rr-07-53.pdf

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# Part I

## Section 6411 .- Tentative Carryback and Refund Adjustments

26 CFR 1.6411-2T: Computation of Tentative Carryback Adjustment
(Also: 6402, 26 CFR 1.6411-3T)

Rev. Rul. 2007-53

### TEXT

The Internal Revenue Service has determined that Rev. Rul. 78-369 is
inconsistent with the regulations under section 6411 of the Internal Revenue Code.
Temporary, final, and proposed regulations published in this issue of the Internal
Revenue Bulletin clarify that the computation and allowance of a tentative refund under
section 6411 is a two-step process. Rev. Rul. 78-369, 1978-2 C.B. 324, is revoked.

The decrease in tax previously determined (tentative allowance) is computed
pursuant to Treas. Reg. §1.6411-2 but applied pursuant to Treas. Reg. §1.6411-3. For
purposes of computing the allowance, the Commissioner will not consider amounts to
which the taxpayer and the Commissioner are in disagreement. For purposes of
applying the allowance, however, the Commissioner may credit or reduce the tentative
adjustment by any assessed tax liabilities, unassessed liabilities determined in a

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statutory notice of deficiency, unassessed liabilities identified in a proof of claim filed in
bankruptcy proceeding, and other unassessed liabilities in rare and unusual
circumstances. See Temp. Treas. Reg. §§1.6411-2T and 1.6411-3T; Rev. Rul. 2007-51
and Rev. Rul. 2007-52.

### EFFECT ON OTHER REVENUE RULINGS

Rev. Rul. 78-369, 1978-2 C.B. 324, is revoked.

### DRAFTING INFORMATION

The principal author of this revenue ruling is Cynthia Ann McGreevy of the Office
of Associate Chief Counsel (Procedure & Administration). For further information
regarding this revenue ruling, contact Cynthia Ann McGreevy at 202-622-4910 (not a
toll-free call).