[Code of Federal Regulations]
[Title 26, Volume 13]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR]

[Page 448]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
Procedure and Administration--Table of Contents
 
Sec.  1.6414-1  Credit or refund of tax withheld on nonresident aliens 
and foreign corporations.

    (a) In general. Any withholding agent who for the calendar year pays 
more than the correct amount of:
    (1) Tax required to be withheld under chapter 3 of the Code, or
    (2) Interest, addition to the tax, additional amount, or penalty 
with respect to such tax,


may file a claim for credit or refund of the overpayment in the manner 
and subject to the conditions stated in the Procedure and Administration 
Regulations (Part 301 of this chapter) under section 6402, or may claim 
credit for the overpayment as provided in paragraph (b) of this section.
    (b) Claim for credit on Form 1042. The withholding agent may claim 
credit of an overpayment described in paragraph (a) of this section for 
any calendar year by showing the amount of overpayment on the return on 
Form 1042 for such calendar year, which shall constitute a claim for 
credit under this paragraph. The claim for credit shall be evidenced by 
a statement on the return setting forth the amount determined as an 
overpayment and showing such other information as may be required by the 
instructions relating to the return. The amount so claimed as a credit 
may be applied, to the extent it has not been applied under paragraph 
(b) of Sec.  1.1461-4, by the withholding agent to reduce the amount of 
a payment or deposit of tax required by Sec.  1.1461-3 or paragraph (a) 
of Sec.  1.6302-2 for any payment period occurring in the calendar year 
following the calendar year of overwithholding. The amount so claimed as 
a credit shall also be entered on the annual return on Form 1042 for the 
calendar year following the calendar year of overwithholding and shall 
be applied as a payment on account of the tax shown on such form. If the 
withholding agent files a claim for credit or refund of the overpayment 
on Form 843 in accordance with Sec.  301.6402-2 of this chapter 
(Procedure and Administration Regulations), or a claim for refund of the 
overpayment on Form 1042 in accordance with Sec.  301.6402-3 of such 
chapter, he may not claim credit for the overpayment under this 
paragraph.
    (c) Overpayment of amounts actually withheld. No credit or refund to 
the withholding agent shall be allowed for the amount of any overpayment 
of tax which, after taking into account paragraph (b) of Sec.  1.1464-1, 
the withholding agent has actually withheld from an item of income under 
chapter 3 of the Code.

[T.D. 6922, 32 FR 8714, June 17, 1967]