(ii) $50 or more is payable under subsection (e), or (iii) $200 or more is payable under subsection (f), to any person with respect to fuel used during any of the first three quarters of his taxable year, a claim may be filed under this section by the purchaser with respect to fuel used during such quarter. (B) Special rule.-If the requirements of clause (ii) or clause (iii) of subparagraph (A) are met by any person for any quarter but the requirements of subparagraph (A)(i) are not met by such person for such quarter, such person may file a claim under subparagraph (A) for such quarter only with respect to amounts referred to in the clause (or clauses) of subparagraph (A) the requirements of which are met by such person for such quarter. (C) Time for filing claim.-No claim filed under this paragraph shall be allowed unless filed on or before the last day of the first quarter following the quarter for which the claim is filed. (h) Applicable laws.— (1) In general.—All provisions of law, including penalties, applicable in respect of the taxes imposed by section 4041 shall, insofar as applicable and not inconsistent with this section, apply in respect of the payments provided for in this section to the same extent as if such payments constituted refunds of overpayments of the tax so imposed. (2) Examination of books and witnesses.-For the purpose of ascertaining the correctness of any claim made under this section, or the correctness of any payment made in respect of any such claim, the Secretary shall have the authority granted by paragraphs (1), (2), and (3) of section 7602 (relating to examination of books and witnesses) as if the claimant were the person liable for tax. (i) Income tax credit in lieu of payment.— (1) Persons not subject to income tax.-Payment shall be made under this section only to (A) the United States or an agency or instrumentality thereof, a State, a political subdivision of a State, or any agency or instrumentality of one or more States or political subdivisions, or (B) an organization exempt from tax under section 501(a) (other than an organization required to make a return of the tax imposed under subtitle A for its taxable year). (2) Exception.-Paragraph (1) shall not apply to a payment of a claim filed under subsection (g)(2). (3) Allowance of credit against income tax. For allowances of credit against the income tax imposed by subtitle A for fuel used or resold by the purchaser, see section 39. (j) Regulations.-The Secretary may by regulations prescribe the conditions, not inconsistent with the provisions of this section, under which payments may be made under this section. (k) Termination of subsections (a), (b), (c), and (d).-Subsections (a), (b), (c), and (d) shall only apply with respect to fuels purchased before October 1, 1988. (1) Cross references. (1) For civil penalty for excessive claims under this section, see section 6675. (2) For fraud penalties, etc., see chapter 75 (section 7201 and following, relating to crimes, other offenses, and forfeitures). (3) For treatment of an Indian tribal government as a State (and a subdivision of an Indian tribal government as a political subdivision of a State), see section 7871. (Added Pub. L. 91-258, Title II, § 207(a), May 21, 1970, 84 Stat. 246, and amended Pub. L. 94-455, Title XIX, § 1906(a)(31)(A), (b)(13)(A), Oct. 4, 1976, 90 Stat. 1829, 1834; Pub. L. 94-530, § 1(b), (c)(2)–(5), Oct. 17, 1976, 90 Stat. 2487, 2488; Pub. L. 95-458, § 3(b), Oct. 14, 1978, 92 Stat. 1257; Pub. L. 95-599, Title V, § 505(a), (b), (c)(2)-(4), Nov. 6, 1978, 92 Stat. 2758-2760; Pub. L. 95-600, Title VII, § 703(Ŋ)(3), Nov. 6, 1978, 92 Stat. 2942; Pub. L. 95-618, Title II, § 233(a)(2), Nov. 9, 1978, 92 Stat. 3190; Pub. L. 96-223, Title II, § 232(d)(1), (2), (4)(B)–(D), Apr. 2, 1980, 94 Stat. 277, 278; Pub. L. 96-541, § 4, Dec. 17, 1980, 94 Stat. 3205; Pub. L. 97-248, Title II, § 279(b)(2), Sept. 3, 1982, 96 Stat. 563; Pub. L. 97-424, Title V, §§ 511(d)(4), (e)(1)–(3), (g)(2)(B)–(D), 516(b)(5), Jan. 6, 1983, 96 Stat. 2171, 2172, 2173; Pub. L. 97-473, Title II, § 202(b)(13), Jan. 14, 1983, 96 Stat. 2610.) Sec. 6504. Cross references. For limitation period in case of— (1) Adjustments to accrued foreign taxes, see section 905(c). (2) Change of treatment with respect to itemized deductions and zero bracket amount where taxpayer and his spouse make separate returns, see section 63(g)(5). (3) Involuntary conversion of property, see section 1033(a)(2)(C) and (D). (4) Gain upon sale or exchange of principal residence, see section 1034(j). (5) Application by fiduciary for discharge from personal liability for estate tax, see section 2204. (6) Insolvent banks and trust companies, see section 7507. (8) Claims against transferees and fiduciaries, see chapter 71. (9) Assessments to recover excessive amounts paid under section 6420 (relating to gasoline used on farms), 6421 (relating to gasoline used for certain nonhighway purposes or by local transit systems), or 6427 (relating to fuels not used for taxable purposes) and assessments of civil penalties under section 6675 for excessive claims under section 6420, 6421, or 6427, see section 6206. (10) Assessment and collection of interest, see section 6601(g). (11) Assessment of civil penalties under section 6694 or 6695, see section 6696(d)(1). (12) Assessments of tax attributable to partnership items, see section 6229. (Aug. 16, 1954, c. 736, 68A Stat. 807; Apr. 2, 1956, c. 160, § 4(d), 70 Stat. 91; June 29, 1956, c. 462, Title II, § 208(e)(5), 70 Stat. 397; Sept. 2, 1958, Pub. L. 85-866, Title I, § 84(b), 72 Stat. 1664; Feb. 26, 1964, Pub. L. 88-272, Title I, § 112(d)(2), 78 Stat. 24; Dec. 30, 1969, Pub. L. 91-172, Title II, § 213(c)(3), 83 Stat. 572; Dec. 31, 1970, Pub. L. 91-614, Title I, § 101(d)(2), 84 Stat. 1837; Jan. 3, 1975, Pub. L. 93–625, § 7(d)(4), 88 Stat. 2115; Oct. 4, 1976, Pub. L. 94-455, Title XII, § 1203(h)(2), Title XIX, §§ 1901(b)(31)(D), (36)(C), (37)(D), (39)(B), 1906(a)(32), 90 Stat. 1694, 1800, 1802, 1803, 1829; May 23, 1977, Pub. L. 95-30, Title I, § 101(d)(16), 91 Stat. 134; Nov. 6, 1978, Pub. L. 95-600, Title IV, § 405(c)(6), Title VII, § 703(j)(10), 92 Stat. 2871, 2942; Nov. 9, 1978, Pub. L. 95-618, Title II, § 233(b)(2)(D), 92 Stat. 3191; Sept. 3, 1982, Pub. L. 97-248, Title IV, § 402(c)(6), 96 Stat. 667; Jan. 6, 1983, Pub. L. 97-424, Title V, § 515(b)(10), 96 Stat. 2182.) Sec. 6511. Limitations on credit or refund. (a) Period of limitation on filing claim Claim for credit or refund of an overpayment of any tax imposed by this title in respect of which tax the taxpayer is required to file a return shall be filed by the taxpayer within 3 years from the time the return was filed or 2 years from the time the tax was paid, whichever of such periods expires the later, or if no return was filed by the taxpayer, within 2 years from the time the tax was paid. Claim for credit or refund of an overpayment of any tax imposed by this title which is required to be paid by means of a stamp shall be filed by the taxpayer within 3 years from the time the tax was paid. (b) Limitation on allowance of credits and refunds (1) FILING OF CLAIM WITHIN PRESCRIBED PERIOD.—No credit or refund shall be allowed or made after the expiration of the period of limitation prescribed in subsection (a) for the filing of a claim for credit or refund, unless a claim for credit or refund is filed by the taxpayer within such period. (2) LIMIT ON AMOUNT OF CREDIT OR REFUND.— (A) Limit where claim filed within 3-year period.—If the claim was filed by the taxpayer during the 3-year period prescribed in subsection (a), the amount of the credit or refund shall not exceed the portion of the tax paid within the period, immediately preceding the filing of the claim, equal to 3 years plus the period of any extension of time for filing the return. If the tax was required to be paid by means of a stamp, the amount of the credit or refund shall not exceed the portion of the tax paid within the 3 years immediately preceding the filing of the claim. (B) Limit where claim not filed within 3-year period.—If the claim was not filed within such 3-year period, the amount of the credit or refund shall not exceed the portion of the tax paid during the 2 years immediately preceding the filing of the claim. (C) Limit if no claim filed.—If no claim was filed, the credit or refund shall not exceed the amount which would be allowable under subparagraph (A) or (B), as the case may be, if claim was filed on the date the credit or refund is allowed. (c) Special rules applicable in case of extension of time by agreement If an agreement under the provisions of section 6501(c)(4) extending the period for assessment of a tax imposed by this title is made within the period prescribed in subsection (a) for the filing of a claim for credit or refund (1) TIME FOR FILING CLAIM.-The period for filing claim for credit or refund or for making credit or refund if no claim is filed, provided in subsections (a) and (b)(1), shall not expire prior to 6 months after the expiration of the period within which an assessment may be made pursuant to the agreement or any extension thereof under section 6501(c)(4). (2) LIMIT ON AMOUNT.—If a claim is filed, or a credit or refund is allowed when no claim was filed, after the execution of the agreement and within 6 months after the expiration of the period within which an assessment may be made pursuant to the agreement or any extension thereof, the amount of the credit or refund shall not exceed the portion of the tax paid after the execution of the agreement and before the filing of the claim or the making of the credit or refund, as the case may be, plus the portion of the tax paid within the period which would be applicable under subsection (b)(2) if a claim had been filed on the date the agreement was executed. (3) CLAIMS NOT SUBJECT TO SPECIAL RULE.-This subsection shall not apply in the case of a claim filed, or credit or refund allowed if no claim is filed, either— (A) prior to the execution of the agreement or (B) more than 6 months after the expiration of the period within which an assessment may be made pursuant to the agreement or any extension thereof. (d) Special rules applicable to income taxes (1) SEVEN-YEAR PERIOD OF LIMITATION WITH RESPECT TO BAD DEBTS AND WORTHLESS SECURITIES.-If the claim for credit or refund relates to an overpayment of tax imposed by subtitle A on account of— (A) The deductibility by the taxpayer, under section 166 or section 832(c), of a debt as a debt which became worthless, or, under section 165(g), of a loss from worthlessness of a security, or (B) The effect that the deductibility of a debt or loss described in subparagraph (A) has on the application to the taxpayer of a carryover, in lieu of the 3-year period of limitation prescribed in subsection (a), the period shall be 7 years from the date prescribed by law for filing the return for the year with respect to which the claim is made. If the claim for credit or refund relates to an overpayment on account of the effect that the deductibility of such a debt or loss has on the application to the taxpayer of a carryback, the period shall be either 7 years from the date prescribed by law for filing the return for the year of the net operating loss which results in such carryback or the period prescribed in paragraph (2) of this subsection, whichever expires the later. In the case of a claim described in this paragraph the amount of the credit or refund may exceed the portion of the tax paid within the period prescribed in subsection (b)(2) or (c), whichever is applicable, to the extent of the amount of the overpayment attributable to the deductibility of items described in this paragraph. (2) Special period of limitation with respect to net operating loss or capital loss carrybacks. (A) Period of limitation.-If the claim for credit or refund relates to an overpayment attributable to a net operating loss carryback or a capital loss carryback, in lieu of the 3-year period of limitation prescribed in subsection (a), the period shall be that period which ends 3 years after the time prescribed by law for filing the return (including extensions thereof) for the taxable year of the net operating loss or net capital loss which results in such carryback, or the period prescribed in subsection (c) in respect of such taxable year, whichever expires later; except that with respect to an overpayment attributable to the creation of, or an increase in a net operating loss carryback as a result of the elimination of excessive profits by a renegotiation (as defined in section 1481(a)(1)(A)), the |