PUBLIC LAW 95-30—MAY 23, 1977
91 STAT. 149
(4) STATUTES OF LIMITATION AND INTEREST RELATING TO N E W EMPLOYEE CREDIT CARRYBACK. (A) ASSESSMENT AND COLLECTION.—Section 6501 ( r e l a t i n g 26 USC 6501.
to limitations on assessment and collection) is amended by adding a t the end thereof the following new subsection: "(p)
N E W EMPLOYEE CREDIT CARRYBACKS.—In the case of a defi-
ciency attributable to the application to the taxpayer of a new employee credit carryback (including deficiencies which may be assessed pursuant to the provisions of section 6213(b)(3)), such deficiency may be assessed at any time before the expiration of the period within which a deficiency for the taxable year of the unused new employee credit which results in such carryback may be assessed, or, with respect to any portion of a new employee credit carryback from a taxable year attributable to a net operating loss carryback, an investment credit carryback, a work incentive program credit carryback, or a capital loss carryback from a subsequent taxable year, a t any time before the expiration of the period within which a deficiency for such subsequent taxable year may be assessed." (B) CREDIT OR REFUND.—Section 6511(d) ( r e l a t i n g to lim-
itations on credit or refund) is amended by adding at the end thereof the following new paragraph: " (9) SPECIAL PERIOD OF LIMITATION W I T H RESPECT TO N E W EMPLOYEE C R E D I T CARRYBACKS. " (A) PERIOD OF LIMITATIONS.—If the claim for credit or
refund relates to an overpayment attributable to a new employee credit carryback, in lieu of the 3-year period of limitation prescribed in subsection (a), the period shall be that period which ends with the expiration of the 15th day of the 40th month (or 39th month, in the case of a corporation) following the end of the taxable year of the unused new employee credit which results in such carryback (or, with respect to any portion of a new employee credit carryback from a taxable year attributable to a net operating loss carryback, an investment credit carryback, a work incentive program credit carryback, or a capital loss carryback from a subsequent taxable year, the period shall be that period which ends with the expiration of the 15th day of the 40th month, or 39th month, in the case of a corporation, following the end of such taxable year) or the period prescribed in subsection (c) in respect of such taxable year, whichever expires later. I n the case of such a claim, the amount of the credit or refund may exceed the portion of the tax p a i d within the period provided in subsection (b)(2) or (c), whichever is applicable, to the extent of the amount of the overpayment attributable to such carryback. "(B)
APPLICABLE RUT.ES.—If the allowance of
a
credit
or refund of an overpayment of tax attributable to a new employee credit carryback is otherwise prevented by the operation of any law or rule of law other than section 7122, relating to compromises, such credit or refund may be allowed or made, if claim therefor is filed within the period provided in subparagraph (A) of this paragraph. I n the case of any such claim for credit or refund, the determination by any court, including the T a x Court, in any proceeding in which
26 USC 6511.
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