(g) Income tax credit in lieu of payment (1) PERSONS NOT SUBJECT TO INCOME TAX.-Payment shall be made under subsection (a) only to (A) the United States or an agency or instrumentality thereof, a State, a political subdivision of a State, or an agency or instrumentality of one or more States or political subdivisions, or (B) an organization exempt from tax under section 501 (a) (other than an organization required to make a return of the tax imposed under subtitle A for its taxable year). (2) EXCEPTION.-Paragraph (1) shall not apply to a payment of a claim filed under subsection (b) (2). (3) ALLOWANCE OF CREDIT AGAINST INCOME TAX.-For allowance of credit against the tax imposed by subtitle A for lubricating oil used, see section 39. (h) Cross references (1) For civil penalty for excessive claims under this section, see section 6675. (2) For fraud penalties etc., see chapter 75 (section 7201 and following, relating to crimes, other offenses, and forfeitures). (Added Pub. L. 89-44, Title II, § 202(b), June 21, 1965, 79 Stat. 137; Pub. L. 91-258, Title II, § 207 (b), May 21, 1970, 84 Stat. 248.) Sec. 6427. Fuels not used for taxable purposes. (a) Nontaxable uses * Except as provided in subsection (f), if tax has been imposed under section 4041 (a), (b), or (c) on the sale of any fuel and, after June 30, 1970, the purchaser uses such fuel other than for the use for which sold, or resells such fuel, the Secretary or his delegate shall pay (without interest) to him an amount equal to— (1) the amount of tax imposed on the sale of the fuel to him, reduced by (2) if he uses the fuel, the amount of tax which would have been imposed under section 4041 on such use if no tax under section 4041 had been imposed on the sale of the fuel. (b) Local transit systems (1) ALLOWANCE.-Except as provided in subsection (f) if any fuel on the sale of which tax was imposed under section 4041 (a) or (b) is, after June 30, 1970, used by the purchaser 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 purchaser the amount determined by multiplying— (A) 2 cents for each gallon of fuel so used on which tax was imposed at the rate of 4 cents a gallon, by (B) the percentage which the purchaser's commuter fare revenue (as defined in section 6421 (d) (2)) derived from such scheduled service during the quarter was of his total passenger fare revenue derived from such scheduled service during the quarter. (2) LIMITATION.-Paragraph (1) shall apply in respect of fuel used during any calendar quarter only if at least 60 percent of the total passenger fare revenue derived during the quarter from scheduled service described in paragraph (1) by the purchaser was attributable to commuter fare revenue derived during the quarter by the purchaser from such scheduled service. (c) Use for farming purposes Except as provided in subsection (f), if any fuel on the sale of which tax was imposed under section 4041 (a), (b), or (c) is, after June 30, 1970, used on a farm for farming purposes (within the meaning of section 6420 (c)), the Secretary or his delegate shall pay (without interest) to the purchaser an amount equal to the amount of the tax imposed on the sale of the fuel. For purposes of this subsection, if fuel is used on a farm by any person other than the owner, tenant, or operator of such farm, such owner, tenant, or operator shall be treated as the user and purchaser of such fuel. (d) Time for filing claims; period covered (1) GENERAL RULE.-Except as provided in paragraph (2), not more than one claim may be filed under subsection (a), (b), or (c), by any person with respect to fuel used during his taxable year; and no claim shall be allowed under this paragraph with respect to fuel used during any taxable year unless filed by the purchaser not later than the time prescribed by law for filing a claim for credit or refund of overpayment of income tax for such taxable year. For purposes of this paragraph, a person's taxable year shall be his taxable year for purposes of subtitle A. (2) EXCEPTION.-If $1,000 or more is payable under subsections (a) and (b) to any person with respect to fuel used during any of the first three quarters of his taxable year, a claim may be filed under this section by the purchaser with respect to fuel used during such quarter. No claim filed under this paragraph shall be allowed unless filed on or before the last day of the first quarter following the quarter for which the claim is filed. (e) Applicable laws (1) IN GENERAL.-All provisions of law, including penalties, applicable in respect of the taxes imposed by section 4041 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. (f) Income tax credit in lieu of payment (1) PERSONS NOT SUBJECT TO INCOME TAX.-Payment shall be made under this section only to— (A) the United States or an agency or instrumentality thereof, a State, a political subdivision of a State, or any agency or instrumentality of one or more States or political subdivisions, or (B) an organization exempt from tax under section 501 (a) (other than an organization required to make a return of the tax imposed under subtitle A for its taxable year). (2) EXCEPTION.-Paragraph (1) shall not apply to a payment of a claim filed under subsection (d) (2). (3) ALLOWANCE OF CREDIT AGAINST INCOME TAX.-For allowances of credit against the income tax imposed by subtitle A for fuel used or resold by the purchaser, see section 39. (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) Cross References (1) For civil penalty for excessive claims under this section, see section 6675. (2) For fraud penalties, etc., see chapter 75 (section 7201 and following, relating to crimes, other offenses, and forfeitures). (Added Pub. L. 91-258, Title II, § 207 (a), May 21, 1970, 84 Stat. 246.) * Sec. 6504. Cross references. For limitation period in case of (1) Adjustments incident to involuntary liquidation of inventory, see section 1321. (2) Adjustments to accrued foreign taxes, see section 905 (c). (3) Change of election with respect to the standard deduction where taxpayer and his spouse make separate returns, see section 144 (b). (4) Involuntary conversion of property, see section 1033 (a) (3) (C) and (D). (5) Gain upon sale or exchange of residence, see section 1034 (j). (6) War loss recoveries where prior benefit rule is elected, see section 1335. (7) Recovery of unconstitutional Federal taxes, see section 1346. (8) Repealed. Pub. L. 91–172, Title II, § 213(c) (3), Dec. 30, 1969, 83 Stat. 572. (9) Application by fiduciary for discharge from personal liability for estate tax, see section 2204. (10) Insolvent banks and trust companies, see section 7507. (11) Service in a combat zone, etc., see section 7508. (12) Claims against transferees and fiduciaries, see chapter 71. (13) Assessments to recover excessive amounts paid under section 6420 (relating to gasoline used on farms) and assessments of civil penalties under section 6675 for excessive claims under section 6420, see section 6206. (14) Assessments to recover excessive amounts paid under section 6421 (relating to gasoline used for certain nonhighway purposes or by local transit systems) and assessments of civil penalties under section 6675 for excessive claims under section 6421, see section 6206. (15) Assessment and collection of interest, see section 6601 (h). (Aug. 16, 1954, c. 736, 68A Stat. 807; Apr. 2, 1956, c. 160, § 4(d), 70 Stat. 91; June 29, 1956, c. 462, Title II, § 208(e) (5), 70 Stat. 397; Sept. 2, 1958, Pub. L. 85-866, Title I, § 84(b), 72 Stat. 1664; Feb. 26, 1964, Pub. L. 88272, Title I, § 112(d) (2), 78 Stat. 24; Dec. 30, 1969, Pub. L. 91–172, Title II, § 213(c) (3), 83 Stat. 572; Dec. 31, 1970, Pub. L. 91-614, Title I, § 101 (d) (2), 84 Stat. 1837.) * Sec. 6511. Limitations on credit or refund. (a) Period of limitation on filing claim Claim for credit or refund of an overpayment of any tax imposed by this title in respect of which tax the taxpayer is required to file a return shall be filed by the taxpayer within 3 years from the time the return was filed or 2 years from the time the tax was paid, whichever of such periods expires the later, or if no return was filed by the taxpayer, within 2 years from the time the tax was paid. Claim for credit or refund of an overpayment of any tax imposed by this title which is required to be paid by means of a stamp shall be filed by the taxpayer within 3 years from the time the tax was paid. (b) Limitation on allowance of credits and refunds (1) FILING OF CLAIM WITHIN PRESCRIBED PERIOD.-No credit or refund shall be allowed or made after the expiration of the period of limitation prescribed in subsection (a) for the filing of a claim for credit or refund, unless a claim for credit or refund is filed by the taxpayer within such period. (2) LIMIT ON AMOUNT OF CREDIT OR REFUND.— (A) Limit where claim filed within 3-year period.—If the claim was filed by the taxpayer during the 3-year period prescribed in subsection (a), the amount of the credit or refund shall not exceed the portion of the tax paid within the period, immediately preceding the filing of the claim, equal to 3 years plus the period of any extension of time for filing the return. If the tax was required to be paid by means of a stamp, the amount of the credit or refund shall not exceed the portion of the tax paid within the 3 years immediately preceding the filing of the claim. (B) Limit where claim not filed within 3-year period.—If the claim was not filed within such 3-year period, the amount of the credit or refund shall not exceed the portion of the tax paid during the 2 years immediately preceding the filing of the claim. (C) Limit if no claim filed.-If no claim was filed, the credit or refund shall not exceed the amount which would be allowable under subparagraph (A) or (B), as the case may be, if claim was filed on the date the credit or refund is allowed. (c) Special rules applicable in case of extension of time by agreement If an agreement under the provisions of section 6501 (c) (4) extending the period for assessment of a tax imposed by this title is made within the period prescribed in subsection (a) for the filing of a claim for credit or refund (1) TIME FOR FILING CLAIM.-The period for filing claim for credit or refund or for making credit or refund if no claim is filed, provided in subsections (a) and (b)(1), shall not expire prior to 6 months after the expiration of the period within which an assessment may be made pursuant to the agreement or any extension thereof under section 6501 (c) (4). (2) LIMIT ON AMOUNT.—If a claim is filed, or a credit or refund is allowed when no claim was filed, after the execution of the agreement and within 6 months after the expiration of the period within which an assessment may be made pursuant to the agreement or any extension thereof, the amount of the credit or refund shall not exceed the portion of the tax paid after the execution of the agreement and before the filing of the claim or the making of the credit or refund, as the case may be, plus the portion of the tax paid within the period which would be applicable under subsection (b) (2) if a claim had been filed on the date the agreement was executed. (3) CLAIMS NOT SUBJECT TO SPECIAL RULE.-This subsection shall not apply in the case of a claim filed, or credit or refund allowed if no claim is filed, either— (A) prior to the execution of the agreement or (B) more than 6 months after the expiration of the period within which an assessment may be made pursuant to the agreement or any extension thereof. |