r/title-26-INTERNAL-REVENUE-CODE wiki — defined terms

“reference written determination” applies in that section

The term “reference written determination” means any written determination which has been determined by the Secretary to have significant reference value. (B) General written determination

“revenue provision” applies in that section

the term “revenue provision” means any existing or former internal revenue law, regulation, revenue ruling, revenue procedure, other published or unpublished guidance, or tax treaty, either in general or as applied to specific taxpayers or groups of specific taxpayers. (2) Additional documents treated as Chief Counsel advice The Secretary may by regulation provide that this section shall apply to any advice or instruction prepared and issued by the Office of Chief Counsel which is not described in paragraph (1).

“written determination” applies in that section

The term “written determination” means a ruling, determination letter, technical advice memorandum, or Chief Counsel advice. (B) Exceptions Such term shall not include any matter referred to in subparagraph (C) or (D) of section 6103(b)(2).

“material advisor” applies in that section

The term “material advisor” means any person— (i) who provides any material aid, assistance, or advice with respect to organizing, managing, promoting, selling, implementing, insuring, or carrying out any reportable transaction, and (ii) who directly or indirectly derives gross income in excess of the threshold amount (or such other amount as may be prescribed by the Secretary) for such aid, assistance, or advice. (B) Threshold amount For purposes of subparagraph (A), the threshold amount is— (i) $50,000 in the case of a reportable transaction substantially all of the tax benefits from which are provided to natural persons, and (ii) $250,000 in any other case. (2) Reportable transaction

“reportable transaction” applies in that section

The term “reportable transaction” has the meaning given to such term by section 6707A(c). (c) Regulations The Secretary may prescribe regulations which provide— (1) that only 1 person shall be required to meet the requirements of subsection (a) in cases in which 2 or more persons would otherwise be required to meet such requirements, (2) exemptions from the requirements of this section, and (3) such rules as may be necessary or appropriate to carry out the purposes of this section.

“fundraising solicitation” applies in that section

the term “fundraising solicitation” means any solicitation of contributions or gifts which is made— (A) in written or printed form, (B) by television or radio, or (C) by telephone. (2) Exception for certain letters or calls The term “fundraising solicitation” shall not include any letter or telephone call if such letter or call is not part of a coordinated fundraising campaign soliciting more than 10 persons during the calendar year.

“quid pro quo contribution” applies in that section

the term “quid pro quo contribution” means a payment made partly as a contribution and partly in consideration for goods or services provided to the payor by the donee organization. A quid pro quo contribution does not include any payment made to an organization, organized exclusively for religious purposes, in return for which the taxpayer receives solely an intangible religious benefit that generally is not sold in a commercial transaction outside the donative context.

“business company” applies in that section

The term “business company” means any corporation carrying on a trade or business. (9) Deferral not available for passive assets (A) In general For purposes of subsection (a)(1) and determining the closely held business amount (but not for purposes of subsection (g)), the value of any interest in a closely held business shall not include the value of that portion of such interest which is attributable to passive assets held by the business. (B) Passive asset defined For purposes of this paragraph— (i) In general

“closely held business amount” applies in that section

the term “closely held business amount” means the value of the interest in a closely held business which qualifies under subsection (a)(1). (6) Adjusted gross estate For purposes of this section, the term, “adjusted gross estate” means the value of the gross estate reduced by the sum of the amounts allowable as a deduction under section 2053 or 2054. Such sum shall be determined on the basis of the facts and circumstances in existence on the date (including extensions) for filing the return of tax imposed by section 2001 (or, if earlier, the date on which such return is filed).

“holding company” applies in that section

The term “holding company” means any corporation holding stock in another corporation. (ii) Business company

“interest in a closely held business” applies in that section

the term “interest in a closely held business” means— (A) an interest as a proprietor in a trade or business carried on as a proprietorship; (B) an interest as a partner in a partnership carrying on a trade or business, if— (i) 20 percent or more of the total capital interest in such partnership is included in determining the gross estate of the decedent, or (ii) such partnership had 45 or fewer partners; or (C) stock in a corporation carrying on a trade or business if— (i) 20 percent or more in value of the voting stock of such corporation is included in determining the gross estate of the decedent, or (ii) such corporation had 45 or fewer shareholders.

“lending and finance business” applies in that section

The term “lending and finance business” means a trade or business of— (I) making loans, (II) purchasing or discounting accounts receivable, notes, or installment obligations, (III) engaging in rental and leasing of real and tangible personal property, including entering into leases and purchasing, servicing, and disposing of leases and leased assets, (IV) rendering services or making facilities available in the ordinary course of a lending or finance business, and (V) rendering services or making facilities available in connection with activities described in subclauses (I) through (IV) carried on by the corporation rendering services or making facilities available, or another corporation …

“non-readily-tradable stock” applies in that section

the term “non-readily-tradable stock” means stock for which, at the time of the decedent’s death, there was no market on a stock exchange or in an over-the-counter market. (8) Stock in holding company treated as business company stock in certain cases (A) In general If the executor elects the benefits of this paragraph, then— (i) Holding company stock treated as business company stock For purposes of this section, the portion of the stock of any holding company which represents direct ownership (or indirect ownership through 1 or more other holding companies) by such company in a business company shall be deemed to be stock in such business company.

“passive asset” applies in that section

The term “passive asset” means any asset other than an asset used in carrying on a trade or business. (ii) Stock treated as passive asset

“qualifying lending and finance business” applies in that section

The term “qualifying lending and finance business” means a lending and finance business, if— (I) based on all the facts and circumstances immediately before the date of the decedent’s death, there was substantial activity with respect to the lending and finance business, or (II) during at least 3 of the 5 taxable years ending before the date of the decedent’s death, such business had at least 1 full-time employee substantially all of whose services were the active management of such business, 10 full-time, nonowner employees substantially all of whose services were directly related to such business, and $5,000,000 in gross receipts from activities described in clause (ii).

“deficiency” applies throughout this title

the term “deficiency” means the amount by which the tax imposed by subtitle A or B, or chapter 41, 42, 43, or 44 exceeds the excess of— (1) the sum of (A) the amount shown as the tax by the taxpayer upon his return, if a return was made by the taxpayer and an amount was shown as the tax by the taxpayer thereon, plus (B) the amounts previously assessed (or collected without assessment) as a deficiency, over— (2) the amount of rebates, as defined in subsection (b)(2), made.

“rebate” applies in that section

The term “rebate” means so much of an abatement, credit, refund, or other repayment, as was made on the ground that the tax imposed by subtitle A or B or chapter 41, 42, 43, or 44 was less than the excess of the amount specified in subsection (a)(1) over the rebates previously made. (3) The computation by the Secretary, pursuant to section 6014, of the tax imposed by chapter 1 shall be considered as having been made by the taxpayer and the tax so computed considered as shown by the taxpayer upon his return.

“mathematical or clerical error” applies in that section

The term “mathematical or clerical error” means— (A) an error in addition, subtraction, multiplication, or division shown on any return, (B) an incorrect use of any table provided by the Internal Revenue Service with respect to any return if such incorrect use is apparent from the existence of other information on the return, (C) an entry on a return of an item which is inconsistent with another entry of the same or another item on such return, (D) an omission of information which is required to be supplied on the return to substantiate an entry on the return, (E) an entry on a return of a deduction or credit in an amount which exceeds a statutory limit imposed by subtitle A or B, or …

“return” applies in that section

The term “return” includes any return, statement, schedule, or list, and any amendment or supplement thereto, filed with respect to any tax imposed by subtitle A or B, or chapter 41, 42, 43, or 44. (2) Mathematical or clerical error

“adjustment year” applies throughout its subchapter

The term “adjustment year” means the partnership taxable year in which— (A) in the case of an adjustment pursuant to the decision of a court in a proceeding brought under section 6234, such decision becomes final, (B) in the case of an administrative adjustment request under section 6227, such administrative adjustment request is made, or (C) in any other case, notice of the final partnership adjustment is mailed under section 6231.

“reviewed year” applies throughout its subchapter

The term “reviewed year” means the partnership taxable year to which the item being adjusted relates. (2) Adjustment year

“specified partner” applies in that section

the term “specified partner” means any person if such person— (i) is a partner of the publicly traded partnership referred to in subparagraph (A), (ii) is described in section 469(a)(2), and (iii) has a specified passive activity loss with respect to such publicly traded partnership, with respect to each taxable year of such person which is during the period beginning with the taxable year of such person in which or with which the reviewed year of such publicly traded partnership ends and ending with the taxable year of such person in which or with which the adjustment year of such publicly traded partnership ends.

“specified passive activity loss” applies in that section

the term “specified passive activity loss” means, with respect to any specified partner of such publicly traded partnership, the lesser of— (i) the passive activity loss of such partner which is separately determined with respect to such partnership under section 469(k) with respect to such partner’s taxable year in which or with which the reviewed year of such partnership ends, or (ii) such passive activity loss so determined with respect to such partner’s taxable year in which or with which the adjustment year of such partnership ends. (C) Specified partner For purposes of this paragraph,

“audited partnership” applies in that section

the term “audited partnership” means, with respect to any partner described in subparagraph (A), the partnership in the chain of ownership originally electing the application of this section. (E) Treatment of trusts The Secretary shall prescribe such rules as may be necessary with respect to trusts which receive a statement under subsection (a)(2). (c) Penalties and interest (1) Penalties Notwithstanding subsections (a) and (b), any penalties, additions to tax, or additional amount shall be determined as provided under section 6221 and the partners of the partnership for the reviewed year shall be liable for any such penalty, addition to tax, or additional amount.

“specified similar amount” applies in that section

the term “specified similar amount” means— (A) the amount described in subclause (II) of section 6226(b)(4)(A)(ii) (including any failure to satisfy the requirement of subclause (I) of such section which is treated as a failure to pay such amount under section 6651(i)), and (B) any amount assessed under paragraph (1)(B) upon a partner which is a partnership. (3) Proportionate share For purposes of paragraph (1), a partner’s proportionate share is such percentage as the Secretary may determine on the basis of such partner’s distributive share. The Secretary shall make determinations under the preceding sentence such that the aggregate proportionate shares so determined total 100 percent.

“partnership” applies throughout its subchapter

The term “partnership” means any partnership required to file a return under section 6031(a). (2) Partnership adjustment (A) In general

“partnership adjustment” applies throughout its subchapter

The term “partnership adjustment” means any adjustment to a partnership-related item. (B) Partnership-related item

“partnership-related item” applies throughout its subchapter

The term “partnership-related item” means— (i) any item or amount with respect to the partnership (without regard to whether or not such item or amount appears on the partnership’s return and including an imputed underpayment and any item or amount relating to any transaction with, basis in, or liability of, the partnership) which is relevant (determined without regard to this subchapter) in determining the tax liability of any person under chapter 1, and (ii) any partner’s distributive share of any item or amount described in clause (i). (3) Return due date

“return due date” applies throughout its subchapter

The term “return due date” means, with respect to the taxable year, the date prescribed for filing the partnership return for such taxable year (determined without regard to extensions). (4) Payments nondeductible No deduction shall be allowed under subtitle A for any payment required to be made by a partnership under this subchapter. (5) Partnerships having principal place of business outside United States For purposes of section 6234, a principal place of business located outside the United States shall be treated as located in the District of Columbia.

“special enforcement matters” applies throughout its subchapter

the term “special enforcement matters” means— (i) failure to comply with the requirements of section 6226(b)(4)(A)(ii), (ii) assessments under section 6851 (relating to termination assessments of income tax) or section 6861 (relating to jeopardy assessments of income, estate, gift, and certain excise taxes), (iii) criminal investigations, (iv) indirect methods of proof of income, (v) foreign partners or partnerships, and (vi) other matters that the Secretary determines by regulation present special enforcement considerations.

“depository tax” applies in that section

The term “depository tax” means any tax if the Secretary is authorized to require deposits of such tax. (B) Electronic fund transfer

“electronic fund transfer” applies in that section

The term “electronic fund transfer” means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, which is initiated through an electronic terminal, telephonic instrument, or computer or magnetic tape so as to order, instruct, or authorize a financial institution or other financial intermediary to debit or credit an account. (3) Coordination with other electronic fund transfer requirements Under regulations, any tax required to be paid by electronic fund transfer under section 5061(e) or 5703(b) shall be paid in such a manner as to ensure that the requirements of the second sentence of paragraph (1)(A) of this subsection are satisfied.

“inactive tax receivable” applies in that section

The term “inactive tax receivable” means any tax receivable if— (i) at any time after assessment, the Internal Revenue Service removes such receivable from the active inventory for lack of resources or inability to locate the taxpayer, (ii) more than 2 years has passed since assessment and such receivable has not been assigned for collection to any employee of the Internal Revenue Service, or (iii) in the case of a receivable which has been assigned for collection, more than 365 days have passed without interaction with the taxpayer or a third party for purposes of furthering the collection of such receivable. (B) Tax receivable

“qualified tax collection contract” applies in that section

the term “qualified tax collection contract” means any contract which— (1) is for the services of any person (other than an officer or employee of the Treasury Department)— (A) to locate and contact any taxpayer specified by the Secretary, (B) to request full payment from such taxpayer of an amount of Federal tax specified by the Secretary and, if such request cannot be met by the taxpayer, to offer the taxpayer an installment agreement providing for full payment of such amount during a period not to exceed 7 years, and (C) to obtain financial information specified by the Secretary with respect to such taxpayer, (2) prohibits each person providing such services under such contract from …

“tax receivable” applies in that section

The term “tax receivable” means any outstanding assessment which the Internal Revenue Service includes in potentially collectible inventory. (d) Certain tax receivables not eligible for collection under qualified tax collections contracts A tax receivable shall not be eligible for collection pursuant to a qualified tax collection contract if such receivable— (1) is subject to a pending or active offer-in-compromise or installment agreement, (2) is classified as an innocent spouse case, (3) involves a taxpayer identified by the Secretary as being— (A) deceased, (B) under the age of 18, (C) in a designated combat zone, (D) a victim of tax-related identity theft, (E) a taxpayer substantially …

“program costs” applies in that section

The term “program costs” means— (A) total salaries (including locality pay and bonuses), benefits, and employment taxes for special compliance personnel employed or trained under the program described in subsection (a), (B) direct overhead costs, salaries, benefits, and employment taxes relating to support staff, rental payments, office equipment and furniture, travel, data processing services, vehicle costs, utilities, communications, software, technology, postage, printing and reproduction, supplies and materials, lands and structures, insurance claims, and indemnities for special compliance personnel hired and employed under this section, and (C) reimbursement of the Internal Revenue …

“special compliance personnel” applies in that section

The term “special compliance personnel” means individuals employed by the Internal Revenue Service as field function collection officers or in a similar position, or employed to collect taxes using the automated collection system or an equivalent replacement system. (2) Program costs

“commercial financing security” applies in that section

The term “commercial financing security” means (i) paper of a kind ordinarily arising in commercial transactions, (ii) accounts receivable, (iii) mortgages on real property, and (iv) inventory. (D) Purchaser treated as acquiring security interest A person who satisfies subparagraph (A) by reason of clause (ii) thereof shall be treated as having acquired a security interest in commercial financing security (3) Real property construction or improvement financing agreement For purposes of this subsection— (A) Definition

“commercial transactions financing agreement” applies in that section

The term “commercial transactions financing agreement” means an agreement (entered into by a person in the course of his trade or business)— (i) to make loans to the taxpayer to be secured by commercial financing security acquired by the taxpayer in the ordinary course of his trade or business, or (ii) to purchase commercial financing security (other than inventory) acquired by the taxpayer in the ordinary course of his trade or business; but such an agreement shall be treated as coming within the term only to the extent that such loan or purchase is made before the 46th day after the date of tax lien filing or (if earlier) before the lender or purchaser had actual notice or knowledge of …

“mechanic’s lienor” applies in that section

The term “mechanic’s lienor” means any person who under local law has a lien on real property (or on the proceeds of a contract relating to real property) for services, labor, or materials furnished in connection with the construction or improvement of such property. For purposes of the preceding sentence, a person has a lien on the earliest date such lien becomes valid under local law against subsequent purchasers without actual notice, but not before he begins to furnish the services, labor, or materials. (3) Motor vehicle

“motor vehicle” applies in that section

The term “motor vehicle” means a self-propelled vehicle which is registered for highway use under the laws of any State or foreign country. (4) Security

“obligatory disbursement agreement” applies in that section

The term “obligatory disbursement agreement” means an agreement (entered into by a person in the course of his trade or business) to make disbursements, but such an agreement shall be treated as coming within the term only to the extent of disbursements which are required to be made by reason of the intervention of the rights of a person other than the taxpayer.

“purchaser” applies in that section

The term “purchaser” means a person who, for adequate and full consideration in money or money’s worth, acquires an interest (other than a lien or security interest) in property which is valid under local law against subsequent purchasers without actual notice. In applying the preceding sentence for purposes of subsection (a) of this section, and for purposes of section 6324— (A) a lease of property, (B) a written executory contract to purchase or lease property, (C) an option to purchase or lease property or any interest therein, or (D) an option to renew or extend a lease of property, which is not a lien or security interest shall be treated as an interest in property.

“real property construction or improvement financing agreement” applies in that section

The term “real property construction or improvement financing agreement” means an agreement to make cash disbursements to finance— (i) the construction or improvement of real property, (ii) a contract to construct or improve real property, or (iii) the raising or harvesting of a farm crop or the raising of livestock or other animals. For purposes of clause (iii), the furnishing of goods and services shall be treated as the disbursement of cash.

“required refiling period” applies in that section

the term “required refiling period” means— (A) the one-year period ending 30 days after the expiration of 10 years after the date of the assessment of the tax, and (B) the one-year period ending with the expiration of 10 years after the close of the preceding required refiling period for such notice of lien. (4) Transitional rule Notwithstanding paragraph (3), if the assessment of the tax was made before January 1, 1962 , the first required refiling period shall be the calendar year 1967. (h) Definitions For purposes of this section and section 6324— (1) Security interest

“security” applies in that section

The term “security” means any bond, debenture, note, or certificate or other evidence of indebtedness, issued by a corporation or a government or political subdivision thereof, with interest coupons or in registered form, share of stock, voting trust certificate, or any certificate of interest or participation in, certificate of deposit or receipt for, temporary or interim certificate for, or warrant or right to subscribe to or purchase, any of the foregoing; negotiable instrument; or money. (5) Tax lien filing

“security interest” applies in that section

The term “security interest” means any interest in property acquired by contract for the purpose of securing payment or performance of an obligation or indemnifying against loss or liability. A security interest exists at any time (A) if, at such time, the property is in existence and the interest has become protected under local law against a subsequent judgment lien arising out of an unsecured obligation, and (B) to the extent that, at such time, the holder has parted with money or money’s worth. (2) Mechanic’s lienor

“tax lien filing” applies in that section

The term “tax lien filing” means the filing of notice (referred to in subsection (a)) of the lien imposed by section 6321. (6) Purchaser

“deferral period” applies in that section

The term “deferral period” means the period for which the payment of tax is deferred pursuant to the election under section 6166. (4) Application of definitions in case of deficiencies In the case of a deficiency, a separate deferred amount, required interest amount, and deferral period shall be determined as of the due date of the first installment after the deficiency is prorated to installments under section 6166.

“deferred amount” applies in that section

The term “deferred amount” means the aggregate amount deferred under section 6166 (determined as of the date prescribed by section 6151(a) for payment of the tax imposed by chapter 11). (2) Required interest amount

“required interest amount” applies in that section

The term “required interest amount” means the aggregate amount of interest which will be payable over the first 4 years of the deferral period with respect to the deferred amount (determined as of the date prescribed by section 6151(a) for the payment of the tax imposed by chapter 11). (3) Deferral period

“section 6166 lien property” applies in that section

the term “section 6166 lien property” means interests in real and other property to the extent such interests— (A) can be expected to survive the deferral period, and (B) are designated in the agreement referred to in subsection (c). (2) Maximum value of required property The maximum value of the property which the Secretary may require as section 6166 lien property with respect to any estate shall be a value which is not greater than the sum of— (A) the deferred amount, and (B) the required interest amount.

“qualified real property” applies in that section

the term “qualified real property” includes qualified replacement property (within the meaning of section 2032A(h)(3)(B)) and qualified exchange property (within the meaning of section 2032A(i)(3)). (d) Substitution of security for lien To the extent provided in regulations prescribed by the Secretary, the furnishing of security may be substituted for the lien imposed by this section.

“employment taxes” applies in that section

the term “employment taxes” means any taxes under chapter 21, 22, 23, or 24. (2) Federal contractor levy A Federal contractor levy is any levy if the person whose property is subject to the levy (or any predecessor thereof) is a Federal contractor.

“divisible tax” applies throughout this title

the term “divisible tax” means— (A) any tax imposed by subtitle C; and (B) the penalty imposed by section 6672 with respect to any such tax. (3) Exceptions (A) Certain unpaid taxes This subsection shall not apply with respect to any unpaid tax if— (i) the taxpayer files a written notice with the Secretary which waives the restriction imposed by this subsection on levy with respect to such tax; or (ii) the Secretary finds that the collection of such tax is in jeopardy.

“specified payment” applies throughout this title

the term “specified payment” means— (A) any Federal payment other than a payment for which eligibility is based on the income or assets (or both) of a payee, (B) any payment described in paragraph (4), (7), (9), or (11) of section 6334(a), and (C) any annuity or pension payment under the Railroad Retirement Act or benefit under the Railroad Unemployment Insurance Act.

“exempt amount” applies in that section

the term “exempt amount” means an amount equal to— (A) the sum of— (i) the standard deduction, and (ii) the aggregate amount of the deductions for personal exemptions allowed the taxpayer under section 151 in the taxable year in which such levy occurs, divided by (B) 52. Unless the taxpayer submits to the Secretary a written and properly verified statement specifying the facts necessary to determine the proper amount under subparagraph (A), subparagraph (A) shall be applied as if the taxpayer were a married individual filing a separate return with only 1 personal exemption.

“overpayment” applies in that section

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, and G of such part IV), the amount of such excess shall be considered an overpayment.

“covered unemployment compensation debt” applies in that section

the term “covered unemployment compensation debt” means— (A) a past-due debt for erroneous payment of unemployment compensation due to fraud or the person’s failure to report earnings which has become final under the law of a State certified by the Secretary of Labor pursuant to section 3304 and which remains uncollected; (B) contributions due to the unemployment fund of a State for which the State has determined the person to be liable and which remain uncollected; and (C) any penalties and interest assessed on such debt.

“Federal agency” applies in that 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). (i) Treatment of payments to States The Secretary may provide that, for purposes of determining interest, the payment of any amount withheld under subsection (c), (e), or (f) to a State shall be treated as a payment to the person or persons making the overpayment. (j) Cross reference For procedures relating to agency notification of the Secretary, see section 3721 of title 31 , United States Code.

“OASDI overpayment” applies in that section

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 person’s name, …

“past-due, legally enforceable State income tax obligation” applies in that section

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,

“State income tax” applies in that section

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.

“suspension period” applies in that section

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.

“dealer” applies in that section

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.

“employer” applies in that section

the term “employer” includes a State or any political subdivision thereof, or any instrumentality of any one or more of the foregoing;

“tax” applies in that section

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 employee’s 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,

“tax imposed by section 3101(a)” applies in that section

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 employee’s 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,

“tax imposed by section 3101(a),” applies in that section

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 employee’s remuneration as a result of the agreement entered into pursuant to section 3121( l ) has been paid to the Secretary.

“wages” applies in that section

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,

“applicable credit” applies in that section

The term “applicable credit” means each of the following: (1) So much of the credit for alternative fuel vehicle refueling property allowed under section 30C which, pursuant to subsection (d)(1) of such section, is treated as a credit listed in section 38(b). (2) So much of the renewable electricity production credit determined under section 45(a) as is attributable to qualified facilities which are originally placed in service after December 31, 2022 . (3) So much of the credit for carbon oxide sequestration determined under section 45Q(a) as is attributable to carbon capture equipment which is originally placed in service after December 31, 2022 .

“applicable entity” applies in that section

The term “applicable entity” means— (i) any organization exempt from the tax imposed by subtitle A, (ii) any State or political subdivision thereof, (iii) the Tennessee Valley Authority, (iv) an Indian tribal government (as defined in section 30D(g)(9)), (v) any Alaska Native Corporation (as defined in section 3 of the Alaska Native Claims Settlement Act ( 43 U.S.C. 1602(m) ), or (vi) any corporation operating on a cooperative basis which is engaged in furnishing electric energy to persons in rural areas.

“excessive payment” applies in that section

the term “excessive payment” means, with respect to a facility or property for which an election is made under this section for any taxable year, an amount equal to the excess of— (i) the amount treated as a payment which is made by the applicable entity under subsection (a), or the amount of the payment made pursuant to subsection (c), with respect to such facility or property for such taxable year, over (ii) the amount of the credit which, without application of this section, would be otherwise allowable (as determined pursuant to paragraph (2) and without regard to section 38(c)) under this title with respect to such facility or property for such taxable year.

“eligible credit” applies in that section

The term “eligible credit” means each of the following: (i) So much of the credit for alternative fuel vehicle refueling property allowed under section 30C which, pursuant to subsection (d)(1) of such section, is treated as a credit listed in section 38(b). (ii) The renewable electricity production credit determined under section 45(a). (iii) The credit for carbon oxide sequestration determined under section 45Q(a). (iv) The zero-emission nuclear power production credit determined under section 45U(a). (v) The clean hydrogen production credit determined under section 45V(a). (vi) The advanced manufacturing production credit determined under section 45X(a).

“eligible taxpayer” applies in that section

The term “eligible taxpayer” means any taxpayer which is not described in section 6417(d)(1)(A). (g) Special rules For purposes of this section— (1) Additional information As a condition of, and prior to, any transfer of any portion of an eligible credit pursuant to subsection (a), the Secretary may require such information (including, in such form or manner as is determined appropriate by the Secretary, such information returns) or registration as the Secretary deems necessary for purposes of preventing duplication, fraud, improper payments, or excessive payments under this section.

“excessive credit transfer” applies in that section

the term “excessive credit transfer” means, with respect to a facility or property for which an election is made under subsection (a) for any taxable year, an amount equal to the excess of— (i) the amount of the eligible credit claimed by the transferee taxpayer with respect to such facility or property for such taxable year, over (ii) the amount of such credit which, without application of this section, would be otherwise allowable under this title with respect to such facility or property for such taxable year.

“farm” applies in that section

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.

“gasoline” applies in that section

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.

“gasoline” applies in that section

The term “gasoline” has the meaning given to such term by section 4083(a). (2) Off-highway business use (A) In general

“off-highway business use” applies in that section

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

“alcohol or tobacco tax” applies in that section

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

“tax” applies in that section

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 …

“income tax liability” applies in that section

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.

“alcohol” applies in that section

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

“alcohol fuel mixture” applies in that section

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

“alternative fuel” applies in that 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) any liquid fuel which meets the requirements of paragraph (4) and which is derived from coal (including peat) through the Fischer-Tropsch process, (E) compressed or liquefied gas derived from biomass (as defined in section 45K(c)(3)), and (F) liquid fuel derived from biomass (as defined in section 45K(c)(3)).

“alternative fuel mixture” applies in that section

the term “alternative fuel mixture” means a mixture of alternative fuel (other than a fuel described in subparagraph (A), (C), or (E) of subsection (d)(2)) 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 December 31, 2024 . (f) Mixture not used as a fuel, etc.

“biodiesel mixture” applies in that 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.

“gasoline gallon equivalent” applies in that section

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) Carbon capture requirement (A) In general The requirements of this paragraph are met if the fuel is certified, under such procedures as required by the Secretary, as having been derived from coal produced at a gasification facility which separates and sequesters not less than the applicable percentage of such facility’s total carbon dioxide emissions.

“taxable fuel” applies in that section

The term “taxable fuel” has the meaning given such term by section 4083(a)(1). (5) Volume of alcohol For purposes of determining under subsection (a) the number of gallons of alcohol with respect to which a credit is allowable under subsection (a), the volume of alcohol shall include the volume of any denaturant (including gasoline) which is added under any formulas approved by the Secretary to the extent that such denaturants do not exceed 2 percent of the volume of such alcohol (including denaturants). (6) Termination This subsection shall not apply to any sale, use, or removal for any period after December 31, 2011 .

“United States” applies in that section

the term “United States” includes any possession of the United States. (j) Energy equivalency determinations for liquefied petroleum gas and liquefied natural gas For purposes of determining any credit under this section, any reference to the number of gallons of an alternative fuel or the gasoline gallon equivalent of such a fuel shall be treated as a reference to— (1) in the case of liquefied petroleum gas, the energy equivalent of a gallon of gasoline, as defined in section 4041(a)(2)(C), and (2) in the case of liquefied natural gas, the energy equivalent of a gallon of diesel, as defined in section 4041(a)(2)(D).

“incentive tax rate” applies in that section

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.

“nontaxable use” applies in that section

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,

“qualified local bus” applies in that section

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).

“regular tax rate” applies in that section

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

“eligible individual” applies in that section

the term “eligible individual” means any individual other than— (1) any nonresident alien individual, (2) 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 individual’s taxable year begins, and (3) an estate or trust. (e) 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 (f).

“valid identification number” applies in that section

the term “valid identification number” means a social security number (as such term is defined in section 24(h)(7)). (B) Adoption taxpayer identification number For purposes of paragraphs (1)(C) and (2)(C), in the case of a qualifying child who is adopted or placed for adoption,

“eligible individual” applies in that section

the term “eligible individual” means any individual other than— (1) any nonresident alien individual, (2) 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 individual’s taxable year begins, and (3) an estate or trust. (e) Coordination with advance refunds of credit (1) In general The amount of the 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 (f).

“specified individual” applies in that section

the term “specified individual” means any individual who is— (i) a specified social security beneficiary, (ii) a specified supplemental security income recipient, (iii) a specified railroad retirement beneficiary, or (iv) a specified veterans beneficiary. (C) Specified social security beneficiary (i) In general For purposes of this paragraph,

“specified railroad retirement beneficiary” applies in that section

the term “specified railroad retirement beneficiary” means any individual who, for the last month for which the Secretary has available information as of the date of enactment of this section, is entitled to a monthly annuity or pension payment payable (without regard to section 5(a)(ii) of the Railroad Retirement Act of 1974 ( 45 U.S.C. 231d(a)(ii) )) under— (i) section 2(a)(1) of such Act ( 45 U.S.C. 231a(a)(1) ), (ii) section 2(c) of such Act ( 45 U.S.C. 231a(c) ), (iii) section 2(d)(1) of such Act ( 45 U.S.C. 231a(d)(1) ), or (iv) section 7(b)(2) of such Act ( 45 U.S.C. 231f(b)(2) ) with respect to any of the benefit payments described in subparagraph (C)(i).

“specified social security beneficiary” applies in that section

the term “specified social security beneficiary” means any individual who, for the last month for which the Secretary has available information as of the date of enactment of this section, is entitled to any monthly insurance benefit payable under title II of the Social Security Act ( 42 U.S.C. 401 et seq.), including payments made pursuant to sections 202(d), 223(g), and 223(i)(7) of such Act. (ii) Exception For purposes of this paragraph, the term “specified social security beneficiary” shall not include any individual if such benefit is not payable for such month by reason of section 202(x)(1)(A) of the Social Security Act ( 42 U.S.C.

“specified supplemental security income recipient” applies in that section

the term “specified supplemental security income recipient” means any individual who, for the last month for which the Secretary has available information as of the date of enactment of this section, is eligible for a monthly benefit payable under title XVI of the Social Security Act ( 42 U.S.C. 1381 et seq.), including— (I) payments made pursuant to section 1614(a)(3)(C) of such Act ( 42 U.S.C. 1382c(a)(3)(C) ), (II) payments made pursuant to section 1619(a) ( 42 U.S.C. 1382h(a) ) or subsections (a)(4), (a)(7), or (p)(7) of section 1631 ( 42 U.S.C. 1383 ) of such Act, and (III) State supplementary payments of the type referred to in section 1616(a) of such Act ( 42 U.S.C.

“specified veterans beneficiary” applies in that section

the term “specified veterans beneficiary” means any individual who, for the last month for which the Secretary has available information as of the date of enactment of this section, is entitled to a compensation or pension payment payable under— (I) section 1110, 1117, 1121, 1131, 1141, or 1151 of title 38, United States Code, (II) section 1310, 1312, 1313, 1315, 1316, or 1318 of title 38, United States Code, (III) section 1513, 1521, 1533, 1536, 1537, 1541, 1542, or 1562 of title 38, United States Code, or (IV) section 1805, 1815, or 1821 of title 38, United States Code, to a veteran, surviving spouse, child, or parent as described in paragraph (2), (3), (4)(A)(ii), or (5) of section 101, …

“valid identification number” applies in that section

the term “valid identification number” means a social security number (as such term is defined in section 24(h)(7)). (B) Adoption taxpayer identification number For purposes of paragraph (3)(B), in the case of a qualifying child who is adopted or placed for adoption,

“2020 calendar year filing deadline” applies in that section

The term “2020 calendar year filing deadline” means the date specified in section 6072(a) with respect to returns for calendar year 2020. Such date shall be determined after taking into account any period disregarded under section 7508A if such disregard applies to substantially all returns for calendar year 2020 to which section 6072(a) applies.

“2021 rebate amount” applies in that section

the term “2021 rebate amount” means, with respect to any taxpayer for any taxable year, the sum of— (1) $1,400 ($2,800 in the case of a joint return), plus (2) $1,400 multiplied by the number of dependents of the taxpayer for such taxable year. (c) Eligible individual For purposes of this section,

“additional payment determination date” applies in that section

The term “additional payment determination date” means the earlier of— (I) the date which is 90 days after the 2020 calendar year filing deadline, or (II) September 1, 2021 . (iii) 2020 calendar year filing deadline

“dependent” applies in that section

the term “dependent” has the meaning given such term by section 152. (2) Identification number requirement (A) In general In the case of a return other than a joint return, the $1,400 amount in subsection (b)(1) shall be treated as being zero unless the taxpayer includes the valid identification number of the taxpayer on the return of tax for the taxable year. (B) Joint returns In the case of a joint return, the $2,800 amount in subsection (b)(1) shall be treated as being— (i) $1,400 if the valid identification number of only 1 spouse is included on the return of tax for the taxable year, and (ii) zero if the valid identification number of neither spouse is so included.

“eligible individual” applies in that section

the term “eligible individual” means any individual other than— (1) any nonresident alien individual, (2) any individual who is a dependent of another taxpayer for a taxable year beginning in the calendar year in which the individual’s taxable year begins, and (3) an estate or trust.

“valid identification number” applies in that section

the term “valid identification number” means a social security number issued to an individual by the Social Security Administration on or before the due date for filing the return for the taxable year. (ii) Adoption taxpayer identification number For purposes of subparagraph (C), in the case of a dependent who is adopted or placed for adoption,

“person” applies in that section

the term “person” includes the government of any State or political subdivision thereof, any Indian tribal government (as defined in section 139E(c)(1)), any agency or instrumentality of any of the foregoing, and any agency or instrumentality of the Government of the United States that is described in section 501(c)(1) and exempt from taxation under section 501(a). (e) Denial of double benefit For purposes of chapter 1, the gross income of any person allowed a credit under this section shall be increased for the taxable year which includes the last day of any calendar quarter with respect to which such credit is allowed by the amount of such credit.

“applicable retirement savings vehicle” applies in that section

The term “applicable retirement savings vehicle” means an account or plan elected by the eligible individual under paragraph (2). (2) Election Any such election to have contributed the amount determined under subsection (a) shall be to an account or plan which— (A) is— (i) the portion of a plan which— (I) is described in clause (v) of section 402(c)(8)(B), is a qualified cash or deferred arrangement (within the meaning of section 401(k)), or is an annuity contract described in section 403(b) which is purchased under a salary reduction agreement, and (II) does not consist of a qualified Roth contribution program (as defined in section 402A(b)), or (ii) an individual retirement plan which is …

“eligible individual” applies in that section

The term “eligible individual” means any individual if such individual has attained the age of 18 as of the close of the taxable year. (2) Dependents and full-time students not eligible The term “eligible individual” shall not include— (A) any individual with respect to whom a deduction under section 151 is allowed to another taxpayer for a taxable year beginning in the calendar year in which such individual’s taxable year begins, and (B) any individual who is a student (as defined in section 152(f)(2)).

“modified adjusted gross income” applies in that section

the term “modified adjusted gross income” means adjusted gross income— (A) determined without regard to sections 911, 931, and 933, and (B) determined without regard to any exclusion or deduction allowed for any qualified retirement savings contribution made during the taxable year.

“qualified retirement savings contributions” applies in that section

The term “qualified retirement savings contributions” means, with respect to any taxable year, the sum of— (A) the amount of the qualified retirement contributions (as defined in section 219(e)) made by the eligible individual, (B) the amount of— (i) any elective deferrals (as defined in section 402(g)(3)) of such individual, and (ii) any elective deferral of compensation by such individual under an eligible deferred compensation plan (as defined in section 457(b)) of an eligible employer described in section 457(e)(1)(A), and (C) the amount of voluntary employee contributions by such individual to any qualified retirement plan (as defined in section 4974(c)).

“specified early distribution” applies in that section

the term “specified early distribution” means any portion of a distribution— (i) which is from such applicable retirement savings vehicle to which a contribution has been made under subsection (a)(2), (ii) which is includible in gross income, and (iii) to which 72(t)(1) applies. (C) Excess may be repaid (i) In general The increase in tax for any taxable year under subparagraph (A) shall be reduced (but not below zero) by so much of such specified early distribution as the individual elects to contribute to an applicable retirement savings vehicle not later than the day prescribed by law (including extensions of time) for filing such individual’s return for such taxable year.

“account beneficiary” applies in that section

the terms “Trump account” and “account beneficiary” have the meaning given such terms in section 530A(b).

“eligible child” applies in that section

the term “eligible child” means a qualifying child (as defined in section 152(c))— (1) who is born after December 31, 2024 , and before January 1, 2029 , (2) with respect to whom no prior election has been made under this section by such individual or any other individual, and (3) who is a United States citizen. (d) Election An election under this section shall be made at such time and in such manner as the Secretary shall provide. (e) Social security number required (1) In general This section shall not apply to any taxpayer unless such individual includes with the election made under this section the social security number of the eligible child with respect to whom the election is made.

“Trump account” applies in that section

the terms “Trump account” and “account beneficiary” have the meaning given such terms in section 530A(b).

“eligible indelibly dyed diesel fuel or kerosene” applies in that section

The term “eligible indelibly dyed diesel fuel or kerosene” means diesel fuel or kerosene— (A) with respect to which a tax under section 4081 was previously paid (and not credited or refunded), and (B) which is exempt from taxation under section 4082(a). (c) Cross reference For civil penalty for excessive claims under this section, see section 6675.

“credit carryback” applies in that section

the term “credit carryback” has the meaning given such term by section 6511(d)(4)(C). (k) Tentative carryback adjustment assessment period In a case where an amount has been applied, credited, or refunded under section 6411 (relating to tentative carryback and refund adjustments) by reason of a net operating loss carryback, a capital loss carryback, or a credit carryback (as defined in section 6511(d)(4)(C)) to a prior taxable year, the period described in subsection (a) of this section for assessing a deficiency for such prior taxable year shall be extended to include the period described in subsection (h) or (j), whichever is applicable; except that the amount which may be assessed solely …

“gross income” applies in that section

the term “gross income” means the total of the amounts received or accrued from the sale of goods or services (if such amounts are required to be shown on the return) prior to diminution by the cost of such sales or services; (ii) An understatement of gross income by reason of an overstatement of unrecovered cost or other basis is an omission from gross income; and (iii) In determining the amount omitted from gross income (other than in the case of an overstatement of unrecovered cost or other basis), there shall not be taken into account any amount which is omitted from gross income stated in the return if such amount is disclosed in the return, or in a statement attached to the return, in …

“return” applies throughout its chapter

the term “return” means the return required to be filed by the taxpayer (and does not include a return of any person from whom the taxpayer has received an item of income, gain, loss, deduction, or credit). (b) Time return deemed filed (1) Early return For purposes of this section, a return of tax imposed by this title, except tax imposed by chapter 3, 4, 21, or 24, filed before the last day prescribed by law or by regulations promulgated pursuant to law for the filing thereof, shall be considered as filed on such last day.

“designated summons” applies in that section

The term “designated summons” means any summons issued for purposes of determining the amount of any tax imposed by this title if— (i) the issuance of such summons is preceded by a review and written approval of such issuance by the Commissioner of the relevant operating division of the Internal Revenue Service and the Chief Counsel which— (I) states facts clearly establishing that the Secretary has made reasonable requests for the information that is the subject of the summons, and (II) is attached to such summons, (ii) such summons is issued at least 60 days before the day on which the period prescribed in section 6501 for the assessment of such tax expires (determined with regard to …

“judicial enforcement period” applies in that section

the term “judicial enforcement period” means, with respect to any summons, the period— (A) which begins on the day on which a court proceeding with respect to such summons is brought, and (B) which ends on the day on which there is a final resolution as to the summoned person’s response to such summons. (4) Establishment that reasonable requests for information were made In any court proceeding described in paragraph (3), the Secretary shall establish that reasonable requests were made for the information that is the subject of the summons. (k) Cross references For suspension in case of— (1) Deficiency dividends of a personal holding company, see section 547(f).

“credit carryback” applies in that section

the term “credit carryback” means any business carryback under section 39. (5) Special period of limitation with respect to self-employment tax in certain cases If the claim for credit or refund relates to an overpayment of the tax imposed by chapter 2 (relating to the tax on self-employment income) attributable to an agreement, or modification of an agreement, made pursuant to section 218 of the Social Security Act (relating to coverage of State and local employees), and if the allowance of a credit or refund of such overpayment is otherwise prevented by the operation of any law or rule of law other than section 7122 (relating to compromises), such credit or refund may be allowed or made …

“2-percent portion” applies in that section

the term “2-percent portion” means the lesser of— (A) (i) the amount of the tentative tax which would be determined under the rate schedule set forth in section 2001(c) if the amount with respect to which such tentative tax is to be computed were the sum of $1,000,000 and the applicable exclusion amount in effect under section 2010(c), reduced by (ii) the applicable credit amount in effect under section 2010(c), or (B) the amount of the tax imposed by chapter 11 which is extended as provided in section 6166.

“credit carryback” applies in that section

the term “credit carryback” has the meaning given such term by section 6511(d)(4)(C). (4) Filing date For purposes of this subsection,

“filing date” applies in that section

the term “filing date” has the meaning given to such term by section 6611(f)(4)(A). (e) Applicable rules Except as otherwise provided in this title— (1) Interest treated as tax Interest prescribed under this section on any tax shall be paid upon notice and demand, and shall be assessed, collected, and paid in the same manner as taxes. Any reference to this title (except subchapter B of chapter 63, relating to deficiency procedures) to any tax imposed by this title shall be deemed also to refer to interest imposed by this section on such tax.

“30-day letter” applies in that section

The term “30-day letter” means the first letter of proposed deficiency which allows the taxpayer an opportunity for administrative review in the Internal Revenue Service Independent Office of Appeals. (4) Rate of interest The rate of interest under this subsection shall be the Federal short-term rate determined under section 6621(b), compounded daily. (e) Use of deposits (1) Payment of tax Except as otherwise provided by the taxpayer, deposits shall be treated as used for the payment of tax in the order deposited. (2) Returns of deposits Deposits shall be treated as returned to the taxpayer on a last-in, first-out basis.

“disputable item” applies in that section

The term “disputable item” means any item of income, gain, loss, deduction, or credit if the taxpayer— (i) has a reasonable basis for its treatment of such item, and (ii) reasonably believes that the Secretary also has a reasonable basis for disallowing the taxpayer’s treatment of such item. (B) 30-day letter

“disputable tax” applies in that section

the term “disputable tax” means the amount of tax specified at the time of the deposit as the taxpayer’s reasonable estimate of the maximum amount of any tax attributable to disputable items. (B) Safe harbor based on 30-day letter In the case of a taxpayer who has been issued a 30-day letter, the maximum amount of tax under subparagraph (A) shall not be less than the amount of the proposed deficiency specified in such letter. (3) Other definitions For purposes of paragraph (2)— (A) Disputable item

“credit carryback” applies in that section

the term “credit carryback” has the meaning given such term by section 6511(d)(4)(C). (4) Special rules for paragraphs (1), (2), and (3) (A) Filing date For purposes of this subsection,

“filing date” applies in that section

the term “filing date” means the last date prescribed for filing the return of tax imposed by subtitle A for the taxable year (determined without regard to extensions). (B) Coordination with subsection (e) (i) In general For purposes of subsection (e)— (I) any overpayment described in paragraph (1), (2), or (3) shall be treated as an overpayment for the loss year, (II) such subsection shall be applied with respect to such overpayment by treating the return for the loss year as not filed before claim for such overpayment is filed. (ii) Loss year For purposes of this subparagraph,

“loss year” applies in that section

the term “loss year” means— (I) in the case of a carryback of a net operating loss or net capital loss, the taxable year in which such loss arises, (II) in the case of a carryback of taxes paid or accrued to foreign countries or possessions of the United States, the taxable year in which such taxes were in fact paid or accrued (or, with respect to any portion of such carryback from a taxable year attributable to a net operating loss carryback or a capital loss carryback from a subsequent taxable year, such subsequent taxable year), and (III) in the case of a credit carryback (as defined in paragraph (3)(B)), the taxable year in which such credit carryback arises (or, with respect to any …

“large corporate underpayment” applies in that section

The term “large corporate underpayment” means any underpayment of a tax by a C corporation for any taxable period if the amount of such underpayment for such period exceeds $100,000. (B) Taxable period For purposes of subparagraph (A),

“taxable period” applies in that section

the term “taxable period” means— (i) in the case of any tax imposed by subtitle A, the taxable year, or (ii) in the case of any other tax, the period to which the underpayment relates. (d) Elimination of interest on overlapping periods of tax overpayments and underpayments To the extent that, for any period, interest is payable under subchapter A and allowable under subchapter B on equivalent underpayments and overpayments by the same taxpayer of tax imposed by this title, the net rate of interest under this section on such amounts shall be zero for such period.

“person” applies in that section

the term “person” means any officer, director, trustee, employee, or other individual who is under a duty to perform the act in respect of which the violation occurs. (7) Adjustment for inflation (A) In general In the case of any failure relating to a return required to be filed in a calendar year beginning after 2014, each of the dollar amounts under paragraphs (1), (2), and (3) shall be increased by an amount equal to such dollar amount multiplied by the cost-of-living adjustment determined under section 1(f)(3) for the calendar year determined by substituting “calendar year 2013” for “calendar year 2016” in subparagraph (A)(ii) thereof.

“adjusted self-employment income” applies in that section

The term “adjusted self-employment income” means self-employment income (as defined in section 1402(b)); except that section 1402(b) shall be applied by placing wages (within the meaning of section 1402(b)) for months in the taxable year ending before the due date for the installment on an annualized basis consistent with clause (i).

“required annual payment” applies in that section

the term “required annual payment” means the lesser of— (i) 90 percent of the tax shown on the return for the taxable year (or, if no return is filed, 90 percent of the tax for such year), or (ii) 100 percent of the tax shown on the return of the individual for the preceding taxable year. Clause (ii) shall not apply if the preceding taxable year was not a taxable year of 12 months or if the individual did not file a return for such preceding taxable year.

“tax” applies in that section

the term “tax” means— (1) the tax imposed by chapter 1 (other than any increase in such tax by reason of section 143(m)), plus (2) the tax imposed by chapter 2, plus (3) the tax imposed by chapter 2A, minus (4) the credits against tax provided by part IV of subchapter A of chapter 1, other than the credit against tax provided by section 31 (relating to tax withheld on wages).

“closely held real estate investment trust” applies in that section

the term “closely held real estate investment trust” means a real estate investment trust with respect to which 5 or fewer persons own (after application of subsection (d)(5) of section 856) 50 percent or more (by vote or value) of the stock or beneficial interests in the trust. (f) Exception where tax is small amount No addition to tax shall be imposed under subsection (a) for any taxable year if the tax shown on the return for such taxable year (or, if no return is filed, the tax) is less than $500. (g) Definitions and special rules (1) Tax For purposes of this section,

“filing month” applies in that section

The term “filing month” means the month in which the installment is required to be paid. (iii) Reorganization, etc. The Secretary may by regulations provide for the determination of the base period percentage in the case of reorganizations, new corporations, and other similar circumstances. (4) Treatment of subpart F income (A) In general Any amounts required to be included in gross income under section 951(a) (and credits properly allocable thereto) shall be taken into account in computing any annualized income installment under paragraph (2) in a manner similar to the manner under which partnership income inclusions (and credits properly allocable thereto) are taken into account.

“large corporation” applies in that section

the term “large corporation” means any corporation if such corporation (or any predecessor corporation) had taxable income of $1,000,000 or more for any taxable year during the testing period. (B) Rules for applying subparagraph (A) (i) Testing period For purposes of subparagraph (A),

“modified taxable income” applies in that section

The term “modified taxable income” has the meaning given such term by section 59A(c)(1). (C) Election for different annualization periods (i) If the taxpayer makes an election under this clause— (I) subclause (I) of subparagraph (A)(i) shall be applied by substituting “2 months” for “3 months”, (II) subclause (II) of subparagraph (A)(i) shall be applied by substituting “4 months” for “3 months”, (III) subclause (III) of subparagraph (A)(i) shall be applied by substituting “7 months” for “6 months”, and (IV) subclause (IV) of subparagraph (A)(i) shall be applied by substituting “10 months” for “9 months”.

“noncontrolling shareholder” applies in that section

the term “noncontrolling shareholder” means, with respect to any corporation, a shareholder which (as of the beginning of the taxable year for which the installment is being made) does not own (within the meaning of section 958(a)), and is not treated as owning (within the meaning of section 958(b)), more than 50 percent (by vote or value) of the stock in the corporation.

“required annual payment” applies in that section

the term “required annual payment” means the lesser of— (i) 100 percent of the tax shown on the return for the taxable year (or, if no return is filed, 100 percent of the tax for such year), or (ii) 100 percent of the tax shown on the return of the corporation for the preceding taxable year. Clause (ii) shall not apply if the preceding taxable year was not a taxable year of 12 months, or the corporation did not file a return for such preceding taxable year showing a liability for tax. (2) Large corporations required to pay 100 percent of current year tax (A) In general Except as provided in subparagraph (B), clause (ii) of paragraph (1)(B) shall not apply in the case of a large corporation.

“tax” applies in that section

the term “tax” means the excess of— (A) the sum of— (i) the tax imposed by section 11 or subchapter L of chapter 1, whichever applies, (ii) the tax imposed by section 55, (iii) the tax imposed by section 59A, plus (iv) the tax imposed by section 887, over (B) the credits against tax provided by part IV of subchapter A of chapter 1. For purposes of the preceding sentence, in the case of a foreign corporation subject to taxation under section 11 or 1201(a), or under subchapter L of chapter 1, the tax imposed by section 881 shall be treated as a tax imposed by section 11. (2) Large corporation (A) In general For purposes of this section,

“testing period” applies in that section

the term “testing period” means the 3 taxable years immediately preceding the taxable year involved. (ii) Members of controlled group For purposes of applying subparagraph (A) to any taxable year in the testing period with respect to corporations which are component members of a controlled group of corporations for such taxable year, the $1,000,000 amount specified in subparagraph (A) shall be divided among such members under rules similar to the rules of section 1561. (iii) Certain carrybacks and carryovers not taken into account For purposes of subparagraph (A), taxable income shall be determined without regard to any amount carried to the taxable year under section 172 or 1212(a).

“applicable percentage” applies in that section

the term “applicable percentage” means— (i) 2 percent if the failure is for not more than 5 days, (ii) 5 percent if the failure is for more than 5 days but not more than 15 days, and (iii) 10 percent if the failure is for more than 15 days. (B) Special rule In any case where the tax is not deposited on or before the earlier of— (i) the day 10 days after the date of the first delinquency notice to the taxpayer under section 6303, or (ii) the day on which notice and demand for immediate payment is given under section 6861 or 6862 or the last sentence of section 6331(a), the applicable percentage shall be 15 percent. (2) Underpayment