26 U.S.C. § 6603

Deposits made to suspend running of interest on potential underpayments, etc.

Read at: OLRCuscode.house.gov CornellLII GovInfogovinfo.gov JustiaTitle 26 CasesGoogle Scholar

(a) Authority to make deposits other than as payment of tax

A taxpayer may make a cash deposit with the Secretary which may be used by the Secretary to pay any tax imposed under subtitle A or B or chapter 41, 42, 43, or 44 which has not been assessed at the time of the deposit. Such a deposit shall be made in such manner as the Secretary shall prescribe.

(b) No interest imposed

To the extent that such deposit is used by the Secretary to pay tax, for purposes of section 6601 (relating to interest on underpayments), the tax shall be treated as paid when the deposit is made.

Except in a case where the Secretary determines that collection of tax is in jeopardy, the Secretary shall return to the taxpayer any amount of the deposit (to the extent not used for a payment of tax) which the taxpayer requests in writing.

(d) Payment of interest(1) In general

For purposes of section 6611 (relating to interest on overpayments), except as provided in paragraph (4), a deposit which is returned to a taxpayer shall be treated as a payment of tax for any period to the extent (and only to the extent) attributable to a disputable tax for such period. Under regulations prescribed by the Secretary, rules similar to the rules of section 6611(b)(2) shall apply.

(2) Disputable tax(A) In general

For purposes of this section, the term “disputable tax” means the amount of tax specified at the time of the deposit as the taxpayer’s reasonable estimate of the maximum amount of any tax attributable to disputable items.

(B) Safe harbor based on 30-day letter

In the case of a taxpayer who has been issued a 30-day letter, the maximum amount of tax under subparagraph (A) shall not be less than the amount of the proposed deficiency specified in such letter.

(3) Other definitionsFor purposes of paragraph (2)—(A) Disputable itemThe term “disputable item” means any item of income, gain, loss, deduction, or credit if the taxpayer—(i) has a reasonable basis for its treatment of such item, and(ii) reasonably believes that the Secretary also has a reasonable basis for disallowing the taxpayer’s treatment of such item.(B) 30-day letter

The term “30-day letter” means the first letter of proposed deficiency which allows the taxpayer an opportunity for administrative review in the Internal Revenue Service Independent Office of Appeals.

(4) Rate of interest

The rate of interest under this subsection shall be the Federal short-term rate determined under section 6621(b), compounded daily.

(e) Use of deposits(1) Payment of tax

Except as otherwise provided by the taxpayer, deposits shall be treated as used for the payment of tax in the order deposited.

(2) Returns of deposits

Deposits shall be treated as returned to the taxpayer on a last-in, first-out basis.

(Added Pub. L. 108–357, title VIII, § 842(a), Oct. 22, 2004, 118 Stat. 1598; amended Pub. L. 116–25, title I, § 1001(b)(1)(D), July 1, 2019, 133 Stat. 985.)Editorial NotesAmendments

2019—Subsec. (d)(3)(B). Pub. L. 116–25 substituted “Internal Revenue Service Independent Office of Appeals” for “Internal Revenue Service Office of Appeals”.

Statutory Notes and Related SubsidiariesEffective Date

Pub. L. 108–357, title VIII, § 842(c), Oct. 22, 2004, 118 Stat. 1599, provided that:“(1)In general.—The amendments made by this section [enacting this section] shall apply to deposits made after the date of the enactment of this Act [Oct. 22, 2004].“(2)Coordination with deposits made under revenue procedure 84–58.—In the case of an amount held by the Secretary of the Treasury or his delegate on the date of the enactment of this Act as a deposit in the nature of a cash bond deposit pursuant to Revenue Procedure 84–58, the date that the taxpayer identifies such amount as a deposit made pursuant to section 6603 of the Internal Revenue Code (as added by this Act) shall be treated as the date such amount is deposited for purposes of such section 6603.”

Notes of Decisions

Cited in 13 cases (4 in the last 5 years), 1994–2026 · leading case: Ford Motor Co. v. United States, 768 F.3d 580 (6th Cir. 2014).

Sort: Relevance Newest Treatment

Ford Motor Co. v. United States, 768 F.3d 580 (6th Cir. 2014). · cites it 4× “3 This revenue procedure has been abrogated in part by 26 U.S.C. § 6603 . No. 10-1934 Ford Motor Co.”

Principal Life Ins. v. United States, 95 Fed. Cl. 786 (Fed. Cl. 2010). · cites it 4× “That same day, plaintiffs attorney delivered a letter to the IRS designating the remittance as “a deposit in the nature of a cash bond” pursuant to section 6603 of the Code ( 26 U.S.C. § 6603 ) and section 4.01 of Revenue Procedure 84-58, 1984- 2 C.”

Bedrosian v. Comm'r, 358 F. App'x 868 (9th Cir. 2009). “See 26 U.S.C. § 6603 (a); Rev. Proc.2005-18 § 4.”

Faisal Ahmed v. Comm'r of IRS, 64 F.4th 477 (3rd Cir. 2023). · cites it 2× “It deemed him ineligible for a deposit under 26 U.S.C. § 6603 and treated his remittance as a payment of tax.”

Ford Motor Co. v. United States, 508 F. App'x 506 (6th Cir. 2012). “In 2004, Congress enacted 26 U.S.C. § 6603 , which provides that, contrary to previous practice, taxpayers who deposit funds with the IRS and then request the return of those funds are entitled to interest in certain circumstances.”

Dillon Trust Co. LLC v. United States (Fed. Cir. 2026). · cites it 5× “7 million deposit—not a pay- ment—under 26 U.S.C. § 6603 in case the IRS asserted transferee liability.”

Albert G. Hill, III (Tax Ct. 2021). · cites it 4× “” They -6- [*6] noted that this “remittance was submitted with a letter which designated the full $10,263,750 as a deposit under 26 U.S.C. § 6603 .” They demanded immediate return of the deposit “as authorized by 26 U.”

Peretz v. United States (Fed. Cl. 2020). · cites it 3× “In Lua, however, the Federal Circuit recognized that the “circumstances” test was superseded by the enactment of 26 U.S.C. § 6603 as part of the American Jobs Creation Act of 2004, Pub.”

Collins v. United States (In Re Collins), 223 B.R. 372 (Bankr. M.D. Fla. 1997). “Accordingly, the tolling provision of 26 U.S.C. § 6603 (h) is activated in the bankruptcy context by § 108(c) of the Bankruptcy Code.”

Albert G. Hill, III v. Comm'r of Internal Revenue (11th Cir. 2023). “On June 11, 2014, Hill made a formal request to the IRS for the “immediate return of his deposit as authorized by 26 U.S.C. § 6603 (c).” Section 6603(c) provides that, “[e]xcept in a case where the Secretary determines that collection of tax is in jeopardy, the Secretary shall…”

Chenette v. United States (N.D. Cal. 2019). “8 9 26 U.S.C. § 6603 . 10 The IRS has promulgated Revenue Procedure 2005-18, which sets forth certain rules and 11 procedures which govern whether a taxpayer’s remittance will be considered a deposit or a 12 payment.”

Show all 13 citing cases →

Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.