TITLE 26 - US CODE - CHAPTER 65 - ABATEMENTS, CREDITS, AND REFUNDS

Subchapter A - Procedure in General

26 USC 6401 - Amounts treated as overpayments

(a) Assessment and collection after limitation period. 
The term overpayment includes that part of the amount of the payment of any internal revenue tax which is assessed or collected after the expiration of the period of limitation properly applicable thereto.
(b) Excessive credits 

(1) In general 
If the amount allowable as credits under subpart C of part IV of subchapter A of chapter 1 (relating to refundable credits) exceeds the tax imposed by subtitle A (reduced by the credits allowable under subparts A, B, D, G, and H of such part IV), the amount of such excess shall be considered an overpayment.
(2) Special rule for credit under section 33 
For purposes of paragraph (1), any credit allowed under section 33 (relating to withholding of tax on nonresident aliens and on foreign corporations) for any taxable year shall be treated as a credit allowable under subpart C of part IV of subchapter A of chapter 1 only if an election under subsection (g) or (h) of section 6013 is in effect for such taxable year. The preceding sentence shall not apply to any credit so allowed by reason of section 1446.
(c) Rule where no tax liability 
An amount paid as tax shall not be considered not to constitute an overpayment solely by reason of the fact that there was no tax liability in respect of which such amount was paid.

26 USC 6402 - Authority to make credits or refunds

(a) General rule 
In the case of any overpayment, the Secretary, within the applicable period of limitations, may credit the amount of such overpayment, including any interest allowed thereon, against any liability in respect of an internal revenue tax on the part of the person who made the overpayment and shall, subject to subsections (c), (d), and (e) refund any balance to such person.
(b) Credits against estimated tax 
The Secretary is authorized to prescribe regulations providing for the crediting against the estimated income tax for any taxable year of the amount determined by the taxpayer or the Secretary to be an overpayment of the income tax for a preceding taxable year.
(c) Offset of past-due support against overpayments 
The amount of any overpayment to be refunded to the person making the overpayment shall be reduced by the amount of any past-due support (as defined in section 464(c) of the Social Security Act) owed by that person of which the Secretary has been notified by a State in accordance with section 464 of the Social Security Act. The Secretary shall remit the amount by which the overpayment is so reduced to the State collecting such support and notify the person making the overpayment that so much of the overpayment as was necessary to satisfy his obligation for past-due support has been paid to the State. A reduction under this subsection shall be applied first to satisfy any past-due support which has been assigned to the State under section 402(a)(26)1 or 471(a)(17) of the Social Security Act, and shall be applied to satisfy any other past-due support after any other reductions allowed by law (but before a credit against future liability for an internal revenue tax) have been made. This subsection shall be applied to an overpayment prior to its being credited to a persons future liability for an internal revenue tax.
(d) Collection of debts owed to Federal agencies 

(1) In general 
Upon receiving notice from any Federal agency that a named person owes a past-due legally enforceable debt (other than past-due support subject to the provisions of subsection (c)) to such agency, the Secretary shall
(A) reduce the amount of any overpayment payable to such person by the amount of such debt;
(B) pay the amount by which such overpayment is reduced under subparagraph (A) to such agency; and
(C) notify the person making such overpayment that such overpayment has been reduced by an amount necessary to satisfy such debt.
(2) Priorities for offset 
Any overpayment by a person shall be reduced pursuant to this subsection after such overpayment is reduced pursuant to subsection (c) with respect to past-due support collected pursuant to an assignment under section 402(a)(26)1 of the Social Security Act and before such overpayment is reduced pursuant to subsection (e) and before such overpayment is credited to the future liability for tax of such person pursuant to subsection (b). If the Secretary receives notice from a Federal agency or agencies of more than one debt subject to paragraph (1) that is owed by a person to such agency or agencies, any overpayment by such person shall be applied against such debts in the order in which such debts accrued.
(3) Treatment of OASDI overpayments 

(A) Requirements 
Paragraph (1) shall apply with respect to an OASDI overpayment only if the requirements of paragraphs (1) and (2) of section 3720A (f) of title 31, United States Code, are met with respect to such overpayment.
(B) Notice; protection of other persons filing joint return 

(i) Notice In the case of a debt consisting of an OASDI overpayment, if the Secretary determines upon receipt of the notice referred to in paragraph (1) that the refund from which the reduction described in paragraph (1)(A) would be made is based upon a joint return, the Secretary shall
(I) notify each taxpayer filing such joint return that the reduction is being made from a refund based upon such return, and
(II) include in such notification a description of the procedures to be followed, in the case of a joint return, to protect the share of the refund which may be payable to another person.
(ii) Adjustments based on protections given to other taxpayers on joint return If the other person filing a joint return with the person owing the OASDI overpayment takes appropriate action to secure his or her proper share of the refund subject to reduction under this subsection, the Secretary shall pay such share to such other person. The Secretary shall deduct the amount of such payment from amounts which are derived from subsequent reductions in refunds under this subsection and are payable to a trust fund referred to in subparagraph (C).
(C) Deposit of amount of reduction into appropriate trust fund 
In lieu of payment, pursuant to paragraph (1)(B), of the amount of any reduction under this subsection to the Commissioner of Social Security, the Secretary shall deposit such amount in the Federal Old-Age and Survivors Insurance Trust Fund or the Federal Disability Insurance Trust Fund, whichever is certified to the Secretary as appropriate by the Commissioner of Social Security.
(D) OASDI overpayment 
For purposes of this paragraph, the term OASDI overpayment means any overpayment of benefits made to an individual under title II of the Social Security Act.
(e) Collection of past-due, legally enforceable State income tax obligations 

(1) In general 
Upon receiving notice from any State that a named person owes a past-due, legally enforceable State income tax obligation to such State, the Secretary shall, under such conditions as may be prescribed by the Secretary
(A) reduce the amount of any overpayment payable to such person by the amount of such State income tax obligation;
(B) pay the amount by which such overpayment is reduced under subparagraph (A) to such State and notify such State of such persons name, taxpayer identification number, address, and the amount collected; and
(C) notify the person making such overpayment that the overpayment has been reduced by an amount necessary to satisfy a past-due, legally enforceable State income tax obligation.

If an offset is made pursuant to a joint return, the notice under subparagraph (B) shall include the names, taxpayer identification numbers, and addresses of each person filing such return.

(2) Offset permitted only against residents of State seeking offset 
Paragraph (1) shall apply to an overpayment by any person for a taxable year only if the address shown on the Federal return for such taxable year of the overpayment is an address within the State seeking the offset.
(3) Priorities for offset 
Any overpayment by a person shall be reduced pursuant to this subsection
(A) after such overpayment is reduced pursuant to
(i) subsection (a) with respect to any liability for any internal revenue tax on the part of the person who made the overpayment;
(ii) subsection (c) with respect to past-due support; and
(iii) subsection (d) with respect to any past-due, legally enforceable debt owed to a Federal agency; and
(B) before such overpayment is credited to the future liability for any Federal internal revenue tax of such person pursuant to subsection (b).

If the Secretary receives notice from one or more agencies of the State of more than one debt subject to paragraph (1) that is owed by such person to such an agency, any overpayment by such person shall be applied against such debts in the order in which such debts accrued.

(4) Notice; consideration of evidence 
No State may take action under this subsection until such State
(A) notifies by certified mail with return receipt the person owing the past-due State income tax liability that the State proposes to take action pursuant to this section;
(B) gives such person at least 60 days to present evidence that all or part of such liability is not past-due or not legally enforceable;
(C) considers any evidence presented by such person and determines that an amount of such debt is past-due and legally enforceable; and
(D) satisfies such other conditions as the Secretary may prescribe to ensure that the determination made under subparagraph (C) is valid and that the State has made reasonable efforts to obtain payment of such State income tax obligation.
(5) Past-due, legally enforceable State income tax obligation 
For purposes of this subsection, the term past-due, legally enforceable State income tax obligation means a debt
(A) 
(i) which resulted from
(I) a judgment rendered by a court of competent jurisdiction which has determined an amount of State income tax to be due; or
(II) a determination after an administrative hearing which has determined an amount of State income tax to be due; and
(ii) which is no longer subject to judicial review; or
(B) which resulted from a State income tax which has been assessed but not collected, the time for redetermination of which has expired, and which has not been delinquent for more than 10 years.

For purposes of this paragraph, the term State income tax includes any local income tax administered by the chief tax administration agency of the State.

(6) Regulations 
The Secretary shall issue regulations prescribing the time and manner in which States must submit notices of past-due, legally enforceable State income tax obligations and the necessary information that must be contained in or accompany such notices. The regulations shall specify the types of State income taxes and the minimum amount of debt to which the reduction procedure established by paragraph (1) may be applied. The regulations may require States to pay a fee to reimburse the Secretary for the cost of applying such procedure. Any fee paid to the Secretary pursuant to the preceding sentence shall be used to reimburse appropriations which bore all or part of the cost of applying such procedure.
(7) Erroneous payment to State 
Any State receiving notice from the Secretary that an erroneous payment has been made to such State under paragraph (1) shall pay promptly to the Secretary, in accordance with such regulations as the Secretary may prescribe, an amount equal to the amount of such erroneous payment (without regard to whether any other amounts payable to such State under such paragraph have been paid to such State).
(f) Review of reductions 
No court of the United States shall have jurisdiction to hear any action, whether legal or equitable, brought to restrain or review a reduction authorized by subsection (c), (d), or (e). No such reduction shall be subject to review by the Secretary in an administrative proceeding. No action brought against the United States to recover the amount of any such reduction shall be considered to be a suit for refund of tax. This subsection does not preclude any legal, equitable, or administrative action against the Federal agency or State to which the amount of such reduction was paid or any such action against the Commissioner of Social Security which is otherwise available with respect to recoveries of overpayments of benefits under section 204 of the Social Security Act.
(g) Federal agency 
For purposes of this section, the term Federal agency means a department, agency, or instrumentality of the United States, and includes a Government corporation (as such term is defined in section 103 of title 5, United States Code).
(h) Treatment of payments to States 
The Secretary may provide that, for purposes of determining interest, the payment of any amount withheld under subsection (c) or (e) to a State shall be treated as a payment to the person or persons making the overpayment.
(i) Cross reference 
For procedures relating to agency notification of the Secretary, see section 3721 of title 31, United States Code.
(j) Refunds to certain fiduciaries of insolvent members of affiliated groups 
Notwithstanding any other provision of law, in the case of an insolvent corporation which is a member of an affiliated group of corporations filing a consolidated return for any taxable year and which is subject to a statutory or court-appointed fiduciary, the Secretary may by regulation provide that any refund for such taxable year may be paid on behalf of such insolvent corporation to such fiduciary to the extent that the Secretary determines that the refund is attributable to losses or credits of such insolvent corporation.
(k) Explanation of reason for refund disallowance 
In the case of a disallowance of a claim for refund, the Secretary shall provide the taxpayer with an explanation for such disallowance.
[1] See References in Text note below.

26 USC 6403 - Overpayment of installment

In the case of a tax payable in installments, if the taxpayer has paid as an installment of the tax more than the amount determined to be the correct amount of such installment, the overpayment shall be credited against the unpaid installments, if any. If the amount already paid, whether or not on the basis of installments, exceeds the amount determined to be the correct amount of the tax, the overpayment shall be credited or refunded as provided in section 6402.

26 USC 6404 - Abatements

(a) General rule 
The Secretary is authorized to abate the unpaid portion of the assessment of any tax or any liability in respect thereof, which
(1) is excessive in amount, or
(2) is assessed after the expiration of the period of limitation properly applicable thereto, or
(3) is erroneously or illegally assessed.
(b) No claim for abatement of income, estate, and gift taxes 
No claim for abatement shall be filed by a taxpayer in respect of any assessment of any tax imposed under subtitle A or B.
(c) Small tax balances 
The Secretary is authorized to abate the unpaid portion of the assessment of any tax, or any liability in respect thereof, if the Secretary determines under uniform rules prescribed by the Secretary that the administration and collection costs involved would not warrant collection of the amount due.
(d) Assessments attributable to certain mathematical errors by Internal Revenue Service 
In the case of an assessment of any tax imposed by chapter 1 attributable in whole or in part to a mathematical error described in section 6213 (g)(2)(A), if the return was prepared by an officer or employee of the Internal Revenue Service acting in his official capacity to provide assistance to taxpayers in the preparation of income tax returns, the Secretary is authorized to abate the assessment of all or any part of any interest on such deficiency for any period ending on or before the 30th day following the date of notice and demand by the Secretary for payment of the deficiency.
(e) Abatement of interest attributable to unreasonable errors and delays by Internal Revenue Service 

(1) In general 
In the case of any assessment of interest on
(A) any deficiency attributable in whole or in part to any unreasonable error or delay by an officer or employee of the Internal Revenue Service (acting in his official capacity) in performing a ministerial or managerial act, or
(B) any payment of any tax described in section 6212 (a) to the extent that any unreasonable error or delay in such payment is attributable to such an officer or employee being erroneous or dilatory in performing a ministerial or managerial act,

the Secretary may abate the assessment of all or any part of such interest for any period. For purposes of the preceding sentence, an error or delay shall be taken into account only if no significant aspect of such error or delay can be attributed to the taxpayer involved, and after the Internal Revenue Service has contacted the taxpayer in writing with respect to such deficiency or payment.

(2) Interest abated with respect to erroneous refund check 
The Secretary shall abate the assessment of all interest on any erroneous refund under section 6602 until the date demand for repayment is made, unless
(A) the taxpayer (or a related party) has in any way caused such erroneous refund, or
(B) such erroneous refund exceeds $50,000.
(f) Abatement of any penalty or addition to tax attributable to erroneous written advice by the Internal Revenue Service 

(1) In general 
The Secretary shall abate any portion of any penalty or addition to tax attributable to erroneous advice furnished to the taxpayer in writing by an officer or employee of the Internal Revenue Service, acting in such officers or employees official capacity.
(2) Limitations 
Paragraph (1) shall apply only if
(A) the written advice was reasonably relied upon by the taxpayer and was in response to a specific written request of the taxpayer, and
(B) the portion of the penalty or addition to tax did not result from a failure by the taxpayer to provide adequate or accurate information.
(3) Initial regulations 
Within 180 days after the date of the enactment of this subsection, the Secretary shall prescribe such initial regulations as may be necessary to carry out this subsection.
(g) Suspension of interest and certain penalties where Secretary fails to contact taxpayer 

(1) Suspension 

(A) In general 
In the case of an individual who files a return of tax imposed by subtitle A for a taxable year on or before the due date for the return (including extensions), if the Secretary does not provide a notice to the taxpayer specifically stating the taxpayers liability and the basis for the liability before the close of the 36-month period beginning on the later of
(i) the date on which the return is filed; or
(ii) the due date of the return without regard to extensions,

the Secretary shall suspend the imposition of any interest, penalty, addition to tax, or additional amount with respect to any failure relating to the return which is computed by reference to the period of time the failure continues to exist and which is properly allocable to the suspension period.

(B) Separate application 
This paragraph shall be applied separately with respect to each item or adjustment. If, after the return for a taxable year is filed, the taxpayer provides to the Secretary 1 or more signed written documents showing that the taxpayer owes an additional amount of tax for the taxable year, clause (i) shall be applied by substituting the date the last of the documents was provided for the date on which the return is filed.
(2) Exceptions 
Paragraph (1) shall not apply to
(A) any penalty imposed by section 6651;
(B) any interest, penalty, addition to tax, or additional amount in a case involving fraud;
(C) any interest, penalty, addition to tax, or additional amount with respect to any tax liability shown on the return;
(D) any interest, penalty, addition to tax, or additional amount with respect to any gross misstatement;
(E) any interest, penalty, addition to tax, or additional amount with respect to any reportable transaction with respect to which the requirement of section 6664 (d)(2)(A) is not met and any listed transaction (as defined in 6707A(c)); or
(F) any criminal penalty.
(3) Suspension period 
For purposes of this subsection, the term suspension period means the period
(A) beginning on the day after the close of the 36-month period under paragraph (1); and
(B) ending on the date which is 21 days after the date on which notice described in paragraph (1)(A) is provided by the Secretary.
(h) Review of denial of request for abatement of interest 

(1) In general 
The Tax Court shall have jurisdiction over any action brought by a taxpayer who meets the requirements referred to in section 7430 (c)(4)(A)(ii) to determine whether the Secretarys failure to abate interest under this section was an abuse of discretion, and may order an abatement, if such action is brought within 180 days after the date of the mailing of the Secretarys final determination not to abate such interest.
(2) Special rules 

(A) Date of mailing 
Rules similar to the rules of section 6213 shall apply for purposes of determining the date of the mailing referred to in paragraph (1).
(B) Relief 
Rules similar to the rules of section 6512 (b) shall apply for purposes of this subsection.
(C) Review 
An order of the Tax Court 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.
(i) Cross reference 
For authority to suspend running of interest, etc. by reason of Presidentially declared disaster or terroristic or military action, see section 7508A.

26 USC 6405 - Reports of refunds and credits

(a) By Treasury to Joint Committee 
No refund or credit of any income, war profits, excess profits, estate, or gift tax, or any tax imposed with respect to public charities, private foundations, operators trust funds, pension plans, or real estate investment trusts under chapter 41, 42, 43, or 44, in excess of $2,000,000 shall be made until after the expiration of 30 days from the date upon which a report giving the name of the person to whom the refund or credit is to be made, the amount of such refund or credit, and a summary of the facts and the decision of the Secretary, is submitted to the Joint Committee on Taxation.
(b) Tentative adjustments 
Any credit or refund allowed or made under section 6411 shall be made without regard to the provisions of subsection (a) of this section. In any such case, if the credit or refund, reduced by any deficiency in such tax thereafter assessed and by deficiencies in any other tax resulting from adjustments reflected in the determination of the credit or refund, is in excess of $2,000,000, there shall be submitted to such committee a report containing the matter specified in subsection (a) at such time after the making of the credit or refund as the Secretary shall determine the correct amount of the tax.
(c) Refunds attributable to certain disaster losses 
If any refund or credit of income taxes is attributable to the taxpayers election under section 165 (i) to deduct a disaster loss for the taxable year immediately preceding the taxable year in which the disaster occurred, the Secretary is authorized in his discretion to make the refund or credit, to the extent attributable to such election, without regard to the provisions of subsection (a) of this section. If such refund or credit is made without regard to subsection (a), there shall thereafter be submitted to such Joint Committee a report containing the matter specified in subsection (a) as soon as the Secretary shall determine the correct amount of the tax for the taxable year for which the refund or credit is made.

26 USC 6406 - Prohibition of administrative review of decisions

In the absence of fraud or mistake in mathematical calculation, the findings of fact in and the decision of the Secretary upon the merits of any claim presented under or authorized by the internal revenue laws and the allowance or non-allowance by the Secretary of interest on any credit or refund under the internal revenue laws shall not, except as provided in subchapters C and D of chapter 76 (relating to the Tax Court), be subject to review by any other administrative or accounting officer, employee, or agent of the United States.

26 USC 6407 - Date of allowance of refund or credit

The date on which the Secretary first authorizes the scheduling of an overassessment in respect of any internal revenue tax shall be considered as the date of allowance of refund or credit in respect of such tax.

26 USC 6408 - State escheat laws not to apply

No overpayment of any tax imposed by this title shall be refunded (and no interest with respect to any such overpayment shall be paid) if the amount of such refund (or interest) would escheat to a State or would otherwise become the property of a State under any law relating to the disposition of unclaimed or abandoned property. No refund (or payment of interest) shall be made to the estate of any decedent unless it is affirmatively shown that such amount will not escheat to a State or otherwise become the property of a State under such a law.

Subchapter B - Rules of Special Application

26 USC 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)(4)(B), an application under this subsection shall not constitute a claim for credit or refund.

(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.

26 USC 6412 - Floor stocks refunds

(a) In general 

(1) Tires and taxable fuel 
Where before October 1, 2011, any article subject to the tax imposed by section 4071 or 4081 has been sold by the manufacturer, producer, or importer and on such date is held by a dealer and has not been used and is intended for sale, there shall be credited or refunded (without interest) to the manufacturer, producer, or importer an amount equal to the difference between the tax paid by such manufacturer, producer, or importer on his sale of the article and the amount of tax made applicable to such article on and after October 1, 2011, if claim for such credit or refund is filed with the Secretary on or before March 31, 2012, based upon a request submitted to the manufacturer, producer, or importer before January 1, 2012, by the dealer who held the article in respect of which the credit or refund is claimed, and, on or before March 31, 2012, reimbursement has been made to such dealer by such manufacturer, producer, or importer for the tax reduction on such article or written consent has been obtained from such dealer to allowance of such credit or refund. No credit or refund shall be allowable under this paragraph with respect to taxable fuel in retail stocks held at the place where intended to be sold at retail, nor with respect to taxable fuel held for sale by a producer or importer of taxable fuel.
(2) Definitions 
For purposes of this section
(A) The term dealer includes a wholesaler, jobber, distributor, or retailer.
(B) An article shall be considered as held by a dealer if title thereto has passed to such dealer (whether or not delivery to him has been made), and if for purposes of consumption title to such article or possession thereof has not at any time been transferred to any person other than a dealer.
(b) Limitation on eligibility for credit or refund 
No manufacturer, producer, or importer shall be entitled to credit or refund under subsection (a) unless he has in his possession such evidence of the inventories with respect to which the credit or refund is claimed as may be required by regulations prescribed under this section.
(c) Other laws applicable 
All provisions of law, including penalties, applicable in respect of the taxes imposed by sections 4071 and 4081 shall, insofar as applicable and not inconsistent with subsections (a) and (b) of this section, apply in respect of the credits and refunds provided for in subsection (a) to the same extent as if such credits or refunds constituted overpayments of such taxes.

26 USC 6413 - Special rules applicable to certain employment taxes

(a) Adjustment of tax 

(1) General rule 
If more than the correct amount of tax imposed by section 3101, 3111, 3201, 3221, or 3402 is paid with respect to any payment of remuneration, proper adjustments, with respect to both the tax and the amount to be deducted, shall be made, without interest, in such manner and at such times as the Secretary may by regulations prescribe.
(2) United States as employer 
For purposes of this subsection, in the case of remuneration received from the United States or a wholly-owned instrumentality thereof during any calendar year, each head of a Federal agency or instrumentality who makes a return pursuant to section 3122 and each agent, designated by the head of a Federal agency or instrumentality, who makes a return pursuant to such section shall be deemed a separate employer.
(3) Guam or American Samoa as employer 
For purposes of this subsection, in the case of remuneration received during any calendar year from the Government of Guam, the Government of American Samoa, a political subdivision of either, or any instrumentality of any one or more of the foregoing which is wholly owned thereby, the Governor of Guam, the Governor of American Samoa, and each agent designated by either who makes a return pursuant to section 3125 shall be deemed a separate employer.
(4) District of Columbia as employer 
For purposes of this subsection, in the case of remuneration received during any calendar year from the District of Columbia or any instrumentality which is wholly owned thereby, the Mayor of the District of Columbia and each agent designated by him who makes a return pursuant to section 3125 shall be deemed a separate employer.
(5) States and political subdivisions as employer 
For purposes of this subsection, in the case of remuneration received from a State or any political subdivision thereof (or any instrumentality of any one or more of the foregoing which is wholly owned thereby) during any calendar year, each head of an agency or instrumentality, and each agent designated by either, who makes a return pursuant to section 3125 shall be deemed a separate employer.
(b) Overpayments of certain employment taxes 
If more than the correct amount of tax imposed by section 3101, 3111, 3201, 3221, or 3402 is paid or deducted with respect to any payment of remuneration and the overpayment cannot be adjusted under subsection (a) of this section, the amount of the overpayment shall be refunded in such manner and at such times (subject to the statute of limitations properly applicable thereto) as the Secretary may by regulations prescribe.
(c) Special refunds 

(1) In general 
If by reason of an employee receiving wages from more than one employer during a calendar year the wages received by him during such year exceed the contribution and benefit base (as determined under section 230 of the Social Security Act) which is effective with respect to such year, the employee shall be entitled (subject to the provisions of section 31 (b)) to a credit or refund of any amount of tax, with respect to such wages, imposed by section 3101 (a) or section 3201 (a) (to the extent of so much of the rate applicable under section 3201 (a) as does not exceed the rate of tax in effect under section 3101 (a)), or by both such sections, and deducted from the employees wages (whether or not paid to the Secretary), which exceeds the tax with respect to the amount of such wages received in such year which is equal to such contribution and benefit base. The term wages as used in this paragraph shall, for purposes of this paragraph, include compensation as defined in section 3231 (e).
(2) Applicability in case of Federal and State employees, employees of certain foreign affiliates, and governmental employees in Guam, American Samoa, and the District of Columbia 

(A) Federal employees 
In the case of remuneration received from the United States or a wholly-owned instrumentality thereof during any calendar year, each head of a Federal agency or instrumentality who makes a return pursuant to section 3122 and each agent, designated by the head of a Federal agency or instrumentality, who makes a return pursuant to such section shall, for purposes of this subsection, be deemed a separate employer; and the term wages includes for purposes of this subsection the amount, not to exceed an amount equal to the contribution and benefit base (as determined under section 230 of the Social Security Act) for any calendar year with respect to which such contribution and benefit base is effective, determined by each such head or agent as constituting wages paid to an employee.
(B) State employees 
For purposes of this subsection, in the case of remuneration received during any calendar year, the term wages includes such remuneration for services covered by an agreement made pursuant to section 218 of the Social Security Act as would be wages if such services constituted employment; the term employer includes a State or any political subdivision thereof, or any instrumentality of any one or more of the foregoing; the term tax or tax imposed by section 3101 (a) includes, in the case of services covered by an agreement made pursuant to section 218 of the Social Security Act, an amount equivalent to the tax which would be imposed by section 3101 (a), if such services constituted employment as defined in section 3121; and the provisions of this subsection shall apply whether or not any amount deducted from the employees remuneration as a result of an agreement made pursuant to section 218 of the Social Security Act has been paid to the Secretary.
(C) Employees of certain foreign affiliates 
For purposes of paragraph (1) of this subsection, the term wages includes such remuneration for services covered by an agreement made pursuant to section 3121 (l) as would be wages if such services constituted employment; the term employer includes any American employer which has entered into an agreement pursuant to section 3121 (l); the term tax or tax imposed by section 3101 (a), includes, in the case of services covered by an agreement entered into pursuant to section 3121 (l), an amount equivalent to the tax which would be imposed by section 3101 (a), if such services constituted employment as defined in section 3121; and the provisions of paragraph (1) of this subsection shall apply whether or not any amount deducted from the employees remuneration as a result of the agreement entered into pursuant to section 3121 (l) has been paid to the Secretary.
(D) Governmental employees in Guam 
In the case of remuneration received from the Government of Guam or any political subdivision thereof or from any instrumentality of any one or more of the foregoing which is wholly owned thereby, during any calendar year, the Governor of Guam and each agent designated by him who makes a return pursuant to section 3125 (b) shall, for purposes of this subsection, be deemed a separate employer.
(E) Governmental employees in American Samoa 
In the case of remuneration received from the Government of American Samoa or any political subdivision thereof or from any instrumentality of any one or more of the foregoing which is wholly owned thereby, during any calendar year, the Governor of American Samoa and each agent designated by him who makes a return pursuant to section 3125 (c) shall, for purposes of this subsection, be deemed a separate employer.
(F) Governmental employees in the District of Columbia 
In the case of remuneration received from the District of Columbia or any instrumentality wholly owned thereby, during any calendar year, the Mayor of the District of Columbia and each agent designated by him who makes a return pursuant to section 3125 (d) shall, for purposes of this subsection, be deemed a separate employer.
(G) Employees of States and political subdivisions 
In the case of remuneration received from a State or any political subdivision thereof (or any instrumentality of any one or more of the foregoing which is wholly owned thereby) during any calendar year, each head of an agency or instrumentality, and each agent designated by either, who makes a return pursuant to section 3125 (a) shall, for purposes of this subsection, be deemed a separate employer.
(d) Refund or credit of Federal unemployment tax 
Any credit allowable under section 3302, to the extent not previously allowed, shall be considered an overpayment, but no interest shall be allowed or paid with respect to such overpayment.

26 USC 6414 - Income tax withheld

In the case of an overpayment of tax imposed by chapter 24, or by chapter 3, refund or credit shall be made to the employer or to the withholding agent, as the case may be, only to the extent that the amount of such overpayment was not deducted and withheld by the employer or withholding agent.

26 USC 6415 - Credits or refunds to persons who collected certain taxes

(a) Allowance of credits or refunds 
Credit or refund of any overpayment of tax imposed by section 4251, 4261, or 4271 may be allowed to the person who collected the tax and paid it to the Secretary if such person establishes, under such regulations as the Secretary may prescribe, that he has repaid the amount of such tax to the person from whom he collected it, or obtains the consent of such person to the allowance of such credit or refund.
(b) Credit on returns 
Any person entitled to a refund of tax imposed by section 4251, 4261, or 4271 paid, or collected and paid, to the Secretary by him may, instead of filing a claim for refund, take credit therefor against taxes imposed by such section due upon any subsequent return.
(c) Refund of overcollections 
In case any person required under section 4251, 4261, or 4271 to collect any tax shall make an overcollection of such tax, such person shall, upon proper application, refund such overcollection to the person entitled thereto.
(d) Refund of taxable payment 
Any person making a refund of any payment on which tax imposed by section 4251, 4261, or 4271 has been collected may repay therewith the amount of tax collected on such payment.

26 USC 6416 - Certain taxes on sales and services

(a) Condition to allowance 

(1) General rule 
No credit or refund of any overpayment of tax imposed by chapter 31 (relating to retail excise taxes), or chapter 32 (manufacturers taxes), shall be allowed or made unless the person who paid the tax establishes, under regulations prescribed by the Secretary, that he
(A) has not included the tax in the price of the article with respect to which it was imposed and has not collected the amount of the tax from the person who purchased such article;
(B) has repaid the amount of the tax to the ultimate purchaser of the article;
(C) in the case of an overpayment under subsection (b)(2) of this section
(i) has repaid or agreed to repay the amount of the tax to the ultimate vendor of the article, or
(ii) has obtained the written consent of such ultimate vendor to the allowance of the credit or the making of the refund; or
(D) has filed with the Secretary the written consent of the person referred to in subparagraph (B) to the allowance of the credit or the making of the refund.
(2) Exceptions 
This subsection shall not apply to
(A) the tax imposed by section 4041 (relating to tax on special fuels) on the use of any liquid, and
(B) an overpayment of tax under paragraph (1), (3)(A), (4), (5), or (6) of subsection (b) of this section.
(3) Special rule 
For purposes of this subsection, in any case in which the Secretary determines that an article is not taxable, the term ultimate purchaser (when used in paragraph (1)(B) of this subsection) includes a wholesaler, jobber, distributor, or retailer who, on the 15th day after the date of such determination, holds such article for sale; but only if claim for credit or refund by reason of this paragraph is filed on or before the date for filing the return with respect to the taxes imposed under chapter 32 for the first period which begins more than 60 days after the date on such determination.
(4) Registered ultimate vendor or credit card issuer to administer credits and refunds of gasoline tax 

(A) In general 
For purposes of this subsection, except as provided in subparagraph (B), if an ultimate vendor purchases any gasoline on which tax imposed by section 4081 has been paid and sells such gasoline to an ultimate purchaser described in subparagraph (C) or (D) of subsection (b)(2) (and such gasoline is for a use described in such subparagraph), such ultimate vendor shall be treated as the person (and the only person) who paid such tax, but only if such ultimate vendor is registered under section 4101.
(B) Credit card issuer 
For purposes of this subsection, if the purchase of gasoline described in subparagraph (A) (determined without regard to the registration status of the ultimate vendor) is made by means of a credit card issued to the ultimate purchaser, paragraph (1) shall not apply and the person extending the credit to the ultimate purchaser shall be treated as the person (and the only person) who paid the tax, but only if such person
(i) is registered under section 4101,
(ii) has established, under regulations prescribed by the Secretary, that such person
(I) has not collected the amount of the tax from the person who purchased such article, or
(II) has obtained the written consent from the ultimate purchaser to the allowance of the credit or refund, and
(iii) has so established that such person
(I) has repaid or agreed to repay the amount of the tax to the ultimate vendor,
(II) has obtained the written consent of the ultimate vendor to the allowance of the credit or refund, or
(III) has otherwise made arrangements which directly or indirectly provides the ultimate vendor with reimbursement of such tax.

If clause (i), (ii), or (iii) is not met by such person extending the credit to the ultimate purchaser, then such person shall collect an amount equal to the tax from the ultimate purchaser and only such ultimate purchaser may claim such credit or payment.

(C) Timing of claims 
The procedure and timing of any claim under subparagraph (A) or (B) shall be the same as for claims under section 6427 (i)(4), except that the rules of section 6427 (i)(3)(B) regarding electronic claims shall not apply unless the ultimate vendor or credit card issuer has certified to the Secretary for the most recent quarter of the taxable year that all ultimate purchasers of the vendor or credit card issuer are certified and entitled to a refund under subparagraph (C) or (D) of subsection (b)(2).
(b) Special cases in which tax payments considered overpayments 
Under regulations prescribed by the Secretary, credit or refund (without interest) shall be allowed or made in respect of the overpayments determined under the following paragraphs:
(1) Price readjustments 

(A) In general 
Except as provided in subparagraph (B) or (C), if the price of any article in respect of which a tax, based on such price, is imposed by chapter 31 or 32, is readjusted by reason of the return or repossession of the article or a covering or container, or by a bona fide discount, rebate, or allowance, including a readjustment for local advertising (but only to the extent provided in section 4216 (e)(2) and (3)), the part of the tax proportionate to the part of the price repaid or credited to the purchaser shall be deemed to be an overpayment.
(B) Further manufacture 
Subparagraph (A) shall not apply in the case of an article in respect of which tax was computed under section 4223 (b)(2); but if the price for which such article was sold is readjusted by reason of the return or repossession of the article, the part of the tax proportionate to the part of such price repaid or credited to the purchaser shall be deemed to be an overpayment.
(C) Adjustment of tire price 
No credit or refund of any tax imposed by subsection (a) or (b) of section 4071 shall be allowed or made by reason of an adjustment of a tire pursuant to a warranty or guarantee.
(2) Specified uses and resales 
The tax paid under chapter 32 (or under subsection (a) or (d) of section 4041 in respect of sales or under section 4051) in respect of any article shall be deemed to be an overpayment if such article was, by any person
(A) exported;
(B) used or sold for use as supplies for vessels or aircraft;
(C) sold to a State or local government for the exclusive use of a State or local government;
(D) sold to a nonprofit">nonprofit educational organization for its exclusive use;
(E) sold to a qualified blood collector organization (as defined in section 7701 (a)(49)) for such organizations exclusive use in the collection, storage, or transportation of blood;
(F) in the case of any tire taxable under section 4071 (a), sold to any person for use as described in section 4221 (e)(3); or
(G) in the case of gasoline, used or sold for use in the production of special fuels referred to in section 4041.

Subparagraphs (C), (D), and (E) shall not apply in the case of any tax paid under section 4064. In the case of the tax imposed by section 4131, subparagraphs (B), (C), (D), and (E) shall not apply and subparagraph (A) shall apply only if the use of the exported vaccine meets such requirements as the Secretary may by regulations prescribe. This paragraph shall not apply in the case of any tax imposed under section 4041 (a)(1) or 4081 on diesel fuel or kerosene and any tax paid under section 4121. Subparagraphs (C) and (D) shall not apply in the case of any tax imposed on gasoline under section 4081 if the requirements of subsection (a)(4) are not met. In the case of taxes imposed by subchapter C or D of chapter 32, subparagraph (E) shall not apply.

(3) Tax-paid articles used for further manufacture, etc. 
If the tax imposed by chapter 32 has been paid with respect to the sale of any article (other than coal taxable under section 4121) by the manufacturer, producer, or importer thereof and such article is sold to a subsequent manufacturer or producer before being used, such tax shall be deemed to be an overpayment by such subsequent manufacturer or producer if
(A) in the case of any article other than any fuel taxable under section 4081, such article is used by the subsequent manufacturer or producer as material in the manufacture or production of, or as a component part of
(i) another article taxable under chapter 32, or
(ii) an automobile bus chassis or an automobile bus body,

manufactured or produced by him; or

(B) in the case of any fuel taxable under section 4081, such fuel is used by the subsequent manufacturer or producer, for nonfuel purposes, as a material in the manufacture or production of any other article manufactured or produced by him.
(4) Tires 
If
(A) the tax imposed by section 4071 has been paid with respect to the sale of any tire by the manufacturer, producer, or importer thereof, and
(B) such tire is sold by any person on or in connection with, or with the sale of, any other article, such tax shall be deemed to be an overpayment by such person if such other article is
(i) an automobile bus chassis or an automobile bus body,
(ii) by such person exported, sold to a State or local government for the exclusive use of a State or local government, sold to a nonprofit">nonprofit educational organization for its exclusive use, or used or sold for use as supplies for vessels or aircraft, or
(iii) sold to a qualified blood collector organization for its exclusive use in connection with a vehicle the organization certifies will be primarily used in the collection, storage, or transportation of blood.
(5) Return of certain installment accounts 
If
(A) tax was paid under section 4216 (d)(1) in respect of any installment account,
(B) such account is, under the agreement under which the account was sold, returned to the person who sold such account, and
(C) the consideration is readjusted as provided in such agreement,

the part of the tax paid under section 4216 (d)(1) allocable to the part of the consideration repaid or credited to the purchaser of such account shall be deemed to be an overpayment.

(6) Truck chassis, bodies, and semitrailers used for further manufacture 
If
(A) the tax imposed by section 4051 has been paid with respect to the sale of any article, and
(B) before any other use, such article is by any person used as a component part of another article taxable under section 4051 manufactured or produced by him, such tax shall be deemed to be an overpayment by such person. For purposes of the preceding sentence, an article shall be treated as having been used as a component part of another article if, had it not been broken or rendered useless in the manufacture or production of such other article, it would have been so used.

This subsection shall apply in respect of an article only if the exportation or use referred to in the applicable provision of this subsection occurs before any other use, or, in the case of a sale or resale, the use referred to in the applicable provision of this subsection is to occur before any other use.

(c) Refund to exporter or shipper 
Under regulations prescribed by the Secretary the amount of any tax imposed by chapter 31, or chapter 32 erroneously or illegally collected in respect of any article exported to a foreign country or shipped to a possession of the United States may be refunded to the exporter or shipper thereof, if the person who paid such tax waives his claim to such amount.
(d) Credit on returns 
Any person entitled to a refund of tax imposed by chapter 31 or 32, paid to the Secretary may, instead of filing a claim for refund, take credit therefor against taxes imposed by such chapter due on any subsequent return. The preceding sentence shall not apply to the tax imposed by section 4081 in the case of refunds described in section 4081 (e).
(e) Accounting procedures for like articles 
Under regulations prescribed by the Secretary, if any person uses or resells like articles, then for purposes of this section the manufacturer, producer, or importer of any such article may be identified, and the amount of tax paid under chapter 32 in respect of such article may be determined
(1) on a first-in-first-out basis,
(2) on a last-in-first-out basis, or
(3) in accordance with any other consistent method approved by the Secretary.
(f) Meaning of terms 
For purposes of this section, any term used in this section has the same meaning as when used in chapter 31, 32, or 33, as the case may be.

26 USC 6417 - Repealed. Pub. L. 94455, title XIX, 1906(a)(25), Oct. 4, 1976, 90 Stat. 1827]

Section, act Aug. 16, 1954, ch. 736, 68A Stat. 801, related to a tax credit or refund to any person who has sold to a State, or a political subdivision thereof, any article containing any oil, combination, or mixture, upon the processing of which a tax has been paid under former section 4511, and to a refund to the exporter of the tax paid under former subchapter B of chapter 37.

26 USC 6418 - Repealed. Pub. L. 101508, title XI, 11801(c)(22)(B)(i), Nov. 5, 1990, 104 Stat. 1388528]

Section, acts Aug. 16, 1954, ch. 736, 68A Stat. 801; May 29, 1956, ch. 342, 21(b), 70 Stat. 221; May 24, 1962, Pub. L. 87–456, title III, § 302(c), 76 Stat. 77; Nov. 8, 1965, Pub. L. 89–331, § 9(b), 79 Stat. 1278; Oct. 4, 1976, Pub. L. 94–455, title XIX, § 1906(b)(13)(A), 90 Stat. 1834, authorized refund of taxes paid on sugar used as livestock feed, for distillation or production of alcohol, or in certain cases where sugar was exported.

26 USC 6419 - Excise tax on wagering

(a) Credit or refund generally 
No overpayment of tax imposed by chapter 35 shall be credited or refunded (otherwise than under subsection (b)), in pursuance of a court decision or otherwise, unless the person who paid the tax establishes, in accordance with regulations prescribed by the Secretary,
(1)  that he has not collected (whether as a separate charge or otherwise) the amount of the tax from the person who placed the wager on which the tax was imposed, or
(2)  that he has repaid the amount of the tax to the person who placed such wager, or unless he files with the Secretary written consent of the person who placed such wager to the allowance of the credit or the making of the refund. In the case of any laid-off wager, no overpayment of tax imposed by chapter 35 shall be so credited or refunded to the person with whom such laid-off wager was placed unless he establishes, in accordance with regulations prescribed by the Secretary, that the provisions of the preceding sentence have been complied with both with respect to the person who placed the laid-off wager with him and with respect to the person who placed the original wager.
(b) Credit or refund on wagers laid-off by taxpayer 
Where any taxpayer lays off part or all of a wager with another person who is liable for tax imposed by chapter 35 on the amount so laid off, a credit against such tax shall be allowed, or a refund shall be made to, the taxpayer laying off such amount. Such credit or refund shall be in an amount which bears the same ratio to the amount of tax which such taxpayer paid on the original wager as the amount so laid off bears to the amount of the original wager. Credit or refund under this subsection shall be allowed or made only in accordance with regulations prescribed by the Secretary, and no interest shall be allowed with respect to any amount so credited or refunded.

26 USC 6420 - Gasoline used on farms

(a) Gasoline 
Except as provided in subsection (g), if gasoline is used on a farm for farming purposes, the Secretary shall pay (without interest) to the ultimate purchaser of such gasoline the amount determined by multiplying
(1) the number of gallons so used, by
(2) the rate of tax on gasoline under section 4081 which applied on the date he purchased such gasoline.
(b) Time for filing claims; period covered 
Not more than one claim may be filed under this section by any person with respect to gasoline used during his taxable year, and no claim shall be allowed under this section with respect to gasoline used during any taxable year unless filed by such person not later than the time prescribed by law for filing a claim for credit or refund of overpayment of income tax for such taxable year. For purposes of this subsection, a persons taxable year shall be his taxable year for purposes of subtitle A.
(c) Meaning of terms 
For purposes of this section
(1) Use on a farm for farming purposes 
Gasoline shall be treated as used on a farm for farming purposes only if used
(A)  in carrying on a trade or business,
(B)  on a farm situated in the United States, and
(C)  for farming purposes.
(2) Farm 
The term farm includes stock, dairy, poultry, fruit, fur-bearing animal, and truck farms, plantations, ranches, nurseries, ranges, greenhouses or other similar structures used primarily for the raising of agricultural or horticultural commodities, and orchards.
(3) Farming purposes 
Gasoline shall be treated as used for farming purposes only if used
(A) by the owner, tenant, or operator of a farm, in connection with cultivating the soil, or in connection with raising or harvesting any agricultural or horticultural commodity, including the raising, shearing, feeding, caring for, training, and management of livestock, bees, poultry, and fur-bearing animals and wildlife, on a farm of which he is the owner, tenant, or operator;
(B) by the owner, tenant, or operator of a farm, in handling, drying, packing, grading, or storing any agricultural or horticultural commodity in its unmanufactured state; but only if such owner, tenant or operator produced more than one-half of the commodity which he so treated during the period with respect to which claim is filed;
(C) by the owner, tenant, or operator of a farm, in connection with
(i) the planting, cultivating, caring for, or cutting of trees, or
(ii) the preparation (other than milling) of trees for market,

incidental to farming operations; or

(D) by the owner, tenant, or operator of a farm, in connection with the operation, management, conservation, improvement, or maintenance of such farm and its tools and equipment.
(4) Certain farming use other than by owner, etc. 
In applying paragraph (3)(A) to a use on a farm for any purpose described in paragraph (3)(A) by any person other than the owner, tenant, or operator of such farm
(A) the owner, tenant, or operator of such farm shall be treated as the user and ultimate purchaser of the gasoline, except that
(B) if the person so using the gasoline is an aerial or other applicator of fertilizers or other substances and is the ultimate purchaser of the gasoline, then subparagraph (A) of this paragraph shall not apply and the aerial or other applicator shall be treated as having used such gasoline on a farm for farming purposes.

In the case of an aerial applicator, gasoline shall be treated as used on a farm for farming purposes if the gasoline is used for the direct flight between the airfield and one or more farms.

(5) Gasoline 
The term gasoline has the meaning given to such term by section 4083 (a).
(d) Exempt sales; other payments or refunds available 
No amount shall be payable under this section with respect to any gasoline which the Secretary determines was exempt from the tax imposed by section 4081. The amount which (but for this sentence) would be payable under this section with respect to any gasoline shall be reduced by any other amount which the Secretary determines is payable under this section, or is refundable under any provision of this title, to any person with respect to such gasoline.
(e) Applicable laws 

(1) In general 
All provisions of law, including penalties, applicable in respect of the tax imposed by section 4081 shall, insofar as applicable and not inconsistent with this section, apply in respect of the payments provided for in this section to the same extent as if such payments constituted refunds of overpayments of the tax so imposed.
(2) Examination of books and witnesses 
For the purpose of ascertaining the correctness of any claim made under this section, or the correctness of any payment made in respect of any such claim, the Secretary shall have the authority granted by paragraphs (1), (2), and (3) of section 7602 (a) (relating to examination of books and witnesses) as if the claimant were the person liable for tax.
(3) Fractional parts of a dollar 
Section 7504 (granting the Secretary discretion with respect to fractional parts of a dollar) shall not apply.
(f) Regulations 
The Secretary may by regulations prescribe the conditions, not inconsistent with the provisions of this section, under which payments may by made under this section.
(g) Income tax credit in lieu of payment 

(1) Persons not subject to income tax 
Payment shall be made under subsection (a), only to
(A) the United States or an agency or instrumentality thereof, a State, a political subdivision of a State, or an agency or instrumentality of one or more States or political subdivisions, or
(B) an organization exempt from tax under section 501 (a) (other than an organization required to make a return of the tax imposed under subtitle A for its taxable year).
(2) Allowance of credit against income tax 
For allowance of credit against the tax imposed by subtitle A, see section 34.
[(h) Repealed. Pub. L. 103–66, title XIII, § 13241(f)(5), Aug. 10, 1993, 107 Stat. 512] 
(i) Cross references 

(1) For exemption from tax in case of special fuels used on a farm for farming purposes, see section 4041 (f).
(2) For civil penalty for excessive claim under this section, see section 6675.
(3) For fraud penalties, etc., see chapter 75 (section 7201 and following, relating to crimes, other offenses, and forfeitures).
(4) For treatment of an Indian tribal government as a State and[1] a subdivision of an Indian tribal government as a political subdivision of a State), see section 7871.
[1] So in original. Probably should be “(and”.

26 USC 6421 - Gasoline used for certain nonhighway purposes, used by local transit systems, or sold for certain exempt purposes

(a) Nonhighway uses 
Except as provided in subsection (i), if gasoline is used in an off-highway business use, the Secretary shall pay (without interest) to the ultimate purchaser of such gasoline an amount equal to the amount determined by multiplying the number of gallons so used by the rate at which tax was imposed on such gasoline under section 4081. Except as provided in paragraph (2) of subsection (f) of this section, in the case of gasoline used as a fuel in an aircraft, the Secretary shall pay (without interest) to the ultimate purchaser of such gasoline an amount equal to the amount determined by multiplying the number of gallons of gasoline so used by the rate at which tax was imposed on such gasoline under section 4081.
(b) Intercity, local, or school buses 

(1) Allowance 
Except as provided in paragraph (2) and subsection (i), if gasoline is used in an automobile bus while engaged in
(A) furnishing (for compensation) passenger land transportation available to the general public, or
(B) the transportation of students and employees of schools (as defined in the last sentence of section 4221 (d)(7)(C)),

the Secretary shall pay (without interest) to the ultimate purchaser of such gasoline an amount equal to the product of the number of gallons of gasoline so used multiplied by the rate at which tax was imposed on such gasoline by section 4081.

(2) Limitation in case of nonscheduled intercity or local buses 
Paragraph (1)(A) shall not apply in respect of gasoline used in any automobile bus while engaged in furnishing transportation which is not scheduled and not along regular routes unless the seating capacity of such bus is at least 20 adults (not including the driver).
(c) Exempt purposes 
If gasoline is sold to any person for any purpose described in paragraph (2), (3), (4)[1] (5), or (6) of section 4221 (a), the Secretary shall pay (without interest) to such person an amount equal to the product of the number of gallons of gasoline so sold multiplied by the rate at which tax was imposed on such gasoline by section 4081. The preceding sentence shall apply notwithstanding paragraphs (2) and (3) of subsection (f). Subsection (a) shall not apply to gasoline to which this subsection applies.
(d) Time for filing claims; period covered 

(1) In general 
Except as provided in paragraph (2), not more than one claim may be filed under subsection (a), not more than one claim may be filed under subsection (b), and not more than one claim may be filed under subsection (c), by any person with respect to gasoline used during his taxable year; and no claim shall be allowed under this paragraph with respect to gasoline used during any taxable year unless filed by such person not later than the time prescribed by law for filing a claim for credit or refund of overpayment of income tax for such taxable year. For purposes of this subsection, a persons taxable year shall be his taxable year for purposes of subtitle A.
(2) Exception 
For payments per quarter based on aggregate amounts payable under this section and section 6427, see section 6427 (i)(2).
(3) Application to sales under subsection (c) 
For purposes of this subsection, gasoline shall be treated as used for a purpose referred to in subsection (c) when it is sold for such a purpose.
(e) Definitions 
For purposes of this section
(1) Gasoline 
The term gasoline has the meaning given to such term by section 4083 (a).
(2) Off-highway business use 

(A) In general 
The term off-highway business use means any use by a person in a trade or business of such person or in an activity of such person described in section 212 (relating to production of income) otherwise than as a fuel in a highway vehicle
(i) which (at the time of such use), is registered, or is required to be registered, for highway use under the laws of any State or foreign country, or
(ii) which, in the case of a highway vehicle owned by the United States, is used on the highway.
(B) Uses in boats 

(i) In general Except as otherwise provided in this subparagraph, the term off-highway business use does not include any use in a motorboat.
(ii) Fisheries and whaling The term off-highway business use shall include any use in a vessel employed in the fisheries or in the whaling business.
(C) Uses in mobile machinery 

(i) In general The term off-highway business use shall include any use in a vehicle which meets the requirements described in clause (ii).
(ii) Requirements for mobile machinery The requirements described in this clause are
(I) the design-based test, and
(II) the use-based test.
(iii) Design-based test For purposes of clause (ii)(I), the design-based test is met if the vehicle consists of a chassis
(I) to which there has been permanently mounted (by welding, bolting, riveting, or other means) machinery or equipment to perform a construction, manufacturing, processing, farming, mining, drilling, timbering, or similar operation if the operation of the machinery or equipment is unrelated to transportation on or off the public highways,
(II) which has been specially designed to serve only as a mobile carriage and mount (and a power source, where applicable) for the particular machinery or equipment involved, whether or not such machinery or equipment is in operation, and
(III) which, by reason of such special design, could not, without substantial structural modification, be used as a component of a vehicle designed to perform a function of transporting any load other than that particular machinery or equipment or similar machinery or equipment requiring such a specially designed chassis.
(iv) Use-based test For purposes of clause (ii)(II), the use-based test is met if the use of the vehicle on public highways was less than 7,500 miles during the taxpayers taxable year. This clause shall be applied without regard to use of the vehicle by any organization which is described in section 501 (c) and exempt from tax under section 501 (a).
(f) Exempt sales; other payments or refunds available 

(1) Gasoline used on farms 
This section shall not apply in respect of gasoline which was (within the meaning of paragraphs (1), (2), and (3) of section 6420 (c)) used on a farm for farming purposes.
(2) Gasoline used in aviation 
This section shall not apply in respect of gasoline which is used as a fuel in an aircraft
(A) in aviation which is not commercial aviation (as defined in section 4083 (b)), or
(B) in commercial aviation (as so defined) with respect to the tax imposed by section 4081 at the Leaking Underground Storage Tank Trust Fund financing rate and, in the case of fuel purchased after September 30, 1995, at so much of the rate specified in section 4081 (a)(2)(A) as does not exceed 4.3 cents per gallon.
(3) Gasoline used in trains 
In the case of gasoline used as a fuel in a train, this section shall not apply with respect to
(A) the Leaking Underground Storage Tank Trust Fund financing rate under section 4081, and
(B) so much of the rate specified in section 4081 (a)(2)(A) as does not exceed the rate applicable under section 4041 (a)(1)(C)(ii).
(g) Applicable laws 

(1) In general 
All provisions of law, including penalties, applicable in respect to the tax imposed by section 4081 shall, insofar as applicable and not inconsistent with this section, apply in respect of the payments provided for in this section to the same extent as if such payments constituted refunds of overpayments of the tax so imposed.
(2) Examination of books and witnesses 
For the purpose of ascertaining the correctness of any claim made under this section, or the correctness of any payment made in respect of any such claim, the Secretary shall have the authority granted by paragraphs (1), (2), and (3) of section 7602 (a) (relating to examination of books and witnesses) as if the claimant were the person liable for tax.
(h) Regulations 
The Secretary may by regulations prescribe the conditions, not inconsistent with the provisions of this section, under which payments may be made under this section.
(i) Income tax credit in lieu of payment 

(1) Persons not subject to income tax 
Payment shall be made under subsections (a) and (b) only to
(A) the United States or any agency or instrumentality thereof, a State, a political subdivision of a State, or any agency or instrumentality of one or more States or political subdivisions, or
(B) an organization exempt from tax under section 501 (a) (other than an organization required to make a return of the tax imposed under subtitle A for its taxable year).
(2) Exception 
Paragraph (1) shall not apply to a payment of a claim filed under subsection (d)(2).
(3) Allowance of credit against income tax 
For allowance of credit against the tax imposed by subtitle A, see section 34.
(j) Cross references 

(1) For civil penalty for excessive claims under this section, see section 6675.
(2) For fraud penalties, etc., see chapter 75 (section 7201 and following, relating to crimes, other offenses, and forfeitures).
(3) For treatment of an Indian tribal government as a State and[2] a subdivision of an Indian tribal government as a political subdivision of a State), see section 7871.
[1] So in original. Probably should be followed by a comma.
[2] So in original. Probably should be “(and”.

26 USC 6422 - Cross references

(1) For limitations on credits and refunds, see subchapter B of chapter 66.
(2) For overpayment in case of adjustments to accrued foreign taxes, see section 905 (c).
(3) For credit or refund in case of deficiency dividends paid by a personal holding company, see section 547.
(4) For refund, credit, or abatement of amounts disallowed by courts upon review of Tax Court decision, see section 7486.
(5) For refund or redemption of stamps, see chapter 69.
(6) For abatement, credit, or refund in case of jeopardy assessments, see chapter 70.
(7) For treatment of certain overpayments as having been refunded, in connection with sale of surplus war-built vessels, see section 9(b)(8) of the Merchant Ship Sales Act of 1946 (50 App. U.S.C. 1742).
(8) For restrictions on transfers and assignments of claims against the United States, see section 3727 of title 31, United States Code.
(9) For set-off of claims against amounts due the United States, see section 3728 of title 31, United States Code.
(10) For special provisions relating to alcohol and tobacco taxes, see subtitle E.
(11) for[1] credit or refund in case of deficiency dividends paid by a regulated investment company or real estate investment trust, see section 860.
(12) For special rules in the case of a credit or refund attributable to partnership items, see section 6227 and subsections (c) and (d) of section 6230.
[1] So in original. Probably should be capitalized.

26 USC 6423 - Conditions to allowance in the case of alcohol and tobacco taxes

(a) Conditions 
No credit or refund shall be allowed or made, in pursuance of a court decision or otherwise, of any amount paid or collected as an alcohol or tobacco tax unless the claimant establishes (under regulations prescribed by the Secretary)
(1) that he bore the ultimate burden of the amount claimed; or
(2) that he has unconditionally repaid the amount claimed to the person who bore the ultimate burden of such amount; or
(3) that
(A)  the owner of the commodity furnished him the amount claimed for payment of the tax,
(B)  he has filed with the Secretary the written consent of such owner to the allowance to the claimant of the credit or refund, and
(C)  such owner satisfies the requirements of paragraph (1) or (2).
(b) Filing of claims 
No credit or refund of any amount to which subsection (a) applies shall be allowed or made unless a claim therefor has been filed by the person who paid the amount claimed, and unless such claim is filed within the time prescribed by law and in accordance with regulations prescribed by the Secretary. All evidence relied upon in support of such claim shall be clearly set forth and submitted with the claim.
(c) Application of section 
This section shall apply only if the credit or refund is claimed on the grounds that an amount of alcohol or tobacco tax was assessed or collected erroneously, illegally, without authority, or in any manner wrongfully, or on the grounds that such amount was excessive. This section shall not apply to
(1) any claim for drawback, and
(2) any claim made in accordance with any law expressly providing for credit or refund where a commodity is withdrawn from the market, returned to bond, or lost or destroyed.
(d) Meaning of terms 
For purposes of this section
(1) Alcohol or tobacco tax 
The term alcohol or tobacco tax means
(A) any tax imposed by chapter 51 (other than part II of subchapter A, relating to occupational taxes) or by chapter 52 or by any corresponding provision of prior internal revenue laws, and
(B) in the case of any commodity of a kind subject to a tax described in subparagraph (A), any tax equal to any such tax, any additional tax, or any floor stocks tax.
(2) Tax 
The term tax includes a tax and an exaction denominated a tax, and any penalty, addition to tax, additional amount, or interest applicable to any such tax.
(3) Ultimate burden 
The claimant shall be treated as having borne the ultimate burden of an amount of an alcohol or tobacco tax for purposes of subsection (a)(1), and the owner referred to in subsection (a)(3) shall be treated as having borne such burden for purposes of such subsection, only if
(A) he has not, directly or indirectly, been relieved of such burden or shifted such burden to any other person,
(B) no understanding or agreement exists for any such relief or shifting, and
(C) if he has neither sold nor contracted to sell the commodities involved in such claim, he agrees that there will be no such relief or shifting, and furnishes such bond as the Secretary may require to insure faithful compliance with his agreement.

26 USC 6424 - Repealed. Pub. L. 97424, title V, 515(b)(5), Jan. 6, 1983, 96 Stat. 2181]

Section, added Pub. L. 89–44, title II, § 202(b), June 21, 1965, 79 Stat. 137; amended Pub. L. 91–258, title II, § 207(b), May 21, 1970, 84 Stat. 248; Pub. L. 94–455, title XIX, § 1906(a)(30), (b)(13)(A), Oct. 4, 1976, 90 Stat. 1828, 1834; Pub. L. 95–618, title II, §§ 222(a)(3), 233 (b)(1), (2)(A), Nov. 9, 1978, 92 Stat. 3187, 3191; Pub. L. 97–473, title II, § 202(b)(13), Jan. 14, 1983, 96 Stat. 2610, had provided for payments by the Secretary of an amount equal to 6 cents for each gallon of lubricating oil used in a qualified business use or in a qualified bus to certain ultimate purchasers of the lubricating oil.

26 USC 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.

26 USC 6426 - Credit for alcohol fuel, biodiesel, and alternative fuel mixtures

(a) Allowance of credits 
There shall be allowed as a credit
(1) against the tax imposed by section 4081 an amount equal to the sum of the credits described in subsections (b), (c), and (e), and
(2) against the tax imposed by section 4041 an amount equal to the sum of the credits described in subsection (d).

No credit shall be allowed in the case of the credits described in subsections (d) and (e) unless the taxpayer is registered under section 4101.

(b) Alcohol fuel mixture credit 

(1) In general 
For purposes of this section, the alcohol fuel mixture credit is the product of the applicable amount and the number of gallons of alcohol used by the taxpayer in producing any alcohol fuel mixture for sale or use in a trade or business of the taxpayer.
(2) Applicable amount 
For purposes of this subsection
(A) In general 
Except as provided in subparagraph (B), the applicable amount is 51 cents.
(B) Mixtures not containing ethanol 
In the case of an alcohol fuel mixture in which none of the alcohol consists of ethanol, the applicable amount is 60 cents.
(3) Alcohol fuel mixture 
For purposes of this subsection, the term alcohol fuel mixture means a mixture of alcohol and a taxable fuel which
(A) is sold by the taxpayer producing such mixture to any person for use as a fuel, or
(B) is used as a fuel by the taxpayer producing such mixture.

For purposes of subparagraph (A), a mixture produced by any person at a refinery prior to a taxable event which includes ethyl tertiary butyl ether or other ethers produced from alcohol shall be treated as sold at the time of its removal from the refinery (and only at such time) to another person for use as a fuel.

(4) Other definitions 
For purposes of this subsection
(A) Alcohol 
The term alcohol includes methanol and ethanol but does not include
(i) alcohol produced from petroleum, natural gas, or coal (including peat), or
(ii) alcohol with a proof of less than 190 (determined without regard to any added denaturants).

Such term also includes an alcohol gallon equivalent of ethyl tertiary butyl ether or other ethers produced from such alcohol.

(B) Taxable fuel 
The term taxable fuel has the meaning given such term by section 4083 (a)(1).
(5) Termination 
This subsection shall not apply to any sale, use, or removal for any period after December 31, 2010.
(c) Biodiesel mixture credit 

(1) In general 
For purposes of this section, the biodiesel mixture credit is the product of the applicable amount and the number of gallons of biodiesel used by the taxpayer in producing any biodiesel mixture for sale or use in a trade or business of the taxpayer.
(2) Applicable amount 
For purposes of this subsection
(A) In general 
Except as provided in subparagraph (B), the applicable amount is 50 cents.
(B) Amount for agri-biodiesel 
In the case of any biodiesel which is agri-biodiesel, the applicable amount is $1.00.
(3) Biodiesel mixture 
For purposes of this section, the term biodiesel mixture means a mixture of biodiesel and diesel fuel (as defined in section 4083 (a)(3)), determined without regard to any use of kerosene, which
(A) is sold by the taxpayer producing such mixture to any person for use as a fuel, or
(B) is used as a fuel by the taxpayer producing such mixture.
(4) Certification for biodiesel 
No credit shall be allowed under this subsection unless the taxpayer obtains a certification (in such form and manner as prescribed by the Secretary) from the producer of the biodiesel which identifies the product produced and the percentage of biodiesel and agri-biodiesel in the product.
(5) Other definitions 
Any term used in this subsection which is also used in section 40A shall have the meaning given such term by section 40A.
(6) Termination 
This subsection shall not apply to any sale, use, or removal for any period after December 31, 2008.
(d) Alternative fuel credit 

(1) In general 
For purposes of this section, the alternative fuel credit is the product of 50 cents and the number of gallons of an alternative fuel or gasoline gallon equivalents of a nonliquid alternative fuel sold by the taxpayer for use as a fuel in a motor vehicle or motorboat, or so used by the taxpayer.
(2) Alternative fuel 
For purposes of this section, the term alternative fuel means
(A) liquefied petroleum gas,
(B) P Series Fuels (as defined by the Secretary of Energy under section 13211 (2) of title 42, United States Code),
(C) compressed or liquefied natural gas,
(D) liquefied hydrogen,
(E) any liquid fuel derived from coal (including peat) through the Fischer-Tropsch process, and
(F) liquid fuel derived from biomass (as defined in section 45K (c)(3)).

Such term does not include ethanol, methanol, or biodiesel.

(3) Gasoline gallon equivalent 
For purposes of this subsection, the term gasoline gallon equivalent means, with respect to any nonliquid alternative fuel, the amount of such fuel having a Btu content of 124,800 (higher heating value).
(4) Termination 
This subsection shall not apply to any sale or use for any period after September 30, 2009 (September 30, 2014, in the case of any sale or use involving liquefied hydrogen).
(e) Alternative fuel mixture credit 

(1) In general 
For purposes of this section, the alternative fuel mixture credit is the product of 50 cents and the number of gallons of alternative fuel used by the taxpayer in producing any alternative fuel mixture for sale or use in a trade or business of the taxpayer.
(2) Alternative fuel mixture 
For purposes of this section, the term alternative fuel mixture means a mixture of alternative fuel and taxable fuel (as defined in subparagraph (A), (B), or (C) of section 4083 (a)(1)) which
(A) is sold by the taxpayer producing such mixture to any person for use as fuel, or
(B) is used as a fuel by the taxpayer producing such mixture.
(3) Termination 
This subsection shall not apply to any sale or use for any period after September 30, 2009 (September 30, 2014, in the case of any sale or use involving liquefied hydrogen).
(f) Mixture not used as a fuel, etc. 

(1) Imposition of tax 
If
(A) any credit was determined under this section with respect to alcohol or biodiesel used in the production of any alcohol fuel mixture or biodiesel mixture, respectively, and
(B) any person
(i) separates the alcohol or biodiesel from the mixture, or
(ii) without separation, uses the mixture other than as a fuel,

then there is hereby imposed on such person a tax equal to the product of the applicable amount and the number of gallons of such alcohol or biodiesel.

(2) Applicable laws 
All provisions of law, including penalties, shall, insofar as applicable and not inconsistent with this section, apply in respect of any tax imposed under paragraph (1) as if such tax were imposed by section 4081 and not by this section.
(g) Coordination with exemption from excise tax 
Rules similar to the rules under section 40 (c) shall apply for purposes of this section.
(h) Denial of double benefit 
No credit shall be determined under subsection (d) or (e) with respect to any fuel with respect to which credit may be determined under subsection (b) or (c) or under section 40 or 40A.

26 USC 6427 - Fuels not used for taxable purposes

(a) Nontaxable uses 
Except as provided in subsection (k), if tax has been imposed under paragraph (2) or (3) of section 4041 (a) or section 4041 (c) on the sale of any fuel and the purchaser uses such fuel other than for the use for which sold, or resells such fuel, the Secretary shall pay (without interest) to him an amount equal to
(1) the amount of tax imposed on the sale of the fuel to him, reduced by
(2) if he uses the fuel, the amount of tax which would have been imposed under section 4041 on such use if no tax under section 4041 had been imposed on the sale of the fuel.
(b) Intercity, local, or school buses 

(1) Allowance 
Except as otherwise provided in this subsection and subsection (k), if any fuel other than gasoline (as defined in section 4083 (a)) on the sale of which tax was imposed by section 4041 (a) or 4081 is used in an automobile bus while engaged in
(A) furnishing (for compensation) passenger land transportation available to the general public, or
(B) the transportation of students and employees of schools (as defined in the last sentence of section 4221 (d)(7)(C)),

the Secretary shall pay (without interest) to the ultimate purchaser of such fuel an amount equal to the product of the number of gallons of such fuel so used multiplied by the rate at which tax was imposed on such fuel by section 4041 (a) or 4081, as the case may be.

(2) Reduction in refund in certain cases 

(A) In general 
Except as provided in subparagraphs (B) and (C), the rate of tax taken into account under paragraph (1) shall be 7.4 cents per gallon less than the aggregate rate at which tax was imposed on such fuel by section 4041 (a) or 4081, as the case may be.
(B) Exception for school bus transportation 
Subparagraph (A) shall not apply to fuel used in an automobile bus while engaged in the transportation described in paragraph (1)(B).
(C) Exception for certain intracity transportation 
Subparagraph (A) shall not apply to fuel used in any automobile bus while engaged in furnishing (for compensation) intracity passenger land transportation
(i) which is available to the general public, and
(ii) which is scheduled and along regular routes,

but only if such bus is a qualified local bus.

(D) Qualified local bus 
For purposes of this paragraph, the term qualified local bus means any local bus
(i) which has a seating capacity of at least 20 adults (not including the driver), and
(ii) which is under contract (or is receiving more than a nominal subsidy) from any State or local government (as defined in section 4221 (d)) to furnish such transportation.
(3) Limitation in case of nonscheduled intercity or local buses 
Paragraph (1)(A) shall not apply in respect of fuel used in any automobile bus while engaged in furnishing transportation which is not scheduled and not along regular routes unless the seating capacity of such bus is at least 20 adults (not including the driver).
(4) Refunds for use of diesel fuel in certain intercity buses 
With respect to any fuel to which paragraph (2)(A) applies, if the ultimate purchaser of such fuel waives (at such time and in such form and manner as the Secretary shall prescribe) the right to payment under paragraph (1) and assigns such right to the ultimate vendor, then the Secretary shall pay the amount which would be paid under paragraph (1) to such ultimate vendor, but only if such ultimate vendor
(A) is registered under section 4101, and
(B) meets the requirements of subparagraph (A), (B), or (D) of section 6416 (a)(1).
(c) Use for farming purposes 
Except as provided in subsection (k), if any fuel on the sale of which tax was imposed under paragraph (2) or (3) of section 4041 (a) or section 4041 (c) is used on a farm for farming purposes (within the meaning of section 6420 (c)), the Secretary shall pay (without interest) to the purchaser an amount equal to the amount of the tax imposed on the sale of the fuel. For purposes of this subsection, if fuel is used on a farm by any person other than the owner, tenant, or operator of such farm, the rules of paragraph (4) of section 6420 (c) shall be applied (except that liquid taxable under section 4041 shall be substituted for gasoline each place it appears in such paragraph (4)).
(d) Use by certain aircraft museums or in certain other aircraft uses 
Except as provided in subsection (k), if
(1) any gasoline on which tax was imposed by section 4081, or
(2) any fuel on the sale of which tax was imposed under section 4041,

is used by an aircraft museum (as defined in section 4041 (h)(2)) in an aircraft or vehicle owned by such museum and used exclusively for purposes set forth in section 4041 (h)(2)(C), or is used in a helicopter or a fixed-wing aircraft for a purpose described in section 4041 (l), the Secretary shall pay (without interest) to the ultimate purchaser of such gasoline or fuel an amount equal to the aggregate amount of the tax imposed on such gasoline or fuel.

(e) Alcohol, biodiesel, or alternative fuel 
Except as provided in subsection (k)
(1) Used to produce a mixture 
If any person produces a mixture described in section 6426 in such persons trade or business, the Secretary shall pay (without interest) to such person an amount equal to the alcohol fuel mixture credit or the biodiesel mixture credit or the alternative fuel mixture credit with respect to such mixture.
(2) Alternative fuel 
If any person sells or uses an alternative fuel (as defined in section 6426 (d)(2)) for a purpose described in section 6426 (d)(1) in such persons trade or business, the Secretary shall pay (without interest) to such person an amount equal to the alternative fuel credit with respect to such fuel.
(3) Coordination with other repayment provisions 
No amount shall be payable under paragraph (1) or (2) with respect to any mixture or alternative fuel with respect to which an amount is allowed as a credit under section 6426.
(4) Registration requirement for alternative fuels 
The Secretary shall not make any payment under this subsection to any person with respect to any alternative fuel credit or alternative fuel mixture credit unless the person is registered under section 4101.
(5) Termination 
This subsection shall not apply with respect to
(A) any alcohol fuel mixture (as defined in section 6426 (b)(3)) sold or used after December 31, 2010,
(B) any biodiesel mixture (as defined in section 6426 (c)(3)) sold or used after December 31, 2008,
(C) except as provided in subparagraph (D), any alternative fuel or alternative fuel mixture (as defined in subsection (d)(2) or (e)(3) of section 6426) sold or used after September 30, 2009, and
(D) any alternative fuel or alternative fuel mixture (as so defined) involving liquefied hydrogen sold or used after September 30, 2014.
[(f) Repealed. Pub. L. 109–59, title XI, § 11151(a)(1), Aug. 10, 2005, 119 Stat. 1968] 
[(g) Repealed. Pub. L. 104–188, title I, § 1606(a), Aug. 20, 1996, 110 Stat. 1839] 
(h) Blend stocks not used for producing taxable fuel 

(1) Gasoline blend stocks or additives not used for producing gasoline 
Except as provided in subsection (k), if any gasoline blend stock or additive (within the meaning of section 4083 (a)(2)) is not used by any person to produce gasoline and such person establishes that the ultimate use of such gasoline blend stock or additive is not to produce gasoline, the Secretary shall pay (without interest) to such person an amount equal to the aggregate amount of the tax imposed on such person with respect to such gasoline blend stock or additive.
(2) Diesel fuel blend stocks or additives not used for producing diesel 
Except as provided in subsection (k), if any diesel fuel blend stock is not used by any person to produce diesel fuel and such person establishes that the ultimate use of such diesel fuel blend stock is not to produce diesel fuel, the Secretary shall pay (without interest) to such person an amount equal to the aggregate amount of the tax imposed on such person with respect to such diesel fuel blend stock.
(i) Time for filing claims; period covered 

(1) General rule 
Except as otherwise provided in this subsection, not more than one claim may be filed under subsection (a), (b), (c), (d), (h), (l), (m), or (o) by any person with respect to fuel used during his taxable year; and no claim shall be allowed under this paragraph with respect to fuel used during any taxable year unless filed by the purchaser not later than the time prescribed by law for filing a claim for credit or refund of overpayment of income tax for such taxable year. For purposes of this paragraph, a persons taxable year shall be his taxable year for purposes of subtitle A.
(2) Exceptions 

(A) In general 
If, at the close of any quarter of the taxable year of any person, at least $750 is payable in the aggregate under subsections (a), (b), (d), (h), (l), (m), and (o) of this section and section 6421 to such person with respect to fuel used during
(i) such quarter, or
(ii) any prior quarter (for which no other claim has been filed) during such taxable year,

a claim may be filed under this section with respect to such fuel.

(B) Time for filing claim 
No claim filed under this paragraph shall be allowed unless filed during the first quarter following the last quarter included in the claim.
(C) Nonapplication of paragraph 
This paragraph shall not apply to any fuel used solely in any off-highway business use described in section 6421 (e)(2)(C).
(3) Special rule for mixture credits and the alternative fuel credit 

(A) In general 
A claim may be filed under subsection (e)(1) by any person with respect to a mixture described in section 6426 or under subsection (e)(2) by any person with respect to an alternative fuel (as defined in section 6426 (d)(2)) for any period
(i) for which $200 or more is payable under such subsection (e)(1) or (e)(2), and
(ii) which is not less than 1 week.

In the case of an electronic claim, this subparagraph shall be applied without regard to clause (i).

(B) Payment of claim 
Notwithstanding subsection (e)(1) or (e)(2), if the Secretary has not paid pursuant to a claim filed under this section within 45 days of the date of the filing of such claim (20 days in the case of an electronic claim), the claim shall be paid with interest from such date determined by using the overpayment rate and method under section 6621.
(C) Time for filing claim 
No claim filed under this paragraph shall be allowed unless filed on or before the last day of the first quarter following the earliest quarter included in the claim.
(4) Special rule for vendor refunds 

(A) In general 
A claim may be filed under paragraph (4)(C) or (5) of subsection (l) by any person with respect to fuel sold by such person for any period
(i) for which $200 or more ($100 or more in the case of kerosene) is payable under paragraph (4)(C) or (5) of subsection (l), and
(ii) which is not less than 1 week.

Notwithstanding subsection (l)(1), paragraph (3)(B) shall apply to claims filed under subsections (b)(4), (l)(4)(C)(ii), and (l)(5).

(B) Time for filing claim 
No claim filed under this paragraph shall be allowed unless filed on or before the last day of the first quarter following the earliest quarter included in the claim.
(j) Applicable laws 

(1) In general 
All provisions of law, including penalties, applicable in respect of the taxes imposed by sections 4041 and 4081 shall, insofar as applicable and not inconsistent with this section, apply in respect of the payments provided for in this section to the same extent as if such payments constituted refunds of overpayments of the tax so imposed.
(2) Examination of books and witnesses 
For the purpose of ascertaining the correctness of any claim made under this section, or the correctness of any payment made in respect of any such claim, the Secretary shall have the authority granted by paragraphs (1), (2), and (3) of section 7602 (a) (relating to examination of books and witnesses) as if the claimant were the person liable for tax.
(k) Income tax credit in lieu of payment 

(1) Persons not subject to income tax 
Payment shall be made under this section only to
(A) the United States or an agency or instrumentality thereof, a State, a political subdivision of a State, or any agency or instrumentality of one or more States or political subdivisions, or
(B) an organization exempt from tax under section 501 (a) (other than an organization required to make a return of the tax imposed under subtitle A for its taxable year).
(2) Exception 
Paragraph (1) shall not apply to a payment of a claim filed under paragraph (2), (3), or (4) of subsection (i).
(3) Allowance of credit against income tax 
For allowances of credit against the income tax imposed by subtitle A for fuel used or resold by the purchaser, see section 34.
(l) Nontaxable uses of diesel fuel and kerosene 

(1) In general 
Except as otherwise provided in this subsection and in subsection (k), if any diesel fuel or kerosene on which tax has been imposed by section 4041 or 4081 is used by any person in a nontaxable use, the Secretary shall pay (without interest) to the ultimate purchaser of such fuel an amount equal to the aggregate amount of tax imposed on such fuel under section 4041 or 4081, as the case may be, reduced by any payment made to the ultimate vendor under paragraph (4)(C)(i).
(2) Nontaxable use 
For purposes of this subsection, the term nontaxable use means any use which is exempt from the tax imposed by section 4041 (a)(1) other than by reason of a prior imposition of tax.
(3) Refund of certain taxes on fuel used in diesel-powered trains 
For purposes of this subsection, the term nontaxable use includes fuel used in a diesel-powered train. The preceding sentence shall not apply with respect to
(A) the Leaking Underground Storage Tank Trust Fund financing rate under sections 4041 and 4081, and
(B) so much of the rate specified in section 4081 (a)(2)(A) as does not exceed the rate applicable under section 4041 (a)(1)(C)(ii).

The preceding sentence shall not apply in the case of fuel sold for exclusive use by a State or any political subdivision thereof.

(4) Refunds for kerosene used in aviation 

(A) Kerosene used in commercial aviation 
In the case of kerosene used in commercial aviation (as defined in section 4083 (b)) (other than supplies for vessels or aircraft within the meaning of section 4221 (d)(3)), paragraph (1) shall not apply to so much of the tax imposed by section 4041 or 4081, as the case may be, as is attributable to
(i) the Leaking Underground Storage Tank Trust Fund financing rate imposed by such section, and
(ii) so much of the rate of tax specified in section 4041 (c) or 4081 (a)(2)(A)(iii), as the case may be, as does not exceed 4.3 cents per gallon.
(B) Kerosene used in noncommercial aviation 
In the case of kerosene used in aviation that is not commercial aviation (as so defined) (other than any use which is exempt from the tax imposed by section 4041 (c) other than by reason of a prior imposition of tax), paragraph (1) shall not apply to
(i) any tax imposed by subsection (c) or (d)(2) of section 4041, and
(ii) so much of the tax imposed by section 4081 as is attributable to
(I) the Leaking Underground Storage Tank Trust Fund financing rate imposed by such section, and
(II) so much of the rate of tax specified in section 4081 (a)(2)(A)(iii) as does not exceed the rate specified in section 4081 (a)(2)(C)(ii).
(C) Payments to ultimate, registered vendor 

(i) In general With respect to any kerosene used in aviation (other than kerosene described in clause (ii) or kerosene to which paragraph (5) applies), if the ultimate purchaser of such kerosene waives (at such time and in such form and manner as the Secretary shall prescribe) the right to payment under paragraph (1) and assigns such right to the ultimate vendor, then the Secretary shall pay the amount which would be paid under paragraph (1) to such ultimate vendor, but only if such ultimate vendor
(I) is registered under section 4101, and
(II) meets the requirements of subparagraph (A), (B), or (D) of section 6416 (a)(1).
(ii) Payments for kerosene used in noncommercial aviation The amount which would be paid under paragraph (1) with respect to any kerosene to which subparagraph (B) applies shall be paid only to the ultimate vendor of such kerosene. A payment shall be made to such vendor if such vendor
(I) is registered under section 4101, and
(II) meets the requirements of subparagraph (A), (B), or (D) of section 6416 (a)(1).
(5) Registered vendors to administer claims for refund of diesel fuel or kerosene sold to State and local governments 

(A) In general 
Paragraph (1) shall not apply to diesel fuel or kerosene used by a State or local government.
(B) Sales of kerosene not for use in motor fuel 
Paragraph (1) shall not apply to kerosene (other than kerosene used in aviation) sold by a vendor
(i) for any use if such sale is from a pump which (as determined under regulations prescribed by the Secretary) is not suitable for use in fueling any diesel-powered highway vehicle or train, or
(ii) to the extent provided by the Secretary, for blending with heating oil to be used during periods of extreme or unseasonable cold.
(C) Payment to ultimate, registered vendor 
Except as provided in subparagraph (D), the amount which would (but for subparagraph (A) or (B)) have been paid under paragraph (1) with respect to any fuel shall be paid to the ultimate vendor of such fuel, if such vendor
(i) is registered under section 4101, and
(ii) meets the requirements of subparagraph (A), (B), or (D) of section 6416 (a)(1).
(D) Credit card issuer 
For purposes of this paragraph, if the purchase of any fuel described in subparagraph (A) (determined without regard to the registration status of the ultimate vendor) is made by means of a credit card issued to the ultimate purchaser, the Secretary shall pay to the person extending the credit to the ultimate purchaser the amount which would have been paid under paragraph (1) (but for subparagraph (A)), but only if such person meets the requirements of clauses (i), (ii), and (iii) of section 6416 (a)(4)(B). If such clause (i), (ii), or (iii) is not met by such person extending the credit to the ultimate purchaser, then such person shall collect an amount equal to the tax from the ultimate purchaser and only such ultimate purchaser may claim such amount.
(m) Diesel fuel used to produce emulsion 

(1) In general 
Except as provided in subsection (k), if any diesel fuel on which tax was imposed by section 4081 at the regular tax rate is used by any person in producing an emulsion described in section 4081 (a)(2)(D) which is sold or used in such persons trade or business, the Secretary shall pay (without interest) to such person an amount equal to the excess of the regular tax rate over the incentive tax rate with respect to such fuel.
(2) Definitions 
For purposes of paragraph (1)
(A) Regular tax rate 
The term regular tax rate means the aggregate rate of tax imposed by section 4081 determined without regard to section 4081 (a)(2)(D).
(B) Incentive tax rate 
The term incentive tax rate means the aggregate rate of tax imposed by section 4081 determined with regard to section 4081 (a)(2)(D).
(n) Regulations 
The Secretary may by regulations prescribe the conditions, not inconsistent with the provisions of this section, under which payments may be made under this section.
(o) Payments for taxes imposed by section 4041 (d) 
For purposes of subsections (a), (b), and (c), the taxes imposed by section 4041 (d) shall be treated as imposed by section 4041 (a).
(p) Cross references 

(1) For civil penalty for excessive claims under this section, see section 6675.
(2) For fraud penalties, etc., see chapter 75 (section 7201 and following, relating to crimes, other offenses, and forfeitures).
(3) For treatment of an Indian tribal government as a State (and a subdivision of an Indian tribal government as a political subdivision of a State), see section 7871.

26 USC 6428 - Acceleration of 10 percent income tax rate bracket benefit for 2001

(a) In general 
In the case of an eligible individual, there shall be allowed as a credit against the tax imposed by chapter 1 for the taxpayers first taxable year beginning in 2001 an amount equal to 5 percent of so much of the taxpayers taxable income as does not exceed the initial bracket amount (as defined in section 1 (i)(1)(B)).
(b) Credit treated as nonrefundable personal credit 
For purposes of this title, the credit allowed under this section shall be treated as a credit allowable under subpart A of part IV of subchapter A of chapter 1.
(c) Eligible individual 
For purposes of this section, the term eligible individual means any individual other than
(1) any estate or trust,
(2) any nonresident alien individual, and
(3) any individual with respect to whom a deduction under section 151 is allowable to another taxpayer for a taxable year beginning in the calendar year in which the individuals taxable year begins.
(d) Coordination with advance refunds of credit 

(1) In general 
The amount of credit which would (but for this paragraph) be allowable under this section shall be reduced (but not below zero) by the aggregate refunds and credits made or allowed to the taxpayer under subsection (e). Any failure to so reduce the credit shall be treated as arising out of a mathematical or clerical error and assessed according to section 6213 (b)(1).
(2) Joint returns 
In the case of a refund or credit made or allowed under subsection (e) with respect to a joint return, half of such refund or credit shall be treated as having been made or allowed to each individual filing such return.
(e) Advance refunds of credit based on prior year data 

(1) In general 
Each individual who was an eligible individual for such individuals first taxable year beginning in 2000 shall be treated as having made a payment against the tax imposed by chapter 1 for such first taxable year in an amount equal to the advance refund amount for such taxable year.
(2) Advance refund amount 
For purposes of paragraph (1), the advance refund amount is the amount that would have been allowed as a credit under this section for such first taxable year if
(A) this section (other than subsections (b) and (d) and this subsection) had applied to such taxable year, and
(B) the credit for such taxable year were not allowed to exceed the excess (if any) of
(i) the sum of the regular tax liability (as defined in section 26 (b)) plus the tax imposed by section 55, over
(ii) the sum of the credits allowable under part IV of subchapter A of chapter 1 (other than the credits allowable under subpart C thereof, relating to refundable credits).
(3) Timing of payments 
In the case of any overpayment attributable to this subsection, the Secretary shall, subject to the provisions of this title, refund or credit such overpayment as rapidly as possible and, to the extent practicable, before October 1, 2001. No refund or credit shall be made or allowed under this subsection after December 31, 2001.
(4) No interest 
No interest shall be allowed on any overpayment attributable to this subsection.

26 USC 6429 - Advance payment of portion of increased child credit for 2003

(a) In general 
Each taxpayer who was allowed a credit under section 24 on the return for the taxpayers first taxable year beginning in 2002 shall be treated as having made a payment against the tax imposed by chapter 1 for such taxable year in an amount equal to the child tax credit refund amount (if any) for such taxable year.
(b) Child tax credit refund amount 
For purposes of this section, the child tax credit refund amount is the amount by which the aggregate credits allowed under part IV of subchapter A of chapter 1 for such first taxable year would have been increased if
(1) the per child amount under section 24 (a)(2) for such year were $1,000,
(2) only qualifying children (as defined in section 24(c)) of the taxpayer for such year who had not attained age 17 as of December 31, 2003, were taken into account, and
(3) section 24 (d)(1)(B)(ii) did not apply.
(c) Timing of payments 
In the case of any overpayment attributable to this section, the Secretary shall, subject to the provisions of this title, refund or credit such overpayment as rapidly as possible and, to the extent practicable, before October 1, 2003. No refund or credit shall be made or allowed under this section after December 31, 2003.
(d) Coordination with child tax credit 

(1) In general 
The amount of credit which would (but for this subsection and section 26) be allowed under section 24 for the taxpayers first taxable year beginning in 2003 shall be reduced (but not below zero) by the payments made to the taxpayer under this section. Any failure to so reduce the credit shall be treated as arising out of a mathematical or clerical error and assessed according to section 6213 (b)(1).
(2) Joint returns 
In the case of a payment under this section with respect to a joint return, half of such payment shall be treated as having been made to each individual filing such return.
(e) No interest 
No interest shall be allowed on any overpayment attributable to this section.

26 USC 6430 - Treatment of tax imposed at Leaking Underground Storage Tank Trust Fund financing rate

No refunds, credits, or payments shall be made under this subchapter for any tax imposed at the Leaking Underground Storage Tank Trust Fund financing rate, except in the case of fuels
(1) which are exempt from tax under section 4081 (a) by reason of section 4082 (f)(2),
(2) which are exempt from tax under section 4041 (d) by reason of the last sentence of paragraph (5) thereof, or
(3) with respect to which the rate increase under section 4081 (a)(2)(B) is zero by reason of section 4082 (e)(2).