Ezel / IRS Rulings / 201116025

CCA 201116025: No interest is allowed on an overpayment used as a credit elect

Number
201116025
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Authority to Make Credits or Refunds
Topics
Procedure, penalties, and administration
Code sections
§ 6402
Ruling dated
March 25, 2011
Publicly released
April 22, 2011
Source
View Official PDF

Apply this to your situation

This page covers legal advice the IRS Office of Chief Counsel wrote for IRS staff, issued in 2011, which can't be cited as precedent. Ask about your situation and see what the current Code and IRS guidance say, with citations.

Currency note: this determination was released in 2011
Statutory amendments, regulation changes, court decisions, or later IRS guidance may have changed the analysis since then. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, threshold, or position mentioned here.
Not precedent. Under 26 U.S.C. § 6110(k)(3), this written determination may not be used or cited as precedent. It is advice from the IRS Office of Chief Counsel to IRS personnel on the facts they presented, and identifying details were redacted by the IRS before release. The official IRS release (linked on this page as a PDF) is the authoritative source.
About this page: The plain-English summary and ruling snapshot below were written by Ezel based on the official IRS release. The full text is the IRS's own document.
View official IRS release (PDF)

Plain-English summary

Chief Counsel Advice addressed whether a taxpayer is entitled to interest on an overpayment applied as a credit elect. The IRS advised that no interest is allowed on the portion of an overpayment credited to the taxpayer’s estimated payment for the succeeding taxable year. The memorandum relies on Treas. Reg. § 301.6402-3(a)(5) and explains that the election is made on the taxpayer’s return or amended return.

Ruling snapshot

  • Question: Is a taxpayer entitled to interest on an overpayment applied as a credit elect?
  • Outcome: Advice given
  • Key authorities: IRC § 6402; Treas. Reg. § 301.6402-3(a)(5)

Full text (IRS public release)

ID: CCA_2011032511414442 Number: 201116025
Release Date: 4/22/2011
Office: ----------------------------
UILC: 6402.00-00

From: -------------------------
Sent: Friday, March 25, 2011 11:41:47 AM
To: ------------------
Cc:
Subject: credit elect

A taxpayer is not entitled to interest on a credit elect. Pursuant to Treas. Reg.
§ 301.6402-3(a)(5), the taxpayer may elect to apply an overpayment to its estimated payment of tax for the succeeding taxable year by so indicating on its return or amended return. If the taxpayer makes this election, no interest is allowed on the portion of the overpayment that is credited.

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