§6611 — Interest on overpayments
38 cases·15 followed·1 distinguished·1 criticized·2 overruled·19 cited—39% support
Statute Text — 26 U.S.C. §6611
Interest shall be allowed and paid upon any overpayment in respect of any internal revenue tax at the overpayment rate established under section 6621.
Such interest shall be allowed and paid as follows:
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.
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.
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.
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).
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.
If—
the taxpayer files a claim for a credit or refund for any overpayment of tax imposed by this title, and
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.
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.
In the case of any overpayment resulting from tax deducted and withheld under chapter 3 or 4, paragraphs (1), (2), and (3) shall be applied by substituting “180 days” for “45 days” each place it appears.
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.
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.
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.
For purposes of this paragraph, the term “credit carryback” has the meaning given such term by section 6511(d)(4)(C).
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).
For purposes of subsection (e)—
any overpayment described in paragraph (1), (2), or (3) shall be treated as an overpayment for the loss year,
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.
For purposes of this subparagraph, the term “loss year” means—
in the case of a carryback of a net operating loss or net capital loss, the taxable year in which such loss arises,
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
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).
For purposes of subparagraph (B)(i)(II), if a taxpayer—
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
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.
For purposes of subsections (b)(3) and (e), a return shall not be treated as filed until it is filed in processible form.
For purposes of paragraph (1), a return is in a processible form if—
such return is filed on a permitted form, and
such return contains—
the taxpayer’s name, address, and identifying number and the required signature, and
sufficient required information (whether on the return or on required attachments) to permit the mathematical verification of tax liability shown on the return.
For prohibition of administrative review, see section 6406.
Treasury Regulations
- Treas. Reg. §Treas. Reg. §301.6611-1 Interest on overpayments
- Treas. Reg. §Treas. Reg. §301.6611-1(a) General rule.
- Treas. Reg. §Treas. Reg. §301.6611-1(b) Delinquent installment.
- Treas. Reg. §Treas. Reg. §301.6611-1(c) Examples.
- Treas. Reg. §Treas. Reg. §301.6611-1(d) Advance payment of tax, payment of estimated tax, and credit for income tax withholding.
- Treas. Reg. §Treas. Reg. §301.6611-1(e) Refund of income tax caused by carryback.
- Treas. Reg. §Treas. Reg. §301.6611-1(f) Refund of income tax caused by carryback of foreign taxes.
- Treas. Reg. §Treas. Reg. §301.6611-1(g) Period for which interest allowable in case of refunds.
- Treas. Reg. §Treas. Reg. §301.6611-1(h) Period for which interest allowable in case of credits—(1) General rule.
- Treas. Reg. §Treas. Reg. §301.6611-1(i) §301.6611-1(i)
- Treas. Reg. §Treas. Reg. §301.6611-1(j) Refund of overpayment.
- Treas. Reg. §Treas. Reg. §301.6611-1(k) Effective date.
- Treas. Reg. §Treas. Reg. §301.6611-1(v) Interest.
38 Citing Cases
Although section 6611 provides an explicit statutory requirement for the payment of interest, it is limited to overpayments of tax.
We hold that they are not.
se ofmoney" During the period for which interest accrued against the Larkins' unpaid 2006 liability pursuantto section 6601(a) (i.e., the period from April 2007 until July 9, 2008'3), the Governmentheld not-yet-refunded overpayments for 2003 on which interest in the Larkins' favor was not accruing, pursuant to section 6611(e)(2).
Section 6611 provides: SEC.
This led the court to conclude that “section 6611 requires us to reject GE’s theory of the case”.
Section 6611 provides that taxpayers are to be allowed and are to be paid interest on any overpayments in respect of any internal revenue tax at the rate established under section 6621.
We hold that the estate is entitled to a refund of the $238,.847.24 overpayment, plus interest on the overpayment,24 less any amounts that respondent has previously refunded with respect 24Interest on ''overpayments" is provided for by sec.
Overpayment interest under section 6611 is not treated as tax, and an excess refund of overpayment interest cannot be recovered using deficiency procedures. See Pac. Gas & Elec. Co. v. United States, 417 F.3d 1375, 1381 (Fed. Cir. 2005). But even interest on underpayments is not treated as tax for all purposes. Section 6601(e)(1) provides in part, “[a]ny reference in this title (except subchapter B of chapter 63, relating to deficiency procedures) to any tax imposed by this title shall be deemed
Conversely, section 6611 requires the Government to pay interest on any overpaid income taxes.
Section 6611 provides that taxpayers are to be allowed and are to be paid interest on any overpayments in respect of any internal revenue tax at the rate established under section 6621. Section 6622 provides that in computing the amount .of interest required to be paid under section 6611, the interest will be compounded daily. . Section 6621 provid
Section 6611 provides that taxpayers are to be allowed and are to be paid interest on any overpayments in respect of any internal revenue tax at the rate established under section 6621. Section 6622 provides that in computing the amount of interest required to be paid under section 6611, the interest will be compounded daily. Section 6621 provides
Section 6611 provides that taxpayers are to be allowed and are to be paid interest on any overpayments in respect of any internal revenue tax at the rate established under section 6621. Section 6622 provides that in computing the amount of interest required to be paid under section 6611, the interest will be compounded daily. Section 6621 provides
at 1310-1311; emphasis supplied.] After noting that section 6611 “authorizes the allowance of interest on any ‘overpayment’” and that section 6611 “dictates that interest shall be paid ‘at the overpayment rate established under section 6621’”, id.
Section 6603(d) is captioned “Payment of Interest.” It generally provides that, “[f]or purposes of section 6611 (relating to interest on overpayments), except as provided in paragraph (4), a deposit which is returned to a taxpayer shall be treated as a payment of tax for any period to the extent (and only to the extent) attributable to a disputable tax for such period.” Sec.
741, provides : To the extent that, for any period, interest is payable under subchapter A [sections 6601 and 6602] and allowable under subchapter B [section 6611] 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 .
d above, petitioner seeks overpayments attributable to the calculation of interest utilizing netting principles.” In general, according to the amended petition, for each of the years in issue, the interest respondent charged on “underpayments” under section 6601 was too high, and the interest respondent allowed with respect to “overpayments” under section 6611 was too low.
ich the Tax Court had jurisdiction and that the Court of Appeals could not expand its own jurisdiction because the Court of Appeals believed it was necessary “in order to achieve a fair and just result.” Interest on “overpayments” is provided for by sec. 6611. --- CONCURRENCE --- Laro, J., concurring: I disagree with the implication in this Court’s opinion that this Court is powerless to relieve a litigant of a final decision upon a proper showing made in connection with a motion subject to the
d above, petitioner seeks overpayments attributable to the calculation of interest utilizing netting principles.” In general, according to the amended petition, for each of the years in issue, the interest respondent charged on “underpayments” under section 6601 was too high, and the interest respondent allowed with respect to “overpayments” under section 6611 was too low.
Bad Debt Deduction for 1981 From January 1, 1979 through June 23, 1981, petitioner John J. Kaiser (petitioner) was the 100-percent shareholder of MACS Corp. (MACS), an S corporation in the business of buying and selling cleaning supplies in the Bridgeport, Connecticut, area. During 1979 and subsequent years through 1981, petitioner a
Bad Debt Deduction for 1981 From January 1, 1979 through June 23, 1981, petitioner John J. Kaiser (petitioner) was the 100-percent shareholder of MACS Corp. (MACS), an S corporation in the business of buying and selling cleaning supplies in the Bridgeport, Connecticut, area. During 1979 and subsequent years through 1981, petitioner a