Title 26 — Internal Revenue CodeRelease 119-73
§6214 Determinations by Tax Court
Title 26 › Subtitle Subtitle F— - Procedure and Administration › Chapter CHAPTER 63— - ASSESSMENT › Subchapter Subchapter B— - Deficiency Procedures in the Case of Income, Estate, Gift, and Certain Excise Taxes › § 6214
Summary
The Tax Court can refigure a tax shortfall even if the new amount is larger than the one the IRS told the taxpayer. The court can also decide whether extra tax or additions should be charged, but only if the Secretary asks for those at or before the hearing. When refiguring income or gift tax, the court may look at facts from other years or quarters if that helps get the number right, but it cannot rule that taxes for those other years were too high or too low. The court may use the fairness rule called equitable recoupment like federal district courts. The same limits apply for taxes under section 507 or chapters 41–44, and for certain “second tier” taxes the court must decide if the taxable event was corrected. The date a Tax Court decision is final follows section 7481, and rules about refunds and penalties are in section 6512(b)(2).
Full Legal Text
Title 26, §6214
Internal Revenue Code — Source: USLM XML via OLRC
(a)Except as provided by section 7463, the Tax Court shall have jurisdiction to redetermine the correct amount of the deficiency even if the amount so redetermined is greater than the amount of the deficiency, notice of which has been mailed to the taxpayer, and to determine whether any additional amount, or any addition to the tax should be assessed, if claim therefor is asserted by the Secretary at or before the hearing or a rehearing.
(b)The Tax Court in redetermining a deficiency of income tax for any taxable year or of gift tax for any calendar year or calendar quarter shall consider such facts with relation to the taxes for other years or calendar quarters as may be necessary correctly to redetermine the amount of such deficiency, but in so doing shall have no jurisdiction to determine whether or not the tax for any other year or calendar quarter has been overpaid or underpaid. Notwithstanding the preceding sentence, the Tax Court may apply the doctrine of equitable recoupment to the same extent that it is available in civil tax cases before the district courts of the United States and the United States Court of Federal Claims.
(c)The Tax Court, in redetermining a deficiency of any tax imposed by section 507 or chapter 41, 42, 43, or 44 for any period, act, or failure to act, shall consider such facts with relation to the taxes under chapter 41, 42, 43, or 44 for other periods, acts, or failures to act as may be necessary correctly to redetermine the amount of such deficiency, but in so doing shall have no jurisdiction to determine whether or not the taxes under chapter 41, 42, 43, or 44 for any other period, act, or failure to act have been overpaid or underpaid. The Tax Court, in redetermining a deficiency of any second tier tax (as defined in section 4963(b)), shall make a determination with respect to whether the taxable event has been corrected.
(d)For purposes of this chapter, chapter 41, 42, 43, or 44, and subtitles A or B the date on which a decision of the Tax Court becomes final shall be determined according to the provisions of section 7481.
(e)For provision giving Tax Court jurisdiction to order a refund of an overpayment and to award sanctions, see section 6512(b)(2).
Legislative History
Notes & Related Subsidiaries
Editorial Notes
Amendments
2006—Subsec. (b). Pub. L. 109–280 inserted at end “Notwithstanding the preceding sentence, the Tax Court may apply the doctrine of equitable recoupment to the same extent that it is available in civil tax cases before the district courts of the United States and the United States Court of Federal Claims.” 1996—Subsec. (e). Pub. L. 104–188 amended subsec. (e) generally, striking par. (2) designation and par. (1) which provided cross reference to section 6621(c)(4) of this title for provision giving Tax Court jurisdiction to determine whether any portion of deficiency is a substantial underpayment attributable to tax motivated transactions. 1988—Subsec. (c). Pub. L. 100–418, § 1941(b)(2)(B)(vi), substituted “or 44” for “44, or 45” in heading and wherever appearing in text. Subsec. (d). Pub. L. 100–418, § 1941(b)(2)(B)(vii), substituted “or 44” for “44, or 45”. Subsec. (e). Pub. L. 100–647 substituted “references” for “reference” in heading, designated existing provisions as par. (1), and added par. (2). 1986—Subsec. (a). Pub. L. 99–514, § 1554(a), substituted “any addition to the tax” for “addition to the tax”. Subsec. (c). Pub. L. 99–514, § 1833, substituted “section 4963(b)” for “section 4962(b)”. Subsec. (e). Pub. L. 99–514, § 1511(c)(8), substituted “section 6621(c)(4)” for “section 6621(d)(4)”. 1984—Subsec. (e). Pub. L. 98–369 added subsec. (e). 1980—Subsec. (c). Pub. L. 96–596 inserted provision directing the Tax Court, in redetermining a deficiency of any second tier tax, to make a determination with respect to whether the taxable event has been corrected. Pub. L. 96–223, § 101(f)(1)(F), inserted reference to chapter 45. Subsec. (d). Pub. L. 96–223, § 101(f)(1)(G), inserted reference to chapter 45. 1976—Subsec. (a). Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”. Subsec. (c). Pub. L. 94–455, §§ 1307(d)(2)(F)(iv), (H), 1605(b)(7)(A), (B), substituted in heading and in text “41, 42, 43, or 44” for “42 or 43”. Subsec. (d). Pub. L. 94–455, §§ 1307(d)(2)(F)(iv), 1605(b)(7)(C), substituted “41, 42, 43, or 44” for “42 or 43”. 1974—Subsec. (c). Pub. L. 93–406, § 1016(a)(12)(A), (B), inserted reference to chapter 43 in heading and in text. Subsec. (d). Pub. L. 93–406, § 1016(a)(12)(C), inserted reference to chapter 43. 1970—Subsec. (b). Pub. L. 91–614 inserted reference to calendar quarters in heading and in text in regard to gift tax deficiencies. 1969—Subsec. (a). Pub. L. 91–172, § 960(a), inserted reference to exception provided for in section 7463 of this title. Subsecs. (c), (d). Pub. L. 91–172, § 101(j)(43), (44), added subsec. (c), redesignated former subsec. (c) as (d), and, in subsec. (d) as so redesignated, inserted reference to chapter 42.
Statutory Notes and Related Subsidiaries
Effective Date
of 2006 Amendment Pub. L. 109–280, title VIII, § 858(b), Aug. 17, 2006, 120 Stat. 1020, provided that: “The amendment made by this section [amending this section] shall apply to any action or proceeding in the United States Tax Court with respect to which a decision has not become final (as determined under section 7481 of the Internal Revenue Code of 1986) as of the date of the enactment of this Act [Aug. 17, 2006].”
Effective Date
of 1988
Amendments
Pub. L. 100–647, title VI, § 6244(c), Nov. 10, 1988, 102 Stat. 3750, provided that: “The
Amendments
made by this section [amending this section and section 6512 of this title] shall apply to overpayments determined by the Tax Court which have not yet been refunded by the 90th day after the date of the enactment of this Act [Nov. 10, 1988].” Amendment by Pub. L. 100–418 applicable to crude oil removed from the premises on or after Aug. 23, 1988, see section 1941(c) of Pub. L. 100–418, set out as a note under section 164 of this title.
Effective Date
of 1986 AmendmentAmendment by section 1511(c)(8) of Pub. L. 99–514 applicable for purposes of determining interest for periods after Dec. 31, 1986, see section 1511(d) of Pub. L. 99–514, set out as a note under section 47 of this title. Pub. L. 99–514, title XV, § 1554(b), Oct. 22, 1986, 100 Stat. 2754, provided that: “The amendment made by subsection (a) [amending this section] shall apply to any action or proceeding in the Tax Court with respect to which a decision has not become final (as determined under section 7481 of the Internal Revenue Code of 1954 [now 1986]) before the date of the enactment of this Act [Oct. 22, 1986].” Amendment by section 1833 of Pub. L. 99–514 effective, except as otherwise provided, as if included in the provisions of the Tax Reform Act of 1984, Pub. L. 98–369, div. A, to which such amendment relates, see section 1881 of Pub. L. 99–514, set out as a note under section 48 of this title.
Effective Date
of 1984 AmendmentAmendment by Pub. L. 98–369 applicable with respect to interest accruing after Dec. 31, 1984, see section 144(c) of Pub. L. 98–369, set out as a note under section 6621 of this title.
Effective Date
of 1980
Amendments
For
Effective Date
of amendment by Pub. L. 96–596 with respect to any first tier tax and to any second tier tax, see section 2(d) of Pub. L. 96–596, set out as an
Effective Date
note under section 4961 of this title. Amendment by Pub. L. 96–223 applicable to periods after Feb. 29, 1980, see section 101(i) of Pub. L. 96–223, set out as a note under section 6161 of this title.
Effective Date
of 1976 AmendmentAmendment by section 1307(d)(2)(F)(iv), (H) of Pub. L. 94–455 effective on and after Oct. 4, 1976, see section 1307(e)(6) of Pub. L. 94–455, set out as a note under section 501 of this title. For
Effective Date
of amendment by section 1605(b)(7) of Pub. L. 94–455, see section 1608(d) of Pub. L. 94–455, set out as a note under section 856 of this title.
Effective Date
of 1974 AmendmentAmendment by Pub. L. 93–406 applicable, except as otherwise provided in section 1017(c) through (i) of Pub. L. 93–406, for plan years beginning after Sept. 2, 1974, but, in the case of plans in existence on Jan. 1, 1974, amendment by Pub. L. 93–406 applicable for plan years beginning after Dec. 31, 1975, see section 1017 of Pub. L. 93–406, set out as an
Effective Date
Transitional Rules note under section 410 of this title.
Effective Date
of 1970 AmendmentAmendment by Pub. L. 91–614 applicable with respect to gifts made after Dec. 31, 1970, see section 102(e) of Pub. L. 91–614, set out as a note under section 2501 of this title.
Effective Date
of 1969 AmendmentAmendment by section 101(j)(43), (44) of Pub. L. 91–172 effective Jan. 1, 1970, see section 101(k)(1) of Pub. L. 91–172, set out as an
Effective Date
note under section 4940 of this title. Amendment by section 960(a) of Pub. L. 91–172 effective one year after Dec. 30, 1969, see section 962(e) of Pub. L. 91–172, set out as an
Effective Date
note under section 7463 of this title. Plan
Amendments
Not Required Until January 1, 1989For provisions directing that if any
Amendments
made by subtitle A or subtitle C of title XI [§§ 1101–1147 and 1171–1177] or title XVIII [§§ 1800–1899A] of Pub. L. 99–514 require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after Jan. 1, 1989, see section 1140 of Pub. L. 99–514, as amended, set out as a note under section 401 of this title.
Reference
Citations & Metadata
Citation
26 U.S.C. § 6214
Title 26 — Internal Revenue Code
Last Updated
Apr 6, 2026
Release point: 119-73