26 U.S.C. § 6611 : US Code - Section 6611: Interest on overpayments

Search 26 U.S.C. § 6611 : US Code - Section 6611: Interest on overpayments

(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[(c) Repealed.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.