US (United States) Code. Title 26. Subtitle F: Procedure and Administration. Chapter 67: Interest

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-CITE-

26 USC CHAPTER 67 - INTEREST 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 67 - INTEREST

-HEAD-

CHAPTER 67 - INTEREST

-MISC1-

Subchapter Sec.(!1)

A. Interest on underpayments 6601

B. Interest on overpayments 6611

C. Determination of interest rate; compounding of

interest 6621

D. Notice requirements 6631

AMENDMENTS

1998 - Pub. L. 105-206, title III, Sec. 3308(b), July 22, 1998,

112 Stat. 745, added item for subchapter D.

1982 - Pub. L. 97-248, title III, Sec. 344(b)(3)(B), Sept. 3,

1982, 96 Stat. 636, inserted "; compounding of interest" after

"rate" in item for subchapter C.

1975 - Pub. L. 93-625, Sec. 7(d)(5), Jan. 3, 1975, 88 Stat. 2115,

added item for subchapter C.

-SECREF-

CHAPTER REFERRED TO IN OTHER SECTIONS

This chapter is referred to in sections 6226, 6242, 6247, 7801 of

this title.

-FOOTNOTE-

(!1) Section numbers editorially supplied.

-End-

-CITE-

26 USC Subchapter A - Interest on Underpayments 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 67 - INTEREST

Subchapter A - Interest on Underpayments

-HEAD-

SUBCHAPTER A - INTEREST ON UNDERPAYMENTS

-MISC1-

Sec.

6601. Interest on underpayment, nonpayment, or extensions of

time for payment, of tax.

6602. Interest on erroneous refund recoverable by suit.

-SECREF-

SUBCHAPTER REFERRED TO IN OTHER SECTIONS

This subchapter is referred to in section 6621 of this title.

-End-

-CITE-

26 USC Sec. 6601 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 67 - INTEREST

Subchapter A - Interest on Underpayments

-HEAD-

Sec. 6601. Interest on underpayment, nonpayment, or extensions of

time for payment, of tax

-STATUTE-

(a) General rule

If any amount of tax imposed by this title (whether required to

be shown on a return, or to be paid by stamp or by some other

method) is not paid on or before the last date prescribed for

payment, interest on such amount at the underpayment rate

established under section 6621 shall be paid for the period from

such last date to the date paid.

(b) Last date prescribed for payment

For purposes of this section, the last date prescribed for

payment of the tax shall be determined under chapter 62 with the

application of the following rules:

(1) Extensions of time disregarded

The last date prescribed for payment shall be determined

without regard to any extension of time for payment or any

installment agreement entered into under section 6159.

(2) Installment payments

In the case of an election under section 6156(a) to pay the tax

in installments -

(A) The date prescribed for payment of each installment of

the tax shown on the return shall be determined under section

6156(b), and

(B) The last date prescribed for payment of the first

installment shall be deemed the last date prescribed for

payment of any portion of the tax not shown on the return.

(3) Jeopardy

The last date prescribed for payment shall be determined

without regard to any notice and demand for payment issued, by

reason of jeopardy (as provided in chapter 70), prior to the last

date otherwise prescribed for such payment.

(4) Accumulated earnings tax

In the case of the tax imposed by section 531 for any taxable

year, the last date prescribed for payment shall be deemed to be

the due date (without regard to extensions) for the return of tax

imposed by subtitle A for such taxable year.

(5) Last date for payment not otherwise prescribed

In the case of taxes payable by stamp and in all other cases in

which the last date for payment is not otherwise prescribed, the

last date for payment shall be deemed to be the date the

liability for tax arises (and in no event shall be later than the

date notice and demand for the tax is made by the Secretary).

(c) Suspension of interest in certain income, estate, gift, and

certain excise tax cases

In the case of a deficiency as defined in section 6211 (relating

to income, estate, gift, and certain excise taxes), if a waiver of

restrictions under section 6213(d) on the assessment of such

deficiency has been filed, and if notice and demand by the

Secretary for payment of such deficiency is not made within 30 days

after the filing of such waiver, interest shall not be imposed on

such deficiency for the period beginning immediately after such

30th day and ending with the date of notice and demand and interest

shall not be imposed during such period on any interest with

respect to such deficiency for any prior period. In the case of a

settlement under section 6224(c) which results in the conversion of

partnership items to nonpartnership items pursuant to section

6231(b)(1)(C), the preceding sentence shall apply to a

computational adjustment resulting from such settlement in the same

manner as if such adjustment were a deficiency and such settlement

were a waiver referred to in the preceding sentence.

(d) Income tax reduced by carryback or adjustment for certain

unused deductions

(1) Net operating loss or capital loss carryback

If the amount of any tax imposed by subtitle A is reduced by

reason of a carryback of a net operating loss or net capital

loss, such reduction in tax shall not affect the computation of

interest under this section for the period ending with the filing

date for the taxable year in which the net operating loss or net

capital loss arises.

(2) Foreign tax credit carrybacks

If any credit allowed for any taxable year is increased by

reason of a carryback of tax paid or accrued to foreign countries

or possessions of the United States, such increase shall not

affect the computation of interest under this section for the

period ending with the filing date for the taxable year in which

such taxes were in fact paid or accrued, or, with respect to any

portion of such credit carryback from a taxable year attributable

to a net operating loss carryback or a capital loss carryback

from a subsequent taxable year, such increase shall not affect

the computation of interest under this section for the period

ending with the filing date for such subsequent taxable year.

(3) Certain credit carrybacks

(A) In general

If any credit allowed for any taxable year is increased by

reason of a credit carryback, such increase shall not affect

the computation of interest under this section for the period

ending with the filing date for the taxable year in which the

credit carryback arises, or, with respect to any portion of a

credit carryback from a taxable year attributable to a net

operating loss carryback, capital loss carryback, or other

credit carryback from a subsequent taxable year, such increase

shall not affect the computation of interest under this section

for the period ending with the filing date for such subsequent

taxable year.

(B) Credit carryback defined

For purposes of this paragraph, the term "credit carryback"

has the meaning given such term by section 6511(d)(4)(C).

(4) Filing date

For purposes of this subsection, the term "filing date" has the

meaning given to such term by section 6611(f)(3)(A).(!1)

(e) Applicable rules

Except as otherwise provided in this title -

(1) Interest treated as tax

Interest prescribed under this section on any tax shall be paid

upon notice and demand, and shall be assessed, collected, and

paid in the same manner as taxes. Any reference to this title

(except subchapter B of chapter 63, relating to deficiency

procedures) to any tax imposed by this title shall be deemed also

to refer to interest imposed by this section on such tax.

(2) Interest on penalties, additional amounts, or additions to

the tax

(A) In general

Interest shall be imposed under subsection (a) in respect of

any assessable penalty, additional amount, or addition to the

tax (other than an addition to tax imposed under section

6651(a)(1) or 6653 or under part II of subchapter A of chapter

68) only if such assessable penalty, additional amount, or

addition to the tax is not paid within 21 calendar days from

the date of notice and demand therefor (10 business days if the

amount for which such notice and demand is made equals or

exceeds $100,000), and in such case interest shall be imposed

only for the period from the date of the notice and demand to

the date of payment.

(B) Interest on certain additions to tax

Interest shall be imposed under this section with respect to

any addition to tax imposed by section 6651(a)(1) or 6653 or

under part II of subchapter A of chapter 68 for the period

which -

(i) begins on the date on which the return of the tax with

respect to which such addition to tax is imposed is required

to be filed (including any extensions), and

(ii) ends on the date of payment of such addition to tax.

(3) Payments made within specified period after notice and demand

If notice and demand is made for payment of any amount and if

such amount is paid within 21 calendar days (10 business days if

the amount for which such notice and demand is made equals or

exceeds $100,000) after the date of such notice and demand,

interest under this section on the amount so paid shall not be

imposed for the period after the date of such notice and demand.

(f) Satisfaction by credits

If any portion of a tax is satisfied by credit of an overpayment,

then no interest shall be imposed under this section on the portion

of the tax so satisfied for any period during which, if the credit

had not been made, interest would have been allowable with respect

to such overpayment. The preceding sentence shall not apply to the

extent that section 6621(d) applies.

(g) Limitation on assessment and collection

Interest prescribed under this section on any tax may be assessed

and collected at any time during the period within which the tax to

which such interest relates may be collected.

(h) Exception as to estimated tax

This section shall not apply to any failure to pay any estimated

tax required to be paid by section 6654 or 6655.

(i) Exception as to Federal unemployment tax

This section shall not apply to any failure to make a payment of

tax imposed by section 3301 for a calendar quarter or other period

within a taxable year required under authority of section 6157.

(j) 2-percent rate on certain portion of estate tax extended under

section 6166

(1) In general

If the time for payment of an amount of tax imposed by chapter

11 is extended as provided in section 6166, then in lieu of the

annual rate provided by subsection (a) -

(A) interest on the 2-percent portion of such amount shall be

paid at the rate of 2 percent, and

(B) interest on so much of such amount as exceeds the

2-percent portion shall be paid at a rate equal to 45 percent

of the annual rate provided by subsection (a).

For purposes of this subsection, the amount of any deficiency

which is prorated to installments payable under section 6166

shall be treated as an amount of tax payable in installments

under such section.

(2) 2-percent portion

For purposes of this subsection, the term "2-percent portion"

means the lesser of -

(A)(i) the amount of the tentative tax which would be

determined under the rate schedule set forth in section 2001(c)

if the amount with respect to which such tentative tax is to be

computed were the sum of $1,000,000 and the applicable

exclusion amount in effect under section 2010(c), reduced by

(ii) the applicable credit amount in effect under section

2010(c), or

(B) the amount of the tax imposed by chapter 11 which is

extended as provided in section 6166.

(3) Inflation adjustment

In the case of estates of decedents dying in a calendar year

after 1998, the $1,000,000 amount contained in paragraph (2)(A)

shall be increased by an amount equal to -

(A) $1,000,000, multiplied by

(B) the cost-of-living adjustment determined under section

1(f)(3) for such calendar year by substituting "calendar year

1997" for "calendar year 1992" in subparagraph (B) thereof.

If any amount as adjusted under the preceding sentence is not a

multiple of $10,000, such amount shall be rounded to the next

lowest multiple of $10,000.

(4) Treatment of payments

If the amount of tax imposed by chapter 11 which is extended as

provided in section 6166 exceeds the 2-percent portion, any

payment of a portion of such amount shall, for purposes of

computing interest for periods after such payment, be treated as

reducing the 2-percent portion by an amount which bears the same

ratio to the amount of such payment as the amount of the

2-percent portion (determined without regard to this paragraph)

bears to the amount of the tax which is extended as provided in

section 6166.

(k) No interest on certain adjustments

For provisions prohibiting interest on certain adjustments in

tax, see section 6205(a).

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 817; Pub. L. 85-866, title I,

Secs. 66(c), 83(a)(1), 84(a), title II, Sec. 206(e), Sept. 2, 1958,

72 Stat. 1658, 1663, 1664, 1685; Pub. L. 87-61, title II, Sec.

203(c)(2), June 29, 1961, 75 Stat. 126; Pub. L. 87-834, Sec.

2(e)(3), Oct. 16, 1962, 76 Stat. 972; Pub. L. 88-571, Sec. 3(d),

Sept. 2, 1964, 78 Stat. 858; Pub. L. 89-384, Sec. 1(f), Apr. 8,

1966, 80 Stat. 104; Pub. L. 90-225, Sec. 2(e), Dec. 27, 1967, 81

Stat. 731; Pub. L. 91-53, Sec. 2(e), Aug. 7, 1969, 83 Stat. 92;

Pub. L. 91-172, title I, Sec. 101(j)(49), title V, Sec. 512(e)(3),

Dec. 30, 1969, 83 Stat. 531, 641; Pub. L. 92-178, title VI, Sec.

601(d)(3), Dec. 10, 1971, 85 Stat. 559; Pub. L. 93-406, title II,

Sec. 1016(a)(17), Sept. 2, 1974, 88 Stat. 930; Pub. L. 93-625, Sec.

7(a)(2)(A), (b)(1), Jan. 3, 1975, 88 Stat. 2115; Pub. L. 94-452,

Sec. 3(c)(3), Oct. 2, 1976, 90 Stat. 1514; Pub. L. 94-455, title

XIII, Sec. 1307(d)(2)(H), title XVI, Sec. 1605(b)(10), title XIX,

Secs. 1906(a)(34), (b)(13)(A), title XX, Sec. 2004(b), title XXI,

Sec. 2107(g)(2)(C), Oct. 4, 1976, 90 Stat. 1728, 1755, 1829, 1834,

1867, 1904; Pub. L. 95-30, title II, Sec. 202(d)(4)(C), May 23,

1977, 91 Stat. 150; Pub. L. 95-628, Sec. 8(c)(2), Nov. 10, 1978, 92

Stat. 3632; Pub. L. 96-223, title I, Sec. 101(f)(7), Apr. 2, 1980,

94 Stat. 253; Pub. L. 97-248, title III, Secs. 344(b)(1),

346(c)(2), Sept. 3, 1982, 96 Stat. 635, 637; Pub. L. 98-76, title

II, Sec. 231(b)(2)(D), Aug. 12, 1983, 97 Stat. 429; Pub. L. 98-369,

div. A, title I, Sec. 158(a), title II, Sec. 211(b)(26), title IV,

Sec. 412(b)(7), title VII, Sec. 714(n)(1), July 18, 1984, 98 Stat.

696, 757, 792, 963; Pub. L. 99-514, title XIV, Sec. 1404(c)(3),

title XV, Secs. 1511(c)(11), 1512(a), 1564(a), Oct. 22, 1986, 100

Stat. 2714, 2745, 2746, 2762; Pub. L. 100-203, title X, Sec.

10301(b)(5), Dec. 22, 1987, 101 Stat. 1330-429; Pub. L. 100-647,

title I, Secs. 1015(b)(2)(C), 1018(u)(42), title VI, Sec.

6234(b)(1), title VII, Sec. 7106(c)(5), Nov. 10, 1988, 102 Stat.

3569, 3592, 3736, 3774; Pub. L. 101-239, title VII, Sec.

7721(c)(8), Dec. 19, 1989, 103 Stat. 2400; Pub. L. 101-508, title

XI, Sec. 11801(c)(20)(B), Nov. 5, 1990, 104 Stat. 1388-528; Pub. L.

104-168, title III, Sec. 303(a), (b)(1), July 30, 1996, 110 Stat.

1458; Pub. L. 105-34, title V, Secs. 501(e), 503(a), (c)(2), (3),

title X, Sec. 1055(a), title XII, Sec. 1242(a), Aug. 5, 1997, 111

Stat. 846, 852, 853, 944, 1029; Pub. L. 105-206, title III, Sec.

3301(b), July 22, 1998, 112 Stat. 741.)

-STATAMEND-

ADJUSTMENT OF DOLLAR AMOUNT USED IN DETERMINING "2-PERCENT PORTION"

For adjustment of dollar amount used in determining "2-percent

portion" for purpose of calculating interest under subsection (j)

of this section in the case of decedents dying in calendar year

2003, see section 3.31 of Revenue Procedure 2002-70, set out as a

note under section 1 of this title.

-REFTEXT-

REFERENCES IN TEXT

Section 6611(f)(3)(A), referred to in subsec. (d)(4), was

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

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

-MISC1-

AMENDMENTS

1998 - Subsec. (f). Pub. L. 105-206 inserted at end "The

preceding sentence shall not apply to the extent that section

6621(d) applies."

1997 - Subsec. (c). Pub. L. 105-34, Sec. 1242(a), inserted at end

"In the case of a settlement under section 6224(c) which results in

the conversion of partnership items to nonpartnership items

pursuant to section 6231(b)(1)(C), the preceding sentence shall

apply to a computational adjustment resulting from such settlement

in the same manner as if such adjustment were a deficiency and such

settlement were a waiver referred to in the preceding sentence."

Subsec. (d)(2) to (4). Pub. L. 105-34, Sec. 1055(a), added par.

(2) and redesignated former pars. (2) and (3) as (3) and (4),

respectively.

Subsec. (j). Pub. L. 105-34, Sec. 503(c)(3), substituted

"2-percent" for "4-percent" in heading.

Subsec. (j)(1). Pub. L. 105-34, Sec. 503(a), reenacted par.

heading without change and amended text generally. Prior to

amendment, text read as follows: "If the time for payment of an

amount of tax imposed by chapter 11 is extended as provided in

section 6166, interest on the 4-percent portion of such amount

shall (in lieu of the annual rate provided by subsection (a)) be

paid at the rate of 4 percent. For purposes of this subsection, the

amount of any deficiency which is prorated to installments payable

under section 6166 shall be treated as an amount of tax payable in

installments under such section."

Subsec. (j)(2). Pub. L. 105-34, Sec. 503(a), amended heading and

text generally. Prior to amendment, text read as follows: "For

purposes of this subsection, the term '4-percent portion' means the

lesser of -

"(A) $345,800 reduced by the amount of the credit allowable

under section 2010(a); or

"(B) the amount of the tax imposed by chapter 11 which is

extended as provided in section 6166."

Subsec. (j)(3). Pub. L. 105-34, Sec. 501(e), added par. (3).

Former par. (3) redesignated (4).

Subsec. (j)(4). Pub. L. 105-34, Sec. 503(c)(2), substituted

"2-percent" for "4-percent" wherever appearing.

Pub. L. 105-34, Sec. 501(e), redesignated par. (3) as (4).

1996 - Subsec. (e)(2)(A). Pub. L. 104-168, Sec. 303(b)(1),

substituted "21 calendar days from the date of notice and demand

therefor (10 business days if the amount for which such notice and

demand is made equals or exceeds $100,000)" for "10 days from the

date of notice and demand therefor".

Subsec. (e)(3). Pub. L. 104-168, Sec. 303(a), substituted

"specified period" for "10 days" in heading and amended text

generally. Prior to amendment, text read as follows: "If notice and

demand is made for payment of any amount, and if such amount is

paid within 10 days after the date of such notice and demand

interest under this section on the amount so paid shall not be

imposed for the period after the date of such notice and demand."

1990 - Subsec. (b)(2). Pub. L. 101-508 struck out "or 6158(a)"

after "6156(a)" in introductory provisions, struck out "or 6158(a),

as the case may be" after "6156(a)" in subpar. (A), and struck out

at end "For purposes of subparagraph (A), section 6158(a) shall be

treated as providing that the date prescribed for payment of each

installment shall not be later than the date prescribed for payment

of the 1985 installment."

1989 - Subsec. (e)(2). Pub. L. 101-239 substituted "section

6651(a)(1) or 6653 or under part II of subchapter A of chapter 68"

for "section 6651(a)(1), 6653, 6659, 6660, or 6661" in subpars. (A)

and (B).

1988 - Subsec. (b)(1). Pub. L. 100-647, Sec. 6234(b)(1), inserted

"or any installment agreement entered into under section 6159"

after "time for payment".

Subsec. (b)(2). Pub. L. 100-647, Sec. 1018(u)(42), made technical

correction to directory language of Pub. L. 99-514, Sec.

1404(c)(3), see 1986 Amendment note below.

Subsec. (e)(2)(A), (B). Pub. L. 100-647, Sec. 1015(b)(2)(C),

substituted "6653, 6659" for "6659".

Subsec. (i). Pub. L. 100-647, Sec. 7106(c)(5), struck out "or

3321" after "3301".

1987 - Subsec. (h). Pub. L. 100-203 substituted "section 6654 or

6655" for "section 6154 or 6654".

1986 - Subsec. (a). Pub. L. 99-514, Sec. 1511(c)(11), substituted

"the underpayment rate established under section 6621" for "an

annual rate established under section 6621".

Subsec. (b)(2). Pub. L. 99-514, Sec. 1404(c)(3), as amended by

Pub. L. 100-647, Sec. 1018(u)(42), substituted "6156(a) or 6158(a)"

for "6152(a), 6156(a), or 6158(a)" in introductory provisions and

"6156(b) or 6158(a)" for "6152(b), 6156(b), or 6158(a)" in subpar.

(A).

Subsec. (b)(4), (5). Pub. L. 99-514, Sec. 1512(a), added par. (4)

and redesignated former par. (4) as (5).

Subsec. (c). Pub. L. 99-514, Sec. 1564(a), inserted "and interest

shall not be imposed during such period on any interest with

respect to such deficiency for any prior period".

1984 - Subsec. (d)(2)(A). Pub. L. 98-369, Sec. 714(n)(1), made

technical correction to directory language of Pub. L. 97-248, Sec.

346(c)(2)(B). See 1982 Amendment note below.

Subsec. (d)(3), (4). Pub. L. 98-369, Sec. 211(b)(26),

redesignated par. (4) as (3) and struck out former par. (3) which

had provided that if the amount of any tax imposed by subtitle A

was reduced by operation of section 815(d)(5) (relating to

reduction of policyholders surplus account of life insurance

companies for certain unused deductions), such reduction in tax

would not affect the computation of interest under this section for

the period ending with the last day of the last taxable year to

which the loss described in section 815(d)(5)(A) was carried under

section 812(b)(2).

Subsec. (e)(2). Pub. L. 98-369, Sec. 158(a), in amending par. (2)

generally, inserted "(other than an addition to tax imposed under

section 6651(a)(1), 6659, 6660, or 6661)", and added subpar. (B).

Subsec. (h). Pub. L. 98-369, Sec. 412(b)(7), amended subsec. (h)

generally, substituting "any estimated tax required to be paid by

section 6154 or 6654" for "estimated tax required by section 6153

or section 6154".

1983 - Subsec. (i). Pub. L. 98-76 inserted "or 3321" after

"3301".

1982 - Subsec. (d)(1). Pub. L. 97-248, Sec. 346(c)(2)(A),

substituted "the filing date for the taxable year" for "the last

day of the taxable year".

Subsec. (d)(2)(A). Pub. L. 97-248, Sec. 346(c)(2)(B), as amended

by Pub. L. 98-369, Sec. 346(c)(2)(B), substituted "the filing date

for" for "the last day of" in two places.

Subsec. (d)(4). Pub. L. 97-248, Sec. 346(c)(2)(C), added par.

(4).

Subsec. (e). Pub. L. 97-248, Sec. 344(b)(1), struck out par. (2)

which had provided that no interest under this section was to be

imposed on the interest provided by this section, and redesignated

pars. (3) and (4) as (2) and (3), respectively.

1980 - Subsec. (c). Pub. L. 96-223 substituted "certain excise

tax cases" for "chapter 41, 42, 43, or 44 tax cases" in heading.

1978 - Subsec. (d)(2). Pub. L. 95-628, Sec. 8(c)(2)(A),

substituted in heading "Certain credit carrybacks" for "Investment

credit carryback", designated existing provision as subpar. (A),

and in subpar. (A) as so designated, inserted heading "In general"

and in text extended the application of the provision to credit

carrybacks, previously limited to investment credit carrybacks,

included other credit carrybacks, and added subpar. (B).

Subsec. (d)(4), (5). Pub. L. 95-628, Sec. 8(c)(2)(B), struck out

pars. (4) and (5) which provided for work incentive program credit

carrybacks and new employee credit carrybacks, respectively.

1977 - Subsec. (d)(5). Pub. L. 95-30 added par. (5).

1976 - Subsec. (b)(2). Pub. L. 94-452 substituted ", 6156(a), or

6158(a)" for "or 6156(a)" and ", 6156(b), or 6158(a)" for "or

6156(b)" and inserted requirement that for purposes of subparagraph

(A), section 6158(a) of this title shall be treated as providing

that the date prescribed for payment of each installment shall not

be later than the date prescribed for payment of the 1985

installment.

Subsec. (b)(4). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck out

"or his delegate" after "Secretary".

Subsec. (c). Pub. L. 94-455, Secs. 1307(d)(2)(H), 1605(b)(10),

substituted in heading "chapter 41, 42" for "chapter 42" and "43,

or 44" for "or 43".

Subsec. (d)(4). Pub. L. 94-455, Sec. 2107(g)(2)(C), inserted ",

an investment credit carryback," after "net operating loss

carryback".

Subsec. (h). Pub. L. 94-455, Sec. 1906(a)(34), struck out "(or

section 59 of the Internal Revenue Code of 1939)".

Subsecs. (j), (k). Pub. L. 94-455, Sec. 2004(b), added subsec.

(j) and redesignated former subsec. (j) as (k).

1975 - Subsec. (a). Pub. L. 93-625, Sec. 7(a)(2)(A), substituted

"an annual rate established under section 6621" for "the rate of 6

percent per annum".

Subsecs. (b) to (l). Pub. L. 93-625, Sec. 7(b)(1), struck out

subsec. (b) relating to extensions of time for payment of estate

tax, redesignated subsecs. (c) to (i) as (b) to (h), respectively,

struck out subsec. (j) relating to extensions of time for payment

of tax attributable to recoveries of foreign expropriation losses,

and redesignated subsecs. (k) and (l) as (i) and (j), respectively.

1974 - Subsec. (d). Pub. L. 93-406 inserted reference to chapter

43 in heading, and substituted "certain excise" for "chapter 42" in

text.

1971 - Subsec. (e)(4). Pub. L. 92-178 added par. (4).

1969 - Subsec. (d). Pub. L. 91-172, Sec. 101(j)(49), inserted

reference to chapter 42 both in subsec. heading and in text.

Subsec. (e)(1). Pub. L. 91-172, Sec. 512(e)(3)(A), (B),

substituted "loss or capital loss carryback" for "loss carryback"

in heading, and "net operating loss or net capital loss" for "net

operating loss" wherever it appears in text.

Subsec. (e)(2). Pub. L. 91-172, Sec. 512(e)(3)(C), substituted

"loss carryback or a capital loss carryback" for "loss carryback".

Subsecs. (k), (l). Pub. L. 91-53 added subsec. (k) and

redesignated former subsec. (k) as (l).

1967 - Subsec. (e)(2). 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, such increase shall not affect the

computation of interest under this section for the period ending

with the last day of such subsequent taxable year," after "the

investment credit carryback arises".

1966 - Subsecs. (j), (k). Pub. L. 89-384 added subsec. (j) and

redesignated former subsec. (j) as (k).

1964 - Subsec. (e). Pub. L. 88-571 added par. (3) and inserted

"or adjustment for certain unused deductions" in heading.

1962 - Subsec. (e). Pub. L. 87-834 designated existing provisions

as par. (1) and added par. (2).

1961 - Subsec. (c)(2). Pub. L. 87-61 substituted "6152(a) or

6156(a)" for "6152(a)" in introductory provisions, and "6152(b) or

6156(b), as the case may be" for "6152(b)" in subpar. (A).

1958 - Subsec. (b). Pub. L. 85-866, Secs. 66(c), 206(e), inserted

reference to section 6166, and substituted "if the time for payment

of an amount of such tax is postponed or extended as provided by

section 6163" for "if postponement of the payment of an amount of

such tax is permitted by section 6163(a)".

Subsecs. (g) to (j). Pub. L. 85-866, Secs. 83(a)(1), 84(a), added

subsecs. (g) and (h) and redesignated former subsecs. (g) and (h)

as (h) and (i), respectively.

EFFECTIVE DATE OF 1998 AMENDMENT

Pub. L. 105-206, title III, Sec. 3301(c), July 22, 1998, 112

Stat. 741, as amended by Pub. L. 105-277, div. J, title IV, Sec.

4002(d), Oct. 21, 1998, 112 Stat. 2681-906, provided that:

"(1) In general. - Except as provided under paragraph (2), the

amendments made by this section [amending this section and section

6621 of this title] shall apply to interest for periods beginning

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

"(2) Special rule. - Subject to any applicable statute of

limitation not having expired with regard to either a tax

underpayment or a tax overpayment, the amendments made by this

section shall apply to interest for periods beginning before the

date of the enactment of this Act if the taxpayer -

"(A) reasonably identifies and establishes periods of such tax

overpayments and underpayments for which the zero rate applies;

and

"(B) not later than December 31, 1999, requests the Secretary

of the Treasury to apply section 6621(d) of the Internal Revenue

Code of 1986, as added by subsection (a), to such periods."

EFFECTIVE DATE OF 1997 AMENDMENT

Amendment by section 501(e) of Pub. L. 105-34 applicable to

estates of decedents dying, and gifts made, after Dec. 31, 1997,

see section 501(f) of Pub. L. 105-34, set out as a note under

section 2001 of this title.

Amendment by section 503(a), (c)(2), (3) of Pub. L. 105-34

applicable to estates of decedents dying after Dec. 31, 1997, with

special rule in case of estate of any decedent dying before Jan. 1,

1998, with respect to which there is an election under section 6166

of this title, see section 503(d) of Pub. L. 105-34, set out as a

note under section 163 of this title.

Section 1055(c) of Pub. L. 105-34 provided that: "The amendments

made by this section [amending this section and section 6611 of

this title] shall apply to foreign tax credit carrybacks arising in

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

[Aug. 5, 1997]."

Section 1242(b) of Pub. L. 105-34 provided that: "The amendment

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

adjustments with respect to partnership taxable years beginning

after the date of the enactment of this Act [Aug. 5, 1997]."

EFFECTIVE DATE OF 1996 AMENDMENT

Section 303(c) of Pub. L. 104-168 provided that: "The amendments

made by this section [amending this section and section 6651 of

this title] shall apply in the case of any notice and demand given

after December 31, 1996."

EFFECTIVE DATE OF 1989 AMENDMENT

Amendment by Pub. L. 101-239 applicable to returns the due date

for which (determined without regard to extensions) is after Dec.

31, 1989, see section 7721(d) of Pub. L. 101-239, set out as a note

under section 461 of this title.

EFFECTIVE DATE OF 1988 AMENDMENT

Amendment by section 1015(b)(2)(C) of Pub. L. 100-647 applicable

to returns the due date for which (determined without regard to

extensions) is after Dec. 31, 1988, see section 1015(b)(4) of Pub.

L. 100-647, set out as a note under section 6013 of this title.

Amendment by section 1018(u)(42) 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.

Amendment by section 6234(b)(1) of Pub. L. 100-647 applicable to

agreements entered into after Nov. 10, 1988, see section 6234(c) of

Pub. L. 100-647, set out as an Effective Date note under section

6159 of this title.

Amendment by section 7106(c)(5) of Pub. L. 100-647 applicable to

remuneration paid after Dec. 31, 1988, see section 7106(d) of Pub.

L. 100-647, set out as a note under section 3321 of this title.

EFFECTIVE DATE OF 1987 AMENDMENT

Amendment by Pub. L. 100-203 applicable to taxable years

beginning after Dec. 31, 1987, see section 10301(c) of Pub. L.

100-203, set out as a note under section 585 of this title.

EFFECTIVE DATE OF 1986 AMENDMENT

Amendment by section 1404(c)(3) of Pub. L. 99-514 applicable to

taxable years beginning after Dec. 31, 1986, see section 1404(d) of

Pub. L. 99-514, set out as a note under section 643 of this title.

Amendment by section 1511(c)(11) of Pub. L. 99-514 applicable for

purposes of determining interest for periods after Dec. 31, 1986,

see section 1511(d) of Pub. L. 99-514, set out as a note under

section 47 of this title.

Section 1512(b) of Pub. L. 99-514 provided that: "The amendments

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

the due date for which (determined without regard to extensions) is

after December 31, 1985."

Section 1564(b) of Pub. L. 99-514 provided that:

"(1) Effective date. - The amendment made by subsection (a)

[amending this section] shall apply to interest accruing after

December 31, 1982.

"(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 1984 AMENDMENT

Section 158(b) of Pub. L. 98-369 provided that: "The amendment

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

interest accrued after the date of the enactment of this Act [July

18, 1984], except with respect to additions to tax for which notice

and demand is made before such date."

Amendment by section 211(b)(26) of Pub. L. 98-369 applicable to

taxable years beginning after Dec. 31, 1983, see section 215 of

Pub. L. 98-369, set out as an Effective Date note under section 801

of this title.

Amendment by section 412(b)(7) of Pub. L. 98-369 applicable with

respect to taxable years beginning after Dec. 31, 1984, see section

414(a)(1) of Pub. L. 98-369, set out as a note under section 6654

of this title.

Amendment by section 714(n)(1) 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.

EFFECTIVE DATE OF 1983 AMENDMENT

Amendment by Pub. L. 98-76 applicable to remuneration paid after

June 30, 1986, see section 231(d) of Pub. L. 98-76, set out as an

Effective Date note under section 3321 of this title.

EFFECTIVE DATE OF 1982 AMENDMENT

Amendment by section 344(b)(1) of Pub. L. 97-248 applicable to

interest accruing after Dec. 31, 1982, see section 344(c) of Pub.

L. 97-248, set out as an Effective Date note under section 6622 of

this title.

Amendment by section 346(c)(2) of Pub. L. 97-248 applicable to

interest accruing after the 30th day after Sept. 3, 1982, see

section 346(d)(2) of Pub. L. 97-248, set out as a note under

section 6611 of this title.

EFFECTIVE DATE OF 1980 AMENDMENT

Amendment by Pub. L. 96-223 applicable to periods after Feb. 29,

1980, see section 101(i) of Pub. L. 96-223, set out as a note under

section 6161 of this title.

EFFECTIVE DATE OF 1978 AMENDMENT

Amendment by Pub. L. 95-628 applicable to carrybacks arising in

taxable years beginning after Nov. 10, 1978, see section 8(d) of

Pub. L. 95-628, set out as a note under section 6511 of this title.

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 1976 AMENDMENTS

Amendment by section 2004(b) of Pub. L. 94-455 applicable to

estates of decedents dying after Dec. 31, 1976, see section 2004(g)

of Pub. L. 94-455, set out as a note under section 6166 of this

title.

Amendment by Pub. L. 94-452 effective Oct. 1, 1977, see section

3(e) of Pub. L. 94-452, set out as a note under section 6151 of

this title.

EFFECTIVE DATE OF 1975 AMENDMENT

Amendment by Pub. L. 93-625 effective July 1, 1975, and

applicable to amounts outstanding on such date or arising

thereafter, see section 7(e) of Pub. L. 93-625, set out as an

Effective Date note under section 6621 of this title.

EFFECTIVE DATE OF 1974 AMENDMENT

Amendment by Pub. L. 93-406 applicable, except as otherwise

provided in section 1017(c) through (i) of Pub. L. 93-406, for plan

years beginning after Sept. 2, 1974, but, in the case of plans in

existence on Jan. 1, 1974, amendment by Pub. L. 93-406 applicable

for plan years beginning after Dec. 31, 1975, see section 1017 of

Pub. L. 93-406, set out as an Effective Date; Transitional Rules

note under section 410 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 section 101(j)(49) of Pub. L. 91-172 effective Jan.

1, 1970, see section 101(k)(1) of Pub. L. 91-172, set out as an

Effective Date note under section 4940 of this title.

Amendment by section 512(e)(3) of 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 an Effective Date of 1969 Amendment note under section 1212 of

this title. Amendment by Pub. L. 91-53 applicable with respect to

calendar years beginning after Dec. 31, 1969, see section 4(a) of

Pub. L. 91-53, set out as an Effective Date note under section 6157

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

Amendment by Pub. L. 89-384 applicable with respect to amounts

received after December 31, 1964, in respect of foreign

expropriation losses (as defined in section 1351(b) of this title)

sustained after December 31, 1958, see section 2 of Pub. L. 89-384,

set out as an Effective Date note under section 1351 of this title.

EFFECTIVE DATE OF 1964 AMENDMENT

Amendment by Pub. L. 88-571 effective, with respect to amounts

added to policyholders surplus accounts, for taxable years

beginning after Dec. 31, 1958, see section 3(f) of Pub. L. 88-571,

set out as a note under section 815 of this title.

EFFECTIVE DATE OF 1962 AMENDMENT

Amendment by Pub. L. 87-834 applicable with respect to taxable

years ending after Dec. 31, 1961, see section 2(h) of Pub. L.

87-834, set out as an Effective Date note under section 46 of this

title.

EFFECTIVE DATE OF 1961 AMENDMENT

Amendment by Pub. L. 87-61 effective July 1, 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 sections 66(c) and 84(a) of Pub. L. 85-866 effective

Aug. 17, 1954, see section 1(c)(2) of Pub. L. 85-866, set out as a

note under section 165 of this title.

Section 83(d) of Pub. L. 85-866 provided that: "The amendments

made by subsections (a) [amending this section and section 3794 of

I.R.C. 1939], (b) [amending section 6611 of this title and section

3771 of I.R.C. 1939], and (c) [amending section 6611 of this title]

shall apply only in respect of overpayments credited after December

31, 1957."

For effective date of amendment by section 206(e) of Pub. L.

85-866, see section 206(f) of Pub. L. 85-866, set out as a note

under section 6161 of this title.

SAVINGS PROVISION

For provisions that nothing in amendment 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.

ADMINISTRATION OF PENALTIES AND INTEREST

Pub. L. 105-206, title III, Sec. 3801, July 22, 1998, 112 Stat.

782, provided that: "The Joint Committee on Taxation and the

Secretary of the Treasury shall each conduct a separate study -

"(1) reviewing the administration and implementation by the

Internal Revenue Service of the interest and penalty provisions

of the Internal Revenue Code of 1986 (including the penalty

reform provisions of the Omnibus Budget Reconciliation Act of

1989 [Pub. L. 101-239, see Tables for classification]); and

"(2) making any legislative and administrative recommendations

the Committee or the Secretary deems appropriate to simplify

penalty or interest administration and reduce taxpayer burden.

Such studies shall be submitted to the Committee on Ways and Means

of the House of Representatives and the Committee on Finance of the

Senate not later than 1 year after the date of the enactment of

this Act [July 22, 1998]."

INTEREST NOT PAYABLE ON UNDERPAYMENTS CREATED OR INCREASED BY TAX

REFORM ACT OF 1976

Section 305 of Pub. L. 95-30, as amended by Pub. L. 99-514, Sec.

2, Oct. 22, 1986, 100 Stat. 2095, provided that: "No interest shall

be payable for any period before April 16, 1977 (March 16, 1977, in

the case of a corporation), on any underpayment of a tax imposed by

the Internal Revenue Code of 1986 [formerly I.R.C. 1954], to the

extent that such underpayment was created or increased by any

provision of the Tax Reform Act of 1976 [Pub. L. 94-455]."

INTEREST ON UNDERPAYMENT

Section 946(a) of Pub. L. 91-172 provided that in the case of any

taxable year ending before Dec. 30, 1969, no interest on

underpayment of taxes, to the extent that such underpayment was

attributable to the amendments made by Pub. L. 91-172, was not to

be assessed or collected for any period before the 90th day after

Dec. 30, 1969.

INTEREST ATTRIBUTABLE TO NET OPERATING LOSS CARRYBACK FOR CERTAIN

TAXABLE YEARS ENDING IN 1954

Section 83(e) of Pub. L. 85-866 provided that if by reason of the

enactment of section 172(b)(1)(A) of this title, a deficiency

resulted for the first taxable year preceding a taxable year ending

after Dec. 31, 1953 but before Aug. 17, 1954 and an overpayment

resulted in the second preceding taxable year, then no interest was

payable for any portion of such deficiency for any period during

which there existed a corresponding overpayment to which interest

was not payable.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 163, 815, 860, 936, 995,

1016, 1260, 1291, 1363, 2053, 5684, 6166, 6167, 6504, 6621, 7404,

7518 of this title; title 29 section 1307; title 46 App. section

1177.

-FOOTNOTE-

(!1) See References in Text note below.

-End-

-CITE-

26 USC Sec. 6602 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 67 - INTEREST

Subchapter A - Interest on Underpayments

-HEAD-

Sec. 6602. Interest on erroneous refund recoverable by suit

-STATUTE-

Any portion of an internal revenue tax (or any interest,

assessable penalty, additional amount, or addition to tax) which

has been erroneously refunded, and which is recoverable by suit

pursuant to section 7405, shall bear interest at the underpayment

rate established under section 6621 from the date of the payment of

the refund.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 818; Pub. L. 93-625, Sec.

7(a)(2)(B), Jan. 3, 1975, 88 Stat. 2115; Pub. L. 99-514, title XV,

Sec. 1511(c)(12), Oct. 22, 1986, 100 Stat. 2745.)

-MISC1-

AMENDMENTS

1986 - Pub. L. 99-514 substituted "the underpayment rate

established under section 6621" for "an annual rate established

under section 6621".

1975 - Pub. L. 93-625 substituted "an annual rate established

under section 6621" for "the rate of 6 percent per annum".

EFFECTIVE DATE OF 1986 AMENDMENT

Amendment by Pub. L. 99-514 applicable for purposes of

determining interest for periods after Dec. 31, 1986, see section

1511(d) of Pub. L. 99-514, set out as a note under section 47 of

this title.

EFFECTIVE DATE OF 1975 AMENDMENT

Amendment by Pub. L. 93-625 effective July 1, 1975, and

applicable to amounts outstanding on such date or arising

thereafter, see section 7(e) of Pub. L. 93-625, set out as an

Effective Date note under section 6621 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 6404, 7405 of this title.

-End-

-CITE-

26 USC Subchapter B - Interest on Overpayments 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 67 - INTEREST

Subchapter B - Interest on Overpayments

-HEAD-

SUBCHAPTER B - INTEREST ON OVERPAYMENTS

-MISC1-

Sec.

6611. Interest on overpayments.

6612. Cross references.

-SECREF-

SUBCHAPTER REFERRED TO IN OTHER SECTIONS

This subchapter is referred to in sections 6512, 6621 of this

title.

-End-

-CITE-

26 USC Sec. 6611 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 67 - INTEREST

Subchapter B - Interest on Overpayments

-HEAD-

Sec. 6611. Interest on overpayments

-STATUTE-

(a) Rate

Interest shall be allowed and paid upon any overpayment in

respect of any internal revenue tax at the overpayment rate

established under section 6621.

(b) Period

Such interest shall be allowed and paid as follows:

(1) Credits

In the case of a credit, from the date of the overpayment to

the due date of the amount against which the credit is taken.

(2) Refunds

In the case of a refund, from the date of the overpayment to a

date (to be determined by the Secretary) preceding the date of

the refund check by not more than 30 days, whether or not such

refund check is accepted by the taxpayer after tender of such

check to the taxpayer. The acceptance of such check shall be

without prejudice to any right of the taxpayer to claim any

additional overpayment and interest thereon.

(3) Late returns

Notwithstanding paragraph (1) or (2) in the case of a return of

tax which is filed after the last date prescribed for filing such

return (determined with regard to extensions), no interest shall

be allowed or paid for any day before the date on which the

return is filed.

[(c) Repealed. Pub. L. 85-866, title I, Sec. 83(c), Sept. 2, 1958,

72 Stat. 1664]

(d) Advance payment of tax, payment of estimated tax, and credit

for income tax withholding

The provisions of section 6513 (except the provisions of

subsection (c) thereof, applicable in determining the date of

payment of tax for purposes of determining the period of limitation

on credit or refund, shall be applicable in determining the date of

payment for purposes of subsection (a).

(e) Disallowance of interest on certain overpayments

(1) Refunds within 45 days after return is filed

If any overpayment of tax imposed by this title is refunded

within 45 days after the last day prescribed for filing the

return of such tax (determined without regard to any extension of

time for filing the return) or, in the case of a return filed

after such last date, is refunded within 45 days after the date

the return is filed, no interest shall be allowed under

subsection (a) on such overpayment.

(2) Refunds after claim for credit or refund

If -

(A) the taxpayer files a claim for a credit or refund for any

overpayment of tax imposed by this title, and

(B) such overpayment is refunded within 45 days after such

claim is filed,

no interest shall be allowed on such overpayment from the date

the claim is filed until the day the refund is made.

(3) IRS initiated adjustments

If an adjustment initiated by the Secretary, results in a

refund or credit of an overpayment, interest on such overpayment

shall be computed by subtracting 45 days from the number of days

interest would otherwise be allowed with respect to such

overpayment.

(f) Refund of income tax caused by carryback or adjustment for

certain unused deductions

(1) Net operating loss or capital loss carryback

For purposes of subsection (a), if any overpayment of tax

imposed by subtitle A results from a carryback of a net operating

loss or net capital loss, such overpayment shall be deemed not to

have been made prior to the filing date for the taxable year in

which such net operating loss or net capital loss arises.

(2) Foreign tax credit carrybacks

For purposes of subsection (a), if any overpayment of tax

imposed by subtitle A results from a carryback of tax paid or

accrued to foreign countries or possessions of the United States,

such overpayment shall be deemed not to have been made before the

filing date for the taxable year in which such taxes were in fact

paid or accrued, or, with respect to any portion of such credit

carryback from a taxable year attributable to a net operating

loss carryback or a capital loss carryback from a subsequent

taxable year, such overpayment shall be deemed not to have been

made before the filing date for such subsequent taxable year.

(3) Certain credit carrybacks

(A) In general

For purposes of subsection (a), if any overpayment of tax

imposed by subtitle A results from a credit carryback, such

overpayment shall be deemed not to have been made before the

filing date for the taxable year in which such credit carryback

arises, or, with respect to any portion of a credit carryback

from a taxable year attributable to a net operating loss

carryback, capital loss carryback, or other credit carryback

from a subsequent taxable year, such overpayment shall be

deemed not to have been made before the filing date for such

subsequent taxable year.

(B) Credit carryback defined

For purposes of this paragraph, the term "credit carryback"

has the meaning given such term by section 6511(d)(4)(C).

(4) Special rules for paragraphs (1), (2), and (3)

(A) Filing date

For purposes of this subsection, the term "filing date" means

the last date prescribed for filing the return of tax imposed

by subtitle A for the taxable year (determined without regard

to extensions).

(B) Coordination with subsection (e)

(i) In general

For purposes of subsection (e) -

(I) any overpayment described in paragraph (1), (2), or

(3) shall be treated as an overpayment for the loss year,

(II) such subsection shall be applied with respect to

such overpayment by treating the return for the loss year

as not filed before claim for such overpayment is filed.

(ii) Loss year

For purposes of this subparagraph, the term "loss year"

means -

(I) in the case of a carryback of a net operating loss or

net capital loss, the taxable year in which such loss

arises,

(II) in the case of a carryback of taxes paid or accrued

to foreign countries or possessions of the United States,

the taxable year in which such taxes were in fact paid or

accrued (or, with respect to any portion of such carryback

from a taxable year attributable to a net operating loss

carryback or a capital loss carryback from a subsequent

taxable year, such subsequent taxable year), and

(III) in the case of a credit carryback (as defined in

paragraph (3)(B)), the taxable year in which such credit

carryback arises (or, with respect to any portion of a

credit carryback from a taxable year attributable to a net

operating loss carryback, a capital loss carryback, or

other credit carryback from a subsequent taxable year, such

subsequent taxable year).

(C) Application of subparagraph (B) where section 6411(a) claim

filed

For purposes of subparagraph (B)(i)(II), if a taxpayer -

(i) files a claim for refund of any overpayment described

in paragraph (1), (2), or (3) with respect to the taxable

year to which a loss or credit is carried back, and

(ii) subsequently files an application under section

6411(a) with respect to such overpayment,

then the claim for overpayment shall be treated as having been

filed on the date the application under section 6411(a) was

filed.

(g) No interest until return in processible form

(1) For purposes of subsections (b)(3) and (e), a return shall

not be treated as filed until it is filed in processible form.

(2) For purposes of paragraph (1), a return is in a processible

form if -

(A) such return is filed on a permitted form, and

(B) such return contains -

(i) the taxpayer's name, address, and identifying number

and the required signature, and

(ii) sufficient required information (whether on the return

or on required attachments) to permit the mathematical

verification of tax liability shown on the return.

(h) Prohibition of administrative review

For prohibition of administrative review, see section 6406.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 819; Pub. L. 85-866, title I,

Secs. 42(b), 83(b), (c), Sept. 2, 1958, 72 Stat. 1640, 1664; Pub.

L. 87-834, Sec. 2(e)(4), Oct. 16, 1962, 76 Stat. 972; Pub. L.

88-571, Sec. 3(e), Sept. 2, 1964, 78 Stat. 858; Pub. L. 89-721,

Sec. 1(a), Nov. 2, 1966, 80 Stat. 1150; Pub. L. 90-225, Sec. 2(f),

Dec. 27, 1967, 81 Stat. 732; Pub. L. 91-172, title V, Sec.

512(e)(4), Dec. 30, 1969, 83 Stat. 641; Pub. L. 92-178, title VI,

Sec. 601(d)(4), Dec. 10, 1971, 85 Stat. 559; Pub. L. 93-17, Sec.

3(i)(2), Apr. 10, 1973, 87 Stat. 19; Pub. L. 93-625, Sec.

7(a)(2)(C), Jan. 3, 1975, 88 Stat. 2115; Pub. L. 94-455, title XIX,

Sec. 1904(b)(10)(A)(iv), 1906(b)(13)(A), title XXI, Sec.

2107(g)(2)(D), Oct. 4, 1976, 90 Stat. 1817, 1834, 1904; Pub. L.

95-30, title II, Sec. 202(d)(4)(D), May 23, 1977, 91 Stat. 150;

Pub. L. 95-628, Sec. 8(c)(3), Nov. 10, 1978, 92 Stat. 3632; Pub. L.

96-223, title I, Sec. 101(h), Apr. 2, 1980, 94 Stat. 254; Pub. L.

97-248, title III, Sec. 346(a)-(c)(1), Sept. 3, 1982, 96 Stat. 636,

637; Pub. L. 98-369, div. A, title II, Sec. 211(b)(27), title VII,

Sec. 714(n)(2)(A), July 18, 1984, 98 Stat. 757, 963; Pub. L.

99-514, title XV, Sec. 1511(c)(13), Oct. 22, 1986, 100 Stat. 2745;

Pub. L. 100-418, title I, Sec. 1941(b)(2)(L), Aug. 23, 1988, 102

Stat. 1323; Pub. L. 103-66, title XIII, Sec. 13271(a), Aug. 10,

1993, 107 Stat. 541; Pub. L. 105-34, title X, Sec. 1055(b), Aug. 5,

1997, 111 Stat. 944; Pub. L. 105-206, title VI, Sec. 6010(l), July

22, 1998, 112 Stat. 816; Pub. L. 106-554, Sec. 1(a)(7) [title III,

Sec. 319(20)], Dec. 21, 2000, 114 Stat. 2763, 2763A-647.)

-MISC1-

AMENDMENTS

2000 - Subsec. (g)(1). Pub. L. 106-554 struck out comma after

"(b)(3)".

1998 - Subsec. (g)(1). Pub. L. 105-206 substituted "and (e)" for

"(e), and (h)".

1997 - Subsec. (f)(2), (3). Pub. L. 105-34, Sec. 1055(b)(1),

added par. (2) and redesignated former par. (2) as (3). Former par.

(3) redesignated (4).

Subsec. (f)(4). Pub. L. 105-34, Sec. 1055(b)(1), (2)(A)(i),

redesignated par. (3) as (4) and substituted "paragraphs (1), (2),

and (3)" for "paragraphs (1) and (2)" in heading.

Subsec. (f)(4)(B)(i)(I). Pub. L. 105-34, Sec. 1055(b)(2)(A),

substituted "paragraph (1), (2), or (3)" for "paragraph (1) or

(2)".

Subsec. (f)(4)(B)(ii)(II). Pub. L. 105-34, Sec. 1055(b)(2)(B),

added subcl. (II). Former subcl. (II) redesignated (III).

Subsec. (f)(4)(B)(ii)(III). Pub. L. 105-34, Sec. 1055(b)(2)(B),

(C), redesignated subcl. (II) as (III) and inserted "(as defined in

paragraph (3)(B))" after "case of a credit carryback".

Subsec. (f)(4)(C)(i). Pub. L. 105-34, Sec. 1055(b)(2)(A),

substituted "paragraph (1), (2), or (3)" for "paragraph (1) or

(2)".

Subsecs. (g) to (i). Pub. L. 105-34, Sec. 1055(b)(2)(D),

redesignated subsecs. (h) and (i) as (g) and (h), respectively, and

struck out former subsec. (g) which read as follows:

"(g) Refund of Income Tax Caused by Carryback of Foreign Taxes. -

For purposes of subsection (a), if any overpayment of tax results

from a carryback of tax paid or accrued to foreign countries or

possessions of the United States, such overpayment shall be deemed

not to have been paid or accrued prior to the filing date (as

defined in subsection (f)(3)) for the taxable year under this

subtitle in which such taxes were in fact paid or accrued."

1993 - Subsec. (e). Pub. L. 103-66 amended heading and text of

subsec. (e) generally. Prior to amendment, text read as follows:

"If any overpayment of tax imposed by subtitle A is refunded within

45 days after the last date prescribed for filing the return of

such tax (determined without regard to any extension of time for

filing the return) or, in case the return is filed after such last

date, is refunded within 45 days after the date the return is

filed, no interest shall be allowed under subsection (a) on such

overpayment."

1988 - Subsecs. (h) to (j). Pub. L. 100-418 redesignated subsecs.

(i) and (j) as (h) and (i), respectively, and struck out former

subsec. (h) which related to special rule for windfall profit tax.

1986 - Subsec. (a). Pub. L. 99-514 substituted "the overpayment

rate established under section 6621" for "an annual rate

established under section 6621".

1984 - Subsec. (f)(3)(C). Pub. L. 98-369, Sec. 714(n)(2)(A),

added subpar. (C).

Subsec. (f)(4). Pub. L. 98-369, Sec. 211(b)(27), struck out par.

(4) which provided that for purposes of subsection (a), if any

overpayment of tax imposed by subtitle A arose by operation of

section 815(d)(5) (relating to reduction of policyholders surplus

account of life insurance companies for certain unused deductions),

such overpayment would be deemed not to have been made prior to the

close of the last taxable year to which the loss described in

section 815(d)(5)(A) was carried under section 812(b)(2).

1982 - Subsec. (b)(3). Pub. L. 97-248, Sec. 346(a), added par.

(3).

Subsec. (f)(1). Pub. L. 97-248, Sec. 346(c)(1)(A), substituted

"the filing date for the taxable year" for "the close of the

taxable year".

Subsec. (f)(2)(A). Pub. L. 97-248, Sec. 346(c)(1)(B), substituted

"the filing date for" for "the close of" wherever appearing.

Subsec. (f)(3), (4). Pub. L. 97-248, Sec. 346(c)(1)(C), added

par. (3) and redesignated former par. (3) as (4).

Subsec. (g). Pub. L. 97-248, Sec. 346(c)(1)(D), substituted "the

filing date (as defined in subsection (f)(3)) for the taxable year"

for "the close of the taxable year".

Subsecs. (i), (j). Pub. L. 97-248, Sec. 346(b), added subsec. (i)

and redesignated former subsec. (i) as (j).

1980 - Subsecs. (h), (i). Pub. L. 96-223 added subsec. (h) and

redesignated former subsec. (h) as (i).

1978 - Subsec. (f)(2). Pub. L. 95-628, Sec. 8(c)(3)(A),

substituted in heading "Certain credit carrybacks" for "Investment

credit carryback", designated existing provision as subpar. (A),

and in subpar. (A) as so designated inserted heading "In general"

and extended the application of provision to credit carrybacks,

previously limited to investment credit carrybacks, included other

credit carrybacks, and added subpar. (B).

Subsec. (f)(4), (5). Pub. L. 95-628, Sec. 8(c)(3)(B), struck out

pars. (4) and (5) which provided for work incentive program credit

carrybacks and new employee credit carrybacks, respectively.

1977 - Subsec. (f)(5). Pub. L. 95-30 added par. (5).

1976 - Subsec. (b). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck

out "or his delegate" after "Secretary".

Subsec. (f)(4). Pub. L. 94-455, Sec. 2107(g)(2)(D), inserted ",

an investment credit carryback," after "net operating loss

carryback".

Subsecs. (h), (i). Pub. L. 94-455, Sec. 1904(b)(10)(A)(iv),

redesignated subsec. (i) as (h). Former subsec. (h), which related

to a refund within 45 days after filing claim for refund of

interest equalization tax paid on securities sold to foreigners,

was struck out.

1975 - Subsec. (a). Pub. L. 93-625 substituted "an annual rate

established under section 6621" for "the rate of 6 percent per

annum".

1973 - Subsecs. (h), (i). Pub. L. 93-17 added subsec. (h) and

redesignated former subsec. (h) as (i).

1971 - Subsec. (f)(4). Pub. L. 92-178 added par. (4).

1969 - Subsec. (f)(1). Pub. L. 91-172, Sec. 512(e)(4)(A), (B),

substituted "loss or capital loss carryback" for "loss carryback"

in heading, and "net operating loss or net capital loss" for "net

operating loss" wherever appearing in text.

Subsec. (f)(2). Pub. L. 91-172, Sec. 512(e)(4)(C), substituted

"loss carryback or a capital loss carryback" for "loss carryback".

1967 - Subsec. (f)(2). 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, such overpayment shall be deemed not to

have been made prior to the close of such subsequent taxable year"

after "such investment credit carryback arises".

1966 - Subsec. (e). Pub. L. 89-721 inserted "or, in case the

return is filed after such last date, is refunded within 45 days

after the date the return is filed" after "(determined without

regard to any extension of time for filing the return)" and changed

heading to reflect amendment.

1964 - Subsec. (f). Pub. L. 88-571 added par. (3) and inserted

"or adjustment for certain unused deductions" in heading.

1962 - Subsec. (f). Pub. L. 87-834 designated existing provisions

as par. (1) and added par. (2).

1958 - Subsec. (b)(1). Pub. L. 85-866, Sec. 83(b), struck out ",

but if the amount against which the credit is taken is an

additional assessment, then to the date of the assessment of that

amount" after "taken".

Subsec. (c). Pub. L. 85-866, Sec. 83(c), repealed subsec. (c)

which defined "additional assessment".

Subsecs. (g), (h). Pub. L. 85-866, Sec. 42(b), added subsec. (g)

and redesignated former subsec. (g) as (h).

EFFECTIVE DATE OF 1998 AMENDMENT

Amendment by Pub. L. 105-206 effective, except as otherwise

provided, as if included in the provisions of the Taxpayer Relief

Act of 1997, Pub. L. 105-34, to which such amendment relates, see

section 6024 of Pub. L. 105-206, set out as a note under section 1

of this title.

EFFECTIVE DATE OF 1997 AMENDMENT

Amendment by Pub. L. 105-34 applicable to foreign tax credit

carrybacks arising in taxable years beginning after Aug. 5, 1997,

see section 1055(c) of Pub. L. 105-34, set out as a note under

section 6601 of this title.

EFFECTIVE DATE OF 1993 AMENDMENT

Section 13271(b) of Pub. L. 103-66 provided that:

"(1) Paragraph (1) of section 6611(e) of the Internal Revenue

Code of 1986 (as amended by subsection (a)) shall apply in the case

of returns the due date for which (determined without regard to

extensions) is on or after January 1, 1994.

"(2) Paragraph (2) of section 6611(e) of such Code (as so

amended) shall apply in the case of claims for credit or refund of

any overpayment filed on or after January 1, 1995, regardless of

the taxable period to which such refund relates.

"(3) Paragraph (3) of section 6611(e) of such Code (as so

amended) shall apply in the case of any refund paid on or after

January 1, 1995, regardless of the taxable period to which such

refund relates."

EFFECTIVE DATE OF 1988 AMENDMENT

Amendment by Pub. L. 100-418 applicable to crude oil removed from

the premises on or after Aug. 23, 1988, see section 1941(c) of Pub.

L. 100-418, set out as a note under section 164 of this title.

EFFECTIVE DATE OF 1986 AMENDMENT

Amendment by Pub. L. 99-514 applicable for purposes of

determining interest for periods after Dec. 31, 1986, see section

1511(d) of Pub. L. 99-514, set out as a note under section 47 of

this title.

EFFECTIVE DATE OF 1984 AMENDMENTS

Amendment by section 211(b)(27) of Pub. L. 98-369 applicable to

taxable years beginning after Dec. 31, 1983, see section 215 of

Pub. L. 98-369, set out as an Effective Date note under section 801

of this title.

Amendment by section 714(n)(2)(A) 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.

Section 1875(d)(3) of Pub. L. 99-514 provided that:

"Notwithstanding section 715 of the Tax Reform Act of 1984 [Pub. L.

98-369], the amendments made by section 714(n)(2) of such Act

[amending this section and section 6411 of this title] shall apply

only to applications filed after July 18, 1984."

EFFECTIVE DATE OF 1982 AMENDMENT

Section 346(d) of Pub. L. 97-248 provided that:

"(1) In general. - The amendments made by subsections (a) and (b)

[amending this section] shall apply to returns filed after the 30th

day after the date of the enactment of this Act [Sept. 3, 1982].

"(2) Subsection (c). - The amendments made by subsection (c)

[amending this section and section 6601 of this title] shall apply

to interest accruing after the 30th day after the date of the

enactment of this Act [Sept. 3, 1982]."

EFFECTIVE DATE OF 1980 AMENDMENT

Amendment by Pub. L. 96-223 applicable to periods after Feb. 29,

1980, see section 101(i) of Pub. L. 96-223, set out as a note under

section 6161 of this title.

EFFECTIVE DATE OF 1978 AMENDMENT

Amendment by Pub. L. 95-628 applicable to carrybacks arising in

taxable years beginning after Nov. 10, 1978, see section 8(d) of

Pub. L. 95-628, set out as a note under section 6511 of this title.

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 1975 AMENDMENT

Amendment by Pub. L. 93-625 effective July 1, 1975, and

applicable to amounts outstanding on such date or arising

thereafter, see section 7(e) of Pub. L. 93-625, set out as an

Effective Date note under section 6621 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 1(b) of Pub. L. 89-721 provided that: "The amendment made

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

to refunds made more than 45 days after the date of the enactment

of this Act [Nov. 2, 1966]."

EFFECTIVE DATE OF 1964 AMENDMENT

Amendment by Pub. L. 88-571 effective, with respect to amounts

added to policyholders surplus accounts, for taxable years

beginning after Dec. 31, 1958, see section 3(f) of Pub. L. 88-571,

set out as a note under section 815 of this title.

EFFECTIVE DATE OF 1962 AMENDMENT

Amendment by Pub. L. 87-834 applicable with respect to taxable

years ending after Dec. 31, 1961, see section 2(h) of Pub. L.

87-834, set out as an Effective Date note under section 46 of this

title.

EFFECTIVE DATE OF 1958 AMENDMENT

Amendment by section 42(b) of Pub. L. 85-866 applicable only with

respect to taxable years beginning after Dec. 31, 1957, see section

42(c) of Pub. L. 85-866, set out as a note under section 904 of

this title.

Amendment by section 83(b), (c) of Pub. L. 85-866 applicable only

in respect of overpayments credited after Dec. 31, 1957, see

section 83(d) of Pub. L. 85-866, set out as a note under section

6601 of this title.

NO INTEREST ON INDIVIDUAL INCOME TAX REFUNDS FOR 1974 REFUNDED

WITHIN 60 DAYS AFTER RETURN IS FILED

Pub. L. 94-12, title I, Sec. 101(b), Mar. 29, 1975, 89 Stat. 28,

as amended by Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat.

2095, provided that: "In applying section 6611(e) of the Internal

Revenue Code of 1986 [formerly I.R.C. 1954] (relating to income tax

refund within 45 days after return is filed) in the case of any

overpayment of tax imposed by subtitle A of such Code by an

individual (other than an estate or trust and other than a

nonresident alien individual) for a taxable year beginning in 1974,

'60 days' shall be substituted for '45 days' each place it appears

in such section 6611(e)."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 815, 6411, 6601, 7508 of

this title.

-End-

-CITE-

26 USC Sec. 6612 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 67 - INTEREST

Subchapter B - Interest on Overpayments

-HEAD-

Sec. 6612. Cross references

-STATUTE-

(a) Interest on judgments for overpayments

For interest on judgments for overpayments, see 28 U.S.C.

2411(a).

(b) Adjustments

For provisions prohibiting interest on certain adjustments in

tax, see section 6413(a).

(c) Other restrictions on interest

For other restrictions on interest, see section 2011(c)

(relating to refunds due to credit for State taxes), 2014(e)

(relating to refunds attributable to foreign tax credits), 6412

(relating to floor stock refunds), 6413(d) (relating to taxes

under the Federal Unemployment Tax Act), 6416 (relating to

certain taxes on sales and services), 6419 (relating to the

excise tax on wagering), and 6420 (relating to payments in the

case of gasoline used on the farm for farming purposes), and

6421 (relating to payments in the case of gasoline used for

certain nonhighway purposes or by local transit systems).

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 820; Apr. 2, 1956, ch. 160, Sec.

4(f), 70 Stat. 91; June 29, 1956, ch. 462, title II, Sec.

208(e)(7), 70 Stat. 397; Pub. L. 107-16, title V, Sec. 532(c)(12),

June 7, 2001, 115 Stat. 75.)

-STATAMEND-

AMENDMENT OF SUBSECTION (C)

Pub. L. 107-16, title V, Sec. 532(c)(12), (d), title IX, Sec.

901, June 7, 2001, 115 Stat. 75, 150, provided that, applicable to

estates of decedents dying, and generation-skipping transfers,

after Dec. 31, 2004, subsection (c) of this section is temporarily

amended by striking out "section 2011(c) (relating to refunds due

to credit for State taxes)," after "see". See Effective and

Termination Dates of 2001 Amendment note below.

-REFTEXT-

REFERENCES IN TEXT

The Federal Unemployment Tax Act, referred to in subsec. (c), is

act Aug. 16, 1954, ch. 736, Secs. 3301 to 3311, 68A Stat. 454, as

amended, which is classified generally to chapter 23 (Sec. 3301 et

seq.) of this title. For complete classification of this Act to the

Code, see section 3311 of this title and Tables.

-MISC1-

AMENDMENTS

1956 - Subsec. (c). Act June 29, 1956, inserted reference to

section 6421 of this title.

Act Apr. 2, 1956, inserted reference to section 6420 of this

title.

EFFECTIVE AND TERMINATION DATES OF 2001 AMENDMENT

Amendment by Pub. L. 107-16 applicable to estates of decedents

dying, and generation-skipping transfers, after Dec. 31, 2004, see

section 532(d) of Pub. L. 107-16, set out as a note under section

2011 of this title.

Amendment by Pub. L. 107-16 inapplicable to estates of decedents

dying, gifts made, or generation skipping transfers, after Dec. 31,

2010, and the Internal Revenue Code of 1986 to be applied and

administered to such estates, gifts, and transfers as if such

amendment had never been enacted, see section 901 of Pub. L.

107-16, set out as a note under section 1 of this title.

EFFECTIVE DATE OF 1956 AMENDMENT

Amendment by act June 29, 1956, effective June 29, 1956, see

section 211 of act June 29, 1956, set out as an Effective Date note

under section 4041 of this title.

-End-

-CITE-

26 USC Subchapter C - Determination of Interest Rate;

Compounding of Interest 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 67 - INTEREST

Subchapter C - Determination of Interest Rate; Compounding of

Interest

-HEAD-

SUBCHAPTER C - DETERMINATION OF INTEREST RATE; COMPOUNDING OF

INTEREST

-MISC1-

Sec.

6621. Determination of rate of interest.

6622. Interest compounded daily.

AMENDMENTS

1982 - Pub. L. 97-248, title III, Sec. 344(b)(3)(A), Sept. 3,

1982, 96 Stat. 636, inserted "; Compounding of Interest" after

"Rate" in heading for subchapter C.

Pub. L. 97-248, title III, Sec. 344(b)(2), Sept. 3, 1982, 96

Stat. 636, added item 6622.

-End-

-CITE-

26 USC Sec. 6621 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 67 - INTEREST

Subchapter C - Determination of Interest Rate; Compounding of

Interest

-HEAD-

Sec. 6621. Determination of rate of interest

-STATUTE-

(a) General rule

(1) Overpayment rate

The overpayment rate established under this section shall be

the sum of -

(A) the Federal short-term rate determined under subsection

(b), plus

(B) 3 percentage points (2 percentage points in the case of a

corporation).

To the extent that an overpayment of tax by a corporation for any

taxable period (as defined in subsection (c)(3), applied by

substituting "overpayment" for "underpayment") exceeds $10,000,

subparagraph (B) shall be applied by substituting "0.5 percentage

point" for "2 percentage points".

(2) Underpayment rate

The underpayment rate established under this section shall be

the sum of -

(A) the Federal short-term rate determined under subsection

(b), plus

(B) 3 percentage points.

(b) Federal short-term rate

For purposes of this section -

(1) General rule

The Secretary shall determine the Federal short-term rate for

the first month in each calendar quarter.

(2) Period during which rate applies

(A) In general

Except as provided in subparagraph (B), the Federal

short-term rate determined under paragraph (1) for any month

shall apply during the first calendar quarter beginning after

such month.

(B) Special rule for individual estimated tax

In determining the addition to tax under section 6654 for

failure to pay estimated tax for any taxable year, the Federal

short-term rate which applies during the 3rd month following

such taxable year shall also apply during the first 15 days of

the 4th month following such taxable year.

(3) Federal short-term rate

The Federal short-term rate for any month shall be the Federal

short-term rate determined during such month by the Secretary in

accordance with section 1274(d). Any such rate shall be rounded

to the nearest full percent (or, if a multiple of 1/2 of 1

percent, such rate shall be increased to the next highest full

percent).

(c) Increase in underpayment rate for large corporate underpayments

(1) In general

For purposes of determining the amount of interest payable

under section 6601 on any large corporate underpayment for

periods after the applicable date, paragraph (2) of subsection

(a) shall be applied by substituting "5 percentage points" for "3

percentage points".

(2) Applicable date

For purposes of this subsection -

(A) In general

The applicable date is the 30th day after the earlier of -

(i) the date on which the 1st letter of proposed deficiency

which allows the taxpayer an opportunity for administrative

review in the Internal Revenue Service Office of Appeals is

sent, or

(ii) the date on which the deficiency notice under section

6212 is sent.

The preceding sentence shall be applied without regard to any

such letter or notice which is withdrawn by the Secretary.

(B) Special rules

(i) Nondeficiency procedures

In the case of any underpayment of any tax imposed by this

title to which the deficiency procedures do not apply,

subparagraph (A) shall be applied by taking into account any

letter or notice provided by the Secretary which notifies the

taxpayer of the assessment or proposed assessment of the tax.

(ii) Exception where amounts paid in full

For purposes of subparagraph (A), a letter or notice shall

be disregarded if, during the 30-day period beginning on the

day on which it was sent, the taxpayer makes a payment equal

to the amount shown as due in such letter or notice, as the

case may be.

(iii) Exception for letters or notices involving small

amounts

For purposes of this paragraph, any letter or notice shall

be disregarded if the amount of the deficiency or proposed

deficiency (or the assessment or proposed assessment) set

forth in such letter or notice is not greater than $100,000

(determined by not taking into account any interest,

penalties, or additions to tax).

(3) Large corporate underpayment

For purposes of this subsection -

(A) In general

The term "large corporate underpayment" means any

underpayment of a tax by a C corporation for any taxable period

if the amount of such underpayment for such period exceeds

$100,000.

(B) Taxable period

For purposes of subparagraph (A), the term "taxable period"

means -

(i) in the case of any tax imposed by subtitle A, the

taxable year, or

(ii) in the case of any other tax, the period to which the

underpayment relates.

(d) Elimination of interest on overlapping periods of tax

overpayments and underpayments

To the extent that, for any period, interest is payable under

subchapter A and allowable under subchapter B on equivalent

underpayments and overpayments by the same taxpayer of tax imposed

by this title, the net rate of interest under this section on such

amounts shall be zero for such period.

-SOURCE-

(Added Pub. L. 93-625, Sec. 7(a)(1), Jan. 3, 1975, 88 Stat. 2114;

amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4,

1976, 90 Stat. 1834; Pub. L. 96-167, Sec. 4(b), Dec. 29, 1979, 93

Stat. 1275; Pub. L. 97-34, title VII, Sec. 711(a)-(c), Aug. 13,

1981, 95 Stat. 340; Pub. L. 97-248, title III, Sec. 345(a), Sept.

3, 1982, 96 Stat. 636; Pub. L. 98-369, div. A, title I, Sec.

144(a), July 18, 1984, 98 Stat. 682; Pub. L. 99-514, title XV,

Secs. 1511(a), (c)(1), 1535(a), Oct. 22, 1986, 100 Stat. 2744,

2750; Pub. L. 100-647, title I, Sec. 1015(d), Nov. 10, 1988, 102

Stat. 3569; Pub. L. 101-239, title VII, Sec. 7721(b), Dec. 19,

1989, 103 Stat. 2399; Pub. L. 101-508, title XI, Sec. 11341(a),

Nov. 5, 1990, 104 Stat. 1388-470; Pub. L. 103-465, title VII, Sec.

713(a), Dec. 8, 1994, 108 Stat. 5001; Pub. L. 104-188, title I,

Sec. 1702(c)(6), (7), Aug. 20, 1996, 110 Stat. 1870; Pub. L.

105-34, title XIV, Sec. 1463(a), title XVI, Sec. 1604(b)(1), Aug.

5, 1997, 111 Stat. 1057, 1097; Pub. L. 105-206, title III, Secs.

3301(a), 3302(a), July 22, 1998, 112 Stat. 741.)

-MISC1-

AMENDMENTS

1998 - Subsec. (a)(1)(B). Pub. L. 105-206, Sec. 3302(a), amended

subpar. (B) generally. Prior to amendment, subpar. (B) read as

follows: "2 percentage points."

Subsec. (d). Pub. L. 105-206, Sec. 3301(a), added subsec. (d).

1997 - Subsec. (a)(1). Pub. L. 105-34, Sec. 1604(b)(1),

substituted "subsection (c)(3), applied by substituting

'overpayment' for 'underpayment')" for "subsection (c)(3))" in

concluding provisions.

Subsec. (c)(2)(B)(iii). Pub. L. 105-34, Sec. 1463(a), added cl.

(iii).

1996 - Subsec. (c)(2)(A). Pub. L. 104-188, Sec. 1702(c)(6),

inserted closing provisions "The preceding sentence shall be

applied without regard to any such letter or notice which is

withdrawn by the Secretary."

Subsec. (c)(2)(B)(i). Pub. L. 104-188, Sec. 1702(c)(7),

substituted "this title" for "this subtitle".

1994 - Subsec. (a)(1). Pub. L. 103-465 inserted concluding

provisions.

1990 - Subsec. (c). Pub. L. 101-508 added subsec. (c).

1989 - Subsec. (c). Pub. L. 101-239 repealed subsec. (c) which

related to attribution of interest on substantial underpayments to

tax motivated transactions.

1988 - Subsec. (a)(1)(A), (2)(A). Pub. L. 100-647, Sec.

1015(d)(1), substituted "Federal short-term" for "short-term

Federal".

Subsec. (b). Pub. L. 100-647, Sec. 1015(d)(2), substituted

"Federal short-term" for "short-term Federal" in heading.

Subsec. (b)(1). Pub. L. 100-647, Sec. 1015(d)(1), substituted

"Federal short-term" for "short-term Federal".

1986 - Subsec. (a). Pub. L. 99-514, Sec. 1511(a), added subsec.

(a) and struck out former subsec. (a) which read as follows: "The

annual rate established under this section shall be such adjusted

rate as is established by the Secretary under subsection (b)."

Subsec. (b). Pub. L. 99-514, Sec. 1511(a), added subsec. (b)

relating to determination of Federal short-term rate and struck out

former subsec. (b) which related to interest rate adjustments and

establishment of adjusted rates.

Subsec. (c). Pub. L. 99-514, Sec. 1511(a), (c)(1), redesignated

subsec. (d) as (c), in par. (1), struck out "annual" before "rate

of interest" and substituted "the underpayment rate established

under this section" for "the adjusted rate established under

subsection (b)", and struck out former subsec. (c) definition of

prime rate, which read as follows: "For purposes of subsection (b),

the term 'adjusted prime rate charged by banks' means the average

predominant prime rate quoted by commercial banks to large

businesses, as determined by the Board of Governors of the Federal

Reserve System."

Subsec. (c)(3)(A)(v). Pub. L. 99-514, Sec. 1535(a), added cl.

(v).

Subsec. (d). Pub. L. 99-514, Sec. 1511(c)(1)(A), redesignated

subsec. (d) as (c).

1984 - Subsec. (d). Pub. L. 98-369 added subsec. (d).

1982 - Subsec. (b). Pub. L. 97-248 substituted provisions that if

the adjusted prime rate charged by banks (rounded to the nearest

full percent) during the 6-month period ending on September 30 of

any calendar year, or during the 6-month period ending on March 31

of any calendar year, differs from the interest rate in effect

under this section on either such date, respectively, then the

Secretary shall establish, within 15 days after the close of the

applicable 6-month period, an adjusted rate of interest equal to

such adjusted prime rate, and that any adjusted rate of interest

established under paragraph (1) shall become effective on January 1

of the succeeding year in the case of an adjustment attributable to

paragraph (1)(A), and on July 1 of the same year in the case of an

adjustment attributable to paragraph (1)(B), for provisions that

the Secretary was to establish an adjusted rate of interest for the

purpose of subsection (a) not later than October 15 of any year if

the adjusted prime rate charged by banks during September of that

year, rounded to the nearest full percent, was at least a full

percentage point more or less than the interest rate which was then

in effect, and that any such adjusted rate of interest would be

equal to the adjusted prime rate charged by banks, rounded to the

nearest full percent, and would become effective on January 1 of

the immediately succeeding year.

1981 - Subsec. (b). Pub. L. 97-34, Sec. 711(a), struck out

provision that an adjustment provided for under this subsection not

be made prior to the expiration of 23 months following the date of

any preceding adjustment under this subsection which changes the

rate of interest.

Pub. L. 97-34, Sec. 711(c), substituted "January 1" for "February

1".

Subsec. (c). Pub. L. 97-34, Sec. 711(b), struck out "90 percent

of" before "the average predominant prime rate".

1979 - Subsec. (a). Pub. L. 96-167 substituted provisions setting

the annual rate established under this section to be such adjusted

rate as is established by the Secretary under subsec. (b) of this

section for provision that the rate of interest under sections

6601(a), 6602, 6611(a), 6332(c)(1), and 7426(g) of this title, and

under section 2411(a) of title 28 was to be 9 percent per annum, or

such adjusted rate as was established by the Secretary under

subsection (b).

1976 - Subsecs. (a), (b). Pub. L. 94-455 struck out "or his

delegate" after "Secretary".

EFFECTIVE DATE OF 1998 AMENDMENT

Amendment by section 3301(a) of Pub. L. 105-206 applicable to

interest for periods beginning after July 22, 1998, and, subject to

applicable statutes of limitation, to interest for periods

beginning before July 22, 1998, if taxpayer reasonably identifies

and establishes periods of overpayments and underpayments for which

zero rate applies, and not later than Dec. 31, 1999, requests

application of subsec. (d) of this section to such periods, see

section 3301(c) of Pub. L. 105-206, set out as a note under section

6601 of this title.

Pub. L. 105-206, title III, Sec. 3302(b), July 22, 1998, 112

Stat. 742, provided that: "The amendment made by this section

[amending this section] shall apply to interest for the second and

succeeding calendar quarters beginning after the date of the

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

EFFECTIVE DATE OF 1997 AMENDMENT

Section 1463(b) of Pub. L. 105-34 provided that: "The amendment

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

purposes of determining interest for periods after December 31,

1997."

Amendment by section 1604(b)(1) of Pub. L. 105-34 effective as if

included in the sections of the Uruguay Round Agreements Act, Pub.

L. 103-465, to which it relates, see section 1604(b)(4) of Pub. L.

105-34, set out as a note under section 412 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 1994 AMENDMENT

Section 713(b) of Pub. L. 103-465 provided that: "The amendment

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

purposes of determining interest for periods after December 31,

1994."

EFFECTIVE DATE OF 1990 AMENDMENT

Section 11341(b) of Pub. L. 101-508 provided that: "The amendment

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

purposes of determining interest for periods after December 31,

1990."

EFFECTIVE DATE OF 1989 AMENDMENT

Amendment by Pub. L. 101-239 applicable to returns the due date

for which (determined without regard to extensions) is after Dec.

31, 1989, see section 7721(d) of Pub. L. 101-239, set out as a note

under section 461 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 1511(a), (c)(1) of Pub. L. 99-514 applicable

for purposes of determining interest for periods after Dec. 31,

1986, see section 1511(d) of Pub. L. 99-514, set out as a note

under section 47 of this title.

Section 1535(b) of Pub. L. 99-514 provided that: "The amendment

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

interest accruing after December 31, 1984; except that such

amendment shall not apply in the case of any underpayment with

respect to which there was a final court decision before the date

of the enactment of this Act [Oct. 22, 1986]."

EFFECTIVE DATE OF 1984 AMENDMENT

Section 144(c) of Pub. L. 98-369 provided that: "The amendments

made by this section [amending this section and section 6214 of

this title] shall apply with respect to interest accruing after

December 31, 1984."

EFFECTIVE DATE OF 1982 AMENDMENT

Section 345(b) of Pub. L. 97-248, as amended by Pub. L. 98-369,

div. A, title VII, Sec. 714(m), July 18, 1984, 98 Stat. 963,

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

section] shall apply to adjustments taking effect on or after

January 1, 1983."

EFFECTIVE DATE OF 1981 AMENDMENT

Section 711(d) of Pub. L. 97-34 provided that:

"(1) For subsections (a) and (b). - The amendments made by

subsections (a) and (b) [amending this section] shall apply to

adjustments made after the date of the enactment of this Act [Aug.

13, 1981].

"(2) For subsection (c). - The amendment made by subsection (c)

[amending this section] shall apply to adjustments made for periods

after 1982."

EFFECTIVE DATE OF 1979 AMENDMENT

Section 4(c)(2) of Pub. L. 96-167 provided that: "The amendment

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

the date of the enactment of this Act [Dec. 29, 1979]."

EFFECTIVE DATE

Section 7(e) of Pub. L. 93-625 provided that: "The amendments

made by this section [enacting this section and amending sections

514, 6163, 6166, 6167, 6332, 6504, 6601, 6602, 6611, 6654, 6655,

and 7426 of this title and section 2411 of Title 28, Judiciary and

Judicial Procedure] shall take effect on July 1, 1975, and apply to

amounts outstanding on such date or arising thereafter."

REGULATIONS

Section 1511(b) of Pub. L. 99-514 provided that: "The Secretary

of the Treasury or his delegate may issue regulations to coordinate

section 6621 of the Internal Revenue Code of 1954 [now 1986] (as

amended by this section) with section 6601(f) of such Code. Such

regulations shall not apply to any period after the date 3 years

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

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 42, 45D, 148, 412, 453A,

460, 664, 668, 852, 1258, 1291, 2057, 6325, 6332, 6343, 6427, 6601,

6602, 6611, 6654, 6655, 7426 of this title; title 5 section 5596;

title 10 section 2306a; title 14 section 830; title 15 sections

1116, 1117; title 19 sections 1557, 1592, 1593a, 1677g; title 28

sections 1961, 2411, 2644; title 29 sections 1083, 1084, 1132;

title 30 sections 934, 1721; title 41 sections 254b, 422; title 42

sections 7413, 7511d, 7524, 7661a.

-End-

-CITE-

26 USC Sec. 6622 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 67 - INTEREST

Subchapter C - Determination of Interest Rate; Compounding of

Interest

-HEAD-

Sec. 6622. Interest compounded daily

-STATUTE-

(a) General rule

In computing the amount of any interest required to be paid under

this title or sections 1961(c)(1) or 2411 of title 28, United

States Code, by the Secretary or by the taxpayer, or any other

amount determined by reference to such amount of interest, such

interest and such amount shall be compounded daily.

(b) Exception for penalty for failure to file estimated tax

Subsection (a) shall not apply for purposes of computing the

amount of any addition to tax under section 6654 or 6655.

-SOURCE-

(Added Pub. L. 97-248, title III, Sec. 344(a), Sept. 3, 1982, 96

Stat. 635.)

-MISC1-

EFFECTIVE DATE

Section 344(c) of Pub. L. 97-248 provided that: "The amendments

made by this section [enacting this section and amending section

6601 of this title] shall apply to interest accruing after December

31, 1982."

-End-

-CITE-

26 USC Subchapter D - Notice Requirements 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 67 - INTEREST

Subchapter D - Notice Requirements

-HEAD-

SUBCHAPTER D - NOTICE REQUIREMENTS

-MISC1-

Sec.

6631. Notice requirements.

AMENDMENTS

2000 - Pub. L. 106-554, Sec. 1(a)(7) [title III, Sec. 319(22)],

Dec. 21, 2000, 114 Stat. 2763, 2763A-647, substituted

"Requirements" for "requirements" in subchapter heading.

-End-

-CITE-

26 USC Sec. 6631 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 67 - INTEREST

Subchapter D - Notice Requirements

-HEAD-

Sec. 6631. Notice requirements

-STATUTE-

The Secretary shall include with each notice to an individual

taxpayer which includes an amount of interest required to be paid

by such taxpayer under this title information with respect to the

section of this title under which the interest is imposed and a

computation of the interest.

-SOURCE-

(Added Pub. L. 105-206, title III, Sec. 3308(a), July 22, 1998, 112

Stat. 745.)

-MISC1-

EFFECTIVE DATE

Pub. L. 105-206, title III, Sec. 3308(c), July 22, 1998, 112

Stat. 745, as amended by Pub. L. 106-554, Sec. 1(a)(7) [title III,

Sec. 302(c)], Dec. 21, 2000, 114 Stat. 2763, 2763A-632, provided

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

subchapter] shall apply to notices issued after June 30, 2001. In

the case of any notice issued after June 30, 2001, and before July

1, 2003, to which section 6631 of the Internal Revenue Code of 1986

applies, the requirements of section 6631 of such Code shall be

treated as met if such notice contains a telephone number at which

the taxpayer can request a copy of the taxpayer's payment history

relating to interest amounts included in such notice."

-End-