
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC6425]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                Subtitle F--Procedure and Administration
 
              CHAPTER 65--ABATEMENTS, CREDITS, AND REFUNDS
 
               Subchapter B--Rules of Special Application
 
Sec. 6425. Adjustment of overpayment of estimated income tax by 
        corporation
        

(a) Application of adjustment

                         (1) Time for filing

        A corporation may, after the close of the taxable year and on or 
    before the 15th day of the third month thereafter, and before the 
    day on which it files a return for such taxable year, file an 
    application for an adjustment of an overpayment by it of estimated 
    income tax for such taxable year. An application under this 
    subsection shall not constitute a claim for credit or refund.

                    (2) Form of application, etc.

        An application under this subsection shall be verified in the 
    manner prescribed by section 6065 in the case of a return of the 
    taxpayer, and shall be filed in the manner and form required by 
    regulations prescribed by the Secretary. The application shall set 
    forth--
            (A) the estimated income tax paid by the corporation during 
        the taxable year,
            (B) the amount which, at the time of filing the application, 
        the corporation estimates as its income tax liability for the 
        taxable year,
            (C) the amount of the adjustment, and
            (D) such other information for purposes of carrying out the 
        provisions of this section as may be required by such 
        regulations.

(b) Allowance of adjustment

               (1) Limited examination of application

        Within a period of 45 days from the date on which an application 
    for an adjustment is filed under subsection (a), the Secretary shall 
    make, to the extent he deems practicable in such period, a limited 
    examination of the application to discover omissions and errors 
    therein, and shall determine the amount of the adjustment upon the 
    basis of the application and the examination; except that the 
    Secretary may disallow, without further action, any application 
    which he finds contains material omissions or errors which he deems 
    cannot be corrected within such 45 days.

                 (2) Adjustment credited or refunded

        The Secretary, within the 45-day period referred to in paragraph 
    (1), may credit the amount of the adjustment against any liability 
    in respect of an internal revenue tax on the part of the corporation 
    and shall refund the remainder to the corporation.

                           (3) Limitation

        No application under this section shall be allowed unless the 
    amount of the adjustment equals or exceeds (A) 10 percent of the 
    amount estimated by the corporation on its application as its income 
    tax liability for the taxable year, and (B) $500.

                      (4) Effect of adjustment

        For purposes of this title (other than section 6655), any 
    adjustment under this section shall be treated as a reduction, in 
    the estimated income tax paid, made on the day the credit is allowed 
    or the refund is paid.

(c) Definitions

    For purposes of this section and section 6655(h) (relating to 
excessive adjustment)--
        (1) The term ``income tax liability'' means the excess of--
            (A) The sum of--
                (i) the tax imposed by section 11 or 1201(a), or 
            subchapter L of chapter 1, whichever is applicable,
                (ii) the tax imposed by section 55, plus
                (iii) the tax imposed by section 59A, over

            (B) the credits against tax provided by part IV of 
        subchapter A of chapter 1.

        (2) The amount of an adjustment under this section is equal to 
    the excess of--
            (A) the estimated income tax paid by the corporation during 
        the taxable year, over
            (B) the amount which, at the time of filing the application, 
        the corporation estimates as its income tax liability for the 
        taxable year.

(d) Consolidated returns

    If the corporation seeking an adjustment under this section paid its 
estimated income tax on a consolidated basis or expects to make a 
consolidated return for the taxable year, this section shall apply only 
to such extent and subject to such conditions, limitations, and 
exceptions as the Secretary may by regulations prescribe.

(Added Pub. L. 90-364, title I, Sec. 103(d)(1), June 28, 1968, 82 Stat. 
262; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4, 
1976, 90 Stat. 1834; Pub. L. 99-499, title V, Sec. 516(b)(4)(C), Oct. 
17, 1986, 100 Stat. 1771; Pub. L. 99-514, title VII, Sec. 701(d)(2), 
Oct. 22, 1986, 100 Stat. 2342; Pub. L. 100-203, title X, 
Sec. 10301(b)(4), Dec. 22, 1987, 101 Stat. 1330-429.)


                               Amendments

    1987--Subsec. (c). Pub. L. 100-203 substituted ``section 6655(h)'' 
for ``section 6655(g)''.
    1986--Subsec. (c)(1)(A). Pub. L. 99-514 amended subpar. (A) 
generally, restating existing provisions as cl. (i) and adding cl. (ii).
    Pub. L. 99-499 amended subsec. (c)(1)(A), as amended by the Tax 
Reform Act of 1986 (Pub. L. 99-514), by striking out ``plus'' at end of 
cl. (i), substituting ``plus'' for ``over'' at end of cl. (ii), and 
adding cl. (iii).
    1976--Subsecs. (a), (b), (d). Pub. L. 94-455 struck out ``or his 
delegate'' after ``Secretary'' wherever appearing.


                    Effective Date of 1987 Amendment

    Amendment by Pub. L. 100-203 applicable to taxable years beginning 
after Dec. 31, 1987, see section 10301(c) of Pub. L. 100-203, set out as 
a note under section 585 of this title.


                    Effective Date of 1986 Amendments

    Amendment by Pub. L. 99-514 applicable to taxable years beginning 
after Dec. 31, 1986, with certain exceptions and qualifications, see 
section 701(f) of Pub. L. 99-514, set out as an Effective Date note 
under section 55 of this title.
    Amendment by Pub. L. 99-499 applicable to taxable years beginning 
after Dec. 31, 1986, see section 516(c) of Pub. L. 99-499, set out as a 
note under section 26 of this title.


                             Effective Date

    Section applicable with respect to taxable years beginning after 
Dec. 31, 1967, except as provided by section 104 of Pub. L. 90-364, set 
out as notes under sections 6154 and 51 of this title, see section 
103(f) of Pub. L. 90-364, set out as an Effective Date of 1968 Amendment 
note under section 6154 of this title.


  Applicability of Certain Amendments by Pub. L. 99-514 in Relation to 
                   Treaty Obligations of United States

    For applicability of amendment by Pub. L. 99-514 notwithstanding any 
treaty obligation of the United States in effect on Oct. 22, 1986, see 
section 1012(aa)(2) of Pub. L. 100-647, set out as a note under section 
861 of this title.

                  Section Referred to in Other Sections

    This section is referred to in section 6655 of this title.
