{"identifier":"/us/usc/t26/s6603","title":26,"num":"\u00a7\u202f6603.","heading":"Deposits made to suspend running of interest on potential underpayments, etc.","text":"\u00a7\u202f6603.\nDeposits made to suspend running of interest on potential underpayments, etc.\n(a)\nAuthority to make deposits other than as payment of tax\nA taxpayer may make a cash deposit with the Secretary which may be used by the Secretary to pay any tax imposed under subtitle A or B or chapter 41, 42, 43, or 44 which has not been assessed at the time of the deposit. Such a deposit shall be made in such manner as the Secretary shall prescribe.\n(b)\nNo interest imposed\nTo the extent that such deposit is used by the Secretary to pay tax, for purposes of section 6601 (relating to interest on underpayments), the tax shall be treated as paid when the deposit is made.\n(c)\nReturn of deposit\nExcept in a case where the Secretary determines that collection of tax is in jeopardy, the Secretary shall return to the taxpayer any amount of the deposit (to the extent not used for a payment of tax) which the taxpayer requests in writing.\n(d)\nPayment of interest\n(1)\nIn general\nFor purposes of section 6611 (relating to interest on overpayments), except as provided in paragraph (4), a deposit which is returned to a taxpayer shall be treated as a payment of tax for any period to the extent (and only to the extent) attributable to a disputable tax for such period. Under regulations prescribed by the Secretary, rules similar to the rules of section 6611(b)(2) shall apply.\n(2)\nDisputable tax\n(A)\nIn general\nFor purposes of this section, the term \u201cdisputable tax\u201d means the amount of tax specified at the time of the deposit as the taxpayer\u2019s reasonable estimate of the maximum amount of any tax attributable to disputable items.\n(B)\nSafe harbor based on 30-day letter\nIn the case of a taxpayer who has been issued a 30-day letter, the maximum amount of tax under subparagraph (A) shall not be less than the amount of the proposed deficiency specified in such letter.\n(3)\nOther definitions\nFor purposes of paragraph (2)\u2014\n(A)\nDisputable item\nThe term \u201cdisputable item\u201d means any item of income, gain, loss, deduction, or credit if the taxpayer\u2014\n(i) has a reasonable basis for its treatment of such item, and\n(ii) reasonably believes that the Secretary also has a reasonable basis for disallowing the taxpayer\u2019s treatment of such item.\n(B)\n30-day letter\nThe term \u201c30-day letter\u201d means the first letter of proposed deficiency which allows the taxpayer an opportunity for administrative review in the Internal Revenue Service Independent Office of Appeals.\n(4)\nRate of interest\nThe rate of interest under this subsection shall be the Federal short-term rate determined under section 6621(b), compounded daily.\n(e)\nUse of deposits\n(1)\nPayment of tax\nExcept as otherwise provided by the taxpayer, deposits shall be treated as used for the payment of tax in the order deposited.\n(2)\nReturns of deposits\nDeposits shall be treated as returned to the taxpayer on a last-in, first-out basis.","url":"https://projectusc.org/usc/t26/s6603.html","content":[{"t":"sec","id":"/us/usc/t26/s6603","children":[{"t":"num","text":"\u00a7\u202f6603."},{"t":"heading","text":"Deposits made to suspend running of interest on potential underpayments, etc."},{"t":"subsec","id":"/us/usc/t26/s6603/a","children":[{"t":"num","text":"(a)"},{"t":"heading","text":"Authority to make deposits other than as payment of tax"},{"t":"content","children":[{"t":"p","text":"A taxpayer may make a cash deposit with the Secretary which may be used by the Secretary to pay any tax imposed under subtitle A or B or chapter 41, 42, 43, or 44 which has not been assessed at the time of the deposit. Such a deposit shall be made in such manner as the Secretary shall prescribe.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t26/s6603/b","children":[{"t":"num","text":"(b)"},{"t":"heading","text":"No interest imposed"},{"t":"content","children":[{"t":"p","text":"To the extent that such deposit is used by the Secretary to pay tax, for purposes of section 6601 (relating to interest on underpayments), the tax shall be treated as paid when the deposit is made.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t26/s6603/c","children":[{"t":"num","text":"(c)"},{"t":"heading","text":"Return of deposit"},{"t":"content","children":[{"t":"p","text":"Except in a case where the Secretary determines that collection of tax is in jeopardy, the Secretary shall return to the taxpayer any amount of the deposit (to the extent not used for a payment of tax) which the taxpayer requests in writing.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t26/s6603/d","children":[{"t":"num","text":"(d)"},{"t":"heading","text":"Payment of interest"},{"t":"para","id":"/us/usc/t26/s6603/d/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"In general"},{"t":"content","children":[{"t":"p","text":"For purposes of section 6611 (relating to interest on overpayments), except as provided in paragraph (4), a deposit which is returned to a taxpayer shall be treated as a payment of tax for any period to the extent (and only to the extent) attributable to a disputable tax for such period. Under regulations prescribed by the Secretary, rules similar to the rules of section 6611(b)(2) shall apply.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s6603/d/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Disputable tax"},{"t":"subpara","id":"/us/usc/t26/s6603/d/2/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"In general"},{"t":"content","children":[{"t":"p","text":"For purposes of this section, the term \u201cdisputable tax\u201d means the amount of tax specified at the time of the deposit as the taxpayer\u2019s reasonable estimate of the maximum amount of any tax attributable to disputable items.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s6603/d/2/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Safe harbor based on 30-day letter"},{"t":"content","children":[{"t":"p","text":"In the case of a taxpayer who has been issued a 30-day letter, the maximum amount of tax under subparagraph (A) shall not be less than the amount of the proposed deficiency specified in such letter.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s6603/d/3","children":[{"t":"num","text":"(3)"},{"t":"heading","text":"Other definitions"},{"t":"chapeau","text":"For purposes of paragraph (2)\u2014"},{"t":"subpara","id":"/us/usc/t26/s6603/d/3/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"Disputable item"},{"t":"chapeau","text":"The term \u201cdisputable item\u201d means any item of income, gain, loss, deduction, or credit if the taxpayer\u2014"},{"t":"clause","id":"/us/usc/t26/s6603/d/3/A/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" has a reasonable basis for its treatment of such item, and","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t26/s6603/d/3/A/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" reasonably believes that the Secretary also has a reasonable basis for disallowing the taxpayer\u2019s treatment of such item.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s6603/d/3/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"30-day letter"},{"t":"content","children":[{"t":"p","text":"The term \u201c30-day letter\u201d means the first letter of proposed deficiency which allows the taxpayer an opportunity for administrative review in the Internal Revenue Service Independent Office of Appeals.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s6603/d/4","children":[{"t":"num","text":"(4)"},{"t":"heading","text":"Rate of interest"},{"t":"content","children":[{"t":"p","text":"The rate of interest under this subsection shall be the Federal short-term rate determined under section 6621(b), compounded daily.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t26/s6603/e","children":[{"t":"num","text":"(e)"},{"t":"heading","text":"Use of deposits"},{"t":"para","id":"/us/usc/t26/s6603/e/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"Payment of tax"},{"t":"content","children":[{"t":"p","text":"Except as otherwise provided by the taxpayer, deposits shall be treated as used for the payment of tax in the order deposited.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s6603/e/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Returns of deposits"},{"t":"content","children":[{"t":"p","text":"Deposits shall be treated as returned to the taxpayer on a last-in, first-out basis.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"text","text":"\n"},{"t":"text","text":"\n"}]}]}