United States Code

(b) Credit or refund on wagers laid-off by taxpayer. Where any taxpayer lays off part or all of a wager with another person who is liable for tax imposed by chapter 35 on the amount so laid off, a credit against such tax shall be allowed, or a refund shall be made to, the taxpayer laying off such amount. Such credit or refund shall be in an amount which bears the same ratio to the amount of tax which such taxpayer paid on the original wager as the amount so laid off bears to the amount of the original wager. Credit or refund under this subsection

shall be allowed or made only in accordance with regulations prescribed by the Secretary or his delegate; and no interest shall be allowed with respect to any amount so credited or refunded. 1954, ch. 736, 68A Stat. 801.)

§ 6420. Gasoline used on farms. (a) Gasoline.

(Aug. 16,

If gasoline is used on a farm for farming purposes, the Secretary or his delegate shall pay (without interest) to the ultimate purchaser of such gasoline the amount determined by multiplying—

(1) the number of gallons so used, by

(2) the rate of tax on gasoline under section 4081 which applied on the date he purchased such gasoline.

(b) Time for filing claim; period covered.

Not more than one claim may be filed under this section by any person with respect to gasoline used during the one-year period ending on June 30 of any year. No claim shall be allowed under this section with respect to any one-year period unless filed on or before September 30 of the year in which such oneyear period ends.

For purposes of this section

(1) Use on a farm for farming purposes.

Gasoline shall be treated as used on a farm for farming purposes only if used (A) in carrying on a trade or business, (B) on a farm situated in the United States, and (C) for farming purposes. (2) Farm.

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 horticultual commodities, and orchards.

(3) Farming purposes.

Gasoline shall be treated as used for farming purposes only if used

(A) by the owner, tenant, or operator of a farm, in connection with cultivating the soil, or in connection with raising or harvesting any agricultural or horticultural commodity, including the raising, shearing, feeding, caring for, training, and management of livestock, bees, poultry, and fur-bearing animals and wildlife, on a farm of which he is the owner, tenant, or operator; except that if such use is by any person other than the owner, tenant, or operator of such farm, then (i) for purposes of this subparagraph, in applying subsection (a) to this subparagraph, and for purposes of sec36-500 0-65-vol. 663

tion 6416 (b) (2) (G) (ii) (but not for purposes of section 4041), the owner, tenant, or operator of the farm on which gasoline or a liquid taxable under section 4041 is used shall be treated as the user and ultimate purchaser of such gasoline or liquid, and (ii) for purposes of applying section 6416 (b) (2) (G) (ii), any tax paid under section 4041 in respect of a liquid used on a farm for farming purposes (within the meaning of this subparagraph) shall be treated as having been paid by the owner, tenant, or operator of the farm on which such liquid is used;

(B) by the owner, tenant, or operator of a farm, in handling, drying, packing, grading, or storing any agricultural or horticultural commodity in its unmanufactured state; but only if such owner, tenant or operator produced more than one-half of the commodity which he so treated during the period with respect to which claim is filed;

(i) the planting, cultivating, caring for, or cutting of trees, or

(ii) the preparation (other than milling) of trees for market,

incidental to farming operations; or

(D) by the owner, tenant, or operator of a farm, in connection with the operation, management, conservation, improvement, or maintenance of such farm and its tools and equipment.

(4) Gasoline.

The term "gasoline" has the meaning given to such term by section 4082 (b).

(d) Exempt sales; other payments or refunds available.

No amount shall be paid under this section with respect to any gasoline which the Secretary or his delegate 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 or his delegate determines is payable under this section, or is refundable under any provision of this title, to any person with respect to such gasoline. (e) Applicable laws. (1) In general.

All provisions of law, including penalties, applicable in respect of the tax imposed by section 4081 shall, insofar as applicable and not inconsistent with this section, apply in in1 respect of the payments provided for in this section to the same extent as if such payments constituted refunds of overpayments of the tax so imposed. (2) Examination of books and witnesses.

1 So in original.

(2), and (3) of section 7602 (relating to examination of books and witnesses) as if the claimant were the person liable for tax.

(3) Fractional parts of a dollar.

Section 7504 (granting the Secretary discretion with respect to fractional parts of a dollar) shall not apply.

(f) Regulations.

The Secretary or his delegate may by regulations prescribe the conditions, not inconsistent with the provisions of this section, under which payments may by made under this section.

(g) Effective date.

This section shall apply only with respect to gasoline purchased after December 31, 1955.

(h) Cross references.

(1) For exemption from tax in case of diesel fuel and special motor fuels used on a farm for farming purposes see section 4041 (d).

(2) For civil penalty for excessive claim under this section see section 6675.

(3) For fraud penalties, etc., see chapter 75 (section 7201 and following, relating to crimes, other offenses, and forfeitures).

(Added Apr. 2, 1956, ch. 160, § 1, 70 Stat. 87, and amended Sept. 2, 1958, Pub. L. 85-859, title I, § 163 (d) (2), 72 Stat. 1311.)

AMENDMENTS

1958 Subsec. (c) (3). Pub. L. 85-859 substituted "section 6416 (b) (2) (G) (ii)" for "section 6416 (b) (2) (C) (11)” in two instances in cl. (A).

EFFECTIVE DATE OF 1958 AMENDMENT Amendment of section by Pub. L. 85-859 effective on the first day of the first calendar quarter which begins more than 60 days after Sept. 2, 1958, see section 1 (c) of Pub. L. 85-859, set out as a note under section 4001 of this title.

CROSS REFERENCES

Time and place for examination pursuant to subsection (e) (2) of this section, see section 7605 (a) of this title.

§ 6421. Gasoline used for certain nonhighway purposes or by local transit systems.

(a) Nonhighway uses.

If gasoline is used otherwise than as a fuel in a highway vehicle (1) 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 (2) which, in the case of a highway vehicle owned by the United States, is used on the highway, the Secretary or his delegate shall pay (without interest) to the ultimate purchaser of such gasoline an amount equal to 1 cent for each gallon of gasoline so used on which tax was paid at the rate of 3 cents a gallon and 2 cents for each gallon of gasoline so used on which tax was paid at the rate of 4 cents a gallon.

(b) Local transit systems. (1) Allowance.

If gasoline is used during any calendar quarter in vehicles while engaged in furnishing scheduled common carrier public passenger land transportation service along regular routes, the Secretary or his delegate shall, subject to the provisions of paragraph (2), pay (without interest) to the ultimate purchaser of such gasoline the amount determined by multiplying

(A) 1 cent for each gallon of gasoline so used on which tax was paid at the rate of 3 cents a

gallon and 2 cents for each gallon of gasoline so used on which tax was paid at the rate of 4 cents a gallon, by

(B) the percentage which the ultimate purchaser's commuter fare revenue derived from such scheduled service during such quarter was of his total passenger fare revenue derived from such scheduled service during such quarter. (2) Limitation.

Paragraph (1) shall apply in respect of gasoline used during any calendar quarter only if at least 60 percent of the total passenger fare revenue derived during such quarter from scheduled service described in paragraph (1) by the person filing the claim was attributable to commuter fare revenue derived during such quarter by such person from such scheduled service.

Except as provided in paragraph (2), not more than one claim may be filed under subsection (a), and not more than one claim may be filed under subsection (b), by any person with respect to gasoline used during the one-year period ending on June 30 of any year. No claim shall be allowed under this paragraph with respect to any oneyear period unless filed on or before September 30 of the year in which such one-year period ends.

(2) Exception.

If $1,000 or more is payable under this section to any person with respect to gasoline used during a calendar quarter, a claim may be filed under this section by such person with respect to gasoline used during such quarter. No claim filed under this paragraph shall be allowed unless filed on or before the last day of the first calendar quarter following the calendar quarter for which the claim is filed.

(d) Definitions.

For purposes of this section(1) Gasoline.

The term "gasoline" has the meaning given to such term by section 4082(b).

(2) Commuter fare revenue.

The term "commuter fare revenue" means revenue attributable to fares derived from the transportation of persons and attributable to

(A) amounts paid for transportation which do not exceed 60 cents,

(B) amounts paid for commutation or season tickets for single trips of less than 30 miles, or (C) amounts paid for commutation tickets for one month or less.

(e) Exempt sales; other payments or refunds available.

(1) Exempt sales.

or his delegate determines is payable under this section, or is refundable under any provision of this title, to any person with respect to such gasoline.

(2) Gasoline used on farms.

This section shall not apply in respect of gasoline which was (within the meaning of paragraphs (1), (2), and (3) of section 6420 (c)) used on a farm for farming purposes.

(f) Applicable laws.

(1) In general.

All provisions of law, including penalties, applicable in respect to the tax imposed by section 4081 shall, insofar as applicable and not inconsistent with this section, apply in respect of the payments provided for in this section to the same extent as if such payments constituted refunds of overpayments of the tax so imposed.

(2) Examination of books and witnesses.

For the purpose of ascertaining the correctness of any claim made under this section, or the correctness of any payment made in respect of any such claim, the Secretary or his delegate shall have the authority granted by paragraphs (1), (2), and (3) of section 7602 (relating to examination of books and witnesses) as if the claimant were the person liable for tax.

(g) Regulations.

The Secretary or his delegate may by regulations prescribe the conditions, not inconsistent with the provisions of this section, under which payments may be made under this section.

(h) Effective date.

This section shall apply only with respect to gasoline purchased after June 30, 1956, and before October 1, 1972.

(i) Cross references.

(1) For reduced rate of tax in case of diesel fuel and special motor fuels used for certain nonhighway purposes, see subsections (a) and (b) of section 4041.

(2) For partial refund of tax in case of diesel fuel and special motor fuels used for certain nonhighway purposes, see section 6416 (b) (2) (I) and (J).

(3) For partial refund of tax in case of diesel fuel and special motor fuels used by local transit systems, see section 6416 (b) (2) (H).

(4) For civil penalty for excessive claims under this section, see section 6675.

(5) For fraud penalties, etc., see chapter 75 (section 7201 and following, relating to crimes, other offenses, and forfeitures).

(Added June 29, 1956, ch. 462, title II, § 208 (c), 70 Stat. 394, and amended July 25, 1956, ch. 725, § 2, 70 Stat. 644, Sept. 2, 1958, Pub. L. 85-859, title I, §§ 163 (d) (3), 164(a), 72 Stat. 1312; Sept. 21, 1959, Pub. L. 86-342, title II, § 201(d) (2), 73 Stat. 615; June 29, 1961, Pub. L. 87-61, title II, § 201 (e), 75 Stat. 124; June 28, 1962, Pub. L. 87-508, § 5(c) (2), 76 Stat. 118.)

AMENDMENTS

1962 Subsec. (b) (1) (B), (2). Pub. L. 87-508, § 5(c) (2) (A), substituted "commuter fare revenue" for "taxexempt passenger fare revenue" in two instances and deleted "(not including the tax imposed by section 4261, relating to the tax on transportation of persons)" following "total passenger fare revenue" in two instances.

Subsec. (d) (2). Pub. L. 87-508, § 5(c) (2) (B), substituted definition of "commuter fare revenue" for definition of "tax-exempt passenger fare revenue."

1961-Subsec. (h). Pub. L. 87-61 substituted "October 1, 1972" for "July 1, 1972."

1959 - Subsec. (a). Pub. L. 86-342 substituted "1 cent for each gallon of gasoline so used on which tax was paid at the rate of 3 cents a gallon and 2 cents for each gallon of gasoline so used on which tax was paid at the rate of 4 cents a gallon" for "1 cent for each gallon of gasoline so used."

Subsec. (b)(1)(A). Pub. L. 86-342 substituted "1 cent for each gallon of gasoline so used on which tax was paid at the rate of 3 cents a gallon and 2 cents for each gallon of gasoline so used on which tax was paid at the rate of 4 cents a gallon" for "1 cent for each gallon of gasoline so used."

Subsec. (c). Pub. L. 85-859, § 164 (a), permitted in cases where $1,000 or more is payable to any person with respect to gasoline used during a calendar quarter, the filing of a claim on or before the last day of the first calendar quarter following the calendar quarter for which the claim is filed.

Subsec. (1). Pub. L. 85-859, § 163 (d) (3), substituted "section 6416(b)(2) (I) and (J)" for "section 6416(b) (2) (J) and (K)" in cl. (2), and “section 6416(b) (2) (H)" for "section 6416(b) (2) (L)" in cl. (3). Act July 25, 1956, substituted

1956 Subsec. (d) (2). "4263 (a)" for “4262 (b) ".

EFFECTIVE DATE OF 1962 AMENDMENT

Section 5(d) of Pub L. 87-508 provided in part that: "The amendments made by subsection (c) (2) [to subsecs. (b) (1) (B), (2) and (d) (2) of this section] shall apply only in respect of claims filed with respect to gasoline used on or after November 16, 1962."

EFFECTIVE DATE OF 1961 AMENDMENT Amendment of section by Pub. L. 87-61 effective on July 1, 1961, see section 208 of Pub. L. 87-61, set out as a note under section 4041 of this title.

EFFECTIVE DATE OF 1958 AMENDMENT

Section 164 (b) of Pub. L. 85-859 provided that: "The amendment made by subsection (a) [to subsec. (c) of this section] shall apply only with respect to claims the last day for the filing of which occurs after the effective date specified in section 1 (c) of this Act [set out as a note under section 4001 of this title]."

Amendment of subsec. (1) by Pub. L. 85-859 effective on the first day of the first calendar quarter which begins more than 60 days after Sept. 2, 1958, see section 1 (c) of Pub. L. 85-859, set out as a note under section 4001 of this title.

EFFECTIVE DATE OF 1956 AMENDMENT Amendment of this section by act July 25, 1956, applicable to amounts paid on or after the first day of the first month which begins more than sixty days after July 25, 1956, for transportation commencing on or after such first day, see section 6 of act July 25, 1956, set out as a note under section 4261 of this title.

CROSS REFERENCES

Time and place for examination pursuant to subsection (f) (2) of this section, see section 7605 (a) of this title.

§ 6422. Cross references.

(1) For limitations on credits and refunds, see subchapter B of chapter 66.

(2) For overpayment arising out of adjustments incident to involuntary liquidation of inventory, see section 1321. (3) For overpayment in case of adjustments to accrued foreign taxes, see section 905 (c).

(4) For credit or refund in case of deficiency dividends paid by a personal holding company, see section 547.

(5) For refund, credit, or abatement of amounts disallowed by courts upon review of Tax Court decision, see section 7486. (6) For abatement or refund of tax on transfers to avoid income tax, see section 1494 (b).

(7) For overpayment in certain renegotiations of war contracts, see section 1481.

(8) For refund or redemption of stamps, see chapter 69. (9) For abatement, credit, or refund in case of jeopardy assessments, see chapter 70.

(10) For treatment of certain overpayments as having been refunded, in connection with sale of surplus war-built vessels, see section 9(b) (8) of the Merchant Ship Sales Act of 1946 (60 Stat. 48; 50 U.S.C. App. 1742).

(11) For restrictions on transfers and assignments of claims against the United States, see R.S. 3477 (31 U.S.C. 203).

(12) For set-off of claims against amounts due the United States, see the act of March 3, 1875, as amended by section 13 of the act of March 3, 1933 (47 Stat. 1516; 31 U.S.C. 227). (13) For special provisions relating to alcohol and tobacco taxes, see subtitle E.

(Aug. 16, 1954, ch. 736, 68A Stat. 802, formerly § 6420 renumbered § 6421, Apr. 2, 1956, ch. 160, § 1 70 Stat. 87; renumbered § 6422, June 29, 1956, ch. 462, title II, § 208 (c), 70 Stat. 394, and amended Sept. 2, 1958, Pub. L. 85-859, title II, § 204(4), 72 Stat. 1429; June 4, 1963, Pub. L. 88-36, title II, § 201(c), 77 Stat. 54.)

AMENDMENTS

1963-Par. (7). Pub. L. 88-36 redesignated former par. (8) as (7) and eliminated former par. (7) which was cross reference provision for abatement or refund in case of tax on silver bullion to section 4894.

Pars. (8)-(13). Pub. L. 88-36 redesignated former pars. (9)-(14) as (8)-(13). Former par. (8) redesignated as (7).

1958-Pub. L. 85-859 substituted "subtitle E" for "sections 5011, 5044, 5057, 5063, 5705, and 5707" in par. (14).

EFFECTIVE DATE OF 1963 AMENDMENT Amendment of section as applicable only with respect to transfers after June 4, 1963, see section 202 of Pub. L. 88-36, set out as a note under former sections 4891-4897 of this title.

EFFECTIVE DATE OF 1958 AMENDMENT Amendment of section by Pub. L. 85-859 effective on Sept. 3, 1958, see section 210 (a) (1) of Pub. L. 85-859, set out as a note under section 5001 of this title.

§ 6423. Conditions to allowance in the case of alcohol and tobacco taxes.

(a) Conditions.

No credit or refund shall be allowed or made, in pursuance of a court decision or otherwise, of any amount paid or collected as an alcohol or tobacco tax unless the claimant establishes (under regulations prescribed by the Secretary or his delegate) — (1) that he bore the ultimate burden of the amount claimed; or

(2) that he has unconditionally repaid the amount claimed to the person who bore the ultimate burden of such amount; or

(3) that (A) the owner of the commodity furnished him the amount claimed for payment of the tax, (B) he has filed with the Secretary or his delegate the written consent of such owner to the allowance to the claimant of the credit or refund, and (C) such owner satisfies the requirements of paragraph (1) or (2).

(b) Filing of claims.

No credit or refund of any amount to which subsection (a) applies shall be allowed or made unless a claim therefor has been filed by the person who paid the amount claimed, and, except as hereinafter provided in this subsection, unless such claim is filed after April 30, 1958, and within the time prescribed by law, and in accordance with regulations prescribed by the Secretary or his delegate. All evidence relied upon in support of such claim shall be clearly set forth and submitted with the claim. Any claimant who has on or before April 30, 1958, filled a claim for any amount to which subsection (a) applies may, if such claim was not barred from allowance on April 30, 1958, file a superseding claim after April 30, 1958, and on or before April 30, 1959, conforming to the requirements of this section and covering the amount (or any part thereof) claimed in such prior claim.

No claim filed before May 1, 1958, for the credit or refund of any amount to which subsection (a) applies shall be held to constitute a claim for refund or credit within the meaning of, or for purposes of, section 7422 (a); except that any claimant who instituted a suit before June 15, 1957, for recovery of any amount to which subsection (a) applies shall not be barred by this subsection from the maintenance of such suit as to any amount claimed in such suit on such date if in such suit he establishes the conditions to allowance required under subsection (a) with respect to such amount.

Any suit or proceeding, with respect to any amount to which subsection (a) applies, which is barred on April 30, 1958, shall remain barred. No claim for credit or refund of any such amount which is barred from allowance on April 30, 1958, shall be allowed after such date in any amount.

(d) Application of section.

This section shall apply only if the credit or refund is claimed on the grounds that an amount of alcohol or tobacco tax was assessed or collected erroneously, illegally, without authority, or in any manner wrongfully, or on the grounds that such amount was excessive. This section shall not apply to

(1) any claim for drawback,

(2) any claim made in accordance with any law expressly providing for credit or refund where a commodity is withdrawn from the market, returned to bond, or lost or destroyed, and

(3) any amount claimed with respect to a commodity which has been lost, where a suit or proceeding was instituted before June 15, 1957. (e) Meaning of terms.

For purposes of this section

(1) Alcohol or tobacco tax.

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.

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

6501. Limitations on assessment and collection. 6502. Collection after assessment.

6503. Suspension of running of period of limitation. 6504. Cross references.

§ 6501. Limitations on assessment and collection. (a) General rule.

Except as otherwise provided in this section, the amount of any tax imposed by this title shall be assessed within 3 years after the return was filed (whether or not such return was filed on or after the date prescribed) or, if the tax is payable by stamp, at any time after such tax became due and before the expiration of 3 years after the date on which any part of such tax was paid, and no proceeding in court without assessment for the collection of such tax shall be begun after the expiration of such period.

(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 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.

(2) Return of certain employment taxes.

For purposes of this section, if a return of tax imposed by chapter 21 or 24 for any period ending with or within a calendar year is filed before April 15 of the succeeding calendar year, such return shall be considered filed on April 15 of such calendar year.

(3) Return executed by Secretary.

Notwithstanding the provisions of paragraph (2) of section 6020 (b), the execution of a return by the Secretary or his delegate pursuant to the authority conferred by such section shall not start the running of the period of limitations on assessment and collection.

(1) False return.

In the case of a false or fraudulent return with the intent to evade tax, the tax may be assessed, or a proceeding in court for collection of such tax may be begun without assessment, at any time.

(2) Willful attempt to evade tax.

In case of a willful attempt in any manner to defeat or evade tax imposed by this title (other than tax imposed by subtitle A or B), the tax may be assessed, or a proceeding in court for the collection of such tax may be begun without assessment, at any time.

(3) No return.

In the case of failure to file a return, the tax may be assessed, or a proceeding in court for the collection of such tax may be begun without assessment, at any time.

(4) Extension by agreement.

Where, before the expiration of the time prescribed in this section for the assessment of any tax imposed by this title, except the estate tax provided in chapter 11, both the Secretary or his delegate and the taxpayer have consented in writing to its assessment after such time, the tax may be assessed at any time prior to the expiration of the period agreed upon. The period so agreed upon may be extended by subsequent agreements in writing made before the expiration of the period previously agreed upon.

(5) Tax resulting from changes in certain income tax or estate tax credits.

For special rules applicable in cases where the adjustment of certain taxes allowed as a credit against income taxes or estate taxes results in additional tax, see section 905 (c) (relating to the foreign tax credit for income tax purposes) and section 2016 (relating to taxes of foreign countries, States, etc., claimed as credit against estate taxes).

(6) Tax resulting from certain distributions or from termination as life insurance company.

In the case of any tax imposed under section 802(a) by reason of section 802(b) (3) on account of a termination of the taxpayer as an insurance company or as a life insurance company to which section 815 (d) (2) (A) applies, or on account of a distribution by the taxpayer to which section 815(d) (2) (B) applies, such tax may be assessed within 3 years after the return was filed (whether or not such return was filed on or after the date prescribed) for the taxable year for which the taxpayer ceases to be an insurance company, the second taxable year for which the taxpayer is not a life insurance company, or the taxable year in which the distribution is actually made, as the case may be.

(d) Request for prompt assessment.

Except as otherwise provided in subsection (c), (e), or (f), in the case of any tax (other than the tax imposed by chapter 11 of subtitle B, relating to estate taxes) for which return is required in the case of a decedent, or by his estate during the period of administration, or by a corporation, the tax shall be assessed, and any proceeding in court without assessment for the collection of such tax shall be begun, within 18 months after written request therefor (filed after the return is made and filled in such manner and such form as may be prescribed by regulations of the Secretary or his delegate) by the executor, administrator, or other fiduciary representing the estate of such decedent, or by the corporation, but not after the expiration of 3 years after

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United States Code, Volume 6