Application of adjustment
Time for filing
A corporation may, after the close of the taxable year and on or before the 15th day of the fourth 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.
Form of application, etc.
Allowance of adjustment
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.
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.
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.
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.
Definitions
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.
Pub. L. 90–364, title I, § 103(d)(1)82 Stat. 262Pub. L. 94–455, title XIX, § 1906(b)(13)(A)90 Stat. 1834Pub. L. 99–499, title V, § 516(b)(4)(C)100 Stat. 1771Pub. L. 99–514, title VII, § 701(d)(2)100 Stat. 2342Pub. L. 100–203, title X, § 10301(b)(4)101 Stat. 1330–429Pub. L. 113–295, div. A, title II, § 221(a)(12)(J)128 Stat. 4039Pub. L. 114–41, title II, § 2006(a)(2)(E)129 Stat. 457Pub. L. 115–97, title I131 Stat. 2094Pub. L. 115–141, div. U, title IV, § 401(a)(293)132 Stat. 1198Pub. L. 117–169, title I, § 10101(a)(4)(F)136 Stat. 1822(Added , , ; amended , , ; , , ; , , ; , , ; , , ; , , ; , §§ 12001(b)(17), 13001(b)(2)(P), 14401(d)(3), , , 2097, 2233; , , ; , , .)
Editorial Notes
Amendments
Pub. L. 117–1692022—Subsec. (c)(1)(A). amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows:
“(A) the sum of—
“(i) the tax imposed by section 11, or subchapter L of chapter 1, whichever is applicable, plus
“(ii) the tax imposed by section 59A, over”.
Pub. L. 115–141Pub. L. 115–972018—Subsec. (c)(1)(A). , which directed amendment of subpar. (A) by substituting “the sum” for “The sum”, could not be executed because “The sum” no longer appeared after the amendments made by . See 2017 Amendment notes below.
Pub. L. 115–97, § 14401(d)(3)2017—Subsec. (c)(1)(A). , amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: “the tax imposed by section 11 or subchapter L of chapter 1, whichever is applicable, over”.
Pub. L. 115–97, § 13001(b)(2)(P), struck out “or 1201(a),” after “by section 11”.
Pub. L. 115–97, § 12001(b)(17), amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: “The sum of—
“(i) the tax imposed by section 11 or 1201(a), or subchapter L of chapter 1, whichever is applicable, plus
“(ii) the tax imposed by section 55, over”.
Pub. L. 114–412015—Subsec. (a)(1). substituted “fourth month” for “third month”.
Pub. L. 113–2952014—Subsec. (c)(1)(A). inserted “plus” at end of cl. (i), substituted “over” for “plus” at end of cl. (ii), and struck out cl. (iii) which read as follows: “the tax imposed by section 59A, over”.
Pub. L. 100–2031987—Subsec. (c). substituted “section 6655(h)” for “section 6655(g)”.
Pub. L. 99–5141986—Subsec. (c)(1)(A). amended subpar. (A) generally, restating existing provisions as cl. (i) and adding cl. (ii).
Pub. L. 99–499Pub. L. 99–514 amended subsec. (c)(1)(A), as amended by the Tax Reform Act of 1986 (), by striking out “plus” at end of cl. (i), substituting “plus” for “over” at end of cl. (ii), and adding cl. (iii).
Pub. L. 94–4551976—Subsecs. (a), (b), (d). struck out “or his delegate” after “Secretary” wherever appearing.
Statutory Notes and Related Subsidiaries
Effective Date of 2022 Amendment
Pub. L. 117–169section 10101(f) of Pub. L. 117–169section 11 of this titleAmendment by applicable to taxable years beginning after , see , set out as a note under .
Effective Date of 2017 Amendment
section 12001(b)(17) of Pub. L. 115–97section 12001(c) of Pub. L. 115–97section 11 of this titleAmendment by applicable to taxable years beginning after , see , set out as a note under .
section 13001(b)(2)(P) of Pub. L. 115–97section 13001(c)(1) of Pub. L. 115–97section 11 of this titleAmendment by applicable to taxable years beginning after , see , set out as a note under .
section 14401(d)(3) of Pub. L. 115–97section 59A(d) of this titlesection 14401(e) of Pub. L. 115–97section 26 of this titleAmendment by applicable to base erosion payments (as defined in ) paid or accrued in taxable years beginning after , see , set out as a note under .
Effective Date of 2015 Amendment
Pub. L. 114–41section 2006(a)(3) of Pub. L. 114–41section 170 of this titleAmendment by applicable to returns for taxable years beginning after , with special rule for certain C corporations, see , set out as a note under .
Effective Date of 2014 Amendment
Pub. L. 113–295section 221(b) of Pub. L. 113–295section 1 of this titleAmendment by effective , subject to a savings provision, see , set out as a note under .
Effective Date of 1987 Amendment
Pub. L. 100–203section 10301(c) of Pub. L. 100–203section 585 of this titleAmendment by applicable to taxable years beginning after , see , set out as a note under .
Effective Date of 1986 Amendments
Pub. L. 99–514section 701(f) of Pub. L. 99–514section 55 of this titleAmendment by applicable to taxable years beginning after , with certain exceptions and qualifications, see , set out as an Effective Date note under .
Pub. L. 99–499section 516(c) of Pub. L. 99–499section 26 of this titleAmendment by applicable to taxable years beginning after , see , set out as a note under .
Effective Date
section 104 of Pub. L. 90–364section 103(f) of Pub. L. 90–364section 6154 of this titleSection applicable with respect to taxable years beginning after , except as provided by , set out as notes under sections 6154 and 51 of this title, see , set out as an Effective Date of 1968 Amendment note under .
Pub. L. 99–514Applicability of Certain Amendments by in Relation to Treaty Obligations of United States
Pub. L. 99–514section 1012(aa)(2) of Pub. L. 100–647section 861 of this titleFor applicability of amendment by notwithstanding any treaty obligation of the United States in effect on , see , set out as a note under .