the return was filed. This subsection shall not apply in the case of a corporation unless

(1) (A) such written request notifies the Secretary or his delegate that the corporation contemplates dissolution at or before the expiration of such 18-month period, (B) the dissolution is in good faith begun before the expiration of such 18-month period, and (C) the dissolution is completed;

(2) (A) such written request notifies the Secretary or his delegate that a dissolution has in good faith been begun, and (B) the dissolution is completed; or

(3) a dissolution has been completed at the time such written request is made.

(e) Omission from gross income.

Except as otherwise provided in subsection (c)— (1) Income taxes.

In the case of any tax imposed by subtitle A(A) General rule.

If the taxpayer omits from gross income an amount properly includible therein which is in excess of 25 percent of the amount of gross income stated in the return, the tax may be assessed, or a proceeding in court for the collection of such tax may be begun without assessment, at any time within 6 years after the return was filed. For purposes of this subparagraph

(i) In the case of a trade or business, the term "gross income" means the total of the amounts received or accrued from the sale of goods or services (if such amounts are required to be shown on the return) prior to diminution by the cost of such sales or services; and

(ii) In determining the amount omitted from gross income, there shall not be taken into account any amount which is omitted from gross income stated in the return if such amount is disclosed in the return, or in a statement attached to the return, in a manner adequate to apprise the Secretary or his delegate of the nature and amount of such item.

(B) Constructive dividends.

If the taxpayer omits from gross income an amount properly includible therein under section 551 (b) (relating to the inclusion in the gross income of United States shareholders of their distributive shares of the undistributed foreign personal holding company income), the tax may be assessed, or a proceeding in court for the collection of such tax may be begun without assessment, at any time within 6 years after the return was filed.

(2) Estate and gift taxes.

In the case of a return of estate tax under chapter 11 or a return of gift tax under chapter 12, if the taxpayer omits from the gross estate or from the total amount of the gifts made during the year items includible in such gross estate or such total gifts, as the case may be, as exceed in amount 25 percent of the gross estate stated in the return or the total amount of gifts stated in the return, the tax may be assessed, or a proceeding in court

for the collection of such tax may be begun without assessment, at any time within 6 years after the return was filed. In determining the items omitted from the gross estate or the total gifts, there shall not be taken into account any item which is omitted from the gross estate or from the total gifts stated in the return if such item is disclosed in the return, or in a statement attached to the return, in a manner adequate to apprise the Secretary or his delegate of the nature and amount of such item.

(f) Personal holding company tax.

If a corporation which is a personal holding company for any taxable year fails to file with its return under chapter 1 for such year a schedule setting forth

(1) the items of gross income and adjusted ordinary gross income, described in section 543, received by the corporation during such year, and

(2) the names and addresses of the individuals who owned, within the meaning of section 544 (relating to rules for determining stock ownership), at any time during the last half of such year more than 50 percent in value of the outstanding capital stock of the corporation,

the personal holding company tax for such year may be assessed, or a proceeding in court for the collection of such tax may be begun without assessment, at any time within 6 years after the return for such year was filed.

(g) Certain income tax returns of corporations. (1) Trusts or partnerships.

If a taxpayer determines in good faith that it is a trust or partnership and files a return as such under subtitle A, and if such taxpayer is thereafter held to be a corporation for the taxable year for which the return is filed, such return shall be deemed the return of the corporation for purposes of this section.

(2) Exempt organizations.

If a taxpayer determines in good faith that it is an exempt organization and files a return as such under section 6033, and if such taxpayer is thereafter held to be a taxable organization for the taxable year for which the return is filed, such return shall be deemed the return of the organization for purposes of this section.

(h) Net operating loss carrybacks.

In the case of a deficiency attributable to the application to the taxpayer of a net operating loss carryback (including deficiencies which may be assessed pursuant to the provisions of section 6213 (b)(2), such deficiency may be assessed at any time before the expiration of the period within which a deficiency for the taxable year of the net operating loss which results in such carryback may be assessed, or within 18 months after the date on which the taxpayer files in accordance with section 172(b) (3) a copy of the certification (with respect to such taxable year) issued under section 317 of the Trade Expansion Act of 1962, whichever is later. (i) Foreign tax carrybacks.

In the case of a deficiency attributable to the application to the taxpayer of a carryback under sec

tion 904(d) (relating to carryback and carryover of excess foreign taxes), such deficiency may be assessed at any time before the expiration of one year after the expiration of the period within which a deficiency may be assessed for the taxable year of the excess taxes described in section 904 (d) which result in such carryback.

(j) Investment credit carrybacks.

In the case of a deficiency attributable to the application to the taxpayer of an investment credit carryback, such deficiency may be assessed at any time before the expiration of the period within which a deficiency for the taxable year of the unused investment credit which results in such carryback may be assessed.

(k) Reductions of policyholders surplus account of life insurance companies.

In the case of a deficiency attributable to the application to the taxpayer of section 815(d) (5) (relating to reductions of policyholders surplus account of life insurance companies for certain unused deductions), such deficiency may be assessed at any time before the expiration of the period within which a deficiency for the last taxable year to which the loss described in section 815(d) (5) (A) is carried under section 812(d) (2) may be assessed.

(1) Joint income return after separate return.

For period of limitations for assessment and collection in the case of a joint income return filed after separate returns have been filed, see section 6013 (b) (3) and (4). (Aug. 16, 1954, ch. 736, 68A Stat. 803; Sept. 2, 1958, Pub. L. 85-859, title I, § 165(a), 72 Stat. 1313; Sept. 2, 1958, Pub. L. 85-866, title I, §§ 80, 81, 72 Stat. 1662; June 25, 1959, Pub. 86-69, § 3(g), 73 Stat. 140; Sept. 14, 1960, Pub. L. 86–780, § 3(c), 74 Stat. 1013; Oct. 11, 1962, Pub. L. 87-794, title III, § 317(c), 76 Stat. 890; Oct. 16, 1962, Pub. L. 87-834, § 2(e) (1), 76 Stat. 971; Oct. 23, 1962, Pub. L. 87-858, § 3(b) (4), 76 Stat. 1137; Feb. 26, 1964, Pub. L. 88-272, title II, § 225 (k) (6), 78 Stat. 94; Sept. 2, 1964, Pub. L. 88571, § 3(b), 78 Stat. 857.)

REFERENCES IN TEXT

Section 317 of the Trade Expansion Act of 1962, referred to in subsec. (h), probably means section 317(a) of Pub. L. 87-794, which is classified to section 1917 of Title 19, Customs Duties.

AMENDMENTS

1964 Subsec. (f). Pub. L. 88-272 substituted "gross income and adjusted ordinary gross income, described in section 543" for "gross income, described in section 543(a)."

Subsec. (k). Pub. L. 88-571 added subsec. (k). Former subsec. (k) redesignated (1).

Subsec. (1). Pub. L. 88-571 redesignated former subsec. (k) as (1).

1962 Subsec. (c) (6). Pub. L. 87-858 substituted "802 (a)" for "802(a) (1)."

Subsec. (h). Pub. L. 87-794 authorized assessment of a deficiency within 18 months after the date on which the taxpayer files in accordance with section 172(b) (3) a copy of the certification issued under section 317 of the Trade Expansion Act of 1962, whichever is later. Subsec. (1). Pub. L. 87-834 added subsec. (j) and redesignated former subsec. (j) as (k).

Subsec. (k). Pub. L. 87-834 redesignated former subsec. (1) as (k).

1960-Subsec. (1). Pub. L. 86-780 added subsec. (1). Former subsec. (1) redesignated (1).

Subsec. (j). Pub. L. 86-780 redesignated former subsec. (1) as (1).

1959 Subsec. (c) (6). Pub. L. 86-69 added subsec. (c) (6).

1958

Subsec. (a). Pub. L. 85-859 substituted "at any time after such tax became due and before the expiration of 3 years after the date on which any part of such tax was paid" for "within 3 years after such tax became due".

Subsec. (d). Pub. L. 85-866, § 80 (a), (b), substituted in first sentence "subsection (c), (e), or (f)" for "subsection (c)", designated existing clauses (1)—(3) of second sentence as clause (1) and added clauses (2) and (3). Subsec. (g) (2). Pub. L. 85-866, § 81(a), substituted "organization" for "corporation" wherever appearing. Subsec. (h). Pub. L. 85–866, § 81(b) added subsec. (h) and redesignated former subsec. (h) as (1). Subsec. (1). Pub. L. 85-866, § 81(b) redesignated former subsec. (h) as (1).

EFFECTIVE DATE OF 1964 AMENDMENTS

Amendment of section by Pub. L. 88-571 effective, with respect to amounts added to policyholders surplus accounts, for taxable years beginning after Dec. 31, 1958, see section 3(f) of Pub. L. 88-571, set out as a note under section 815 of this title.

Amendment of section by Pub. L. 88-272 applicable to taxable years beginning after Dec. 31, 1963, see section 225 (1) of Pub. L. 88-272, set out as a note under section 316 of this title.

EFFECTIVE DATE OF 1962 AMENDMENTS

Amendment of this section by Pub. L. 87-858 applicable with respect to taxable years beginning after Dec. 31, 1961, see section 3(f) of Pub. L. 87-858, set out as a note under section 801 of this title.

Subsec. (1) of this section applicable with respect to taxable years ending after Dec. 31, 1961, see section 2(h) of Pub. L. 87-834, set out as a note under section 38 of this title.

EFFECTIVE DATE OF 1960 AMENDMENT Amendment of section by Pub. L. 86-780 applicable to taxable years beginning after Dec. 31, 1957, see section 4 of Pub. L. 86-780, set out as a note under section 904 of this title.

EFFECTIVE DATE OF 1959 AMENDMENT

Amendment of section by Pub. L. 86-69 applicable only with respect to taxable years beginning after Dec. 31, 1957, see section 4 of Pub. L. 86-69, set out as a note under section 801 of this title.

EFFECTIVE DATE OF 1958 AMENDMENTS Amendment of subsec. (a) by Pub. L. 85-859 effective on the first day of the first calendar quarter which begins more than 60 days after Sept. 2, 1958, see section 1 (c) of Pub. L. 85-859, set out as a note under section 4001 of this title.

Amendment of subsecs. (d) and (g) (2) of this section by Pub. L. 85-866, and subsecs. (h) and (1), effective Aug. 17, 1954, see section 1 (c) of Pub. L. 85-866, set out as a note under section 165 of this title.

CROSS REFERENCES

Liquidations before Jan. 1, 1966, see section 225 (h) of Pub. L. 88-272, set out as a note under section 333 of this title.

§ 6502. Collection after assessment. (a) Length of period.

Where the assessment of any tax imposed by this title has been made within the period of limitation properly applicable thereto, such tax may be collected by levy or by a proceeding in court, but only if the levy is made or the proceeding begun

(1) within 6 years after the assessment of the tax, or

(2) prior to the expiration of any period for collection agreed upon in writing by the Secretary or his delegate and the taxpayer before the expiration of such 6-year period (or, if there is a release of levy under section 6343 after such 6-year period, then before such release).

The period so agreed upon may be extended by subsequent agreements in writing made before the expiration of the period previously agreed upon. (b) Date when levy is considered made.

The date on which a levy on property or rights to property is made shall be the date on which the notice of seizure provided in section 6335 (a) is given. (Aug. 16, 1954, ch. 736, 68A Stat. 806.)

CROSS REFERENCES

Period of limitation on action for recovery of erroneous refund, see section 6532 (b) of this section.

§ 6503. Suspension of running of period of limitation. (a) Issuance of statutory notice of deficiency. (1) General rule.

The running of the period of limitations provided in section 6501 or 6502 on the making of assessments or the collection by levy or a proceeding in court, in respect of any deficiency as defined in section 6211 (relating to income, estate, and gift taxes), shall (after the mailing of a notice under section 6212 (a)) be suspended for the period during which the Secretary or his delegate is prohibited from making the assessment or from collecting by levy or a proceeding in court (and in any event, if a proceeding in respect of the deficiency is placed on the docket of the Tax Court, until the decision of the Tax Court becomes final), and for 60 days thereafter.

(2) Corporation joining in consolidated income tax return.

If a notice under section 6212 (a) in respect of a deficiency in tax imposed by subtitle A for any taxable year is mailed to a corporation, the suspension of the running of the period of limitations provided in paragraph (1) of this subsection shall apply in the case of corporations with which such corporation made a consolidated income tax return for such taxable year.

(b) Assets of taxpayer in control or custody of court. The period of limitations on collection after assessment prescribed in section 6502 shall be suspended for the period the assets of the taxpayer (other than the estate of a decedent or of an incompetent) are in the control or custody of the court in any proceeding before any court of the United States or of any State or Territory or of the District of Columbia, and for 6 months thereafter. (c) Location of property outside the United States or removal of property from the United States. In case collection is hindered or delayed because property of the taxpayer is situated or held outside the United States or is removed from the United States, the period of limitations on collection after assessment prescribed in section 6502 shall be suspended for the period collection is so hindered or delayed. The total suspension of time under this subsection shall not in the aggregate exceed 6 years. (d) Extensions of time for payment of estate tax. The running of the period of limitation for collection of any tax imposed by chapter 11 shall be suspended for the period of any extension of time for payment granted under the provisions of section 6161 (a) (2) or (b) (2) or under the provisions of section 6166.

(e) Certain powers of appointment.

The running of the period of limitations for assessment or collection of any tax imposed by chapter 11 shall be suspended in respect of the estate of a decedent claiming a deduction under section 2055 (b) (2) until 30 days after the expiration of the period for assessment or collection of the tax imposed by chapter 11 on the estate of the surviving spouse. (f) Cross references.

For suspension in case of

(1) Deficiency dividends of a personal holding company, see section 547 (f).

(2) Bankruptcy and receiverships, see subchapter B of chapter 70.

(3) Claims against transferees and fiduciaries, see chapter 71.

(Aug. 16, 1954, ch. 736, 68A Stat. 806; Aug. 6, 1956, ch. 1020, § 2, 70 Stat. 1075; Sept. 2, 1958, Pub. L. 85-866, title II, § 206(d), 72 Stat. 1685.)

1958

AMENDMENTS

Subsec. (d). Pub. L. 85-866 eliminated "assessment or" following "period of limitations for" and inserted "or under the provisions of section 6166".

1956 Subsec. (e). Act Aug. 6, 1956, added subsec. (e) and redesignated former subsec. (e) as subsec. (f). Subsec. (f). Act Aug. 6, 1956, redesignated former subsec. (e) as (f).

EFFECTIVE DATE OF 1958 AMENDMENT Effective date of amendment of subsec. (d) of this section by Pub. L. 85-866, see section 206 (f) of Pub. L. 85-866, set out as a note under section 6161 of this title.

EFFECTIVE DATE OF 1956 AMENDMENT

Amendment of subsecs. (e) and (f) by act Aug. 6, 1956, applicable in the case of decedents dying after Aug. 16, 1954, see note set out under section 2055 of this title. § 6504. Cross references.

For limitation period in case of

(1) Adjustments incident to involuntary liquidation of inventory, see section 1321.

(2) Adjustments to accrued foreign taxes, see section 905 (c).

(3) Change of election with respect to the standard deduction where taxpayer and his spouse make separate returns, see section 144 (b).

(4) Involuntary conversion of property, see section 1033 (a) (3) (C) and (D).

(5) Gain upon sale or exchange of residence, see section 1034 (j).

(6) War loss recoveries where prior benefit rule is elected, see section 1335.

(7) Recovery of unconstitutional Federal taxes, see section 1346.

(8) Limitations on deductions allowable to individuals in certain cases, see section 270 (d).

(9) Application by executor for discharge from personal liability for estate tax, see section 2204.

(10) Insolvent banks and trust companies, see section 7507. (11) Service in a combat zone, etc., see section 7508. (12) Claims against transferees and fiduciaries, see chapter 71.

(13) Assessments to recover excessive amounts paid under section 6420 (relating to gasoline used on farms) and assessments of civil penalties under section 6675 for excessive claims under section 6420, see section 6206.

(14) Assessments to recover excessive amounts paid under section 6421 (relating to gasoline used for certain nonhighway purposes or by local transit systems) and assessments of civil penalties under section 6675 for excessive claims under section 6421, see section 6206.

(15) Assessment and collection of interest, see section 6601 (h).

(Aug. 16, 1954, ch. 736, 68A Stat. 807; Apr. 2, 1956,

ch. 160, § 4(d), 70 Stat. 91; June 29, 1956, ch. 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.)

AMENDMENTS

1964-Par. (3). Pub. L. 88-272 substituted "with respect to the" for "to take."

1958-Subd. (15). Pub. L. 85-866 added subd. (15). 1956 Subd. (13). Act. Apr. 2, 1956 added subd. (13). Subd. (14). Act June 29, 1956 added subd. (14).

EFFECTIVE DATE OF 1964 AMENDMENT Amendment of section by Pub. L. 88-272, except for purposes of section 21 of this title, effective with respect to taxable years beginning after Dec. 31, 1963, see section 131 of Pub. L. 88-272, set out as a note under section 1 of this title.

EFFECTIVE DATE OF 1958 AMENDMENT

Par. (15) of this section effective Aug. 17, 1954, see section 1 (c) of Pub. L. 85-866, set out as a note under section 165 of this title.

EFFECTIVE DATE OF 1956 AMENDMENT Amendment of this section by act June 29, 1956, effective June 29, 1956, see section 211 of act June 29, 1956, set out as a note under section 4041 of this title.

Subchapter B.-Limitations on Credit or Refund

Sec.

6511. Limitations on credit or refund.

6512. Limitations in case of petition to Tax Court. 6513. Time return deemed filed and tax considered paid. 6514. Credits or refunds after period of limitation. 6515. Cross references.

§ 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 filling 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 preceeding 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

or

(A) prior to the execution of the agreement

(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 carrybacks.

(A) Period of limitation.

If the claim for credit or refund relates to an overpayment attributable to & net operating loss carryback, in lieu of the 3-year period of limitation prescribed in subsection (a), the period shall be that period which ends with the expiration of the 15th day of the 40th month (or the 39th month, in the case of a corporation) following the end of the taxable year of the net operating loss which results in such carryback, or the period prescribed in subsection (c) in respect of such taxable year, whichever expires later; except that

(i) with respect to an overpayment attributable to a net operating loss carryback to any year on account of a certification issued to the taxpayer under section 317 of the Trade Expansion Act of 1962, the period shall not expire before the expiration of the sixth month following the month in which such certification is issued to the taxpayer, and

(ii) 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 period shall not expire before September 1, 1959, or the expiration of the twelfth month following the month in which the agreement or order for the elimination of such excessive profits becomes final, whichever is the later.

In the case of such a claim, the amount of the credit or refund may exceed the portion of the tax paid within the period provided in subsection (b) (2) or (c), whichever is applicable to the extent of the amount of the overpayment attributable to such carryback.

(B) Applicable rules.

(1) If the allowance of a credit or refund of an overpayment of tax attributable to a net operating loss carryback is otherwise prevented by the operation of any law or rule of law other than section 7122, relating to compromises, such credit or refund may be allowed or made, if claim therefor is filed within the period provided in subparagraph (A) of this paragraph. If the allowance of an application, credit, or refund of a decrease in tax determined under section 6411(b) is otherwise prevented by the operation of any

law or rule of law other than section 7122, such application, credit, or refund may be allowed or made if application for a tentative carry back adjustment is made within the period provided in section 6411(a). In the case of any such claim for credit or refund or any such application for a tentative carryback adjustment, the determination by any court, including the Tax Court, in any proceeding in which the decision of the court has become final, shall be conclusive except with respect to the net operating loss deduction, and the effect of such deduction, to the extent that such deduction is affected by a carryback which was not in issue in such proceeding.

(ii) A claim for credit or refund for a computation year (as defined in section 1302(e) (1)) shall be determined to relate to an overpayment attributable to a net operating loss carryback when such carryback relates to any base period year (as defined in section 1302 (e) (3)).

(3) Special rules relating to foreign tax credit. (A) Special period of limitation with respect to foreign taxes paid or accrued.

If the claim for credit or refund relates to an overpayment attributable to any taxes paid or accrued to any foreign country or to any possession of the United States for which credit is allowed against the tax imposed by subtitle A in accordance with the provisions of section 901 or the provisions of any treaty to which the United States is a party, in lieu of the 3-year period of limitation prescribed in subsection (a), the period shall be 10 years from the date prescribed by law for filing the return for the year with respect to which the claim is made. (B) Exception in the case of foreign taxes paid or accrued.

In the case of a claim described in subparagraph (A), the amount of the credit or refund may exceed the portion of the tax paid within the period provided in subsection (b) or (c), whichever is applicable, to the extent of the amount of the overpayment attributable to the allowance of a credit for the taxes described in subparagraph (A).

(4) Special period of limitation with respect to investment credit carrybacks.

(A) Period of limitation.

If the claim for credit or refund relates to an overpayment attributable to an investment credit carryback, in lieu of the 3-year period of limitation prescribed in subsection (a), the period shall be that period which ends with the expiration of the 15th day of the 40th month (or 39th month, in the case of a corporation) following the end of the taxable year of the unused investment credit which results in such carryback, or the period prescribed in subsection (c) in respect of such taxable year, whichever expires later. In the case of such a claim, the amount of the credit or refund may exceed the portion of the tax paid within the period provided in subsection (b) (2) or (c), whichever is