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Title 26 — Internal Revenue CodeRelease 119-73

§2016 Recovery of Taxes Claimed as Credit

Title 26 › Subtitle Subtitle B— Estate and Gift Taxes › Chapter 11— ESTATE TAX › Subchapter A— Estates of Citizens or Residents › Part II— CREDITS AGAINST TAX › § 2016

Last updated Apr 6, 2026|Official source

Summary

If an estate claimed a credit for death taxes paid to a foreign country, and that country later refunds some of the money, the executor (or whoever got the refund) must notify the IRS. The IRS then recalculates the estate tax, and any extra tax due must be paid on notice and demand, even if the normal time limit for assessments has passed. No interest is charged for the period before the refund was received, except to the extent the foreign country paid interest on the refund.

Full Legal Text

Title 26, §2016

Internal Revenue Code — Source: USLM XML via OLRC

If any tax claimed as a credit under section 2014 is recovered from any foreign country, the executor, or any other person or persons recovering such amount, shall give notice of such recovery to the Secretary at such time and in such manner as may be required by regulations prescribed by him, and the Secretary shall (despite the provisions of section 6501) redetermine the amount of the tax under this chapter and the amount, if any, of the tax due on such redetermination, shall be paid by the executor or such person or persons, as the case may be, on notice and demand. No interest shall be assessed or collected on any amount of tax due on any redetermination by the Secretary resulting from a refund to the executor of tax claimed as a credit under section 2014, for any period before the receipt of such refund, except to the extent interest was paid by the foreign country on such refund.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

2002—Pub. L. 107–147 struck out “any State, any possession of the United States, or the District of Columbia,” after “any foreign country,”. 2001—Pub. L. 107–16 struck out “2011 or” before “2014 is recovered”. 1976—Pub. L. 94–455 struck out “Territory or” after “any State, any” and “or his delegate” after “Secretary”.

Statutory Notes and Related Subsidiaries

Effective Date

of 2002 AmendmentAmendment by Pub. L. 107–147 effective as if included in the provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001, Pub. L. 107–16, to which such amendment relates, see section 411(x) of Pub. L. 107–147, set out as a note under section 25B of this title.

Effective Date

of 2001 AmendmentAmendment by Pub. L. 107–16 applicable to estates of decedents dying, and generation-skipping transfers, after Dec. 31, 2004, see section 532(d) of Pub. L. 107–16, set out as a note under section 2012 of this title.

Effective Date

of 1976 AmendmentAmendment by section 1902(a)(12)(C) of Pub. L. 94–455 applicable to estates of decedents dying after Oct. 4, 1976, see section 1902(c)(1) of Pub. L. 94–455, set out as a note under section 2012 of this title.

Reference

Citations & Metadata

Citation

26 U.S.C. § 2016

Title 26 — Internal Revenue Code

Last Updated

Apr 6, 2026

Release point: 119-73