Page:United States Statutes at Large Volume 82.djvu/305

 82 STAT. ]

PUBLIC LAW 90-364-JUNE 28, 1968

263

ment by it of estimated income tax for such taxable year. An application under this subsection shall not constitute a claim for credit or refund. "(2) FORM OF APPLICATION, ETC.—An application under this subsection shall be verified in the maimer prescribed by section 6065 in the case of a return of the taxpayer, and shall be filed in the manner and form required by regulations prescribed by the Secretary or his delegate. The application shall set forth— " (A) the estimated income tax paid by the corporation during the taxable year, " (B) the amount which, at the time of filing the application, the corporation estimates as its income tax liability for the taxable year, " (C) the amount of the adjustment, and " (D) such other information for purposes of carrying out the provisions of this section as may be required by such regulations. "(b)

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ALLOWANCE OF ADJUSTMENT.— "(1) LIMITED EXAMINATION OF APPLICATION.—Within

a period of 45 days from the date on which an application for an adjustment is filed under subsection (a), the Secretary or his delegate shall make, to the extent he deems practicable in such period, a limited examination of the application to discover omissions and errors therein, and shall determine the amount of the adjustment upon the basis of the application and the examination; except that the Secretary or his delegate may disallow, without further action, any application which he finds contains material omissions or errors which he deems cannot be corrected within such 45 days. "(2)

ADJUSTMENT CREDITED OR REFUNDED.—The Secretary

or

his delegate, within the 45-day period referred to in paragraph (1), may credit the amount of the adjustment against any liability in respect of an internal revenue tax on the part of the corporation and shall refund the remainder to the corporation. "(3) LIMITATION.—No application under this section shall be allowed unless the amount of the adjustment equals or exceeds (A) 10 percent of the amount estimated by the corporation on its application as its income tax liability for the taxable year, and (B) $500. "(4) EFFECT OF ADJUSTMENT.—For purposes of this title (other than section 6655), any adjustment under this section shall be treated as a reduction, in the estimated income tax paid, made on the day the credit is allowed or the refund is paid. "(c) DEFINITIONS.—For purposes of this section and section 6655(g) (relating to excessive adjustment)— Post, p. 204. "(1) The term 'income tax liability' means the excess of— . "income tax " (A) the tax imposed by section 11 or 1201(a), or sub- ^yg'stai. 25. chapter L of chapter 1, whichever is applicable, over esA Stat. 320. " (B) the credits against tax provided by part IV of sub- 343^ ^^*^ ®°^' chapter A of chapter 1. 26 USC 31-48. "(2) The amount of an adjustment under this section is equal to the excess of— " (A) the estimated income tax paid by the corporation during the taxable year, over " (B) the amount which, at the time of filing the application, the corporation estimates as its income tax liability for the taxable year. " (d) CONSOLIDATED RETURNS.—If the corporation seeking an adjustment under this section paid its estimated income tax on a consolidated basis or expects to make a consolidated return for the taxable

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