PRIA, Government Policy, Made Personal

Summary

A Tax Court decision becomes final when no one files a proper appeal in time or when higher courts finish reviewing it and no further review is taken. If no notice of appeal is filed by the deadline, the decision is final. If a Court of Appeals affirms or dismisses the case, the decision is final when the time to ask the Supreme Court for review (petition for certiorari) runs out, or when the Supreme Court denies review, or 30 days after the Supreme Court issues its final order (mandate) directing affirmance or dismissal. If a higher court orders the Tax Court to change or reverse its decision, the Tax Court’s new decision becomes final 30 days after it is entered unless the taxpayer or the Secretary asks within those 30 days to have it corrected to match the higher court’s order. If the case is sent back for rehearing, the final date follows the same rules. Some special cases work differently. Decisions in cases under sections 7436(c) or 7463 become final 90 days after they are entered. If, within 1 year after a decision becomes final, a taxpayer who paid the assessed tax and interest asks the Tax Court to redetermine interest and the Tax Court earlier found an overpayment, the Court can reopen the case only to decide interest overpayment or underpayment; that decision is treated and reviewed like an overpayment of tax. For estates with payment time extended under section 6166, the Tax Court may reopen only to adjust deductions for certain interest treated as estate administration expenses under section 2053; any order on that motion is reviewable only for those issues. Mandate: the final order sent by a higher court.

Title 26, §7481

Internal Revenue Code, Source: USLM XML via OLRC

(a)Reviewable decisions

Except as provided in subsections (b), (c), and (d), the decision of the Tax Court shall become final—

(1)Timely notice of appeal not filed

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)Decision affirmed or appeal dismissed

(A)Petition for certiorari not filed on time

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)Petition for certiorari denied

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)After mandate of Supreme Court

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)Decision modified or reversed

(A)Upon mandate of Supreme Court

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)Upon mandate of the Court of Appeals

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)Rehearing

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,

then the decision of the Tax Court rendered upon such rehearing shall become final in the same manner as though no prior decision of the Tax Court has been rendered.

(5)Definition of “mandate”

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)Nonreviewable decisions

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)Jurisdiction over interest determinations

(1)In general

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)Cases to which this subsection applies

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)Special rules

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)Decisions relating to estate tax extended under section 6166

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,

then, upon a motion by the petitioner in such case in which such time for payment of tax has been extended under section 6166, the Tax Court may reopen the case solely to modify the Court’s decision to reflect such estate’s entitlement to a deduction for such administration expenses under section 2053 and may hold further trial solely with respect to the claim for such deduction if, within the discretion of the Tax Court, such a hearing is deemed necessary. An order of the Tax Court disposing of a motion under this subsection shall be reviewable in the same manner as a decision of the Tax Court, but only with respect to the matters determined in such order.

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.

§7481 Date When Tax Court Decision Becomes Final

Summary

Title 26, §7481

Notes & Related Subsidiaries

Editorial Notes

Amendments

Statutory Notes and Related Subsidiaries

Effective Date

Effective Date

Effective Date

Citations & Metadata