26 U.S.C. § 6521: Mitigation of effect of…

Summary

For the self-employment tax and the employee tax under section 3101: if money was wrongly treated as self-employment income or as wages, and fixing the mistake would mean assessing one tax and refunding or crediting the other, but a law or legal rule (other than section 7122) prevents correcting the other tax, then any assessment, credit, or refund you are allowed must be reduced by the amount that would have been required for the blocked tax if it could be fixed. The terms "self-employment income" and "wages" have the meanings given in section 1402(b).

Title 26, §6521

Internal Revenue Code, Source: USLM XML via OLRC

(a)Self-employment tax and tax on wages

In the case of the tax imposed by chapter 2 (relating to tax on self-employment income) and the tax imposed by section 3101 (relating to tax on employees under the Federal Insurance Contributions Act)—

(1)If an amount is erroneously treated as self-employment income, or if an amount is erroneously treated as wages, and

(2)If the correction of the error would require an assessment of one such tax and the refund or credit of the other tax, and

(3)If at any time the correction of the error is authorized as to one such tax but is prevented as to the other tax by any law or rule of law (other than section 7122, relating to compromises),

then, if the correction authorized is made, the amount of the assessment, or the amount of the credit or refund, as the case may be, authorized as to the one tax shall be reduced by the amount of the credit or refund, or the amount of the assessment, as the case may be, which would be required with respect to such other tax for the correction of the error if such credit or refund, or such assessment, of such other tax were not prevented by any law or rule of law (other than section 7122, relating to compromises).

(b)Definitions

For purposes of subsection (a), the terms “self-employment income” and “wages” shall have the same meaning as when used in section 1402(b).

Notes & Related Subsidiaries

Editorial Notes

References in Text

The Federal Insurance Contributions Act, referred to in subsec. (a), is act Aug. 16, 1954, ch. 736, §§ 3101, 3102, 3111, 3112, 3121 to 3128, 68A Stat. 415, which is classified generally to chapter 21 (§ 3101 et seq.) of this title. For complete classification of this Act to the Code, see section 3128 of this title and Tables.

§6521 Mitigation of Effect of Limitation in Case of Related Taxes Under Different Chapters

Summary

Title 26, §6521

Notes & Related Subsidiaries

Editorial Notes

References in Text

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