[Code of Federal Regulations]
[Title 26, Volume 15]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR31.6413(a)-2]

[Page 395-396]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 31_EMPLOYMENT TAXES AND COLLECTION OF INCOME TAX AT SOURCE--Table of Contents
 
Subpart G_Administrative Provisions of Special Application to Employment 
Taxes (Selected Provisions of Subtitle F, Internal Revenue Code of 1954)
 
Sec. 31.6413(a)-2  Adjustment of overpayments.

    (a) Taxes under the Federal Insurance Contributions Act or the 
Railroad Retirement Tax Act--(1) Employee tax. After an employer repays 
or reimburses an employee in the amount of an overcollection, as 
provided in paragraph (b)(1) of Sec. 31.6413(a)-1, the employer may 
claim credit for such amount in the manner, and subject to the 
conditions, stated in Sec. 31.6402(a)-2. Such credit shall constitute 
an adjustment, without interest, if the amount thereof is entered on a 
return for a period ending on or before the last day of the return 
period following the return period in which the error was ascertained. 
No credit or adjustment in respect of an overpayment shall be entered on 
a return after the filing of a claim for refund of such overpayment.
    (2) Employer tax. If an employer pays more than the correct amount 
of employer tax under section 3111 or section 3221, or a corresponding 
provision of prior law, the employer may claim credit for the amount of 
the overpayment in the manner, and subject to the conditions, stated in 
Sec. 31.6402(a)-2. Such credit shall constitute an adjustment, without 
interest, if the amount thereof is entered on the same return on which 
the employer adjusts, pursuant to paragraph (a)(1) of this section, a 
corresponding overpayment of employee tax.
    (b) Income tax withheld from wages. If, pursuant to paragraph (b)(2) 
of Sec. 31.6413(a)-1, an employer repays or reimburses an employee in 
the amount of an overcollection of tax under section 3402, the employer 
may adjust the overcollection, without interest, by entering the amount 
thereof as a deduction on a return of tax under section 3402,

[[Page 396]]

filed by the employer for any return period in the calendar year in 
which the employer repays or reimburses the employee. The return on 
which the adjustment is entered as a deduction shall have attached 
thereto a statement explaining the adjustment, designating the return 
period in which the error occurred, and setting forth such other 
information as is required by the regulations in this subpart and by the 
instructions relating to the return.