ASSESSMENTS IN CASE OF MATHEMATICAL OR CLERICAL ERRORS.

SEC. 1206. ASSESSMENTS IN CASE OF MATHEMATICAL OR CLERICAL ERRORS. (a) In General.— Section 6213(b) (relating to exceptions to restrictions on assessment in certain cases) is amended— (1) by redesignating paragraphs (2) and (3) as paragraphs (3) and (4), respectively, and (2) by striking out paragraph (1) and inserting in lieu thereof the following new paragraphs: “(1) Assessments arising out of mathematical or clerical errors.— If the taxpayer is notified that, on account of a mathematical or clerical error appearing on the return, an amount of tax in excess of that shown on the return is due, and that an assessment of the tax has been or will be made on the basis of what would have been the correct amount of t ax but for the mathematical or clerical error, such notice shall not be considered as a notice of deficiency for tile purposes of subsection (a)(prohibiting assessment and collection until notice of the deficiency has been mailed), or of section 6212(c)(1)(restricting further deficiency letters), or of section 6512(a)(prohibiting credits or refunds after petition to the Tax Court), and the taxpayer shall have no right to file a petition with the Tax Court Based on such notice, nor shall such assessment or collection be prohibited by the provisions of subsection (a) of this section. Each notice under this paragraph shall set forth the error alleged and an explanation thereof. “(2) Abatement of assessment of mathematical or clerical errors.— “(A) Request for abatement.— Notwithstanding section 6404(b), a taxpayer may file with the Secretary within 60 days after notice is sent under paragraph (1) a request for an abatement of any assessment specified in such notice, and upon receipt of such request, the Secretary shall abate the assessment. Any reassessment of the tax with respect to which an abatement is made under this subparagraph shall be subject to the deficiency procedures prescribed by this subchapter. “(B) Stay of collection.— In the case of any assessment referred to in paragraph (1), notwithstanding paragraph (1), no levy or proceeding in court for the collection of such assessment shall be made, begun, or prosecuted during the period in which such assessment may be abated under this paragraph.” (b) Definitions Relating to Mathematical or Clerical Errors.— Section 6213 is amended by redesignating subsection (f) as subsection (g), and by inserting immediately after subsection (e) the following new subsection: “(f) Definitions.— For purposes of this section— “(1) Return.— The term ‘return’ includes any return, statement, schedule, or list, and any amendment or supplement thereto, filed with respect to any tax imposed by subtitle A or B, or chapter 42 or 43. “(2) Mathematical or clerical error.— The term ‘mathematical or clerical error’ means— 90 STAT. 1704 “(A) an error in addition, subtraction, multiplication, or division shown on any return, “(B) an incorrect use of any table provided by the Internal Revenue Service with respect to any return if such incorrect use is apparent from the existence of other information on the return, “(C) an entry on a return of an item which is inconsistent with another entry of the same or another item on such return, “(D) an omission of information which is required to be supplied on the return to substantiate an entry on the return, and “(E) an entry on a return of a deduction or credit in an amount which exceeds a statutory limit imposed by subtitle A or B, or chapter 42 or 43, if such limit is expressed— “(i) as a specified monetary amount, or “(ii) as a percentage, ratio, or fraction, and if the items entering into the application of such limit appear on such return” (c) Technical and Conforming Amendments.— (1) Section 6213(b)(3) (relating to assessments arising out of tentative carryback adjustments), as redesignated by subsection (a), is amended— (A) by striking out “he may assess” and inserting in lieu thereof “he may assess without regard to the provisions of paragraph (2)”, and (B) by striking out “mathematical error” and inserting in lieu thereof “mathematical or clerical error”. (2) Section 6201(a)(3) (relating to assessments regarding erroneous income tax prepayment credits) and section 6201(a)(4) (relating to assessments regarding erroneous credit under section 39 or 43) are each amended— (A) by striking out “mathematical error” and inserting in lieu thereof “mathematical or clerical error”, and (B) by inserting immediately before, the period at the end thereof the following: “, except that the provisions of section 6213 (b)(2) (relating to abatement of mathematical or clerical error assessments) shall not apply with regard to any assessment under this paragraph”. (3) Section 6212(c)(1) (relating to deficiency letters) is amended by striking out “(relating to mathematical errors)” and inserting in lieu thereof “(relating to mathematical or clerical errors)”. (d) Effective Date.— The amendments made by this section shall apply with respect to returns (within the meaning of section 6213 (f)(1) of the Internal Revenue Code of 1954) filed after December 31, 1976.