Interest-free period applies regardless of who claims withholding refund

Plain-English summary

The IRS considered the 180-day interest-free period for refunds of withholding taxes under chapters 3 and 4. It advised that section 6611(e)(4) applies whether the refund is claimed by an account holder on an income tax return or by the withholding agent on Form 1042. The statute turns on whether the overpayment resulted from tax withheld under chapter 3 or 4, not on the claimant's identity.

Ruling snapshot

• Question: Does the section 6611(e)(4) interest-free period depend on who claims the withholding-tax refund?
• Outcome: Advice given
• Key authorities: IRC § 6611(e)(4)

Full text (IRS public release)

ID:        CCA_2016032116560104
UILC:      6611.00-00

Number: 201617005
Release Date: 4/22/2016
From:
Sent: Monday, March 21, 2016 4:56:01 PM
To:
Cc:
Bcc:
Subject: 6611(e)(4)


---------------,

You asked a question about the 180-day interest-free period contained in section
6611(e)(4). Specifically you wanted to know whether it mattered who was claiming the
refund of the chapter 3 or 4 withholding taxes – the account holder on their income tax
return or the withholding agent on their Form 1042. The statute says it applies to “any
overpayment resulting from tax deducted and withheld under chapter 3 or 4.” There is
no indication in the language of the statute that the identity of the person claiming the
refund is relevant. Therefore we have concluded that it applies regardless of who
claims the refund.

If you have any other questions or would like to discuss further, please let me know.

Thanks,
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