Taxable Years from the time the tax was paid, See fn. 10 for provisions re- Sec. 322. (b) (2) Limit on amount of credit or refund. The amount of the credit or refund shall not exceed the portion of the tax paid (A) If a return was filed by the taxpayer, and the claim was filed within three years from the time the return was filed, during the three years immediately preceding the filing of the claim. (B) If a claim was filed, and (i) no return was filed, or (ii) if the claim was not filed within three years from the time the return was filed by the taxpayer, during the two years immediately preceding the filing of the claim. (C) If no claim was filed and the allowance of credit or refund is made within three years from the time the return was filed by the taxpayer, during the three years immediately preceding the allowance of the credit or refund. (D) If no claim was filed, and (i) no return was filed or (ii) the allowance of the credit or refund is not made within three years from the time the return was filed by the taxpayer, during the two years immediately preceding the allowance of the credit or refund. Sec. 322. (b) (3) Exceptions in the case of waivers.-If both the Commissioner and the taxpayer have, within the period prescribed in paragraph (1) for the filing of a claim for credit or refund, agreed in writing under the provisions of section 276 (b) to extend beyond the period prescribed in section 275 the time within which the Commissioner may make an assessment, the period within which a claim for credit or refund may be filed, or credit or refund allowed or made ) Sec. 201 of the Act of Dec. 29, 1945 (59 Stat. amended the above by adding "or 1942" following "1941" and by striking out "1945" and inserting in lieu thereof "1946." Sec. 2, Act of July 31, 1946 (60 Stat. 749) further amended the above by striking out "1946" and inserting in lieu thereof "1947." The Act of Aug. 4, 1947 (61 Stat. 756) further amended the above by striking out "1947" and inserting in lieu thereof "1948." The Act of June 29, 1948 (62 Stat. 1102) further amended the above by striking out "1948" and inserting in lieu thereof "1949." The Act of Aug. 27, 1949 (Public Law 271) further amended the above by striking out "1949" and inserting in lieu thereof "1950." Taxable Years Beginning in 1949 if no claim is filed, shall be the period within which the Commissioner may make an assessment pursuant to such agreement or any extension thereof, and six months thereafter, except that the provisions of paragraph (1) shall apply to any claim filed, or credit or refund allowed or made, before the execution of such agreement. The amount of the credit or refund shall not exceed the total of the portions of tax paid (A) during the two years immediately preceding the execution of such agreement, or, if such agreement was executed within three years from the time the return was filed, during the three years immediately preceding the execution of such agreement, (B) after the execution of the agreement and before the expiration of the period within which the Commissioner might make an assessment pursuant to such agreement or any extension thereof, and (C) during six months after the expiration of such period, except that the provisions of paragraph (2) shall apply to any claim filed, or credit or refund allowed, before the execution of the agreement. If any portion of the tax is paid after the expiration of the period within which the Commissioner might make an assessment pursuant to such agreement, and if no claim for credit or refund is filed after the time of such payment and before the end of six months after the expiration of such period, then credit or refund may be allowed or made if a claim therefor is filed by the taxpayer within six months from the time of such payment, or, if no claim is filed within such six-month period after the payment, if the credit or refund is allowed or made within such period, but the amount of the credit or refund shall not exceed the portion of the tax paid during the six months immediately preceding the filing of the claim, or, if no claim was filed (and the credit or refund is allowed after six months after the expiration of the period within which the Commissioner might make an assessment), during the six months immediately preceding the allowance of the credit or refund. if no claim is filed, shall be the period within which the Commissioner may make an assessment pursuant to such agreement or any extension thereof, and six months thereafter, except that the provisions of paragraph (1) shall apply to any claim filed, or credit or refund allowed or made, before the execution of such agreement. The amount of the credit or refund shall not exceed the total of the portions of tax paid (A) during the two years immediately preceding the execution of such agreement, or, if such agreement was executed within three years from the time the return was filed, during the three years immediately preceding the execution of such agreement, (B) after the execution of the agreement and before the expiration of the period within which the Commissioner might make an assessment pursuant to such agreement or any extension thereof, and (C) during six months after the expiration of such period, except that the provisions of paragraph (2) shall apply to any claim filed, or credit or refund allowed, before the execution of the agreement. If any portion of the tax is paid after the expiration of the period within which the Commissioner might make an assessment pursuant to such agreement, and if no claim for credit or refund is filed after the time of such payment and before the end of six months after the expiration of such period, then credit or refund may be allowed or made if a claim therefor is filed by the taxpayer within six months from the time of such payment, or, if no claim is filed within such six-month period after the payment, if the credit or refund is allowed or made within such period, but the amount of the credit or refund shall not exceed the portion of the tax paid during the six months immediately preceding the filing of the claim, or, if no claim was filed (and the credit or refund is allowed after six months after the expiration of the period within which the Commissioner might make an assessment), during the six months immediately preceding the allowance of the credit or refund. Taxable Years Beginning before 1944 Taxable Years Beginning in 1949 Taxable Years Taxable Years Beginning in 1946 and 1947 Sec. 322. (b) (4) Return considered filed on due date. For the purposes of this subsection, a return filed before the last day prescribed by law for the filing thereof shall be considered as filed on such last day. For the purposes of paragraphs (2) and (3) of this subsection, and for the purposes of subsection (d) of this section, an advance payment of any portion of the tax made at the time such return was filed shall be considered as made on the last day prescribed by law for the payment of the tax or, if the taxpayer elected to pay the tax in installments, on the last day prescribed for the payment of the first installment. For the purposes of this paragraph, the last day prescribed by law for filing the return or paying the tax shall be determined without regard to any extension of time granted the taxpayer. Sec. 322. (b) (5) Special period of limitation with respect to bad debts and worthless securities.If the claim for credit or refund relates to an overpayment on account of (A) the deductibility by the taxpayer, under section 23 (k) (1), section 23 (k) (4), or section 204 (c), of a debt as a debt which became worthless, or, under section 23 (g) (2) or (k) (2), of a loss from worthlessness of a security, or (B) the effect that the deductibility of a debt or loss described in subparagraph (A) has on the application to the taxpayer of a carry over, in lieu of the three-year period of limitation prescribed in paragraph (1), the period shall be 7 years from the date prescribed by law for filing the return for the year with Sec. 322. (b) (4) Return considered filed on due date. Same as 1944. Sec. 322. (b) (5) Special period of limitation with respect to bad debts and worthless securities. Same as 1945. 11 Sec. 509. Retroactive effect of Section 169 of the Revenue Act of 1942. (a) IN GENERAL.-Section 169 (c) of the Revenue Act of 1942 (relating to the effective date of certain amendments to section 322) is amended by inserting at the end thereof the following: "A provision having the effect of the amendment inserting section 322 (b) (3) of the Internal Revenue Code, and a provision having the effect of the amendment made by subsection (b) of this section, shall be deemed to be included Sec. 322. (b) (4) Return considered filed on due date. Same as 1944. Sec. 322. (b) (5) Special period of limitation with respect to bad debts and worthless securities. Same as 1945. in the revenue laws respectively applicable to taxable years beginning after December 31, 1923, but such amendments shall be effective with respect to taxable years beginning prior to January 1, 1942, only if on or at some time after the date of the enactment of the Revenue Act of 1943 the Commissioner may assess the tax for such taxable year solely by reason of having made (either before, on, or after the date of the enactment of the Revenue Act of 1943) an agreement with the taxpayer pursuant to section 276 (b) of the Internal Taxable Years Sec. 322. (b) (4) Return considered filed on due date. Same as 1944. Sec. 322. (b) (5) Special period of limitation with respect to bad debts and worthless securities.— If the claim for credit or refund relates to an overpayment on account of (A) the deductibility by the taxpayer, under section 23 (k) (1), section 23 (k) (4), or section 204 (c), of a debt as a debt which became worthless, or, under section 23 (g) (2) or (k) (2), of a loss from worthlessness of a security, or Taxable Years Retroactivity See Sec. 509, R. A. of 1943, in fn. 11, with reference to retroactivity of Sec. 322 (b) (3), I. R. C., supra. Sec. 322. (b) (4) Return considered filed on due date. For the purposes of this subsection, a return filed before the last day prescribed by law for the filing thereof shall be considered as filed on such last day. For the purposes of paragraphs (2) and (3) of this subsection, and for the purposes of subsection (d) of this section, an advance payment of any portion of the tax made at the time such return was filed shall be considered as made on the last day prescribed by law for the payment of the tax or, if the taxpayer elected to pay the tax in installments, on the last day prescribed for the payment of the first installment. For the purposes of this paragraph, the last day prescribed by law for filing the return or paying the tax shall be determined without regard to any extension of time granted the taxpayer. (A) the deductibility by the taxpayer, under section 23 (k) (1), section 23 (k) (4), or section 204 (c), of a debt as a debt which became worthless, or, under section 23 (g) (2) or (k) (2), of a loss from worthlessness of a security, or plication to the taxpayer of a (B) the effect that the deducti- | bility of a debt or loss described in (B) the effect that the deductisubparagraph (A) has on the ap- bility of a debt or loss described in plication to the taxpayer of a subparagraph (A) has on the apcarry-over, or of a carry baek, in lieu of the three-year period of limitation prescribed in paragraph (1), the period shall be 7 years from the date prescribed by law for filing the return for the year with respect to which the claim is made. in lieu of the three-year period of Revenue Code or the corresponding provision of the applicable prior revenue law to extend beyond the time prescribed in section 275 or the corresponding provision of such prior revenue law the date within which the Commissioner may assess the tax." (b) CERTAIN TRANSFEREES.-If a transferee of a taxpayer and the Commissioner executed an agreement to extend the time within which the liability with respect to the tax of the taxpayer for a taxable year beginning in 1936 might be as Taxable Years Beginning before 1944 Sec. 322. (b) (4) Return considered filed on due date. Section originated 1942 as Ninth Edition, p. 576. Sec. 322. (b) (5) Special period of limitation with respect to bad debts and worthless securities. Section originated 1942 as Sec. 322 (b) (5), I. R. C., and was made retroactive to 1939. For any amendments prior to 1944, see Ninth Edition, p. 576. sessed against such transferee, any overpayment of the tax of the taxpayer with respect to such taxable year which the Tax Court of the United States finds has been paid by such transferee shall, when the decision of the Tax Court of the United States has become final, be credited or refunded to such transferee. Such credit or refund shall not exceed the amount paid by the transferee with respect to the tax of the taxpayer for such taxable year within the four years immediately preceding the execution of such agreement. |