Laws: Cases and Codes : U.S. Code : Title 26 : Section 6611



   

U.S. Code as of: 01/05/99

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    ((c) Repealed.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), (FOOTNOTE 1) and (e), a
      return shall not be treated as filed until it is filed in
      processible form.
       (FOOTNOTE 1) So in original.  The comma probably should not
    appear.
        (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.