Chapter 276. To amend the Revenue Act of 1921 in respect to credits and refunds
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CHAP. 276.— An Act To amend the Revenue Act of 1921 in respect to credits and refunds. March 4, 1923.[[H. R. 13775](/us/bill/67/hr/13775).][[Public, No. 527](/us/67/pl/527).] *Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled*,Income tax.*Ante*, p. 268, amended. That section 252 of the Revenue Act of 1921 is amended to read as follows: " “Sec. 252. Credits allowed tor excess payments under this or prior Acts.Vol. 36, p. 112.
(a)That if, upon examination of any return of income made pursuant to this Act, the Act of August 5, 1909, entitled ‘An Act to provide revenue, equalize duties, and encourage the1505 industries of the United States, and for other purposes,’ the Act ofVol. 36, p. 166. October 3, 1913, entitled ‘An Act to reduce tariff duties and toVol. 39, pp. 756, 1004. provide revenue for the Government, and for other purposes,’ the Revenue Act of 1916, as amended, the Revenue Act of 1917, or theVol. 40, pp. 300, 1057. Revenue Act of 1918, it appears that an amount of income, war-profits or excess-profits tax has been paid in excess of that properly due, then, notwithstanding the provisions of section 3228 of the[R. S., sec. 3228, p. 630](/us/rs/s3228/p630).*Post*, p. 1549. Revised Statutes, the amount of the excess shall be credited against any income, war-profits or excess-profits taxes, or installment thereof, then due from the taxpayer under any other return, and any balanceRefund of balance.*Provisos*.Time limit for filing claim. of such excess shall be immediately refunded to the taxpayer: *Provided*, That no such credit or refund shall be allowed or made after five years from the date when the return was due, unless before the expiration of such five years a claim therefor is filed by the tax-payer, or unless before the expiration of two years from the time the tax was paid a claim therefor is filed by the taxpayer:Extended If waiver of right to have determined within five years, has been filed. *Provided further*, That if the taxpayer has, within five years from the time the return for the taxable year 1917 was due, filed a waiver of his right to have the taxes due for such taxable year determined and assessed within five years after the return was filed, such credit or refund shall be allowed or made if claim therefor is filed either within six years from the time the return for such taxable year 1917 was due or within two years from the time the tax was paid: *Provided further*, That if upon examination of any return of incomeAllowance without filing claim if invested capital decreased due to inadequate deductions. made pursuant to the Revenue Act of 1917, the Revenue Act of 1918, or this Act, the invested capital of a taxpayer is decreased by the commissioner, and such decrease is due to the fact that the taxpayer failed to take adequate deductions in previous years, with the result that an amount of income tax in excess of that properly due was paid in any previous year or years, then, notwithstanding any other provision of law and regardless of the expiration of such five-year period, the amount of such excess shall, without the filing of any claim therefor, be credited or refunded as provided in this section: *And provided further*, That nothing in this section shall bePrior claims filed under former Acts not barred. construed to bar from allowance claims for refund filed prior to the passage of the Revenue Act of 1918 under subdivision
(a)ofVol. 39, p. 772. section 14 of the Revenue Act of 1916, or filed prior to the passageVol. 40, p. 1085. of this Act under section 252 of the Revenue Act of 1918. “(b) Where a tax has been paid under the provisions of sectionTax paid at source.*Ante*, pp. 248, 258, amended.Refund to withholding agent. 221 or 237 in excess of that properly due, any refund or credit made under the provisions of this section or section 3228 of the Revised Statutes shall be made to the withholding agent unless the amount of such tax was actually withheld by the withholding agent.” Sec. 2. Section 3226 of the Revised Statutes, as amended byClaims for erroneously collected taxes. Time limit for suit after part disallowance.*Ante*, p. 315, amended. section 1318 of the Revenue Act of 1921, is amended by inserting before the period at the end thereof a comma and the following: “unless such suit or proceeding is begun within two years after the disallowance of the part of such claim to which such suit or proceeding relates. The Commissioner shall within 90 days after any such disallowance notify the taxpayer thereof by mail”. " Approved, March 4, 1923.