§1313 — Title 26 Internal Revenue Code | U.S. Code

Summary

Fixing certain tax mistakes first requires a final "determination." That can be a final court decision, a closing agreement with the IRS, the IRS's final handling of a refund claim, or a special signed agreement between the IRS and a taxpayer. A refund claim counts as finally handled when the refund is allowed, when a disallowance notice is mailed, or when the time to sue over a denied claim runs out. A "taxpayer" here is anyone who owes tax under the law involved. A "related taxpayer" is someone closely connected to the person in the determination, such as a husband and wife, a grantor and a fiduciary or beneficiary, a fiduciary and a beneficiary or heir, a decedent and the decedent's estate, business partners, or companies in the same affiliated group.

Title 26, §1313

Internal Revenue Code — Source: USLM XML via OLRC

(a)For purposes of this part, the term “determination” means—

(1)a decision by the Tax Court or a judgment, decree, or other order by any court of competent jurisdiction, which has become final;

(2)a closing agreement made under section 7121;

(3)a final disposition by the Secretary of a claim for refund. For purposes of this part, a claim for refund shall be deemed finally disposed of by the Secretary—

(A)as to items with respect to which the claim was allowed, on the date of allowance of refund or credit or on the date of mailing notice of disallowance (by reason of offsetting items) of the claim for refund, and

(B)as to items with respect to which the claim was disallowed, in whole or in part, or as to items applied by the Secretary in reduction of the refund or credit, on expiration of the time for instituting suit with respect thereto (unless suit is instituted before the expiration of such time); or

(4)under regulations prescribed by the Secretary, an agreement for purposes of this part, signed by the Secretary and by any person, relating to the liability of such person (or the person for whom he acts) in respect of a tax under this subtitle for any taxable period.

(b)Notwithstanding section 7701(a)(14), the term “taxpayer” means any person subject to a tax under the applicable revenue law.

(c)For purposes of this part, the term “related taxpayer” means a taxpayer who, with the taxpayer with respect to whom a determination is made, stood, in the taxable year with respect to which the erroneous inclusion, exclusion, omission, allowance, or disallowance was made, in one of the following relationships:

(1)husband and wife,

(2)grantor and fiduciary,

(3)grantor and beneficiary,

(4)fiduciary and beneficiary, legatee, or heir,

(5)decedent and decedent’s estate,

(6)partner, or

(7)member of an affiliated group of corporations (as defined in section 1504).

Editorial Notes

Amendments

1976—Subsec. (a)(3), (4). Pub. L. 94–455 struck out “or his delegate” after “Secretary” wherever appearing.

§1313 Definitions

Summary

Title 26, §1313

Notes & Related Subsidiaries

Editorial Notes

Amendments

Citations & Metadata