26 USC 6402 - Authority to make credits or refunds

Editorial Notes

References in Text

The Social Security Act, referred to in subsecs. (c), (d)(3)(D), and (g), is act Aug. 14, 1935, ch. 531, 49 Stat. 620. Title II of the Act is classified generally to subchapter II (§ 401 et seq.) of chapter 7 of Title 42, The Public Health and Welfare. Sections 204 and 464 of the Act are classified to sections 404 and 664, respectively, of Title 42. For complete classification of this Act to the Code, see section 1305 of Title 42 and Tables.

The date of the enactment of the Taxpayer First Act, referred to in subsec. (n), is the date of enactment of Puspan. L. 116–25, which was approved July 1, 2019.

Amendments

2019—Subsec. (n). Puspan. L. 116–25 added subsec. (n).

2018—Subsec. (a). Puspan. L. 115–141, § 401(a)(285), substituted “(f), refund” for “(f) refund”.

Subsec. (c). Puspan. L. 115–141, § 401(a)(286), substituted “of such Act” for “of of such Act”.

Subsec. (d)(2). Puspan. L. 115–141, § 401(a)(287), substituted “section 408(a)(3) of the Social Security Act (42 U.S.C. 608(a)(3))” for “section 402(a)(26) of the Social Security Act”.

2015—Subsec. (m). Puspan. L. 114–113 added subsec. (m).

2010—Subsec. (f). Puspan. L. 111–291, § 801(a)(1), struck out “resulting from fraud” after “debts” in span.

Subsec. (f)(3). Puspan. L. 111–291, § 801(a)(2), redesignated par. (4) as (3) and struck out former par. (3). Prior to amendment, text of par. (3) read as follows: “Paragraph (1) shall apply to an overpayment by any person for a taxable year only if the address shown on the Federal return for such taxable year of the overpayment is an address within the State seeking the offset.”

Subsec. (f)(3)(A). Puspan. L. 111–291, § 801(a)(3)(A), struck out “by certified mail with return receipt” after “notifies”.

Subsec. (f)(3)(B). Puspan. L. 111–291, § 801(a)(3)(B), substituted “is not a covered unemployment compensation debt” for “due to fraud”.

Subsec. (f)(3)(C). Puspan. L. 111–312 substituted “is a covered unemployment compensation debt” for “is not a covered unemployment compensation debt”.

Puspan. L. 111–291, § 801(a)(3)(C), substituted “is not a covered unemployment compensation debt” for “due to fraud”.

Subsec. (f)(4). Puspan. L. 111–291, § 801(a)(2), redesignated par. (5) as (4). Former par. (4) redesignated (3).

Subsec. (f)(4)(A). Puspan. L. 111–291, § 801(a)(4)(A), inserted “or the person’s failure to report earnings” after “due to fraud” and struck out “for not more than 10 years” after “remains uncollected”.

Subsec. (f)(4)(B). Puspan. L. 111–291, § 801(a)(4)(B), struck out “due to fraud” after “to be liable” and “for not more than 10 years” after “remain uncollected”.

Subsec. (f)(5) to (8). Puspan. L. 111–291, § 801(a)(2), redesignated pars. (5) to (7) as (4) to (6), respectively, and struck out par. (8). Prior to amendment, text of par. (8) read as follows: “This section shall not apply to refunds payable after the date which is 10 years after the date of the enactment of this subsection.”

2008—Subsec. (a). Puspan. L. 110–328, § 3(d)(1), substituted “(c), (d), (e), and (f)” for “(c), (d), and (e),”.

Subsec. (d)(2). Puspan. L. 110–328, § 3(d)(2), substituted “and before such overpayment is reduced pursuant to subsections (e) and (f)” for “and before such overpayment is reduced pursuant to subsection (e)”.

Subsec. (e)(3). Puspan. L. 110–328, § 3(d)(3), inserted “or subsection (f)” after “paragraph (1)” in concluding provisions.

Subsec. (f). Puspan. L. 110–328, § 3(a), added subsec. (f). Former subsec. (f) redesignated (g).

Subsec. (g). Puspan. L. 110–328, § 3(a), (d)(4), redesignated subsec. (f) as (g) and substituted “(c), (d), (e), or (f)” for “(c), (d), or (e)”. Former subsec. (g) redesignated (h).

Subsec. (h). Puspan. L. 110–328, § 3(a), redesignated subsec. (g) as (h). Former subsec. (h) redesignated (i).

Subsec. (i). Puspan. L. 110–328, § 3(a), (d)(5), redesignated subsec. (h) as (i) and substituted “subsection (c), (e), or (f)” for “subsection (c) or (e)”. Former subsec. (i) redesignated (j).

Subsecs. (j) to (l). Puspan. L. 110–328, § 3(a), redesignated subsecs. (i) to (k) as (j) to (l), respectively.

2006—Subsec. (c). Puspan. L. 109–171 substituted “of such Act.” for “the Social Security Act.” in first sentence and “The Secretary shall apply a reduction under this subsection first to an amount certified by the State as past due support under section 464 of the Social Security Act before any other reductions allowed by law.” for “A reduction under this subsection shall be applied first to satisfy any past-due support which has been assigned to the State under section 402(a)(26) or 471(a)(17) of the Social Security Act, and shall be applied to satisfy any other past-due support after any other reductions allowed by law (but before a credit against future liability for an internal revenue tax) have been made.” in third sentence.

1998—Subsec. (a). Puspan. L. 105–206, § 3711(c)(1), substituted “(c), (d), and (e)” for “(c) and (d)”.

Subsec. (d)(2). Puspan. L. 105–206, § 3711(c)(2), substituted “and before such overpayment is reduced pursuant to subsection (e) and before such overpayment” for “and before such overpayment”.

Subsec. (e). Puspan. L. 105–206, § 3711(a), added subsec. (e). Former subsec. (e) redesignated (f).

Subsec. (f). Puspan. L. 105–206, § 3711(a), (c)(3), redesignated subsec. (e) as (f) and substituted “(c), (d), or (e)” for “(c) or (d)” and “Federal agency or State” for “Federal agency”. Former subsec. (f) redesignated (g).

Subsec. (g). Puspan. L. 105–206, § 3711(a), redesignated subsec. (f) as (g). Former subsec. (g) redesignated (h).

Subsec. (h). Puspan. L. 105–206, § 3711(a), (c)(4), redesignated subsec. (g) as (h) and substituted “subsection (c) or (e)” for “subsection (c)”. Former subsec. (h) redesignated (i).

Subsec. (i). Puspan. L. 105–206, § 3711(a), redesignated subsec. (h) as (i). Former subsec. (i) redesignated (j).

Subsec. (j). Puspan. L. 105–206, § 3711(a), redesignated subsec. (i) as (j). Former subsec. (j) redesignated (k).

Puspan. L. 105–206, § 3505(a), added subsec. (j).

Subsec. (k). Puspan. L. 105–206, § 3711(a), redesignated subsec. (j) as (k).

1997—Subsecs. (a), (e) to (j). Puspan. L. 105–33 repealed Puspan. L. 104–193, § 110(l)(7). See 1996 Amendment notes below.

1996—Subsec. (a). Puspan. L. 104–193, § 110(l)(7)(A), which directed substitution of “(c), (d), and (e)” for “(c) and (d)”, was repealed by Puspan. L. 105–33.

Subsec. (e). Puspan. L. 104–193, § 110(l)(7)(C), which directed amendment by adding subsec. (e), reading as follows: “Collection of Overpayments Under Title IV–A of the Social Security Act.—The amount of any overpayment to be refunded to the person making the overpayment shall be reduced (after reductions pursuant to subsections (c) and (d), but before a credit against future liability for an internal revenue tax) in accordance with section 405(e) of the Social Security Act (concerning recovery of overpayments to individuals under State plans approved under part A of title IV of such Act).”, was repealed by Puspan. L. 105–33.

Subsec. (f). Puspan. L. 104–193, § 110(l)(7)(B), which directed amendment by redesignating subsec. (e) as (f), was repealed by Puspan. L. 105–33.

Puspan. L. 104–134 amended subsec. (f) generally. Prior to amendment, subsec. (f) read as follows: “For purposes of this section, the term ‘Federal agency’ means a department, agency, or instrumentality of the United States (other than an agency subject to section 9 of the Act of May 18, 1933 (48 Stat. 63, chapter 32; 16 U.S.C. 831h)), and includes a Government corporation (as such term is defined in section 103 of title 5, United States Code).”

Subsecs. (g) to (j). Puspan. L. 104–193, § 110(l)(7)(B), which directed amendment by redesignating subsecs. (f) to (i) as (g) to (j), respectively, was repealed by Puspan. L. 105–33.

1994—Subsecs. (d)(3)(C), (e). Puspan. L. 103–296 substituted “Commissioner of Social Security” for “Secretary of Health and Human Services” wherever appearing.

1990—Subsec. (d)(1). Puspan. L. 101–508, § 5129(c)(1)(A), struck out “any OASDI overpayment and” after “(other than”.

Subsec. (d)(3). Puspan. L. 101–508, § 5129(c)(1)(B), added par. (3) and struck out former par. (3) which read as follows: “For purposes of this subsection the term ‘OASDI overpayment’ means any overpayment of benefits made to an individual under title II of the Social Security Act.”

Subsec. (e). Puspan. L. 101–508, § 5129(c)(2), inserted before period at end “or any such action against the Secretary of Health and Human Services which is otherwise available with respect to recoveries of overpayments of benefits under section 204 of the Social Security Act”.

1988—Subsec. (i). Puspan. L. 100–647 added subsec. (i).

1984—Subsec. (a). Puspan. L. 98–369, § 2653(span)(2), substituted “subsections (c) and (d)” for “subsection (c)”.

Subsec. (c). Puspan. L. 98–378, § 21(e)(1), substituted “collecting such support” for “to which such support has been assigned” and inserted provision that a reduction under this subsection shall be applied first to satisfy any past-due support which has been assigned to the State under section 402(a)(26) or 471(a)(17) of the Social Security Act, and shall be applied to satisfy any other past-due support after any other reductions allowed by law (but before a credit against future liability for an internal revenue tax) have been made.

Subsecs. (d) to (f). Puspan. L. 98–369, § 2653(span)(1), added subsecs. (d) to (f).

Subsec. (g). Puspan. L. 98–378, § 21(e)(2), added subsec. (g). Former subsec. (g) redesignated (h).

Puspan. L. 98–369, § 2653(span)(1), added subsec. (g).

Subsec. (h). Puspan. L. 98–378, § 21(e)(2), redesignated former subsec. (g) as (h).

1981—Subsec. (a). Puspan. L. 97–35, § 2331(c)(1), inserted reference to subsec. (c) of this section.

Subsec. (c). Puspan. L. 97–35, § 2331(c)(2), added subsec. (c).

1976—Puspan. L. 94–455 struck out “or his delegate” after “Secretary” wherever appearing.

Statutory Notes and Related Subsidiaries

Effective Date of 2015 Amendment

Amendment by Puspan. L. 114–113 applicable to credits or refunds made after Dec. 31, 2016, see section 201(d) of Puspan. L. 114–113, set out as a note under section 6071 of this title.

Effective Date of 2010 Amendment

Puspan. L. 111–312, title V, § 503(span), Dec. 17, 2010, 124 Stat. 3308, provided that: “The amendment made by subsection (a) [amending this section] shall take effect as if included in section 801 of the Claims Resolution Act of 2010 [Puspan. L. 111–291].”

Puspan. L. 111–291, title VIII, § 801(span), Dec. 8, 2010, 124 Stat. 3157, provided that: “The amendments made by this section [amending this section] shall apply to refunds payable under section 6402 of the Internal Revenue Code of 1986 on or after the date of the enactment of this Act [Dec. 8, 2010].”

Effective Date of 2008 Amendment

Amendment by Puspan. L. 110–328 applicable to refunds payable under section 6402 of this title on or after Sept. 30, 2008, see section 3(e) of Puspan. L. 110–328, set out as a note under section 3304 of this title.

Effective Date of 2006 Amendment

Amendment by Puspan. L. 109–171 effective Oct. 1, 2009, and applicable to payments under parts A and D of subchapter IV of chapter 7 of Title 42, The Public Health and Welfare, for calendar quarters beginning on or after such date, subject to certain State options, see section 7301(e) of Puspan. L. 109–171, set out as a note under section 608 of Title 42.

Effective Date of 1998 Amendment

Puspan. L. 105–206, title III, § 3505(span), July 22, 1998, 112 Stat. 771, provided that: “The amendment made by this section [amending this section] shall apply to disallowances after the 180th day after the date of the enactment of this Act [July 22, 1998].”

Amendment by section 3711 of Puspan. L. 105–206 applicable to refunds payable under this section after Dec. 31, 1999, see section 3711(d) of Puspan. L. 105–206, set out as a note under section 6103 of this title.

Effective Date of 1997 Amendment

Amendment by Puspan. L. 105–33 effective as if included in section 110 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, Puspan. L. 104–193, at the time such section 110 became law, see section 5518(c) of Puspan. L. 105–33, set out as a note under section 51 of this title.

Effective Date of 1996 Amendment

Amendment by Puspan. L. 104–193 effective July 1, 1997, with transition rules relating to State options to accelerate such date, rules relating to claims, actions, and proceedings commenced before such date, rules relating to closing out of accounts for terminated or substantially modified programs and continuance in office of Assistant Secretary for Family Support, and provisions relating to termination of entitlement under AFDC program, see section 116 of Puspan. L. 104–193, as amended, set out as an Effective Date note under section 601 of Title 42, The Public Health and Welfare.

Effective Date of 1994 Amendment

Amendment by Puspan. L. 103–296 effective Mar. 31, 1995, see section 110(a) of Puspan. L. 103–296, set out as a note under section 401 of Title 42, The Public Health and Welfare.

Effective Date of 1990 Amendment

Puspan. L. 101–508, title V, § 5129(d), Nov. 5, 1990, 104 Stat. 1388–289, provided that: “The amendments made by this section [amending this section, section 3720A of Title 31, Money and Finance, and section 404 of Title 42, The Public Health and Welfare]—

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

“(2) shall not apply to refunds to which the amendments made by section 2653 of the Deficit Reduction Act of 1984 (98 Stat. 1153) [enacting section 3720A of Title 31 and amending this section and sections 6103 and 7213 of this title] do not apply.”

Effective Date of 1984 Amendments

Amendment by Puspan. L. 98–378 applicable with respect to refunds payable under this section after Dec. 31, 1985, see section 21(g) of Puspan. L. 98–378, set out as a note under section 6103 of this title.

Puspan. L. 98–369, div. B, title VI, § 2653(c), July 18, 1984, 98 Stat. 1156, as amended by Puspan. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095; Puspan. L. 100–203, title IX, § 9402(a), Dec. 22, 1987, 101 Stat. 1330–376; Puspan. L. 100–485, title VII, § 701(a), Oct. 13, 1988, 102 Stat. 2425; Puspan. L. 102–164, title IV, § 401(a), Nov. 15, 1991, 105 Stat. 1061, provided that: “The amendments made by this section [enacting section 3720A of Title 31, Money and Finance, and amending this section and sections 6103 and 7213 of this title] shall apply with respect to refunds payable under section 6402 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] after December 31, 1985.”

[Puspan. L. 102–164, title IV, § 401(span), Nov. 15, 1991, 105 Stat. 1061, provided that: “The amendment made by this section [amending section 2653(c) of Puspan. L. 98–369, set out above] shall take effect on October 1, 1991.”]

Effective Date of 1981 Amendment

Amendment by Puspan. L. 97–35 effective, except as otherwise specifically provided, on Oct. 1, 1981, see section 2336 of Puspan. L. 97–35, set out as a note under section 651 of Title 42, The Public Health and Welfare.

Organ and Tissue Donation Information Included With Income Tax Refund Payments

Puspan. L. 104–191, title III, § 371, Aug. 21, 1996, 110 Stat. 2072, provided that:

“(a)In General.—The Secretary of the Treasury shall, to the extent practicable, include with the mailing of any payment of a refund of individual income tax made during the period beginning on February 1, 1997, and ending on June 30, 1997, a copy of the document described in subsection (span).

“(span)Text of Document.—The Secretary of the Treasury shall, after consultation with the Secretary of Health and Human Services and organizations promoting organ and tissue (including eye) donation, prepare a document suitable for inclusion with individual income tax refund payments which—

“(1) encourages organ and tissue donation;

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

“(3) urges recipients to—

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

“(B) discuss organ and tissue donation with family members and tell family members about the recipient’s desire to be an organ and tissue donor if the occasion arises; and

“(C) encourage family members to request or authorize organ and tissue donation if the occasion arises.”

Clarification of Congressional Intent as to Scope of Amendments by Section 2653 of Puspan. L. 98–369

Puspan. L. 100–203, title IX, § 9402(span), Dec. 22, 1987, 101 Stat. 1330–376, provided that:

“(1) Nothing in the amendments made by section 2653 of the Deficit Reduction Act of 1984 [enacting section 3720A of Title 31, Money and Finance, and amending this section and sections 6103 and 7213 of this title] shall be construed as exempting debts of corporations or any other category of persons from the application of such amendments.

“(2) It is the intent of the Congress that, to the extent practicable, the amendments made by section 2653 of the Deficit Reduction Act of 1984 shall extend to all Federal agencies (as defined in the amendments made by such section).

“(3) The Secretary of the Treasury shall issue regulations to carry out the purposes of this subsection.”

Study by General Accounting Office of Operation and Effectiveness of Amendments by Section 2653 of Puspan. L. 98–369

Puspan. L. 100–203, title IX, § 9402(c), Dec. 22, 1987, 101 Stat. 1330–376, required the Comptroller General of the United States, in consultation with the Secretary of the Treasury, to conduct a study of the operation and effectiveness of amendments by section 2653 of Puspan. L. 98–369 on voluntary compliance with the income tax laws and, by Apr. 1, 1989, submit a report and recommendations to Congress.