
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: 26USC7481]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                Subtitle F--Procedure and Administration
 
                    CHAPTER 76--JUDICIAL PROCEEDINGS
 
            Subchapter D--Court Review of Tax Court Decisions
 
Sec. 7481. Date when Tax Court decision becomes final


(a) Reviewable decisions

    Except as provided in subsections (b), (c), and (d), the decision of 
the Tax Court shall become final--

                (1) Timely notice of appeal not filed

        Upon the expiration of the time allowed for filing a notice of 
    appeal, if no such notice has been duly filed within such time; or

              (2) Decision affirmed or appeal dismissed

        (A) Petition for certiorari not filed on time

            Upon the expiration of the time allowed for filing a 
        petition for certiorari, if the decision of the Tax Court has 
        been affirmed or the appeal dismissed by the United States Court 
        of Appeals and no petition for certiorari has been duly filed; 
        or

        (B) Petition for certiorari denied

            Upon the denial of a petition for certiorari, if the 
        decision of the Tax Court has been affirmed or the appeal 
        dismissed by the United States Court of Appeals; or

        (C) After mandate of Supreme Court

            Upon the expiration of 30 days from the date of issuance of 
        the mandate of the Supreme Court, if such Court directs that the 
        decision of the Tax Court be affirmed or the appeal dismissed.

                  (3) Decision modified or reversed

        (A) Upon mandate of Supreme Court

            If the Supreme Court directs that the decision of the Tax 
        Court be modified or reversed, the decision of the Tax Court 
        rendered in accordance with the mandate of the Supreme Court 
        shall become final upon the expiration of 30 days from the time 
        it was rendered, unless within such 30 days either the Secretary 
        or the taxpayer has instituted proceedings to have such decision 
        corrected to accord with the mandate, in which event the 
        decision of the Tax Court shall become final when so corrected.

        (B) Upon mandate of the Court of Appeals

            If the decision of the Tax Court is modified or reversed by 
        the United States Court of Appeals, and if--
                (i) the time allowed for filing a petition for 
            certiorari has expired and no such petition has been duly 
            filed, or
                (ii) the petition for certiorari has been denied, or
                (iii) the decision of the United States Court of Appeals 
            has been affirmed by the Supreme Court, then the decision of 
            the Tax Court rendered in accordance with the mandate of the 
            United States Court of Appeals shall become final on the 
            expiration of 30 days from the time such decision of the Tax 
            Court was rendered, unless within such 30 days either the 
            Secretary or the taxpayer has instituted proceedings to have 
            such decision corrected so that it will accord with the 
            mandate, in which event the decision of the Tax Court shall 
            become final when so corrected.

                            (4) Rehearing

        If the Supreme Court orders a rehearing; or if the case is 
    remanded by the United States Court of Appeals to the Tax Court for 
    a rehearing, and if--
            (A) the time allowed for filing a petition for certiorari 
        has expired and no such petition has been duly filed, or
            (B) the petition for certiorari has been denied, or
            (C) the decision of the United States Court of Appeals has 
        been affirmed by the Supreme Court,

    then the decision of the Tax Court rendered upon such rehearing 
    shall become final in the same manner as though no prior decision of 
    the Tax Court has been rendered.

                    (5) Definition of ``mandate''

        As used in this section, the term ``mandate'', in case a mandate 
    has been recalled prior to the expiration of 30 days from the date 
    of issuance thereof, means the final mandate.

(b) Nonreviewable decisions

    The decision of the Tax Court in a proceeding conducted under 
section 7436(c) or 7463 shall become final upon the expiration of 90 
days after the decision is entered.

(c) Jurisdiction over interest determinations

                           (1) In general

        Notwithstanding subsection (a), if, within 1 year after the date 
    the decision of the Tax Court becomes final under subsection (a) in 
    a case to which this subsection applies, the taxpayer files a motion 
    in the Tax Court for a redetermination of the amount of interest 
    involved, then the Tax Court may reopen the case solely to determine 
    whether the taxpayer has made an overpayment of such interest or the 
    Secretary has made an underpayment of such interest and the amount 
    thereof.

             (2) Cases to which this subsection applies

        This subsection shall apply where--
            (A)(i) an assessment has been made by the Secretary under 
        section 6215 which includes interest as imposed by this title, 
        and
            (ii) the taxpayer has paid the entire amount of the 
        deficiency plus interest claimed by the Secretary, and
            (B) the Tax Court finds under section 6512(b) that the 
        taxpayer has made an overpayment.

                          (3) Special rules

        If the Tax Court determines under this subsection that the 
    taxpayer has made an overpayment of interest or that the Secretary 
    has made an underpayment of interest, then that determination shall 
    be treated under section 6512(b)(1) as a determination of an 
    overpayment of tax. An order of the Tax Court redetermining 
    interest, when entered upon the records of the court, shall be 
    reviewable in the same manner as a decision of the Tax Court.

(d) Decisions relating to estate tax extended under section 6166

    If with respect to a decedent's estate subject to a decision of the 
Tax Court--
        (1) the time for payment of an amount of tax imposed by chapter 
    11 is extended under section 6166, and
        (2) there is treated as an administrative expense under section 
    2053 either--
            (A) any amount of interest which a decedent's estate pays on 
        any portion of the tax imposed by section 2001 on such estate 
        for which the time of payment is extended under section 6166, or
            (B) interest on any estate, succession, legacy, or 
        inheritance tax imposed by a State on such estate during the 
        period of the extension of time for payment under section 6166,

then, upon a motion by the petitioner in such case in which such time 
for payment of tax has been extended under section 6166, the Tax Court 
may reopen the case solely to modify the Court's decision to reflect 
such estate's entitlement to a deduction for such administration 
expenses under section 2053 and may hold further trial solely with 
respect to the claim for such deduction if, within the discretion of the 
Tax Court, such a hearing is deemed necessary. An order of the Tax Court 
disposing of a motion under this subsection shall be reviewable in the 
same manner as a decision of the Tax Court, but only with respect to the 
matters determined in such order.

(Aug. 16, 1954, ch. 736, 68A Stat. 889; Pub. L. 91-172, title IX, 
Sec. 960(h)(1), Dec. 30, 1969, 83 Stat. 734; Pub. L. 94-455, title XIX, 
Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 100-647, title 
VI, Secs. 6246(a), (b)(2), 6247(a), (b)(2), Nov. 10, 1988, 102 Stat. 
3751, 3752; Pub. L. 105-34, title XIV, Secs. 1452(a), 1454(b)(3), Aug. 
5, 1997, 111 Stat. 1054, 1057.)


                               Amendments

    1997--Subsec. (b). Pub. L. 105-34, Sec. 1454(b)(3), substituted 
``section 7436(c) or 7463'' for ``section 7463''.
    Subsec. (c). Pub. L. 105-34, Sec. 1452(a), reenacted heading without 
change and amended text generally. Prior to amendment, text read as 
follows: ``Notwithstanding subsection (a), if--
        ``(1) an assessment has been made by the Secretary under section 
    6215 which includes interest as imposed by this title,
        ``(2) the taxpayer has paid the entire amount of the deficiency 
    plus interest claimed by the Secretary, and
        ``(3) within 1 year after the date the decision of the Tax Court 
    becomes final under subsection (a), the taxpayer files a petition in 
    the Tax Court for a determination that the amount of interest 
    claimed by the Secretary exceeds the amount of interest imposed by 
    this title,
then the Tax Court may reopen the case solely to determine whether the 
taxpayer has made an overpayment of such interest and the amount of any 
such overpayment. If the Tax Court determines under this subsection that 
the taxpayer has made an overpayment of interest, then that 
determination shall be treated under section 6512(b)(1) as a 
determination of an overpayment of tax. An order of the Tax Court 
redetermining the interest due, when entered upon the records of the 
court, shall be reviewable in the same manner as a decision of the Tax 
Court.''
    1988--Subsec. (a). Pub. L. 100-647, Sec. 6247(b)(2), substituted 
``subsections (b), (c), and (d)'' for ``subsections (b) and (c)''.
    Pub. L. 100-647, Sec. 6246(b)(2), substituted ``subsections (b) and 
(c)'' for ``subsection (b)''.
    Subsec. (c). Pub. L. 100-647, Sec. 6246(a), added subsec. (c).
    Subsec. (d). Pub. L. 100-647, Sec. 6247(a), added subsec. (d).
    1976--Subsecs. (a)(3)(A), (B)(iii). Pub. L. 94-455 struck out ``or 
his delegate'' after ``Secretary''.
    1969--Pub. L. 91-172 designated existing provisions as subsec. (a), 
inserted reference to the exception provided for in subsec. (b), 
substituted ``notice of appeal'' for ``petition for review'' in par. 
(1), and substituted references to dismissal of appeal for references to 
dismissal of petition for review in par. (2), and added subsec. (b).


                    Effective Date of 1997 Amendment

    Section 1452(b) of Pub. L. 105-34 provided that: ``The amendment 
made by this section [amending this section] shall take effect on the 
date of the enactment of this Act [Aug. 5, 1997].''
    Amendment by section 1454(b)(3) of Pub. L. 105-34 effective Aug. 5, 
1997, see section 1454(c) of Pub. L. 105-34, set out as a note under 
section 6511 of this title.


                    Effective Date of 1988 Amendment

    Amendment by section 6246(a), (b)(2) of Pub. L. 100-647 applicable 
to assessments of deficiencies redetermined by the Tax Court made after 
Nov. 10, 1988, see section 6246(c) of Pub. L. 100-647, set out as a note 
under section 6512 of this title.
    Amendment by section 6247(a), (b)(2) of Pub. L. 100-647 effective 
with respect to Tax Court cases for which the decision is not final on 
Nov. 10, 1988, see section 6247(c) of Pub. L. 100-647, set out as a note 
under section 6512 of this title.


                    Effective Date of 1969 Amendment

    Amendment by Pub. L. 91-172 effective 30 days after Dec. 30, 1969, 
see section 962(f) of Pub. L. 91-172, set out as a note under section 
7483 of this title.

                  Section Referred to in Other Sections

    This section is referred to in sections 6214, 6230, 6255, 6512, 
7428, 7436 of this title.
