52 STAT.] 75TH CONG. , 3D SESS.-CH. 289-MAY 28, 1938 (b) LIMITATION ON ALLOWANCE.- (1) PERIOD OF LIMITATION.-Unless a claim for credit or refund is filed by the taxpayer within three years from the time the return was filed by the taxpayer or within two years from the time the tax was paid, no credit or refund shall be allowed or made after the expiration of whichever of such periods expires the later. If no return is filed by the taxpayer, then no credit or refund shall be allowed or made after two years from the time the tax was paid, unless before the expira- tion of such period a claim therefor is filed by the taxpayer. (2) LIMIT ON AMOUNT OF CREDIT OR REFUND.- The amount of the credit or refund shall not exceed the portion of the tax paid during the three years immediately preceding the filing of the claim, or, if no claim was filed, then during the three years immediately preceding the allowance of the credit or refund. (c) EFFECT OF PETITION TO BOARD.- If the Commissioner has mailed to the taxpayer a notice of deficiency under section 272 (a) and if the taxpayer files a petition with the Board of Tax Appeals within the time prescribed in such subsection, no credit or refund in respect of the tax for the taxable year in respect of which the Commissioner has determined the deficiency shall be allowed or made and no suit by the taxpayer for the recovery of any part of such tax shall be instituted in any court except- (1) As to overpayments determined by a decision of the Board which has become final; and (2) As to any amount collected in excess of an amount com- puted in accordance with the decision of the Board which has become final; and (3) As to any amount collected after the period of limitation upon the beginning of distraint or a proceeding in court for collection has expired; but in any such claim for credit or refund or in any such suit for refund the decision of the Board which has become final, as to whether such period has expired before the notice of deficiency was mailed, shall be conclusive. (d) OVERPAYMENT FOUND BY BOARD.- I f the Board finds that there is no deficiency and further finds that the taxpayer has made an overpayment of tax in respect of the taxable year in respect of which the Commissioner determined the deficiency, the Board shall have jurisdiction to determine the amount of such overpay- ment, and such amount shall, when the decision of the Board has become final, be credited or refunded to the taxpayer. No such credit or refund shall be made of any portion of the tax unless the Board determines as part of its decision that such portion was paid (1) within three years before the filing of the claim or the filing of the petition, whichever is earlier, or (2) after the mailing of the notice of deficiency. (e) TAX WITHHELD AT SoUrCE.-For refund or credit in case of excessive withholding at the source, see section 143 (f). Supplement P-Foreign Personal Holding Companies SEC. 331. DEFINITION OF FOREIGN PERSONAL HOLDING COMPANY. (a) GENERAL RUL.-For the purposes of this title the term "for- eign personal holding company" means any foreign corporation if- (1) GRoss INCOME REQUIREMENT. - At least 60 per centum of its gross income (as defined in section 334 (a)) for the taxable year is foreign personal holding company income as defined in section 332; but if the corporation is a foreign personal holding 36,525°-38-35 Limitation on allow- ance. Period of limitation. Limit on amount cf credit or refund. Petition to Board of Tax Appeals, effect of. Ante, p. 535. Exceptions. Overpayments. Excess collections. Collections after period of limitation. Overpayment found by Board. Credit or refund. Tax withheld at source. Ante, p. 513. Foreign personal holding companies. Definition. General rule. Gross income re- quirement. Post, p. 548 .
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