[Code of Federal Regulations]
[Title 26, Volume 18]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR301.6511(d)-7]

[Page 383-384]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 301_PROCEDURE AND ADMINISTRATION--Table of Contents
 
                               Limitations
 
Sec. 301.6511(d)-7  Overpayment of income tax on account of work incentive 
program credit carryback.

    (a) Special period of limitation. (1) If the claim for credit or 
refund related to an overpayment of income tax attributable to a work 
incentive program (WIN) credit carryback, provided in section 50A, then 
in lieu of the 3-year period from the time the return was filed in which 
the claim may be filed or credit or refund allowed, as prescribed in 
section 6511 (a) or (b), the period shall be whichever of the following 
2 periods expires later:
    (i) The period which ends with the expiration of the fifteenth day 
of the fortieth month (or thirty-ninth month, in the case of a 
corporation) following the end of the taxable year of the unused WIN 
credit which resulted in the carryback (or, with respect to any portion 
of a WIN credit carryback from a taxable year attributable to a net 
operating loss carryback or a capital loss carryback from a subsequent 
taxable year, the period which ends with the expiration of the fifteenth 
day of the fortieth month (or thirty-ninth month in the case of a 
corporation) following the end of such subsequent taxable year); or
    (ii) The period which ends with the expiration of the period 
prescribed in section 6511(c) within which a claim for credit or refund 
may be filed with respect to the taxable year of the unused WIN credit 
which resulted in the carryback.

[[Page 384]]

    (2) In the case of a claim for credit or refund involving a WIN 
credit carryback described in paragraph (a)(1) of this section, the 
amount of the credit or refund may exceed the portion of the tax paid 
within the period provided in section 6511 (b)(2) or (c), whichever is 
applicable, to the extent of the amount of the overpayment attributable 
to the carryback. If the claim involves an overpayment based not only on 
a WIN credit carryback described in paragraph (a)(1) of this section but 
based also on other items, the credit or refund cannot exceed the sum of 
the following:
    (i) The amount of the overpayment which is attributable to the WIN 
credit carryback, and
    (ii) The balance of such overpayment up to a limit of the portion, 
if any, of the tax paid within the period provided in section 6511 
(b)(2) or (c), or within the period provided in any other applicable 
provision of law.
    (3) If the claim involves an overpayment based not only on a WIN 
credit carryback described in paragraph (a)(1) of this section but based 
also on other items, and if the claim with respect to any items is 
barred by the expiration of any applicable period of limitation, the 
portion of the overpayment attributable to the items not so barred shall 
be determined by treating the allowance of such items as the first 
adjustment to be made in computing such overpayment. If a claim for 
credit or refund is not filed, and if credit or refund is not allowed, 
within the period prescribed in this paragraph, then credit or refund 
may be allowed or made only if claim therefor is filed, or if such 
credit or refund is allowed, within the period prescribed in section 
6511 (a), (b), or (c), whichever is applicable, subject to the 
provisions thereof limiting the amount of credit or refund in the case 
of a claim filed, or if no claim was filed, in case of credit or refund 
allowed, within such applicable period. For the limitations on the 
allowance of interest for an overpayment where credit or refund is 
subject to the provisions of this section, see section 6611(f).
    (b) Barred overpayments. If the allowance of a credit or refund of 
an overpayment of tax attributable to a WIN 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 under the provisions of section 6511(d)(7)(B) if a 
claim therefor is filed within the period provided by section 
6511(d)(7)(A) and paragraph (a) of this section for filing a claim for 
credit or refund of an overpayment attributable to a carryback. In the 
case of a claim for credit or refund of an overpayment attributable to a 
carryback, the determination of any court, including the Tax Court, in 
any proceeding in which the decision of the courts has become final, 
shall not be conclusive with respect to the WIN credit, and the effect 
of such credit, to the extent that such credit is affected by a 
carryback which was not in issue in such proceeding.

[T.D. 7301, 39 FR 977, Jan. 4, 1974; 39 FR 2758, Jan. 24, 1974]