26 U.S.C. § 6511 : US Code - Section 6511: Limitations on credit or refund

Search 26 U.S.C. § 6511 : US Code - Section 6511: Limitations on credit or refund

    (a) Period of limitation on filing claim
      Claim for credit or refund of an overpayment of any tax imposed
    by this title in respect of which tax the taxpayer is required to
    file a return shall be filed by the taxpayer within 3 years from
    the time the return was filed or 2 years from the time the tax was
    paid, whichever of such periods expires the later, or if no return
    was filed by the taxpayer, within 2 years from the time the tax was
    paid. Claim for credit or refund of an overpayment of any tax
    imposed by this title which is required to be paid by means of a
    stamp shall be filed by the taxpayer within 3 years from the time
    the tax was paid.
    (b) Limitation on allowance of credits and refunds
      (1) Filing of claim within prescribed period
        No credit or refund shall be allowed or made after the
      expiration of the period of limitation prescribed in subsection
      (a) for the filing of a claim for credit or refund, unless a
      claim for credit or refund is filed by the taxpayer within such
      period.
      (2) Limit on amount of credit or refund
        (A) Limit where claim filed within 3-year period
          If the claim was filed by the taxpayer during the 3-year
        period prescribed in subsection (a), the amount of the credit
        or refund shall not exceed the portion of the tax paid within
        the period, immediately preceding the filing of the claim,
        equal to 3 years plus the period of any extension of time for
        filing the return. If the tax was required to be paid by means
        of a stamp, the amount of the credit or refund shall not exceed
        the portion of the tax paid within the 3 years immediately
        preceding the filing of the claim.
        (B) Limit where claim not filed within 3-year period
          If the claim was not filed within such 3-year period, the
        amount of the credit or refund shall not exceed the portion of
        the tax paid during the 2 years immediately preceding the
        filing of the claim.
        (C) Limit if no claim filed
          If no claim was filed, the credit or refund shall not exceed
        the amount which would be allowable under subparagraph (A) or
        (B), as the case may be, if claim was filed on the date the
        credit or refund is allowed.
    (c) Special rules applicable in case of extension of time by
      agreement
      If an agreement under the provisions of section 6501(c)(4)
    extending the period for assessment of a tax imposed by this title
    is made within the period prescribed in subsection (a) for the
    filing of a claim for credit or refund - 
      (1) Time for filing claim
        The period for filing claim for credit or refund or for making
      credit or refund if no claim is filed, provided in subsections
      (a) and (b)(1), shall not expire prior to 6 months after the
      expiration of the period within which an assessment may be made
      pursuant to the agreement or any extension thereof under section
      6501(c)(4).
      (2) Limit on amount
        If a claim is filed, or a credit or refund is allowed when no
      claim was filed, after the execution of the agreement and within
      6 months after the expiration of the period within which an
      assessment may be made pursuant to the agreement or any extension
      thereof, the amount of the credit or refund shall not exceed the
      portion of the tax paid after the execution of the agreement and
      before the filing of the claim or the making of the credit or
      refund, as the case may be, plus the portion of the tax paid
      within the period which would be applicable under subsection
      (b)(2) if a claim had been filed on the date the agreement was
      executed.
      (3) Claims not subject to special rule
        This subsection shall not apply in the case of a claim filed,
      or credit or refund allowed if no claim is filed, either - 
          (A) prior to the execution of the agreement or
          (B) more than 6 months after the expiration of the period
        within which an assessment may be made pursuant to the
        agreement or any extension thereof.
    (d) Special rules applicable to income taxes
      (1) Seven-year period of limitation with respect to bad debts and
        worthless securities
        If the claim for credit or refund relates to an overpayment of
      tax imposed by subtitle A on account of - 
          (A) The deductibility by the taxpayer, under section 166 or
        section 832(c), of a debt as a debt which became worthless, or,
        under section 165(g), of a loss from worthlessness of a
        security, or
          (B) The effect that the deductibility of a debt or loss
        described in subparagraph (A) has on the application to the
        taxpayer of a carryover,

      in lieu of the 3-year period of limitation prescribed in
      subsection (a), the period shall be 7 years from the date
      prescribed by law for filing the return for the year with respect
      to which the claim is made. If the claim for credit or refund
      relates to an overpayment on account of the effect that the
      deductibility of such a debt or loss has on the application to
      the taxpayer of a carryback, the period shall be either 7 years
      from the date prescribed by law for filing the return for the
      year of the net operating loss which results in such carryback or
      the period prescribed in paragraph (2) of this subsection,
      whichever expires the later. In the case of a claim described in
      this paragraph the amount of the credit or refund may exceed the
      portion of the tax paid within the period prescribed in
      subsection (b)(2) or (c), whichever is applicable, to the extent
      of the amount of the overpayment attributable to the
      deductibility of items described in this paragraph.
      (2) Special period of limitation with respect to net operating
        loss or capital loss carrybacks
        (A) Period of limitation
          If the claim for credit or refund relates to an overpayment
        attributable to a net operating loss carryback or a capital
        loss carryback, in lieu of the 3-year period of limitation
        prescribed in subsection (a), the period shall be that period
        which ends 3 years after the time prescribed by law for filing
        the return (including extensions thereof) for the taxable year
        of the net operating loss or net capital loss which results in
        such carryback, or the period prescribed in subsection (c) in
        respect of such taxable year, whichever expires later. In the
        case of such a claim, the amount of the credit or refund may
        exceed the portion of the tax paid within the period provided
        in subsection (b)(2) or (c), whichever is applicable, to the
        extent of the amount of the overpayment attributable to such
        carryback.
        (B) Applicable rules
          (i) In general
            If the allowance of a credit or refund of an overpayment of
          tax attributable to a net operating loss carryback or a
          capital loss carryback is otherwise prevented by the
          operation of any law or rule of law other than section 7122
          (relating to compromises), such credit or refund may be
          allowed or made, if claim therefor is filed within the period
          provided in subparagraph (A) of this paragraph.
          (ii) Tentative carryback adjustments
            If the allowance of an application, credit, or refund of a
          decrease in tax determined under section 6411(b) is otherwise
          prevented by the operation of any law or rule of law other
          than section 7122, such application, credit, or refund may be
          allowed or made if application for a tentative carryback
          adjustment is made within the period provided in section
          6411(a).
          (iii) Determinations by courts to be conclusive
            In the case of any such claim for credit or refund or any
          such application for a tentative carryback adjustment, the
          determination by any court, including the Tax Court, in any
          proceeding in which the decision of the court has become
          final, shall be conclusive except with respect to - 
              (I) the net operating loss deduction and the effect of
            such deduction, and
              (II) the determination of a short-term capital loss and
            the effect of such short-term capital loss, to the extent
            that such deduction or short-term capital loss is affected
            by a carryback which was not an issue in such proceeding.
      (3) Special rules relating to foreign tax credit
        (A) Special period of limitation with respect to foreign taxes
          paid or accrued
          If the claim for credit or refund relates to an overpayment
        attributable to any taxes paid or accrued to any foreign
        country or to any possession of the United States for which
        credit is allowed against the tax imposed by subtitle A in
        accordance with the provisions of section 901 or the provisions
        of any treaty to which the United States is a party, in lieu of
        the 3-year period of limitation prescribed in subsection (a),
        the period shall be 10 years from the date prescribed by law
        for filing the return for the year in which such taxes were
        actually paid or accrued.
        (B) Exception in the case of foreign taxes paid or accrued
          In the case of a claim described in subparagraph (A), the
        amount of the credit or refund may exceed the portion of the
        tax paid within the period provided in subsection (b) or (c),
        whichever is applicable, to the extent of the amount of the
        overpayment attributable to the allowance of a credit for the
        taxes described in subparagraph (A).
      (4) Special period of limitation with respect to certain credit
        carrybacks
        (A) Period of limitation
          If the claim for credit or refund relates to an overpayment
        attributable to a credit carryback, in lieu of the 3-year
        period of limitation prescribed in subsection (a), the period
        shall be that period which ends 3 years after the time
        prescribed by law for filing the return (including extensions
        thereof) for the taxable year of the unused credit which
        results in such carryback (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, the period
        shall be that period which ends 3 years after the time
        prescribed by law for filing the return, including extensions
        thereof, for such subsequent taxable year) or the period
        prescribed in subsection (c) in respect of such taxable year,
        whichever expires later. In the case of such a claim, the
        amount of the credit or refund may exceed the portion of the
        tax paid within the period provided in subsection (b)(2) or
        (c), whichever is applicable, to the extent of the amount of
        the overpayment attributable to such carryback.
        (B) Applicable rules
          If the allowance of a credit or refund of an overpayment of
        tax attributable to a credit carryback is otherwise prevented
        by the operation of any law or rule of law other than section
        7122, relating to compromises, such credit or refund may be
        allowed or made, if claim therefor is filed within the period
        provided in subparagraph (A) of this paragraph. In the case of
        any such claim for credit or refund, the determination by any
        court, including the Tax Court, in any proceeding in which the
        decision of the court has become final, shall not be conclusive
        with respect to any credit, and the effect of such credit, to
        the extent that such credit is affected by a credit carryback
        which was not in issue in such proceeding.
        (C) Credit carryback defined
          For purposes of this paragraph, the term "credit carryback"
        means any business carryback under section 39.
      (5) Special period of limitation with respect to self-employment
        tax in certain cases
        If the claim for credit or refund relates to an overpayment of
      the tax imposed by chapter 2 (relating to the tax on self-
      employment income) attributable to an agreement, or modification
      of an agreement, made pursuant to section 218 of the Social
      Security Act (relating to coverage of State and local employees),
      and if the allowance of a credit or refund of such overpayment is
      otherwise prevented by the operation of any law or rule of law
      other than section 7122 (relating to compromises), such credit or
      refund may be allowed or made if claim therefor is filed on or
      before the last day of the second year after the calendar year in
      which such agreement (or modification) is agreed to by the State
      and the Commissioner of Social Security.
      (6) Special period of limitation with respect to amounts included
        in income subsequently recaptured under qualified plan
        termination
        If the claim for credit or refund relates to an overpayment of
      tax imposed by subtitle A on account of the recapture, under
      section 4045 of the Employee Retirement Income Security Act of
      1974, of amounts included in income for a prior taxable year, the
      3-year period of limitation prescribed in subsection (a) shall be
      extended, for purposes of permitting a credit or refund of the
      amount of the recapture, until the date which occurs one year
      after the date on which such recaptured amount is paid by the
      taxpayer.
      (7) Special period of limitation with respect to self-employment
        tax in certain cases
        If - 
          (A) the claim for credit or refund relates to an overpayment
        of the tax imposed by chapter 2 (relating to the tax on self-
        employment income) attributable to Tax Court determination in
        a proceeding under section 7436, and
          (B) the allowance of a credit or refund of such overpayment
        is otherwise prevented by the operation of any law or rule of
        law other than section 7122 (relating to compromises),

      such credit or refund may be allowed or made if claim therefor is
      filed on or before the last day of the second year after the
      calendar year in which such determination becomes final.
      (8) Special rules when uniformed services retired pay is reduced
        as a result of award of disability compensation
        (A) Period of limitation on filing claim
          If the claim for credit or refund relates to an overpayment
        of tax imposed by subtitle A on account of - 
            (i) the reduction of uniformed services retired pay
          computed under section 1406 or 1407 of title 10, United
          States Code, or
            (ii) the waiver of such pay under section 5305 of title 38
          of such Code,

        as a result of an award of compensation under title 38 of such
        Code pursuant to a determination by the Secretary of Veterans
        Affairs, the 3-year period of limitation prescribed in
        subsection (a) shall be extended, for purposes of permitting a
        credit or refund based upon the amount of such reduction or
        waiver, until the end of the 1-year period beginning on the
        date of such determination.
        (B) Limitation to 5 taxable years
          Subparagraph (A) shall not apply with respect to any taxable
        year which began more than 5 years before the date of such
        determination.
    [(e) Repealed. Pub. L. 101-508, title XI, Sec. 11801(c)(22)(C),
      Nov. 5, 1990, 104 Stat. 1388-528]
    (f) Special rule for chapter 42 and similar taxes
      For purposes of any tax imposed by section 4912, chapter 42, or
    section 4975, the return referred to in subsection (a) shall be the
    return specified in section 6501(l)(1).
    (g) Special rule for claims with respect to partnership items
      In the case of any tax imposed by subtitle A with respect to any
    person which is attributable to any partnership item (as defined in
    section 6231(a)(3)), the provisions of section 6227 and subsections
    (c) and (d) of section 6230 shall apply in lieu of the provisions
    of this subchapter.
    (h) Running of periods of limitation suspended while taxpayer is
      unable to manage financial affairs due to disability
      (1) In general
        In the case of an individual, the running of the periods
      specified in subsections (a), (b), and (c) shall be suspended
      during any period of such individual's life that such individual
      is financially disabled.
      (2) Financially disabled
        (A) In general
          For purposes of paragraph (1), an individual is financially
        disabled if such individual is unable to manage his financial
        affairs by reason of a medically determinable physical or
        mental impairment of the individual which can be expected to
        result in death or which has lasted or can be expected to last
        for a continuous period of not less than 12 months. An
        individual shall not be considered to have such an impairment
        unless proof of the existence thereof is furnished in such form
        and manner as the Secretary may require.
        (B) Exception where individual has guardian, etc.
          An individual shall not be treated as financially disabled
        during any period that such individual's spouse or any other
        person is authorized to act on behalf of such individual in
        financial matters.
    (i) Cross references
          (1) For time return deemed filed and tax considered paid, see
        section 6513.
          (2) For limitations with respect to certain credits against
        estate tax, see sections 2014(b) and 2015.
          (3) For limitations in case of floor stocks refunds, see
        section 6412.
          (4) For a period of limitations for credit or refund in the
        case of joint income returns after separate returns have been
        filed, see section 6013(b)(3).
          (5) For limitations in case of payments under section 6420
        (relating to gasoline used on farms), see section 6420(b).
          (6) For limitations in case of payments under section 6421
        (relating to gasoline used for certain nonhighway purposes or
        by local transit systems), see section 6421(d).
          (7) For a period of limitations for refund of an overpayment
        of penalties imposed under section 6694 or 6695, see section
        6696(d)(2).