Title 26 — Internal Revenue Code — § 6402. Authority to make credits or refunds
Summary
This printed copy of 26 U.S.C. § 6402 lets the Secretary of the Treasury credit any tax overpayment, with interest, against the person’s internal revenue tax liability and refund the balance, subject to offsets. Refunds are reduced for past-due support a State has reported, debts owed to Federal agencies, past-due State income tax obligations and covered unemployment compensation debts, defined to include erroneous unemployment payments due to fraud or the person’s failure to report earnings. No court of the United States has jurisdiction to restrain or review a reduction under subsections (c), (d), (e), or (f). The pages, numbered 3598 to 3604, also carry the section’s amendment and effective-date notes.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
Full text
§ 6402 TITLE 26—INTERNAL REVENUE CODE Page 3598
if included in the amendments made by section 701(b) of 809(f) of Pub. L. 89–44, set out as a note under section
the Tax Reform Act of 1986 [Pub. L. 99–514].’’ 6420 of this title.
EFFECTIVE DATE OF 1988 AMENDMENT § 6402. Authority to make credits or refunds
Amendment by Pub. L. 100–647 applicable to taxable (a) General rule
years beginning after Dec. 31, 1987, see section
1012(s)(1)(D) of Pub. L. 100–647, set out as a note under In the case of any overpayment, the Sec-
section 1446 of this title. retary, within the applicable period of limita-
tions, may credit the amount of such overpay-
EFFECTIVE DATE OF 1986 AMENDMENT
ment, including any interest allowed thereon,
Amendment by Pub. L. 99–514 applicable to distribu- against any liability in respect of an internal
tions after Dec. 31, 1987, or, if earlier, the effective date revenue tax on the part of the person who made
of the initial regulations issued under section 1446 of the overpayment and shall, subject to sub-
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
sections (c), (d), (e), and (f), refund any balance
Effective Date note under section 1446 of this title. to such person.
(b) Credits against estimated tax
EFFECTIVE DATE OF 1984 AMENDMENT
The Secretary is authorized to prescribe regu-
Amendment by section 474(r)(36) of Pub. L. 98–369 ap-
plicable to taxable years beginning after Dec. 31, 1983,
lations providing for the crediting against the
and to carrybacks from such years, see section 475(a) of estimated income tax for any taxable year of
Pub. L. 98–369, set out as a note under section 21 of this the amount determined by the taxpayer or the
title. Secretary to be an overpayment of the income
Amendment by section 735(c)(16) of Pub. L. 98–369 ef- tax for a preceding taxable year.
fective, except as otherwise provided, as if included in (c) Offset of past-due support against overpay-
the provisions of the Highway Revenue Act of 1982, title
V of Pub. L. 97–424, to which such amendment relates,
ments
see section 736 of Pub. L. 98–369, set out as a note under The amount of any overpayment to be re-
section 4051 of this title. funded to the person making the overpayment
EFFECTIVE DATE OF 1980 AMENDMENTS shall be reduced by the amount of any past-due
support (as defined in section 464(c) of the Social
Amendment by Pub. L. 96–223 applicable to qualified Security Act) owed by that person of which the
investment for taxable years beginning after Dec. 31,
Secretary has been notified by a State in ac-
1979, see section 223(b)(3) of Pub. L. 96–223, set out as a
note under section 46 of this title. cordance with section 464 of such Act. The Sec-
Amendment by Pub. L. 96–222 effective, except as oth- retary shall remit the amount by which the
erwise provided, as if it had been included in the provi- overpayment is so reduced to the State col-
sions of the Revenue Act of 1978, Pub. L. 95–600, to lecting such support and notify the person mak-
which such amendment relates, see section 201 of Pub. ing the overpayment that so much of the over-
L. 96–222, set out as a note under section 32 of this title. payment as was necessary to satisfy his obliga-
EFFECTIVE DATE OF 1978 AMENDMENT tion for past-due support has been paid to the
State. The Secretary shall apply a reduction
Amendment by Pub. L. 95–600, to the extent amend-
under this subsection first to an amount cer-
ment relates to chapter 1 or 5 of this title, applicable
to taxable years ending on or after Dec. 31, 1975, and, to tified by the State as past due support under
the extent amendment relates to wage withholding section 464 of the Social Security Act before any
under chapter 24 of this title, applicable to remunera- other reductions allowed by law. This subsection
tion paid on or after the first day of the first month shall be applied to an overpayment prior to its
which begins more than 90 days after Nov. 6, 1978, see being credited to a person’s future liability for
section 701(u)(15)(E) of Pub. L. 95–600, set out as a note an internal revenue tax. For purposes of this
under section 6013 of this title. subsection, any reference to a State shall in-
EFFECTIVE DATE OF 1976 AMENDMENT clude a reference to any Indian tribe or tribal
organization receiving a grant under section
Amendment by Pub. L. 94–455 applicable to distribu-
tions made in taxable years beginning after Dec. 31, 455(f) of the Social Security Act.
1975, see section 701(h) of Pub. L. 94–455, set out as a (d) Collection of debts owed to Federal agencies
note under section 667 of this title. (1) In general
EFFECTIVE DATE OF 1975 AMENDMENT Upon receiving notice from any Federal
Amendment by Pub. L. 94–12 applicable to taxable agency that a named person owes a past-due
years beginning after Dec. 31, 1974, see section 209(b) of legally enforceable debt (other than past-due
Pub. L. 94–12, as amended, set out as a note under sec- support subject to the provisions of subsection
tion 32 of this title. (c)) to such agency, the Secretary shall—
EFFECTIVE DATE OF 1970 AMENDMENT (A) reduce the amount of any overpayment
payable to such person by the amount of
Amendment by Pub. L. 91–258 effective July 1, 1970, such debt;
see section 211(a) of Pub. L. 91–258, set out as a note
under section 4041 of this title.
(B) pay the amount by which such over-
payment is reduced under subparagraph (A)
EFFECTIVE DATE OF 1969 AMENDMENT to such agency; and
Amendment by Pub. L. 91–172 applicable to taxable (C) notify the person making such over-
years beginning before Jan. 1, 1970, see section 331(d) of payment that such overpayment has been re-
Pub. L. 91–172, set out as a note under section 665 of duced by an amount necessary to satisfy
this title. such debt.
EFFECTIVE DATE OF 1965 AMENDMENT (2) Priorities for offset
Amendment by Pub. L. 89–44 applicable to taxable Any overpayment by a person shall be re-
years beginning on or after July 1, 1965, see section duced pursuant to this subsection after such
Page 3599 TITLE 26—INTERNAL REVENUE CODE § 6402
overpayment is reduced pursuant to sub- (D) OASDI overpayment
section (c) with respect to past-due support For purposes of this paragraph, the term
collected pursuant to an assignment under ‘‘OASDI overpayment’’ means any overpay-
section 408(a)(3) of the Social Security Act (42 ment of benefits made to an individual under
U.S.C. 608(a)(3)) and before such overpayment title II of the Social Security Act.
is reduced pursuant to subsections (e) and (f)
and before such overpayment is credited to the (e) Collection of past-due, legally enforceable
future liability for tax of such person pursuant State income tax obligations
to subsection (b). If the Secretary receives no- (1) In general
tice from a Federal agency or agencies of more Upon receiving notice from any State that a
than one debt subject to paragraph (1) that is named person owes a past-due, legally enforce-
owed by a person to such agency or agencies, able State income tax obligation to such
any overpayment by such person shall be ap- State, the Secretary shall, under such condi-
plied against such debts in the order in which tions as may be prescribed by the Secretary—
such debts accrued. (A) reduce the amount of any overpayment
(3) Treatment of OASDI overpayments payable to such person by the amount of
such State income tax obligation;
(A) Requirements
(B) pay the amount by which such over-
Paragraph (1) shall apply with respect to payment is reduced under subparagraph (A)
an OASDI overpayment only if the require- to such State and notify such State of such
ments of paragraphs (1) and (2) of section person’s name, taxpayer identification num-
3720A(f) of title 31, United States Code, are ber, address, and the amount collected; and
met with respect to such overpayment. (C) notify the person making such over-
(B) Notice; protection of other persons filing payment that the overpayment has been re-
joint return duced by an amount necessary to satisfy a
past-due, legally enforceable State income
(i) Notice
tax obligation.
In the case of a debt consisting of an
OASDI overpayment, if the Secretary de- If an offset is made pursuant to a joint return,
termines upon receipt of the notice re- the notice under subparagraph (B) shall in-
ferred to in paragraph (1) that the refund clude the names, taxpayer identification num-
from which the reduction described in bers, and addresses of each person filing such
paragraph (1)(A) would be made is based return.
upon a joint return, the Secretary shall— (2) Offset permitted only against residents of
(I) notify each taxpayer filing such State seeking offset
joint return that the reduction is being Paragraph (1) shall apply to an overpayment
made from a refund based upon such re- by any person for a taxable year only if the ad-
turn, and dress shown on the Federal return for such
(II) include in such notification a de- taxable year of the overpayment is an address
scription of the procedures to be fol- within the State seeking the offset.
lowed, in the case of a joint return, to
(3) Priorities for offset
protect the share of the refund which
may be payable to another person. Any overpayment by a person shall be re-
duced pursuant to this subsection—
(ii) Adjustments based on protections given
(A) after such overpayment is reduced pur-
to other taxpayers on joint return
suant to—
If the other person filing a joint return (i) subsection (a) with respect to any li-
with the person owing the OASDI overpay- ability for any internal revenue tax on the
ment takes appropriate action to secure part of the person who made the overpay-
his or her proper share of the refund sub- ment;
ject to reduction under this subsection, (ii) subsection (c) with respect to past-
the Secretary shall pay such share to such due support; and
other person. The Secretary shall deduct (iii) subsection (d) with respect to any
the amount of such payment from past-due, legally enforceable debt owed to
amounts which are derived from subse- a Federal agency; and
quent reductions in refunds under this sub-
section and are payable to a trust fund re- (B) before such overpayment is credited to
ferred to in subparagraph (C). the future liability for any Federal internal
revenue tax of such person pursuant to sub-
(C) Deposit of amount of reduction into ap- section (b).
propriate trust fund
If the Secretary receives notice from one or
In lieu of payment, pursuant to paragraph more agencies of the State of more than one
(1)(B), of the amount of any reduction under debt subject to paragraph (1) or subsection (f)
this subsection to the Commissioner of So- that is owed by such person to such an agency,
cial Security, the Secretary shall deposit any overpayment by such person shall be ap-
such amount in the Federal Old-Age and plied against such debts in the order in which
Survivors Insurance Trust Fund or the Fed- such debts accrued.
eral Disability Insurance Trust Fund, which-
ever is certified to the Secretary as appro- (4) Notice; consideration of evidence
priate by the Commissioner of Social Secu- No State may take action under this sub-
rity. section until such State—
§ 6402 TITLE 26—INTERNAL REVENUE CODE Page 3600
(A) notifies by certified mail with return State under such paragraph have been paid to
receipt the person owing the past-due State such State).
income tax liability that the State proposes (f) Collection of unemployment compensation
to take action pursuant to this section; debts
(B) gives such person at least 60 days to (1) In general
present evidence that all or part of such li-
ability is not past-due or not legally enforce- Upon receiving notice from any State that a
able; named person owes a covered unemployment
(C) considers any evidence presented by compensation debt to such State, the Sec-
such person and determines that an amount retary shall, under such conditions as may be
of such debt is past-due and legally enforce- prescribed by the Secretary—
able; and (A) reduce the amount of any overpayment
(D) satisfies such other conditions as the payable to such person by the amount of
Secretary may prescribe to ensure that the such covered unemployment compensation
determination made under subparagraph (C) debt;
(B) pay the amount by which such over-
is valid and that the State has made reason-
payment is reduced under subparagraph (A)
able efforts to obtain payment of such State
to such State and notify such State of such
income tax obligation.
person’s name, taxpayer identification num-
(5) Past-due, legally enforceable State income ber, address, and the amount collected; and
tax obligation (C) notify the person making such over-
For purposes of this subsection, the term payment that the overpayment has been re-
‘‘past-due, legally enforceable State income duced by an amount necessary to satisfy a
tax obligation’’ means a debt— covered unemployment compensation debt.
(A)(i) which resulted from— If an offset is made pursuant to a joint return,
(I) a judgment rendered by a court of the notice under subparagraph (C) shall in-
competent jurisdiction which has deter- clude information related to the rights of a
mined an amount of State income tax to spouse of a person subject to such an offset.
be due; or
(2) Priorities for offset
(II) a determination after an administra-
tive hearing which has determined an Any overpayment by a person shall be re-
amount of State income tax to be due; and duced pursuant to this subsection—
(A) after such overpayment is reduced pur-
(ii) which is no longer subject to judicial suant to—
review; or (i) subsection (a) with respect to any li-
(B) which resulted from a State income ability for any internal revenue tax on the
tax which has been assessed but not col- part of the person who made the overpay-
lected, the time for redetermination of ment;
which has expired, and which has not been (ii) subsection (c) with respect to past-
delinquent for more than 10 years. due support; and
For purposes of this paragraph, the term (iii) subsection (d) with respect to any
‘‘State income tax’’ includes any local income past-due, legally enforceable debt owed to
tax administered by the chief tax administra- a Federal agency; and
tion agency of the State. (B) before such overpayment is credited to
(6) Regulations the future liability for any Federal internal
The Secretary shall issue regulations pre- revenue tax of such person pursuant to sub-
scribing the time and manner in which States section (b).
must submit notices of past-due, legally en- If the Secretary receives notice from a State
forceable State income tax obligations and the or States of more than one debt subject to
necessary information that must be contained paragraph (1) or subsection (e) that is owed by
in or accompany such notices. The regulations a person to such State or States, any overpay-
shall specify the types of State income taxes ment by such person shall be applied against
and the minimum amount of debt to which the such debts in the order in which such debts ac-
reduction procedure established by paragraph crued.
(1) may be applied. The regulations may re- (3) Notice; consideration of evidence
quire States to pay a fee to reimburse the Sec-
retary for the cost of applying such procedure. No State may take action under this sub-
Any fee paid to the Secretary pursuant to the section until such State—
preceding sentence shall be used to reimburse (A) notifies the person owing the covered
appropriations which bore all or part of the unemployment compensation debt that the
cost of applying such procedure. State proposes to take action pursuant to
this section;
(7) Erroneous payment to State (B) provides such person at least 60 days to
Any State receiving notice from the Sec- present evidence that all or part of such li-
retary that an erroneous payment has been ability is not legally enforceable or is not a
made to such State under paragraph (1) shall covered unemployment compensation debt;
pay promptly to the Secretary, in accordance (C) considers any evidence presented by
with such regulations as the Secretary may such person and determines that an amount
prescribe, an amount equal to the amount of of such debt is legally enforceable and is a
such erroneous payment (without regard to covered unemployment compensation debt;
whether any other amounts payable to such and
Page 3601 TITLE 26—INTERNAL REVENUE CODE § 6402
(D) satisfies such other conditions as the with such regulations as the Secretary may
Secretary may prescribe to ensure that the prescribe, an amount equal to the amount of
determination made under subparagraph (C) such erroneous payment (without regard to
is valid and that the State has made reason- whether any other amounts payable to such
able efforts to obtain payment of such cov- State under such paragraph have been paid to
ered unemployment compensation debt. such State).
(4) Covered unemployment compensation debt (g) Review of reductions
For purposes of this subsection, the term No court of the United States shall have juris-
‘‘covered unemployment compensation debt’’ diction to hear any action, whether legal or eq-
means— uitable, brought to restrain or review a reduc-
(A) a past-due debt for erroneous payment tion authorized by subsection (c), (d), (e), or (f).
of unemployment compensation due to fraud No such reduction shall be subject to review by
or the person’s failure to report earnings the Secretary in an administrative proceeding.
which has become final under the law of a No action brought against the United States to
State certified by the Secretary of Labor recover the amount of any such reduction shall
pursuant to section 3304 and which remains be considered to be a suit for refund of tax. This
uncollected; subsection does not preclude any legal, equi-
(B) contributions due to the unemploy- table, or administrative action against the Fed-
ment fund of a State for which the State has eral agency or State to which the amount of
determined the person to be liable and which such reduction was paid or any such action
remain uncollected; and against the Commissioner of Social Security
(C) any penalties and interest assessed on which is otherwise available with respect to re-
such debt. coveries of overpayments of benefits under sec-
tion 204 of the Social Security Act.
(5) Regulations
(h) Federal agency
(A) In general
For purposes of this section, the term ‘‘Fed-
The Secretary may issue regulations pre- eral agency’’ means a department, agency, or in-
scribing the time and manner in which strumentality of the United States, and includes
States must submit notices of covered un- a Government corporation (as such term is de-
employment compensation debt and the nec- fined in section 103 of title 5, United States
essary information that must be contained Code).
in or accompany such notices. The regula-
tions may specify the minimum amount of (i) Treatment of payments to States
debt to which the reduction procedure estab- The Secretary may provide that, for purposes
lished by paragraph (1) may be applied. of determining interest, the payment of any
(B) Fee payable to Secretary amount withheld under subsection (c), (e), or (f)
to a State shall be treated as a payment to the
The regulations may require States to pay person or persons making the overpayment.
a fee to the Secretary, which may be de-
(j) Cross reference
ducted from amounts collected, to reimburse
the Secretary for the cost of applying such For procedures relating to agency notification
procedure. Any fee paid to the Secretary of the Secretary, see section 3721 of title 31,
pursuant to the preceding sentence shall be United States Code.
used to reimburse appropriations which bore (k) Refunds to certain fiduciaries of insolvent
all or part of the cost of applying such pro- members of affiliated groups
cedure. Notwithstanding any other provision of law, in
(C) Submission of notices through Secretary the case of an insolvent corporation which is a
of Labor member of an affiliated group of corporations
The regulations may include a require- filing a consolidated return for any taxable year
ment that States submit notices of covered and which is subject to a statutory or court-ap-
unemployment compensation debt to the pointed fiduciary, the Secretary may by regula-
Secretary via the Secretary of Labor in ac- tion provide that any refund for such taxable
cordance with procedures established by the year may be paid on behalf of such insolvent
Secretary of Labor. Such procedures may re- corporation to such fiduciary to the extent that
quire States to pay a fee to the Secretary of the Secretary determines that the refund is at-
Labor to reimburse the Secretary of Labor tributable to losses or credits of such insolvent
for the costs of applying this subsection. corporation.
Any such fee shall be established in con- (l) Explanation of reason for refund disallowance
sultation with the Secretary of the Treas- In the case of a disallowance of a claim for re-
ury. Any fee paid to the Secretary of Labor fund, the Secretary shall provide the taxpayer
may be deducted from amounts collected with an explanation for such disallowance.
and shall be used to reimburse the appro- (m) Earliest date for certain refunds
priation account which bore all or part of
the cost of applying this subsection. No credit or refund of an overpayment for a
taxable year shall be made to a taxpayer before
(6) Erroneous payment to State the 15th day of the second month following the
Any State receiving notice from the Sec- close of such taxable year if a credit is allowed
retary that an erroneous payment has been to such taxpayer under section 24 (by reason of
made to such State under paragraph (1) shall subsection (d) thereof) or 32 for such taxable
pay promptly to the Secretary, in accordance year.
§ 6402 TITLE 26—INTERNAL REVENUE CODE Page 3602
(n) Misdirected direct deposit refund Subsec. (d)(2). Pub. L. 115–141, § 401(a)(287), substituted
‘‘section 408(a)(3) of the Social Security Act (42 U.S.C.
Not later than the date which is 6 months 608(a)(3))’’ for ‘‘section 402(a)(26) of the Social Security
after the date of the enactment of the Taxpayer Act’’.
First Act, the Secretary shall prescribe regula- 2015—Subsec. (m). Pub. L. 114–113 added subsec. (m).
tions to establish procedures to allow for— 2010—Subsec. (f). Pub. L. 111–291, § 801(a)(1), struck out
(1) taxpayers to report instances in which a ‘‘resulting from fraud’’ after ‘‘debts’’ in heading.
refund made by the Secretary by electronic Subsec. (f)(3). Pub. L. 111–291, § 801(a)(2), redesignated
par. (4) as (3) and struck out former par. (3). Prior to
funds transfer was not transferred to the ac-
amendment, text of par. (3) read as follows: ‘‘Paragraph
count of the taxpayer; (1) shall apply to an overpayment by any person for a
(2) coordination with financial institutions taxable year only if the address shown on the Federal
for the purpose of— return for such taxable year of the overpayment is an
(A) identifying the accounts to which address within the State seeking the offset.’’
transfers described in paragraph (1) were Subsec. (f)(3)(A). Pub. L. 111–291, § 801(a)(3)(A), struck
made; and out ‘‘by certified mail with return receipt’’ after ‘‘noti-
(B) recovery of the amounts so transferred; fies’’.
and Subsec. (f)(3)(B). Pub. L. 111–291, § 801(a)(3)(B), sub-
stituted ‘‘is not a covered unemployment compensation
(3) the refund to be delivered to the correct debt’’ for ‘‘due to fraud’’.
account of the taxpayer. Subsec. (f)(3)(C). Pub. L. 111–312 substituted ‘‘is a cov-
ered unemployment compensation debt’’ for ‘‘is not a
(Aug. 6, 1954, ch. 736, 68A Stat. 791; Pub. L. 94–455, covered unemployment compensation debt’’.
title XIX, § 1906(b)(13) (A), (K), Oct. 4, 1976, 90 Pub. L. 111–291, § 801(a)(3)(C), substituted ‘‘is not a
Stat. 1834, 1835; Pub. L. 97–35, title XXIII, covered unemployment compensation debt’’ for ‘‘due to
§ 2331(c), Aug. 13, 1981, 95 Stat. 861; Pub. L. 98–369, fraud’’.
div. B, title VI, § 2653(b)(1), (2), July 18, 1984, 98 Subsec. (f)(4). Pub. L. 111–291, § 801(a)(2), redesignated
par. (5) as (4). Former par. (4) redesignated (3).
Stat. 1154, 1155; Pub. L. 98–378, § 21(e), Aug. 16, Subsec. (f)(4)(A). Pub. L. 111–291, § 801(a)(4)(A), in-
1984, 98 Stat. 1325; Pub. L. 100–647, title VI, § 6276, serted ‘‘or the person’s failure to report earnings’’ after
Nov. 10, 1988, 102 Stat. 3753; Pub. L. 101–508, title ‘‘due to fraud’’ and struck out ‘‘for not more than 10
V, § 5129(c), Nov. 5, 1990, 104 Stat. 1388–288; Pub. years’’ after ‘‘remains uncollected’’.
L. 103–296, title I, § 108(h)(7), Aug. 15, 1994, 108 Subsec. (f)(4)(B). Pub. L. 111–291, § 801(a)(4)(B), struck
Stat. 1487; Pub. L. 104–134, title III, § 31001(u)(2), out ‘‘due to fraud’’ after ‘‘to be liable’’ and ‘‘for not
more than 10 years’’ after ‘‘remain uncollected’’.
Apr. 26, 1996, 110 Stat. 1321–375; Pub. L. 104–193, Subsec. (f)(5) to (8). Pub. L. 111–291, § 801(a)(2), redesig-
title I, § 110(l)(7), Aug. 22, 1996, 110 Stat. 2173; nated pars. (5) to (7) as (4) to (6), respectively, and
Pub. L. 105–33, title V, § 5514(a)(1), Aug. 5, 1997, struck out par. (8). Prior to amendment, text of par. (8)
111 Stat. 620; Pub. L. 105–206, title III, §§ 3505(a), read as follows: ‘‘This section shall not apply to refunds
3711(a), (c), July 22, 1998, 112 Stat. 771, 779, 781; payable after the date which is 10 years after the date
Pub. L. 109–171, title VII, § 7301(d), Feb. 8, 2006, of the enactment of this subsection.’’
120 Stat. 144; Pub. L. 110–328, § 3(a), (d), Sept. 30, 2008—Subsec. (a). Pub. L. 110–328, § 3(d)(1), substituted
‘‘(c), (d), (e), and (f)’’ for ‘‘(c), (d), and (e),’’.
2008, 122 Stat. 3570, 3573; Pub. L. 111–291, title Subsec. (d)(2). Pub. L. 110–328, § 3(d)(2), substituted
VIII, § 801(a), Dec. 8, 2010, 124 Stat. 3157; Pub. L. ‘‘and before such overpayment is reduced pursuant to
111–312, title V, § 503(a), Dec. 17, 2010, 124 Stat. subsections (e) and (f)’’ for ‘‘and before such overpay-
3308; Pub. L. 114–113, div. Q, title II, § 201(b), Dec. ment is reduced pursuant to subsection (e)’’.
18, 2015, 129 Stat. 3076; Pub. L. 115–141, div. U, Subsec. (e)(3). Pub. L. 110–328, § 3(d)(3), inserted ‘‘or
title IV, § 401(a)(285)–(287), Mar. 23, 2018, 132 Stat. subsection (f)’’ after ‘‘paragraph (1)’’ in concluding pro-
1198; Pub. L. 116–25, title I, § 1407, July 1, 2019, 133 visions.
Subsec. (f). Pub. L. 110–328, § 3(a), added subsec. (f).
Stat. 1001; Pub. L. 118–258, title II, § 202(a)(2)(F), Former subsec. (f) redesignated (g).
Jan. 4, 2025, 138 Stat. 2972.) Subsec. (g). Pub. L. 110–328, § 3(a), (d)(4), redesignated
subsec. (f) as (g) and substituted ‘‘(c), (d), (e), or (f)’’ for
Editorial Notes ‘‘(c), (d), or (e)’’. Former subsec. (g) redesignated (h).
REFERENCES IN TEXT Subsec. (h). Pub. L. 110–328, § 3(a), redesignated sub-
sec. (g) as (h). Former subsec. (h) redesignated (i).
The Social Security Act, referred to in subsecs. (c), Subsec. (i). Pub. L. 110–328, § 3(a), (d)(5), redesignated
(d)(3)(D), and (g), is act Aug. 14, 1935, ch. 531, 49 Stat. subsec. (h) as (i) and substituted ‘‘subsection (c), (e), or
620. Title II of the Act is classified generally to sub- (f)’’ for ‘‘subsection (c) or (e)’’. Former subsec. (i) redes-
chapter II (§ 401 et seq.) of chapter 7 of Title 42, The ignated (j).
Public Health and Welfare. Sections 204, 455, and 464 of Subsecs. (j) to (l). Pub. L. 110–328, § 3(a), redesignated
the Act are classified to sections 404, 655, and 664, re- subsecs. (i) to (k) as (j) to (l), respectively.
spectively, of Title 42. For complete classification of 2006—Subsec. (c). Pub. L. 109–171 substituted ‘‘of such
this Act to the Code, see section 1305 of Title 42 and Ta- Act.’’ for ‘‘the Social Security Act.’’ in first sentence
bles. and ‘‘The Secretary shall apply a reduction under this
The date of the enactment of the Taxpayer First Act, subsection first to an amount certified by the State as
referred to in subsec. (n), is the date of enactment of past due support under section 464 of the Social Secu-
Pub. L. 116–25, which was approved July 1, 2019. rity Act before any other reductions allowed by law.’’
for ‘‘A reduction under this subsection shall be applied
AMENDMENTS first to satisfy any past-due support which has been as-
2025—Subsec. (c). Pub. L. 118–258 inserted at end ‘‘For signed to the State under section 402(a)(26) or 471(a)(17)
purposes of this subsection, any reference to a State of the Social Security Act, and shall be applied to sat-
shall include a reference to any Indian tribe or tribal isfy any other past-due support after any other reduc-
organization receiving a grant under section 455(f) of tions allowed by law (but before a credit against future
the Social Security Act.’’ liability for an internal revenue tax) have been made.’’
2019—Subsec. (n). Pub. L. 116–25 added subsec. (n). in third sentence.
2018—Subsec. (a). Pub. L. 115–141, § 401(a)(285), sub- 1998—Subsec. (a). Pub. L. 105–206, § 3711(c)(1), sub-
stituted ‘‘(f), refund’’ for ‘‘(f) refund’’. stituted ‘‘(c), (d), and (e)’’ for ‘‘(c) and (d)’’.
Subsec. (c). Pub. L. 115–141, § 401(a)(286), substituted Subsec. (d)(2). Pub. L. 105–206, § 3711(c)(2), substituted
‘‘of such Act’’ for ‘‘of of such Act’’. ‘‘and before such overpayment is reduced pursuant to
Page 3603 TITLE 26—INTERNAL REVENUE CODE § 6402
subsection (e) and before such overpayment’’ for ‘‘and any past-due support which has been assigned to the
before such overpayment’’. State under section 402(a)(26) or 471(a)(17) of the Social
Subsec. (e). Pub. L. 105–206, § 3711(a), added subsec. (e). Security Act, and shall be applied to satisfy any other
Former subsec. (e) redesignated (f). past-due support after any other reductions allowed by
Subsec. (f). Pub. L. 105–206, § 3711(a), (c)(3), redesig- law (but before a credit against future liability for an
nated subsec. (e) as (f) and substituted ‘‘(c), (d), or (e)’’ internal revenue tax) have been made.
for ‘‘(c) or (d)’’ and ‘‘Federal agency or State’’ for ‘‘Fed- Subsecs. (d) to (f). Pub. L. 98–369, § 2653(b)(1), added
eral agency’’. Former subsec. (f) redesignated (g). subsecs. (d) to (f).
Subsec. (g). Pub. L. 105–206, § 3711(a), redesignated Subsec. (g). Pub. L. 98–378, § 21(e)(2), added subsec. (g).
subsec. (f) as (g). Former subsec. (g) redesignated (h). Former subsec. (g) redesignated (h).
Subsec. (h). Pub. L. 105–206, § 3711(a), (c)(4), redesig- Pub. L. 98–369, § 2653(b)(1), added subsec. (g).
nated subsec. (g) as (h) and substituted ‘‘subsection (c) Subsec. (h). Pub. L. 98–378, § 21(e)(2), redesignated
or (e)’’ for ‘‘subsection (c)’’. Former subsec. (h) redesig- former subsec. (g) as (h).
nated (i). 1981—Subsec. (a). Pub. L. 97–35, § 2331(c)(1), inserted
Subsec. (i). Pub. L. 105–206, § 3711(a), redesignated sub- reference to subsec. (c) of this section.
sec. (h) as (i). Former subsec. (i) redesignated (j). Subsec. (c). Pub. L. 97–35, § 2331(c)(2), added subsec.
Subsec. (j). Pub. L. 105–206, § 3711(a), redesignated sub- (c).
sec. (i) as (j). Former subsec. (j) redesignated (k). 1976—Pub. L. 94–455 struck out ‘‘or his delegate’’ after
Pub. L. 105–206, § 3505(a), added subsec. (j). ‘‘Secretary’’ wherever appearing.
Subsec. (k). Pub. L. 105–206, § 3711(a), redesignated
subsec. (j) as (k).
Statutory Notes and Related Subsidiaries
1997—Subsecs. (a), (e) to (j). Pub. L. 105–33 repealed
Pub. L. 104–193, § 110(l)(7). See 1996 Amendment notes EFFECTIVE DATE OF 2015 AMENDMENT
below.
1996—Subsec. (a). Pub. L. 104–193, § 110(l)(7)(A), which Amendment by Pub. L. 114–113 applicable to credits
directed substitution of ‘‘(c), (d), and (e)’’ for ‘‘(c) and or refunds made after Dec. 31, 2016, see section 201(d) of
(d)’’, was repealed by Pub. L. 105–33. Pub. L. 114–113, set out as a note under section 6071 of
Subsec. (e). Pub. L. 104–193, § 110(l)(7)(C), which di- this title.
rected amendment by adding subsec. (e), reading as fol- EFFECTIVE DATE OF 2010 AMENDMENT
lows: ‘‘COLLECTION OF OVERPAYMENTS UNDER TITLE
IV–A OF THE SOCIAL SECURITY ACT.—The amount of any Pub. L. 111–312, title V, § 503(b), Dec. 17, 2010, 124 Stat.
overpayment to be refunded to the person making the 3308, provided that: ‘‘The amendment made by sub-
overpayment shall be reduced (after reductions pursu- section (a) [amending this section] shall take effect as
ant to subsections (c) and (d), but before a credit if included in section 801 of the Claims Resolution Act
against future liability for an internal revenue tax) in of 2010 [Pub. L. 111–291].’’
accordance with section 405(e) of the Social Security Pub. L. 111–291, title VIII, § 801(b), Dec. 8, 2010, 124
Act (concerning recovery of overpayments to individ- Stat. 3157, provided that: ‘‘The amendments made by
uals under State plans approved under part A of title this section [amending this section] shall apply to re-
IV of such Act).’’, was repealed by Pub. L. 105–33. funds payable under section 6402 of the Internal Rev-
Subsec. (f). Pub. L. 104–193, § 110(l)(7)(B), which di- enue Code of 1986 on or after the date of the enactment
rected amendment by redesignating subsec. (e) as (f), of this Act [Dec. 8, 2010].’’
was repealed by Pub. L. 105–33.
Pub. L. 104–134 amended subsec. (f) generally. Prior to EFFECTIVE DATE OF 2008 AMENDMENT
amendment, subsec. (f) read as follows: ‘‘For purposes Amendment by Pub. L. 110–328 applicable to refunds
of this section, the term ‘Federal agency’ means a de- payable under section 6402 of this title on or after Sept.
partment, agency, or instrumentality of the United 30, 2008, see section 3(e) of Pub. L. 110–328, set out as a
States (other than an agency subject to section 9 of the note under section 3304 of this title.
Act of May 18, 1933 (48 Stat. 63, chapter 32; 16 U.S.C.
831h)), and includes a Government corporation (as such EFFECTIVE DATE OF 2006 AMENDMENT
term is defined in section 103 of title 5, United States Amendment by Pub. L. 109–171 effective Oct. 1, 2009,
Code).’’ and applicable to payments under parts A and D of sub-
Subsecs. (g) to (j). Pub. L. 104–193, § 110(l)(7)(B), which chapter IV of chapter 7 of Title 42, The Public Health
directed amendment by redesignating subsecs. (f) to (i) and Welfare, for calendar quarters beginning on or after
as (g) to (j), respectively, was repealed by Pub. L. such date, subject to certain State options, see section
105–33. 7301(e) of Pub. L. 109–171, set out as a note under section
1994—Subsecs. (d)(3)(C), (e). Pub. L. 103–296 sub- 608 of Title 42.
stituted ‘‘Commissioner of Social Security’’ for ‘‘Sec-
retary of Health and Human Services’’ wherever ap- EFFECTIVE DATE OF 1998 AMENDMENT
pearing.
Pub. L. 105–206, title III, § 3505(b), July 22, 1998, 112
1990—Subsec. (d)(1). Pub. L. 101–508, § 5129(c)(1)(A),
Stat. 771, provided that: ‘‘The amendment made by this
struck out ‘‘any OASDI overpayment and’’ after
section [amending this section] shall apply to disallow-
‘‘(other than’’.
ances after the 180th day after the date of the enact-
Subsec. (d)(3). Pub. L. 101–508, § 5129(c)(1)(B), added
ment of this Act [July 22, 1998].’’
par. (3) and struck out former par. (3) which read as fol-
Amendment by section 3711 of Pub. L. 105–206 applica-
lows: ‘‘For purposes of this subsection the term ‘OASDI
ble to refunds payable under this section after Dec. 31,
overpayment’ means any overpayment of benefits made
1999, see section 3711(d) of Pub. L. 105–206, set out as a
to an individual under title II of the Social Security
note under section 6103 of this title.
Act.’’
Subsec. (e). Pub. L. 101–508, § 5129(c)(2), inserted before EFFECTIVE DATE OF 1997 AMENDMENT
period at end ‘‘or any such action against the Secretary
of Health and Human Services which is otherwise avail- Amendment by Pub. L. 105–33 effective as if included
able with respect to recoveries of overpayments of ben- in section 110 of the Personal Responsibility and Work
efits under section 204 of the Social Security Act’’. Opportunity Reconciliation Act of 1996, Pub. L. 104–193,
1988—Subsec. (i). Pub. L. 100–647 added subsec. (i). at the time such section 110 became law, see section
1984—Subsec. (a). Pub. L. 98–369, § 2653(b)(2), sub- 5518(c) of Pub. L. 105–33, set out as a note under section
stituted ‘‘subsections (c) and (d)’’ for ‘‘subsection (c)’’. 51 of this title.
Subsec. (c). Pub. L. 98–378, § 21(e)(1), substituted ‘‘col-
EFFECTIVE DATE OF 1996 AMENDMENT
lecting such support’’ for ‘‘to which such support has
been assigned’’ and inserted provision that a reduction Amendment by Pub. L. 104–193 effective July 1, 1997,
under this subsection shall be applied first to satisfy with transition rules relating to State options to accel-
§ 6403 TITLE 26—INTERNAL REVENUE CODE Page 3604
erate such date, rules relating to claims, actions, and cipient’s desire to be an organ and tissue donor if
proceedings commenced before such date, rules relating the occasion arises; and
to closing out of accounts for terminated or substan- ‘‘(C) encourage family members to request or au-
tially modified programs and continuance in office of thorize organ and tissue donation if the occasion
Assistant Secretary for Family Support, and provisions arises.’’
relating to termination of entitlement under AFDC
CLARIFICATION OF CONGRESSIONAL INTENT AS TO SCOPE
program, see section 116 of Pub. L. 104–193, as amended,
OF AMENDMENTS BY SECTION 2653 OF PUB. L. 98–369
set out as an Effective Date note under section 601 of
Title 42, The Public Health and Welfare. Pub. L. 100–203, title IX, § 9402(b), Dec. 22, 1987, 101
Stat. 1330–376, provided that:
EFFECTIVE DATE OF 1994 AMENDMENT ‘‘(1) Nothing in the amendments made by section 2653
Amendment by Pub. L. 103–296 effective Mar. 31, 1995, of the Deficit Reduction Act of 1984 [enacting section
see section 110(a) of Pub. L. 103–296, set out as a note 3720A of Title 31, Money and Finance, and amending
under section 401 of Title 42, The Public Health and this section and sections 6103 and 7213 of this title]
Welfare. shall be construed as exempting debts of corporations
or any other category of persons from the application
EFFECTIVE DATE OF 1990 AMENDMENT of such amendments.
Pub. L. 101–508, title V, § 5129(d), Nov. 5, 1990, 104 Stat. ‘‘(2) It is the intent of the Congress that, to the ex-
1388–289, provided that: ‘‘The amendments made by this tent practicable, the amendments made by section 2653
section [amending this section, section 3720A of Title of the Deficit Reduction Act of 1984 shall extend to all
31, Money and Finance, and section 404 of Title 42, The Federal agencies (as defined in the amendments made
Public Health and Welfare]— by such section).
‘‘(1) shall take effect January 1, 1991, and ‘‘(3) The Secretary of the Treasury shall issue regula-
‘‘(2) shall not apply to refunds to which the amend- tions to carry out the purposes of this subsection.’’
ments made by section 2653 of the Deficit Reduction
Act of 1984 (98 Stat. 1153) [enacting section 3720A of STUDY BY GENERAL ACCOUNTING OFFICE OF OPERATION
AND EFFECTIVENESS OF AMENDMENTS BY SECTION
Title 31 and amending this section and sections 6103
2653 OF PUB. L. 98–369
and 7213 of this title] do not apply.’’
Pub. L. 100–203, title IX, § 9402(c), Dec. 22, 1987, 101
EFFECTIVE DATE OF 1984 AMENDMENTS
Stat. 1330–376, required the Comptroller General of the
Amendment by Pub. L. 98–378 applicable with respect United States, in consultation with the Secretary of
to refunds payable under this section after Dec. 31, 1985, the Treasury, to conduct a study of the operation and
see section 21(g) of Pub. L. 98–378, set out as a note effectiveness of amendments by section 2653 of Pub. L.
under section 6103 of this title. 98–369 on voluntary compliance with the income tax
Pub. L. 98–369, div. B, title VI, § 2653(c), July 18, 1984, laws and, by Apr. 1, 1989, submit a report and rec-
98 Stat. 1156, as amended by Pub. L. 99–514, § 2, Oct. 22, ommendations to Congress.
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, § 6403. Overpayment of installment
§ 701(a), Oct. 13, 1988, 102 Stat. 2425; Pub. L. 102–164, title
IV, § 401(a), Nov. 15, 1991, 105 Stat. 1061, provided that: In the case of a tax payable in installments, if
‘‘The amendments made by this section [enacting sec- the taxpayer has paid as an installment of the
tion 3720A of Title 31, Money and Finance, and amend- tax more than the amount determined to be the
ing this section and sections 6103 and 7213 of this title] correct amount of such installment, the over-
shall apply with respect to refunds payable under sec- payment shall be credited against the unpaid in-
tion 6402 of the Internal Revenue Code of 1986 [formerly stallments, if any. If the amount already paid,
I.R.C. 1954] after December 31, 1985.’’ whether or not on the basis of installments, ex-
[Pub. L. 102–164, title IV, § 401(b), Nov. 15, 1991, 105
Stat. 1061, provided that: ‘‘The amendment made by
ceeds the amount determined to be the correct
this section [amending section 2653(c) of Pub. L. 98–369, amount of the tax, the overpayment shall be
set out above] shall take effect on October 1, 1991.’’] credited or refunded as provided in section 6402.
EFFECTIVE DATE OF 1981 AMENDMENT (Aug. 16, 1954, ch. 736, 68A Stat. 791.)
Amendment by Pub. L. 97–35 effective, except as oth- § 6404. Abatements
erwise specifically provided, on Oct. 1, 1981, see section
2336 of Pub. L. 97–35, set out as a note under section 651 (a) General rule
of Title 42, The Public Health and Welfare. The Secretary is authorized to abate the un-
ORGAN AND TISSUE DONATION INFORMATION INCLUDED paid portion of the assessment of any tax or any
WITH INCOME TAX REFUND PAYMENTS liability in respect thereof, which—
Pub. L. 104–191, title III, § 371, Aug. 21, 1996, 110 Stat.
(1) is excessive in amount, or
2072, provided that: (2) is assessed after the expiration of the pe-
‘‘(a) IN GENERAL.—The Secretary of the Treasury riod of limitation properly applicable thereto,
shall, to the extent practicable, include with the mail- or
ing of any payment of a refund of individual income tax (3) is erroneously or illegally assessed.
made during the period beginning on February 1, 1997, (b) No claim for abatement of income, estate, and
and ending on June 30, 1997, a copy of the document de-
gift taxes
scribed in subsection (b).
‘‘(b) TEXT OF DOCUMENT.—The Secretary of the Treas- No claim for abatement shall be filed by a tax-
ury shall, after consultation with the Secretary of payer in respect of an assessment of any tax im-
Health and Human Services and organizations pro- posed under subtitle A or B.
moting organ and tissue (including eye) donation, pre-
pare a document suitable for inclusion with individual
(c) Small tax balances
income tax refund payments which— The Secretary is authorized to abate the un-
‘‘(1) encourages organ and tissue donation; paid portion of the assessment of any tax, or any
‘‘(2) includes a detachable organ and tissue donor liability in respect thereof, if the Secretary de-
card; and
‘‘(3) urges recipients to—
termines under uniform rules prescribed by the
‘‘(A) sign the organ and tissue donor card; Secretary that the administration and collec-
‘‘(B) discuss organ and tissue donation with fam- tion costs involved would not warrant collection
ily members and tell family members about the re- of the amount due.
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