§ 6401. Amounts treated as overpayments

• (a) The term “overpayment” includes that part of the amount of the payment of any internal revenue tax which is assessed or collected after the expiration of the period of limitation properly applicable thereto.
• (b)
  • (1) If the amount allowable as credits under subpart C of part IV of subchapter A of chapter 1 (relating to refundable credits) exceeds the tax imposed by subtitle A (reduced by the credits allowable under subparts A, B, D, and G of such part IV), the amount of such excess shall be considered an overpayment.
  • (2) For purposes of paragraph (1), any credit allowed under section 33 (relating to withholding of tax on nonresident aliens and on foreign corporations) for any taxable year shall be treated as a credit allowable under subpart C of part IV of subchapter A of chapter 1 only if an election under subsection (g) or (h) of section 6013 is in effect for such taxable year. The preceding sentence shall not apply to any credit so allowed by reason of section 1446.
• (c) An amount paid as tax shall not be considered not to constitute an overpayment solely by reason of the fact that there was no tax liability in respect of which such amount was paid.

§ 6402. Authority to make credits or refunds

• (a) In the case of any overpayment, the Secretary, within the applicable period of limitations, may credit the amount of such overpayment, including any interest allowed thereon, against any liability in respect of an internal revenue tax on the part of the person who made the overpayment and shall, subject to subsections (c), (d), (e), and (f), refund any balance to such person.
• (b) The Secretary is authorized to prescribe regulations providing for the crediting against the estimated income tax for any taxable year of the amount determined by the taxpayer or the Secretary to be an overpayment of the income tax for a preceding taxable year.
• (c) The amount of any overpayment to be refunded to the person making the overpayment shall be reduced by the amount of any past-due support (as defined in section 464(c) of the Social Security Act) owed by that person of which the Secretary has been notified by a State in accordance with section 464 of such Act. The Secretary shall remit the amount by which the overpayment is so reduced to the State collecting such support and notify the person making the overpayment that so much of the overpayment as was necessary to satisfy his obligation for past-due support has been paid to the State. 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. This subsection shall be applied to an overpayment prior to its being credited to a person’s future liability for an internal revenue tax.
• (d)
  • (1) Upon receiving notice from any Federal agency that a named person owes a past-due legally enforceable debt (other than past-due support subject to the provisions of subsection (c)) to such agency, the Secretary shall—
    • (A) reduce the amount of any overpayment payable to such person by the amount of such debt;
    • (B) pay the amount by which such overpayment is reduced under subparagraph (A) to such agency; and
    • (C) notify the person making such overpayment that such overpayment has been reduced by an amount necessary to satisfy such debt.
  • (2) Any overpayment by a person shall be reduced pursuant to this subsection after such overpayment is reduced pursuant to subsection (c) with respect to past-due support collected pursuant to an assignment under section 408(a)(3) of the Social Security Act ( 42 U.S.C. 608(a)(3) ) and before such overpayment is reduced pursuant to subsections (e) and (f) and before such overpayment is credited to the future liability for tax of such person pursuant to subsection (b). If the Secretary receives notice from a Federal agency or agencies of more than one debt subject to paragraph (1) that is owed by a person to such agency or agencies, any overpayment by such person shall be applied against such debts in the order in which such debts accrued.
  • (3)
    • (A) Paragraph (1) shall apply with respect to an OASDI overpayment only if the requirements of paragraphs (1) and (2) of section 3720A(f) of title 31 , United States Code, are met with respect to such overpayment.
    • (B)
      • (i) In the case of a debt consisting of an OASDI overpayment, if the Secretary determines upon receipt of the notice referred to in paragraph (1) that the refund from which the reduction described in paragraph (1)(A) would be made is based upon a joint return, the Secretary shall—
        • (I) notify each taxpayer filing such joint return that the reduction is being made from a refund based upon such return, and
        • (II) include in such notification a description of the procedures to be followed, in the case of a joint return, to protect the share of the refund which may be payable to another person.
      • (ii) If the other person filing a joint return with the person owing the OASDI overpayment takes appropriate action to secure his or her proper share of the refund subject to reduction under this subsection, the Secretary shall pay such share to such other person. The Secretary shall deduct the amount of such payment from amounts which are derived from subsequent reductions in refunds under this subsection and are payable to a trust fund referred to in subparagraph (C).
    • (C) In lieu of payment, pursuant to paragraph (1)(B), of the amount of any reduction under this subsection to the Commissioner of Social Security, the Secretary shall deposit such amount in the Federal Old-Age and Survivors Insurance Trust Fund or the Federal Disability Insurance Trust Fund, whichever is certified to the Secretary as appropriate by the Commissioner of Social Security.
    • (D) For purposes of this paragraph, the term “OASDI overpayment” means any overpayment of benefits made to an individual under title II of the Social Security Act.
• (e)
  • (1) Upon receiving notice from any State that a named person owes a past-due, legally enforceable State income tax obligation to such State, the Secretary shall, under such conditions as may be prescribed by the Secretary—
    • (A) reduce the amount of any overpayment payable to such person by the amount of such State income tax obligation;
    • (B) pay the amount by which such overpayment is reduced under subparagraph (A) to such State and notify such State of such person’s name, taxpayer identification number, address, and the amount collected; and
    • (C) notify the person making such overpayment that the overpayment has been reduced by an amount necessary to satisfy a past-due, legally enforceable State income tax obligation.
  • (2) 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.
  • (3) Any overpayment by a person shall be reduced pursuant to this subsection—
    • (A) after such overpayment is reduced pursuant to—
      • (i) subsection (a) with respect to any liability for any internal revenue tax on the part of the person who made the overpayment;
      • (ii) subsection (c) with respect to past-due support; and
      • (iii) subsection (d) with respect to any past-due, legally enforceable debt owed to a Federal agency; and
    • (B) before such overpayment is credited to the future liability for any Federal internal revenue tax of such person pursuant to subsection (b).
  • (4) No State may take action under this subsection until such State—
    • (A) notifies by certified mail with return receipt the person owing the past-due State income tax liability that the State proposes to take action pursuant to this section;
    • (B) gives such person at least 60 days to present evidence that all or part of such liability is not past-due or not legally enforceable;
    • (C) considers any evidence presented by such person and determines that an amount of such debt is past-due and legally enforceable; and
    • (D) satisfies such other conditions as the Secretary may prescribe to ensure that the determination made under subparagraph (C) is valid and that the State has made reasonable efforts to obtain payment of such State income tax obligation.
  • (5) For purposes of this subsection, the term “past-due, legally enforceable State income tax obligation” means a debt—
    • (A)
      • (i) which resulted from—
        • (I) a judgment rendered by a court of competent jurisdiction which has determined an amount of State income tax to be due; or
        • (II) a determination after an administrative hearing which has determined an amount of State income tax to be due; and
      • (ii) which is no longer subject to judicial review; or
    • (B) which resulted from a State income tax which has been assessed but not collected, the time for redetermination of which has expired, and which has not been delinquent for more than 10 years.
  • (6) The Secretary shall issue regulations prescribing the time and manner in which States must submit notices of past-due, legally enforceable State income tax obligations and the necessary information that must be contained in or accompany such notices. The regulations shall specify the types of State income taxes and the minimum amount of debt to which the reduction procedure established by paragraph (1) may be applied. The regulations may require States to pay a fee to reimburse the Secretary for the cost of applying such procedure. Any fee paid to the Secretary pursuant to the preceding sentence shall be used to reimburse appropriations which bore all or part of the cost of applying such procedure.
  • (7) Any State receiving notice from the Secretary that an erroneous payment has been made to such State under paragraph (1) shall pay promptly to the Secretary, in accordance with such regulations as the Secretary may prescribe, an amount equal to the amount of such erroneous payment (without regard to whether any other amounts payable to such State under such paragraph have been paid to such State).
• (f)
  • (1) Upon receiving notice from any State that a named person owes a covered unemployment compensation debt to such State, the Secretary shall, under such conditions as may be prescribed by the Secretary—
    • (A) reduce the amount of any overpayment payable to such person by the amount of such covered unemployment compensation debt;
    • (B) pay the amount by which such overpayment is reduced under subparagraph (A) to such State and notify such State of such person’s name, taxpayer identification number, address, and the amount collected; and
    • (C) notify the person making such overpayment that the overpayment has been reduced by an amount necessary to satisfy a covered unemployment compensation debt.
  • (2) Any overpayment by a person shall be reduced pursuant to this subsection—
    • (A) after such overpayment is reduced pursuant to—
      • (i) subsection (a) with respect to any liability for any internal revenue tax on the part of the person who made the overpayment;
      • (ii) subsection (c) with respect to past-due support; and
      • (iii) subsection (d) with respect to any past-due, legally enforceable debt owed to a Federal agency; and
    • (B) before such overpayment is credited to the future liability for any Federal internal revenue tax of such person pursuant to subsection (b).
  • (3) No State may take action under this subsection until such State—
    • (A) notifies the person owing the covered unemployment compensation debt that the State proposes to take action pursuant to this section;
    • (B) provides such person at least 60 days to present evidence that all or part of such liability is not legally enforceable or is not a covered unemployment compensation debt;
    • (C) considers any evidence presented by such person and determines that an amount of such debt is legally enforceable and is a covered unemployment compensation debt; and
    • (D) satisfies such other conditions as the Secretary may prescribe to ensure that the determination made under subparagraph (C) is valid and that the State has made reasonable efforts to obtain payment of such covered unemployment compensation debt.
  • (4) For purposes of this subsection, the term “covered unemployment compensation debt” means—
    • (A) a past-due debt for erroneous payment of unemployment compensation due to fraud or the person’s failure to report earnings which has become final under the law of a State certified by the Secretary of Labor pursuant to section 3304 and which remains uncollected;
    • (B) contributions due to the unemployment fund of a State for which the State has determined the person to be liable and which remain uncollected; and
    • (C) any penalties and interest assessed on such debt.
  • (5)
    • (A) The Secretary may issue regulations prescribing the time and manner in which States must submit notices of covered unemployment compensation debt and the necessary information that must be contained in or accompany such notices. The regulations may specify the minimum amount of debt to which the reduction procedure established by paragraph (1) may be applied.
    • (B) The regulations may require States to pay a fee to the Secretary, which may be deducted from amounts collected, to reimburse the Secretary for the cost of applying such procedure. Any fee paid to the Secretary pursuant to the preceding sentence shall be used to reimburse appropriations which bore all or part of the cost of applying such procedure.
    • (C) The regulations may include a requirement that States submit notices of covered unemployment compensation debt to the Secretary via the Secretary of Labor in accordance with procedures established by the Secretary of Labor. Such procedures may require States to pay a fee to the Secretary of Labor to reimburse the Secretary of Labor for the costs of applying this subsection. Any such fee shall be established in consultation with the Secretary of the Treasury. Any fee paid to the Secretary of Labor may be deducted from amounts collected and shall be used to reimburse the appropriation account which bore all or part of the cost of applying this subsection.
  • (6) Any State receiving notice from the Secretary that an erroneous payment has been made to such State under paragraph (1) shall pay promptly to the Secretary, in accordance with such regulations as the Secretary may prescribe, an amount equal to the amount of such erroneous payment (without regard to whether any other amounts payable to such State under such paragraph have been paid to such State).
• (g) No court of the United States shall have jurisdiction to hear any action, whether legal or equitable, brought to restrain or review a reduction authorized by subsection (c), (d), (e), or (f). No such reduction shall be subject to review by the Secretary in an administrative proceeding. No action brought against the United States to recover the amount of any such reduction shall be considered to be a suit for refund of tax. This subsection does not preclude any legal, equitable, or administrative action against the Federal agency or State to which the amount of such reduction was paid or any such action against the Commissioner of Social Security which is otherwise available with respect to recoveries of overpayments of benefits under section 204 of the Social Security Act.
• (h) For purposes of this section, the term “Federal agency” means a department, agency, or instrumentality of the United States, and includes a Government corporation (as such term is defined in section 103 of title 5 , United States Code).
• (i) The Secretary may provide that, for purposes of determining interest, the payment of any amount withheld under subsection (c), (e), or (f) to a State shall be treated as a payment to the person or persons making the overpayment.
• (j) For procedures relating to agency notification of the Secretary, see section 3721 of title 31 , United States Code.
• (k) Notwithstanding any other provision of law, in the case of an insolvent corporation which is a member of an affiliated group of corporations filing a consolidated return for any taxable year and which is subject to a statutory or court-appointed fiduciary, the Secretary may by regulation provide that any refund for such taxable year may be paid on behalf of such insolvent corporation to such fiduciary to the extent that the Secretary determines that the refund is attributable to losses or credits of such insolvent corporation.
• (l) In the case of a disallowance of a claim for refund, the Secretary shall provide the taxpayer with an explanation for such disallowance.
• (m) No credit or refund of an overpayment for a taxable year shall be made to a taxpayer before the 15th day of the second month following the close of such taxable year if a credit is allowed to such taxpayer under section 24 (by reason of subsection (d) thereof) or 32 for such taxable year.
• (n) Not later than the date which is 6 months after the date of the enactment of the Taxpayer First Act, the Secretary shall prescribe regulations to establish procedures to allow for—
  • (1) taxpayers to report instances in which a refund made by the Secretary by electronic funds transfer was not transferred to the account of the taxpayer;
  • (2) coordination with financial institutions for the purpose of—
    • (A) identifying the accounts to which transfers described in paragraph (1) were made; and
    • (B) recovery of the amounts so transferred; and
  • (3) the refund to be delivered to the correct account of the taxpayer.

§ 6403. Overpayment of installment

In the case of a tax payable in installments, if the taxpayer has paid as an installment of the tax more than the amount determined to be the correct amount of such installment, the overpayment shall be credited against the unpaid installments, if any. If the amount already paid, whether or not on the basis of installments, exceeds the amount determined to be the correct amount of the tax, the overpayment shall be credited or refunded as provided in section 6402.

§ 6404. Abatements

• (a) The Secretary is authorized to abate the unpaid portion of the assessment of any tax or any liability in respect thereof, which—
  • (1) is excessive in amount, or
  • (2) is assessed after the expiration of the period of limitation properly applicable thereto, or
  • (3) is erroneously or illegally assessed.
• (b) No claim for abatement shall be filed by a taxpayer in respect of an assessment of any tax imposed under subtitle A or B.
• (c) The Secretary is authorized to abate the unpaid portion of the assessment of any tax, or any liability in respect thereof, if the Secretary determines under uniform rules prescribed by the Secretary that the administration and collection costs involved would not warrant collection of the amount due.
• (d) In the case of an assessment of any tax imposed by chapter 1 attributable in whole or in part to a mathematical error described in section 6213(g)(2)(A), if the return was prepared by an officer or employee of the Internal Revenue Service acting in his official capacity to provide assistance to taxpayers in the preparation of income tax returns, the Secretary is authorized to abate the assessment of all or any part of any interest on such deficiency for any period ending on or before the 30th day following the date of notice and demand by the Secretary for payment of the deficiency.
• (e)
  • (1) In the case of any assessment of interest on—
    • (A) any deficiency attributable in whole or in part to any unreasonable error or delay by an officer or employee of the Internal Revenue Service (acting in his official capacity) in performing a ministerial or managerial act, or
    • (B) any payment of any tax described in section 6212(a) to the extent that any unreasonable error or delay in such payment is attributable to such an officer or employee being erroneous or dilatory in performing a ministerial or managerial act,
  • (2) The Secretary shall abate the assessment of all interest on any erroneous refund under section 6602 until the date demand for repayment is made, unless—
    • (A) the taxpayer (or a related party) has in any way caused such erroneous refund, or
    • (B) such erroneous refund exceeds $50,000.
• (f)
  • (1) The Secretary shall abate any portion of any penalty or addition to tax attributable to erroneous advice furnished to the taxpayer in writing by an officer or employee of the Internal Revenue Service, acting in such officer’s or employee’s official capacity.
  • (2) Paragraph (1) shall apply only if—
    • (A) the written advice was reasonably relied upon by the taxpayer and was in response to a specific written request of the taxpayer, and
    • (B) the portion of the penalty or addition to tax did not result from a failure by the taxpayer to provide adequate or accurate information.
• (g)
  • (1)
    • (A) In the case of an individual who files a return of tax imposed by subtitle A for a taxable year on or before the due date for the return (including extensions), if the Secretary does not provide a notice to the taxpayer specifically stating the taxpayer’s liability and the basis for the liability before the close of the 36-month period beginning on the later of—
      • (i) the date on which the return is filed; or
      • (ii) the due date of the return without regard to extensions,
    • (B) This paragraph shall be applied separately with respect to each item or adjustment.
  • (2) Paragraph (1) shall not apply to—
    • (A) any penalty imposed by section 6651;
    • (B) any interest, penalty, addition to tax, or additional amount in a case involving fraud;
    • (C) any interest, penalty, addition to tax, or additional amount with respect to any tax liability shown on the return;
    • (D) any interest, penalty, addition to tax, or additional amount with respect to any gross misstatement;
    • (E) any interest, penalty, addition to tax, or additional amount with respect to any reportable transaction with respect to which the requirement of section 6664(d)(3)(A) is not met and any listed transaction (as defined in 6707A(c)); or
    • (F) any criminal penalty.
  • (3) For purposes of this subsection, the term “suspension period” means the period—
    • (A) beginning on the day after the close of the 36-month period under paragraph (1); and
    • (B) ending on the date which is 21 days after the date on which notice described in paragraph (1)(A) is provided by the Secretary.
• (h)
  • (1) The Tax Court shall have jurisdiction over any action brought by a taxpayer who meets the requirements referred to in section 7430(c)(4)(A)(ii) to determine whether the Secretary’s failure to abate interest under this section was an abuse of discretion, and may order an abatement, if such action is brought—
    • (A) at any time after the earlier of—
      • (i) the date of the mailing of the Secretary’s final determination not to abate such interest, or
      • (ii) the date which is 180 days after the date of the filing with the Secretary (in such form as the Secretary may prescribe) of a claim for abatement under this section, and
    • (B) not later than the date which is 180 days after the date described in subparagraph (A)(i).
  • (2)
    • (A) Rules similar to the rules of section 6213 shall apply for purposes of determining the date of the mailing referred to in paragraph (1).
    • (B) Rules similar to the rules of section 6512(b) shall apply for purposes of this subsection.
    • (C) An order of the Tax Court under this subsection 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.
• (i) For authority to suspend running of interest, etc. by reason of Presidentially declared disaster or terroristic or military action, see section 7508A.

§ 6405. Reports of refunds and credits

• (a) No refund or credit of any income, war profits, excess profits, estate, or gift tax, or any tax imposed with respect to public charities, private foundations, operators’ trust funds, pension plans, or real estate investment trusts under chapter 41, 42, 43, or 44, in excess of $2,000,000 ($5,000,000 in the case of a C corporation) shall be made until after the expiration of 30 days from the date upon which a report giving the name of the person to whom the refund or credit is to be made, the amount of such refund or credit, and a summary of the facts and the decision of the Secretary, is submitted to the Joint Committee on Taxation.
• (b) Any credit or refund allowed or made under section 6411 shall be made without regard to the provisions of subsection (a) of this section. In any such case, if the credit or refund, reduced by any deficiency in such tax thereafter assessed and by deficiencies in any other tax resulting from adjustments reflected in the determination of the credit or refund, is in excess of $2,000,000 ($5,000,000 in the case of a C corporation), there shall be submitted to such committee a report containing the matter specified in subsection (a) at such time after the making of the credit or refund as the Secretary shall determine the correct amount of the tax.
• (c) If any refund or credit of income taxes is attributable to the taxpayer’s election under section 165(i) to deduct a disaster loss for the taxable year immediately preceding the taxable year in which the disaster occurred, the Secretary is authorized in his discretion to make the refund or credit, to the extent attributable to such election, without regard to the provisions of subsection (a) of this section. If such refund or credit is made without regard to subsection (a), there shall thereafter be submitted to such Joint Committee a report containing the matter specified in subsection (a) as soon as the Secretary shall determine the correct amount of the tax for the taxable year for which the refund or credit is made.

§ 6406. Prohibition of administrative review of decisions

In the absence of fraud or mistake in mathematical calculation, the findings of fact in and the decision of the Secretary upon the merits of any claim presented under or authorized by the internal revenue laws and the allowance or non-allowance by the Secretary of interest on any credit or refund under the internal revenue laws shall not, except as provided in subchapters C and D of chapter 76 (relating to the Tax Court), be subject to review by any other administrative or accounting officer, employee, or agent of the United States.

§ 6407. Date of allowance of refund or credit

The date on which the Secretary first authorizes the scheduling of an overassessment in respect of any internal revenue tax shall be considered as the date of allowance of refund or credit in respect of such tax.

§ 6408. State escheat laws not to apply

No overpayment of any tax imposed by this title shall be refunded (and no interest with respect to any such overpayment shall be paid) if the amount of such refund (or interest) would escheat to a State or would otherwise become the property of a State under any law relating to the disposition of unclaimed or abandoned property. No refund (or payment of interest) shall be made to the estate of any decedent unless it is affirmatively shown that such amount will not escheat to a State or otherwise become the property of a State under such a law.

§ 6409. Refunds disregarded in the administration of Federal programs and federally assisted programs

Notwithstanding any other provision of law, any refund (or advance payment with respect to a refundable credit) made to any individual under this title shall not be taken into account as income, and shall not be taken into account as resources for a period of 12 months from receipt, for purposes of determining the eligibility of such individual (or any other individual) for benefits or assistance (or the amount or extent of benefits or assistance) under any Federal program or under any State or local program financed in whole or in part with Federal funds.

§ 6411. Tentative carryback and refund adjustments

• (a) A taxpayer may file an application for a tentative carryback adjustment of the tax for the prior taxable year affected by a net operating loss carryback provided in section 172(b), by a business credit carryback provided in section 39, or by a capital loss carryback provided in subsection (a)(1) or (c) of section 1212, from any taxable year. The application shall be verified in the manner prescribed by section 6065 in the case of a return of such taxpayer and shall be filed, on or after the date of filing for the return for the taxable year of the net operating loss, net capital loss, or unused business credit from which the carryback results and within a period of 12 months after such taxable year or, with respect to any portion of a business credit carryback attributable to a net operating loss carryback or a net capital loss carryback from a subsequent taxable year, in the manner and form required by regulations prescribed by the Secretary. The applications shall set forth in such detail and with such supporting data and explanation as such regulations shall require—
  • (1) The amount of the net operating loss, net capital loss, or unused business credit;
  • (2) The amount of the tax previously determined for the prior taxable year affected by such carryback, the tax previously determined being ascertained in accordance with the method prescribed in section 1314(a);
  • (3) The amount of decrease in such tax, attributable to such carryback, such decrease being determined by applying the carryback in the manner provided by law to the items on the basis of which such tax was determined;
  • (4) The unpaid amount of such tax, not including any amount required to be shown under paragraph (5);
  • (5) The amount, with respect to the tax for the taxable year immediately preceding the taxable year from which the carryback is made, as to which an extension of time for payment under section 6164 is in effect; and
  • (6) Such other information for purposes of carrying out the provisions of this section as may be required by such regulations.
• (b) Within a period of 90 days from the date on which an application for a tentative carryback adjustment is filed under subsection (a), or from the last day of the month in which falls the last date prescribed by law (including any extension of time granted the taxpayer) for filing the return for the taxable year of the net operating loss, net capital loss, or unused business credit from which such carryback results, whichever is the later, the Secretary shall make, to the extent he deems practicable in such period, a limited examination of the application, to discover omissions and errors of computation therein, and shall determine the amount of the decrease in the tax attributable to such carryback upon the basis of the application and the examination, except that the Secretary may disallow, without further action, any application which he finds contains errors of computation which he deems cannot be corrected by him within such 90-day period or material omissions. Such decrease shall be applied against any unpaid amount of the tax decreased (including any amount of such tax as to which an extension of time under section 6164 is in effect) and any remainder shall be credited against any unsatisfied amount of any tax for the taxable year immediately preceding the taxable year of the net operating loss, net capital loss, or unused business credit the time for payment of which tax is extended under section 6164. Any remainder shall, within such 90-day period, be either credited against any tax or installment thereof then due from the taxpayer, or refunded to the taxpayer.
• (c) If the corporation seeking a tentative carryback adjustment under this section, made or was required to make a consolidated return, either for the taxable year within which the net operating loss, net capital loss, or unused business credit arises, or for the preceding taxable year affected by such loss or credit, the provisions of this section shall apply only to such extent and subject to such conditions, limitations, and exceptions as the Secretary may by regulations prescribe.
• (d)
  • (1) A taxpayer may file an application for a tentative refund of any amount treated as an overpayment of tax for the taxable year under section 1341(b)(1). Such application shall be in such manner and form as the Secretary may prescribe by regulation and shall—
    • (A) be verified in the same manner as an application under subsection (a),
    • (B) be filed during the period beginning on the date of filing the return for such taxable year and ending on the date 12 months from the last day of such taxable year, and
    • (C) set forth in such detail and with such supporting data such regulations prescribe—
      • (i) the amount of the tax for such taxable year computed without regard to the deduction described in section 1341(a)(2),
      • (ii) the amount of the tax for all prior taxable years for which the decrease in tax provided in section 1341(a)(5)(B) was computed,
      • (iii) the amount determined under section 1341(a)(5)(B),
      • (iv) the amount of the overpayment determined under section 1341(b)(1); and
      • (v) such other information as the Secretary may require.
  • (2) Within a period of 90 days from the date on which an application is filed under paragraph (1) or from the date of the overpayment (determined under section 1341(b)(1)), whichever is later, the Secretary shall—
    • (A) review the application,
    • (B) determine the amount of the overpayment, and
    • (C) apply, credit, or refund such overpayment,
  • (3) The provisions of subsection (c) shall apply to an adjustment under this subsection to the same extent and manner as the Secretary may by regulations provide.

§ 6412. Floor stocks refunds

• (a)
  • (1) Where before October 1, 2022 , any article subject to the tax imposed by section 4071 or 4081 has been sold by the manufacturer, producer, or importer and on such date is held by a dealer and has not been used and is intended for sale, there shall be credited or refunded (without interest) to the manufacturer, producer, or importer an amount equal to the difference between the tax paid by such manufacturer, producer, or importer on his sale of the article and the amount of tax made applicable to such article on and after October 1, 2022 , if claim for such credit or refund is filed with the Secretary on or before March 31, 2023 , based upon a request submitted to the manufacturer, producer, or importer before January 1, 2023 , by the dealer who held the article in respect of which the credit or refund is claimed, and, on or before March 31, 2023 , reimbursement has been made to such dealer by such manufacturer, producer, or importer for the tax reduction on such article or written consent has been obtained from such dealer to allowance of such credit or refund. No credit or refund shall be allowable under this paragraph with respect to taxable fuel in retail stocks held at the place where intended to be sold at retail, nor with respect to taxable fuel held for sale by a producer or importer of taxable fuel.
  • (2) For purposes of this section—
    • (A) The term “dealer” includes a wholesaler, jobber, distributor, or retailer.
    • (B) An article shall be considered as “held by a dealer” if title thereto has passed to such dealer (whether or not delivery to him has been made), and if for purposes of consumption title to such article or possession thereof has not at any time been transferred to any person other than a dealer.
• (b) No manufacturer, producer, or importer shall be entitled to credit or refund under subsection (a) unless he has in his possession such evidence of the inventories with respect to which the credit or refund is claimed as may be required by regulations prescribed under this section.
• (c) All provisions of law, including penalties, applicable in respect of the taxes imposed by sections 4071 and 4081 shall, insofar as applicable and not inconsistent with subsections (a) and (b) of this section, apply in respect of the credits and refunds provided for in subsection (a) to the same extent as if such credits or refunds constituted overpayments of such taxes.

§ 6413. Special rules applicable to certain employment taxes

• (a)
  • (1) If more than the correct amount of tax imposed by section 3101, 3111, 3201, 3221, or 3402 is paid with respect to any payment of remuneration, proper adjustments, with respect to both the tax and the amount to be deducted, shall be made, without interest, in such manner and at such times as the Secretary may by regulations prescribe.
  • (2) For purposes of this subsection, in the case of remuneration received from the United States or a wholly-owned instrumentality thereof during any calendar year, each head of a Federal agency or instrumentality who makes a return pursuant to section 3122 and each agent, designated by the head of a Federal agency or instrumentality, who makes a return pursuant to such section shall be deemed a separate employer.
  • (3) For purposes of this subsection, in the case of remuneration received during any calendar year from the Government of Guam, the Government of American Samoa, a political subdivision of either, or any instrumentality of any one or more of the foregoing which is wholly owned thereby, the Governor of Guam, the Governor of American Samoa, and each agent designated by either who makes a return pursuant to section 3125 shall be deemed a separate employer.
  • (4) For purposes of this subsection, in the case of remuneration received during any calendar year from the District of Columbia or any instrumentality which is wholly owned thereby, the Mayor of the District of Columbia and each agent designated by him who makes a return pursuant to section 3125 shall be deemed a separate employer.
  • (5) For purposes of this subsection, in the case of remuneration received from a State or any political subdivision thereof (or any instrumentality of any one or more of the foregoing which is wholly owned thereby) during any calendar year, each head of an agency or instrumentality, and each agent designated by either, who makes a return pursuant to section 3125 shall be deemed a separate employer.
• (b) If more than the correct amount of tax imposed by section 3101, 3111, 3201, 3221, or 3402 is paid or deducted with respect to any payment of remuneration and the overpayment cannot be adjusted under subsection (a) of this section, the amount of the overpayment shall be refunded in such manner and at such times (subject to the statute of limitations properly applicable thereto) as the Secretary may by regulations prescribe.
• (c)
  • (1) If by reason of an employee receiving wages from more than one employer during a calendar year the wages received by him during such year exceed the contribution and benefit base (as determined under section 230 of the Social Security Act) which is effective with respect to such year, the employee shall be entitled (subject to the provisions of section 31(b)) to a credit or refund of any amount of tax, with respect to such wages, imposed by section 3101(a) or section 3201(a) (to the extent of so much of the rate applicable under section 3201(a) as does not exceed the rate of tax in effect under section 3101(a)), or by both such sections, and deducted from the employee’s wages (whether or not paid to the Secretary), which exceeds the tax with respect to the amount of such wages received in such year which is equal to such contribution and benefit base. The term “wages” as used in this paragraph shall, for purposes of this paragraph, include “compensation” as defined in section 3231(e).
  • (2)
    • (A) In the case of remuneration received from the United States or a wholly-owned instrumentality thereof during any calendar year, each head of a Federal agency or instrumentality who makes a return pursuant to section 3122 and each agent, designated by the head of a Federal agency or instrumentality, who makes a return pursuant to such section shall, for purposes of this subsection, be deemed a separate employer; and the term “wages” includes for purposes of this subsection the amount, not to exceed an amount equal to the contribution and benefit base (as determined under section 230 of the Social Security Act) for any calendar year with respect to which such contribution and benefit base is effective, determined by each such head or agent as constituting wages paid to an employee.
    • (B) For purposes of this subsection, in the case of remuneration received during any calendar year, the term “wages” includes such remuneration for services covered by an agreement made pursuant to section 218 of the Social Security Act as would be wages if such services constituted employment; the term “employer” includes a State or any political subdivision thereof, or any instrumentality of any one or more of the foregoing; the term “tax” or “tax imposed by section 3101(a)” includes, in the case of services covered by an agreement made pursuant to section 218 of the Social Security Act, an amount equivalent to the tax which would be imposed by section 3101(a), if such services constituted employment as defined in section 3121; and the provisions of this subsection shall apply whether or not any amount deducted from the employee’s remuneration as a result of an agreement made pursuant to section 218 of the Social Security Act has been paid to the Secretary.
    • (C) For purposes of paragraph (1) of this subsection, the term “wages” includes such remuneration for services covered by an agreement made pursuant to section 3121( l ) as would be wages if such services constituted employment; the term “employer” includes any American employer which has entered into an agreement pursuant to section 3121( l ); the term “tax” or “tax imposed by section 3101(a),” includes, in the case of services covered by an agreement entered into pursuant to section 3121( l ), an amount equivalent to the tax which would be imposed by section 3101(a), if such services constituted employment as defined in section 3121; and the provisions of paragraph (1) of this subsection shall apply whether or not any amount deducted from the employee’s remuneration as a result of the agreement entered into pursuant to section 3121( l ) has been paid to the Secretary.
    • (D) In the case of remuneration received from the Government of Guam or any political subdivision thereof or from any instrumentality of any one or more of the foregoing which is wholly owned thereby, during any calendar year, the Governor of Guam and each agent designated by him who makes a return pursuant to section 3125(b) shall, for purposes of this subsection, be deemed a separate employer.
    • (E) In the case of remuneration received from the Government of American Samoa or any political subdivision thereof or from any instrumentality of any one or more of the foregoing which is wholly owned thereby, during any calendar year, the Governor of American Samoa and each agent designated by him who makes a return pursuant to section 3125(c) shall, for purposes of this subsection, be deemed a separate employer.
    • (F) In the case of remuneration received from the District of Columbia or any instrumentality wholly owned thereby, during any calendar year, the Mayor of the District of Columbia and each agent designated by him who makes a return pursuant to section 3125(d) shall, for purposes of this subsection, be deemed a separate employer.
    • (G) In the case of remuneration received from a State or any political subdivision thereof (or any instrumentality of any one or more of the foregoing which is wholly owned thereby) during any calendar year, each head of an agency or instrumentality, and each agent designated by either, who makes a return pursuant to section 3125(a) shall, for purposes of this subsection, be deemed a separate employer.
• (d) Any credit allowable under section 3302, to the extent not previously allowed, shall be considered an overpayment, but no interest shall be allowed or paid with respect to such overpayment.

§ 6414. Income tax withheld

In the case of an overpayment of tax imposed by chapter 24, or by chapter 3 or 4, refund or credit shall be made to the employer or to the withholding agent, as the case may be, only to the extent that the amount of such overpayment was not deducted and withheld by the employer or withholding agent.

§ 6415. Credits or refunds to persons who collected certain taxes

• (a) Credit or refund of any overpayment of tax imposed by section 4251, 4261, or 4271 may be allowed to the person who collected the tax and paid it to the Secretary if such person establishes, under such regulations as the Secretary may prescribe, that he has repaid the amount of such tax to the person from whom he collected it, or obtains the consent of such person to the allowance of such credit or refund.
• (b) Any person entitled to a refund of tax imposed by section 4251, 4261, or 4271 paid, or collected and paid, to the Secretary by him may, instead of filing a claim for refund, take credit therefor against taxes imposed by such section due upon any subsequent return.
• (c) In case any person required under section 4251, 4261, or 4271 to collect any tax shall make an overcollection of such tax, such person shall, upon proper application, refund such overcollection to the person entitled thereto.
• (d) Any person making a refund of any payment on which tax imposed by section 4251, 4261, or 4271 has been collected may repay therewith the amount of tax collected on such payment.

§ 6416. Certain taxes on sales and services

• (a)
  • (1) No credit or refund of any overpayment of tax imposed by chapter 31 (relating to retail excise taxes), or chapter 32 (manufacturers taxes), shall be allowed or made unless the person who paid the tax establishes, under regulations prescribed by the Secretary, that he—
    • (A) has not included the tax in the price of the article with respect to which it was imposed and has not collected the amount of the tax from the person who purchased such article;
    • (B) has repaid the amount of the tax to the ultimate purchaser of the article;
    • (C) in the case of an overpayment under subsection (b)(2) of this section—
      • (i) has repaid or agreed to repay the amount of the tax to the ultimate vendor of the article, or
      • (ii) has obtained the written consent of such ultimate vendor to the allowance of the credit or the making of the refund; or
    • (D) has filed with the Secretary the written consent of the person referred to in subparagraph (B) to the allowance of the credit or the making of the refund.
  • (2) This subsection shall not apply to—
    • (A) the tax imposed by section 4041 (relating to tax on special fuels) on the use of any liquid, and
    • (B) an overpayment of tax under paragraph (1), (3)(A), (4), (5), or (6) of subsection (b) of this section.
  • (3) For purposes of this subsection, in any case in which the Secretary determines that an article is not taxable, the term “ultimate purchaser” (when used in paragraph (1)(B) of this subsection) includes a wholesaler, jobber, distributor, or retailer who, on the 15th day after the date of such determination, holds such article for sale; but only if claim for credit or refund by reason of this paragraph is filed on or before the date for filing the return with respect to the taxes imposed under chapter 32 for the first period which begins more than 60 days after the date on such determination.
  • (4)
    • (A) For purposes of this subsection, except as provided in subparagraph (B), if an ultimate vendor purchases any gasoline on which tax imposed by section 4081 has been paid and sells such gasoline to an ultimate purchaser described in subparagraph (C) or (D) of subsection (b)(2) (and such gasoline is for a use described in such subparagraph), such ultimate vendor shall be treated as the person (and the only person) who paid such tax, but only if such ultimate vendor is registered under section 4101.
    • (B) For purposes of this subsection, if the purchase of gasoline described in subparagraph (A) (determined without regard to the registration status of the ultimate vendor) is made by means of a credit card issued to the ultimate purchaser, paragraph (1) shall not apply and the person extending the credit to the ultimate purchaser shall be treated as the person (and the only person) who paid the tax, but only if such person—
      • (i) is registered under section 4101,
      • (ii) has established, under regulations prescribed by the Secretary, that such person—
        • (I) has not collected the amount of the tax from the person who purchased such article, or
        • (II) has obtained the written consent from the ultimate purchaser to the allowance of the credit or refund, and
      • (iii) has so established that such person—
        • (I) has repaid or agreed to repay the amount of the tax to the ultimate vendor,
        • (II) has obtained the written consent of the ultimate vendor to the allowance of the credit or refund, or
        • (III) has otherwise made arrangements which directly or indirectly provides the ultimate vendor with reimbursement of such tax.
    • (C) The procedure and timing of any claim under subparagraph (A) or (B) shall be the same as for claims under section 6427(i)(4), except that the rules of section 6427(i)(3)(B) regarding electronic claims shall not apply unless the ultimate vendor or credit card issuer has certified to the Secretary for the most recent quarter of the taxable year that all ultimate purchasers of the vendor or credit card issuer are certified and entitled to a refund under subparagraph (C) or (D) of subsection (b)(2).
• (b) Under regulations prescribed by the Secretary, credit or refund (without interest) shall be allowed or made in respect of the overpayments determined under the following paragraphs:
  • (1)
    • (A) Except as provided in subparagraph (B) or (C), if the price of any article in respect of which a tax, based on such price, is imposed by chapter 31 or 32, is readjusted by reason of the return or repossession of the article or a covering or container, or by a bona fide discount, rebate, or allowance, including a readjustment for local advertising (but only to the extent provided in section 4216(e)(2) and (3)), the part of the tax proportionate to the part of the price repaid or credited to the purchaser shall be deemed to be an overpayment.
    • (B) Subparagraph (A) shall not apply in the case of an article in respect of which tax was computed under section 4223(b)(2); but if the price for which such article was sold is readjusted by reason of the return or repossession of the article, the part of the tax proportionate to the part of such price repaid or credited to the purchaser shall be deemed to be an overpayment.
    • (C) No credit or refund of any tax imposed by subsection (a) or (b) of section 4071 shall be allowed or made by reason of an adjustment of a tire pursuant to a warranty or guarantee.
  • (2) The tax paid under chapter 32 (or under subsection (a) or (d) of section 4041 in respect of sales or under section 4051) in respect of any article shall be deemed to be an overpayment if such article was, by any person—
    • (A) exported;
    • (B) used or sold for use as supplies for vessels or aircraft;
    • (C) sold to a State or local government for the exclusive use of a State or local government;
    • (D) sold to a nonprofit educational organization for its exclusive use;
    • (E) sold to a qualified blood collector organization (as defined in section 7701(a)(49)) for such organization’s exclusive use in the collection, storage, or transportation of blood;
    • (F) in the case of any tire taxable under section 4071(a), sold to any person for use as described in section 4221(e)(3); or
    • (G) in the case of gasoline, used or sold for use in the production of special fuels referred to in section 4041.
  • (3) If the tax imposed by chapter 32 has been paid with respect to the sale of any article (other than coal taxable under section 4121) by the manufacturer, producer, or importer thereof and such article is sold to a subsequent manufacturer or producer before being used, such tax shall be deemed to be an overpayment by such subsequent manufacturer or producer if—
    • (A) in the case of any article other than any fuel taxable under section 4081, such article is used by the subsequent manufacturer or producer as material in the manufacture or production of, or as a component part of—
      • (i) another article taxable under chapter 32, or
      • (ii) an automobile bus chassis or an automobile bus body,
    • (B) in the case of any fuel taxable under section 4081, such fuel is used by the subsequent manufacturer or producer, for nonfuel purposes, as a material in the manufacture or production of any other article manufactured or produced by him.
  • (4) If—
    • (A) the tax imposed by section 4071 has been paid with respect to the sale of any tire by the manufacturer, producer, or importer thereof, and
    • (B) such tire is sold by any person on or in connection with, or with the sale of, any other article, such tax shall be deemed to be an overpayment by such person if such other article is—
      • (i) an automobile bus chassis or an automobile bus body,
      • (ii) by such person exported, sold to a State or local government for the exclusive use of a State or local government, sold to a nonprofit educational organization for its exclusive use, or used or sold for use as supplies for vessels or aircraft, or
      • (iii) sold to a qualified blood collector organization for its exclusive use in connection with a vehicle the organization certifies will be primarily used in the collection, storage, or transportation of blood.
  • (5) If—
    • (A) tax was paid under section 4216(d)(1) in respect of any installment account,
    • (B) such account is, under the agreement under which the account was sold, returned to the person who sold such account, and
    • (C) the consideration is readjusted as provided in such agreement,
  • (6) If—
    • (A) the tax imposed by section 4051 has been paid with respect to the sale of any article, and
    • (B) before any other use, such article is by any person used as a component part of another article taxable under section 4051 manufactured or produced by him,
• (c) Under regulations prescribed by the Secretary the amount of any tax imposed by chapter 31, or chapter 32 erroneously or illegally collected in respect of any article exported to a foreign country or shipped to a possession of the United States may be refunded to the exporter or shipper thereof, if the person who paid such tax waives his claim to such amount.
• (d) Any person entitled to a refund of tax imposed by chapter 31 or 32, paid to the Secretary may, instead of filing a claim for refund, take credit therefor against taxes imposed by such chapter due on any subsequent return. The preceding sentence shall not apply to the tax imposed by section 4081 in the case of refunds described in section 4081(e).
• (e) Under regulations prescribed by the Secretary, if any person uses or resells like articles, then for purposes of this section the manufacturer, producer, or importer of any such article may be identified, and the amount of tax paid under chapter 32 in respect of such article may be determined—
  • (1) on a first-in-first-out basis,
  • (2) on a last-in-first-out basis, or
  • (3) in accordance with any other consistent method approved by the Secretary.
• (f) For purposes of this section, any term used in this section has the same meaning as when used in chapter 31, 32, or 33, as the case may be.

§ 6419. Excise tax on wagering

• (a) No overpayment of tax imposed by chapter 35 shall be credited or refunded (otherwise than under subsection (b)), in pursuance of a court decision or otherwise, unless the person who paid the tax establishes, in accordance with regulations prescribed by the Secretary, (1) that he has not collected (whether as a separate charge or otherwise) the amount of the tax from the person who placed the wager on which the tax was imposed, or (2) that he has repaid the amount of the tax to the person who placed such wager, or unless he files with the Secretary written consent of the person who placed such wager to the allowance of the credit or the making of the refund. In the case of any laid-off wager, no overpayment of tax imposed by chapter 35 shall be so credited or refunded to the person with whom such laid-off wager was placed unless he establishes, in accordance with regulations prescribed by the Secretary, that the provisions of the preceding sentence have been complied with both with respect to the person who placed the laid-off wager with him and with respect to the person who placed the original wager.
• (b) Where any taxpayer lays off part or all of a wager with another person who is liable for tax imposed by chapter 35 on the amount so laid off, a credit against such tax shall be allowed, or a refund shall be made to, the taxpayer laying off such amount. Such credit or refund shall be in an amount which bears the same ratio to the amount of tax which such taxpayer paid on the original wager as the amount so laid off bears to the amount of the original wager. Credit or refund under this subsection shall be allowed or made only in accordance with regulations prescribed by the Secretary, and no interest shall be allowed with respect to any amount so credited or refunded.

§ 6420. Gasoline used on farms

• (a) Except as provided in subsection (g), if gasoline is used on a farm for farming purposes, the Secretary shall pay (without interest) to the ultimate purchaser of such gasoline the amount determined by multiplying—
  • (1) the number of gallons so used, by
  • (2) the rate of tax on gasoline under section 4081 which applied on the date he purchased such gasoline.
• (b) Not more than one claim may be filed under this section by any person with respect to gasoline used during his taxable year, and no claim shall be allowed under this section with respect to gasoline used during any taxable year unless filed by such person not later than the time prescribed by law for filing a claim for credit or refund of overpayment of income tax for such taxable year. For purposes of this subsection, a person’s taxable year shall be his taxable year for purposes of subtitle A.
• (c) For purposes of this section—
  • (1) Gasoline shall be treated as used on a farm for farming purposes only if used (A) in carrying on a trade or business, (B) on a farm situated in the United States, and (C) for farming purposes.
  • (2) The term “farm” includes stock, dairy, poultry, fruit, fur-bearing animal, and truck farms, plantations, ranches, nurseries, ranges, greenhouses or other similar structures used primarily for the raising of agricultural or horticultural commodities, and orchards.
  • (3) Gasoline shall be treated as used for farming purposes only if used—
    • (A) by the owner, tenant, or operator of a farm, in connection with cultivating the soil, or in connection with raising or harvesting any agricultural or horticultural commodity, including the raising, shearing, feeding, caring for, training, and management of livestock, bees, poultry, and fur-bearing animals and wildlife, on a farm of which he is the owner, tenant, or operator;
    • (B) by the owner, tenant, or operator of a farm, in handling, drying, packing, grading, or storing any agricultural or horticultural commodity in its unmanufactured state; but only if such owner, tenant or operator produced more than one-half of the commodity which he so treated during the period with respect to which claim is filed;
    • (C) by the owner, tenant, or operator of a farm, in connection with—
      • (i) the planting, cultivating, caring for, or cutting of trees, or
      • (ii) the preparation (other than milling) of trees for market,
    • (D) by the owner, tenant, or operator of a farm, in connection with the operation, management, conservation, improvement, or maintenance of such farm and its tools and equipment.
  • (4) In applying paragraph (3)(A) to a use on a farm for any purpose described in paragraph (3)(A) by any person other than the owner, tenant, or operator of such farm—
    • (A) the owner, tenant, or operator of such farm shall be treated as the user and ultimate purchaser of the gasoline, except that
    • (B) if the person so using the gasoline is an aerial or other applicator of fertilizers or other substances and is the ultimate purchaser of the gasoline, then subparagraph (A) of this paragraph shall not apply and the aerial or other applicator shall be treated as having used such gasoline on a farm for farming purposes.
  • (5) The term “gasoline” has the meaning given to such term by section 4083(a).
• (d) No amount shall be payable under this section with respect to any gasoline which the Secretary determines was exempt from the tax imposed by section 4081. The amount which (but for this sentence) would be payable under this section with respect to any gasoline shall be reduced by any other amount which the Secretary determines is payable under this section, or is refundable under any provision of this title, to any person with respect to such gasoline.
• (e)
  • (1) All provisions of law, including penalties, applicable in respect of the tax imposed by section 4081 shall, insofar as applicable and not inconsistent with this section, apply in respect of the payments provided for in this section to the same extent as if such payments constituted refunds of overpayments of the tax so imposed.
  • (2) For the purpose of ascertaining the correctness of any claim made under this section, or the correctness of any payment made in respect of any such claim, the Secretary shall have the authority granted by paragraphs (1), (2), and (3) of section 7602(a) (relating to examination of books and witnesses) as if the claimant were the person liable for tax.
  • (3) Section 7504 (granting the Secretary discretion with respect to fractional parts of a dollar) shall not apply.
• (f) The Secretary may by regulations prescribe the conditions, not inconsistent with the provisions of this section, under which payments may by made under this section.
• (g)
  • (1) Payment shall be made under subsection (a), only to—
    • (A) the United States or an agency or instrumentality thereof, a State, a political subdivision of a State, or an agency or instrumentality of one or more States or political subdivisions, or
    • (B) an organization exempt from tax under section 501(a) (other than an organization required to make a return of the tax imposed under subtitle A for its taxable year).
  • (2) For allowance of credit against the tax imposed by subtitle A, see section 34.
• [(h)
• (i)
  • (1) For exemption from tax in case of special fuels used on a farm for farming purposes, see section 4041(f).
  • (2) For civil penalty for excessive claim under this section, see section 6675.
  • (3) For fraud penalties, etc., see chapter 75 (section 7201 and following, relating to crimes, other offenses, and forfeitures).
  • (4) For treatment of an Indian tribal government as a State (and a subdivision of an Indian tribal government as a political subdivision of a State), see section 7871.

§ 6421. Gasoline used for certain nonhighway purposes, used by local transit systems, or sold for certain exempt purposes

• (a) Except as provided in subsection (i), if gasoline is used in an off-highway business use, the Secretary shall pay (without interest) to the ultimate purchaser of such gasoline an amount equal to the amount determined by multiplying the number of gallons so used by the rate at which tax was imposed on such gasoline under section 4081. Except as provided in paragraph (2) of subsection (f) of this section, in the case of gasoline used as a fuel in an aircraft, the Secretary shall pay (without interest) to the ultimate purchaser of such gasoline an amount equal to the amount determined by multiplying the number of gallons of gasoline so used by the rate at which tax was imposed on such gasoline under section 4081.
• (b)
  • (1) Except as provided in paragraph (2) and subsection (i), if gasoline is used in an automobile bus while engaged in—
    • (A) furnishing (for compensation) passenger land transportation available to the general public, or
    • (B) the transportation of students and employees of schools (as defined in the last sentence of section 4221(d)(7)(C)),
  • (2) Paragraph (1)(A) shall not apply in respect of gasoline used in any automobile bus while engaged in furnishing transportation which is not scheduled and not along regular routes unless the seating capacity of such bus is at least 20 adults (not including the driver).
• (c) If gasoline is sold to any person for any purpose described in paragraph (2), (3), (4), (5), or (6) of section 4221(a), the Secretary shall pay (without interest) to such person an amount equal to the product of the number of gallons of gasoline so sold multiplied by the rate at which tax was imposed on such gasoline by section 4081. The preceding sentence shall apply notwithstanding paragraphs (2) and (3) of subsection (f). Subsection (a) shall not apply to gasoline to which this subsection applies.
• (d)
  • (1) Except as provided in paragraph (2), not more than one claim may be filed under subsection (a), not more than one claim may be filed under subsection (b), and not more than one claim may be filed under subsection (c), by any person with respect to gasoline used during his taxable year; and no claim shall be allowed under this paragraph with respect to gasoline used during any taxable year unless filed by such person not later than the time prescribed by law for filing a claim for credit or refund of overpayment of income tax for such taxable year. For purposes of this subsection, a person’s taxable year shall be his taxable year for purposes of subtitle A.
  • (2) For payments per quarter based on aggregate amounts payable under this section and section 6427, see section 6427(i)(2).
  • (3) For purposes of this subsection, gasoline shall be treated as used for a purpose referred to in subsection (c) when it is sold for such a purpose.
• (e) For purposes of this section—
  • (1) The term “gasoline” has the meaning given to such term by section 4083(a).
  • (2)
    • (A) The term “off-highway business use” means any use by a person in a trade or business of such person or in an activity of such person described in section 212 (relating to production of income) otherwise than as a fuel in a highway vehicle—
      • (i) which (at the time of such use), is registered, or is required to be registered, for highway use under the laws of any State or foreign country, or
      • (ii) which, in the case of a highway vehicle owned by the United States, is used on the highway.
    • (B)
      • (i) Except as otherwise provided in this subparagraph, the term “off-highway business use” does not include any use in a motorboat.
      • (ii) The term “off-highway business use” shall include any use in a vessel employed in the fisheries or in the whaling business.
    • (C)
      • (i) The term “off-highway business use” shall include any use in a vehicle which meets the requirements described in clause (ii).
      • (ii) The requirements described in this clause are—
        • (I) the design-based test, and
        • (II) the use-based test.
      • (iii) For purposes of clause (ii)(I), the design-based test is met if the vehicle consists of a chassis—
        • (I) to which there has been permanently mounted (by welding, bolting, riveting, or other means) machinery or equipment to perform a construction, manufacturing, processing, farming, mining, drilling, timbering, or similar operation if the operation of the machinery or equipment is unrelated to transportation on or off the public highways,
        • (II) which has been specially designed to serve only as a mobile carriage and mount (and a power source, where applicable) for the particular machinery or equipment involved, whether or not such machinery or equipment is in operation, and
        • (III) which, by reason of such special design, could not, without substantial structural modification, be used as a component of a vehicle designed to perform a function of transporting any load other than that particular machinery or equipment or similar machinery or equipment requiring such a specially designed chassis.
      • (iv) For purposes of clause (ii)(II), the use-based test is met if the use of the vehicle on public highways was less than 7,500 miles during the taxpayer’s taxable year. This clause shall be applied without regard to use of the vehicle by any organization which is described in section 501(c) and exempt from tax under section 501(a).
• (f)
  • (1) This section shall not apply in respect of gasoline which was (within the meaning of paragraphs (1), (2), and (3) of section 6420(c)) used on a farm for farming purposes.
  • (2) This section shall not apply in respect of gasoline which is used as a fuel in an aircraft—
    • (A) in aviation which is not commercial aviation (as defined in section 4083(b)), or
    • (B) in commercial aviation (as so defined) with respect to the tax imposed by section 4081 at the Leaking Underground Storage Tank Trust Fund financing rate and, in the case of fuel purchased after September 30, 1995 , at so much of the rate specified in section 4081(a)(2)(A) as does not exceed 4.3 cents per gallon.
  • (3) In the case of gasoline used as a fuel in a train, this section shall not apply with respect to—
    • (A) the Leaking Underground Storage Tank Trust Fund financing rate under section 4081, and
    • (B) so much of the rate specified in section 4081(a)(2)(A) as does not exceed the rate applicable under section 4041(a)(1)(C)(ii).
• (g)
  • (1) All provisions of law, including penalties, applicable in respect to the tax imposed by section 4081 shall, insofar as applicable and not inconsistent with this section, apply in respect of the payments provided for in this section to the same extent as if such payments constituted refunds of overpayments of the tax so imposed.
  • (2) For the purpose of ascertaining the correctness of any claim made under this section, or the correctness of any payment made in respect of any such claim, the Secretary shall have the authority granted by paragraphs (1), (2), and (3) of section 7602(a) (relating to examination of books and witnesses) as if the claimant were the person liable for tax.
• (h) The Secretary may by regulations prescribe the conditions, not inconsistent with the provisions of this section, under which payments may be made under this section.
• (i)
  • (1) Payment shall be made under subsections (a) and (b) only to—
    • (A) the United States or any agency or instrumentality thereof, a State, a political subdivision of a State, or any agency or instrumentality of one or more States or political subdivisions, or
    • (B) an organization exempt from tax under section 501(a) (other than an organization required to make a return of the tax imposed under subtitle A for its taxable year).
  • (2) Paragraph (1) shall not apply to a payment of a claim filed under subsection (d)(2).
  • (3) For allowance of credit against the tax imposed by subtitle A, see section 34.
• (j)
  • (1) For civil penalty for excessive claims under this section, see section 6675.
  • (2) For fraud penalties, etc., see chapter 75 (section 7201 and following, relating to crimes, other offenses, and forfeitures).
  • (3) For treatment of an Indian tribal government as a State (and a subdivision of an Indian tribal government as a political subdivision of a State), see section 7871.

§ 6422. Cross references

• (1) For limitations on credits and refunds, see subchapter B of chapter 66.
• (2) For overpayment in case of adjustments to accrued foreign taxes, see section 905(c).
• (3) For credit or refund in case of deficiency dividends paid by a personal holding company, see section 547.
• (4) For refund, credit, or abatement of amounts disallowed by courts upon review of Tax Court decision, see section 7486.
• (5) For refund or redemption of stamps, see chapter 69.
• (6) For abatement, credit, or refund in case of jeopardy assessments, see chapter 70.
• (7) For restrictions on transfers and assignments of claims against the United States, see section 3727 of title 31 , United States Code.
• (8) For set-off of claims against amounts due the United States, see section 3728 of title 31 , United States Code.
• (9) For special provisions relating to alcohol and tobacco taxes, see subtitle E.
• (10) For credit or refund in case of deficiency dividends paid by a regulated investment company or real estate investment trust, see section 860.

§ 6423. Conditions to allowance in the case of alcohol and tobacco taxes

• (a) No credit or refund shall be allowed or made, in pursuance of a court decision or otherwise, of any amount paid or collected as an alcohol or tobacco tax unless the claimant establishes (under regulations prescribed by the Secretary)—
  • (1) that he bore the ultimate burden of the amount claimed; or
  • (2) that he has unconditionally repaid the amount claimed to the person who bore the ultimate burden of such amount; or
  • (3) that (A) the owner of the commodity furnished him the amount claimed for payment of the tax, (B) he has filed with the Secretary the written consent of such owner to the allowance to the claimant of the credit or refund, and (C) such owner satisfies the requirements of paragraph (1) or (2).
• (b) No credit or refund of any amount to which subsection (a) applies shall be allowed or made unless a claim therefor has been filed by the person who paid the amount claimed, and unless such claim is filed within the time prescribed by law and in accordance with regulations prescribed by the Secretary. All evidence relied upon in support of such claim shall be clearly set forth and submitted with the claim.
• (c) This section shall apply only if the credit or refund is claimed on the grounds that an amount of alcohol or tobacco tax was assessed or collected erroneously, illegally, without authority, or in any manner wrongfully, or on the grounds that such amount was excessive. This section shall not apply to—
  • (1) any claim for drawback, and
  • (2) any claim made in accordance with any law expressly providing for credit or refund where a commodity is withdrawn from the market, returned to bond, or lost or destroyed.
• (d) For purposes of this section—
  • (1) The term “alcohol or tobacco tax” means—
    • (A) any tax imposed by chapter 51 (other than part II of subchapter A, relating to occupational taxes) or by chapter 52 or by any corresponding provision of prior internal revenue laws, and
    • (B) in the case of any commodity of a kind subject to a tax described in subparagraph (A), any tax equal to any such tax, any additional tax, or any floor stocks tax.
  • (2) The term “tax” includes a tax and an exaction denominated a “tax”, and any penalty, addition to tax, additional amount, or interest applicable to any such tax.
  • (3) The claimant shall be treated as having borne the ultimate burden of an amount of an alcohol or tobacco tax for purposes of subsection (a)(1), and the owner referred to in subsection (a)(3) shall be treated as having borne such burden for purposes of such subsection, only if—
    • (A) he has not, directly or indirectly, been relieved of such burden or shifted such burden to any other person,
    • (B) no understanding or agreement exists for any such relief or shifting, and
    • (C) if he has neither sold nor contracted to sell the commodities involved in such claim, he agrees that there will be no such relief or shifting, and furnishes such bond as the Secretary may require to insure faithful compliance with his agreement.

§ 6425. Adjustment of overpayment of estimated income tax by corporation

• (a)
  • (1) A corporation may, after the close of the taxable year and on or before the 15th day of the fourth month thereafter, and before the day on which it files a return for such taxable year, file an application for an adjustment of an overpayment by it of estimated income tax for such taxable year. An application under this subsection shall not constitute a claim for credit or refund.
  • (2) An application under this subsection shall be verified in the manner prescribed by section 6065 in the case of a return of the taxpayer, and shall be filed in the manner and form required by regulations prescribed by the Secretary. The application shall set forth—
    • (A) the estimated income tax paid by the corporation during the taxable year,
    • (B) the amount which, at the time of filing the application, the corporation estimates as its income tax liability for the taxable year,
    • (C) the amount of the adjustment, and
    • (D) such other information for purposes of carrying out the provisions of this section as may be required by such regulations.
• (b)
  • (1) Within a period of 45 days from the date on which an application for an adjustment is filed under subsection (a), the Secretary shall make, to the extent he deems practicable in such period, a limited examination of the application to discover omissions and errors therein, and shall determine the amount of the adjustment upon the basis of the application and the examination; except that the Secretary may disallow, without further action, any application which he finds contains material omissions or errors which he deems cannot be corrected within such 45 days.
  • (2) The Secretary, within the 45-day period referred to in paragraph (1), may credit the amount of the adjustment against any liability in respect of an internal revenue tax on the part of the corporation and shall refund the remainder to the corporation.
  • (3) No application under this section shall be allowed unless the amount of the adjustment equals or exceeds (A) 10 percent of the amount estimated by the corporation on its application as its income tax liability for the taxable year, and (B) $500.
  • (4) For purposes of this title (other than section 6655), any adjustment under this section shall be treated as a reduction, in the estimated income tax paid, made on the day the credit is allowed or the refund is paid.
• (c) For purposes of this section and section 6655(h) (relating to excessive adjustment)—
  • (1) The term “income tax liability” means the excess of—
    • (A) the sum of—
      • (i) the tax imposed by section 11, or subchapter L of chapter 1, whichever is applicable, plus
      • (ii) the tax imposed by section 59A, over
    • (B) the credits against tax provided by part IV of subchapter A of chapter 1.
  • (2) The amount of an adjustment under this section is equal to the excess of—
    • (A) the estimated income tax paid by the corporation during the taxable year, over
    • (B) the amount which, at the time of filing the application, the corporation estimates as its income tax liability for the taxable year.
• (d) If the corporation seeking an adjustment under this section paid its estimated income tax on a consolidated basis or expects to make a consolidated return for the taxable year, this section shall apply only to such extent and subject to such conditions, limitations, and exceptions as the Secretary may by regulations prescribe.

§ 6426. Credit for alcohol fuel, biodiesel, and alternative fuel mixtures

• (a) There shall be allowed as a credit—
  • (1) against the tax imposed by section 4081 an amount equal to the sum of the credits described in subsections (b), (c), and (e), and
  • (2) against the tax imposed by section 4041 an amount equal to the sum of the credits described in subsection (d).
• (b)
  • (1) For purposes of this section, the alcohol fuel mixture credit is the product of the applicable amount and the number of gallons of alcohol used by the taxpayer in producing any alcohol fuel mixture for sale or use in a trade or business of the taxpayer.
  • (2) For purposes of this subsection—
    • (A) Except as provided in subparagraphs (B) and (C), the applicable amount is—
      • (i) in the case of calendar years beginning before 2009, 51 cents, and
      • (ii) in the case of calendar years beginning after 2008, 45 cents.
    • (B) In the case of an alcohol fuel mixture in which none of the alcohol consists of ethanol, the applicable amount is 60 cents.
    • (C) In the case of any calendar year beginning after 2008, if the Secretary makes a determination described in section 40(h)(3)(B) with respect to all preceding calendar years beginning after 2007, subparagraph (A)(ii) shall be applied by substituting “51 cents” for “45 cents”.
  • (3) For purposes of this subsection, the term “alcohol fuel mixture” means a mixture of alcohol and a taxable fuel which—
    • (A) is sold by the taxpayer producing such mixture to any person for use as a fuel, or
    • (B) is used as a fuel by the taxpayer producing such mixture.
  • (4) For purposes of this subsection—
    • (A) The term “alcohol” includes methanol and ethanol but does not include—
      • (i) alcohol produced from petroleum, natural gas, or coal (including peat), or
      • (ii) alcohol with a proof of less than 190 (determined without regard to any added denaturants).
    • (B) The term “taxable fuel” has the meaning given such term by section 4083(a)(1).
  • (5) For purposes of determining under subsection (a) the number of gallons of alcohol with respect to which a credit is allowable under subsection (a), the volume of alcohol shall include the volume of any denaturant (including gasoline) which is added under any formulas approved by the Secretary to the extent that such denaturants do not exceed 2 percent of the volume of such alcohol (including denaturants).
  • (6) This subsection shall not apply to any sale, use, or removal for any period after December 31, 2011 .
• (c)
  • (1) For purposes of this section, the biodiesel mixture credit is the product of the applicable amount and the number of gallons of biodiesel used by the taxpayer in producing any biodiesel mixture for sale or use in a trade or business of the taxpayer.
  • (2) For purposes of this subsection, the applicable amount is $1.00.
  • (3) For purposes of this section, the term “biodiesel mixture” means a mixture of biodiesel and diesel fuel (as defined in section 4083(a)(3)), determined without regard to any use of kerosene, which—
    • (A) is sold by the taxpayer producing such mixture to any person for use as a fuel, or
    • (B) is used as a fuel by the taxpayer producing such mixture.
  • (4) No credit shall be allowed under this subsection unless the taxpayer obtains a certification (in such form and manner as prescribed by the Secretary) from the producer of the biodiesel which identifies the product produced and the percentage of biodiesel and agri-biodiesel in the product.
  • (5) Any term used in this subsection which is also used in section 40A shall have the meaning given such term by section 40A.
  • (6) This subsection shall not apply to any sale, use, or removal for any period after December 31, 2022 .
• (d)
  • (1) For purposes of this section, the alternative fuel credit is the product of 50 cents and the number of gallons of an alternative fuel or gasoline gallon equivalents of a nonliquid alternative fuel sold by the taxpayer for use as a fuel in a motor vehicle or motorboat, sold by the taxpayer for use as a fuel in aviation, or so used by the taxpayer.
  • (2) For purposes of this section, the term “alternative fuel” means—
    • (A) liquefied petroleum gas,
    • (B) P Series Fuels (as defined by the Secretary of Energy under section 13211(2) of title 42 , United States Code),
    • (C) compressed or liquefied natural gas,
    • (D) liquefied hydrogen,
    • (E) any liquid fuel which meets the requirements of paragraph (4) and which is derived from coal (including peat) through the Fischer-Tropsch process,
    • (F) compressed or liquefied gas derived from biomass (as defined in section 45K(c)(3)), and
    • (G) liquid fuel derived from biomass (as defined in section 45K(c)(3)).
  • (3) For purposes of this subsection, the term “gasoline gallon equivalent” means, with respect to any nonliquid alternative fuel, the amount of such fuel having a Btu content of 124,800 (higher heating value).
  • (4)
    • (A) The requirements of this paragraph are met if the fuel is certified, under such procedures as required by the Secretary, as having been derived from coal produced at a gasification facility which separates and sequesters not less than the applicable percentage of such facility’s total carbon dioxide emissions.
    • (B) For purposes of subparagraph (A), the applicable percentage is—
      • (i) 50 percent in the case of fuel produced after September 30, 2009 , and on or before December 30, 2009 , and
      • (ii) 75 percent in the case of fuel produced after December 30, 2009 .
  • (5) This subsection shall not apply to any sale or use for any period after December 31, 2020 .
• (e)
  • (1) For purposes of this section, the alternative fuel mixture credit is the product of 50 cents and the number of gallons of alternative fuel used by the taxpayer in producing any alternative fuel mixture for sale or use in a trade or business of the taxpayer.
  • (2) For purposes of this section, the term “alternative fuel mixture” means a mixture of alternative fuel (other than a fuel described in subparagraph (A), (C), or (F) of subsection (d)(2)) and taxable fuel (as defined in subparagraph (A), (B), or (C) of section 4083(a)(1)) which—
    • (A) is sold by the taxpayer producing such mixture to any person for use as fuel, or
    • (B) is used as a fuel by the taxpayer producing such mixture.
  • (3) This subsection shall not apply to any sale or use for any period after December 31, 2020 .
• (f)
  • (1) If—
    • (A) any credit was determined under this section with respect to alcohol or biodiesel used in the production of any alcohol fuel mixture or biodiesel mixture, respectively, and
    • (B) any person—
      • (i) separates the alcohol or biodiesel from the mixture, or
      • (ii) without separation, uses the mixture other than as a fuel,
  • (2) All provisions of law, including penalties, shall, insofar as applicable and not inconsistent with this section, apply in respect of any tax imposed under paragraph (1) as if such tax were imposed by section 4081 and not by this section.
• (g) Rules similar to the rules under section 40(c) shall apply for purposes of this section.
• (h) No credit shall be determined under subsection (d) or (e) with respect to any fuel with respect to which credit may be determined under subsection (b) or (c) or under section 40 or 40A.
• (i)
  • (1) No credit shall be determined under this section with respect to any alcohol which is produced outside the United States for use as a fuel outside the United States.
  • (2) No credit shall be determined under this section with respect to any biodiesel or alternative fuel which is produced outside the United States for use as a fuel outside the United States.
• (j) For purposes of determining any credit under this section, any reference to the number of gallons of an alternative fuel or the gasoline gallon equivalent of such a fuel shall be treated as a reference to—
  • (1) in the case of liquefied petroleum gas, the energy equivalent of a gallon of gasoline, as defined in section 4041(a)(2)(C), and
  • (2) in the case of liquefied natural gas, the energy equivalent of a gallon of diesel, as defined in section 4041(a)(2)(D).

§ 6427. Fuels not used for taxable purposes

• (a) Except as provided in subsection (k), if tax has been imposed under paragraph (2) or (3) of section 4041(a) or section 4041(c) on the sale of any fuel and the purchaser uses such fuel other than for the use for which sold, or resells such fuel, the Secretary shall pay (without interest) to him an amount equal to—
  • (1) the amount of tax imposed on the sale of the fuel to him, reduced by
  • (2) if he uses the fuel, the amount of tax which would have been imposed under section 4041 on such use if no tax under section 4041 had been imposed on the sale of the fuel.
• (b)
  • (1) Except as otherwise provided in this subsection and subsection (k), if any fuel other than gasoline (as defined in section 4083(a)) on the sale of which tax was imposed by section 4041(a) or 4081 is used in an automobile bus while engaged in—
    • (A) furnishing (for compensation) passenger land transportation available to the general public, or
    • (B) the transportation of students and employees of schools (as defined in the last sentence of section 4221(d)(7)(C)),
  • (2)
    • (A) Except as provided in subparagraphs (B) and (C), the rate of tax taken into account under paragraph (1) shall be 7.4 cents per gallon less than the aggregate rate at which tax was imposed on such fuel by section 4041(a) or 4081, as the case may be.
    • (B) Subparagraph (A) shall not apply to fuel used in an automobile bus while engaged in the transportation described in paragraph (1)(B).
    • (C) Subparagraph (A) shall not apply to fuel used in any automobile bus while engaged in furnishing (for compensation) intracity passenger land transportation—
      • (i) which is available to the general public, and
      • (ii) which is scheduled and along regular routes,
    • (D) For purposes of this paragraph, the term “qualified local bus” means any local bus—
      • (i) which has a seating capacity of at least 20 adults (not including the driver), and
      • (ii) which is under contract (or is receiving more than a nominal subsidy) from any State or local government (as defined in section 4221(d)) to furnish such transportation.
  • (3) Paragraph (1)(A) shall not apply in respect of fuel used in any automobile bus while engaged in furnishing transportation which is not scheduled and not along regular routes unless the seating capacity of such bus is at least 20 adults (not including the driver).
  • (4) With respect to any fuel to which paragraph (2)(A) applies, if the ultimate purchaser of such fuel waives (at such time and in such form and manner as the Secretary shall prescribe) the right to payment under paragraph (1) and assigns such right to the ultimate vendor, then the Secretary shall pay the amount which would be paid under paragraph (1) to such ultimate vendor, but only if such ultimate vendor—
    • (A) is registered under section 4101, and
    • (B) meets the requirements of subparagraph (A), (B), or (D) of section 6416(a)(1).
• (c) Except as provided in subsection (k), if any fuel on the sale of which tax was imposed under paragraph (2) or (3) of section 4041(a) or section 4041(c) is used on a farm for farming purposes (within the meaning of section 6420(c)), the Secretary shall pay (without interest) to the purchaser an amount equal to the amount of the tax imposed on the sale of the fuel. For purposes of this subsection, if fuel is used on a farm by any person other than the owner, tenant, or operator of such farm, the rules of paragraph (4) of section 6420(c) shall be applied (except that “liquid taxable under section 4041” shall be substituted for “gasoline” each place it appears in such paragraph (4)).
• (d) Except as provided in subsection (k), if—
  • (1) any gasoline on which tax was imposed by section 4081, or
  • (2) any fuel on the sale of which tax was imposed under section 4041,
• (e) Except as provided in subsection (k)—
  • (1) If any person produces a mixture described in section 6426 in such person’s trade or business, the Secretary shall pay (without interest) to such person an amount equal to the alcohol fuel mixture credit or the biodiesel mixture credit or the alternative fuel mixture credit with respect to such mixture.
  • (2) If any person sells or uses an alternative fuel (as defined in section 6426(d)(2)) for a purpose described in section 6426(d)(1) in such person’s trade or business, the Secretary shall pay (without interest) to such person an amount equal to the alternative fuel credit with respect to such fuel.
  • (3) No amount shall be payable under paragraph (1) or (2) with respect to any mixture or alternative fuel with respect to which an amount is allowed as a credit under section 6426.
  • (4) The Secretary shall not make any payment under this subsection to any person with respect to any alternative fuel credit or alternative fuel mixture credit unless the person is registered under section 4101.
  • (5) No amount shall be payable under paragraph (1) or (2) with respect to any mixture or alternative fuel if credit is not allowed with respect to such mixture or alternative fuel by reason of section 6426(i).
  • (6) This subsection shall not apply with respect to—
    • (A) any alcohol fuel mixture (as defined in section 6426(b)(3)) sold or used after December 31, 2011 ,
    • (B) any biodiesel mixture (as defined in section 6426(c)(3)) sold or used after December 31, 2022 ,
    • (C) any alternative fuel (as defined in section 6426(d)(2)) sold or used after December 31, 2020 , and
    • (D) any alternative fuel mixture (as defined in section 6426(e)(2)) sold or used after December 31, 2011 .
• [(f)
• [(g)
• (h)
  • (1) Except as provided in subsection (k), if any gasoline blend stock or additive (within the meaning of section 4083(a)(2)) is not used by any person to produce gasoline and such person establishes that the ultimate use of such gasoline blend stock or additive is not to produce gasoline, the Secretary shall pay (without interest) to such person an amount equal to the aggregate amount of the tax imposed on such person with respect to such gasoline blend stock or additive.
  • (2) Except as provided in subsection (k), if any diesel fuel blend stock is not used by any person to produce diesel fuel and such person establishes that the ultimate use of such diesel fuel blend stock is not to produce diesel fuel, the Secretary shall pay (without interest) to such person an amount equal to the aggregate amount of the tax imposed on such person with respect to such diesel fuel blend stock.
• (i)
  • (1) Except as otherwise provided in this subsection, not more than one claim may be filed under subsection (a), (b), (c), (d), (h), ( l ), (m), or ( o ) by any person with respect to fuel used during his taxable year; and no claim shall be allowed under this paragraph with respect to fuel used during any taxable year unless filed by the purchaser not later than the time prescribed by law for filing a claim for credit or refund of overpayment of income tax for such taxable year. For purposes of this paragraph, a person’s taxable year shall be his taxable year for purposes of subtitle A.
  • (2)
    • (A) If, at the close of any quarter of the taxable year of any person, at least $750 is payable in the aggregate under subsections (a), (b), (d), (h), ( l ), (m), and ( o ) of this section and section 6421 to such person with respect to fuel used during—
      • (i) such quarter, or
      • (ii) any prior quarter (for which no other claim has been filed) during such taxable year,
    • (B) No claim filed under this paragraph shall be allowed unless filed during the first quarter following the last quarter included in the claim.
    • (C) This paragraph shall not apply to any fuel used solely in any off-highway business use described in section 6421(e)(2)(C).
  • (3)
    • (A) A claim may be filed under subsection (e)(1) by any person with respect to a mixture described in section 6426 or under subsection (e)(2) by any person with respect to an alternative fuel (as defined in section 6426(d)(2)) for any period—
      • (i) for which $200 or more is payable under such subsection (e)(1) or (e)(2), and
      • (ii) which is not less than 1 week.
    • (B) Notwithstanding subsection (e)(1) or (e)(2), if the Secretary has not paid pursuant to a claim filed under this section within 45 days of the date of the filing of such claim (20 days in the case of an electronic claim), the claim shall be paid with interest from such date determined by using the overpayment rate and method under section 6621.
    • (C) No claim filed under this paragraph shall be allowed unless filed on or before the last day of the first quarter following the earliest quarter included in the claim.
  • (4)
    • (A) A claim may be filed under paragraph (4)(C) or (5) of subsection ( l ) by any person with respect to fuel sold by such person for any period—
      • (i) for which $200 or more ($100 or more in the case of kerosene) is payable under paragraph (4)(C) or (5) of subsection ( l ), and
      • (ii) which is not less than 1 week.
    • (B) No claim filed under this paragraph shall be allowed unless filed on or before the last day of the first quarter following the earliest quarter included in the claim.
• (j)
  • (1) All provisions of law, including penalties, applicable in respect of the taxes imposed by sections 4041 and 4081 shall, insofar as applicable and not inconsistent with this section, apply in respect of the payments provided for in this section to the same extent as if such payments constituted refunds of overpayments of the tax so imposed.
  • (2) For the purpose of ascertaining the correctness of any claim made under this section, or the correctness of any payment made in respect of any such claim, the Secretary shall have the authority granted by paragraphs (1), (2), and (3) of section 7602(a) (relating to examination of books and witnesses) as if the claimant were the person liable for tax.
• (k)
  • (1) Payment shall be made under this section only to—
    • (A) the United States or an agency or instrumentality thereof, a State, a political subdivision of a State, or any agency or instrumentality of one or more States or political subdivisions, or
    • (B) an organization exempt from tax under section 501(a) (other than an organization required to make a return of the tax imposed under subtitle A for its taxable year).
  • (2) Paragraph (1) shall not apply to a payment of a claim filed under paragraph (2), (3), or (4) of subsection (i).
  • (3) For allowances of credit against the income tax imposed by subtitle A for fuel used or resold by the purchaser, see section 34.
• (l)
  • (1) Except as otherwise provided in this subsection and in subsection (k), if any diesel fuel or kerosene on which tax has been imposed by section 4041 or 4081 is used by any person in a nontaxable use, the Secretary shall pay (without interest) to the ultimate purchaser of such fuel an amount equal to the aggregate amount of tax imposed on such fuel under section 4041 or 4081, as the case may be, reduced by any payment made to the ultimate vendor under paragraph (4)(C)(i).
  • (2) For purposes of this subsection, the term “nontaxable use” means any use which is exempt from the tax imposed by section 4041(a)(1) other than by reason of a prior imposition of tax.
  • (3) For purposes of this subsection, the term “nontaxable use” includes fuel used in a diesel-powered train. The preceding sentence shall not apply with respect to—
    • (A) the Leaking Underground Storage Tank Trust Fund financing rate under sections 4041 and 4081, and
    • (B) so much of the rate specified in section 4081(a)(2)(A) as does not exceed the rate applicable under section 4041(a)(1)(C)(ii).
  • (4)
    • (A) In the case of kerosene used in commercial aviation (as defined in section 4083(b)) (other than supplies for vessels or aircraft within the meaning of section 4221(d)(3)), paragraph (1) shall not apply to so much of the tax imposed by section 4041 or 4081, as the case may be, as is attributable to—
      • (i) the Leaking Underground Storage Tank Trust Fund financing rate imposed by such section, and
      • (ii) so much of the rate of tax specified in section 4041(c) or 4081(a)(2)(A)(iii), as the case may be, as does not exceed 4.3 cents per gallon.
    • (B) In the case of kerosene used in aviation that is not commercial aviation (as so defined) (other than any use which is exempt from the tax imposed by section 4041(c) other than by reason of a prior imposition of tax), paragraph (1) shall not apply to—
      • (i) any tax imposed by subsection (c) or (d)(2) of section 4041, and
      • (ii) so much of the tax imposed by section 4081 as is attributable to—
        • (I) the Leaking Underground Storage Tank Trust Fund financing rate imposed by such section, and
        • (II) so much of the rate of tax specified in section 4081(a)(2)(A)(iii) as does not exceed the rate specified in section 4081(a)(2)(C)(ii).
    • (C)
      • (i) With respect to any kerosene used in aviation (other than kerosene described in clause (ii) or kerosene to which paragraph (5) applies), if the ultimate purchaser of such kerosene waives (at such time and in such form and manner as the Secretary shall prescribe) the right to payment under paragraph (1) and assigns such right to the ultimate vendor, then the Secretary shall pay the amount which would be paid under paragraph (1) to such ultimate vendor, but only if such ultimate vendor—
        • (I) is registered under section 4101, and
        • (II) meets the requirements of subparagraph (A), (B), or (D) of section 6416(a)(1).
      • (ii) The amount which would be paid under paragraph (1) with respect to any kerosene to which subparagraph (B) applies shall be paid only to the ultimate vendor of such kerosene. A payment shall be made to such vendor if such vendor—
        • (I) is registered under section 4101, and
        • (II) meets the requirements of subparagraph (A), (B), or (D) of section 6416(a)(1).
  • (5)
    • (A) Paragraph (1) shall not apply to diesel fuel or kerosene used by a State or local government.
    • (B) Paragraph (1) shall not apply to kerosene (other than kerosene used in aviation) sold by a vendor—
      • (i) for any use if such sale is from a pump which (as determined under regulations prescribed by the Secretary) is not suitable for use in fueling any diesel-powered highway vehicle or train, or
      • (ii) to the extent provided by the Secretary, for blending with heating oil to be used during periods of extreme or unseasonable cold.
    • (C) Except as provided in subparagraph (D), the amount which would (but for subparagraph (A) or (B)) have been paid under paragraph (1) with respect to any fuel shall be paid to the ultimate vendor of such fuel, if such vendor—
      • (i) is registered under section 4101, and
      • (ii) meets the requirements of subparagraph (A), (B), or (D) of section 6416(a)(1).
    • (D) For purposes of this paragraph, if the purchase of any fuel described in subparagraph (A) (determined without regard to the registration status of the ultimate vendor) is made by means of a credit card issued to the ultimate purchaser, the Secretary shall pay to the person extending the credit to the ultimate purchaser the amount which would have been paid under paragraph (1) (but for subparagraph (A)), but only if such person meets the requirements of clauses (i), (ii), and (iii) of section 6416(a)(4)(B). If such clause (i), (ii), or (iii) is not met by such person extending the credit to the ultimate purchaser, then such person shall collect an amount equal to the tax from the ultimate purchaser and only such ultimate purchaser may claim such amount.
• (m)
  • (1) Except as provided in subsection (k), if any diesel fuel on which tax was imposed by section 4081 at the regular tax rate is used by any person in producing an emulsion described in section 4081(a)(2)(D) which is sold or used in such person’s trade or business, the Secretary shall pay (without interest) to such person an amount equal to the excess of the regular tax rate over the incentive tax rate with respect to such fuel.
  • (2) For purposes of paragraph (1)—
    • (A) The term “regular tax rate” means the aggregate rate of tax imposed by section 4081 determined without regard to section 4081(a)(2)(D).
    • (B) The term “incentive tax rate” means the aggregate rate of tax imposed by section 4081 determined with regard to section 4081(a)(2)(D).
• (n) The Secretary may by regulations prescribe the conditions, not inconsistent with the provisions of this section, under which payments may be made under this section.
• (o) For purposes of subsections (a), (b), and (c), the taxes imposed by section 4041(d) shall be treated as imposed by section 4041(a).
• (p)
  • (1) For civil penalty for excessive claims under this section, see section 6675.
  • (2) For fraud penalties, etc., see chapter 75 (section 7201 and following, relating to crimes, other offenses, and forfeitures).
  • (3) For treatment of an Indian tribal government as a State (and a subdivision of an Indian tribal government as a political subdivision of a State), see section 7871.

§ 6428. 2020 Recovery rebates for individuals

• (a) In the case of an eligible individual, there shall be allowed as a credit against the tax imposed by subtitle A for the first taxable year beginning in 2020 an amount equal to the sum of—
  • (1) $1,200 ($2,400 in the case of eligible individuals filing a joint return), plus
  • (2) an amount equal to the product of $500 multiplied by the number of qualifying children (within the meaning of section 24(c)) of the taxpayer.
• (b) The credit allowed by subsection (a) shall be treated as allowed by subpart C of part IV of subchapter A of chapter 1.
• (c) The amount of the credit allowed by subsection (a) (determined without regard to this subsection and subsection (e)) shall be reduced (but not below zero) by 5 percent of so much of the taxpayer’s adjusted gross income as exceeds—
  • (1) $150,000 in the case of a joint return,
  • (2) $112,500 in the case of a head of household, and
  • (3) $75,000 in the case of a taxpayer not described in paragraph (1) or (2).
• (d) For purposes of this section, the term “eligible individual” means any individual other than—
  • (1) any nonresident alien individual,
  • (2) any individual with respect to whom a deduction under section 151 is allowable to another taxpayer for a taxable year beginning in the calendar year in which the individual’s taxable year begins, and
  • (3) an estate or trust.
• (e)
  • (1) The amount of credit which would (but for this paragraph) be allowable under this section shall be reduced (but not below zero) by the aggregate refunds and credits made or allowed to the taxpayer under subsection (f). Any failure to so reduce the credit shall be treated as arising out of a mathematical or clerical error and assessed according to section 6213(b)(1).
  • (2) In the case of a refund or credit made or allowed under subsection (f) with respect to a joint return, half of such refund or credit shall be treated as having been made or allowed to each individual filing such return.
• (f)
  • (1) Subject to paragraph (5), each individual who was an eligible individual for such individual’s first taxable year beginning in 2019 shall be treated as having made a payment against the tax imposed by chapter 1 for such taxable year in an amount equal to the advance refund amount for such taxable year.
  • (2) For purposes of paragraph (1), the advance refund amount is the amount that would have been allowed as a credit under this section for such taxable year if this section (other than subsection (e) and this subsection) had applied to such taxable year.
  • (3)
    • (A) The Secretary shall, subject to the provisions of this title, refund or credit any overpayment attributable to this section as rapidly as possible. No refund or credit shall be made or allowed under this subsection after December 31, 2020 .
    • (B) Notwithstanding any other provision of law, the Secretary may certify and disburse refunds payable under this subsection electronically to any account to which the payee authorized, on or after January 1, 2018 , the delivery of a refund of taxes under this title or of a Federal payment (as defined in section 3332 of title 31 , United States Code).
    • (C) Notwithstanding section 3325 of title 31 , United States Code, or any other provision of law, with respect to any payment of a refund under this subsection, a disbursing official in the executive branch of the United States Government may modify payment information received from an officer or employee described in section 3325(a)(1)(B) of such title for the purpose of facilitating the accurate and efficient delivery of such payment. Except in cases of fraud or reckless neglect, no liability under sections 3325, 3527, 3528, or 3529 of title 31, United States Code, shall be imposed with respect to payments made under this subparagraph.
  • (4) No interest shall be allowed on any overpayment attributable to this section.
  • (5) In the case of an individual who, at the time of any determination made pursuant to paragraph (3), has not filed a tax return for the year described in paragraph (1), the Secretary may—
    • (A) apply such paragraph by substituting “2018” for “2019”, and
    • (B) if the individual has not filed a tax return for such individual’s first taxable year beginning in 2018, use information with respect to such individual for calendar year 2019 provided in—
      • (i) Form SSA–1099, Social Security Benefit Statement, or
      • (ii) Form RRB–1099, Social Security Equivalent Benefit Statement.
  • (6) Not later than 15 days after the date on which the Secretary distributed any payment to an eligible taxpayer pursuant to this subsection, notice shall be sent by mail to such taxpayer’s last known address. Such notice shall indicate the method by which such payment was made, the amount of such payment, and a phone number for the appropriate point of contact at the Internal Revenue Service to report any failure to receive such payment.
• (g)
  • (1) No credit shall be allowed under subsection (a) to an eligible individual who does not include on the return of tax for the taxable year—
    • (A) such individual’s valid identification number,
    • (B) in the case of a joint return, the valid identification number of such individual’s spouse, and
    • (C) in the case of any qualifying child taken into account under subsection (a)(2), the valid identification number of such qualifying child.
  • (2)
    • (A) For purposes of paragraph (1), the term “valid identification number” means a social security number (as such term is defined in section 24(h)(7)).
    • (B) For purposes of paragraph (1)(C), in the case of a qualifying child who is adopted or placed for adoption, the term “valid identification number” shall include the adoption taxpayer identification number of such child.
  • (3) Paragraph (1)(B) shall not apply in the case where at least 1 spouse was a member of the Armed Forces of the United States at any time during the taxable year and at least 1 spouse satisfies paragraph (1)(A).
  • (4) Any omission of a correct valid identification number required under this subsection shall be treated as a mathematical or clerical error for purposes of applying section 6213(g)(2) to such omission.
• (h) The Secretary shall prescribe such regulations or other guidance as may be necessary to carry out the purposes of this section, including any such measures as are deemed appropriate to avoid allowing multiple credits or rebates to a taxpayer.

§ 6430. Treatment of tax imposed at Leaking Underground Storage Tank Trust Fund financing rate

No refunds, credits, or payments shall be made under this subchapter for any tax imposed at the Leaking Underground Storage Tank Trust Fund financing rate, except in the case of fuels—

• (1) which are exempt from tax under section 4081(a) by reason of section 4082(f)(2),
• (2) which are exempt from tax under section 4041(d) by reason of the last sentence of paragraph (5) thereof, or
• (3) with respect to which the rate increase under section 4081(a)(2)(B) is zero by reason of section 4082(e)(2).