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 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.
(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 subchapter L of chapter 1, whichever is applicable, plus
(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
Terms Used In 26 USC 6425
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- corporation: includes associations, joint-stock companies, and insurance companies. See 26 USC 7701
- Remainder: An interest in property that takes effect in the future at a specified time or after the occurrence of some event, such as the death of a life tenant.
- Secretary: means the Secretary of the Treasury or his delegate. See 26 USC 7701
- taxable year: means the calendar year, or the fiscal year ending during such calendar year, upon the basis of which the taxable income is computed under subtitle A. See 26 USC 7701
- taxpayer: means any person subject to any internal revenue tax. See 26 USC 7701
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.