26 U.S.C. § 6402 — Authority to make credits or refunds

Page 3598 TITLE 26—INTERNAL REVENUE CODE § 6402 if included in the amendments made by section 701(b) of the Tax Reform Act of 1986 [Pub. L. 99–514].’’ EFFECTIVE DATE OF 1988 AMENDMENT Amendment by Pub. L. 100–647 applicable to taxable years beginning after Dec. 31, 1987, see section 1012(s)(1)(D) of Pub. L. 100–647, set out as a note under section 1446 of this title. EFFECTIVE DATE OF 1986 AMENDMENT Amendment by Pub. L. 99–514 applicable to distribu- tions after Dec. 31, 1987, or, if earlier, the effective date of the initial regulations issued under section 1446 of this title, which date shall not be earlier than Jan. 1, 1987, see section 1246(d) of Pub. L. 99–514, set out as an Effective Date note under section 1446 of this title. EFFECTIVE DATE OF 1984 AMENDMENT Amendment by section 474(r)(36) of Pub. L. 98–369 ap- plicable to taxable years beginning after Dec. 31, 1983, and to carrybacks from such years, see section 475(a) of Pub. L. 98–369, set out as a note under section 21 of this title. Amendment by section 735(c)(16) of Pub. L. 98–369 ef- fective, except as otherwise provided, as if included in the provisions of the Highway Revenue Act of 1982, title V of Pub. L. 97–424, to which such amendment relates, see section 736 of Pub. L. 98–369, set out as a note under section 4051 of this title. EFFECTIVE DATE OF 1980 AMENDMENTS Amendment by Pub. L. 96–223 applicable to qualified investment for taxable years beginning after Dec. 31, 1979, see section 223(b)(3) of Pub. L. 96–223, set out as a note under section 46 of this title. Amendment by Pub. L. 96–222 effective, except as oth- erwise provided, as if it had been included in the provi- sions of the Revenue Act of 1978, Pub. L. 95–600, to which such amendment relates, see section 201 of Pub. L. 96–222, set out as a note under section 32 of this title. EFFECTIVE DATE OF 1978 AMENDMENT Amendment by Pub. L. 95–600, to the extent amend- ment relates to chapter 1 or 5 of this title, applicable to taxable years ending on or after Dec. 31, 1975, and, to the extent amendment relates to wage withholding under chapter 24 of this title, applicable to remunera- tion paid on or after the first day of the first month which begins more than 90 days after Nov. 6, 1978, see section 701(u)(15)(E) of Pub. L. 95–600, set out as a note under section 6013 of this title. EFFECTIVE DATE OF 1976 AMENDMENT Amendment by Pub. L. 94–455 applicable to distribu- tions made in taxable years beginning after Dec. 31, 1975, see section 701(h) of Pub. L. 94–455, set out as a note under section 667 of this title. EFFECTIVE DATE OF 1975 AMENDMENT Amendment by Pub. L. 94–12 applicable to taxable years beginning after Dec. 31, 1974, see section 209(b) of Pub. L. 94–12, as amended, set out as a note under sec- tion 32 of this title. EFFECTIVE DATE OF 1970 AMENDMENT Amendment by Pub. L. 91–258 effective July 1, 1970, see section 211(a) of Pub. L. 91–258, set out as a note under section 4041 of this title. EFFECTIVE DATE OF 1969 AMENDMENT Amendment by Pub. L. 91–172 applicable to taxable years beginning before Jan. 1, 1970, see section 331(d) of Pub. L. 91–172, set out as a note under section 665 of this title. EFFECTIVE DATE OF 1965 AMENDMENT Amendment by Pub. L. 89–44 applicable to taxable years beginning on or after July 1, 1965, see section 809(f) of Pub. L. 89–44, set out as a note under section 6420 of this title. § 6402. Authority to make credits or refunds (a) General rule In the case of any overpayment, the Sec- retary, within the applicable period of limita- tions, may credit the amount of such overpay- ment, including any interest allowed thereon, against any liability in respect of an internal revenue tax on the part of the person who made the overpayment and shall, subject to sub- sections (c), (d), (e), and (f), refund any balance to such person. (b) Credits against estimated tax The Secretary is authorized to prescribe regu- lations providing for the crediting against the estimated income tax for any taxable year of the amount determined by the taxpayer or the Secretary to be an overpayment of the income tax for a preceding taxable year. (c) Offset of past-due support against overpay- ments The amount of any overpayment to be re- funded to the person making the overpayment shall be reduced by the amount of any past-due support (as defined in section 464(c) of the Social Security Act) owed by that person of which the Secretary has been notified by a State in ac- cordance with section 464 of such Act. The Sec- retary shall remit the amount by which the overpayment is so reduced to the State col- lecting such support and notify the person mak- ing the overpayment that so much of the over- payment as was necessary to satisfy his obliga- tion for past-due support has been paid to the State. The Secretary shall apply a reduction under this subsection first to an amount cer- tified by the State as past due support under section 464 of the Social Security Act before any other reductions allowed by law. This subsection shall be applied to an overpayment prior to its being credited to a person’s future liability for an internal revenue tax. For purposes of this subsection, any reference to a State shall in- clude a reference to any Indian tribe or tribal organization receiving a grant under section 455(f) of the Social Security Act. (d) Collection of debts owed to Federal agencies (1) In general Upon receiving notice from any Federal agency that a named person owes a past-due legally enforceable debt (other than past-due support subject to the provisions of subsection (c)) to such agency, the Secretary shall— (A) reduce the amount of any overpayment payable to such person by the amount of such debt; (B) pay the amount by which such over- payment is reduced under subparagraph (A) to such agency; and (C) notify the person making such over- payment that such overpayment has been re- duced by an amount necessary to satisfy such debt. (2) Priorities for offset Any overpayment by a person shall be re- duced pursuant to this subsection after such Page 3599 TITLE 26—INTERNAL REVENUE CODE § 6402 overpayment is reduced pursuant to sub- section (c) with respect to past-due support collected pursuant to an assignment under section 408(a)(3) of the Social Security Act (42 U.S.C. 608(a)(3)) and before such overpayment is reduced pursuant to subsections (e) and (f) and before such overpayment is credited to the future liability for tax of such person pursuant to subsection (b). If the Secretary receives no- tice from a Federal agency or agencies of more than one debt subject to paragraph (1) that is owed by a person to such agency or agencies, any overpayment by such person shall be ap- plied against such debts in the order in which such debts accrued. (3) Treatment of OASDI overpayments (A) Requirements Paragraph (1) shall apply with respect to an OASDI overpayment only if the require- ments of paragraphs (1) and (2) of section 3720A(f) of title 31, United States Code, are met with respect to such overpayment. (B) Notice; protection of other persons filing joint return (i) Notice In the case of a debt consisting of an OASDI overpayment, if the Secretary de- termines upon receipt of the notice re- ferred to in paragraph (1) that the refund from which the reduction described in paragraph (1)(A) would be made is based upon a joint return, the Secretary shall— (I) notify each taxpayer filing such joint return that the reduction is being made from a refund based upon such re- turn, and (II) include in such notification a de- scription of the procedures to be fol- lowed, in the case of a joint return, to protect the share of the refund which may be payable to another person. (ii) Adjustments based on protections given to other taxpayers on joint return If the other person filing a joint return with the person owing the OASDI overpay- ment takes appropriate action to secure his or her proper share of the refund sub- ject to reduction under this subsection, the Secretary shall pay such share to such other person. The Secretary shall deduct the amount of such payment from amounts which are derived from subse- quent reductions in refunds under this sub- section and are payable to a trust fund re- ferred to in subparagraph (C). (C) Deposit of amount of reduction into ap- propriate trust fund In lieu of payment, pursuant to paragraph (1)(B), of the amount of any reduction under this subsection to the Commissioner of So- cial Security, the Secretary shall deposit such amount in the Federal Old-Age and Survivors Insurance Trust Fund or the Fed- eral Disability Insurance Trust Fund, which- ever is certified to the Secretary as appro- priate by the Commissioner of Social Secu- rity. (D) OASDI overpayment For purposes of this paragraph, the term ‘‘OASDI overpayment’’ means any overpay- ment 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 enforce- able State income tax obligation to such State, the Secretary shall, under such condi- tions 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 over- payment is reduced under subparagraph (A) to such State and notify such State of such person’s name, taxpayer identification num- ber, address, and the amount collected; and (C) notify the person making such over- payment that the overpayment has been re- duced by an amount necessary to satisfy a past-due, legally enforceable State income tax obligation. If an offset is made pursuant to a joint return, the notice under subparagraph (B) shall in- clude the names, taxpayer identification num- bers, and addresses of each person filing such return. (2) Offset permitted only against residents of State seeking offset Paragraph (1) shall apply to an overpayment by any person for a taxable year only if the ad- dress shown on the Federal return for such taxable year of the overpayment is an address within the State seeking the offset. (3) Priorities for offset Any overpayment by a person shall be re- duced pursuant to this subsection— (A) after such overpayment is reduced pur- suant to— (i) subsection (a) with respect to any li- ability for any internal revenue tax on the part of the person who made the overpay- ment; (ii) subsection (c) with respect to past- due support; and (iii) subsection (d) with respect to any past-due, legally enforceable debt owed to a Federal agency; and (B) before such overpayment is credited to the future liability for any Federal internal revenue tax of such person pursuant to sub- section (b). If the Secretary receives notice from one or more agencies of the State of more than one debt subject to paragraph (1) or subsection (f) that is owed by such person to such an agency, any overpayment by such person shall be ap- plied against such debts in the order in which such debts accrued. (4) Notice; consideration of evidence No State may take action under this sub- section until such State— Page 3600 TITLE 26—INTERNAL REVENUE CODE § 6402 (A) notifies by certified mail with return receipt the person owing the past-due State income tax liability that the State proposes to take action pursuant to this section; (B) gives such person at least 60 days to present evidence that all or part of such li- ability is not past-due or not legally enforce- able; (C) considers any evidence presented by such person and determines that an amount of such debt is past-due and legally enforce- able; and (D) satisfies such other conditions as the Secretary may prescribe to ensure that the determination made under subparagraph (C) is valid and that the State has made reason- able efforts to obtain payment of such State income tax obligation. (5) Past-due, legally enforceable State income tax obligation For purposes of this subsection, the term ‘‘past-due, legally enforceable State income tax obligation’’ means a debt— (A)(i) which resulted from— (I) a judgment rendered by a court of competent jurisdiction which has deter- mined an amount of State income tax to be due; or (II) a determination after an administra- tive 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 col- lected, the time for redetermination of which has expired, and which has not been delinquent for more than 10 years. For purposes of this paragraph, the term ‘‘State income tax’’ includes any local income tax administered by the chief tax administra- tion agency of the State. (6) Regulations The Secretary shall issue regulations pre- scribing the time and manner in which States must submit notices of past-due, legally en- forceable 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 re- quire States to pay a fee to reimburse the Sec- retary for the cost of applying such procedure. Any fee paid to the Secretary pursuant to the preceding sentence shall be used to reimburse appropriations which bore all or part of the cost of applying such procedure. (7) Erroneous payment to State Any State receiving notice from the Sec- retary that an erroneous payment has been made to such State under paragraph (1) shall pay promptly to the Secretary, in accordance with such regulations as the Secretary may prescribe, an amount equal to the amount of such erroneous payment (without regard to whether any other amounts payable to such State under such paragraph have been paid to such State). (f) Collection of unemployment compensation debts (1) In general Upon receiving notice from any State that a named person owes a covered unemployment compensation debt to such State, the Sec- retary 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 covered unemployment compensation debt; (B) pay the amount by which such over- payment is reduced under subparagraph (A) to such State and notify such State of such person’s name, taxpayer identification num- ber, address, and the amount collected; and (C) notify the person making such over- payment that the overpayment has been re- duced by an amount necessary to satisfy a covered unemployment compensation debt. If an offset is made pursuant to a joint return, the notice under subparagraph (C) shall in- clude information related to the rights of a spouse of a person subject to such an offset. (2) Priorities for offset Any overpayment by a person shall be re- duced pursuant to this subsection— (A) after such overpayment is reduced pur- suant to— (i) subsection (a) with respect to any li- ability for any internal revenue tax on the part of the person who made the overpay- ment; (ii) subsection (c) with respect to past- due support; and (iii) subsection (d) with respect to any past-due, legally enforceable debt owed to a Federal agency; and (B) before such overpayment is credited to the future liability for any Federal internal revenue tax of such person pursuant to sub- section (b). If the Secretary receives notice from a State or States of more than one debt subject to paragraph (1) or subsection (e) that is owed by a person to such State or States, any overpay- ment by such person shall be applied against such debts in the order in which such debts ac- crued. (3) Notice; consideration of evidence No State may take action under this sub- section until such State— (A) notifies the person owing the covered unemployment compensation debt that the State proposes to take action pursuant to this section; (B) provides such person at least 60 days to present evidence that all or part of such li- ability is not legally enforceable or is not a covered unemployment compensation debt; (C) considers any evidence presented by such person and determines that an amount of such debt is legally enforceable and is a covered unemployment compensation debt; and Page 3601 TITLE 26—INTERNAL REVENUE CODE § 6402 (D) satisfies such other conditions as the Secretary may prescribe to ensure that the determination made under subparagraph (C) is valid and that the State has made reason- able efforts to obtain payment of such cov- ered unemployment compensation debt. (4) Covered unemployment compensation debt For purposes of this subsection, 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 unemploy- ment 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. (5) Regulations (A) In general The Secretary may issue regulations pre- scribing the time and manner in which States must submit notices of covered un- employment compensation debt and the nec- essary information that must be contained in or accompany such notices. The regula- tions may specify the minimum amount of debt to which the reduction procedure estab- lished by paragraph (1) may be applied. (B) Fee payable to Secretary The regulations may require States to pay a fee to the Secretary, which may be de- ducted from amounts collected, to reimburse the Secretary for the cost of applying such procedure. Any fee paid to the Secretary pursuant to the preceding sentence shall be used to reimburse appropriations which bore all or part of the cost of applying such pro- cedure. (C) Submission of notices through Secretary of Labor The regulations may include a require- ment that States submit notices of covered unemployment compensation debt to the Secretary via the Secretary of Labor in ac- cordance with procedures established by the Secretary of Labor. Such procedures may re- quire States to pay a fee to the Secretary of Labor to reimburse the Secretary of Labor for the costs of applying this subsection. Any such fee shall be established in con- sultation with the Secretary of the Treas- ury. Any fee paid to the Secretary of Labor may be deducted from amounts collected and shall be used to reimburse the appro- priation account which bore all or part of the cost of applying this subsection. (6) Erroneous payment to State Any State receiving notice from the Sec- retary that an erroneous payment has been made to such State under paragraph (1) shall pay promptly to the Secretary, in accordance with such regulations as the Secretary may prescribe, an amount equal to the amount of such erroneous payment (without regard to whether any other amounts payable to such State under such paragraph have been paid to such State). (g) Review of reductions No court of the United States shall have juris- diction to hear any action, whether legal or eq- uitable, brought to restrain or review a reduc- tion authorized by subsection (c), (d), (e), or (f). No such reduction shall be subject to review by the Secretary in an administrative proceeding. No action brought against the United States to recover the amount of any such reduction shall be considered to be a suit for refund of tax. This subsection does not preclude any legal, equi- table, or administrative action against the Fed- eral agency or State to which the amount of such reduction was paid or any such action against the Commissioner of Social Security which is otherwise available with respect to re- coveries of overpayments of benefits under sec- tion 204 of the Social Security Act. (h) Federal agency For purposes of this section, the term ‘‘Fed- eral agency’’ means a department, agency, or in- strumentality of the United States, and includes a Government corporation (as such term is de- fined 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. (k) Refunds to certain fiduciaries of insolvent members of affiliated groups Notwithstanding any other provision of law, in the case of an insolvent corporation which is a member of an affiliated group of corporations filing a consolidated return for any taxable year and which is subject to a statutory or court-ap- pointed fiduciary, the Secretary may by regula- tion provide that any refund for such taxable year may be paid on behalf of such insolvent corporation to such fiduciary to the extent that the Secretary determines that the refund is at- tributable to losses or credits of such insolvent corporation. (l) Explanation of reason for refund disallowance In the case of a disallowance of a claim for re- fund, the Secretary shall provide the taxpayer with an explanation for such disallowance. (m) Earliest date for certain refunds No credit or refund of an overpayment for a taxable year shall be made to a taxpayer before the 15th day of the second month following the close of such taxable year if a credit is allowed to such taxpayer under section 24 (by reason of subsection (d) thereof) or 32 for such taxable year. Page 3602 TITLE 26—INTERNAL REVENUE CODE § 6402 (n) Misdirected direct deposit refund Not later than the date which is 6 months after the date of the enactment of the Taxpayer First Act, the Secretary shall prescribe regula- tions to establish procedures to allow for— (1) taxpayers to report instances in which a refund made by the Secretary by electronic funds transfer was not transferred to the ac- count of the taxpayer; (2) coordination with financial institutions for the purpose of— (A) identifying the accounts to which transfers described in paragraph (1) were made; and (B) recovery of the amounts so transferred; and (3) the refund to be delivered to the correct account of the taxpayer. (Aug. 6, 1954, ch. 736, 68A Stat. 791; Pub. L. 94–455, title XIX, § 1906(b)(13) (A), (K), Oct. 4, 1976, 90 Stat. 1834, 1835; Pub. L. 97–35, title XXIII, § 2331(c), Aug. 13, 1981, 95 Stat. 861; Pub. L. 98–369, div. B, title VI, § 2653(b)(1), (2), July 18, 1984, 98 Stat. 1154, 1155; Pub. L. 98–378, § 21(e), Aug. 16, 1984, 98 Stat. 1325; Pub. L. 100–647, title VI, § 6276, Nov. 10, 1988, 102 Stat. 3753; Pub. L. 101–508, title V, § 5129(c), Nov. 5, 1990, 104 Stat. 1388–288; Pub. L. 103–296, title I, § 108(h)(7), Aug. 15, 1994, 108 Stat. 1487; Pub. L. 104–134, title III, § 31001(u)(2), Apr. 26, 1996, 110 Stat. 1321–375; Pub. L. 104–193, title I, § 110(l)(7), Aug. 22, 1996, 110 Stat. 2173; Pub. L. 105–33, title V, § 5514(a)(1), Aug. 5, 1997, 111 Stat. 620; Pub. L. 105–206, title III, §§ 3505(a), 3711(a), (c), July 22, 1998, 112 Stat. 771, 779, 781; Pub. L. 109–171, title VII, § 7301(d), Feb. 8, 2006, 120 Stat. 144; Pub. L. 110–328, § 3(a), (d), Sept. 30, 2008, 122 Stat. 3570, 3573; Pub. L. 111–291, title VIII, § 801(a), Dec. 8, 2010, 124 Stat. 3157; Pub. L. 111–312, title V, § 503(a), Dec. 17, 2010, 124 Stat. 3308; Pub. L. 114–113, div. Q, title II, § 201(b), Dec. 18, 2015, 129 Stat. 3076; Pub. L. 115–141, div. U, title IV, § 401(a)(285)–(287), Mar. 23, 2018, 132 Stat. 1198; Pub. L. 116–25, title I, § 1407, July 1, 2019, 133 Stat. 1001; Pub. L. 118–258, title II, § 202(a)(2)(F), Jan. 4, 2025, 138 Stat. 2972.) Editorial Notes REFERENCES IN TEXT The Social Security Act, referred to in subsecs. (c), (d)(3)(D), and (g), is act Aug. 14, 1935, ch. 531, 49 Stat. 620. Title II of the Act is classified generally to sub- chapter II (§ 401 et seq.) of chapter 7 of Title 42, The Public Health and Welfare. Sections 204, 455, and 464 of the Act are classified to sections 404, 655, and 664, re- spectively, of Title 42. For complete classification of this Act to the Code, see section 1305 of Title 42 and Ta- bles. The date of the enactment of the Taxpayer First Act, referred to in subsec. (n), is the date of enactment of Pub. L. 116–25, which was approved July 1, 2019. AMENDMENTS 2025—Subsec. (c). Pub. L. 118–258 inserted at end ‘‘For purposes of this subsection, any reference to a State shall include a reference to any Indian tribe or tribal organization receiving a grant under section 455(f) of the Social Security Act.’’ 2019—Subsec. (n). Pub. L. 116–25 added subsec. (n). 2018—Subsec. (a). Pub. L. 115–141, § 401(a)(285), sub- stituted ‘‘(f), refund’’ for ‘‘(f) refund’’. Subsec. (c). Pub. L. 115–141, § 401(a)(286), substituted ‘‘of such Act’’ for ‘‘of of such Act’’. Subsec. (d)(2). Pub. L. 115–141, § 401(a)(287), substituted ‘‘section 408(a)(3) of the Social Security Act (42 U.S.C. 608(a)(3))’’ for ‘‘section 402(a)(26) of the Social Security Act’’. 2015—Subsec. (m). Pub. L. 114–113 added subsec. (m). 2010—Subsec. (f). Pub. L. 111–291, § 801(a)(1), struck out ‘‘resulting from fraud’’ after ‘‘debts’’ in heading. Subsec. (f)(3). Pub. L. 111–291, § 801(a)(2), redesignated par. (4) as (3) and struck out former par. (3). Prior to amendment, text of par. (3) read as follows: ‘‘Paragraph (1) shall apply to an overpayment by any person for a taxable year only if the address shown on the Federal return for such taxable year of the overpayment is an address within the State seeking the offset.’’ Subsec. (f)(3)(A). Pub. L. 111–291, § 801(a)(3)(A), struck out ‘‘by certified mail with return receipt’’ after ‘‘noti- fies’’. Subsec. (f)(3)(B). Pub. L. 111–291, § 801(a)(3)(B), sub- stituted ‘‘is not a covered unemployment compensation debt’’ for ‘‘due to fraud’’. Subsec. (f)(3)(C). Pub. L. 111–312 substituted ‘‘is a cov- ered unemployment compensation debt’’ for ‘‘is not a covered unemployment compensation debt’’. Pub. L. 111–291, § 801(a)(3)(C), substituted ‘‘is not a covered unemployment compensation debt’’ for ‘‘due to fraud’’. Subsec. (f)(4). Pub. L. 111–291, § 801(a)(2), redesignated par. (5) as (4). Former par. (4) redesignated (3). Subsec. (f)(4)(A). Pub. L. 111–291, § 801(a)(4)(A), in- serted ‘‘or the person’s failure to report earnings’’ after ‘‘due to fraud’’ and struck out ‘‘for not more than 10 years’’ after ‘‘remains uncollected’’. Subsec. (f)(4)(B). Pub. L. 111–291, § 801(a)(4)(B), struck out ‘‘due to fraud’’ after ‘‘to be liable’’ and ‘‘for not more than 10 years’’ after ‘‘remain uncollected’’. Subsec. (f)(5) to (8). Pub. L. 111–291, § 801(a)(2), redesig- nated pars. (5) to (7) as (4) to (6), respectively, and struck out par. (8). Prior to amendment, text of par. (8) read as follows: ‘‘This section shall not apply to refunds payable after the date which is 10 years after the date of the enactment of this subsection.’’ 2008—Subsec. (a). Pub. L. 110–328, § 3(d)(1), substituted ‘‘(c), (d), (e), and (f)’’ for ‘‘(c), (d), and (e),’’. Subsec. (d)(2). Pub. L. 110–328, § 3(d)(2), substituted ‘‘and before such overpayment is reduced pursuant to subsections (e) and (f)’’ for ‘‘and before such overpay- ment is reduced pursuant to subsection (e)’’. Subsec. (e)(3). Pub. L. 110–328, § 3(d)(3), inserted ‘‘or subsection (f)’’ after ‘‘paragraph (1)’’ in concluding pro- visions. Subsec. (f). Pub. L. 110–328, § 3(a), added subsec. (f). Former subsec. (f) redesignated (g). Subsec. (g). Pub. L. 110–328, § 3(a), (d)(4), redesignated subsec. (f) as (g) and substituted ‘‘(c), (d), (e), or (f)’’ for ‘‘(c), (d), or (e)’’. Former subsec. (g) redesignated (h). Subsec. (h). Pub. L. 110–328, § 3(a), redesignated sub- sec. (g) as (h). Former subsec. (h) redesignated (i). Subsec. (i). Pub. L. 110–328, § 3(a), (d)(5), redesignated subsec. (h) as (i) and substituted ‘‘subsection (c), (e), or (f)’’ for ‘‘subsection (c) or (e)’’. Former subsec. (i) redes- ignated (j). Subsecs. (j) to (l). Pub. L. 110–328, § 3(a), redesignated subsecs. (i) to (k) as (j) to (l), respectively. 2006—Subsec. (c). Pub. L. 109–171 substituted ‘‘of such Act.’’ for ‘‘the Social Security Act.’’ in first sentence and ‘‘The Secretary shall apply a reduction under this subsection first to an amount certified by the State as past due support under section 464 of the Social Secu- rity Act before any other reductions allowed by law.’’ for ‘‘A reduction under this subsection shall be applied first to satisfy any past-due support which has been as- signed to the State under section 402(a)(26) or 471(a)(17) of the Social Security Act, and shall be applied to sat- isfy any other past-due support after any other reduc- tions allowed by law (but before a credit against future liability for an internal revenue tax) have been made.’’ in third sentence. 1998—Subsec. (a). Pub. L. 105–206, § 3711(c)(1), sub- stituted ‘‘(c), (d), and (e)’’ for ‘‘(c) and (d)’’. Subsec. (d)(2). Pub. L. 105–206, § 3711(c)(2), substituted ‘‘and before such overpayment is reduced pursuant to Page 3603 TITLE 26—INTERNAL REVENUE CODE § 6402 subsection (e) and before such overpayment’’ for ‘‘and before such overpayment’’. Subsec. (e). Pub. L. 105–206, § 3711(a), added subsec. (e). Former subsec. (e) redesignated (f). Subsec. (f). Pub. L. 105–206, § 3711(a), (c)(3), redesig- nated subsec. (e) as (f) and substituted ‘‘(c), (d), or (e)’’ for ‘‘(c) or (d)’’ and ‘‘Federal agency or State’’ for ‘‘Fed- eral agency’’. Former subsec. (f) redesignated (g). Subsec. (g). Pub. L. 105–206, § 3711(a), redesignated subsec. (f) as (g). Former subsec. (g) redesignated (h). Subsec. (h). Pub. L. 105–206, § 3711(a), (c)(4), redesig- nated subsec. (g) as (h) and substituted ‘‘subsection (c) or (e)’’ for ‘‘subsection (c)’’. Former subsec. (h) redesig- nated (i). Subsec. (i). Pub. L. 105–206, § 3711(a), redesignated sub- sec. (h) as (i). Former subsec. (i) redesignated (j). Subsec. (j). Pub. L. 105–206, § 3711(a), redesignated sub- sec. (i) as (j). Former subsec. (j) redesignated (k). Pub. L. 105–206, § 3505(a), added subsec. (j). Subsec. (k). Pub. L. 105–206, § 3711(a), redesignated subsec. (j) as (k). 1997—Subsecs. (a), (e) to (j). Pub. L. 105–33 repealed Pub. L. 104–193, § 110(l)(7). See 1996 Amendment notes below. 1996—Subsec. (a). Pub. L. 104–193, § 110(l)(7)(A), which directed substitution of ‘‘(c), (d), and (e)’’ for ‘‘(c) and (d)’’, was repealed by Pub. L. 105–33. Subsec. (e). Pub. L. 104–193, § 110(l)(7)(C), which di- rected amendment by adding subsec. (e), reading as fol- lows: ‘‘COLLECTION OF OVERPAYMENTS UNDER TITLE IV–A OF THE SOCIAL SECURITY ACT.—The amount of any overpayment to be refunded to the person making the overpayment shall be reduced (after reductions pursu- ant to subsections (c) and (d), but before a credit against future liability for an internal revenue tax) in accordance with section 405(e) of the Social Security Act (concerning recovery of overpayments to individ- uals under State plans approved under part A of title IV of such Act).’’, was repealed by Pub. L. 105–33. Subsec. (f). Pub. L. 104–193, § 110(l)(7)(B), which di- rected amendment by redesignating subsec. (e) as (f), was repealed by Pub. L. 105–33. Pub. L. 104–134 amended subsec. (f) generally. Prior to amendment, subsec. (f) read as follows: ‘‘For purposes of this section, the term ‘Federal agency’ means a de- partment, agency, or instrumentality of the United States (other than an agency subject to section 9 of the Act of May 18, 1933 (48 Stat. 63, chapter 32; 16 U.S.C. 831h)), and includes a Government corporation (as such term is defined in section 103 of title 5, United States Code).’’ Subsecs. (g) to (j). Pub. L. 104–193, § 110(l)(7)(B), which directed amendment by redesignating subsecs. (f) to (i) as (g) to (j), respectively, was repealed by Pub. L. 105–33. 1994—Subsecs. (d)(3)(C), (e). Pub. L. 103–296 sub- stituted ‘‘Commissioner of Social Security’’ for ‘‘Sec- retary of Health and Human Services’’ wherever ap- pearing. 1990—Subsec. (d)(1). Pub. L. 101–508, § 5129(c)(1)(A), struck out ‘‘any OASDI overpayment and’’ after ‘‘(other than’’. Subsec. (d)(3). Pub. L. 101–508, § 5129(c)(1)(B), added par. (3) and struck out former par. (3) which read as fol- lows: ‘‘For purposes of this subsection the term ‘OASDI overpayment’ means any overpayment of benefits made to an individual under title II of the Social Security Act.’’ Subsec. (e). Pub. L. 101–508, § 5129(c)(2), inserted before period at end ‘‘or any such action against the Secretary of Health and Human Services which is otherwise avail- able with respect to recoveries of overpayments of ben- efits under section 204 of the Social Security Act’’. 1988—Subsec. (i). Pub. L. 100–647 added subsec. (i). 1984—Subsec. (a). Pub. L. 98–369, § 2653(b)(2), sub- stituted ‘‘subsections (c) and (d)’’ for ‘‘subsection (c)’’. Subsec. (c). Pub. L. 98–378, § 21(e)(1), substituted ‘‘col- lecting such support’’ for ‘‘to which such support has been assigned’’ and inserted provision that a reduction under this subsection shall be applied first to satisfy any past-due support which has been assigned to the State under section 402(a)(26) or 471(a)(17) of the Social Security Act, and shall be applied to satisfy any other past-due support after any other reductions allowed by law (but before a credit against future liability for an internal revenue tax) have been made. Subsecs. (d) to (f). Pub. L. 98–369, § 2653(b)(1), added subsecs. (d) to (f). Subsec. (g). Pub. L. 98–378, § 21(e)(2), added subsec. (g). Former subsec. (g) redesignated (h). Pub. L. 98–369, § 2653(b)(1), added subsec. (g). Subsec. (h). Pub. L. 98–378, § 21(e)(2), redesignated former subsec. (g) as (h). 1981—Subsec. (a). Pub. L. 97–35, § 2331(c)(1), inserted reference to subsec. (c) of this section. Subsec. (c). Pub. L. 97–35, § 2331(c)(2), added subsec. (c). 1976—Pub. L. 94–455 struck out ‘‘or his delegate’’ after ‘‘Secretary’’ wherever appearing. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2015 AMENDMENT Amendment by Pub. L. 114–113 applicable to credits or refunds made after Dec. 31, 2016, see section 201(d) of Pub. L. 114–113, set out as a note under section 6071 of this title. EFFECTIVE DATE OF 2010 AMENDMENT Pub. L. 111–312, title V, § 503(b), Dec. 17, 2010, 124 Stat. 3308, provided that: ‘‘The amendment made by sub- section (a) [amending this section] shall take effect as if included in section 801 of the Claims Resolution Act of 2010 [Pub. L. 111–291].’’ Pub. L. 111–291, title VIII, § 801(b), Dec. 8, 2010, 124 Stat. 3157, provided that: ‘‘The amendments made by this section [amending this section] shall apply to re- funds payable under section 6402 of the Internal Rev- enue Code of 1986 on or after the date of the enactment of this Act [Dec. 8, 2010].’’ EFFECTIVE DATE OF 2008 AMENDMENT Amendment by Pub. L. 110–328 applicable to refunds payable under section 6402 of this title on or after Sept. 30, 2008, see section 3(e) of Pub. L. 110–328, set out as a note under section 3304 of this title. EFFECTIVE DATE OF 2006 AMENDMENT Amendment by Pub. L. 109–171 effective Oct. 1, 2009, and applicable to payments under parts A and D of sub- chapter IV of chapter 7 of Title 42, The Public Health and Welfare, for calendar quarters beginning on or after such date, subject to certain State options, see section 7301(e) of Pub. L. 109–171, set out as a note under section 608 of Title 42. EFFECTIVE DATE OF 1998 AMENDMENT Pub. L. 105–206, title III, § 3505(b), July 22, 1998, 112 Stat. 771, provided that: ‘‘The amendment made by this section [amending this section] shall apply to disallow- ances after the 180th day after the date of the enact- ment of this Act [July 22, 1998].’’ Amendment by section 3711 of Pub. L. 105–206 applica- ble to refunds payable under this section after Dec. 31, 1999, see section 3711(d) of Pub. L. 105–206, set out as a note under section 6103 of this title. EFFECTIVE DATE OF 1997 AMENDMENT Amendment by Pub. L. 105–33 effective as if included in section 110 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, Pub. L. 104–193, at the time such section 110 became law, see section 5518(c) of Pub. L. 105–33, set out as a note under section 51 of this title. EFFECTIVE DATE OF 1996 AMENDMENT Amendment by Pub. L. 104–193 effective July 1, 1997, with transition rules relating to State options to accel- Page 3604 TITLE 26—INTERNAL REVENUE CODE § 6403 erate such date, rules relating to claims, actions, and proceedings commenced before such date, rules relating to closing out of accounts for terminated or substan- tially modified programs and continuance in office of Assistant Secretary for Family Support, and provisions relating to termination of entitlement under AFDC program, see section 116 of Pub. L. 104–193, as amended, set out as an Effective Date note under section 601 of Title 42, The Public Health and Welfare. EFFECTIVE DATE OF 1994 AMENDMENT Amendment by Pub. L. 103–296 effective Mar. 31, 1995, see section 110(a) of Pub. L. 103–296, set out as a note under section 401 of Title 42, The Public Health and Welfare. EFFECTIVE DATE OF 1990 AMENDMENT Pub. L. 101–508, title V, § 5129(d), Nov. 5, 1990, 104 Stat. 1388–289, provided that: ‘‘The amendments made by this section [amending this section, section 3720A of Title 31, Money and Finance, and section 404 of Title 42, The Public Health and Welfare]— ‘‘(1) shall take effect January 1, 1991, and ‘‘(2) shall not apply to refunds to which the amend- ments made by section 2653 of the Deficit Reduction Act of 1984 (98 Stat. 1153) [enacting section 3720A of Title 31 and amending this section and sections 6103 and 7213 of this title] do not apply.’’ EFFECTIVE DATE OF 1984 AMENDMENTS Amendment by Pub. L. 98–378 applicable with respect to refunds payable under this section after Dec. 31, 1985, see section 21(g) of Pub. L. 98–378, set out as a note under section 6103 of this title. Pub. L. 98–369, div. B, title VI, § 2653(c), July 18, 1984, 98 Stat. 1156, as amended by Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095; Pub. L. 100–203, title IX, § 9402(a), Dec. 22, 1987, 101 Stat. 1330–376; Pub. L. 100–485, title VII, § 701(a), Oct. 13, 1988, 102 Stat. 2425; Pub. L. 102–164, title IV, § 401(a), Nov. 15, 1991, 105 Stat. 1061, provided that: ‘‘The amendments made by this section [enacting sec- tion 3720A of Title 31, Money and Finance, and amend- ing this section and sections 6103 and 7213 of this title] shall apply with respect to refunds payable under sec- tion 6402 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] after December 31, 1985.’’ [Pub. L. 102–164, title IV, § 401(b), Nov. 15, 1991, 105 Stat. 1061, provided that: ‘‘The amendment made by this section [amending section 2653(c) of Pub. L. 98–369, set out above] shall take effect on October 1, 1991.’’] EFFECTIVE DATE OF 1981 AMENDMENT Amendment by Pub. L. 97–35 effective, except as oth- erwise specifically provided, on Oct. 1, 1981, see section 2336 of Pub. L. 97–35, set out as a note under section 651 of Title 42, The Public Health and Welfare. ORGAN AND TISSUE DONATION INFORMATION INCLUDED WITH INCOME TAX REFUND PAYMENTS Pub. L. 104–191, title III, § 371, Aug. 21, 1996, 110 Stat. 2072, provided that: ‘‘(a) IN GENERAL.—The Secretary of the Treasury shall, to the extent practicable, include with the mail- ing of any payment of a refund of individual income tax made during the period beginning on February 1, 1997, and ending on June 30, 1997, a copy of the document de- scribed in subsection (b). ‘‘(b) TEXT OF DOCUMENT.—The Secretary of the Treas- ury shall, after consultation with the Secretary of Health and Human Services and organizations pro- moting organ and tissue (including eye) donation, pre- pare a document suitable for inclusion with individual income tax refund payments which— ‘‘(1) encourages organ and tissue donation; ‘‘(2) includes a detachable organ and tissue donor card; and ‘‘(3) urges recipients to— ‘‘(A) sign the organ and tissue donor card; ‘‘(B) discuss organ and tissue donation with fam- ily members and tell family members about the re- cipient’s desire to be an organ and tissue donor if the occasion arises; and ‘‘(C) encourage family members to request or au- thorize organ and tissue donation if the occasion arises.’’ CLARIFICATION OF CONGRESSIONAL INTENT AS TO SCOPE OF AMENDMENTS BY SECTION 2653 OF PUB. L. 98–369 Pub. L. 100–203, title IX, § 9402(b), Dec. 22, 1987, 101 Stat. 1330–376, provided that: ‘‘(1) Nothing in the amendments made by section 2653 of the Deficit Reduction Act of 1984 [enacting section 3720A of Title 31, Money and Finance, and amending this section and sections 6103 and 7213 of this title] shall be construed as exempting debts of corporations or any other category of persons from the application of such amendments. ‘‘(2) It is the intent of the Congress that, to the ex- tent practicable, the amendments made by section 2653 of the Deficit Reduction Act of 1984 shall extend to all Federal agencies (as defined in the amendments made by such section). ‘‘(3) The Secretary of the Treasury shall issue regula- tions to carry out the purposes of this subsection.’’ STUDY BY GENERAL ACCOUNTING OFFICE OF OPERATION AND EFFECTIVENESS OF AMENDMENTS BY SECTION 2653 OF PUB. L. 98–369 Pub. L. 100–203, title IX, § 9402(c), Dec. 22, 1987, 101 Stat. 1330–376, required the Comptroller General of the United States, in consultation with the Secretary of the Treasury, to conduct a study of the operation and effectiveness of amendments by section 2653 of Pub. L. 98–369 on voluntary compliance with the income tax laws and, by Apr. 1, 1989, submit a report and rec- ommendations to Congress. § 6403. Overpayment of installment In the case of a tax payable in installments, if the taxpayer has paid as an installment of the tax more than the amount determined to be the correct amount of such installment, the over- payment shall be credited against the unpaid in- stallments, if any. If the amount already paid, whether or not on the basis of installments, ex- ceeds the amount determined to be the correct amount of the tax, the overpayment shall be credited or refunded as provided in section 6402. (Aug. 16, 1954, ch. 736, 68A Stat. 791.) § 6404. Abatements (a) General rule The Secretary is authorized to abate the un- paid portion of the assessment of any tax or any liability in respect thereof, which— (1) is excessive in amount, or (2) is assessed after the expiration of the pe- riod of limitation properly applicable thereto, or (3) is erroneously or illegally assessed. (b) No claim for abatement of income, estate, and gift taxes No claim for abatement shall be filed by a tax- payer in respect of an assessment of any tax im- posed under subtitle A or B. (c) Small tax balances The Secretary is authorized to abate the un- paid portion of the assessment of any tax, or any liability in respect thereof, if the Secretary de- termines under uniform rules prescribed by the Secretary that the administration and collec- tion costs involved would not warrant collection of the amount due.