribed by the

Secretary, that the provisions of the preceding sentence have been

complied with both with respect to the person who placed the

laid-off wager with him and with respect to the person who placed

the original wager.

(b) Credit or refund on wagers laid-off by taxpayer

Where any taxpayer lays off part or all of a wager with another

person who is liable for tax imposed by chapter 35 on the amount so

laid off, a credit against such tax shall be allowed, or a refund

shall be made to, the taxpayer laying off such amount. Such credit

or refund shall be in an amount which bears the same ratio to the

amount of tax which such taxpayer paid on the original wager as the

amount so laid off bears to the amount of the original wager.

Credit or refund under this subsection shall be allowed or made

only in accordance with regulations prescribed by the Secretary,

and no interest shall be allowed with respect to any amount so

credited or refunded.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 801; Pub. L. 94-455, title XIX,

Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.)

-MISC1-

AMENDMENTS

1976 - Subsecs. (a), (b). Pub. L. 94-455 struck out "or his

delegate" after "Secretary".

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 6612 of this title.

-End-

-CITE-

26 USC Sec. 6420 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 65 - ABATEMENTS, CREDITS, AND REFUNDS

Subchapter B - Rules of Special Application

-HEAD-

Sec. 6420. Gasoline used on farms

-STATUTE-

(a) Gasoline

Except as provided in subsection (g), if gasoline is used on a

farm for farming purposes, the Secretary shall pay (without

interest) to the ultimate purchaser of such gasoline the amount

determined by multiplying -

(1) the number of gallons so used, by

(2) the rate of tax on gasoline under section 4081 which

applied on the date he purchased such gasoline.

(b) Time for filing claims; period covered

Not more than one claim may be filed under this section by any

person with respect to gasoline used during his taxable year, and

no claim shall be allowed under this section with respect to

gasoline used during any taxable year unless filed by such person

not later than the time prescribed by law for filing a claim for

credit or refund of overpayment of income tax for such taxable

year. For purposes of this subsection, a person's taxable year

shall be his taxable year for purposes of subtitle A.

(c) Meaning of terms

For purposes of this section -

(1) Use on a farm for farming purposes

Gasoline shall be treated as used on a farm for farming

purposes only if used (A) in carrying on a trade or business, (B)

on a farm situated in the United States, and (C) for farming

purposes.

(2) Farm

The term "farm" includes stock, dairy, poultry, fruit,

fur-bearing animal, and truck farms, plantations, ranches,

nurseries, ranges, greenhouses or other similar structures used

primarily for the raising of agricultural or horticultural

commodities, and orchards.

(3) Farming purposes

Gasoline shall be treated as used for farming purposes only if

used -

(A) by the owner, tenant, or operator of a farm, in

connection with cultivating the soil, or in connection with

raising or harvesting any agricultural or horticultural

commodity, including the raising, shearing, feeding, caring

for, training, and management of livestock, bees, poultry, and

fur-bearing animals and wildlife, on a farm of which he is the

owner, tenant, or operator;

(B) by the owner, tenant, or operator of a farm, in handling,

drying, packing, grading, or storing any agricultural or

horticultural commodity in its unmanufactured state; but only

if such owner, tenant or operator produced more than one-half

of the commodity which he so treated during the period with

respect to which claim is filed;

(C) by the owner, tenant, or operator of a farm, in

connection with -

(i) the planting, cultivating, caring for, or cutting of

trees, or

(ii) the preparation (other than milling) of trees for

market,

incidental to farming operations; or

(D) by the owner, tenant, or operator of a farm, in

connection with the operation, management, conservation,

improvement, or maintenance of such farm and its tools and

equipment.

(4) Certain farming use other than by owner, etc.

In applying paragraph (3)(A) to a use on a farm for any purpose

described in paragraph (3)(A) by any person other than the owner,

tenant, or operator of such farm -

(A) the owner, tenant, or operator of such farm shall be

treated as the user and ultimate purchaser of the gasoline,

except that

(B) if -

(i) the person so using the gasoline is an aerial or other

applicator of fertilizers or other substances and is the

ultimate purchaser of the gasoline, and

(ii) the person described in subparagraph (A) waives (at

such time and in such form and manner as the Secretary shall

prescribe) his right to be treated as the user and ultimate

purchaser of the gasoline,

then subparagraph (A) of this paragraph shall not apply and the

aerial or other applicator shall be treated as having used such

gasoline on a farm for farming purposes.

(5) Gasoline

The term "gasoline" has the meaning given to such term by

section 4083(a).

(d) Exempt sales; other payments or refunds available

No amount shall be payable under this section with respect to any

gasoline which the Secretary determines was exempt from the tax

imposed by section 4081. The amount which (but for this sentence)

would be payable under this section with respect to any gasoline

shall be reduced by any other amount which the Secretary determines

is payable under this section, or is refundable under any provision

of this title, to any person with respect to such gasoline.

(e) Applicable laws

(1) In general

All provisions of law, including penalties, applicable in

respect of the tax imposed by section 4081 shall, insofar as

applicable and not inconsistent with this section, apply in

respect of the payments provided for in this section to the same

extent as if such payments constituted refunds of overpayments of

the tax so imposed.

(2) Examination of books and witnesses

For the purpose of ascertaining the correctness of any claim

made under this section, or the correctness of any payment made

in respect of any such claim, the Secretary shall have the

authority granted by paragraphs (1), (2), and (3) of section

7602(a) (relating to examination of books and witnesses) as if

the claimant were the person liable for tax.

(3) Fractional parts of a dollar

Section 7504 (granting the Secretary discretion with respect to

fractional parts of a dollar) shall not apply.

(f) Regulations

The Secretary may by regulations prescribe the conditions, not

inconsistent with the provisions of this section, under which

payments may by made under this section.

(g) Income tax credit in lieu of payment

(1) Persons not subject to income tax

Payment shall be made under subsection (a), only to -

(A) the United States or an agency or instrumentality

thereof, a State, a political subdivision of a State, or an

agency or instrumentality of one or more States or political

subdivisions, or

(B) an organization exempt from tax under section 501(a)

(other than an organization required to make a return of the

tax imposed under subtitle A for its taxable year).

(2) Allowance of credit against income tax

For allowance of credit against the tax imposed by subtitle

A, see section 34.

[(h) Repealed. Pub. L. 103-66, title XIII, Sec. 13241(f)(5), Aug.

10, 1993, 107 Stat. 512]

(i) Cross references

(1) For exemption from tax in case of special fuels used on a

farm for farming purposes, see section 4041(f).

(2) For civil penalty for excessive claim under this section,

see section 6675.

(3) For fraud penalties, etc., see chapter 75 (section 7201

and following, relating to crimes, other offenses, and

forfeitures).

(4) For treatment of an Indian tribal government as a State

and (!1) a subdivision of an Indian tribal government as a

political subdivision of a State), see section 7871.

-SOURCE-

(Added Apr. 2, 1956, ch. 160, Sec. 1, 70 Stat. 87; amended Pub. L.

85-859, title I, Sec. 163(d)(2), Sept. 2, 1958, 72 Stat. 1311; Pub.

L. 89-44, title VIII, Sec. 809(a), June 21, 1965, 79 Stat. 165;

Pub. L. 91-258, title II, Secs. 205(c)(7), 207(b), May 21, 1970, 84

Stat. 242, 248; Pub. L. 94-455, title XIX, Secs. 1906(a)(26),

(b)(6)(A), (13)(A), Oct. 4, 1976, 90 Stat. 1827, 1833, 1834; Pub.

L. 95-458, Sec. 3(a), (c), Oct. 14, 1978, 92 Stat. 1257; Pub. L.

97-424, title V, Secs. 511(f), 516(b)(4), Jan. 6, 1983, 96 Stat.

2172, 2183; Pub. L. 97-473, title II, Sec. 202(b)(12), Jan. 14,

1983, 96 Stat. 2610; Pub. L. 98-369, div. A, title IV, Sec.

474(r)(38), July 18, 1984, 98 Stat. 846; Pub. L. 99-499, title V,

Sec. 521(c)(1), Oct. 17, 1986, 100 Stat. 1778; Pub. L. 100-17,

title V, Sec. 502(b)(6), Apr. 2, 1987, 101 Stat. 257; Pub. L.

101-239, title VII, Sec. 7841(d)(20), Dec. 19, 1989, 103 Stat.

2429; Pub. L. 101-508, title XI, Sec. 11211(d)(5), Nov. 5, 1990,

104 Stat. 1388-427; Pub. L. 102-240, title VIII, Sec. 8002(b)(5),

Dec. 18, 1991, 105 Stat. 2203; Pub. L. 103-66, title XIII, Secs.

13241(f)(5), 13242(d)(20), Aug. 10, 1993, 107 Stat. 512, 524.)

-MISC1-

PRIOR PROVISIONS

A prior section 6420 was renumbered section 6422 of this title.

AMENDMENTS

1993 - Subsec. (c)(5). Pub. L. 103-66, Sec. 13242(d)(20),