Internal Revenue Code:Sec. 7463. Disputes involving $50,000 or less
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Location in Internal Revenue Code
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 76 - JUDICIAL PROCEEDINGS
Subchapter C - The Tax Court
PART II - PROCEDURE
Statute
Sec. 7463. Disputes involving $50,000 or less
(a) In general
In the case of any petition filed with the Tax Court for a
redetermination of a deficiency where neither the amount of the
deficiency placed in dispute, nor the amount of any claimed
overpayment, exceeds -
(1) $50,000 for any one taxable year, in the case of the taxes
imposed by subtitle A,
(2) $50,000, in the case of the tax imposed by chapter 11,
(3) $50,000 for any one calendar year, in the case of the tax
imposed by chapter 12, or
(4) $50,000 for any 1 taxable period (or, if there is no
taxable period, taxable event) in the case of any tax imposed by
subtitle D which is described in section 6212(a) (relating to a
notice of deficiency),
at the option of the taxpayer concurred in by the Tax Court or a
division thereof before the hearing of the case, proceedings in the
case shall be conducted under this section. Notwithstanding the
provisions of section 7453, such proceedings shall be conducted in
accordance with such rules of evidence, practice, and procedure as
the Tax Court may prescribe. A decision, together with a brief
summary of the reasons therefor, in any such case shall satisfy the
requirements of sections 7459(b) and 7460.
(b) Finality of decisions
A decision entered in any case in which the proceedings are
conducted under this section shall not be reviewed in any other
court and shall not be treated as a precedent for any other case.
(c) Limitation of jurisdiction
In any case in which the proceedings are conducted under this
section, notwithstanding the provisions of sections 6214(a) and
6512(b), no decision shall be entered redetermining the amount of a
deficiency, or determining an overpayment, except with respect to
amounts placed in dispute within the limits described in subsection
(a) and with respect to amounts conceded by the parties.
(d) Discontinuance of proceedings
At any time before a decision entered in a case in which the
proceedings are conducted under this section becomes final, the
taxpayer or the Secretary may request that further proceedings
under this section in such case be discontinued. The Tax Court, or
the division thereof hearing such case, may, if it finds that (1)
there are reasonable grounds for believing that the amount of the
deficiency placed in dispute, or the amount of an overpayment,
exceeds the applicable jurisdictional amount described in
subsection (a), and (2) the amount of such excess is large enough
to justify granting such request, discontinue further proceedings
in such case under this section. Upon any such discontinuance,
proceedings in such case shall be conducted in the same manner as
cases to which the provisions of sections 6214(a) and 6512(b)
apply.
(e) Amount of deficiency in dispute
For purposes of this section, the amount of any deficiency placed
in dispute includes additions to the tax, additional amounts, and
penalties imposed by chapter 68, to the extent that the procedures
described in subchapter B of chapter 63 apply.
(f) Additional cases in which proceedings may be conducted under
this section
At the option of the taxpayer concurred in by the Tax Court or a
division thereof before the hearing of the case, proceedings may be
conducted under this section (in the same manner as a case
described in subsection (a)) in the case of -
(1) a petition to the Tax Court under section 6015(e) in which
the amount of relief sought does not exceed $50,000, and
(2) an appeal under section 6330(d)(1)(A) to the Tax Court of a
determination in which the unpaid tax does not exceed $50,000.
Sources
(Added Pub. L. 91-172, title IX, Sec. 957(a), Dec. 30, 1969, 83
Stat. 733; amended Pub. L. 92-512, title II, Sec. 203(b)(1), (2),
Oct. 20, 1972, 86 Stat. 945; Pub. L. 94-455, title XIX, Sec.
1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 95-600, title
V, Sec. 502(a)(1), (2)(A), (b), Nov. 6, 1978, 92 Stat. 2879; Pub.
L. 96-222, title I, Sec. 105(a)(1)(A), Apr. 1, 1980, 94 Stat. 218;
Pub. L. 97-362, title I, Sec. 106(a)(1), Oct. 25, 1982, 96 Stat.
1730; Pub. L. 98-369, div. A, title IV, Sec. 461(a)(1), (2)(A),
July 18, 1984, 98 Stat. 823; Pub. L. 101-508, title XI, Sec.
11801(c)(21)(B), Nov. 5, 1990, 104 Stat. 1388-528; Pub. L. 105-206,
title III, Sec. 3103(a), July 22, 1998, 112 Stat. 731; Pub. L.
106-554, Sec. 1(a)(7) (title III, Sec. 313(b)(1)), Dec. 21, 2000,
114 Stat. 2763, 2763A-642.)
Miscellaneous
PRIOR PROVISIONS
A prior section 7463 was renumbered section 7465 of this title.
AMENDMENTS
2000 - Subsec. (f). Pub. L. 106-554 added subsec. (f).
1998 - Pub. L. 105-206 in section catchline and in subsec. (a)(1)
to (4) substituted ''$50,000'' for ''$10,000''.
1990 - Subsec. (f). Pub. L. 101-508 struck out subsec. (f)
''Qualified State individual income taxes'' which read as follows:
''For purposes of this section, a deficiency placed in dispute or
claimed overpayment with regard to a qualified State individual
income tax to which subchapter E of chapter 64 applies, for a
taxable year, shall be treated as a portion of a deficiency placed
in dispute or claimed overpayment of the income tax for that
taxable year.''
1984 - Pub. L. 98-369, Sec. 461(a)(2)(A), substituted ''$10,000''
for ''$5,000'' in section catchline.
Subsec. (a). Pub. L. 98-369, Sec. 461(a)(1), substituted
''$10,000'' for ''$5,000'' in pars. (1) to (4).
1982 - Section (a)(4). Pub. L. 97-362 added par. (4).
1980 - Subsec. (g). Pub. L. 96-222 struck out subsec. (g) which
authorized the chief judge of the Tax Court to assign proceedings
conducted under this section to be heard by the Commissioners of
the court.
1978 - Pub. L. 95-600, Sec. 502(a)(2)(A), substituted ''$5,000''
for ''$1,500'' in section catchline.
Subsec. (a). Pub. L. 95-600, Sec. 502(a)(1), ''$5,000 for any one
taxable year, in the case of the taxes imposed by subtitle A'' for
''$1,500 for any one taxable year, in the case of the taxes imposed
by subtitle A and chapter 12, or'' in par. (1), ''$5,000, in the
case of the tax imposed by chapter 11, or'' for ''$1,500 in the
case of the tax imposed by chapter 11,'' in par. (2), and added
par. (3).
Subsec. (g). Pub. L. 95-600, Sec. 502(b), added subsec. (g).
1976 - Subsec, (d). Pub. L. 94-455 struck out ''or his delegate''
after ''Secretary''.
1972 - Pub. L. 92-512, Sec. 203(b)(2), substituted ''$1,500'' for
''$1,000'' in section catchline.
Subsec. (a)(1), (2). Pub. L. 92-512, Sec. 203(b)(2), substituted
''$1,500'' for ''$1,000''.
Subsec. (f). Pub. L. 92-512, Sec. 203(b)(1), added subsec. (f).
EFFECTIVE DATE OF 1998 AMENDMENT
Amendment by Pub. L. 105-206 applicable to proceedings commenced
after July 22, 1998, see section 3103(c) of Pub. L. 105-206, set
out as a note under section 7436 of this title.
EFFECTIVE DATE OF 1984 AMENDMENT
Section 461(b) of Pub. L. 98-369 provided that: ''The amendments
made by this section (amending this section) shall take effect on
the date of the enactment of this Act (July 18, 1984).''
EFFECTIVE DATE OF 1982 AMENDMENT
Section 106(a)(2) of Pub. L. 97-362 provided that: ''The
amendment made by this subsection (amending this section) shall
apply with respect to petitions filed after the date of the
enactment of this Act (Oct. 25, 1982).''
EFFECTIVE DATE OF 1980 AMENDMENT
Amendment by Pub. L. 96-222 effective Apr. 1, 1980, see section
105(b)(1) of Pub. L. 96-222, set out as a note under section 7456
of this title.
EFFECTIVE DATE OF 1978 AMENDMENT
Section 502(d) of Pub. L. 95-600 provided that:
''(1) Subsection (a). - The amendments made by subsection (a)
(amending this section) shall take effect on the first day of the
first calendar month beginning more than 180 days after the date of
the enactment of this Act (Nov. 6, 1978).
''(2) Subsections (b) and (c). - The amendments made by
subsection (b) (amending this section) and (c) (amending section
7456 of this title) shall take effect on the date of the enactment
of this Act.''
EFFECTIVE DATE OF 1972 AMENDMENT
Section 204 of title II of Pub. L. 92-512, as amended by Pub. L.
94-455, title XXI, Sec. 2116(a), Oct. 4, 1976, 90 Stat. 1910; Pub.
L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
''(a) General Rule. - Except as provided in subsections (b) and
(c), the provisions of this title (and the amendments made thereby)
(enacting this section and sections 6362 and 6363 of this title and
amending this section and section 6405 of this title) shall take
effect on the date of the enactment of this Act (Oct. 20, 1972).
''(b) Collection and Administration of State Taxes by the United
States May Not Begin Before January 1, 1974. - Section 6361 of the
Internal Revenue Code of 1986 (formerly I.R.C. 1954) (as added by
section 202(a) of this Act) shall take effect on whichever of the
following is the later:
''(1) January 1, 1974, or
''(2) the first January 1 which is more than one year after the
first date on which at least one State has notified the Secretary
of the Treasury or his delegate of an election to enter into an
agreement under section 6363 of such Code.
''(c) Jurisdiction of Tax Court in Disputes Involving $1,500 or
Less. - The amendments made by paragraphs (2) and (3) of section
203(b) of this Act (amending this section) shall take effect on
January 1, 1974.''
EFFECTIVE DATE
Section 962(e) of Pub. L. 91-172 provided that: ''The amendments
made by sections 957 (enacting this section) and 960(a), (b), (f),
and (i) (amending sections 6214, 6512, 7453, 7456, 7481, 7487, of
this title) shall take effect one year after the date of enactment
of this Act (Dec. 30, 1969).''
SAVINGS PROVISION
For provisions that nothing in amendment by Pub. L. 101-508 be
construed to affect treatment of certain transactions occurring,
property acquired, or items of income, loss, deduction, or credit
taken into account prior to Nov. 5, 1990, for purposes of
determining liability for tax for periods ending after Nov. 5,
1990, see section 11821(b) of Pub. L. 101-508, set out as a note
under section 29 of this title.
References
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 6214, 6512, 7430, 7436,
7443A, 7453, 7481, 7487, 7526 of this title.
