-CITE-
26 USC CHAPTER 67 - INTEREST 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 67 - INTEREST
-HEAD-
CHAPTER 67 - INTEREST
-MISC1-
Subchapter Sec.(!1)
A. Interest on underpayments 6601
B. Interest on overpayments 6611
C. Determination of interest rate; compounding of
interest 6621
D. Notice requirements 6631
AMENDMENTS
1998 - Pub. L. 105-206, title III, Sec. 3308(b), July 22, 1998,
112 Stat. 745, added item for subchapter D.
1982 - Pub. L. 97-248, title III, Sec. 344(b)(3)(B), Sept. 3,
1982, 96 Stat. 636, inserted "; compounding of interest" after
"rate" in item for subchapter C.
1975 - Pub. L. 93-625, Sec. 7(d)(5), Jan. 3, 1975, 88 Stat. 2115,
added item for subchapter C.
-SECREF-
CHAPTER REFERRED TO IN OTHER SECTIONS
This chapter is referred to in sections 6226, 6242, 6247, 7801 of
this title.
-FOOTNOTE-
(!1) Section numbers editorially supplied.
-End-
-CITE-
26 USC Subchapter A - Interest on Underpayments 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 67 - INTEREST
Subchapter A - Interest on Underpayments
-HEAD-
SUBCHAPTER A - INTEREST ON UNDERPAYMENTS
-MISC1-
Sec.
6601. Interest on underpayment, nonpayment, or extensions of
time for payment, of tax.
6602. Interest on erroneous refund recoverable by suit.
-SECREF-
SUBCHAPTER REFERRED TO IN OTHER SECTIONS
This subchapter is referred to in section 6621 of this title.
-End-
-CITE-
26 USC Sec. 6601 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 67 - INTEREST
Subchapter A - Interest on Underpayments
-HEAD-
Sec. 6601. Interest on underpayment, nonpayment, or extensions of
time for payment, of tax
-STATUTE-
(a) General rule
If any amount of tax imposed by this title (whether required to
be shown on a return, or to be paid by stamp or by some other
method) is not paid on or before the last date prescribed for
payment, interest on such amount at the underpayment rate
established under section 6621 shall be paid for the period from
such last date to the date paid.
(b) Last date prescribed for payment
For purposes of this section, the last date prescribed for
payment of the tax shall be determined under chapter 62 with the
application of the following rules:
(1) Extensions of time disregarded
The last date prescribed for payment shall be determined
without regard to any extension of time for payment or any
installment agreement entered into under section 6159.
(2) Installment payments
In the case of an election under section 6156(a) to pay the tax
in installments -
(A) The date prescribed for payment of each installment of
the tax shown on the return shall be determined under section
6156(b), and
(B) The last date prescribed for payment of the first
installment shall be deemed the last date prescribed for
payment of any portion of the tax not shown on the return.
(3) Jeopardy
The last date prescribed for payment shall be determined
without regard to any notice and demand for payment issued, by
reason of jeopardy (as provided in chapter 70), prior to the last
date otherwise prescribed for such payment.
(4) Accumulated earnings tax
In the case of the tax imposed by section 531 for any taxable
year, the last date prescribed for payment shall be deemed to be
the due date (without regard to extensions) for the return of tax
imposed by subtitle A for such taxable year.
(5) Last date for payment not otherwise prescribed
In the case of taxes payable by stamp and in all other cases in
which the last date for payment is not otherwise prescribed, the
last date for payment shall be deemed to be the date the
liability for tax arises (and in no event shall be later than the
date notice and demand for the tax is made by the Secretary).
(c) Suspension of interest in certain income, estate, gift, and
certain excise tax cases
In the case of a deficiency as defined in section 6211 (relating
to income, estate, gift, and certain excise taxes), if a waiver of
restrictions under section 6213(d) on the assessment of such
deficiency has been filed, and if notice and demand by the
Secretary for payment of such deficiency is not made within 30 days
after the filing of such waiver, interest shall not be imposed on
such deficiency for the period beginning immediately after such
30th day and ending with the date of notice and demand and interest
shall not be imposed during such period on any interest with
respect to such deficiency for any prior period. In the case of a
settlement under section 6224(c) which results in the conversion of
partnership items to nonpartnership items pursuant to section
6231(b)(1)(C), the preceding sentence shall apply to a
computational adjustment resulting from such settlement in the same
manner as if such adjustment were a deficiency and such settlement
were a waiver referred to in the preceding sentence.
(d) Income tax reduced by carryback or adjustment for certain
unused deductions
(1) Net operating loss or capital loss carryback
If the amount of any tax imposed by subtitle A is reduced by
reason of a carryback of a net operating loss or net capital
loss, such reduction in tax shall not affect the computation of
interest under this section for the period ending with the filing
date for the taxable year in which the net operating loss or net
capital loss arises.
(2) Foreign tax credit carrybacks
If any credit allowed for any taxable year is increased by
reason of a carryback of tax paid or accrued to foreign countries
or possessions of the United States, such increase shall not
affect the computation of interest under this section for the
period ending with the filing date for the taxable year in which
such taxes were in fact paid or accrued, or, with respect to any
portion of such credit carryback from a taxable year attributable
to a net operating loss carryback or a capital loss carryback
from a subsequent taxable year, such increase shall not affect
the computation of interest under this section for the period
ending with the filing date for such subsequent taxable year.
(3) Certain credit carrybacks
(A) In general
If any credit allowed for any taxable year is increased by
reason of a credit carryback, such increase shall not affect
the computation of interest under this section for the period
ending with the filing date for the taxable year in which the
credit carryback arises, or, with respect to any portion of a
credit carryback from a taxable year attributable to a net
operating loss carryback, capital loss carryback, or other
credit carryback from a subsequent taxable year, such increase
shall not affect the computation of interest under this section
for the period ending with the filing date for such subsequent
taxable year.
(B) Credit carryback defined
For purposes of this paragraph, the term "credit carryback"
has the meaning given such term by section 6511(d)(4)(C).
(4) Filing date
For purposes of this subsection, the term "filing date" has the
meaning given to such term by section 6611(f)(3)(A).(!1)
(e) Applicable rules
Except as otherwise provided in this title -
(1) Interest treated as tax
Interest prescribed under this section on any tax shall be paid
upon notice and demand, and shall be assessed, collected, and
paid in the same manner as taxes. Any reference to this title
(except subchapter B of chapter 63, relating to deficiency
procedures) to any tax imposed by this title shall be deemed also
to refer to interest imposed by this section on such tax.
(2) Interest on penalties, additional amounts, or additions to
the tax
(A) In general
Interest shall be imposed under subsection (a) in respect of
any assessable penalty, additional amount, or addition to the
tax (other than an addition to tax imposed under section
6651(a)(1) or 6653 or under part II of subchapter A of chapter
68) only if such assessable penalty, additional amount, or
addition to the tax is not paid within 21 calendar days from
the date of notice and demand therefor (10 business days if the
amount for which such notice and demand is made equals or
exceeds $100,000), and in such case interest shall be imposed
only for the period from the date of the notice and demand to
the date of payment.
(B) Interest on certain additions to tax
Interest shall be imposed under this section with respect to
any addition to tax imposed by section 6651(a)(1) or 6653 or
under part II of subchapter A of chapter 68 for the period
which -
(i) begins on the date on which the return of the tax with
respect to which such addition to tax is imposed is required
to be filed (including any extensions), and
(ii) ends on the date of payment of such addition to tax.
(3) Payments made within specified period after notice and demand
If notice and demand is made for payment of any amount and if
such amount is paid within 21 calendar days (10 business days if
the amount for which such notice and demand is made equals or
exceeds $100,000) after the date of such notice and demand,
interest under this section on the amount so paid shall not be
imposed for the period after the date of such notice and demand.
(f) Satisfaction by credits
If any portion of a tax is satisfied by credit of an overpayment,
then no interest shall be imposed under this section on the portion
of the tax so satisfied for any period during which, if the credit
had not been made, interest would have been allowable with respect
to such overpayment. The preceding sentence shall not apply to the
extent that section 6621(d) applies.
(g) Limitation on assessment and collection
Interest prescribed under this section on any tax may be assessed
and collected at any time during the period within which the tax to
which such interest relates may be collected.
(h) Exception as to estimated tax
This section shall not apply to any failure to pay any estimated
tax required to be paid by section 6654 or 6655.
(i) Exception as to Federal unemployment tax
This section shall not apply to any failure to make a payment of
tax imposed by section 3301 for a calendar quarter or other period
within a taxable year required under authority of section 6157.
(j) 2-percent rate on certain portion of estate tax extended under
section 6166
(1) In general
If the time for payment of an amount of tax imposed by chapter
11 is extended as provided in section 6166, then in lieu of the
annual rate provided by subsection (a) -
(A) interest on the 2-percent portion of such amount shall be
paid at the rate of 2 percent, and
(B) interest on so much of such amount as exceeds the
2-percent portion shall be paid at a rate equal to 45 percent
of the annual rate provided by subsection (a).
For purposes of this subsection, the amount of any deficiency
which is prorated to installments payable under section 6166
shall be treated as an amount of tax payable in installments
under such section.
(2) 2-percent portion
For purposes of this subsection, the term "2-percent portion"
means the lesser of -
(A)(i) the amount of the tentative tax which would be
determined under the rate schedule set forth in section 2001(c)
if the amount with respect to which such tentative tax is to be
computed were the sum of $1,000,000 and the applicable
exclusion amount in effect under section 2010(c), reduced by
(ii) the applicable credit amount in effect under section
2010(c), or
(B) the amount of the tax imposed by chapter 11 which is
extended as provided in section 6166.
(3) Inflation adjustment
In the case of estates of decedents dying in a calendar year
after 1998, the $1,000,000 amount contained in paragraph (2)(A)
shall be increased by an amount equal to -
(A) $1,000,000, multiplied by
(B) the cost-of-living adjustment determined under section
1(f)(3) for such calendar year by substituting "calendar year
1997" for "calendar year 1992" in subparagraph (B) thereof.
If any amount as adjusted under the preceding sentence is not a
multiple of $10,000, such amount shall be rounded to the next
lowest multiple of $10,000.
(4) Treatment of payments
If the amount of tax imposed by chapter 11 which is extended as
provided in section 6166 exceeds the 2-percent portion, any
payment of a portion of such amount shall, for purposes of
computing interest for periods after such payment, be treated as
reducing the 2-percent portion by an amount which bears the same
ratio to the amount of such payment as the amount of the
2-percent portion (determined without regard to this paragraph)
bears to the amount of the tax which is extended as provided in
section 6166.
(k) No interest on certain adjustments
For provisions prohibiting interest on certain adjustments in
tax, see section 6205(a).
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 817; Pub. L. 85-866, title I,
Secs. 66(c), 83(a)(1), 84(a), title II, Sec. 206(e), Sept. 2, 1958,
72 Stat. 1658, 1663, 1664, 1685; Pub. L. 87-61, title II, Sec.
203(c)(2), June 29, 1961, 75 Stat. 126; Pub. L. 87-834, Sec.
2(e)(3), Oct. 16, 1962, 76 Stat. 972; Pub. L. 88-571, Sec. 3(d),
Sept. 2, 1964, 78 Stat. 858; Pub. L. 89-384, Sec. 1(f), Apr. 8,
1966, 80 Stat. 104; Pub. L. 90-225, Sec. 2(e), Dec. 27, 1967, 81
Stat. 731; Pub. L. 91-53, Sec. 2(e), Aug. 7, 1969, 83 Stat. 92;
Pub. L. 91-172, title I, Sec. 101(j)(49), title V, Sec. 512(e)(3),
Dec. 30, 1969, 83 Stat. 531, 641; Pub. L. 92-178, title VI, Sec.
601(d)(3), Dec. 10, 1971, 85 Stat. 559; Pub. L. 93-406, title II,
Sec. 1016(a)(17), Sept. 2, 1974, 88 Stat. 930; Pub. L. 93-625, Sec.
7(a)(2)(A), (b)(1), Jan. 3, 1975, 88 Stat. 2115; Pub. L. 94-452,
Sec. 3(c)(3), Oct. 2, 1976, 90 Stat. 1514; Pub. L. 94-455, title
XIII, Sec. 1307(d)(2)(H), title XVI, Sec. 1605(b)(10), title XIX,
Secs. 1906(a)(34), (b)(13)(A), title XX, Sec. 2004(b), title XXI,
Sec. 2107(g)(2)(C), Oct. 4, 1976, 90 Stat. 1728, 1755, 1829, 1834,
1867, 1904; Pub. L. 95-30, title II, Sec. 202(d)(4)(C), May 23,
1977, 91 Stat. 150; Pub. L. 95-628, Sec. 8(c)(2), Nov. 10, 1978, 92
Stat. 3632; Pub. L. 96-223, title I, Sec. 101(f)(7), Apr. 2, 1980,
94 Stat. 253; Pub. L. 97-248, title III, Secs. 344(b)(1),
346(c)(2), Sept. 3, 1982, 96 Stat. 635, 637; Pub. L. 98-76, title
II, Sec. 231(b)(2)(D), Aug. 12, 1983, 97 Stat. 429; Pub. L. 98-369,
div. A, title I, Sec. 158(a), title II, Sec. 211(b)(26), title IV,
Sec. 412(b)(7), title VII, Sec. 714(n)(1), July 18, 1984, 98 Stat.
696, 757, 792, 963; Pub. L. 99-514, title XIV, Sec. 1404(c)(3),
title XV, Secs. 1511(c)(11), 1512(a), 1564(a), Oct. 22, 1986, 100
Stat. 2714, 2745, 2746, 2762; Pub. L. 100-203, title X, Sec.
10301(b)(5), Dec. 22, 1987, 101 Stat. 1330-429; Pub. L. 100-647,
title I, Secs. 1015(b)(2)(C), 1018(u)(42), title VI, Sec.
6234(b)(1), title VII, Sec. 7106(c)(5), Nov. 10, 1988, 102 Stat.
3569, 3592, 3736, 3774; Pub. L. 101-239, title VII, Sec.
7721(c)(8), Dec. 19, 1989, 103 Stat. 2400; Pub. L. 101-508, title
XI, Sec. 11801(c)(20)(B), Nov. 5, 1990, 104 Stat. 1388-528; Pub. L.
104-168, title III, Sec. 303(a), (b)(1), July 30, 1996, 110 Stat.
1458; Pub. L. 105-34, title V, Secs. 501(e), 503(a), (c)(2), (3),
title X, Sec. 1055(a), title XII, Sec. 1242(a), Aug. 5, 1997, 111
Stat. 846, 852, 853, 944, 1029; Pub. L. 105-206, title III, Sec.
3301(b), July 22, 1998, 112 Stat. 741.)
-STATAMEND-
ADJUSTMENT OF DOLLAR AMOUNT USED IN DETERMINING "2-PERCENT PORTION"
For adjustment of dollar amount used in determining "2-percent
portion" for purpose of calculating interest under subsection (j)
of this section in the case of decedents dying in calendar year
2004, see section 3.32 of Revenue Procedure 2003-85, set out as a
note under section 1 of this title.
-REFTEXT-
REFERENCES IN TEXT
Section 6611(f)(3)(A), referred to in subsec. (d)(4), was
redesignated section 6611(f)(4)(A) of this title by Pub. L. 105-34,
title X, Sec. 1055(b)(1), Aug. 5, 1997, 111 Stat. 944.
-MISC1-
AMENDMENTS
1998 - Subsec. (f). Pub. L. 105-206 inserted at end "The
preceding sentence shall not apply to the extent that section
6621(d) applies."
1997 - Subsec. (c). Pub. L. 105-34, Sec. 1242(a), inserted at end
"In the case of a settlement under section 6224(c) which results in
the conversion of partnership items to nonpartnership items
pursuant to section 6231(b)(1)(C), the preceding sentence shall
apply to a computational adjustment resulting from such settlement
in the same manner as if such adjustment were a deficiency and such
settlement were a waiver referred to in the preceding sentence."
Subsec. (d)(2) to (4). Pub. L. 105-34, Sec. 1055(a), added par.
(2) and redesignated former pars. (2) and (3) as (3) and (4),
respectively.
Subsec. (j). Pub. L. 105-34, Sec. 503(c)(3), substituted
"2-percent" for "4-percent" in heading.
Subsec. (j)(1). Pub. L. 105-34, Sec. 503(a), reenacted par.
heading without change and amended text generally. Prior to
amendment, text read as follows: "If the time for payment of an
amount of tax imposed by chapter 11 is extended as provided in
section 6166, interest on the 4-percent portion of such amount
shall (in lieu of the annual rate provided by subsection (a)) be
paid at the rate of 4 percent. For purposes of this subsection, the
amount of any deficiency which is prorated to installments payable
under section 6166 shall be treated as an amount of tax payable in
installments under such section."
Subsec. (j)(2). Pub. L. 105-34, Sec. 503(a), amended heading and
text generally. Prior to amendment, text read as follows: "For
purposes of this subsection, the term '4-percent portion' means the
lesser of -
"(A) $345,800 reduced by the amount of the credit allowable
under section 2010(a); or
"(B) the amount of the tax imposed by chapter 11 which is
extended as provided in section 6166."
Subsec. (j)(3). Pub. L. 105-34, Sec. 501(e), added par. (3).
Former par. (3) redesignated (4).
Subsec. (j)(4). Pub. L. 105-34, Sec. 503(c)(2), substituted
"2-percent" for "4-percent" wherever appearing.
Pub. L. 105-34, Sec. 501(e), redesignated par. (3) as (4).
1996 - Subsec. (e)(2)(A). Pub. L. 104-168, Sec. 303(b)(1),
substituted "21 calendar days from the date of notice and demand
therefor (10 business days if the amount for which such notice and
demand is made equals or exceeds $100,000)" for "10 days from the
date of notice and demand therefor".
Subsec. (e)(3). Pub. L. 104-168, Sec. 303(a), substituted
"specified period" for "10 days" in heading and amended text
generally. Prior to amendment, text read as follows: "If notice and
demand is made for payment of any amount, and if such amount is
paid within 10 days after the date of such notice and demand
interest under this section on the amount so paid shall not be
imposed for the period after the date of such notice and demand."
1990 - Subsec. (b)(2). Pub. L. 101-508 struck out "or 6158(a)"
after "6156(a)" in introductory provisions, struck out "or 6158(a),
as the case may be" after "6156(a)" in subpar. (A), and struck out
at end "For purposes of subparagraph (A), section 6158(a) shall be
treated as providing that the date prescribed for payment of each
installment shall not be later than the date prescribed for payment
of the 1985 installment."
1989 - Subsec. (e)(2). Pub. L. 101-239 substituted "section
6651(a)(1) or 6653 or under part II of subchapter A of chapter 68"
for "section 6651(a)(1), 6653, 6659, 6660, or 6661" in subpars. (A)
and (B).
1988 - Subsec. (b)(1). Pub. L. 100-647, Sec. 6234(b)(1), inserted
"or any installment agreement entered into under section 6159"
after "time for payment".
Subsec. (b)(2). Pub. L. 100-647, Sec. 1018(u)(42), made technical
correction to directory language of Pub. L. 99-514, Sec.
1404(c)(3), see 1986 Amendment note below.
Subsec. (e)(2)(A), (B). Pub. L. 100-647, Sec. 1015(b)(2)(C),
substituted "6653, 6659" for "6659".
Subsec. (i). Pub. L. 100-647, Sec. 7106(c)(5), struck out "or
3321" after "3301".
1987 - Subsec. (h). Pub. L. 100-203 substituted "section 6654 or
6655" for "section 6154 or 6654".
1986 - Subsec. (a). Pub. L. 99-514, Sec. 1511(c)(11), substituted
"the underpayment rate established under section 6621" for "an
annual rate established under section 6621".
Subsec. (b)(2). Pub. L. 99-514, Sec. 1404(c)(3), as amended by
Pub. L. 100-647, Sec. 1018(u)(42), substituted "6156(a) or 6158(a)"
for "6152(a), 6156(a), or 6158(a)" in introductory provisions and
"6156(b) or 6158(a)" for "6152(b), 6156(b), or 6158(a)" in subpar.
(A).
Subsec. (b)(4), (5). Pub. L. 99-514, Sec. 1512(a), added par. (4)
and redesignated former par. (4) as (5).
Subsec. (c). Pub. L. 99-514, Sec. 1564(a), inserted "and interest
shall not be imposed during such period on any interest with
respect to such deficiency for any prior period".
1984 - Subsec. (d)(2)(A). Pub. L. 98-369, Sec. 714(n)(1), made
technical correction to directory language of Pub. L. 97-248, Sec.
346(c)(2)(B). See 1982 Amendment note below.
Subsec. (d)(3), (4). Pub. L. 98-369, Sec. 211(b)(26),
redesignated par. (4) as (3) and struck out former par. (3) which
had provided that if the amount of any tax imposed by subtitle A
was reduced by operation of section 815(d)(5) (relating to
reduction of policyholders surplus account of life insurance
companies for certain unused deductions), such reduction in tax
would not affect the computation of interest under this section for
the period ending with the last day of the last taxable year to
which the loss described in section 815(d)(5)(A) was carried under
section 812(b)(2).
Subsec. (e)(2). Pub. L. 98-369, Sec. 158(a), in amending par. (2)
generally, inserted "(other than an addition to tax imposed under
section 6651(a)(1), 6659, 6660, or 6661)", and added subpar. (B).
Subsec. (h). Pub. L. 98-369, Sec. 412(b)(7), amended subsec. (h)
generally, substituting "any estimated tax required to be paid by
section 6154 or 6654" for "estimated tax required by section 6153
or section 6154".
1983 - Subsec. (i). Pub. L. 98-76 inserted "or 3321" after
"3301".
1982 - Subsec. (d)(1). Pub. L. 97-248, Sec. 346(c)(2)(A),
substituted "the filing date for the taxable year" for "the last
day of the taxable year".
Subsec. (d)(2)(A). Pub. L. 97-248, Sec. 346(c)(2)(B), as amended
by Pub. L. 98-369, Sec. 346(c)(2)(B), substituted "the filing date
for" for "the last day of" in two places.
Subsec. (d)(4). Pub. L. 97-248, Sec. 346(c)(2)(C), added par.
(4).
Subsec. (e). Pub. L. 97-248, Sec. 344(b)(1), struck out par. (2)
which had provided that no interest under this section was to be
imposed on the interest provided by this section, and redesignated
pars. (3) and (4) as (2) and (3), respectively.
1980 - Subsec. (c). Pub. L. 96-223 substituted "certain excise
tax cases" for "chapter 41, 42, 43, or 44 tax cases" in heading.
1978 - Subsec. (d)(2). Pub. L. 95-628, Sec. 8(c)(2)(A),
substituted in heading "Certain credit carrybacks" for "Investment
credit carryback", designated existing provision as subpar. (A),
and in subpar. (A) as so designated, inserted heading "In general"
and in text extended the application of the provision to credit
carrybacks, previously limited to investment credit carrybacks,
included other credit carrybacks, and added subpar. (B).
Subsec. (d)(4), (5). Pub. L. 95-628, Sec. 8(c)(2)(B), struck out
pars. (4) and (5) which provided for work incentive program credit
carrybacks and new employee credit carrybacks, respectively.
1977 - Subsec. (d)(5). Pub. L. 95-30 added par. (5).
1976 - Subsec. (b)(2). Pub. L. 94-452 substituted ", 6156(a), or
6158(a)" for "or 6156(a)" and ", 6156(b), or 6158(a)" for "or
6156(b)" and inserted requirement that for purposes of subparagraph
(A), section 6158(a) of this title shall be treated as providing
that the date prescribed for payment of each installment shall not
be later than the date prescribed for payment of the 1985
installment.
Subsec. (b)(4). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck out
"or his delegate" after "Secretary".
Subsec. (c). Pub. L. 94-455, Secs. 1307(d)(2)(H), 1605(b)(10),
substituted in heading "chapter 41, 42" for "chapter 42" and "43,
or 44" for "or 43".
Subsec. (d)(4). Pub. L. 94-455, Sec. 2107(g)(2)(C), inserted ",
an investment credit carryback," after "net operating loss
carryback".
Subsec. (h). Pub. L. 94-455, Sec. 1906(a)(34), struck out "(or
section 59 of the Internal Revenue Code of 1939)".
Subsecs. (j), (k). Pub. L. 94-455, Sec. 2004(b), added subsec.
(j) and redesignated former subsec. (j) as (k).
1975 - Subsec. (a). Pub. L. 93-625, Sec. 7(a)(2)(A), substituted
"an annual rate established under section 6621" for "the rate of 6
percent per annum".
Subsecs. (b) to (l). Pub. L. 93-625, Sec. 7(b)(1), struck out
subsec. (b) relating to extensions of time for payment of estate
tax, redesignated subsecs. (c) to (i) as (b) to (h), respectively,
struck out subsec. (j) relating to extensions of time for payment
of tax attributable to recoveries of foreign expropriation losses,
and redesignated subsecs. (k) and (l) as (i) and (j), respectively.
1974 - Subsec. (d). Pub. L. 93-406 inserted reference to chapter
43 in heading, and substituted "certain excise" for "chapter 42" in
text.
1971 - Subsec. (e)(4). Pub. L. 92-178 added par. (4).
1969 - Subsec. (d). Pub. L. 91-172, Sec. 101(j)(49), inserted
reference to chapter 42 both in subsec. heading and in text.
Subsec. (e)(1). Pub. L. 91-172, Sec. 512(e)(3)(A), (B),
substituted "loss or capital loss carryback" for "loss carryback"
in heading, and "net operating loss or net capital loss" for "net
operating loss" wherever it appears in text.
Subsec. (e)(2). Pub. L. 91-172, Sec. 512(e)(3)(C), substituted
"loss carryback or a capital loss carryback" for "loss carryback".
Subsecs. (k), (l). Pub. L. 91-53 added subsec. (k) and
redesignated former subsec. (k) as (l).
1967 - Subsec. (e)(2). Pub. L. 90-225 inserted ", or with respect
to any portion of an investment credit carryback from a taxable
year attributable to a net operating loss carryback from a
subsequent taxable year, such increase shall not affect the
computation of interest under this section for the period ending
with the last day of such subsequent taxable year," after "the
investment credit carryback arises".
1966 - Subsecs. (j), (k). Pub. L. 89-384 added subsec. (j) and
redesignated former subsec. (j) as (k).
1964 - Subsec. (e). Pub. L. 88-571 added par. (3) and inserted
"or adjustment for certain unused deductions" in heading.
1962 - Subsec. (e). Pub. L. 87-834 designated existing provisions
as par. (1) and added par. (2).
1961 - Subsec. (c)(2). Pub. L. 87-61 substituted "6152(a) or
6156(a)" for "6152(a)" in introductory provisions, and "6152(b) or
6156(b), as the case may be" for "6152(b)" in subpar. (A).
1958 - Subsec. (b). Pub. L. 85-866, Secs. 66(c), 206(e), inserted
reference to section 6166, and substituted "if the time for payment
of an amount of such tax is postponed or extended as provided by
section 6163" for "if postponement of the payment of an amount of
such tax is permitted by section 6163(a)".
Subsecs. (g) to (j). Pub. L. 85-866, Secs. 83(a)(1), 84(a), added
subsecs. (g) and (h) and redesignated former subsecs. (g) and (h)
as (h) and (i), respectively.
EFFECTIVE DATE OF 1998 AMENDMENT
Pub. L. 105-206, title III, Sec. 3301(c), July 22, 1998, 112
Stat. 741, as amended by Pub. L. 105-277, div. J, title IV, Sec.
4002(d), Oct. 21, 1998, 112 Stat. 2681-906, provided that:
"(1) In general. - Except as provided under paragraph (2), the
amendments made by this section [amending this section and section
6621 of this title] shall apply to interest for periods beginning
after the date of the enactment of this Act [July 22, 1998].
"(2) Special rule. - Subject to any applicable statute of
limitation not having expired with regard to either a tax
underpayment or a tax overpayment, the amendments made by this
section shall apply to interest for periods beginning before the
date of the enactment of this Act if the taxpayer -
"(A) reasonably identifies and establishes periods of such tax
overpayments and underpayments for which the zero rate applies;
and
"(B) not later than December 31, 1999, requests the Secretary
of the Treasury to apply section 6621(d) of the Internal Revenue
Code of 1986, as added by subsection (a), to such periods."
EFFECTIVE DATE OF 1997 AMENDMENT
Amendment by section 501(e) of Pub. L. 105-34 applicable to
estates of decedents dying, and gifts made, after Dec. 31, 1997,
see section 501(f) of Pub. L. 105-34, set out as a note under
section 2001 of this title.
Amendment by section 503(a), (c)(2), (3) of Pub. L. 105-34
applicable to estates of decedents dying after Dec. 31, 1997, with
special rule in case of estate of any decedent dying before Jan. 1,
1998, with respect to which there is an election under section 6166
of this title, see section 503(d) of Pub. L. 105-34, set out as a
note under section 163 of this title.
Section 1055(c) of Pub. L. 105-34 provided that: "The amendments
made by this section [amending this section and section 6611 of
this title] shall apply to foreign tax credit carrybacks arising in
taxable years beginning after the date of the enactment of this Act
[Aug. 5, 1997]."
Section 1242(b) of Pub. L. 105-34 provided that: "The amendment
made by this section [amending this section] shall apply to
adjustments with respect to partnership taxable years beginning
after the date of the enactment of this Act [Aug. 5, 1997]."
EFFECTIVE DATE OF 1996 AMENDMENT
Section 303(c) of Pub. L. 104-168 provided that: "The amendments
made by this section [amending this section and section 6651 of
this title] shall apply in the case of any notice and demand given
after December 31, 1996."
EFFECTIVE DATE OF 1989 AMENDMENT
Amendment by Pub. L. 101-239 applicable to returns the due date
for which (determined without regard to extensions) is after Dec.
31, 1989, see section 7721(d) of Pub. L. 101-239, set out as a note
under section 461 of this title.
EFFECTIVE DATE OF 1988 AMENDMENT
Amendment by section 1015(b)(2)(C) of Pub. L. 100-647 applicable
to returns the due date for which (determined without regard to
extensions) is after Dec. 31, 1988, see section 1015(b)(4) of Pub.
L. 100-647, set out as a note under section 6013 of this title.
Amendment by section 1018(u)(42) of Pub. L. 100-647 effective,
except as otherwise provided, as if included in the provision of
the Tax Reform Act of 1986, Pub. L. 99-514, to which such amendment
relates, see section 1019(a) of Pub. L. 100-647, set out as a note
under section 1 of this title.
Amendment by section 6234(b)(1) of Pub. L. 100-647 applicable to
agreements entered into after Nov. 10, 1988, see section 6234(c) of
Pub. L. 100-647, set out as an Effective Date note under section
6159 of this title.
Amendment by section 7106(c)(5) of Pub. L. 100-647 applicable to
remuneration paid after Dec. 31, 1988, see section 7106(d) of Pub.
L. 100-647, set out as a note under section 3321 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 AMENDMENT
Amendment by section 1404(c)(3) of Pub. L. 99-514 applicable to
taxable years beginning after Dec. 31, 1986, see section 1404(d) of
Pub. L. 99-514, set out as a note under section 643 of this title.
Amendment by section 1511(c)(11) of Pub. L. 99-514 applicable for
purposes of determining interest for periods after Dec. 31, 1986,
see section 1511(d) of Pub. L. 99-514, set out as a note under
section 47 of this title.
Section 1512(b) of Pub. L. 99-514 provided that: "The amendments
made by this section [amending this section] shall apply to returns
the due date for which (determined without regard to extensions) is
after December 31, 1985."
Section 1564(b) of Pub. L. 99-514 provided that:
"(1) Effective date. - The amendment made by subsection (a)
[amending this section] shall apply to interest accruing after
December 31, 1982.
"(2) Statute of limitations. - If refund or credit of any amount
resulting from the application of the amendment made by subsection
(a) is prevented at any time before the close of the date which is
1 year after the date of the enactment of this Act [Oct. 22, 1986]
by the operation of any law or rule of law (including res
judicata), refund or credit of such amount (to the extent
attributable to the application of the amendment made by subsection
(a)) may, nevertheless, be made or allowed if claim therefore [sic]
is filed before the close of such 1-year period."
EFFECTIVE DATE OF 1984 AMENDMENT
Section 158(b) of Pub. L. 98-369 provided that: "The amendment
made by this section [amending this section] shall apply to
interest accrued after the date of the enactment of this Act [July
18, 1984], except with respect to additions to tax for which notice
and demand is made before such date."
Amendment by section 211(b)(26) of Pub. L. 98-369 applicable to
taxable years beginning after Dec. 31, 1983, see section 215 of
Pub. L. 98-369, set out as an Effective Date note under section 801
of this title.
Amendment by section 412(b)(7) of Pub. L. 98-369 applicable with
respect to taxable years beginning after Dec. 31, 1984, see section
414(a)(1) of Pub. L. 98-369, set out as a note under section 6654
of this title.
Amendment by section 714(n)(1) of Pub. L. 98-369 effective as if
included in the provision of the Tax Equity and Fiscal
Responsibility Act of 1982, Pub. L. 97-248, to which such amendment
relates, see section 715 of Pub. L. 98-369, set out as a note under
section 31 of this title.
EFFECTIVE DATE OF 1983 AMENDMENT
Amendment by Pub. L. 98-76 applicable to remuneration paid after
June 30, 1986, see section 231(d) of Pub. L. 98-76, set out as an
Effective Date note under section 3321 of this title.
EFFECTIVE DATE OF 1982 AMENDMENT
Amendment by section 344(b)(1) of Pub. L. 97-248 applicable to
interest accruing after Dec. 31, 1982, see section 344(c) of Pub.
L. 97-248, set out as an Effective Date note under section 6622 of
this title.
Amendment by section 346(c)(2) of Pub. L. 97-248 applicable to
interest accruing after the 30th day after Sept. 3, 1982, see
section 346(d)(2) of Pub. L. 97-248, set out as a note under
section 6611 of this title.
EFFECTIVE DATE OF 1980 AMENDMENT
Amendment by Pub. L. 96-223 applicable to periods after Feb. 29,
1980, see section 101(i) of Pub. L. 96-223, set out as a note under
section 6161 of this title.
EFFECTIVE DATE OF 1978 AMENDMENT
Amendment by Pub. L. 95-628 applicable to carrybacks arising in
taxable years beginning after Nov. 10, 1978, see section 8(d) of
Pub. L. 95-628, set out as a note under section 6511 of this title.
EFFECTIVE DATE OF 1977 AMENDMENT
Amendment by Pub. L. 95-30 applicable to taxable years beginning
after Dec. 31, 1976, and to credit carrybacks from such years, see
section 202(e) of Pub. L. 95-30, set out as an Effective Date note
under section 51 of this title.
EFFECTIVE DATE OF 1976 AMENDMENTS
Amendment by section 2004(b) of Pub. L. 94-455 applicable to
estates of decedents dying after Dec. 31, 1976, see section 2004(g)
of Pub. L. 94-455, set out as a note under section 6166 of this
title.
Amendment by Pub. L. 94-452 effective Oct. 1, 1977, see section
3(e) of Pub. L. 94-452, set out as a note under section 6151 of
this title.
EFFECTIVE DATE OF 1975 AMENDMENT
Amendment by Pub. L. 93-625 effective July 1, 1975, and
applicable to amounts outstanding on such date or arising
thereafter, see section 7(e) of Pub. L. 93-625, set out as an
Effective Date note under section 6621 of this title.
EFFECTIVE DATE OF 1974 AMENDMENT
Amendment by Pub. L. 93-406 applicable, except as otherwise
provided in section 1017(c) through (i) of Pub. L. 93-406, for plan
years beginning after Sept. 2, 1974, but, in the case of plans in
existence on Jan. 1, 1974, amendment by Pub. L. 93-406 applicable
for plan years beginning after Dec. 31, 1975, see section 1017 of
Pub. L. 93-406, set out as an Effective Date; Transitional Rules
note under section 410 of this title.
EFFECTIVE DATE OF 1971 AMENDMENT
Amendment by Pub. L. 92-178 applicable to taxable years beginning
after Dec. 31, 1971, see section 601(f) of Pub. L. 92-178, set out
as a note under section 381 of this title.
EFFECTIVE DATE OF 1969 AMENDMENT
Amendment by section 101(j)(49) of Pub. L. 91-172 effective Jan.
1, 1970, see section 101(k)(1) of Pub. L. 91-172, set out as an
Effective Date note under section 4940 of this title.
Amendment by section 512(e)(3) of Pub. L. 91-172 applicable with
respect to net capital losses sustained in taxable years beginning
after Dec. 31, 1969, see section 512(g) of Pub. L. 91-172, set out
as an Effective Date of 1969 Amendment note under section 1212 of
this title. Amendment by Pub. L. 91-53 applicable with respect to
calendar years beginning after Dec. 31, 1969, see section 4(a) of
Pub. L. 91-53, set out as an Effective Date note under section 6157
of this title.
EFFECTIVE DATE OF 1967 AMENDMENT
Amendment by Pub. L. 90-225 applicable with respect to investment
credit carrybacks attributable to net operating loss carrybacks
from taxable years ending after July 31, 1967, see section 2(g) of
Pub. L. 90-225, set out as a note under section 46 of this title.
EFFECTIVE DATE OF 1966 AMENDMENT
Amendment by Pub. L. 89-384 applicable with respect to amounts
received after December 31, 1964, in respect of foreign
expropriation losses (as defined in section 1351(b) of this title)
sustained after December 31, 1958, see section 2 of Pub. L. 89-384,
set out as an Effective Date note under section 1351 of this title.
EFFECTIVE DATE OF 1964 AMENDMENT
Amendment by Pub. L. 88-571 effective, with respect to amounts
added to policyholders surplus accounts, for taxable years
beginning after Dec. 31, 1958, see section 3(f) of Pub. L. 88-571,
set out as a note under section 815 of this title.
EFFECTIVE DATE OF 1962 AMENDMENT
Amendment by Pub. L. 87-834 applicable with respect to taxable
years ending after Dec. 31, 1961, see section 2(h) of Pub. L.
87-834, set out as an Effective Date note under section 46 of this
title.
EFFECTIVE DATE OF 1961 AMENDMENT
Amendment by Pub. L. 87-61 effective July 1, 1961, see section
208 of Pub. L. 87-61, set out as a note under section 4041 of this
title.
EFFECTIVE DATE OF 1958 AMENDMENT
Amendment by sections 66(c) and 84(a) of Pub. L. 85-866 effective
Aug. 17, 1954, see section 1(c)(2) of Pub. L. 85-866, set out as a
note under section 165 of this title.
Section 83(d) of Pub. L. 85-866 provided that: "The amendments
made by subsections (a) [amending this section and section 3794 of
I.R.C. 1939], (b) [amending section 6611 of this title and section
3771 of I.R.C. 1939], and (c) [amending section 6611 of this title]
shall apply only in respect of overpayments credited after December
31, 1957."
For effective date of amendment by section 206(e) of Pub. L.
85-866, see section 206(f) of Pub. L. 85-866, set out as a note
under section 6161 of this title.
SAVINGS PROVISION
For provisions that nothing in amendment by Pub. L. 101-508 be
construed to affect treatment of certain transactions occurring,
property acquired, or items of income, loss, deduction, or credit
taken into account prior to Nov. 5, 1990, for purposes of
determining liability for tax for periods ending after Nov. 5,
1990, see section 11821(b) of Pub. L. 101-508, set out as a note
under section 29 of this title.
ADMINISTRATION OF PENALTIES AND INTEREST
Pub. L. 105-206, title III, Sec. 3801, July 22, 1998, 112 Stat.
782, provided that: "The Joint Committee on Taxation and the
Secretary of the Treasury shall each conduct a separate study -
"(1) reviewing the administration and implementation by the
Internal Revenue Service of the interest and penalty provisions
of the Internal Revenue Code of 1986 (including the penalty
reform provisions of the Omnibus Budget Reconciliation Act of
1989 [Pub. L. 101-239, see Tables for classification]); and
"(2) making any legislative and administrative recommendations
the Committee or the Secretary deems appropriate to simplify
penalty or interest administration and reduce taxpayer burden.
Such studies shall be submitted to the Committee on Ways and Means
of the House of Representatives and the Committee on Finance of the
Senate not later than 1 year after the date of the enactment of
this Act [July 22, 1998]."
INTEREST NOT PAYABLE ON UNDERPAYMENTS CREATED OR INCREASED BY TAX
REFORM ACT OF 1976
Section 305 of Pub. L. 95-30, as amended by Pub. L. 99-514, Sec.
2, Oct. 22, 1986, 100 Stat. 2095, provided that: "No interest shall
be payable for any period before April 16, 1977 (March 16, 1977, in
the case of a corporation), on any underpayment of a tax imposed by
the Internal Revenue Code of 1986 [formerly I.R.C. 1954], to the
extent that such underpayment was created or increased by any
provision of the Tax Reform Act of 1976 [Pub. L. 94-455]."
INTEREST ON UNDERPAYMENT
Section 946(a) of Pub. L. 91-172 provided that in the case of any
taxable year ending before Dec. 30, 1969, no interest on
underpayment of taxes, to the extent that such underpayment was
attributable to the amendments made by Pub. L. 91-172, was not to
be assessed or collected for any period before the 90th day after
Dec. 30, 1969.
INTEREST ATTRIBUTABLE TO NET OPERATING LOSS CARRYBACK FOR CERTAIN
TAXABLE YEARS ENDING IN 1954
Section 83(e) of Pub. L. 85-866 provided that if by reason of the
enactment of section 172(b)(1)(A) of this title, a deficiency
resulted for the first taxable year preceding a taxable year ending
after Dec. 31, 1953 but before Aug. 17, 1954 and an overpayment
resulted in the second preceding taxable year, then no interest was
payable for any portion of such deficiency for any period during
which there existed a corresponding overpayment to which interest
was not payable.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 163, 815, 860, 936, 995,
1016, 1260, 1291, 1363, 2053, 5684, 6166, 6167, 6504, 6621, 7404,
7518 of this title; title 29 section 1307; title 46 App. section
1177.
-FOOTNOTE-
(!1) See References in Text note below.
-End-
-CITE-
26 USC Sec. 6602 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 67 - INTEREST
Subchapter A - Interest on Underpayments
-HEAD-
Sec. 6602. Interest on erroneous refund recoverable by suit
-STATUTE-
Any portion of an internal revenue tax (or any interest,
assessable penalty, additional amount, or addition to tax) which
has been erroneously refunded, and which is recoverable by suit
pursuant to section 7405, shall bear interest at the underpayment
rate established under section 6621 from the date of the payment of
the refund.
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 818; Pub. L. 93-625, Sec.
7(a)(2)(B), Jan. 3, 1975, 88 Stat. 2115; Pub. L. 99-514, title XV,
Sec. 1511(c)(12), Oct. 22, 1986, 100 Stat. 2745.)
-MISC1-
AMENDMENTS
1986 - Pub. L. 99-514 substituted "the underpayment rate
established under section 6621" for "an annual rate established
under section 6621".
1975 - Pub. L. 93-625 substituted "an annual rate established
under section 6621" for "the rate of 6 percent per annum".
EFFECTIVE DATE OF 1986 AMENDMENT
Amendment by Pub. L. 99-514 applicable for purposes of
determining interest for periods after Dec. 31, 1986, see section
1511(d) of Pub. L. 99-514, set out as a note under section 47 of
this title.
EFFECTIVE DATE OF 1975 AMENDMENT
Amendment by Pub. L. 93-625 effective July 1, 1975, and
applicable to amounts outstanding on such date or arising
thereafter, see section 7(e) of Pub. L. 93-625, set out as an
Effective Date note under section 6621 of this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 6404, 7405 of this title.
-End-
-CITE-
26 USC Subchapter B - Interest on Overpayments 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 67 - INTEREST
Subchapter B - Interest on Overpayments
-HEAD-
SUBCHAPTER B - INTEREST ON OVERPAYMENTS
-MISC1-
Sec.
6611. Interest on overpayments.
6612. Cross references.
-SECREF-
SUBCHAPTER REFERRED TO IN OTHER SECTIONS
This subchapter is referred to in sections 6512, 6621 of this
title.
-End-
-CITE-
26 USC Sec. 6611 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 67 - INTEREST
Subchapter B - Interest on Overpayments
-HEAD-
Sec. 6611. Interest on overpayments
-STATUTE-
(a) Rate
Interest shall be allowed and paid upon any overpayment in
respect of any internal revenue tax at the overpayment rate
established under section 6621.
(b) Period
Such interest shall be allowed and paid as follows:
(1) Credits
In the case of a credit, from the date of the overpayment to
the due date of the amount against which the credit is taken.
(2) Refunds
In the case of a refund, from the date of the overpayment to a
date (to be determined by the Secretary) preceding the date of
the refund check by not more than 30 days, whether or not such
refund check is accepted by the taxpayer after tender of such
check to the taxpayer. The acceptance of such check shall be
without prejudice to any right of the taxpayer to claim any
additional overpayment and interest thereon.
(3) Late returns
Notwithstanding paragraph (1) or (2) in the case of a return of
tax which is filed after the last date prescribed for filing such
return (determined with regard to extensions), no interest shall
be allowed or paid for any day before the date on which the
return is filed.
[(c) Repealed. Pub. L. 85-866, title I, Sec. 83(c), Sept. 2, 1958,
72 Stat. 1664]
(d) Advance payment of tax, payment of estimated tax, and credit
for income tax withholding
The provisions of section 6513 (except the provisions of
subsection (c) thereof, applicable in determining the date of
payment of tax for purposes of determining the period of limitation
on credit or refund, shall be applicable in determining the date of
payment for purposes of subsection (a).
(e) Disallowance of interest on certain overpayments
(1) Refunds within 45 days after return is filed
If any overpayment of tax imposed by this title is refunded
within 45 days after the last day prescribed for filing the
return of such tax (determined without regard to any extension of
time for filing the return) or, in the case of a return filed
after such last date, is refunded within 45 days after the date
the return is filed, no interest shall be allowed under
subsection (a) on such overpayment.
(2) Refunds after claim for credit or refund
If -
(A) the taxpayer files a claim for a credit or refund for any
overpayment of tax imposed by this title, and
(B) such overpayment is refunded within 45 days after such
claim is filed,
no interest shall be allowed on such overpayment from the date
the claim is filed until the day the refund is made.
(3) IRS initiated adjustments
If an adjustment initiated by the Secretary, results in a
refund or credit of an overpayment, interest on such overpayment
shall be computed by subtracting 45 days from the number of days
interest would otherwise be allowed with respect to such
overpayment.
(f) Refund of income tax caused by carryback or adjustment for
certain unused deductions
(1) Net operating loss or capital loss carryback
For purposes of subsection (a), if any overpayment of tax
imposed by subtitle A results from a carryback of a net operating
loss or net capital loss, such overpayment shall be deemed not to
have been made prior to the filing date for the taxable year in
which such net operating loss or net capital loss arises.
(2) Foreign tax credit carrybacks
For purposes of subsection (a), if any overpayment of tax
imposed by subtitle A results from a carryback of tax paid or
accrued to foreign countries or possessions of the United States,
such overpayment shall be deemed not to have been made before the
filing date for the taxable year in which such taxes were in fact
paid or accrued, or, with respect to any portion of such credit
carryback from a taxable year attributable to a net operating
loss carryback or a capital loss carryback from a subsequent
taxable year, such overpayment shall be deemed not to have been
made before the filing date for such subsequent taxable year.
(3) Certain credit carrybacks
(A) In general
For purposes of subsection (a), if any overpayment of tax
imposed by subtitle A results from a credit carryback, such
overpayment shall be deemed not to have been made before the
filing date for the taxable year in which such credit carryback
arises, or, with respect to any portion of a credit carryback
from a taxable year attributable to a net operating loss
carryback, capital loss carryback, or other credit carryback
from a subsequent taxable year, such overpayment shall be
deemed not to have been made before the filing date for such
subsequent taxable year.
(B) Credit carryback defined
For purposes of this paragraph, the term "credit carryback"
has the meaning given such term by section 6511(d)(4)(C).
(4) Special rules for paragraphs (1), (2), and (3)
(A) Filing date
For purposes of this subsection, the term "filing date" means
the last date prescribed for filing the return of tax imposed
by subtitle A for the taxable year (determined without regard
to extensions).
(B) Coordination with subsection (e)
(i) In general
For purposes of subsection (e) -
(I) any overpayment described in paragraph (1), (2), or
(3) shall be treated as an overpayment for the loss year,
(II) such subsection shall be applied with respect to
such overpayment by treating the return for the loss year
as not filed before claim for such overpayment is filed.
(ii) Loss year
For purposes of this subparagraph, the term "loss year"
means -
(I) in the case of a carryback of a net operating loss or
net capital loss, the taxable year in which such loss
arises,
(II) in the case of a carryback of taxes paid or accrued
to foreign countries or possessions of the United States,
the taxable year in which such taxes were in fact paid or
accrued (or, with respect to any portion of such carryback
from a taxable year attributable to a net operating loss
carryback or a capital loss carryback from a subsequent
taxable year, such subsequent taxable year), and
(III) in the case of a credit carryback (as defined in
paragraph (3)(B)), the taxable year in which such credit
carryback arises (or, with respect to any portion of a
credit carryback from a taxable year attributable to a net
operating loss carryback, a capital loss carryback, or
other credit carryback from a subsequent taxable year, such
subsequent taxable year).
(C) Application of subparagraph (B) where section 6411(a) claim
filed
For purposes of subparagraph (B)(i)(II), if a taxpayer -
(i) files a claim for refund of any overpayment described
in paragraph (1), (2), or (3) with respect to the taxable
year to which a loss or credit is carried back, and
(ii) subsequently files an application under section
6411(a) with respect to such overpayment,
then the claim for overpayment shall be treated as having been
filed on the date the application under section 6411(a) was
filed.
(g) No interest until return in processible form
(1) For purposes of subsections (b)(3) and (e), a return shall
not be treated as filed until it is filed in processible form.
(2) For purposes of paragraph (1), a return is in a processible
form if -
(A) such return is filed on a permitted form, and
(B) such return contains -
(i) the taxpayer's name, address, and identifying number
and the required signature, and
(ii) sufficient required information (whether on the return
or on required attachments) to permit the mathematical
verification of tax liability shown on the return.
(h) Prohibition of administrative review
For prohibition of administrative review, see section 6406.
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 819; Pub. L. 85-866, title I,
Secs. 42(b), 83(b), (c), Sept. 2, 1958, 72 Stat. 1640, 1664; Pub.
L. 87-834, Sec. 2(e)(4), Oct. 16, 1962, 76 Stat. 972; Pub. L.
88-571, Sec. 3(e), Sept. 2, 1964, 78 Stat. 858; Pub. L. 89-721,
Sec. 1(a), Nov. 2, 1966, 80 Stat. 1150; Pub. L. 90-225, Sec. 2(f),
Dec. 27, 1967, 81 Stat. 732; Pub. L. 91-172, title V, Sec.
512(e)(4), Dec. 30, 1969, 83 Stat. 641; Pub. L. 92-178, title VI,
Sec. 601(d)(4), Dec. 10, 1971, 85 Stat. 559; Pub. L. 93-17, Sec.
3(i)(2), Apr. 10, 1973, 87 Stat. 19; Pub. L. 93-625, Sec.
7(a)(2)(C), Jan. 3, 1975, 88 Stat. 2115; Pub. L. 94-455, title XIX,
Sec. 1904(b)(10)(A)(iv), 1906(b)(13)(A), title XXI, Sec.
2107(g)(2)(D), Oct. 4, 1976, 90 Stat. 1817, 1834, 1904; Pub. L.
95-30, title II, Sec. 202(d)(4)(D), May 23, 1977, 91 Stat. 150;
Pub. L. 95-628, Sec. 8(c)(3), Nov. 10, 1978, 92 Stat. 3632; Pub. L.
96-223, title I, Sec. 101(h), Apr. 2, 1980, 94 Stat. 254; Pub. L.
97-248, title III, Sec. 346(a)-(c)(1), Sept. 3, 1982, 96 Stat. 636,
637; Pub. L. 98-369, div. A, title II, Sec. 211(b)(27), title VII,
Sec. 714(n)(2)(A), July 18, 1984, 98 Stat. 757, 963; Pub. L.
99-514, title XV, Sec. 1511(c)(13), Oct. 22, 1986, 100 Stat. 2745;
Pub. L. 100-418, title I, Sec. 1941(b)(2)(L), Aug. 23, 1988, 102
Stat. 1323; Pub. L. 103-66, title XIII, Sec. 13271(a), Aug. 10,
1993, 107 Stat. 541; Pub. L. 105-34, title X, Sec. 1055(b), Aug. 5,
1997, 111 Stat. 944; Pub. L. 105-206, title VI, Sec. 6010(l), July
22, 1998, 112 Stat. 816; Pub. L. 106-554, Sec. 1(a)(7) [title III,
Sec. 319(20)], Dec. 21, 2000, 114 Stat. 2763, 2763A-647.)
-MISC1-
AMENDMENTS
2000 - Subsec. (g)(1). Pub. L. 106-554 struck out comma after
"(b)(3)".
1998 - Subsec. (g)(1). Pub. L. 105-206 substituted "and (e)" for
"(e), and (h)".
1997 - Subsec. (f)(2), (3). Pub. L. 105-34, Sec. 1055(b)(1),
added par. (2) and redesignated former par. (2) as (3). Former par.
(3) redesignated (4).
Subsec. (f)(4). Pub. L. 105-34, Sec. 1055(b)(1), (2)(A)(i),
redesignated par. (3) as (4) and substituted "paragraphs (1), (2),
and (3)" for "paragraphs (1) and (2)" in heading.
Subsec. (f)(4)(B)(i)(I). Pub. L. 105-34, Sec. 1055(b)(2)(A),
substituted "paragraph (1), (2), or (3)" for "paragraph (1) or
(2)".
Subsec. (f)(4)(B)(ii)(II). Pub. L. 105-34, Sec. 1055(b)(2)(B),
added subcl. (II). Former subcl. (II) redesignated (III).
Subsec. (f)(4)(B)(ii)(III). Pub. L. 105-34, Sec. 1055(b)(2)(B),
(C), redesignated subcl. (II) as (III) and inserted "(as defined in
paragraph (3)(B))" after "case of a credit carryback".
Subsec. (f)(4)(C)(i). Pub. L. 105-34, Sec. 1055(b)(2)(A),
substituted "paragraph (1), (2), or (3)" for "paragraph (1) or
(2)".
Subsecs. (g) to (i). Pub. L. 105-34, Sec. 1055(b)(2)(D),
redesignated subsecs. (h) and (i) as (g) and (h), respectively, and
struck out former subsec. (g) which read as follows:
"(g) Refund of Income Tax Caused by Carryback of Foreign Taxes. -
For purposes of subsection (a), if any overpayment of tax results
from a carryback of tax paid or accrued to foreign countries or
possessions of the United States, such overpayment shall be deemed
not to have been paid or accrued prior to the filing date (as
defined in subsection (f)(3)) for the taxable year under this
subtitle in which such taxes were in fact paid or accrued."
1993 - Subsec. (e). Pub. L. 103-66 amended heading and text of
subsec. (e) generally. Prior to amendment, text read as follows:
"If any overpayment of tax imposed by subtitle A is refunded within
45 days after the last date prescribed for filing the return of
such tax (determined without regard to any extension of time for
filing the return) or, in case the return is filed after such last
date, is refunded within 45 days after the date the return is
filed, no interest shall be allowed under subsection (a) on such
overpayment."
1988 - Subsecs. (h) to (j). Pub. L. 100-418 redesignated subsecs.
(i) and (j) as (h) and (i), respectively, and struck out former
subsec. (h) which related to special rule for windfall profit tax.
1986 - Subsec. (a). Pub. L. 99-514 substituted "the overpayment
rate established under section 6621" for "an annual rate
established under section 6621".
1984 - Subsec. (f)(3)(C). Pub. L. 98-369, Sec. 714(n)(2)(A),
added subpar. (C).
Subsec. (f)(4). Pub. L. 98-369, Sec. 211(b)(27), struck out par.
(4) which provided that for purposes of subsection (a), if any
overpayment of tax imposed by subtitle A arose by operation of
section 815(d)(5) (relating to reduction of policyholders surplus
account of life insurance companies for certain unused deductions),
such overpayment would be deemed not to have been made prior to the
close of the last taxable year to which the loss described in
section 815(d)(5)(A) was carried under section 812(b)(2).
1982 - Subsec. (b)(3). Pub. L. 97-248, Sec. 346(a), added par.
(3).
Subsec. (f)(1). Pub. L. 97-248, Sec. 346(c)(1)(A), substituted
"the filing date for the taxable year" for "the close of the
taxable year".
Subsec. (f)(2)(A). Pub. L. 97-248, Sec. 346(c)(1)(B), substituted
"the filing date for" for "the close of" wherever appearing.
Subsec. (f)(3), (4). Pub. L. 97-248, Sec. 346(c)(1)(C), added
par. (3) and redesignated former par. (3) as (4).
Subsec. (g). Pub. L. 97-248, Sec. 346(c)(1)(D), substituted "the
filing date (as defined in subsection (f)(3)) for the taxable year"
for "the close of the taxable year".
Subsecs. (i), (j). Pub. L. 97-248, Sec. 346(b), added subsec. (i)
and redesignated former subsec. (i) as (j).
1980 - Subsecs. (h), (i). Pub. L. 96-223 added subsec. (h) and
redesignated former subsec. (h) as (i).
1978 - Subsec. (f)(2). Pub. L. 95-628, Sec. 8(c)(3)(A),
substituted in heading "Certain credit carrybacks" for "Investment
credit carryback", designated existing provision as subpar. (A),
and in subpar. (A) as so designated inserted heading "In general"
and extended the application of provision to credit carrybacks,
previously limited to investment credit carrybacks, included other
credit carrybacks, and added subpar. (B).
Subsec. (f)(4), (5). Pub. L. 95-628, Sec. 8(c)(3)(B), struck out
pars. (4) and (5) which provided for work incentive program credit
carrybacks and new employee credit carrybacks, respectively.
1977 - Subsec. (f)(5). Pub. L. 95-30 added par. (5).
1976 - Subsec. (b). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck
out "or his delegate" after "Secretary".
Subsec. (f)(4). Pub. L. 94-455, Sec. 2107(g)(2)(D), inserted ",
an investment credit carryback," after "net operating loss
carryback".
Subsecs. (h), (i). Pub. L. 94-455, Sec. 1904(b)(10)(A)(iv),
redesignated subsec. (i) as (h). Former subsec. (h), which related
to a refund within 45 days after filing claim for refund of
interest equalization tax paid on securities sold to foreigners,
was struck out.
1975 - Subsec. (a). Pub. L. 93-625 substituted "an annual rate
established under section 6621" for "the rate of 6 percent per
annum".
1973 - Subsecs. (h), (i). Pub. L. 93-17 added subsec. (h) and
redesignated former subsec. (h) as (i).
1971 - Subsec. (f)(4). Pub. L. 92-178 added par. (4).
1969 - Subsec. (f)(1). Pub. L. 91-172, Sec. 512(e)(4)(A), (B),
substituted "loss or capital loss carryback" for "loss carryback"
in heading, and "net operating loss or net capital loss" for "net
operating loss" wherever appearing in text.
Subsec. (f)(2). Pub. L. 91-172, Sec. 512(e)(4)(C), substituted
"loss carryback or a capital loss carryback" for "loss carryback".
1967 - Subsec. (f)(2). Pub. L. 90-225 inserted ", or, with
respect to any portion of an investment credit carryback from a
taxable year attributable to a net operating loss carryback from a
subsequent taxable year, such overpayment shall be deemed not to
have been made prior to the close of such subsequent taxable year"
after "such investment credit carryback arises".
1966 - Subsec. (e). Pub. L. 89-721 inserted "or, in case the
return is filed after such last date, is refunded within 45 days
after the date the return is filed" after "(determined without
regard to any extension of time for filing the return)" and changed
heading to reflect amendment.
1964 - Subsec. (f). Pub. L. 88-571 added par. (3) and inserted
"or adjustment for certain unused deductions" in heading.
1962 - Subsec. (f). Pub. L. 87-834 designated existing provisions
as par. (1) and added par. (2).
1958 - Subsec. (b)(1). Pub. L. 85-866, Sec. 83(b), struck out ",
but if the amount against which the credit is taken is an
additional assessment, then to the date of the assessment of that
amount" after "taken".
Subsec. (c). Pub. L. 85-866, Sec. 83(c), repealed subsec. (c)
which defined "additional assessment".
Subsecs. (g), (h). Pub. L. 85-866, Sec. 42(b), added subsec. (g)
and redesignated former subsec. (g) as (h).
EFFECTIVE DATE OF 1998 AMENDMENT
Amendment by Pub. L. 105-206 effective, except as otherwise
provided, as if included in the provisions of the Taxpayer Relief
Act of 1997, Pub. L. 105-34, to which such amendment relates, see
section 6024 of Pub. L. 105-206, set out as a note under section 1
of this title.
EFFECTIVE DATE OF 1997 AMENDMENT
Amendment by Pub. L. 105-34 applicable to foreign tax credit
carrybacks arising in taxable years beginning after Aug. 5, 1997,
see section 1055(c) of Pub. L. 105-34, set out as a note under
section 6601 of this title.
EFFECTIVE DATE OF 1993 AMENDMENT
Section 13271(b) of Pub. L. 103-66 provided that:
"(1) Paragraph (1) of section 6611(e) of the Internal Revenue
Code of 1986 (as amended by subsection (a)) shall apply in the case
of returns the due date for which (determined without regard to
extensions) is on or after January 1, 1994.
"(2) Paragraph (2) of section 6611(e) of such Code (as so
amended) shall apply in the case of claims for credit or refund of
any overpayment filed on or after January 1, 1995, regardless of
the taxable period to which such refund relates.
"(3) Paragraph (3) of section 6611(e) of such Code (as so
amended) shall apply in the case of any refund paid on or after
January 1, 1995, regardless of the taxable period to which such
refund relates."
EFFECTIVE DATE OF 1988 AMENDMENT
Amendment by Pub. L. 100-418 applicable to crude oil removed from
the premises on or after Aug. 23, 1988, see section 1941(c) of Pub.
L. 100-418, set out as a note under section 164 of this title.
EFFECTIVE DATE OF 1986 AMENDMENT
Amendment by Pub. L. 99-514 applicable for purposes of
determining interest for periods after Dec. 31, 1986, see section
1511(d) of Pub. L. 99-514, set out as a note under section 47 of
this title.
EFFECTIVE DATE OF 1984 AMENDMENTS
Amendment by section 211(b)(27) of Pub. L. 98-369 applicable to
taxable years beginning after Dec. 31, 1983, see section 215 of
Pub. L. 98-369, set out as an Effective Date note under section 801
of this title.
Amendment by section 714(n)(2)(A) of Pub. L. 98-369 effective as
if included in the provision of the Tax Equity and Fiscal
Responsibility Act of 1982, Pub. L. 97-248, to which such amendment
relates, see section 715 of Pub. L. 98-369, set out as a note under
section 31 of this title.
Section 1875(d)(3) of Pub. L. 99-514 provided that:
"Notwithstanding section 715 of the Tax Reform Act of 1984 [Pub. L.
98-369], the amendments made by section 714(n)(2) of such Act
[amending this section and section 6411 of this title] shall apply
only to applications filed after July 18, 1984."
EFFECTIVE DATE OF 1982 AMENDMENT
Section 346(d) of Pub. L. 97-248 provided that:
"(1) In general. - The amendments made by subsections (a) and (b)
[amending this section] shall apply to returns filed after the 30th
day after the date of the enactment of this Act [Sept. 3, 1982].
"(2) Subsection (c). - The amendments made by subsection (c)
[amending this section and section 6601 of this title] shall apply
to interest accruing after the 30th day after the date of the
enactment of this Act [Sept. 3, 1982]."
EFFECTIVE DATE OF 1980 AMENDMENT
Amendment by Pub. L. 96-223 applicable to periods after Feb. 29,
1980, see section 101(i) of Pub. L. 96-223, set out as a note under
section 6161 of this title.
EFFECTIVE DATE OF 1978 AMENDMENT
Amendment by Pub. L. 95-628 applicable to carrybacks arising in
taxable years beginning after Nov. 10, 1978, see section 8(d) of
Pub. L. 95-628, set out as a note under section 6511 of this title.
EFFECTIVE DATE OF 1977 AMENDMENT
Amendment by Pub. L. 95-30 applicable to taxable years beginning
after Dec. 31, 1976, and to credit carrybacks from such years, see
section 202(e) of Pub. L. 95-30, set out as an Effective Date note
under section 51 of this title.
EFFECTIVE DATE OF 1975 AMENDMENT
Amendment by Pub. L. 93-625 effective July 1, 1975, and
applicable to amounts outstanding on such date or arising
thereafter, see section 7(e) of Pub. L. 93-625, set out as an
Effective Date note under section 6621 of this title.
EFFECTIVE DATE OF 1971 AMENDMENT
Amendment by Pub. L. 92-178 applicable to taxable years beginning
after Dec. 31, 1971, see section 601(f) of Pub. L. 92-178, set out
as a note under section 381 of this title.
EFFECTIVE DATE OF 1969 AMENDMENT
Amendment by Pub. L. 91-172 applicable with respect to net
capital losses sustained in taxable years beginning after Dec. 31,
1969, see section 512(g) of Pub. L. 91-172, set out as a note under
section 1212 of this title.
EFFECTIVE DATE OF 1967 AMENDMENT
Amendment by Pub. L. 90-225 applicable with respect to investment
credit carrybacks attributable to net operating loss carrybacks
from taxable years ending after July 31, 1967, see section 2(g) of
Pub. L. 90-225, set out as a note under section 46 of this title.
EFFECTIVE DATE OF 1966 AMENDMENT
Section 1(b) of Pub. L. 89-721 provided that: "The amendment made
by subsection (a) [amending this section] shall apply with respect
to refunds made more than 45 days after the date of the enactment
of this Act [Nov. 2, 1966]."
EFFECTIVE DATE OF 1964 AMENDMENT
Amendment by Pub. L. 88-571 effective, with respect to amounts
added to policyholders surplus accounts, for taxable years
beginning after Dec. 31, 1958, see section 3(f) of Pub. L. 88-571,
set out as a note under section 815 of this title.
EFFECTIVE DATE OF 1962 AMENDMENT
Amendment by Pub. L. 87-834 applicable with respect to taxable
years ending after Dec. 31, 1961, see section 2(h) of Pub. L.
87-834, set out as an Effective Date note under section 46 of this
title.
EFFECTIVE DATE OF 1958 AMENDMENT
Amendment by section 42(b) of Pub. L. 85-866 applicable only with
respect to taxable years beginning after Dec. 31, 1957, see section
42(c) of Pub. L. 85-866, set out as a note under section 904 of
this title.
Amendment by section 83(b), (c) of Pub. L. 85-866 applicable only
in respect of overpayments credited after Dec. 31, 1957, see
section 83(d) of Pub. L. 85-866, set out as a note under section
6601 of this title.
NO INTEREST ON INDIVIDUAL INCOME TAX REFUNDS FOR 1974 REFUNDED
WITHIN 60 DAYS AFTER RETURN IS FILED
Pub. L. 94-12, title I, Sec. 101(b), Mar. 29, 1975, 89 Stat. 28,
as amended by Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat.
2095, provided that: "In applying section 6611(e) of the Internal
Revenue Code of 1986 [formerly I.R.C. 1954] (relating to income tax
refund within 45 days after return is filed) in the case of any
overpayment of tax imposed by subtitle A of such Code by an
individual (other than an estate or trust and other than a
nonresident alien individual) for a taxable year beginning in 1974,
'60 days' shall be substituted for '45 days' each place it appears
in such section 6611(e)."
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 815, 6411, 6601, 7508 of
this title.
-End-
-CITE-
26 USC Sec. 6612 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 67 - INTEREST
Subchapter B - Interest on Overpayments
-HEAD-
Sec. 6612. Cross references
-STATUTE-
(a) Interest on judgments for overpayments
For interest on judgments for overpayments, see 28 U.S.C.
2411(a).
(b) Adjustments
For provisions prohibiting interest on certain adjustments in
tax, see section 6413(a).
(c) Other restrictions on interest
For other restrictions on interest, see section 2011(c)
(relating to refunds due to credit for State taxes), 2014(e)
(relating to refunds attributable to foreign tax credits), 6412
(relating to floor stock refunds), 6413(d) (relating to taxes
under the Federal Unemployment Tax Act), 6416 (relating to
certain taxes on sales and services), 6419 (relating to the
excise tax on wagering), and 6420 (relating to payments in the
case of gasoline used on the farm for farming purposes), and
6421 (relating to payments in the case of gasoline used for
certain nonhighway purposes or by local transit systems).
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 820; Apr. 2, 1956, ch. 160, Sec.
4(f), 70 Stat. 91; June 29, 1956, ch. 462, title II, Sec.
208(e)(7), 70 Stat. 397; Pub. L. 107-16, title V, Sec. 532(c)(12),
June 7, 2001, 115 Stat. 75.)
-STATAMEND-
AMENDMENT OF SUBSECTION (C)
Pub. L. 107-16, title V, Sec. 532(c)(12), (d), title IX, Sec.
901, June 7, 2001, 115 Stat. 75, 150, provided that, applicable to
estates of decedents dying, and generation-skipping transfers,
after Dec. 31, 2004, subsection (c) of this section is temporarily
amended by striking out "section 2011(c) (relating to refunds due
to credit for State taxes)," after "see". See Effective and
Termination Dates of 2001 Amendment note below.
-REFTEXT-
REFERENCES IN TEXT
The Federal Unemployment Tax Act, referred to in subsec. (c), is
act Aug. 16, 1954, ch. 736, Secs. 3301 to 3311, 68A Stat. 454, as
amended, which is classified generally to chapter 23 (Sec. 3301 et
seq.) of this title. For complete classification of this Act to the
Code, see section 3311 of this title and Tables.
-MISC1-
AMENDMENTS
1956 - Subsec. (c). Act June 29, 1956, inserted reference to
section 6421 of this title.
Act Apr. 2, 1956, inserted reference to section 6420 of this
title.
EFFECTIVE AND TERMINATION DATES OF 2001 AMENDMENT
Amendment by Pub. L. 107-16 applicable to estates of decedents
dying, and generation-skipping transfers, after Dec. 31, 2004, see
section 532(d) of Pub. L. 107-16, set out as a note under section
2011 of this title.
Amendment by Pub. L. 107-16 inapplicable to estates of decedents
dying, gifts made, or generation skipping transfers, after Dec. 31,
2010, and the Internal Revenue Code of 1986 to be applied and
administered to such estates, gifts, and transfers as if such
amendment had never been enacted, see section 901 of Pub. L.
107-16, set out as a note under section 1 of this title.
EFFECTIVE DATE OF 1956 AMENDMENT
Amendment by act June 29, 1956, effective June 29, 1956, see
section 211 of act June 29, 1956, set out as an Effective Date note
under section 4041 of this title.
-End-
-CITE-
26 USC Subchapter C - Determination of Interest Rate;
Compounding of Interest 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 67 - INTEREST
Subchapter C - Determination of Interest Rate; Compounding of
Interest
-HEAD-
SUBCHAPTER C - DETERMINATION OF INTEREST RATE; COMPOUNDING OF
INTEREST
-MISC1-
Sec.
6621. Determination of rate of interest.
6622. Interest compounded daily.
AMENDMENTS
1982 - Pub. L. 97-248, title III, Sec. 344(b)(3)(A), Sept. 3,
1982, 96 Stat. 636, inserted "; Compounding of Interest" after
"Rate" in heading for subchapter C.
Pub. L. 97-248, title III, Sec. 344(b)(2), Sept. 3, 1982, 96
Stat. 636, added item 6622.
-End-
-CITE-
26 USC Sec. 6621 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 67 - INTEREST
Subchapter C - Determination of Interest Rate; Compounding of
Interest
-HEAD-
Sec. 6621. Determination of rate of interest
-STATUTE-
(a) General rule
(1) Overpayment rate
The overpayment rate established under this section shall be
the sum of -
(A) the Federal short-term rate determined under subsection
(b), plus
(B) 3 percentage points (2 percentage points in the case of a
corporation).
To the extent that an overpayment of tax by a corporation for any
taxable period (as defined in subsection (c)(3), applied by
substituting "overpayment" for "underpayment") exceeds $10,000,
subparagraph (B) shall be applied by substituting "0.5 percentage
point" for "2 percentage points".
(2) Underpayment rate
The underpayment rate established under this section shall be
the sum of -
(A) the Federal short-term rate determined under subsection
(b), plus
(B) 3 percentage points.
(b) Federal short-term rate
For purposes of this section -
(1) General rule
The Secretary shall determine the Federal short-term rate for
the first month in each calendar quarter.
(2) Period during which rate applies
(A) In general
Except as provided in subparagraph (B), the Federal
short-term rate determined under paragraph (1) for any month
shall apply during the first calendar quarter beginning after
such month.
(B) Special rule for individual estimated tax
In determining the addition to tax under section 6654 for
failure to pay estimated tax for any taxable year, the Federal
short-term rate which applies during the 3rd month following
such taxable year shall also apply during the first 15 days of
the 4th month following such taxable year.
(3) Federal short-term rate
The Federal short-term rate for any month shall be the Federal
short-term rate determined during such month by the Secretary in
accordance with section 1274(d). Any such rate shall be rounded
to the nearest full percent (or, if a multiple of 1/2 of 1
percent, such rate shall be increased to the next highest full
percent).
(c) Increase in underpayment rate for large corporate underpayments
(1) In general
For purposes of determining the amount of interest payable
under section 6601 on any large corporate underpayment for
periods after the applicable date, paragraph (2) of subsection
(a) shall be applied by substituting "5 percentage points" for "3
percentage points".
(2) Applicable date
For purposes of this subsection -
(A) In general
The applicable date is the 30th day after the earlier of -
(i) the date on which the 1st letter of proposed deficiency
which allows the taxpayer an opportunity for administrative
review in the Internal Revenue Service Office of Appeals is
sent, or
(ii) the date on which the deficiency notice under section
6212 is sent.
The preceding sentence shall be applied without regard to any
such letter or notice which is withdrawn by the Secretary.
(B) Special rules
(i) Nondeficiency procedures
In the case of any underpayment of any tax imposed by this
title to which the deficiency procedures do not apply,
subparagraph (A) shall be applied by taking into account any
letter or notice provided by the Secretary which notifies the
taxpayer of the assessment or proposed assessment of the tax.
(ii) Exception where amounts paid in full
For purposes of subparagraph (A), a letter or notice shall
be disregarded if, during the 30-day period beginning on the
day on which it was sent, the taxpayer makes a payment equal
to the amount shown as due in such letter or notice, as the
case may be.
(iii) Exception for letters or notices involving small
amounts
For purposes of this paragraph, any letter or notice shall
be disregarded if the amount of the deficiency or proposed
deficiency (or the assessment or proposed assessment) set
forth in such letter or notice is not greater than $100,000
(determined by not taking into account any interest,
penalties, or additions to tax).
(3) Large corporate underpayment
For purposes of this subsection -
(A) In general
The term "large corporate underpayment" means any
underpayment of a tax by a C corporation for any taxable period
if the amount of such underpayment for such period exceeds
$100,000.
(B) Taxable period
For purposes of subparagraph (A), the term "taxable period"
means -
(i) in the case of any tax imposed by subtitle A, the
taxable year, or
(ii) in the case of any other tax, the period to which the
underpayment relates.
(d) Elimination of interest on overlapping periods of tax
overpayments and underpayments
To the extent that, for any period, interest is payable under
subchapter A and allowable under subchapter B on equivalent
underpayments and overpayments by the same taxpayer of tax imposed
by this title, the net rate of interest under this section on such
amounts shall be zero for such period.
-SOURCE-
(Added Pub. L. 93-625, Sec. 7(a)(1), Jan. 3, 1975, 88 Stat. 2114;
amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4,
1976, 90 Stat. 1834; Pub. L. 96-167, Sec. 4(b), Dec. 29, 1979, 93
Stat. 1275; Pub. L. 97-34, title VII, Sec. 711(a)-(c), Aug. 13,
1981, 95 Stat. 340; Pub. L. 97-248, title III, Sec. 345(a), Sept.
3, 1982, 96 Stat. 636; Pub. L. 98-369, div. A, title I, Sec.
144(a), July 18, 1984, 98 Stat. 682; Pub. L. 99-514, title XV,
Secs. 1511(a), (c)(1), 1535(a), Oct. 22, 1986, 100 Stat. 2744,
2750; Pub. L. 100-647, title I, Sec. 1015(d), Nov. 10, 1988, 102
Stat. 3569; Pub. L. 101-239, title VII, Sec. 7721(b), Dec. 19,
1989, 103 Stat. 2399; Pub. L. 101-508, title XI, Sec. 11341(a),
Nov. 5, 1990, 104 Stat. 1388-470; Pub. L. 103-465, title VII, Sec.
713(a), Dec. 8, 1994, 108 Stat. 5001; Pub. L. 104-188, title I,
Sec. 1702(c)(6), (7), Aug. 20, 1996, 110 Stat. 1870; Pub. L.
105-34, title XIV, Sec. 1463(a), title XVI, Sec. 1604(b)(1), Aug.
5, 1997, 111 Stat. 1057, 1097; Pub. L. 105-206, title III, Secs.
3301(a), 3302(a), July 22, 1998, 112 Stat. 741.)
-MISC1-
AMENDMENTS
1998 - Subsec. (a)(1)(B). Pub. L. 105-206, Sec. 3302(a), amended
subpar. (B) generally. Prior to amendment, subpar. (B) read as
follows: "2 percentage points."
Subsec. (d). Pub. L. 105-206, Sec. 3301(a), added subsec. (d).
1997 - Subsec. (a)(1). Pub. L. 105-34, Sec. 1604(b)(1),
substituted "subsection (c)(3), applied by substituting
'overpayment' for 'underpayment')" for "subsection (c)(3))" in
concluding provisions.
Subsec. (c)(2)(B)(iii). Pub. L. 105-34, Sec. 1463(a), added cl.
(iii).
1996 - Subsec. (c)(2)(A). Pub. L. 104-188, Sec. 1702(c)(6),
inserted closing provisions "The preceding sentence shall be
applied without regard to any such letter or notice which is
withdrawn by the Secretary."
Subsec. (c)(2)(B)(i). Pub. L. 104-188, Sec. 1702(c)(7),
substituted "this title" for "this subtitle".
1994 - Subsec. (a)(1). Pub. L. 103-465 inserted concluding
provisions.
1990 - Subsec. (c). Pub. L. 101-508 added subsec. (c).
1989 - Subsec. (c). Pub. L. 101-239 repealed subsec. (c) which
related to attribution of interest on substantial underpayments to
tax motivated transactions.
1988 - Subsec. (a)(1)(A), (2)(A). Pub. L. 100-647, Sec.
1015(d)(1), substituted "Federal short-term" for "short-term
Federal".
Subsec. (b). Pub. L. 100-647, Sec. 1015(d)(2), substituted
"Federal short-term" for "short-term Federal" in heading.
Subsec. (b)(1). Pub. L. 100-647, Sec. 1015(d)(1), substituted
"Federal short-term" for "short-term Federal".
1986 - Subsec. (a). Pub. L. 99-514, Sec. 1511(a), added subsec.
(a) and struck out former subsec. (a) which read as follows: "The
annual rate established under this section shall be such adjusted
rate as is established by the Secretary under subsection (b)."
Subsec. (b). Pub. L. 99-514, Sec. 1511(a), added subsec. (b)
relating to determination of Federal short-term rate and struck out
former subsec. (b) which related to interest rate adjustments and
establishment of adjusted rates.
Subsec. (c). Pub. L. 99-514, Sec. 1511(a), (c)(1), redesignated
subsec. (d) as (c), in par. (1), struck out "annual" before "rate
of interest" and substituted "the underpayment rate established
under this section" for "the adjusted rate established under
subsection (b)", and struck out former subsec. (c) definition of
prime rate, which read as follows: "For purposes of subsection (b),
the term 'adjusted prime rate charged by banks' means the average
predominant prime rate quoted by commercial banks to large
businesses, as determined by the Board of Governors of the Federal
Reserve System."
Subsec. (c)(3)(A)(v). Pub. L. 99-514, Sec. 1535(a), added cl.
(v).
Subsec. (d). Pub. L. 99-514, Sec. 1511(c)(1)(A), redesignated
subsec. (d) as (c).
1984 - Subsec. (d). Pub. L. 98-369 added subsec. (d).
1982 - Subsec. (b). Pub. L. 97-248 substituted provisions that if
the adjusted prime rate charged by banks (rounded to the nearest
full percent) during the 6-month period ending on September 30 of
any calendar year, or during the 6-month period ending on March 31
of any calendar year, differs from the interest rate in effect
under this section on either such date, respectively, then the
Secretary shall establish, within 15 days after the close of the
applicable 6-month period, an adjusted rate of interest equal to
such adjusted prime rate, and that any adjusted rate of interest
established under paragraph (1) shall become effective on January 1
of the succeeding year in the case of an adjustment attributable to
paragraph (1)(A), and on July 1 of the same year in the case of an
adjustment attributable to paragraph (1)(B), for provisions that
the Secretary was to establish an adjusted rate of interest for the
purpose of subsection (a) not later than October 15 of any year if
the adjusted prime rate charged by banks during September of that
year, rounded to the nearest full percent, was at least a full
percentage point more or less than the interest rate which was then
in effect, and that any such adjusted rate of interest would be
equal to the adjusted prime rate charged by banks, rounded to the
nearest full percent, and would become effective on January 1 of
the immediately succeeding year.
1981 - Subsec. (b). Pub. L. 97-34, Sec. 711(a), struck out
provision that an adjustment provided for under this subsection not
be made prior to the expiration of 23 months following the date of
any preceding adjustment under this subsection which changes the
rate of interest.
Pub. L. 97-34, Sec. 711(c), substituted "January 1" for "February
1".
Subsec. (c). Pub. L. 97-34, Sec. 711(b), struck out "90 percent
of" before "the average predominant prime rate".
1979 - Subsec. (a). Pub. L. 96-167 substituted provisions setting
the annual rate established under this section to be such adjusted
rate as is established by the Secretary under subsec. (b) of this
section for provision that the rate of interest under sections
6601(a), 6602, 6611(a), 6332(c)(1), and 7426(g) of this title, and
under section 2411(a) of title 28 was to be 9 percent per annum, or
such adjusted rate as was established by the Secretary under
subsection (b).
1976 - Subsecs. (a), (b). Pub. L. 94-455 struck out "or his
delegate" after "Secretary".
EFFECTIVE DATE OF 1998 AMENDMENT
Amendment by section 3301(a) of Pub. L. 105-206 applicable to
interest for periods beginning after July 22, 1998, and, subject to
applicable statutes of limitation, to interest for periods
beginning before July 22, 1998, if taxpayer reasonably identifies
and establishes periods of overpayments and underpayments for which
zero rate applies, and not later than Dec. 31, 1999, requests
application of subsec. (d) of this section to such periods, see
section 3301(c) of Pub. L. 105-206, set out as a note under section
6601 of this title.
Pub. L. 105-206, title III, Sec. 3302(b), July 22, 1998, 112
Stat. 742, provided that: "The amendment made by this section
[amending this section] shall apply to interest for the second and
succeeding calendar quarters beginning after the date of the
enactment of this Act [July 22, 1998]."
EFFECTIVE DATE OF 1997 AMENDMENT
Section 1463(b) of Pub. L. 105-34 provided that: "The amendment
made by subsection (a) [amending this section] shall apply for
purposes of determining interest for periods after December 31,
1997."
Amendment by section 1604(b)(1) of Pub. L. 105-34 effective as if
included in the sections of the Uruguay Round Agreements Act, Pub.
L. 103-465, to which it relates, see section 1604(b)(4) of Pub. L.
105-34, set out as a note under section 412 of this title.
EFFECTIVE DATE OF 1996 AMENDMENT
Amendment by Pub. L. 104-188 effective, except as otherwise
expressly provided, as if included in the provision of the Revenue
Reconciliation Act of 1990, Pub. L. 101-508, title XI, to which
such amendment relates, see section 1702(i) of Pub. L. 104-188, set
out as a note under section 38 of this title.
EFFECTIVE DATE OF 1994 AMENDMENT
Section 713(b) of Pub. L. 103-465 provided that: "The amendment
made by this section [amending this section] shall apply for
purposes of determining interest for periods after December 31,
1994."
EFFECTIVE DATE OF 1990 AMENDMENT
Section 11341(b) of Pub. L. 101-508 provided that: "The amendment
made by subsection (a) [amending this section] shall apply for
purposes of determining interest for periods after December 31,
1990."
EFFECTIVE DATE OF 1989 AMENDMENT
Amendment by Pub. L. 101-239 applicable to returns the due date
for which (determined without regard to extensions) is after Dec.
31, 1989, see section 7721(d) of Pub. L. 101-239, set out as a note
under section 461 of this title.
EFFECTIVE DATE OF 1988 AMENDMENT
Amendment by Pub. L. 100-647 effective, except as otherwise
provided, as if included in the provision of the Tax Reform Act of
1986, Pub. L. 99-514, to which such amendment relates, see section
1019(a) of Pub. L. 100-647, set out as a note under section 1 of
this title.
EFFECTIVE DATE OF 1986 AMENDMENT
Amendment by section 1511(a), (c)(1) of Pub. L. 99-514 applicable
for purposes of determining interest for periods after Dec. 31,
1986, see section 1511(d) of Pub. L. 99-514, set out as a note
under section 47 of this title.
Section 1535(b) of Pub. L. 99-514 provided that: "The amendment
made by subsection (a) [amending this section] shall apply to
interest accruing after December 31, 1984; except that such
amendment shall not apply in the case of any underpayment with
respect to which there was a final court decision before the date
of the enactment of this Act [Oct. 22, 1986]."
EFFECTIVE DATE OF 1984 AMENDMENT
Section 144(c) of Pub. L. 98-369 provided that: "The amendments
made by this section [amending this section and section 6214 of
this title] shall apply with respect to interest accruing after
December 31, 1984."
EFFECTIVE DATE OF 1982 AMENDMENT
Section 345(b) of Pub. L. 97-248, as amended by Pub. L. 98-369,
div. A, title VII, Sec. 714(m), July 18, 1984, 98 Stat. 963,
provided that: "The amendment made by this section [amending this
section] shall apply to adjustments taking effect on or after
January 1, 1983."
EFFECTIVE DATE OF 1981 AMENDMENT
Section 711(d) of Pub. L. 97-34 provided that:
"(1) For subsections (a) and (b). - The amendments made by
subsections (a) and (b) [amending this section] shall apply to
adjustments made after the date of the enactment of this Act [Aug.
13, 1981].
"(2) For subsection (c). - The amendment made by subsection (c)
[amending this section] shall apply to adjustments made for periods
after 1982."
EFFECTIVE DATE OF 1979 AMENDMENT
Section 4(c)(2) of Pub. L. 96-167 provided that: "The amendment
made by subsection (b) [amending this section] shall take effect on
the date of the enactment of this Act [Dec. 29, 1979]."
EFFECTIVE DATE
Section 7(e) of Pub. L. 93-625 provided that: "The amendments
made by this section [enacting this section and amending sections
514, 6163, 6166, 6167, 6332, 6504, 6601, 6602, 6611, 6654, 6655,
and 7426 of this title and section 2411 of Title 28, Judiciary and
Judicial Procedure] shall take effect on July 1, 1975, and apply to
amounts outstanding on such date or arising thereafter."
REGULATIONS
Section 1511(b) of Pub. L. 99-514 provided that: "The Secretary
of the Treasury or his delegate may issue regulations to coordinate
section 6621 of the Internal Revenue Code of 1954 [now 1986] (as
amended by this section) with section 6601(f) of such Code. Such
regulations shall not apply to any period after the date 3 years
after the date of the enactment of this Act [Oct. 22, 1986]."
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 42, 45D, 148, 412, 453A,
460, 664, 668, 852, 1258, 1291, 2057, 6325, 6332, 6343, 6427, 6601,
6602, 6611, 6654, 6655, 7426 of this title; title 5 section 5596;
title 10 section 2306a; title 14 section 830; title 15 sections
1116, 1117; title 19 sections 1557, 1592, 1593a, 1677g; title 28
sections 1961, 2411, 2644; title 29 sections 1083, 1084, 1132;
title 30 sections 934, 1721; title 41 sections 254b, 422; title 42
sections 7413, 7511d, 7524, 7661a.
-End-
-CITE-
26 USC Sec. 6622 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 67 - INTEREST
Subchapter C - Determination of Interest Rate; Compounding of
Interest
-HEAD-
Sec. 6622. Interest compounded daily
-STATUTE-
(a) General rule
In computing the amount of any interest required to be paid under
this title or sections 1961(c)(1) or 2411 of title 28, United
States Code, by the Secretary or by the taxpayer, or any other
amount determined by reference to such amount of interest, such
interest and such amount shall be compounded daily.
(b) Exception for penalty for failure to file estimated tax
Subsection (a) shall not apply for purposes of computing the
amount of any addition to tax under section 6654 or 6655.
-SOURCE-
(Added Pub. L. 97-248, title III, Sec. 344(a), Sept. 3, 1982, 96
Stat. 635.)
-MISC1-
EFFECTIVE DATE
Section 344(c) of Pub. L. 97-248 provided that: "The amendments
made by this section [enacting this section and amending section
6601 of this title] shall apply to interest accruing after December
31, 1982."
-End-
-CITE-
26 USC Subchapter D - Notice Requirements 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 67 - INTEREST
Subchapter D - Notice Requirements
-HEAD-
SUBCHAPTER D - NOTICE REQUIREMENTS
-MISC1-
Sec.
6631. Notice requirements.
AMENDMENTS
2000 - Pub. L. 106-554, Sec. 1(a)(7) [title III, Sec. 319(22)],
Dec. 21, 2000, 114 Stat. 2763, 2763A-647, substituted
"Requirements" for "requirements" in subchapter heading.
-End-
-CITE-
26 USC Sec. 6631 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 67 - INTEREST
Subchapter D - Notice Requirements
-HEAD-
Sec. 6631. Notice requirements
-STATUTE-
The Secretary shall include with each notice to an individual
taxpayer which includes an amount of interest required to be paid
by such taxpayer under this title information with respect to the
section of this title under which the interest is imposed and a
computation of the interest.
-SOURCE-
(Added Pub. L. 105-206, title III, Sec. 3308(a), July 22, 1998, 112
Stat. 745.)
-MISC1-
EFFECTIVE DATE
Pub. L. 105-206, title III, Sec. 3308(c), July 22, 1998, 112
Stat. 745, as amended by Pub. L. 106-554, Sec. 1(a)(7) [title III,
Sec. 302(c)], Dec. 21, 2000, 114 Stat. 2763, 2763A-632, provided
that: "The amendments made by this section [enacting this
subchapter] shall apply to notices issued after June 30, 2001. In
the case of any notice issued after June 30, 2001, and before July
1, 2003, to which section 6631 of the Internal Revenue Code of 1986
applies, the requirements of section 6631 of such Code shall be
treated as met if such notice contains a telephone number at which
the taxpayer can request a copy of the taxpayer's payment history
relating to interest amounts included in such notice."
-End-
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