
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document affected by Public Law 106-554 Section 1(a)(7)]
[Document affected by Public Law 106-554 Section 1(a)(7)]
[Document affected by Public Law 107-16 Section 101(b)(2)]
[CITE: 26USC6411]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                Subtitle F--Procedure and Administration
 
              CHAPTER 65--ABATEMENTS, CREDITS, AND REFUNDS
 
               Subchapter B--Rules of Special Application
 
Sec. 6411. Tentative carryback and refund adjustments


(a) Application for adjustment

    A taxpayer may file an application for a tentative carryback 
adjustment of the tax for the prior taxable year affected by a net 
operating loss carryback provided in section 172(b), by a business 
credit carryback provided in section 39, or by a capital loss carryback 
provided in subsection (a)(1) or (c) of section 1212, from any taxable 
year. The application shall be verified in the manner prescribed by 
section 6065 in the case of a return of such taxpayer and shall be 
filed, on or after the date of filing for the return for the taxable 
year of the net operating loss, net capital loss, or unused business 
credit from which the carryback results and within a period of 12 months 
after such taxable year or, with respect to any portion of a business 
credit carryback attributable to a net operating loss carryback or a net 
capital loss carryback from a subsequent taxable year, in the manner and 
form required by regulations prescribed by the Secretary. The 
applications shall set forth in such detail and with such supporting 
data and explanation as such regulations shall require--
        (1) The amount of the net operating loss, net capital loss, or 
    unused business credit;
        (2) The amount of the tax previously determined for the prior 
    taxable year affected by such carryback, the tax previously 
    determined being ascertained in accordance with the method 
    prescribed in section 1314(a);
        (3) The amount of decrease in such tax, attributable to such 
    carryback, such decrease being determined by applying the carryback 
    in the manner provided by law to the items on the basis of which 
    such tax was determined;
        (4) The unpaid amount of such tax, not including any amount 
    required to be shown under paragraph (5);
        (5) The amount, with respect to the tax for the taxable year 
    immediately preceding the taxable year from which the carryback is 
    made, as to which an extension of time for payment under section 
    6164 is in effect; and
        (6) Such other information for purposes of carrying out the 
    provisions of this section as may be required by such regulations.

Except for purposes of applying section 6611(f)(3)(B),\1\ an application 
under this subsection shall not constitute a claim for credit or refund.
---------------------------------------------------------------------------
    \1\ See References in Text note below.
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(b) Allowance of adjustments

    Within a period of 90 days from the date on which an application for 
a tentative carryback adjustment is filed under subsection (a), or from 
the last day of the month in which falls the last date prescribed by law 
(including any extension of time granted the taxpayer) for filing the 
return for the taxable year of the net operating loss, net capital loss, 
or unused business credit from which such carryback results, whichever 
is the later, the Secretary shall make, to the extent he deems 
practicable in such period, a limited examination of the application, to 
discover omissions and errors of computation therein, and shall 
determine the amount of the decrease in the tax attributable to such 
carryback upon the basis of the application and the examination, except 
that the Secretary may disallow, without further action, any application 
which he finds contains errors of computation which he deems cannot be 
corrected by him within such 90-day period or material omissions. Such 
decrease shall be applied against any unpaid amount of the tax decreased 
(including any amount of such tax as to which an extension of time under 
section 6164 is in effect) and any remainder shall be credited against 
any unsatisfied amount of any tax for the taxable year immediately 
preceding the taxable year of the net operating loss, net capital loss, 
or unused business credit the time for payment of which tax is extended 
under section 6164. Any remainder shall, within such 90-day period, be 
either credited against any tax or installment thereof then due from the 
taxpayer, or refunded to the taxpayer.

(c) Consolidated returns

    If the corporation seeking a tentative carryback adjustment under 
this section, made or was required to make a consolidated return, either 
for the taxable year within which the net operating loss, net capital 
loss, or unused business credit arises, or for the preceding taxable 
year affected by such loss or credit, the provisions of this section 
shall apply only to such extent and subject to such conditions, 
limitations, and exceptions as the Secretary may by regulations 
prescribe.

(d) Tentative refund of tax under claim of right adjustment

                           (1) Application

        A taxpayer may file an application for a tentative refund of any 
    amount treated as an overpayment of tax for the taxable year under 
    section 1341(b)(1). Such application shall be in such manner and 
    form as the Secretary may prescribe by regulation and shall--
            (A) be verified in the same manner as an application under 
        subsection (a),
            (B) be filed during the period beginning on the date of 
        filing the return for such taxable year and ending on the date 
        12 months from the last day of such taxable year, and
            (C) set forth in such detail and with such supporting data 
        such regulations prescribe--
                (i) the amount of the tax for such taxable year computed 
            without regard to the deduction described in section 
            1341(a)(2),
                (ii) the amount of the tax for all prior taxable years 
            for which the decrease in tax provided in section 
            1341(a)(5)(B) was computed,
                (iii) the amount determined under section 1341(a)(5)(B),
                (iv) the amount of the overpayment determined under 
            section 1341(b)(1); and
                (v) such other information as the Secretary may require.

                    (2) Allowance of adjustments

        Within a period of 90 days from the date on which an application 
    is filed under paragraph (1) or from the date of the overpayment 
    (determined under section 1341(b)(1)), whichever is later, the 
    Secretary shall--
            (A) review the application,
            (B) determine the amount of the overpayment, and
            (C) apply, credit, or refund such overpayment,

    in a manner similar to the manner provided in subsection (b).

                      (3) Consolidated returns

        The provisions of subsection (c) shall apply to an adjustment 
    under this subsection to the same extent and manner as the Secretary 
    may by regulations provide.

(Aug. 16, 1954, ch. 736, 68A Stat. 794; Pub. L. 89-721, Sec. 2(a)-(e), 
Nov. 2, 1966, 80 Stat. 1150; Pub. L. 90-225, Sec. 2(b), Dec. 27, 1967, 
81 Stat. 731; Pub. L. 91-172, title V, Sec. 512(d), Dec. 30, 1969, 83 
Stat. 639; Pub. L. 92-178, title VI, Sec. 601(e)(1), Dec. 10, 1971, 85 
Stat. 560; Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), title XXI, 
Sec. 2107(g)(1), Oct. 4, 1976, 90 Stat. 1834, 1904; Pub. L. 95-30, title 
II, Sec. 202(d)(5)(A), May 23, 1977, 91 Stat. 150; Pub. L. 95-600, title 
V, Sec. 504(a), (b)(1)(A), Nov. 6, 1978, 92 Stat. 2880, 2881; Pub. L. 
96-222, title I, Secs. 103(a)(6)(G)(xiii), 105(a)(2), Apr. 1, 1980, 94 
Stat. 211, 218; Pub. L. 97-34, title II, Sec. 221(b)(2)(B), title III, 
Sec. 331(d)(2)(B), Aug. 13, 1981, 95 Stat. 247, 295; Pub. L. 98-369, 
div. A, title IV, Sec. 474(r)(37), title VII, Sec. 714(n)(2)(B), July 
18, 1984, 98 Stat. 846, 964; Pub. L. 99-514, title II, 
Sec. 231(d)(3)(H), title XVIII, Sec. 1847(b)(10), Oct. 22, 1986, 100 
Stat. 2180, 2857; Pub. L. 100-647, title I, Sec. 1002(h)(2), Nov. 10, 
1988, 102 Stat. 3370; Pub. L. 106-554, Sec. 1(a)(7) [title III, 
Sec. 318(d)(1)], Dec. 21, 2000, 114 Stat. 2763, 2763A-645.)

                       References in Text

    Section 6611(f)(3)(B), referred to in subsec. (a), was redesignated 
section 6611(f)(4)(B) of this title by Pub. L. 105-34, title X, 
Sec. 1055(b)(1), Aug. 5, 1997, 111 Stat. 944.


                               Amendments

    2000--Subsec. (a). Pub. L. 106-554 substituted ``subsection (a)(1) 
or (c) of section 1212'' for ``section 1212(a)(1)'' in introductory 
provisions.
    1988--Subsec. (c). Pub. L. 100-647 struck out ``unused research 
credit,'' after ``net capital loss,''.
    1986--Subsec. (a). Pub. L. 99-514, Sec. 231(d)(3)(H), in 
introductory provisions, struck out ``by a research credit carryback 
provided in section 30(g)(2)'' after ``carryback provided in section 
39,'', ``unused research credit,'' after ``net capital loss,'', ``a 
research credit carryback or'' after ``with respect to any portion of'', 
and ``(or, with respect to any portion of a business credit carryback 
attributable to a research credit carryback from a subsequent taxable 
year within a period of 12 months from the end of such subsequent 
taxable year)'' after ``such subsequent taxable year'', and in par. (1), 
struck out ``unused research credit,'' after ``net capital loss,''.
    Pub. L. 99-514, Sec. 1847(b)(10), substituted ``unused research 
credit, or unused business credit'' for ``or unused business credit''.
    Subsec. (b). Pub. L. 99-514, Sec. 231(d)(3)(H)(iv), struck out 
``unused research credit,'' after ``net capital loss,'', in two places.
    1984--Subsec. (a). Pub. L. 98-369, Sec. 474(r)(37)(A), amended 
provisions preceding par. (1) generally. Prior to amendment, such 
provisions read as follows: ``A taxpayer may file an application for a 
tentative carryback adjustment of the tax for the prior taxable year 
affected by a net operating loss carryback provided in section 172(b), 
by an investment credit carryback provided in section 46(b), by a work 
incentive program carryback provided in section 50A(b), by a new 
employee credit carryback provided in section 53(b), by a research 
credit carryback provided in section 44F(g)(2) by an employee stock 
ownership credit carryback provided by section 44G(b)(2), or by a 
capital loss carryback provided in section 1212(a)(1), from any taxable 
year. The application shall be verified in the manner prescribed by 
section 6065 in the case of a return of such taxpayer, and shall be 
filed, on or after the date of filing of the return for the taxable year 
of the net operating loss, net capital loss, unused investment credit, 
unused work incentive program credit, unused new employee credit, unused 
research credit, or unused employee stock ownership credit, from which 
the carryback results and within a period of 12 months from the end of 
such taxable year (or, with respect to any portion of an investment 
credit carryback, a work incentive program carryback, a new employee 
credit carryback, a research credit carryback, or employee stock 
ownership credit carryback from a taxable year attributable to a net 
operating loss carryback or a capital loss carryback (or, in the case of 
a work incentive program carryback, to an investment credit carryback, 
or, in the case of a new employee credit carryback, to an investment 
credit carryback or a work incentive program carryback, or, in the case 
of a research credit carryback, to an investment credit carryback, a 
work incentive program carryback, or a new employee credit carryback, 
or, in the case of an employee stock ownership credit carryback, to an 
investment credit carryback, a new employee credit carryback or a 
research and experimental credit carryback) from a subsequent taxable 
year, within a period of 12 months from the end of such subsequent 
taxable year), in the manner and form required by regulations prescribed 
by the Secretary. The application shall set forth in such detail and 
with such supporting data and explanation as such regulations shall 
require--''.
    Pub. L. 98-369, Sec. 714(n)(2)(B), in provisions following par. (6), 
substituted ``Except for purposes of applying section 6611(f)(3)(B), an 
application'' for ``An application''.
    Subsec. (a)(1). Pub. L. 98-369, Sec. 474(r)(37)(A), substituted 
``unused research credit, or unused business credit'' for ``unused 
investment credit, unused work incentive program credit, unused new 
employee credit, unused research credit, or unused employee stock 
ownership credit''.
    Subsecs. (b), (c). Pub. L. 98-369, Sec. 474(r)(37)(B), substituted 
``unused research credit, or unused business credit'' for ``unused 
investment credit, unused work incentive program credit, unused new 
employee credit, unused research credit, or unused employee stock 
ownership credit'' wherever appearing.
    1981--Subsec. (a). Pub. L. 97-34, Sec. 331(d)(2)(B), inserted in 
introductory provisions ``by an employee stock ownership credit 
carryback provided by section 44G(b)(2)'' after ``section 44F(g)(2),'' 
and substituted ``unused research credit, or unused employee stock 
ownership credit'' for ``or unused research credit'', ``a research 
credit carryback, or employee stock ownership credit carryback'' for 
``or a research credit carryback'', and ``new employee credit carryback, 
or, in the case of an employee stock ownership credit carryback, to an 
investment credit carryback, a new employee credit carryback or a 
research and experimental credit carryback)'' for ``new employee credit 
carryback)'' and in par. (1) substituted ``unused research credit, or 
unused employee stock ownership credit'' for ``or unused research 
credit''.
    Pub. L. 97-34, Sec. 221(b)(2)(B), inserted in introductory provision 
``by a research credit carryback provided in section 44F(g)(2),'' after 
``section 53(b),'' and substituted ``unused new employee credit, or 
unused research credit'' for ``or unused new employee credit'', ``a new 
employee credit carryback, or a research credit carryback'' for ``or a 
new employee credit carryback'', and ``work incentive program carryback, 
or, in the case of a research credit carryback, to an investment credit 
carryback, a work incentive program carryback, or new employee credit 
carryback)'' for ``work incentive program carryback)'' and in par. (1) 
substituted ``unused new employee credit, or unused research credit'' 
for ``or unused new employee credit''.
    Subsec. (b). Pub. L. 97-34, Sec. 331(d)(2)(B)(i), substituted 
``unused research credit, or unused employee stock ownership credit'' 
for ``or unused research credit''.
    Pub. L. 97-34, Sec. 221(b)(2)(B)(i), substituted ``unused new 
employee credit, or unused research credit'' for ``or unused new 
employee credit''.
    Subsec. (c). Pub. L. 97-34, Sec. 331(d)(2)(B)(i), substituted 
``unused research credit, or unused employee stock ownership credit'' 
for ``or unused research credit''.
    Pub. L. 97-34, Sec. 221(b)(2)(B)(i), substituted ``unused new 
employee credit, or unused research credit'' for ``or unused new 
employee credit''.
    1980--Subsec. (a). Pub. L. 96-222, Sec. 103(a)(6)(G)(xiii), 
substituted ``section 53(b)'' for ``section 53(c)''.
    Subsec. (d)(2). Pub. L. 96-222, Sec. 105(a)(2), substituted ``the 
date of the overpayment (determined under section 1341(b)(1))'' for 
``the last day of the month in which falls the last date prescribed by 
law (including any extension of time granted the taxpayer) for filing 
the return for taxable year in which the overpayment occurs''.
    1978--Pub. L. 95-600, Sec. 504(b)(1)(A), inserted ``and refund'' 
after ``carryback'' in section catchline.
    Subsec. (d). Pub. L. 95-600, Sec. 504(a), added subsec. (d).
    1977--Subsec. (a). Pub. L. 95-30, Sec. 202(d)(5)(A)(i) to (iv), 
inserted references to unused new employee credits and to new employee 
credit carrybacks in provisions preceding par. (1) and in par. (1).
    Subsecs. (b), (c). Pub. L. 95-30, Sec. 202(d)(5)(A)(i), inserted 
references to unused new employee credits.
    1976--Subsec. (a). Pub. L. 94-455, Secs. 1906(b)(13)(A), 2107(g)(1), 
struck out ``or his delegate'' after ``Secretary'' and inserted ``(or, 
in the case of a work incentive program carryback, to an investment 
credit carryback)'' after ``capital loss carryback'' in second sentence.
    Subsecs. (b), (c). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck out 
``or his delegate'' after ``Secretary'' wherever appearing.
    1971--Pub. L. 92-178, Sec. 601(e)(1)(A), substituted ``unused 
investment credit, or unused work incentive program credit'' for ``or 
unused investment credit'' wherever appearing in subsecs. (a), (a)(1), 
(b), and (c).
    Subsec. (a). Pub. L. 92-178, Sec. 601(e)(1)(B) and (C), inserted 
``by a work incentive program carryback provided in section 50A(b),'' 
after ``section 46(b),'' in first sentence, and ``or a work incentive 
program carryback'' after ``investment credit carryback'' in second 
sentence, respectively.
    1969--Subsec. (a). Pub. L. 91-172, Sec. 512(d)(1), (2), provided 
quick refund procedure, presently available in case of net operating 
loss carrybacks, to be made available in the case of the 3-year capital 
loss carryback, and substituted ``net operating loss, net capital loss, 
or unused investment credit'' for ``net operating loss or unused 
investment credit'' in par. (1).
    Subsec. (b). Pub. L. 91-172, Sec. 512(d)(2), substituted ``net 
operating loss, net capital loss, or unused investment credit'' for 
``net operating loss or unused investment credit'' wherever such term 
appears.
    Subsec. (c). Pub. L. 91-172, Sec. 512(d)(2), substituted ``net 
operating loss, net capital loss, or unused investment credit'' for 
``net operating loss or unused investment credit''.
    1967--Subsec. (a). 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, within a period of 12 months from the end of such subsequent 
taxable year)'' after ``within a period of 12 months from the end of 
such taxable year''.
    1966--Subsec. (a). Pub. L. 89-721, Sec. 2(a)-(c), provided in 
introductory text for a tentative carryback adjustment based on an 
investment credit carryback as provided for in section 46(b) of this 
title and and inserted ``or unused investment credit'' after ``the 
taxable year of the net operating loss'', inserted in par. (1) ``or 
unused investment'' after ``net operating loss'', and struck out in par. 
(5) ``of such loss'' and inserted in lieu thereof ``from which the 
carryback is made''.
    Subsec. (b). Pub. L. 89-721, Sec. 2(d), inserted ``or unused 
investment credit'' after ``net operating loss'' in two places.
    Subsec. (c). Pub. L. 89-721, Sec. 2(d), (e), inserted ``or unused 
investment credit'' after ``net operating loss'' and ``or credit'' after 
``such loss''.


                    Effective Date of 2000 Amendment

    Pub. L. 106-554, Sec. 1(a)(7) [title III, Sec. 318(d)(2)], Dec. 21, 
2000, 114 Stat. 2763, 2763A-645, provided that: ``The amendment made by 
paragraph (1) [amending this section] shall take effect as if included 
in the amendments made by section 504 of the Economic Recovery Tax Act 
of 1981 [Pub. L. 97-34, amending section 1212 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 231(d)(3)(H) of Pub. L. 99-514 applicable to 
taxable years beginning after Dec. 31, 1985, see section 231(g) of Pub. 
L. 99-514, set out as a note under section 41 of this title.
    Amendment by section 1847(b)(10) of Pub. L. 99-514 effective, except 
as otherwise provided, as if included in the provisions of the Tax 
Reform Act of 1984, Pub. L. 98-369, div. A, to which such amendment 
relates, see section 1881 of Pub. L. 99-514, set out as a note under 
section 48 of this title.


                    Effective Date of 1984 Amendment

    Amendment by section 474(r)(37) of Pub. L. 98-369 applicable to 
taxable years beginning after Dec. 31, 1983, and to carrybacks from such 
years, see section 475(a) of Pub. L. 98-369, set out as a note under 
section 21 of this title.
    Amendment by section 714(n)(2)(B) 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.
    Notwithstanding section 715 of Pub. L. 98-369, amendment by section 
714(n)(2)(B) of Pub. L. 98-369 applicable only to applications filed 
after July 18, 1984, see section 1875(d)(3) of Pub. L. 99-514, set out 
as a note under section 6611 of this title.


                    Effective Date of 1981 Amendment

    Amendment by section 221(b)(2)(B) of Pub. L. 97-34 applicable to 
amounts paid or incurred after June 30, 1981, see section 221(d) of Pub. 
L. 97-34, as amended, set out as an Effective Date note under section 41 
of this title.
    Amendment by section 331(d)(2)(B) of Pub. L. 97-34 applicable to 
taxable years beginning after Dec. 31, 1981, see section 339 of Pub. L. 
97-34, set out as a note under section 401 of this title.


                    Effective Date of 1980 Amendment

    Amendment by Pub. L. 96-222 effective, except as otherwise provided, 
as if it had been included in the provisions of the Revenue Act of 1978, 
Pub. L. 95-600, to which such amendment relates, see section 201 of Pub. 
L. 96-222, set out as a note under section 32 of this title.


                    Effective Date of 1978 Amendment

    Section 504(c) of Pub. L. 95-600 provided that: ``The amendments 
made by this section [amending this section and sections 6213 and 6501 
of this title] shall apply to tentative refund claims filed on and after 
the date of the enactment of this Act [Nov. 6, 1978].''


                    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 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 2(g) of Pub. L. 89-721, as amended by Pub. L. 99-514, 
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that: ``The amendments 
made by this section [amending this section and section 6501 of this 
title] shall apply with respect to taxable years ending after December 
31, 1961, but only in the case of applications filed after the date of 
the enactment of this Act [Nov. 2, 1966]. The period of 12 months 
referred to in the second sentence of section 6411(a) of the Internal 
Revenue Code of 1986 [formerly I.R.C. 1954] (as amended by this section) 
for filing an application for a tentative carryback adjustment of tax 
attributable to the carryback of any unused investment credit shall not 
expire before the close of December 31, 1966.''


           Plan Amendments Not Required Until January 1, 1989

    For provisions directing that if any amendments made by subtitle A 
or subtitle C of title XI [Secs. 1101-1147 and 1171-1177] or title XVIII 
[Secs. 1800-1899A] of Pub. L. 99-514 require an amendment to any plan, 
such plan amendment shall not be required to be made before the first 
plan year beginning on or after Jan. 1, 1989, see section 1140 of Pub. 
L. 99-514, as amended, set out as a note under section 401 of this 
title.

                  Section Referred to in Other Sections

    This section is referred to in sections 6040, 6164, 6213, 6405, 
6501, 6511, 6515, 6611 of this title.
