(a) Adjustments of overwithheld tax— (1) In general. Except for partnerships or nominees required to withhold under section 1446, a withholding agent that has overwithheld under chapter 3 of the Internal Revenue Code, and made a de-posit of the tax as provided in § 1.6302– 2(a) may adjust the overwithheld amount either pursuant to the reim-bursement procedure described in para-graph (a)(2) of this section or pursuant to the set-off procedure described in paragraph (a)(3) of this section. Ref-erences in the previous sentence ex-cepting from this section certain part-nerships withholding under section 1446 shall apply to partnership taxable years beginning after May 18, 2005, or such earlier time as the regulations under §§ 1.1446–1 through 1.1446–5 apply by reason of an election under § 1.1446– 7. Adjustments under this paragraph (a)may only be made within the time prescribed under paragraph (a) (2) or (3) of this section. After such time, a re-fund of the amount overwithheld can only be claimed by the beneficial owner with the Internal Revenue Serv-ice (IRS) pursuant to the procedures described in chapter 65 of the Code. For purposes of this section, the term over-withholding means any amount actu-ally withheld (determined before appli-cation of the adjustment procedures under this section) from an item of in-come pursuant to chapter 3 of the Code or the regulations thereunder in excess of the actual tax liability due, regard-less of whether such overwithholding was in error or appeared correct at the time it occurred.
CFR 26-1.1461-2-2014 history
2014CFR 26-1.1461-2-2014 Internal Revenue. Part1:Income taxes(continued). Section1.1461-2:Adjustments for over withholding or under withholding of tax.