Page:United States Statutes at Large Volume 92 Part 3.djvu/248

 92 STAT. 2880

PUBLIC LAW 95-600—NOV. 6, 1978 (3) by inserting "any proceeding before a Federal grand jury or" before "preparation for any proceeding" in paragraph (2), (4) by striking out "in a matter involving tax administration" after "or any Federal or State court". (b) APPLICATION TO TAXPAYER.—

26 USC 6103.

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(1) Section 6103(h)(2) is amended by striking out subparagraph (A) and inserting in lieu thereof the following: "(A) the taxpayer is or may be a party to the proceeding, or the proceeding arose out of, or in connection with, determining the taxpayer's civil or criminal liability, or the collection of such civil liability in respect of any tax imposed under this title;". (2) Section 6103(h)(4) is amended by striking out subparagraph (A) and inserting in lieu thereof the following: "(A) the taxpayer is a party to the proceeding, or the proceeding arose out of, or in connection with, determining the taxpayer's civil or criminal liability, or the collection of such civil liability, in respect of any tax imposed under this title;". SEC. 504. REFUND ADJUSTMENTS FOR AMOUNTS HELD UNDER CLAIM OF RIGHT.

26 USC 6411.

(a) IN GENERAL.—Section 6411 (relating to application for adjustment) is amended by adding at the end thereof the following new subsection: "(d) TENTATIVE REFUND OF TAX UNDER CLAIM OF RIGHT ADJUSTMENT.—

26 USC 1341.

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"(1) APPLICATION.—A taxpayer may file an application for a tentative refund of any amount treated as an overpayment of tax for the taxable year under section 1341(b)(1). Such application shall be in such manner and form as the Secretary may prescribe by regulation and shall— "(A) be verified in the same manner as an application under subsection (a), "(B) be filed during the period beginning on the date of filing the return for such taxable year and ending on the date 12 months from the last day of such taxable year, and "(C) set forth in such detail and with such supporting data such regulations prescribe— "(i) the amount of the tax for such taxable year computed without regard to the deduction described in section 1341(a)(2), "(ii) the amount of the tax for all prior taxable years for which the decrease in tax provided in section 1341(a)(5)(B) was computed, "(iii) the amount determined under section 1341(a)(5)(B), "(iv) the amount of the overpayment determined under section 1341(b)(1); and "(v) such other information as the Secretary may require. "(2) ALLOWANCE OF ADJUSTMENTS.—Within a period of 90 days from the date on which an application is filed under paragraph (1), or from the last day of the month in which falls the last date prescribed by law (including any extension of time granted the taxpayer) for filing the return for taxable year in which the overpayment occurs, whichever is later, the Secretary shall— "(A) review the application.

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