26 U.S.C. § 6512 : US Code - Section 6512: Limitations in case of petition to Tax Court

Search 26 U.S.C. § 6512 : US Code - Section 6512: Limitations in case of petition to Tax Court

(a) Effect of petition to Tax Court
If the Secretary has mailed to the taxpayer a notice of
deficiency under section 6212(a) (relating to deficiencies of
income, estate, gift, and certain excise taxes) and if the taxpayer
files a petition with the Tax Court within the time prescribed in
section 6213(a) (or 7481(c) with respect to a determination of
statutory interest or section 7481(d) solely with respect to a
determination of estate tax by the Tax Court), no credit or refund
of income tax for the same taxable year, of gift tax for the same
calendar year or calendar quarter, of estate tax in respect of the
taxable estate of the same decedent, or of tax imposed by chapter
41, 42, 43, or 44 with respect to any act (or failure to act) to
which such petition relates, in respect of which the Secretary has
determined the deficiency shall be allowed or made and no suit by
the taxpayer for the recovery of any part of the tax shall be
instituted in any court except -
(1) As to overpayments determined by a decision of the Tax
Court which has become final, and
(2) As to any amount collected in excess of an amount computed
in accordance with the decision of the Tax Court which has become
final, and
(3) As to any amount collected after the period of limitation
upon the making of levy or beginning a proceeding in court for
collection has expired; but in any such claim for credit or
refund or in any such suit for refund the decision of the Tax
Court which has become final, as to whether such period has
expired before the notice of deficiency was mailed, shall be
conclusive, and
(4) As to overpayments attributable to partnership items, in
accordance with subchapter C of chapter 63, and
(5) As to any amount collected within the period during which
the Secretary is prohibited from making the assessment or from
collecting by levy or through a proceeding in court under the
provisions of section 6213(a), and
(6) As to overpayments the Secretary is authorized to refund or
credit pending appeal as provided in subsection (b).
(b) Overpayment determined by Tax Court
(1) Jurisdiction to determine
Except as provided by paragraph (3) and by section 7463, if the
Tax Court finds that there is no deficiency and further finds
that the taxpayer has made an overpayment of income tax for the
same taxable year, of gift tax for the same calendar year, or
calendar quarter, of estate tax in respect of the taxable estate
of the same decedent, or of tax imposed by chapter 41, 42, 43, or
44 with respect to any act (or failure to act) to which such
petition relates, in respect of which the Secretary determined
the deficiency, or finds that there is a deficiency but that the
taxpayer has made an overpayment of such tax, the Tax Court shall
have jurisdiction to determine the amount of such overpayment,
and such amount shall, when the decision of the Tax Court has
become final, be credited or refunded to the taxpayer. If a
notice of appeal in respect of the decision of the Tax Court is
filed under section 7483, the Secretary is authorized to refund
or credit the overpayment determined by the Tax Court to the
extent the overpayment is not contested on appeal.
(2) Jurisdiction to enforce
If, after 120 days after a decision of the Tax Court has become
final, the Secretary has failed to refund the overpayment
determined by the Tax Court, together with the interest thereon
as provided in subchapter B of chapter 67, then the Tax Court,
upon motion by the taxpayer, shall have jurisdiction to order the
refund of such overpayment and interest. An order of the Tax
Court disposing of a motion under this paragraph shall be
reviewable in the same manner as a decision of the Tax Court, but
only with respect to the matters determined in such order.
(3) Limit on amount of credit or refund
No such credit or refund shall be allowed or made of any
portion of the tax unless the Tax Court determines as part of its
decision that such portion was paid -
(A) after the mailing of the notice of deficiency,
(B) within the period which would be applicable under section
6511(b)(2), (c), or (d), if on the date of the mailing of the
notice of deficiency a claim had been filed (whether or not
filed) stating the grounds upon which the Tax Court finds that
there is an overpayment, or
(C) within the period which would be applicable under section
6511(b)(2), (c), or (d), in respect of any claim for refund
filed within the applicable period specified in section 6511
and before the date of the mailing of the notice of deficiency -

(i) which had not been disallowed before that date,
(ii) which had been disallowed before that date and in
respect of which a timely suit for refund could have been
commenced as of that date, or
(iii) in respect of which a suit for refund had been
commenced before that date and within the period specified in
section 6532.
In the case of a credit or refund relating to an affected item
(within the meaning of section 6231(a)(5)), the preceding
sentence shall be applied by substituting the periods under
sections 6229 and 6230(d) for the periods under section
6511(b)(2), (c), and (d).
In a case described in subparagraph (B) where the date of the
mailing of the notice of deficiency is during the third year
after the due date (with extensions) for filing the return of tax
and no return was filed before such date, the applicable period
under subsections (a) and (b)(2) of section 6511 shall be 3
years.
(4) Denial of jurisdiction regarding certain credits and
reductions
The Tax Court shall have no jurisdiction under this subsection
to restrain or review any credit or reduction made by the
Secretary under section 6402.
(c) Cross references
(1) For provisions allowing determination of tax in title 11
cases, see section 505(a) of title 11 of the United States
Code.
(2) For provision giving the Tax Court jurisdiction to award
reasonable litigation costs in proceedings to enforce an
overpayment determined by such court, see section 7430.