
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document affected by Public Law 106-554 Section 1(a)(7)]
[CITE: 26USC7463]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                Subtitle F--Procedure and Administration
 
                    CHAPTER 76--JUDICIAL PROCEEDINGS
 
                       Subchapter C--The Tax Court
 
                           PART II--PROCEDURE
 
Sec. 7463. Disputes involving $50,000 or less


(a) In general

    In the case of any petition filed with the Tax Court for a 
redetermination of a deficiency where neither the amount of the 
deficiency placed in dispute, nor the amount of any claimed overpayment, 
exceeds--
        (1) $50,000 for any one taxable year, in the case of the taxes 
    imposed by subtitle A,
        (2) $50,000, in the case of the tax imposed by chapter 11,
        (3) $50,000 for any one calendar year, in the case of the tax 
    imposed by chapter 12, or
        (4) $50,000 for any 1 taxable period (or, if there is no taxable 
    period, taxable event) in the case of any tax imposed by subtitle D 
    which is described in section 6212(a) (relating to a notice of 
    deficiency),

at the option of the taxpayer concurred in by the Tax Court or a 
division thereof before the hearing of the case, proceedings in the case 
shall be conducted under this section. Notwithstanding the provisions of 
section 7453, such proceedings shall be conducted in accordance with 
such rules of evidence, practice, and procedure as the Tax Court may 
prescribe. A decision, together with a brief summary of the reasons 
therefor, in any such case shall satisfy the requirements of sections 
7459(b) and 7460.

(b) Finality of decisions

    A decision entered in any case in which the proceedings are 
conducted under this section shall not be reviewed in any other court 
and shall not be treated as a precedent for any other case.

(c) Limitation of jurisdiction

    In any case in which the proceedings are conducted under this 
section, notwithstanding the provisions of sections 6214(a) and 6512(b), 
no decision shall be entered redetermining the amount of a deficiency, 
or determining an overpayment, except with respect to amounts placed in 
dispute within the limits described in subsection (a) and with respect 
to amounts conceded by the parties.

(d) Discontinuance of proceedings

    At any time before a decision entered in a case in which the 
proceedings are conducted under this section becomes final, the taxpayer 
or the Secretary may request that further proceedings under this section 
in such case be discontinued. The Tax Court, or the division thereof 
hearing such case, may, if it finds that (1) there are reasonable 
grounds for believing that the amount of the deficiency placed in 
dispute, or the amount of an overpayment, exceeds the applicable 
jurisdictional amount described in subsection (a), and (2) the amount of 
such excess is large enough to justify granting such request, 
discontinue further proceedings in such case under this section. Upon 
any such discontinuance, proceedings in such case shall be conducted in 
the same manner as cases to which the provisions of sections 6214(a) and 
6512(b) apply.

(e) Amount of deficiency in dispute

    For purposes of this section, the amount of any deficiency placed in 
dispute includes additions to the tax, additional amounts, and penalties 
imposed by chapter 68, to the extent that the procedures described in 
subchapter B of chapter 63 apply.

(f) Additional cases in which proceedings may be conducted under this 
        section

    At the option of the taxpayer concurred in by the Tax Court or a 
division thereof before the hearing of the case, proceedings may be 
conducted under this section (in the same manner as a case described in 
subsection (a)) in the case of--
        (1) a petition to the Tax Court under section 6015(e) in which 
    the amount of relief sought does not exceed $50,000, and
        (2) an appeal under section 6330(d)(1)(A) to the Tax Court of a 
    determination in which the unpaid tax does not exceed $50,000.

(Added Pub. L. 91-172, title IX, Sec. 957(a), Dec. 30, 1969, 83 Stat. 
733; amended Pub. L. 92-512, title II, Sec. 203(b)(1), (2), Oct. 20, 
1972, 86 Stat. 945; Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 
4, 1976, 90 Stat. 1834; Pub. L. 95-600, title V, Sec. 502(a)(1), (2)(A), 
(b), Nov. 6, 1978, 92 Stat. 2879; Pub. L. 96-222, title I, 
Sec. 105(a)(1)(A), Apr. 1, 1980, 94 Stat. 218; Pub. L. 97-362, title I, 
Sec. 106(a)(1), Oct. 25, 1982, 96 Stat. 1730; Pub. L. 98-369, div. A, 
title IV, Sec. 461(a)(1), (2)(A), July 18, 1984, 98 Stat. 823; Pub. L. 
101-508, title XI, Sec. 11801(c)(21)(B), Nov. 5, 1990, 104 Stat. 1388-
528; Pub. L. 105-206, title III, Sec. 3103(a), July 22, 1998, 112 Stat. 
731; Pub. L. 106-554, Sec. 1(a)(7) [title III, Sec. 313(b)(1)], Dec. 21, 
2000, 114 Stat. 2763, 2763A-642.)


                            Prior Provisions

    A prior section 7463 was renumbered section 7465 of this title.


                               Amendments

    2000--Subsec. (f). Pub. L. 106-554 added subsec. (f).
    1998--Pub. L. 105-206 in section catchline and in subsec. (a)(1) to 
(4) substituted ``$50,000'' for ``$10,000''.
    1990--Subsec. (f). Pub. L. 101-508 struck out subsec. (f) 
``Qualified State individual income taxes'' which read as follows: ``For 
purposes of this section, a deficiency placed in dispute or claimed 
overpayment with regard to a qualified State individual income tax to 
which subchapter E of chapter 64 applies, for a taxable year, shall be 
treated as a portion of a deficiency placed in dispute or claimed 
overpayment of the income tax for that taxable year.''
    1984--Pub. L. 98-369, Sec. 461(a)(2)(A), substituted ``$10,000'' for 
``$5,000'' in section catchline.
    Subsec. (a). Pub. L. 98-369, Sec. 461(a)(1), substituted ``$10,000'' 
for ``$5,000'' in pars. (1) to (4).
    1982--Section (a)(4). Pub. L. 97-362 added par. (4).
    1980--Subsec. (g). Pub. L. 96-222 struck out subsec. (g) which 
authorized the chief judge of the Tax Court to assign proceedings 
conducted under this section to be heard by the Commissioners of the 
court.
    1978--Pub. L. 95-600, Sec. 502(a)(2)(A), substituted ``$5,000'' for 
``$1,500'' in section catchline.
    Subsec. (a). Pub. L. 95-600, Sec. 502(a)(1), ``$5,000 for any one 
taxable year, in the case of the taxes imposed by subtitle A'' for 
``$1,500 for any one taxable year, in the case of the taxes imposed by 
subtitle A and chapter 12, or'' in par. (1), ``$5,000, in the case of 
the tax imposed by chapter 11, or'' for ``$1,500 in the case of the tax 
imposed by chapter 11,'' in par. (2), and added par. (3).
    Subsec. (g). Pub. L. 95-600, Sec. 502(b), added subsec. (g).
    1976--Subsec, (d). Pub. L. 94-455 struck out ``or his delegate'' 
after ``Secretary''.
    1972--Pub. L. 92-512, Sec. 203(b)(2), substituted ``$1,500'' for 
``$1,000'' in section catchline.
    Subsec. (a)(1), (2). Pub. L. 92-512, Sec. 203(b)(2), substituted 
``$1,500'' for ``$1,000''.
    Subsec. (f). Pub. L. 92-512, Sec. 203(b)(1), added subsec. (f).


                    Effective Date of 1998 Amendment

    Amendment by Pub. L. 105-206 applicable to proceedings commenced 
after July 22, 1998, see section 3103(c) of Pub. L. 105-206, set out as 
a note under section 7436 of this title.


                    Effective Date of 1984 Amendment

    Section 461(b) of Pub. L. 98-369 provided that: ``The amendments 
made by this section [amending this section] shall take effect on the 
date of the enactment of this Act [July 18, 1984].''


                    Effective Date of 1982 Amendment

    Section 106(a)(2) of Pub. L. 97-362 provided that: ``The amendment 
made by this subsection [amending this section] shall apply with respect 
to petitions filed after the date of the enactment of this Act [Oct. 25, 
1982].''


                    Effective Date of 1980 Amendment

    Amendment by Pub. L. 96-222 effective Apr. 1, 1980, see section 
105(b)(1) of Pub. L. 96-222, set out as a note under section 7456 of 
this title.


                    Effective Date of 1978 Amendment

    Section 502(d) of Pub. L. 95-600 provided that:
    ``(1) Subsection (a).--The amendments made by subsection (a) 
[amending this section] shall take effect on the first day of the first 
calendar month beginning more than 180 days after the date of the 
enactment of this Act [Nov. 6, 1978].
    ``(2) Subsections (b) and (c).--The amendments made by subsection 
(b) [amending this section] and (c) [amending section 7456 of this 
title] shall take effect on the date of the enactment of this Act.''


                    Effective Date of 1972 Amendment

    Section 204 of title II of Pub. L. 92-512, as amended by Pub. L. 94-
455, title XXI, Sec. 2116(a), Oct. 4, 1976, 90 Stat. 1910; Pub. L. 99-
514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
    ``(a) General Rule.--Except as provided in subsections (b) and (c), 
the provisions of this title (and the amendments made thereby) [enacting 
this section and sections 6362 and 6363 of this title and amending this 
section and section 6405 of this title] shall take effect on the date of 
the enactment of this Act [Oct. 20, 1972].
    ``(b) Collection and Administration of State Taxes by the United 
States May Not Begin Before January 1, 1974.--Section 6361 of the 
Internal Revenue Code of 1986 [formerly I.R.C. 1954] (as added by 
section 202(a) of this Act) shall take effect on whichever of the 
following is the later:
        ``(1) January 1, 1974, or
        ``(2) the first January 1 which is more than one year after the 
    first date on which at least one State has notified the Secretary of 
    the Treasury or his delegate of an election to enter into an 
    agreement under section 6363 of such Code.
    ``(c) Jurisdiction of Tax Court in Disputes Involving $1,500 or 
Less.--The amendments made by paragraphs (2) and (3) of section 203(b) 
of this Act [amending this section] shall take effect on January 1, 
1974.''


                             Effective Date

    Section 962(e) of Pub. L. 91-172 provided that: ``The amendments 
made by sections 957 [enacting this section] and 960(a), (b), (f), and 
(i) [amending sections 6214, 6512, 7453, 7456, 7481, 7487, of this 
title] shall take effect one year after the date of enactment of this 
Act [Dec. 30, 1969].''


                            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.

                  Section Referred to in Other Sections

    This section is referred to in sections 6214, 6512, 7430, 7436, 
7443A, 7453, 7481, 7487, 7526 of this title.
