B-144997, AUG. 31, 1961

B-144997, AUG. 31, 1961

TO MR. NATHANIEL ROTHSTEIN:

ON AUGUST 23, 1961, YOU WROTE TO OUR OFFICE CONCERNING INCOME TAX REFUND CHECK NO. 23,986,190, DATED MARCH 30, 1960, FOR $14,949.70 WHICH WAS DRAWN TO THE ORDER OF YOUR CLIENT, ELOISE ENGLISH. IN THAT LETTER YOU EXPRESS THE OPINION THAT MISS ENGLISH IS ENTITLED TO INTEREST FROM MARCH 30, 1960, AND ASK TO BE ADVISED WHETHER OUR OFFICE INTENDS TO MAKE THIS PAYMENT.

THE GENERAL ACCOUNTING OFFICE CANNOT AUTHORIZE PAYMENT OF INTEREST IN THIS MATTER AS DETERMINATIONS REGARDING INTEREST PAYMENTS ON INTERNAL REVENUE REFUNDS ARE BEYOND THE JURISDICTION OF OUR OFFICE.

SECTION 6611 OF TITLE 26 OF THE U.S.C. PROVIDES IN PERTINENT PART AS FOLLOWS.

"/A) RATE.

"INTEREST SHALL BE ALLOWED AND PAID UPON ANY OVERPAYMENT IN RESPECT OF ANY INTERNAL REVENUE TAX AT THE RATE OF 6 PERCENT PER ANNUM.

"/B) PERIOD.

"SUCH INTEREST SHALL BE ALLOWED AND PAID AS FOLLOWS:

"/2) REFUNDS.

"IN THE CASE OF A REFUND, FROM THE DATE OF THE OVERPAYMENT TO A DATE (TO BE DETERMINED BY THE SECRETARY (OF THE TREASURY) OR HIS DELEGATE) PRECEDING THE DATE OF THE REFUND CHECK BY NOT MORE THAN 30 DAYS, WHETHER OR NOT SUCH REFUND CHECK IS ACCEPTED BY THE TAXPAYER AFTER TENDER OF SUCH CHECK TO THE TAXPAYER. * * *"

ALSO, 26 U.S.C. 6406 PROVIDES IN PERTINENT PART:

"IN THE ABSENCE OF FRAUD OR MISTAKE IN MATHEMATICAL CALCULATION, * * * THE ALLOWANCE OR NONALLOWANCE BY THE SECRETARY OR HIS DELEGATE OF INTEREST ON ANY CREDIT OR REFUND UNDER THE INTERNAL REVENUE LAWS SHALL NOT * * * BE SUBJECT TO REVIEW BY ANY OTHER ADMINISTRATIVE OR ACCOUNTING OFFICER, EMPLOYEE, OR AGENT OF THE UNITED STATES.'

THE ABOVE-QUOTED PROVISIONS OF LAW GRANT THE SECRETARY OF THE TREASURY AUTHORITY TO DETERMINE THE AMOUNT OF INTEREST PAYABLE ON TAX REFUNDS AND CLEARLY PRECLUDE AN AUTHORITATIVE DETERMINATION BY OUR OFFICE IN THE MATTER.