26 U.S.C. § 6425 — Adjustment of overpayment of estimated

Page 3648 TITLE 26—INTERNAL REVENUE CODE [§ 6424 claimant who has on or before Apr. 30, 1958, filed a claim for any amount to which subsec. (a) applies, may file a superseding claim after Apr. 30, 1958, conforming to the requirements of this section and covering the amount claimed in such prior claim. Subsec. (c). Pub. L. 94–455, § 1906(a)(29)(B), (C), redesig- nated subsec. (d) as (c) and struck out par. (3) relating to any amount claimed with respect to a commodity which has been lost, where a suit or proceeding was in- stituted before June 15, 1957. Former subsec. (c), relat- ing to disallowance of any suit or proceeding which was barred on Apr. 30, 1958, was struck out. Subsecs. (d), (e). Pub. L. 94–455, § 1906(a)(29)(B), (b)(13)(A), redesignated subsec. (e) as (d) and struck out ‘‘or his delegate’’ after ‘‘Secretary’’. Former subsec. (d) redesignated (c). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1976 AMENDMENT Amendment by Pub. L. 94–455 effective on first day of first month which begins more than 90 days after Oct. 4, 1976, see section 1906(d)(1) of Pub. L. 94–455, set out as a note under section 6013 of this title. EFFECTIVE DATE Pub. L. 85–323, § 3, Feb. 11, 1958, 72 Stat. 10, provided that this section shall not apply to any credit or refund allowed or made before May 1, 1958. [§ 6424. Repealed. Pub. L. 97–424, title V, § 515(b)(5), Jan. 6, 1983, 96 Stat. 2181] Section, added Pub. L. 89–44, title II, § 202(b), June 21, 1965, 79 Stat. 137; amended Pub. L. 91–258, title II, § 207(b), May 21, 1970, 84 Stat. 248; Pub. L. 94–455, title XIX, § 1906(a)(30), (b)(13)(A), Oct. 4, 1976, 90 Stat. 1828, 1834; Pub. L. 95–618, title II, §§ 222(a)(3), 233(b)(1), (2)(A), Nov. 9, 1978, 92 Stat. 3187, 3191; Pub. L. 97–473, title II, § 202(b)(13), Jan. 14, 1983, 96 Stat. 2610, had provided for payments by the Secretary of an amount equal to 6 cents for each gallon of lubricating oil used in a quali- fied business use or in a qualified bus to certain ulti- mate purchasers of the lubricating oil. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF REPEAL Repeal applicable with respect to articles sold after Jan. 6, 1983, see section 515(c) of Pub. L. 97–424, set out as an Effective Date of 1983 Amendment note under sec- tion 34 of this title. § 6425. Adjustment of overpayment of estimated income tax by corporation (a) Application of adjustment (1) Time for filing 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) Form of application, etc. 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 re- quired by regulations prescribed by the Sec- retary. 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) Allowance of adjustment (1) Limited examination of application 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 ap- plication to discover omissions and errors therein, and shall determine the amount of the adjustment upon the basis of the applica- tion and the examination; except that the Sec- retary may disallow, without further action, any application which he finds contains mate- rial omissions or errors which he deems can- not be corrected within such 45 days. (2) Adjustment credited or refunded The Secretary, within the 45-day period re- ferred to in paragraph (1), may credit the amount of the adjustment against any liabil- ity in respect of an internal revenue tax on the part of the corporation and shall refund the re- mainder to the corporation. (3) Limitation No application under this section shall be al- lowed unless the amount of the adjustment equals or exceeds (A) 10 percent of the amount estimated by the corporation on its applica- tion as its income tax liability for the taxable year, and (B) $500. (4) Effect of adjustment For purposes of this title (other than section 6655), any adjustment under this section shall be treated as a reduction, in the estimated in- come tax paid, made on the day the credit is allowed or the refund is paid. (c) Definitions 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 sub- chapter L of chapter 1, whichever is appli- cable, plus (ii) the tax imposed by section 55, plus (iii) 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) Consolidated returns If the corporation seeking an adjustment under this section paid its estimated income tax Page 3649 TITLE 26—INTERNAL REVENUE CODE § 6426 on a consolidated basis or expects to make a consolidated return for the taxable year, this section shall apply only to such extent and sub- ject to such conditions, limitations, and excep- tions as the Secretary may by regulations pre- scribe. (Added Pub. L. 90–364, title I, § 103(d)(1), June 28, 1968, 82 Stat. 262; amended Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 99–499, title V, § 516(b)(4)(C), Oct. 17, 1986, 100 Stat. 1771; Pub. L. 99–514, title VII, § 701(d)(2), Oct. 22, 1986, 100 Stat. 2342; Pub. L. 100–203, title X, § 10301(b)(4), Dec. 22, 1987, 101 Stat. 1330–429; Pub. L. 113–295, div. A, title II, § 221(a)(12)(J), Dec. 19, 2014, 128 Stat. 4039; Pub. L. 114–41, title II, § 2006(a)(2)(E), July 31, 2015, 129 Stat. 457; Pub. L. 115–97, title I, §§ 12001(b)(17), 13001(b)(2)(P), 14401(d)(3), Dec. 22, 2017, 131 Stat. 2094, 2097, 2233; Pub. L. 115–141, div. U, title IV, § 401(a)(293), Mar. 23, 2018, 132 Stat. 1198; Pub. L. 117–169, title I, § 10101(a)(4)(F), Aug. 16, 2022, 136 Stat. 1822.) Editorial Notes AMENDMENTS 2022—Subsec. (c)(1)(A). Pub. L. 117–169 amended sub- par. (A) generally. Prior to amendment, subpar. (A) read as follows: ‘‘(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’’. 2018—Subsec. (c)(1)(A). Pub. L. 115–141, which directed amendment of subpar. (A) by substituting ‘‘the sum’’ for ‘‘The sum’’, could not be executed because ‘‘The sum’’ no longer appeared after the amendments made by Pub. L. 115–97. See 2017 Amendment notes below. 2017—Subsec. (c)(1)(A). Pub. L. 115–97, § 14401(d)(3), amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: ‘‘the tax imposed by section 11 or subchapter L of chapter 1, whichever is applicable, over’’. Pub. L. 115–97, § 13001(b)(2)(P), struck out ‘‘or 1201(a),’’ after ‘‘by section 11’’. Pub. L. 115–97, § 12001(b)(17), amended subpar. (A) gen- erally. Prior to amendment, subpar. (A) read as follows: ‘‘The sum of— ‘‘(i) the tax imposed by section 11 or 1201(a), or sub- chapter L of chapter 1, whichever is applicable, plus ‘‘(ii) the tax imposed by section 55, over’’. 2015—Subsec. (a)(1). Pub. L. 114–41 substituted ‘‘fourth month’’ for ‘‘third month’’. 2014—Subsec. (c)(1)(A). Pub. L. 113–295 inserted ‘‘plus’’ at end of cl. (i), substituted ‘‘over’’ for ‘‘plus’’ at end of cl. (ii), and struck out cl. (iii) which read as follows: ‘‘the tax imposed by section 59A, over’’. 1987—Subsec. (c). Pub. L. 100–203 substituted ‘‘section 6655(h)’’ for ‘‘section 6655(g)’’. 1986—Subsec. (c)(1)(A). Pub. L. 99–514 amended subpar. (A) generally, restating existing provisions as cl. (i) and adding cl. (ii). Pub. L. 99–499 amended subsec. (c)(1)(A), as amended by the Tax Reform Act of 1986 (Pub. L. 99–514), by strik- ing out ‘‘plus’’ at end of cl. (i), substituting ‘‘plus’’ for ‘‘over’’ at end of cl. (ii), and adding cl. (iii). 1976—Subsecs. (a), (b), (d). Pub. L. 94–455 struck out ‘‘or his delegate’’ after ‘‘Secretary’’ wherever appear- ing. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2022 AMENDMENT Amendment by Pub. L. 117–169 applicable to taxable years beginning after Dec. 31, 2022, see section 10101(f) of Pub. L. 117–169, set out as a note under section 11 of this title. EFFECTIVE DATE OF 2017 AMENDMENT Amendment by section 12001(b)(17) of Pub. L. 115–97 applicable to taxable years beginning after Dec. 31, 2017, see section 12001(c) of Pub. L. 115–97, set out as a note under section 11 of this title. Amendment by section 13001(b)(2)(P) of Pub. L. 115–97 applicable to taxable years beginning after Dec. 31, 2017, see section 13001(c)(1) of Pub. L. 115–97, set out as a note under section 11 of this title. Amendment by section 14401(d)(3) of Pub. L. 115–97 ap- plicable to base erosion payments (as defined in section 59A(d) of this title) paid or accrued in taxable years be- ginning after Dec. 31, 2017, see section 14401(e) of Pub. L. 115–97, set out as a note under section 26 of this title. EFFECTIVE DATE OF 2015 AMENDMENT Amendment by Pub. L. 114–41 applicable to returns for taxable years beginning after Dec. 31, 2015, with spe- cial rule for certain C corporations, see section 2006(a)(3) of Pub. L. 114–41, set out as a note under sec- tion 170 of this title. EFFECTIVE DATE OF 2014 AMENDMENT Amendment by Pub. L. 113–295 effective Dec. 19, 2014, subject to a savings provision, see section 221(b) of Pub. L. 113–295, set out as a note under section 1 of this title. EFFECTIVE DATE OF 1987 AMENDMENT Amendment by Pub. L. 100–203 applicable to taxable years beginning after Dec. 31, 1987, see section 10301(c) of Pub. L. 100–203, set out as a note under section 585 of this title. EFFECTIVE DATE OF 1986 AMENDMENTS Amendment by Pub. L. 99–514 applicable to taxable years beginning after Dec. 31, 1986, with certain excep- tions and qualifications, see section 701(f) of Pub. L. 99–514, set out as an Effective Date note under section 55 of this title. Amendment by Pub. L. 99–499 applicable to taxable years beginning after Dec. 31, 1986, see section 516(c) of Pub. L. 99–499, set out as a note under section 26 of this title. EFFECTIVE DATE Section applicable with respect to taxable years be- ginning after Dec. 31, 1967, except as provided by sec- tion 104 of Pub. L. 90–364, set out as notes under sec- tions 6154 and 51 of this title, see section 103(f) of Pub. L. 90–364, set out as an Effective Date of 1968 Amend- ment note under section 6154 of this title. APPLICABILITY OF CERTAIN AMENDMENTS BY PUB. L. 99–514 IN RELATION TO TREATY OBLIGATIONS OF UNITED STATES For applicability of amendment by Pub. L. 99–514 not- withstanding any treaty obligation of the United States in effect on Oct. 22, 1986, see section 1012(aa)(2) of Pub. L. 100–647, set out as a note under section 861 of this title. § 6426. Credit for alcohol fuel, biodiesel, and al- ternative fuel mixtures (a) Allowance of credits There shall be allowed as a credit— (1) against the tax imposed by section 4081 an amount equal to the sum of the credits de- scribed in subsections (b), (c), (e), and (k), and (2) against the tax imposed by section 4041 an amount equal to the sum of the credits de- scribed in subsection (d). No credit shall be allowed in the case of the credits described in subsections (d) and (e) un- less the taxpayer is registered under section 4101.