---
kind: "section"
citation: "26 U.S.C. § 7463"
title: "26"
title_heading: "Internal Revenue Code"
number: "7463"
heading: "Disputes involving $50,000 or less"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/26/7463"
units:
  - "Subtitle F — Procedure and Administration"
  - "Chapter 76 — Judicial Proceedings"
  - "Subchapter C — The Tax Court"
  - "Part II — Procedure"
---

# §7463. Disputes involving $50,000 or less

- (a) **In general—** In the case of any petition filed with the [Tax Court](/usc/26/7701.md?p=a-27) for a redetermination of a [deficiency](/usc/26/6211.md?p=a) where neither the amount of the [deficiency](/usc/26/6211.md?p=a) placed in dispute, nor the amount of any claimed overpayment, exceeds—
  - (1) $50,000 for any one [taxable year](/usc/26/7701.md?p=a-23), in the case of the taxes imposed by subtitle A,
  - (2) $50,000, in the case of the tax imposed by [chapter 11](/usc/26/chstB/ch11.md),
  - (3) $50,000 for any one calendar year, in the case of the tax imposed by [chapter 12](/usc/26/chstB/ch12.md), or
  - (4) $50,000 for any 1 taxable period (or, if there is no taxable period, taxable event) in the case of any tax imposed by subtitle D which is described in [section 6212(a)](/usc/26/6212.md?p=a) (relating to a notice of [deficiency](/usc/26/6211.md?p=a)),

  at the option of the [taxpayer](/usc/26/7701.md?p=a-14) concurred in by the [Tax Court](/usc/26/7701.md?p=a-27) or a division thereof before the hearing of the case, proceedings in the case shall be conducted under this section. Notwithstanding the provisions of [section 7453](/usc/26/7453.md), such proceedings shall be conducted in accordance with such rules of evidence, practice, and procedure as the [Tax Court](/usc/26/7701.md?p=a-27) may prescribe. A decision, together with a brief summary of the reasons therefor, in any such case shall satisfy the requirements of sections [7459(b)](/usc/26/7459.md?p=b) and 7460.

- (b) **Finality of decisions—** A decision entered in any case in which the proceedings are conducted under this section shall not be reviewed in any other court and shall not be treated as a precedent for any other case.
- (c) **Limitation of jurisdiction—** In any case in which the proceedings are conducted under this section, notwithstanding the provisions of sections [6214(a)](/usc/26/6214.md?p=a) and [6512(b)](/usc/26/6512.md?p=b), no decision shall be entered redetermining the amount of a [deficiency](/usc/26/6211.md?p=a), or determining an overpayment, except with respect to amounts placed in dispute within the limits described in [subsection (a)](#a) and with respect to amounts conceded by the parties.
- (d) **Discontinuance of proceedings—** At any time before a decision entered in a case in which the proceedings are conducted under this section becomes final, the [taxpayer](/usc/26/7701.md?p=a-14) or the [Secretary](/usc/26/7701.md?p=a-11-B) may request that further proceedings under this section in such case be discontinued. The [Tax Court](/usc/26/7701.md?p=a-27), or the division thereof hearing such case, may, if it finds that (1) there are reasonable grounds for believing that the amount of the [deficiency](/usc/26/6211.md?p=a) placed in dispute, or the amount of an overpayment, exceeds the applicable jurisdictional amount described in subsection [(a)](#a), and (2) the amount of such excess is large enough to justify granting such request, discontinue further proceedings in such case under this section. Upon any such discontinuance, proceedings in such case shall be conducted in the same manner as cases to which the provisions of sections [6214(a)](/usc/26/6214.md?p=a) and [6512(b)](/usc/26/6512.md?p=b) apply.
- (e) **Amount of deficiency in dispute—** For purposes of this section, the amount of any [deficiency](/usc/26/6211.md?p=a) placed in dispute [includes](/usc/26/7701.md?p=c) additions to the tax, additional amounts, and penalties imposed by [chapter 68](/usc/26/chstF/ch68.md), to the extent that the procedures described in subchapter B of [chapter 63](/usc/26/chstF/ch63.md) apply.
- (f) **Additional cases in which proceedings may be conducted under this section—** At the option of the [taxpayer](/usc/26/7701.md?p=a-14) concurred in by the [Tax Court](/usc/26/7701.md?p=a-27) or a division thereof before the hearing of the case, proceedings may be conducted under this section (in the same manner as a case described in [subsection (a)](#a)) in the case of—
  - (1) a petition to the [Tax Court](/usc/26/7701.md?p=a-27) under [section 6015(e)](/usc/26/6015.md?p=e) in which the amount of relief sought does not exceed $50,000,
  - (2) an appeal under [section 6330(d)(1)(A)](/usc/26/6330.md) to the [Tax Court](/usc/26/7701.md?p=a-27) of a determination in which the unpaid tax does not exceed $50,000, and
  - (3) a petition to the [Tax Court](/usc/26/7701.md?p=a-27) under [section 6404(h)](/usc/26/6404.md?p=h) in which the amount of the abatement sought does not exceed $50,000.

## Source credit

(Added Pub. L. 91–172, title IX, § 957(a), Dec. 30, 1969, 83 Stat. 733; amended Pub. L. 92–512, title II, § 203(b)(1), (2), Oct. 20, 1972, 86 Stat. 945; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 95–600, title V, § 502(a)(1), (2)(A), (b), Nov. 6, 1978, 92 Stat. 2879; Pub. L. 96–222, title I, § 105(a)(1)(A), Apr. 1, 1980, 94 Stat. 218; Pub. L. 97–362, title I, § 106(a)(1), Oct. 25, 1982, 96 Stat. 1730; Pub. L. 98–369, div. A, title IV, § 461(a)(1), (2)(A), July 18, 1984, 98 Stat. 823; Pub. L. 101–508, title XI, § 11801(c)(21)(B), Nov. 5, 1990, 104 Stat. 1388–528; Pub. L. 105–206, title III, § 3103(a), July 22, 1998, 112 Stat. 731; Pub. L. 106–554, § 1(a)(7) [title III, § 313(b)(1)], Dec. 21, 2000, 114 Stat. 2763, 2763A–642; Pub. L. 114–113, div. Q, title IV, § 422(a), Dec. 18, 2015, 129 Stat. 3123.)

## Notes

### Editorial Notes

### Prior Provisions

A prior section 7463 was renumbered section 7465 of this title.

### Amendments

2015—Subsec. (f)(3). Pub. L. 114–113 added par. (3).

2000—Subsec. (f). Pub. L. 106–554 added subsec. (f).

1998—Pub. L. 105–206 in section catchline and in subsec. (a)(1) to (4) substituted “$50,000” for “$10,000”.

1990—Subsec. (f). Pub. L. 101–508 struck out subsec. (f) “Qualified State individual income taxes” which read as follows: “For purposes of this section, a deficiency placed in dispute or claimed overpayment with regard to a qualified State individual income tax to which subchapter E of chapter 64 applies, for a taxable year, shall be treated as a portion of a deficiency placed in dispute or claimed overpayment of the income tax for that taxable year.”

1984—Pub. L. 98–369, § 461(a)(2)(A), substituted “$10,000” for “$5,000” in section catchline.

Subsec. (a). Pub. L. 98–369, § 461(a)(1), substituted “$10,000” for “$5,000” in pars. (1) to (4).

1982—Section (a)(4). Pub. L. 97–362 added par. (4).

1980—Subsec. (g). Pub. L. 96–222 struck out subsec. (g) which authorized the chief judge of the Tax Court to assign proceedings conducted under this section to be heard by the Commissioners of the court.

1978—Pub. L. 95–600, § 502(a)(2)(A), substituted “$5,000” for “$1,500” in section catchline.

Subsec. (a). Pub. L. 95–600, § 502(a)(1), “$5,000 for any one taxable year, in the case of the taxes imposed by subtitle A” for “$1,500 for any one taxable year, in the case of the taxes imposed by subtitle A and chapter 12, or” in par. (1), “$5,000, in the case of the tax imposed by chapter 11, or” for “$1,500 in the case of the tax imposed by chapter 11,” in par. (2), and added par. (3).

Subsec. (g). Pub. L. 95–600, § 502(b), added subsec. (g).

1976—Subsec, (d). Pub. L. 94–455 struck out “or his delegate” after “Secretary”.

1972—Pub. L. 92–512, § 203(b)(2), substituted “$1,500” for “$1,000” in section catchline.

Subsec. (a)(1), (2). Pub. L. 92–512, § 203(b)(2), substituted “$1,500” for “$1,000”.

Subsec. (f). Pub. L. 92–512, § 203(b)(1), added subsec. (f).

### Statutory Notes and Related Subsidiaries

### Effective Date of 2015 Amendment

Pub. L. 114–113, div. Q, title IV, § 422(b), Dec. 18, 2015, 129 Stat. 3123, provided that: “The amendments made by this section [amending this section] shall apply to cases pending as of the day after the date of the enactment of this Act [Dec. 18, 2015], and cases commenced after such date of enactment.”

### Effective Date of 1998 Amendment

Amendment by Pub. L. 105–206 applicable to proceedings commenced after July 22, 1998, see section 3103(c) of Pub. L. 105–206, set out as a note under section 7436 of this title.

### Effective Date of 1984 Amendment

Pub. L. 98–369, div. A, title IV, § 461(b), July 18, 1984, 98 Stat. 823, provided that: “The amendments made by this section [amending this section] shall take effect on the date of the enactment of this Act [July 18, 1984].”

### Effective Date of 1982 Amendment

Pub. L. 97–362, title I, § 106(a)(2), Oct. 25, 1982, 96 Stat. 1730, provided that: “The amendment made by this subsection [amending this section] shall apply with respect to petitions filed after the date of the enactment of this Act [Oct. 25, 1982].”

### Effective Date of 1980 Amendment

Amendment by Pub. L. 96–222 effective Apr. 1, 1980, see section 105(b)(1) of Pub. L. 96–222, set out as a note under section 7456 of this title.

### Effective Date of 1978 Amendment

Pub. L. 95–600, title V, § 502(d), Nov. 6, 1978, 92 Stat. 2879, provided that: Subsection (a).—The amendments made by subsection (a) [amending this section] shall take effect on the first day of the first calendar month beginning more than 180 days after the date of the enactment of this Act [Nov. 6, 1978]. Subsections (b) and (c).—The amendments made by subsection (b) [amending this section] and (c) [amending section 7456 of this title] shall take effect on the date of the enactment of this Act.”

### Effective Date of 1972 Amendment

Pub. L. 92–512, title II, § 204, Oct. 20, 1972, 86 Stat. 945, as amended by Pub. L. 94–455, title XXI, § 2116(a), Oct. 4, 1976, 90 Stat. 1910; Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that: General Rule.—Except as provided in subsections (b) and (c), the provisions of this title (and the amendments made thereby) [enacting this section and sections 6362 and 6363 of this title and amending this section and section 6405 of this title] shall take effect on the date of the enactment of this Act [Oct. 20, 1972]. Collection and Administration of State Taxes by the United States May Not Begin Before January 1, 1974.—Section 6361 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] (as added by section 202(a) of this Act) shall take effect on whichever of the following is the later: January 1, 1974, or the first January 1 which is more than one year after the first date on which at least one State has notified the Secretary of the Treasury or his delegate of an election to enter into an agreement under section 6363 of such Code. Jurisdiction of Tax Court in Disputes Involving $1,500 or Less.—The amendments made by paragraphs (2) and (3) of section 203(b) of this Act [amending this section] shall take effect on January 1, 1974.”

### Effective Date

Pub. L. 91–172, title IX, § 962(e), Dec. 30, 1969, 83 Stat. 736, provided that: “The amendments made by sections 957 [enacting this section] and 960(a), (b), (f), and (i) [amending sections 6214, 6512, 7453, 7456, 7481, 7487, of this title] shall take effect one year after the date of enactment of this Act [Dec. 30, 1969].”

### Savings Provision

For provisions that nothing in amendment by Pub. L. 101–508 be construed to affect treatment of certain transactions occurring, property acquired, or items of income, loss, deduction, or credit taken into account prior to Nov. 5, 1990, for purposes of determining liability for tax for periods ending after Nov. 5, 1990, see section 11821(b) of Pub. L. 101–508, set out as a note under section 45K of this title.