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reason such as a mistake made by the Commissioner. O’Bryant v.
United States, supra at 342.
The distinction between rebate and nonrebate refunds is
pertinent to what options the Commissioner has available in
recovering a refund. Clark v. United States, supra at 88. The
Commissioner may recover a rebate refund under the deficiency
procedures set forth in sections 6211 through 6216. O’Bryant v.
United States, supra at 342. If the deficiency procedure is
employed, the statutory period of limitations of section 6501(a)
and (h)3 is applicable.
The Commissioner, however, may recover a nonrebate refund
only under section 74054 or under administrative collection
procedures if those are available. Clark v. United States, supra
at 88. Section 7405(b) authorizes the United States to recover
erroneous nonrebate refunds pursuant to a civil suit, but such a
3Sec. 6501(h) provides in pertinent part:
In the case of a deficiency attributable to the
application to the taxpayer of a net operating loss
carryback * * *, such deficiency may be assessed at any
time before the expiration of the period within which a
deficiency for the taxable year of the net operating
loss * * * which results in such carryback may be
assessed.
4Sec. 7405(b) provides as follows:
Refunds Otherwise Erroneous.--Any portion of a tax
imposed by this title which has been erroneously
refunded (if such refund would not be considered as
erroneous under section 6514) may be recovered by civil
action brought in the name of the United States.
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Last modified: May 25, 2011