Title 26 — Internal Revenue CodeRelease 119-73

§7504 Fractional Parts of a Dollar

Title 26 › Subtitle Subtitle F— Procedure and Administration › Chapter 77— MISCELLANEOUS PROVISIONS › § 7504

Last updated Apr 6, 2026|Official source

Summary

The IRS can round tax amounts to the nearest dollar when issuing refunds or credits and when collecting deficiencies or underpayments. Amounts under 50 cents are dropped; amounts of 50 cents or more are rounded up to the next dollar.

Full Legal Text

Title 26, §7504

Internal Revenue Code — Source: USLM XML via OLRC

The Secretary may by regulations provide that in the allowance of any amount as a credit or refund, or in the collection of any amount as a deficiency or underpayment, of any tax imposed by this title, a fractional part of a dollar shall be disregarded, unless it amounts to 50 cents or more, in which case it shall be increased to 1 dollar.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

1976—Pub. L. 94–455 struck out “or his delegate” after “Secretary”.

Reference

Citations & Metadata

Citation

26 U.S.C. § 7504

Title 26 — Internal Revenue Code

Last Updated

Apr 6, 2026

Release point: 119-73