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Title 26 — Internal Revenue CodeRelease 119-73

§7481 Date when Tax Court decision becomes final

Title 26 › Subtitle Subtitle F— - Procedure and Administration › Chapter CHAPTER 76— - JUDICIAL PROCEEDINGS › Subchapter Subchapter D— - Court Review of Tax Court Decisions › § 7481

Last updated Apr 6, 2026|Official source

Summary

A Tax Court decision becomes final when no one files a proper appeal in the allowed time or when higher courts finish reviewing and do not change the decision. If the Court of Appeals affirms and no petition for the Supreme Court is filed in time, the Tax Court decision is final when that time runs out. If the Supreme Court denies review, it is final on the denial. When the Supreme Court or the Court of Appeals sends back a changed decision, the Tax Court decision that follows that mandate is final 30 days after it is entered, unless the taxpayer or the IRS asks to correct it within those 30 days; if corrected, it is final when the correction is made. If the Supreme Court orders a rehearing or the case is remanded for rehearing, the same timing rules about petitions and denials apply. "Mandate" means the final order sending the case back. Decisions in cases under sections 7436(c) or 7463 become final 90 days after they are entered. Within 1 year after a decision becomes final under the main rule, a taxpayer can ask the Tax Court to reopen the case only to decide whether too much interest was paid or the IRS paid too little interest. That reopening rule applies when the IRS assessed the tax with interest under section 6215, the taxpayer paid the full deficiency plus interest, and the Tax Court finds an overpayment under section 6512(b). If the court finds an interest overpayment or underpayment, that result is treated as a tax overpayment under section 6512(b)(1) and can be reviewed like other Tax Court decisions. Subsection (d) applies to estates with a payment extension under section 6166 when certain interest is treated as an administrative expense under section 2053 (either interest on the extended federal estate tax or on state inheritance taxes during the extension).

Full Legal Text

Title 26, §7481

Internal Revenue Code — Source: USLM XML via OLRC

(a)Except as provided in subsections (b), (c), and (d), the decision of the Tax Court shall become final—
(1)Upon the expiration of the time allowed for filing a notice of appeal, if no such notice has been duly filed within such time; or
(2)(A)Upon the expiration of the time allowed for filing a petition for certiorari, if the decision of the Tax Court has been affirmed or the appeal dismissed by the United States Court of Appeals and no petition for certiorari has been duly filed; or
(B)Upon the denial of a petition for certiorari, if the decision of the Tax Court has been affirmed or the appeal dismissed by the United States Court of Appeals; or
(C)Upon the expiration of 30 days from the date of issuance of the mandate of the Supreme Court, if such Court directs that the decision of the Tax Court be affirmed or the appeal dismissed.
(3)(A)If the Supreme Court directs that the decision of the Tax Court be modified or reversed, the decision of the Tax Court rendered in accordance with the mandate of the Supreme Court shall become final upon the expiration of 30 days from the time it was rendered, unless within such 30 days either the Secretary or the taxpayer has instituted proceedings to have such decision corrected to accord with the mandate, in which event the decision of the Tax Court shall become final when so corrected.
(B)If the decision of the Tax Court is modified or reversed by the United States Court of Appeals, and if—
(i)the time allowed for filing a petition for certiorari has expired and no such petition has been duly filed, or
(ii)the petition for certiorari has been denied, or
(iii)the decision of the United States Court of Appeals has been affirmed by the Supreme Court, then the decision of the Tax Court rendered in accordance with the mandate of the United States Court of Appeals shall become final on the expiration of 30 days from the time such decision of the Tax Court was rendered, unless within such 30 days either the Secretary or the taxpayer has instituted proceedings to have such decision corrected so that it will accord with the mandate, in which event the decision of the Tax Court shall become final when so corrected.
(4)If the Supreme Court orders a rehearing; or if the case is remanded by the United States Court of Appeals to the Tax Court for a rehearing, and if—
(A)the time allowed for filing a petition for certiorari has expired and no such petition has been duly filed, or
(B)the petition for certiorari has been denied, or
(C)the decision of the United States Court of Appeals has been affirmed by the Supreme Court,
(5)As used in this section, the term “mandate”, in case a mandate has been recalled prior to the expiration of 30 days from the date of issuance thereof, means the final mandate.
(b)The decision of the Tax Court in a proceeding conducted under section 7436(c) or 7463 shall become final upon the expiration of 90 days after the decision is entered.
(c)(1)Notwithstanding subsection (a), if, within 1 year after the date the decision of the Tax Court becomes final under subsection (a) in a case to which this subsection applies, the taxpayer files a motion in the Tax Court for a redetermination of the amount of interest involved, then the Tax Court may reopen the case solely to determine whether the taxpayer has made an overpayment of such interest or the Secretary has made an underpayment of such interest and the amount thereof.
(2)This subsection shall apply where—
(A)(i)an assessment has been made by the Secretary under section 6215 which includes interest as imposed by this title, and
(ii)the taxpayer has paid the entire amount of the deficiency plus interest claimed by the Secretary, and
(B)the Tax Court finds under section 6512(b) that the taxpayer has made an overpayment.
(3)If the Tax Court determines under this subsection that the taxpayer has made an overpayment of interest or that the Secretary has made an underpayment of interest, then that determination shall be treated under section 6512(b)(1) as a determination of an overpayment of tax. An order of the Tax Court redetermining interest, when entered upon the records of the court, shall be reviewable in the same manner as a decision of the Tax Court.
(d)If with respect to a decedent’s estate subject to a decision of the Tax Court—
(1)the time for payment of an amount of tax imposed by chapter 11 is extended under section 6166, and
(2)there is treated as an administrative expense under section 2053 either—
(A)any amount of interest which a decedent’s estate pays on any portion of the tax imposed by section 2001 on such estate for which the time of payment is extended under section 6166, or
(B)interest on any estate, succession, legacy, or inheritance tax imposed by a State on such estate during the period of the extension of time for payment under section 6166,

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

1997—Subsec. (b). Pub. L. 105–34, § 1454(b)(3), substituted “section 7436(c) or 7463” for “section 7463”. Subsec. (c). Pub. L. 105–34, § 1452(a), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “Notwithstanding subsection (a), if— “(1) an assessment has been made by the Secretary under section 6215 which includes interest as imposed by this title, “(2) the taxpayer has paid the entire amount of the deficiency plus interest claimed by the Secretary, and “(3) within 1 year after the date the decision of the Tax Court becomes final under subsection (a), the taxpayer files a petition in the Tax Court for a determination that the amount of interest claimed by the Secretary exceeds the amount of interest imposed by this title, then the Tax Court may reopen the case solely to determine whether the taxpayer has made an overpayment of such interest and the amount of any such overpayment. If the Tax Court determines under this subsection that the taxpayer has made an overpayment of interest, then that determination shall be treated under section 6512(b)(1) as a determination of an overpayment of tax. An order of the Tax Court redetermining the interest due, when entered upon the records of the court, shall be reviewable in the same manner as a decision of the Tax Court.” 1988—Subsec. (a). Pub. L. 100–647, § 6247(b)(2), substituted “subsections (b), (c), and (d)” for “subsections (b) and (c)”. Pub. L. 100–647, § 6246(b)(2), substituted “subsections (b) and (c)” for “subsection (b)”. Subsec. (c). Pub. L. 100–647, § 6246(a), added subsec. (c). Subsec. (d). Pub. L. 100–647, § 6247(a), added subsec. (d). 1976—Subsec. (a)(3)(A), (B)(iii). Pub. L. 94–455 struck out “or his delegate” after “Secretary”. 1969—Pub. L. 91–172 designated existing provisions as subsec. (a), inserted reference to the exception provided for in subsec. (b), substituted “notice of appeal” for “petition for review” in par. (1), and substituted references to dismissal of appeal for references to dismissal of petition for review in par. (2), and added subsec. (b).

Statutory Notes and Related Subsidiaries

Effective Date

of 1997 Amendment Pub. L. 105–34, title XIV, § 1452(b), Aug. 5, 1997, 111 Stat. 1055, provided that: “The amendment made by this section [amending this section] shall take effect on the date of the enactment of this Act [Aug. 5, 1997].” Amendment by section 1454(b)(3) of Pub. L. 105–34 effective Aug. 5, 1997, see section 1454(c) of Pub. L. 105–34, set out as a note under section 6511 of this title.

Effective Date

of 1988 AmendmentAmendment by section 6246(a), (b)(2) of Pub. L. 100–647 applicable to assessments of deficiencies redetermined by the Tax Court made after Nov. 10, 1988, see section 6246(c) of Pub. L. 100–647, set out as a note under section 6512 of this title. Amendment by section 6247(a), (b)(2) of Pub. L. 100–647 effective with respect to Tax Court cases for which the decision is not final on Nov. 10, 1988, see section 6247(c) of Pub. L. 100–647, set out as a note under section 6512 of this title.

Effective Date

of 1969 AmendmentAmendment by Pub. L. 91–172 effective 30 days after Dec. 30, 1969, see section 962(f) of Pub. L. 91–172, set out as a note under section 7483 of this title.

Reference

Citations & Metadata

Citation

26 U.S.C. § 7481

Title 26 — Internal Revenue Code

Last Updated

Apr 6, 2026

Release point: 119-73