26 USC 6511 - Limitations on credit or refund

View all text of Subchapter B [§ 6511 - § 6515]

§ 6511. Limitations on credit or refund

(a) Period of limitation on filing claim

(b) Limitation on allowance of credits and refunds

(1) Filing of claim within prescribed period

(2) Limit on amount of credit or refund

(A) Limit where claim filed within 3-year period

(B) Limit where claim not filed within 3-year period

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

(2) Limit on amount

(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

(B) Applicable rules

(i) In general

(ii) Tentative carryback adjustments

(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

(B) Exception in the case of foreign taxes paid or accrued

(4) Special period of limitation with respect to certain credit carrybacks

(A) Period of limitation

(B) Applicable rules

(5) Special period of limitation with respect to self-employment tax in certain cases

(6) Special period of limitation with respect to amounts included in income subsequently recaptured under qualified plan termination

(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

[(e) Repealed. Pub. L. 101–508, title XI, § 11801(c)(22)(C), Nov. 5, 1990, 104 Stat. 1388–528]

(f) Special rule for chapter 42 and similar taxes

[(g) Repealed. Pub. L. 114–74, title XI, § 1101(f)(6), Nov. 2, 2015, 129 Stat. 638]

(h) Running of periods of limitation suspended while taxpayer is unable to manage financial affairs due to disability

(1) In general

(2) Financially disabled

(A) In general

(B) Exception where individual has guardian, etc.

(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).

(Aug. 16, 1954, ch. 736, 68A Stat. 808; Apr. 2, 1956, ch. 160, § 4(e), 70 Stat. 91; June 29, 1956, ch. 462, title II, § 208(e)(6), 70 Stat. 397; Pub. L. 85–866, title I, § 82, Sept. 2, 1958, 72 Stat. 1663; Pub. L. 86–280, § 1(a), Sept. 16, 1959, 73 Stat. 563; Pub. L. 87–794, title III, § 317(d), Oct. 11, 1962, 76 Stat. 891; Pub. L. 87–834, § 2(e)(2), Oct. 16, 1962, 76 Stat. 971; Pub. L. 88–272, title II, §§ 232(d), 239, Feb. 26, 1964, 78 Stat. 111, 128; Pub. L. 88–571, § 3(c), Sept. 2, 1964, 78 Stat. 858; Pub. L. 89–331, § 9(c), Nov. 8, 1965, 79 Stat. 1278; Pub. L. 90–225, § 2(d), Dec. 27, 1967, 81 Stat. 731; Pub. L. 91–172, title I, § 101(h), title III, § 311(d)(3), title V, § 512(e)(2), Dec. 30, 1969, 83 Stat. 525, 588, 640; Pub. L. 92–178, title VI, § 601(d)(2), Dec. 10, 1971, 85 Stat. 558; Pub. L. 93–406, title IV, § 4401(b), formerly § 4081(b), Sept. 2, 1974, 88 Stat. 1034, renumbered § 4401(b), Pub. L. 96–364, title I, § 108(a), Sept. 26, 1980, 94 Stat. 1267; Pub. L. 94–455, title XII, § 1203(h)(3), title XIX, § 1906(a)(33), title XXI, § 2107(g)(2)(B), Oct. 4, 1976, 90 Stat. 1694, 1829, 1904; Pub. L. 95–30, title II, § 202(d)(4)(B), May 23, 1977, 91 Stat. 149; Pub. L. 95–600, title II, § 212(b)(1), title VII, § 703(p)(3), Nov. 6, 1978, 92 Stat. 2819, 2944; Pub. L. 95–628, § 8(a), (b), Nov. 10, 1978, 92 Stat. 3630, 3631; Pub. L. 96–222, title I, §§ 102(a)(2)(B), 108(b)(1)(B), Apr. 1, 1980, 94 Stat. 208, 226; Pub. L. 96–223, title I, § 101(g)(2), Apr. 2, 1980, 94 Stat. 254; Pub. L. 96–598, § 1(c), Dec. 24, 1980, 94 Stat. 3486; Pub. L. 97–34, title II, § 221(b)(2)(A), title III, § 331(d)(2)(A), Aug. 13, 1981, 95 Stat. 247, 295; Pub. L. 97–248, title IV, § 402(c)(7), Sept. 3, 1982, 96 Stat. 667; Pub. L. 98–369, div. A, title I, § 163(b)(2), title II, § 211(b)(25), title IV, § 474(r)(40), title VII, §§ 714(p)(2)(G), 735(c)(14), div. B, title VI, § 2663(j)(5)(F), July 18, 1984, 98 Stat. 698, 757, 847, 965, 984, 1171; Pub. L. 99–514, title I, § 141(b)(3), title II, § 231(d)(3)(I), title XVIII, § 1847(b)(15), Oct. 22, 1986, 100 Stat. 2117, 2180, 2857; Pub. L. 100–418, title I, § 1941(b)(2)(I), Aug. 23, 1988, 102 Stat. 1323; Pub. L. 100–647, title I, §§ 1017(c)(11), 1018(u)(21), (51), Nov. 10, 1988, 102 Stat. 3577, 3591, 3593; Pub. L. 101–508, title XI, § 11801(c)(17)(B), (22)(C), Nov. 5, 1990, 104 Stat. 1388–527, 1388–528; Pub. L. 103–296, title I, § 108(h)(8), Aug. 15, 1994, 108 Stat. 1487; Pub. L. 105–34, title X, § 1056(a), title XIV, § 1454(b)(1), Aug. 5, 1997, 111 Stat. 945, 1056; Pub. L. 105–206, title III, § 3202(a), July 22, 1998, 112 Stat. 740; Pub. L. 107–16, title V, § 532(c)(11), June 7, 2001, 115 Stat. 75; Pub. L. 110–245, title I, § 106(a), June 17, 2008, 122 Stat. 1630; Pub. L. 114–74, title XI, § 1101(f)(6), Nov. 2, 2015, 129 Stat. 638.)