-CITE-
26 USC CHAPTER 64 - COLLECTION 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 64 - COLLECTION
-HEAD-
CHAPTER 64 - COLLECTION
-MISC1-
Subchapter Sec.(!1)
A. General provisions 6301
B. Receipt of payment 6311
C. Lien for taxes 6321
D. Seizure of property for collection of taxes 6331
[E. Repealed.]
AMENDMENTS
1990 - Pub. L. 101-508, title XI, Sec. 11801(b)(14), Nov. 5,
1990, 104 Stat. 1388-522, struck out item for subchapter E
"Collection of State individual income taxes".
1972 - Pub. L. 92-512, title II, Sec. 202(b), Oct. 20, 1972, 86
Stat. 944, added item for subchapter E.
-SECREF-
CHAPTER REFERRED TO IN OTHER SECTIONS
This chapter is referred to in sections 6867, 7410, 7801, 7804,
7811 of this title.
-FOOTNOTE-
(!1) Section numbers editorially supplied.
-End-
-CITE-
26 USC Subchapter A - General Provisions 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 64 - COLLECTION
Subchapter A - General Provisions
-HEAD-
SUBCHAPTER A - GENERAL PROVISIONS
-MISC1-
Sec.
6301. Collection authority
6302. Mode or time of collection.
6303. Notice and demand for tax.
6304. Fair tax collection practices.
6305. Collection of certain liability.
AMENDMENTS
1998 - Pub. L. 105-206, title III, Sec. 3466(b), July 22, 1998,
112 Stat. 769, added item 6304.
1976 - Pub. L. 94-455, title XIX, Sec. 1906(b)(5), Oct. 4, 1976,
90 Stat. 1833, struck out item "6304. Collection under the Tariff
Act".
1975 - Pub. L. 93-647, Sec. 101(b)(2), Jan. 4, 1975, 88 Stat.
2358, added item 6305.
-End-
-CITE-
26 USC Sec. 6301 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 64 - COLLECTION
Subchapter A - General Provisions
-HEAD-
Sec. 6301. Collection authority
-STATUTE-
The Secretary shall collect the taxes imposed by the internal
revenue laws.
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 775; Pub. L. 94-455, title XIX,
Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.)
-MISC1-
AMENDMENTS
1976 - Pub. L. 94-455 struck out "or his delegate" after
"Secretary".
APPROVAL PROCESS FOR LIENS, LEVIES, AND SEIZURES
Pub. L. 105-206, title III, Sec. 3421, July 22, 1998, 112 Stat.
758, provided that:
"(a) In General. - The Commissioner of Internal Revenue shall
develop and implement procedures under which -
"(1) a determination by an employee to file a notice of lien or
levy with respect to, or to levy or seize, any property or right
to property would, where appropriate, be required to be reviewed
by a supervisor of the employee before the action was taken; and
"(2) appropriate disciplinary action would be taken against the
employee or supervisor where the procedures under paragraph (1)
were not followed.
"(b) Review Process. - The review process under subsection (a)(1)
may include a certification that the employee has -
"(1) reviewed the taxpayer's information;
"(2) verified that a balance is due; and
"(3) affirmed that the action proposed to be taken is
appropriate given the taxpayer's circumstances, considering the
amount due and the value of the property or right to property.
"(c) Effective Dates. -
"(1) In general. - Except as provided in paragraph (2), this
section shall take effect on the date of the enactment of this
Act [July 22, 1998].
"(2) Automated collection system actions. - In the case of any
action under an automated collection system, this section shall
apply to actions initiated after December 31, 2000."
-End-
-CITE-
26 USC Sec. 6302 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 64 - COLLECTION
Subchapter A - General Provisions
-HEAD-
Sec. 6302. Mode or time of collection
-STATUTE-
(a) Establishment by regulations
If the mode or time for collecting any tax is not provided for by
this title, the Secretary may establish the same by regulations.
(b) Discretionary method
Whether or not the method of collecting any tax imposed by
chapter 21, 31, 32, or 33, or by section 4481 is specifically
provided for by this title, any such tax may, under regulations
prescribed by the Secretary, be collected by means of returns,
stamps, coupons, tickets, books, or such other reasonable devices
or methods as may be necessary or helpful in securing a complete
and proper collection of the tax.
(c) Use of Government depositaries
The Secretary may authorize Federal Reserve banks, and
incorporated banks, trust companies, domestic building and loan
associations, or credit unions which are depositaries or financial
agents of the United States, to receive any tax imposed under the
internal revenue laws, in such manner, at such times, and under
such conditions as he may prescribe; and he shall prescribe the
manner, times, and conditions under which the receipt of such tax
by such banks, trust companies, domestic building and loan
associations, and credit unions is to be treated as payment of such
tax to the Secretary.
(d) Time for payment of manufacturers' excise tax on sporting goods
The taxes imposed by subsections (a) and (b) of section 4161
(relating to taxes on sporting goods) shall be due and payable on
the date for filing the return for such taxes.
(e) Time for deposit of taxes on communications services and
airline tickets
(1) In general
Except as provided in paragraph (2), if, under regulations
prescribed by the Secretary, a person is required to make
deposits of any tax imposed by section 4251 or subsection (a) or
(b) of section 4261 with respect to amounts considered collected
by such person during any semimonthly period, such deposit shall
be made not later than the 3rd day (not including Saturdays,
Sundays, or legal holidays) after the close of the 1st week of
the 2nd semimonthly period following the period to which such
amounts relate.
(2) Special rule for tax due in September
(A) Amounts considered collected
In the case of a person required to make deposits of the tax
imposed by -
(i) section 4251, or
(ii) effective on January 1, 1997, section 4261 or 4271,
with respect to amounts considered collected by such person
during any semimonthly period, the amount of such tax included
in bills rendered or tickets sold during the period beginning
on September 1 and ending on September 11 shall be deposited
not later than September 29.
(B) Special rule where September 29 is on Saturday or Sunday
If September 29 falls on a Saturday or Sunday, the due date
under subparagraph (A) shall be -
(i) in the case of Saturday, the preceding day, and
(ii) in the case of Sunday, the following day.
(C) Taxpayers not required to use electronic funds transfer
In the case of deposits not required to be made by electronic
funds transfer, subparagraphs (A) and (B) shall be applied by
substituting "September 10" for "September 11" and "September
28" for "September 29".
(f) Time for deposit of certain excise taxes
(1) General rule
Except as otherwise provided in this subsection and subsection
(e), if any person is required under regulations to make deposits
of taxes under subtitle D with respect to semimonthly periods,
such person shall make deposits of such taxes for the period
beginning on September 16 and ending on September 26 not later
than September 29. In the case of taxes imposed by sections 4261
and 4271, this paragraph shall not apply to periods before
January 1, 1997.
(2) Taxes on ozone depleting chemicals
If any person is required under regulations to make deposits of
taxes under subchapter D of chapter 38 with respect to
semimonthly periods, in lieu of paragraph (1), such person shall
make deposits of such taxes for -
(A) the second semimonthly period in August, and
(B) the period beginning on September 1 and ending on
September 11,
not later than September 29.
(3) Taxpayers not required to use electronic funds transfer
In the case of deposits not required to be made by electronic
funds transfer, paragraphs (1) and (2) shall be applied by
substituting "September 25" for "September 26", "September 10"
for "September 11", and "September 28" for "September 29".
(4) Special rule where due date on Saturday or Sunday
If, but for this paragraph, the due date under paragraph (1),
(2), or (3) would fall on a Saturday or Sunday, such due date
shall be deemed to be -
(A) in the case of Saturday, the preceding day, and
(B) in the case of Sunday, the following day.
(g) Deposits of social security taxes and withheld income taxes
If, under regulations prescribed by the Secretary, a person is
required to make deposits of taxes imposed by chapters 21, 22, and
24 on the basis of eighth-month periods, such person shall make
deposits of such taxes on the 1st banking day after any day on
which such person has $100,000 or more of such taxes for deposit.
(h) Use of electronic fund transfer system for collection of
certain taxes
(1) Establishment of system
(A) In general
The Secretary shall prescribe such regulations as may be
necessary for the development and implementation of an
electronic fund transfer system which is required to be used
for the collection of depository taxes. Such system shall be
designed in such manner as may be necessary to ensure that such
taxes are credited to the general account of the Treasury on
the date on which such taxes would otherwise have been required
to be deposited under the Federal tax deposit system.
(B) Exemptions
The regulations prescribed under subparagraph (A) may contain
such exemptions as the Secretary may deem appropriate.
(2) Phase-in requirements
(A) In general
Except as provided in subparagraph (B), the regulations
referred to in paragraph (1) -
(i) shall contain appropriate procedures to assure that an
orderly conversion from the Federal tax deposit system to the
electronic fund transfer system is accomplished, and
(ii) may provide for a phase-in of such electronic fund
transfer system by classes of taxpayers based on the
aggregate undeposited taxes of such taxpayers at the close of
specified periods and any other factors the Secretary may
deem appropriate.
(B) Phase-in requirements
The phase-in of the electronic fund transfer system shall be
designed in such manner as may be necessary to ensure that -
(i) during each fiscal year beginning after September 30,
1993, at least the applicable required percentage of the
total depository taxes imposed by chapters 21, 22, and 24
shall be collected by means of electronic fund transfer, and
(ii) during each fiscal year beginning after September 30,
1993, at least the applicable required percentage of the
total other depository taxes shall be collected by means of
electronic fund transfer.
(C) Applicable required percentage
(i) In the case of the depository taxes imposed by chapters
21, 22, and 24, the applicable required percentage is -
(I) 3 percent for fiscal year 1994,
(II) 16.9 percent for fiscal year 1995,
(III) 20.1 percent for fiscal year 1996,
(IV) 58.3 percent for fiscal years 1997 and 1998, and
(V) 94 percent for fiscal year 1999 and all fiscal years
thereafter.
(ii) In the case of other depository taxes, the applicable
required percentage is -
(I) 3 percent for fiscal year 1994,
(II) 20 percent for fiscal year 1995,
(III) 30 percent for fiscal year 1996,
(IV) 60 percent for fiscal years 1997 and 1998, and
(V) 94 percent for fiscal year 1999 and all fiscal years
thereafter.
(3) Definitions
For purposes of this subsection -
(A) Depository tax
The term "depository tax" means any tax if the Secretary is
authorized to require deposits of such tax.
(B) Electronic fund transfer
The term "electronic fund transfer" means any transfer of
funds, other than a transaction originated by check, draft, or
similar paper instrument, which is initiated through an
electronic terminal, telephonic instrument, or computer or
magnetic tape so as to order, instruct, or authorize a
financial institution or other financial intermediary to debit
or credit an account.
(4) Coordination with other electronic fund transfer requirements
(A) Coordination with certain excise taxes
In determining whether the requirements of subparagraph (B)
of paragraph (2) are met, taxes required to be paid by
electronic fund transfer under sections 5061(e) and 5703(b)
shall be disregarded.
(B) Additional requirement
Under regulations, any tax required to be paid by electronic
fund transfer under section 5061(e) or 5703(b) shall be paid in
such a manner as to ensure that the requirements of the second
sentence of paragraph (1)(A) of this subsection are satisfied.
(i) Cross references
For treatment of earned income advance amounts as payment of
withholding and FICA taxes, see section 3507(d).
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 775; June 29, 1956, ch. 462,
title II, Sec. 206(b), 70 Stat. 391; Pub. L. 94-455, title XIX,
Sec. 1906(a)(17), (b)(13)(A), Oct. 4, 1976, 90 Stat. 1825, 1834;
Pub. L. 95-147, Sec. 3(a), Oct. 28, 1977, 91 Stat. 1228; Pub. L.
95-600, title I, Sec. 105(e), Nov. 6, 1978, 92 Stat. 2776; Pub. L.
96-223, title I, Sec. 101(c)(2), Apr. 2, 1980, 94 Stat. 250; Pub.
L. 98-369, div. A, title X, Sec. 1015(c), July 18, 1984, 98 Stat.
1018; Pub. L. 100-418, title I, Sec. 1941(b)(2)(G), Aug. 23, 1988,
102 Stat. 1323; Pub. L. 100-647, title VI, Sec. 6107(a), Nov. 10,
1988, 102 Stat. 3712; Pub. L. 101-239, title VII, Secs. 7502(a),
7507(a), 7632(a), Dec. 19, 1989, 103 Stat. 2362, 2369, 2379; Pub.
L. 101-508, title XI, Secs. 11217(b)(1), 11334(a), 11801(c)(22)(A),
Nov. 5, 1990, 104 Stat. 1388-437, 1388-470, 1388-528; Pub. L.
103-66, title XIII, Sec. 13242(d)(15), Aug. 10, 1993, 107 Stat.
524; Pub. L. 103-182, title V, Sec. 523(a), Dec. 8, 1993, 107 Stat.
2161; Pub. L. 103-465, title VII, Sec. 712(a), (d), Dec. 8, 1994,
108 Stat. 4999, 5001; Pub. L. 104-188, title I, Secs. 1702(c)(3),
1704(t)(52), Aug. 20, 1996, 110 Stat. 1869, 1890.)
-MISC1-
AMENDMENTS
1996 - Subsec. (b). Pub. L. 104-188, Sec. 1704(t)(52), provided
that section 11801(c)(22)(A) of Pub. L. 101-508 shall be applied as
if "chapters 21" appeared instead of "chapter 21" in the material
to be stricken. See 1990 Amendment note below.
Subsec. (g). Pub. L. 104-188, Sec. 1702(c)(3), inserted ", 22,"
after "chapters 21".
1994 - Subsec. (e). Pub. L. 103-465, Sec. 712(d), reenacted
heading without change and amended text generally. Prior to
amendment, text read as follows: "If, under regulations prescribed
by the Secretary, a person is required to make deposits of any tax
imposed by section 4251 or subsection (a) or (b) of section 4261
with respect to amounts considered collected by such person during
any semimonthly period, such deposit shall be made not later than
the 3rd day (not including Saturdays, Sundays, or legal holidays)
after the close of the 1st week of the 2nd semimonthly period
following the period to which such amounts relate."
Subsec. (f). Pub. L. 103-465, Sec. 712(a), substituted "certain
excise taxes" for "taxes on gasoline and diesel fuel" in heading
and amended text generally. Prior to amendment, text read as
follows:
"(1) General rule. - Notwithstanding section 518 of the Highway
Revenue Act of 1982, any person whose liability for tax under
section 4081 is payable with respect to semimonthly periods shall,
not later than September 27, make deposits of such tax for the
period beginning on September 16 and ending on September 22.
"(2) Special rule where due date falls on saturday, sunday, or
holiday. - If, but for this paragraph, the due date under paragraph
(1) would fall on a Saturday, Sunday, or holiday in the District of
Columbia, such due date shall be deemed to be the immediately
preceding day which is not a Saturday, Sunday, or such a holiday."
1993 - Subsec. (f). Pub. L. 103-66 inserted "and diesel fuel"
after "gasoline" in heading.
Subsecs. (h), (i). Pub. L. 103-182 added subsec. (h) and
redesignated former subsec. (h) as (i).
1990 - Subsec. (b). Pub. L. 101-508, Sec. 11801(c)(22)(A), which
directed the substitution of "chapter 21, 31, 32, or 33, or by
section 4481" for "chapter 21" and all that follows down through
"chapter 37,", was executed by making the substitution for
"chapters 21, 31, 32, 33, section 4481 of chapter 36, section
4501(a) of chapter 37" to reflect the probable intent of Congress.
See 1996 Amendment note above.
Subsec. (e). Pub. L. 101-508, Sec. 11217(b)(1), inserted
"communications services and" before "airline" in heading and
"section 4251 or" after "imposed by" in text.
Subsec. (g). Pub. L. 101-508, Sec. 11334(a), amended subsec. (g)
generally, striking out par. (1) designation and striking heading,
striking out ", for the years specified in paragraph (2)," after
"such person shall", substituting "on the 1st banking day" for "on
the applicable banking day", and striking out par. (2), which
provided that for purposes of par. (1) the applicable banking day
for 1990 is the 1st, for 1991 the 2nd, for 1992 the 3rd, for 1993
the 1st, and for 1994 the 1st.
1989 - Subsec. (e). Pub. L. 101-239, Sec. 7502(a), added subsec.
(e). Former subsec. (e) redesignated (f).
Subsec. (f). Pub. L. 101-239, Sec. 7507(a), added subsec. (f).
Former subsec. (f) redesignated (g).
Pub. L. 101-239, Sec. 7502(a), redesignated former subsec. (e) as
(f).
Subsec. (g). Pub. L. 101-239, Sec. 7632(a), added subsec. (g).
Former subsec. (g) redesignated (h).
Pub. L. 101-239, Sec. 7507(a), redesignated former subsec. (f) as
(g).
Subsec. (h). Pub. L. 101-239, Sec. 7632(a), redesignated former
subsec. (g) as (h).
1988 - Subsec. (d). Pub. L. 100-647 substituted "Time for payment
of manufacturers' excise tax on sporting goods" for "Time for
payment of manufacturers excise tax on sport fishing equipment" in
heading and amended text generally. Prior to amendment, subsec. (d)
read as follows: "The tax imposed by section 4161(a) (relating to
manufacturers excise tax on sport fishing equipment) shall be due
and payable on the date for filing the return for such tax."
Subsec. (e). Pub. L. 100-418 substituted "For" for "(1) For" and
struck out par. (2) which read as follows: "For depositary
requirements applicable to the windfall profit tax imposed by
section 4986, see section 4995(b)."
1984 - Subsecs. (d), (e). Pub. L. 98-369 added subsec. (d) and
redesignated former subsec. (d) as (e).
1980 - Subsec. (d). Pub. L. 96-223 designated existing cross
reference as par. (1), substituted "For treatment of earned income
advance amounts" for "For treatment of payment of earned income
advance amounts", and added par. (2).
1978 - Subsec. (d). Pub. L. 95-600 added subsec. (d).
1977 - Subsec. (c). Pub. L. 95-147 substituted ", trust
companies, domestic building and loan associations, or credit
unions" for "or trust companies" and ", trust companies, domestic
building and loan associations, and credit unions" for "and trust
companies".
1976 - Subsec. (a). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck
out "or his delegate" after "Secretary".
Subsec. (b). Pub. L. 94-455, Sec. 1906(a)(17), (b)(13)(A),
substituted "section 4501(a) of chapter 37" for "sections 4501(a)
or 4511 of chapter 37, or section 4701 or 4721 of chapter 39" and
struck out "or his delegate" after "Secretary".
Subsec. (c). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck out "or
his delegate" after "Secretary" wherever appearing.
1956 - Subsec. (b). Act June 29, 1956, inserted reference to
section 4481 of chapter 36.
EFFECTIVE DATE OF 1996 AMENDMENT
Amendment by section 1702(c)(3) of Pub. L. 104-188 effective,
except as otherwise expressly provided, as if included in the
provision of the Revenue Reconciliation Act of 1990, Pub. L.
101-508, title XI, to which such amendment relates, see section
1702(i) of Pub. L. 104-188, set out as a note under section 38 of
this title.
EFFECTIVE DATE OF 1994 AMENDMENT
Amendment by Pub. L. 103-465 effective Jan. 1, 1995, see section
712(e) of Pub. L. 103-465, set out as a note under section 5061 of
this title.
EFFECTIVE DATE OF 1993 AMENDMENTS
Section 523(b)(1) of Pub. L. 103-182 provided that: "The
amendments made by this section [amending this section] shall take
effect on the date the Agreement [North American Free Trade
Agreement] enters into force with respect to the United States
[Jan. 1, 1994]."
Amendment by Pub. L. 103-66 effective Jan. 1, 1994, see section
13242(e) of Pub. L. 103-66, set out as a note under section 4041 of
this title.
EFFECTIVE DATE OF 1990 AMENDMENT
Section 11217(b)(2) of Pub. L. 101-508 provided that: "The
amendment made by paragraph (1) [amending this section] shall apply
to payments of taxes considered collected during semimonthly
periods beginning after December 31, 1990."
Section 11334(c) of Pub. L. 101-508 provided that: "The
amendments made by this section [amending this section and
provisions set out below] shall apply to amounts required to be
deposited after December 31, 1990."
EFFECTIVE DATE OF 1989 AMENDMENT
Section 7502(b) of Pub. L. 101-239 provided that: "The amendment
made by subsection (a) [amending this section] shall apply to
payments of taxes considered collected for semimonthly periods
beginning after June 30, 1990."
Section 7507(b) of Pub. L. 101-239 provided that: "The amendment
made by subsection (a) [amending this section] shall apply to
payments of taxes for tax periods beginning after December 31,
1989."
Section 7632(b) of Pub. L. 101-239, as amended by Pub. L.
101-508, title XI, Sec. 11334(b), Nov. 5, 1990, 104 Stat. 1388-470,
provided that:
"(1) General rule. - Except as provided in paragraph (2), the
amendment made by subsection (a) [amending this section] shall
apply to amounts required to be deposited after July 31, 1990.
"[(2) Repealed. Pub. L. 101-508, title XI, Sec. 11334(b), Nov. 5,
1990, 104 Stat. 1388-470.]"
EFFECTIVE DATE OF 1988 AMENDMENTS
Section 6107(b) of Pub. L. 100-647 provided that: "The amendment
made by subsection (a) [amending this section] shall apply with
respect to articles sold by the manufacturer, producer, or importer
after December 31, 1988."
Amendment by Pub. L. 100-418 applicable to crude oil removed from
the premises on or after Aug. 23, 1988, see section 1941(c) of Pub.
L. 100-418, set out as a note under section 164 of this title.
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by Pub. L. 98-369 applicable with respect to articles
sold by manufacturer, producer, or importer after Sept. 30, 1984,
see section 1015(e) of Pub. L. 98-369, set out as an Effective Date
note under section 4162 of this title.
EFFECTIVE DATE OF 1980 AMENDMENT
Amendment by Pub. L. 96-223 applicable to periods after Feb. 29,
1980, see section 101(i) of Pub. L. 96-223, set out as a note under
section 6161 of this title.
EFFECTIVE DATE OF 1978 AMENDMENT
Amendment by Pub. L. 95-600 effective with respect to
remuneration paid after June 30, 1979, see section 105(g)(2) of
Pub. L. 95-600, set out as an Effective Date note under section
3507 of this title.
EFFECTIVE DATE OF 1977 AMENDMENT
Section 3(c) of Pub. L. 95-147 provided that: "The amendments
made by this section [amending this section and section 7502 of
this title] shall apply to amounts deposited after the date of the
enactment of this Act [Oct. 28, 1977]."
REGULATIONS
Section 523(b)(2) of Pub. L. 103-182 provided that: "Not later
than 210 days after the date of enactment of this Act [Dec. 8,
1993], the Secretary of the Treasury or his delegate shall
prescribe temporary regulations under section 6302(h) of the
Internal Revenue Code of 1986 (as added by this section)."
SAVINGS PROVISION
For provisions that nothing in amendment by section
11801(c)(22)(A) of 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 29 of this title.
DELAYED DEPOSITS OF HIGHWAY MOTOR FUEL TAX REVENUES
Pub. L. 105-34, title IX, Sec. 901(e), Aug. 5, 1997, 111 Stat.
872, provided that: "Notwithstanding section 6302 of the Internal
Revenue Code of 1986, in the case of deposits of taxes imposed by
sections 4041 and 4081 (other than subsection (a)(2)(A)(ii)) of the
Internal Revenue Code of 1986, the due date for any deposit which
would (but for this subsection) be required to be made after July
31, 1998, and before October 1, 1998, shall be October 5, 1998."
WAIVER OF PENALTY THROUGH JUNE 30, 1998, ON SMALL BUSINESSES
FAILING TO MAKE ELECTRONIC FUND TRANSFERS OF TAXES
Pub. L. 105-34, title IX, Sec. 931, Aug. 5, 1997, 111 Stat. 881,
provided that: "No penalty shall be imposed under the Internal
Revenue Code of 1986 solely by reason of a failure by a person to
use the electronic fund transfer system established under section
6302(h) of such Code if -
"(1) such person is a member of a class of taxpayers first
required to use such system on or after July 1, 1997, and
"(2) such failure occurs before July 1, 1998."
DELAYED DEPOSITS OF AIRPORT TRUST FUND TAX REVENUES
Pub. L. 105-34, title X, Sec. 1031(g), Aug. 5, 1997, 111 Stat.
933, provided that: "Notwithstanding section 6302 of the Internal
Revenue Code of 1986 -
"(1) in the case of deposits of taxes imposed by section 4261
of such Code, the due date for any such deposit which would (but
for this subsection) be required to be made after August 14,
1997, and before October 1, 1997, shall be October 10, 1997,
"(2) in the case of deposits of taxes imposed by section 4261
of such Code, the due date for any such deposit which would (but
for this subsection) be required to be made after August 14,
1998, and before October 1, 1998, shall be October 5, 1998, and
"(3) in the case of deposits of taxes imposed by sections
4081(a)(2)(A)(ii), 4091, and 4271 of such Code, the due date for
any such deposit which would (but for this subsection) be
required to be made after July 31, 1998, and before October 1,
1998, shall be October 5, 1998."
DELAY OF ELECTRONIC FUND TRANSFER REQUIREMENT
Section 1809 of Pub. L. 104-188 provided that: "Notwithstanding
any other provision of law, the increase in the applicable required
percentages for fiscal year 1997 in clauses (i)(IV) and (ii)(IV) of
section 6302(h)(2)(C) of the Internal Revenue Code of 1986 shall
not take effect before July 1, 1997."
DEPOSITARY SCHEDULES
Pub. L. 98-76, title II, Sec. 226, Aug. 12, 1983, 97 Stat. 426,
as amended by Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat.
2095, provided that: "Effective on and after January 1, 1984, the
times for making payments prescribed under section 6302 of the
Internal Revenue Code of 1986 [formerly I.R.C. 1954] with respect
to the taxes imposed by chapter 22 of such Code shall be the same
as the times prescribed under such section which apply to the taxes
imposed by chapters 21 and 24 of such Code."
Pub. L. 98-76, title II, Sec. 227(c), Aug. 12, 1983, 97 Stat.
426, provided that: "Section 226 [set out above] shall take effect
on January 1, 1984."
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 6656, 6802, 7502, 7652 of
this title.
-End-
-CITE-
26 USC Sec. 6303 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 64 - COLLECTION
Subchapter A - General Provisions
-HEAD-
Sec. 6303. Notice and demand for tax
-STATUTE-
(a) General rule
Where it is not otherwise provided by this title, the Secretary
shall, as soon as practicable, and within 60 days, after the making
of an assessment of a tax pursuant to section 6203, give notice to
each person liable for the unpaid tax, stating the amount and
demanding payment thereof. Such notice shall be left at the
dwelling or usual place of business of such person, or shall be
sent by mail to such person's last known address.
(b) Assessment prior to last date for payment
Except where the Secretary believes collection would be
jeopardized by delay, if any tax is assessed prior to the last date
prescribed for payment of such tax, payment of such tax shall not
be demanded under subsection (a) until after such date.
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 775; Pub. L. 94-455, title XIX,
Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.)
-MISC1-
AMENDMENTS
1976 - Pub. L. 94-455 struck out "or his delegate" after
"Secretary" wherever appearing.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 6305, 6656, 7522 of this
title.
-End-
-CITE-
26 USC Sec. 6304 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 64 - COLLECTION
Subchapter A - General Provisions
-HEAD-
Sec. 6304. Fair tax collection practices
-STATUTE-
(a) Communication with the taxpayer
Without the prior consent of the taxpayer given directly to the
Secretary or the express permission of a court of competent
jurisdiction, the Secretary may not communicate with a taxpayer in
connection with the collection of any unpaid tax -
(1) at any unusual time or place or a time or place known or
which should be known to be inconvenient to the taxpayer;
(2) if the Secretary knows the taxpayer is represented by any
person authorized to practice before the Internal Revenue Service
with respect to such unpaid tax and has knowledge of, or can
readily ascertain, such person's name and address, unless such
person fails to respond within a reasonable period of time to a
communication from the Secretary or unless such person consents
to direct communication with the taxpayer; or
(3) at the taxpayer's place of employment if the Secretary
knows or has reason to know that the taxpayer's employer
prohibits the taxpayer from receiving such communication.
In the absence of knowledge of circumstances to the contrary, the
Secretary shall assume that the convenient time for communicating
with a taxpayer is after 8 a.m. and before 9 p.m., local time at
the taxpayer's location.
(b) Prohibition of harassment and abuse
The Secretary may not engage in any conduct the natural
consequence of which is to harass, oppress, or abuse any person in
connection with the collection of any unpaid tax. Without limiting
the general application of the foregoing, the following conduct is
a violation of this subsection:
(1) The use or threat of use of violence or other criminal
means to harm the physical person, reputation, or property of any
person.
(2) The use of obscene or profane language or language the
natural consequence of which is to abuse the hearer or reader.
(3) Causing a telephone to ring or engaging any person in
telephone conversation repeatedly or continuously with intent to
annoy, abuse, or harass any person at the called number.
(4) Except as provided under rules similar to the rules in
section 804 of the Fair Debt Collection Practices Act (15 U.S.C.
1692b), the placement of telephone calls without meaningful
disclosure of the caller's identity.
(c) Civil action for violations of section
For civil action for violations of this section, see section
7433.
-SOURCE-
(Added Pub. L. 105-206, title III, Sec. 3466(a), July 22, 1998, 112
Stat. 768.)
-MISC1-
PRIOR PROVISIONS
A prior section 6304, act Aug. 16, 1954, ch. 736, 68A Stat. 776,
related to a cross reference to sections 4504 and 4601 for
collection under the Tariff Act of 1930, prior to repeal by Pub. L.
94-455, title XIX, Sec. 1906(a)(18), (d)(1), Oct. 4, 1976, 90 Stat.
1825, 1835, effective on first day of first month which begins more
than 90 days after Oct. 4, 1976.
EFFECTIVE DATE
Pub. L. 105-206, title III, Sec. 3466(c), July 22, 1998, 112
Stat. 769, provided that: "The amendments made by this section
[enacting this section] shall take effect on the date of the
enactment of this Act [July 22, 1998]."
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section 7803 of this title.
-End-
-CITE-
26 USC Sec. 6305 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 64 - COLLECTION
Subchapter A - General Provisions
-HEAD-
Sec. 6305. Collection of certain liability
-STATUTE-
(a) In general
Upon receiving a certification from the Secretary of Health and
Human Services, under section 452(b) of the Social Security Act
with respect to any individual, the Secretary shall assess and
collect the amount certified by the Secretary of Health and Human
Services, in the same manner, with the same powers, and (except as
provided in this section) subject to the same limitations as if
such amount were a tax imposed by subtitle C the collection of
which would be jeopardized by delay, except that -
(1) no interest or penalties shall be assessed or collected,
(2) for such purposes, paragraphs (4), (6), and (8) of section
6334(a) (relating to property exempt from levy) shall not apply,
(3) there shall be exempt from levy so much of the salary,
wages, or other income of an individual as is being withheld
therefrom in garnishment pursuant to a judgment entered by a
court of competent jurisdiction for the support of his minor
children,
(4) in the case of the first assessment against an individual
for delinquency under a court or administrative order against
such individual for a particular person or persons, the
collection shall be stayed for a period of 60 days immediately
following notice and demand as described in section 6303, and
(5) no additional fee may be assessed for adjustments to an
amount previously certified pursuant to such section 452(b) with
respect to the same obligor.
(b) Review of assessments and collections
No court of the United States, whether established under article
I or article III of the Constitution, shall have jurisdiction of
any action, whether legal or equitable, brought to restrain or
review the assessment and collection of amounts by the Secretary
under subsection (a), nor shall any such assessment and collection
be subject to review by the Secretary in any proceeding. This
subsection does not preclude any legal, equitable, or
administrative action against the State by an individual in any
State court or before any State agency to determine his liability
for any amount assessed against him and collected, or to recover
any such amount collected from him, under this section.
-SOURCE-
(Added Pub. L. 93-647, Sec. 101(b)(1), Jan. 4, 1975, 88 Stat. 2358;
amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4,
1976, 90 Stat. 1834; Pub. L. 97-35, title XXIII, Sec. 2332(g), Aug.
13, 1981, 95 Stat. 862; Pub. L. 104-193, title III, Sec. 361(a),
Aug. 22, 1996, 110 Stat. 2242.)
-REFTEXT-
REFERENCES IN TEXT
Section 452(b) of the Social Security Act, referred to in subsec.
(a), is classified to section 652(b) of Title 42, The Public Health
and Welfare.
-MISC1-
AMENDMENTS
1996 - Subsec. (a). Pub. L. 104-193, Sec. 361(a)(4), substituted
"Secretary of Health and Human Services" for "Secretary of Health,
Education, and Welfare" in two places in introductory provisions.
Subsec. (a)(5). Pub. L. 104-193, Sec. 361(a)(1)-(3), added par.
(5).
1981 - Subsec. (a)(4). Pub. L. 97-35 inserted reference to
administrative order.
1976 - Subsecs. (a), (b). Pub. L. 94-455 struck out "or his
delegate" after "Secretary" wherever appearing.
EFFECTIVE DATE OF 1996 AMENDMENT
Section 361(b) of Pub. L. 104-193 provided that: "The amendments
made by this section [amending this section] shall become effective
October 1, 1997."
For provisions relating to effective date of title III of Pub. L.
104-193, see section 395(a)-(c) of Pub. L. 104-193, set out as a
note under section 654 of Title 42, The Public Health and Welfare.
EFFECTIVE DATE OF 1981 AMENDMENT
Amendment by Pub. L. 97-35 effective, except as otherwise
specifically provided, on Oct. 1, 1981, see section 2336 of Pub. L.
97-35, set out as a note under section 651 of Title 42, The Public
Health and Welfare.
EFFECTIVE DATE
Section effective Aug. 1, 1975, see section 101(f) of Pub. L.
93-647, set out as a note under section 651 of Title 42, the Public
Health and Welfare.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in title 42 section 652.
-End-
-CITE-
26 USC Subchapter B - Receipt of Payment 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 64 - COLLECTION
Subchapter B - Receipt of Payment
-HEAD-
SUBCHAPTER B - RECEIPT OF PAYMENT
-MISC1-
Sec.
6311. Payment of tax by commercially acceptable means.
[6312. Repealed.]
6313. Fractional parts of a cent.
6314. Receipt for taxes.
6315. Payments of estimated income tax.
6316. Payment by foreign currency.
6317. Payments of Federal unemployment tax for calendar
quarter.
AMENDMENTS
1997 - Pub. L. 105-34, title XII, Sec. 1205(b), Aug. 5, 1997, 111
Stat. 998, substituted "Payment of tax by commercially acceptable
means" for "Payment by check or money order" in item 6311.
1971 - Pub. L. 92-5, title I, Sec. 4(a)(2), Mar. 17, 1971, 85
Stat. 5, struck out item 6312 "Payment by United States notes and
certificates of indebtedness".
1969 - Pub. L. 91-53, Sec. 2(f)(2), Aug. 7, 1969, 83 Stat. 93,
added item 6317.
REPEALS
Pub. L. 92-5, title I, Sec. 4(a)(2), Mar. 17, 1971, 85 Stat. 5,
which struck out item 6312, was repealed by Pub. L. 97-258, Sec.
5(b), Sept. 13, 1982, 96 Stat. 1068, 1081.
-End-
-CITE-
26 USC Sec. 6311 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 64 - COLLECTION
Subchapter B - Receipt of Payment
-HEAD-
Sec. 6311. Payment of tax by commercially acceptable means
-STATUTE-
(a) Authority to receive
It shall be lawful for the Secretary to receive for internal
revenue taxes (or in payment for internal revenue stamps) any
commercially acceptable means that the Secretary deems appropriate
to the extent and under the conditions provided in regulations
prescribed by the Secretary.
(b) Ultimate liability
If a check, money order, or other method of payment, including
payment by credit card, debit card, or charge card so received is
not duly paid, or is paid and subsequently charged back to the
Secretary, the person by whom such check, or money order, or other
method of payment has been tendered shall remain liable for the
payment of the tax or for the stamps, and for all legal penalties
and additions, to the same extent as if such check, money order, or
other method of payment had not been tendered.
(c) Liability of banks and others
If any certified, treasurer's, or cashier's check (or other
guaranteed draft), or any money order, or any other means of
payment that has been guaranteed by a financial institution (such
as a credit card, debit card, or charge card transaction which has
been guaranteed expressly by a financial institution) so received
is not duly paid, the United States shall, in addition to its right
to exact payment from the party originally indebted therefor, have
a lien for -
(1) the amount of such check (or draft) upon all assets of the
financial institution on which drawn,
(2) the amount of such money order upon all the assets of the
issuer thereof, or
(3) the guaranteed amount of any other transaction upon all the
assets of the institution making such guarantee,
and such amount shall be paid out of such assets in preference to
any other claims whatsoever against such financial institution,
issuer, or guaranteeing institution, except the necessary costs and
expenses of administration and the reimbursement of the United
States for the amount expended in the redemption of the circulating
notes of such financial institution.
(d) Payment by other means
(1) Authority to prescribe regulations
The Secretary shall prescribe such regulations as the Secretary
deems necessary to receive payment by commercially acceptable
means, including regulations that -
(A) specify which methods of payment by commercially
acceptable means will be acceptable,
(B) specify when payment by such means will be considered
received,
(C) identify types of nontax matters related to payment by
such means that are to be resolved by persons ultimately liable
for payment and financial intermediaries, without the
involvement of the Secretary, and
(D) ensure that tax matters will be resolved by the
Secretary, without the involvement of financial intermediaries.
(2) Authority to enter into contracts
Notwithstanding section 3718(f) of title 31, United States
Code, the Secretary is authorized to enter into contracts to
obtain services related to receiving payment by other means where
cost beneficial to the Government. The Secretary may not pay any
fee or provide any other consideration under any such contract
for the use of credit, debit, or charge cards for the payment of
taxes imposed by subtitle A.
(3) Special provisions for use of credit cards
If use of credit cards is accepted as a method of payment of
taxes pursuant to subsection (a) -
(A) a payment of internal revenue taxes (or a payment for
internal revenue stamps) by a person by use of a credit card
shall not be subject to section 161 of the Truth in Lending Act
(15 U.S.C. 1666), or to any similar provisions of State law, if
the error alleged by the person is an error relating to the
underlying tax liability, rather than an error relating to the
credit card account such as a computational error or numerical
transposition in the credit card transaction or an issue as to
whether the person authorized payment by use of the credit
card,
(B) a payment of internal revenue taxes (or a payment for
internal revenue stamps) shall not be subject to section 170 of
the Truth in Lending Act (15 U.S.C. 1666i), or to any similar
provisions of State law,
(C) a payment of internal revenue taxes (or a payment for
internal revenue stamps) by a person by use of a debit card
shall not be subject to section 908 of the Electronic Fund
Transfer Act (15 U.S.C. 1693f), or to any similar provisions of
State law, if the error alleged by the person is an error
relating to the underlying tax liability, rather than an error
relating to the debit card account such as a computational
error or numerical transposition in the debit card transaction
or an issue as to whether the person authorized payment by use
of the debit card,
(D) the term "creditor" under section 103(f) of the Truth in
Lending Act (15 U.S.C. 1602(f)) shall not include the Secretary
with respect to credit card transactions in payment of internal
revenue taxes (or payment for internal revenue stamps), and
(E) notwithstanding any other provision of law to the
contrary, in the case of payment made by credit card or debit
card transaction of an amount owed to a person as the result of
the correction of an error under section 161 of the Truth in
Lending Act (15 U.S.C. 1666) or section 908 of the Electronic
Fund Transfer Act (15 U.S.C. 1693f), the Secretary is
authorized to provide such amount to such person as a credit to
that person's credit card or debit card account through the
applicable credit card or debit card system.
(e) Confidentiality of information
(1) In general
Except as otherwise authorized by this subsection, no person
may use or disclose any information relating to credit or debit
card transactions obtained pursuant to section 6103(k)(9) other
than for purposes directly related to the processing of such
transactions, or the billing or collection of amounts charged or
debited pursuant thereto.
(2) Exceptions
(A) Debit or credit card issuers or others acting on behalf of
such issuers may also use and disclose such information for
purposes directly related to servicing an issuer's accounts.
(B) Debit or credit card issuers or others directly involved in
the processing of credit or debit card transactions or the
billing or collection of amounts charged or debited thereto may
also use and disclose such information for purposes directly
related to -
(i) statistical risk and profitability assessment;
(ii) transferring receivables, accounts, or interest therein;
(iii) auditing the account information;
(iv) complying with Federal, State, or local law; and
(v) properly authorized civil, criminal, or regulatory
investigation by Federal, State, or local authorities.
(3) Procedures
Use and disclosure of information under this paragraph shall be
made only to the extent authorized by written procedures
promulgated by the Secretary.
(4) Cross reference
For provision providing for civil damages for violation of
paragraph (1), see section 7431.
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 777; Pub. L. 94-455, title XIX,
Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 98-369,
div. A, title IV, Sec. 448(a), July 18, 1984, 98 Stat. 817; Pub. L.
105-34, title XII, Sec. 1205(a), Aug. 5, 1997, 111 Stat. 995; Pub.
L. 105-206, title VI, Sec. 6012(b)(1), July 22, 1998, 112 Stat.
819; Pub. L. 105-277, div. J, title IV, Sec. 4003(k), Oct. 21,
1998, 112 Stat. 2681-910.)
-MISC1-
AMENDMENTS
1998 - Subsec. (d)(2). Pub. L. 105-277 substituted "under any
such contract for the use of credit, debit, or charge cards for the
payment of taxes imposed by subtitle A" for "under such contracts".
Subsec. (e)(1). Pub. L. 105-206 substituted "section 6103(k)(9)"
for "section 6103(k)(8)".
1997 - Pub. L. 105-34 amended section catchline and text
generally, substituting provisions relating to payment of tax by
commercially acceptable means for provisions consisting of subsecs.
(a) and (b) relating to payment by check or money order and
liability if a check or money order received is not duly paid.
1984 - Subsec. (b)(2). Pub. L. 98-369 substituted "or cashier's
check (or other guaranteed draft)" for "or cashier's check", "the
amount of such check (or draft)" for "the amount of such check",
and "the financial institution" for "the bank or trust company",
and substituted "such financial institution" for "such bank" in two
places.
1976 - Subsec. (a). Pub. L. 94-455 struck out "or his delegate"
after "Secretary" wherever appearing.
EFFECTIVE DATE OF 1998 AMENDMENTS
Amendment by Pub. L. 105-277 effective as if included in the
provision of the Taxpayer Relief Act of 1997, Pub. L. 105-34, to
which such amendment relates, see section 4003(l) of Pub. L.
105-277, set out as a note under section 86 of this title.
Amendment by Pub. L. 105-206 effective, except as otherwise
provided, as if included in the provisions of the Taxpayer Relief
Act of 1997, Pub. L. 105-34, to which such amendment relates, see
section 6024 of Pub. L. 105-206, set out as a note under section 1
of this title.
EFFECTIVE DATE OF 1997 AMENDMENT
Amendment by Pub. L. 105-34 effective on the day 9 months after
Aug. 5, 1997, see section 1205(d) of Pub. L. 105-34, set out as a
note under section 6103 of this title.
EFFECTIVE DATE OF 1984 AMENDMENT
Section 448(b) of Pub. L. 98-369 provided that: "The amendments
made by subsection (a) [amending this section] shall take effect on
the date of the enactment of this Act [July 18, 1984]."
REGULATIONS
Pub. L. 105-206, title III, Sec. 3703, July 22, 1998, 112 Stat.
777, provided that: "The Secretary of the Treasury or the
Secretary's delegate shall establish such rules, regulations, and
procedures as are necessary to allow payment of taxes by check or
money order made payable to the United States Treasury."
REQUIRED NOTICE OF CERTAIN PAYMENTS
Pub. L. 104-168, title XII, Sec. 1202, July 30, 1996, 110 Stat.
1470, provided that: "If any payment is received by the Secretary
of the Treasury or his delegate from any taxpayer and the Secretary
cannot associate such payment with such taxpayer, the Secretary
shall make reasonable efforts to notify the taxpayer of such
inability within 60 days after the receipt of such payment."
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 6103, 6201, 7431 of this
title.
-End-
-CITE-
26 USC Sec. 6312 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 64 - COLLECTION
Subchapter B - Receipt of Payment
-HEAD-
[Sec. 6312. Repealed. Pub. L. 92-5, title I, Sec. 4(a)(2), Mar. 17,
1971, 85 Stat. 5]
-MISC1-
Section, act Aug. 16, 1954, ch. 736, 68A Stat. 777, permitted the
Secretary to receive Treasury bills, notes and certificates of
indebtedness issued by the United States in payment of any internal
revenue taxes or stamps.
EFFECTIVE DATE OF REPEAL
Section 4(a) of Pub. L. 92-5 provided that the repeal of this
section is effective with respect to obligations issued after Mar.
3, 1971.
REPEALS
Pub. L. 92-5, title I, Sec. 4(a)(2), Mar. 17, 1971, 85 Stat. 5,
which repealed this section and provided for the effective date of
that repeal, was itself repealed by Pub. L. 97-258, Sec. 5(b),
Sept. 13, 1982, 96 Stat. 1068, 1081.
-End-
-CITE-
26 USC Sec. 6313 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 64 - COLLECTION
Subchapter B - Receipt of Payment
-HEAD-
Sec. 6313. Fractional parts of a cent
-STATUTE-
In the payment of any tax imposed by this title, a fractional
part of a cent shall be disregarded unless it amounts to one-half
cent or more, in which case it shall be increased to 1 cent.
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 778; Pub. L. 94-455, title XIX,
Sec. 1906(a)(19), Oct. 4, 1976, 90 Stat. 1825.)
-MISC1-
AMENDMENTS
1976 - Pub. L. 94-455 struck out "not payable by stamp" after
"title".
-End-
-CITE-
26 USC Sec. 6314 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 64 - COLLECTION
Subchapter B - Receipt of Payment
-HEAD-
Sec. 6314. Receipt for taxes
-STATUTE-
(a) General rule
The Secretary shall, upon request, give receipts for all sums
collected by him, excepting only when the same are in payment for
stamps sold and delivered; but no receipt shall be issued in lieu
of a stamp representing a tax.
(b) Duplicate receipts for payment of estate taxes
The Secretary shall, upon request, give to the person paying the
tax under chapter 11 (relating to the estate tax) duplicate
receipts, either of which shall be sufficient evidence of such
payment, and shall entitle the executor to be credited and allowed
the amount thereof by any court having jurisdiction to audit or
settle his accounts.
(c) Cross references
(1) For receipt required to be furnished by employer to
employee with respect to employment taxes, see section 6051.
(2) For receipt of discharge of fiduciary from personal
liability, see section 2204.
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 778; Pub. L. 91-614, title I,
Sec. 101(d)(2), Dec. 31, 1970, 84 Stat. 1837; Pub. L. 94-455, title
XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.)
-MISC1-
AMENDMENTS
1976 - Pub. L. 94-455 struck out "or his delegate" after
"Secretary" wherever appearing.
1970 - Subsec. (c)(2). Pub. L. 91-614 substituted "fiduciary" for
"executor".
EFFECTIVE DATE OF 1970 AMENDMENT
Amendment by Pub. L. 91-614 applicable with respect to decedents
dying after Dec. 31, 1970, see section 101(j) of Pub. L. 91-614,
set out as a note under section 2032 of this title.
-End-
-CITE-
26 USC Sec. 6315 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 64 - COLLECTION
Subchapter B - Receipt of Payment
-HEAD-
Sec. 6315. Payments of estimated income tax
-STATUTE-
Payment of the estimated income tax, or any installment thereof,
shall be considered payment on account of the income taxes imposed
by subtitle A for the taxable year.
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 778.)
-End-
-CITE-
26 USC Sec. 6316 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 64 - COLLECTION
Subchapter B - Receipt of Payment
-HEAD-
Sec. 6316. Payment by foreign currency
-STATUTE-
The Secretary is authorized in his discretion to allow payment of
taxes in the currency of a foreign country under such circumstances
and subject to such conditions as the Secretary may by regulations
prescribe.
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 778; Pub. L. 94-455, title XIX,
Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.)
-MISC1-
AMENDMENTS
1976 - Pub. L. 94-455 struck out "or his delegate" after
"Secretary" in two places.
-End-
-CITE-
26 USC Sec. 6317 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 64 - COLLECTION
Subchapter B - Receipt of Payment
-HEAD-
Sec. 6317. Payments of Federal unemployment tax for calendar
quarter
-STATUTE-
Payment of Federal unemployment tax for a calendar quarter or
other period within a calendar year pursuant to section 6157 shall
be considered payment on account of the tax imposed by chapter 23
of such calendar year.
-SOURCE-
(Added Pub. L. 91-53, Sec. 2(c), Aug. 7, 1969, 83 Stat. 92; amended
Pub. L. 98-76, title II, Sec. 231(b)(2)(B), Aug. 12, 1983, 97 Stat.
429; Pub. L. 100-647, title VII, Sec. 7106(c)(3), Nov. 10, 1988,
102 Stat. 3773.)
-MISC1-
AMENDMENTS
1988 - Pub. L. 100-647 struck out "or tax imposed by section
3321" after "unemployment tax" and "and 23A, as the case may be,"
after "chapter 23".
1983 - Pub. L. 98-76 inserted "or tax imposed by section 3321"
after "Federal unemployment tax", and substituted "chapter 23 and
23A, as the case may be," for "chapter 23".
EFFECTIVE DATE OF 1988 AMENDMENT
Amendment by Pub. L. 100-647 applicable to remuneration paid
after Dec. 31, 1988, see section 7106(d) of Pub. L. 100-647, set
out as a note under section 3321 of this title.
EFFECTIVE DATE OF 1983 AMENDMENT
Amendment by Pub. L. 98-76 applicable to remuneration paid after
June 30, 1986, see section 231(d) of Pub. L. 98-76, set out as an
Effective Date note under section 3321 of this title.
EFFECTIVE DATE
Section applicable with respect to calendar years beginning after
Dec. 31, 1969, see section 4(a) of Pub. L. 91-53, set out as a note
under section 6157 of this title.
-End-
-CITE-
26 USC Subchapter C - Lien for Taxes 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 64 - COLLECTION
Subchapter C - Lien for Taxes
-HEAD-
SUBCHAPTER C - LIEN FOR TAXES
-MISC1-
Part
I. Due process for liens.
II. Liens.
AMENDMENTS
1998 - Pub. L. 105-206, title III, Sec. 3401(a), July 22, 1998,
112 Stat. 746, added part analysis.
-SECREF-
SUBCHAPTER REFERRED TO IN OTHER SECTIONS
This subchapter is referred to in sections 2035, 6335 of this
title.
-End-
-CITE-
26 USC PART I - DUE PROCESS FOR LIENS 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 64 - COLLECTION
Subchapter C - Lien for Taxes
PART I - DUE PROCESS FOR LIENS
-HEAD-
PART I - DUE PROCESS FOR LIENS
-MISC1-
Sec.
6320. Notice and opportunity for hearing upon filing of
notice of lien.
AMENDMENTS
1998 - Pub. L. 105-206, title III, Sec. 3401(a), July 22, 1998,
112 Stat. 746, added part heading and analysis consisting of item
6320.
-End-
-CITE-
26 USC Sec. 6320 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 64 - COLLECTION
Subchapter C - Lien for Taxes
PART I - DUE PROCESS FOR LIENS
-HEAD-
Sec. 6320. Notice and opportunity for hearing upon filing of notice
of lien
-STATUTE-
(a) Requirement of notice
(1) In general
The Secretary shall notify in writing the person described in
section 6321 of the filing of a notice of lien under section
6323.
(2) Time and method for notice
The notice required under paragraph (1) shall be -
(A) given in person;
(B) left at the dwelling or usual place of business of such
person; or
(C) sent by certified or registered mail to such person's
last known address,
not more than 5 business days after the day of the filing of the
notice of lien.
(3) Information included with notice
The notice required under paragraph (1) shall include in simple
and nontechnical terms -
(A) the amount of unpaid tax;
(B) the right of the person to request a hearing during the
30-day period beginning on the day after the 5-day period
described in paragraph (2);
(C) the administrative appeals available to the taxpayer with
respect to such lien and the procedures relating to such
appeals; and
(D) the provisions of this title and procedures relating to
the release of liens on property.
(b) Right to fair hearing
(1) In general
If the person requests a hearing under subsection (a)(3)(B),
such hearing shall be held by the Internal Revenue Service Office
of Appeals.
(2) One hearing per period
A person shall be entitled to only one hearing under this
section with respect to the taxable period to which the unpaid
tax specified in subsection (a)(3)(A) relates.
(3) Impartial officer
The hearing under this subsection shall be conducted by an
officer or employee who has had no prior involvement with respect
to the unpaid tax specified in subsection (a)(3)(A) before the
first hearing under this section or section 6330. A taxpayer may
waive the requirement of this paragraph.
(4) Coordination with section 6330
To the extent practicable, a hearing under this section shall
be held in conjunction with a hearing under section 6330.
(c) Conduct of hearing; review; suspensions
For purposes of this section, subsections (c), (d) (other than
paragraph (2)(B) thereof), and (e) of section 6330 shall apply.
-SOURCE-
(Added Pub. L. 105-206, title III, Sec. 3401(a), July 22, 1998, 112
Stat. 746.)
-MISC1-
EFFECTIVE DATE
Pub. L. 105-206, title III, Sec. 3401(d), July 22, 1998, 112
Stat. 750, provided that: "The amendments made by this section
[enacting this section and section 6330 of this title and amending
section 7443A of this title] shall apply to collection actions
initiated after the date which is 180 days after the date of the
enactment of this Act [July 22, 1998]."
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 6330, 7443A, 7803 of this
title.
-End-
-CITE-
26 USC PART II - LIENS 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 64 - COLLECTION
Subchapter C - Lien for Taxes
PART II - LIENS
-HEAD-
PART II - LIENS
-MISC1-
Sec.
6321. Lien for taxes.
6322. Period of lien.
6323. Validity and priority against certain persons.
6324. Special liens for estate and gift taxes.
6324A. Special lien for estate tax deferred under section
6166.
6324B. Special lien for additional estate tax attributable to
farm, etc., valuation.
6325. Release of lien or discharge of property.
6326. Administrative appeal of liens.
6327. Cross references.
AMENDMENTS
1998 - Pub. L. 105-206, title III, Sec. 3401(a), July 22, 1998,
112 Stat. 747, added part heading.
1988 - Pub. L. 100-647, title VI, Sec. 6238(c), Nov. 10, 1988,
102 Stat. 3743, added item 6326 and redesignated former item 6326
as 6327.
1981 - Pub. L. 97-34, title IV, Sec. 422(e)(6)(D), Aug. 13, 1981,
95 Stat. 316, struck out "or 6166A" after "section 6166" in item
6324A.
1976 - Pub. L. 94-455, title XX, Secs. 2003(d)(2), 2004(f)(1),
Oct. 4, 1976, 90 Stat. 1862, 1871, added items 6324A and 6324B.
1966 - Pub. L. 89-719, title I, Secs. 101(b)(1), 103(b), Nov. 2,
1966, 80 Stat. 1131, 1135, substituted "Validity and priority
against certain persons" for "Validity against mortgagees,
pledgees, purchasers, and judgment creditors" in item 6323, and
struck out "partial" before "discharge" in item 6325.
-End-
-CITE-
26 USC Sec. 6321 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 64 - COLLECTION
Subchapter C - Lien for Taxes
PART II - LIENS
-HEAD-
Sec. 6321. Lien for taxes
-STATUTE-
If any person liable to pay any tax neglects or refuses to pay
the same after demand, the amount (including any interest,
additional amount, addition to tax, or assessable penalty, together
with any costs that may accrue in addition thereto) shall be a lien
in favor of the United States upon all property and rights to
property, whether real or personal, belonging to such person.
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 779.)
-MISC1-
SHORT TITLE
Pub. L. 89-719, Sec. 1(a), Nov. 2, 1966, 80 Stat. 1125, provided
that: "This Act [enacting sections 3505, 7425, 7426, and 7810 of
this title, amending sections 545, 6322 to 6325, 6331, 6332, 6334,
6335, 6337 to 6339, 6342, 6343, 6502, 6503, 6532, 7402, 7403, 7421,
7424, 7505, 7506, and 7809 of this title, sections 1346, 1402, and
2410 of Title 28, Judiciary and Judicial Procedure, and section
270a of former Title 40, Public Buildings, Property, and Works,
redesignating section 7425 as 7427 of this title, and enacting
provisions set out as notes under sections 6323 and 7424 of this
title, and under section 1346 of Title 28] may be cited as the
'Federal Tax Lien Act of 1966'."
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 6320, 6322, 6323, 6325 of
this title; title 29 section 1368; title 30 section 934.
-End-
-CITE-
26 USC Sec. 6322 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 64 - COLLECTION
Subchapter C - Lien for Taxes
PART II - LIENS
-HEAD-
Sec. 6322. Period of lien
-STATUTE-
Unless another date is specifically fixed by law, the lien
imposed by section 6321 shall arise at the time the assessment is
made and shall continue until the liability for the amount so
assessed (or a judgment against the taxpayer arising out of such
liability) is satisfied or becomes unenforceable by reason of lapse
of time.
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 779; Pub. L. 89-719, title I,
Sec. 113(a), Nov. 2, 1966, 80 Stat. 1146.)
-MISC1-
AMENDMENTS
1966 - Pub. L. 89-719 inserted "(or a judgment against the
taxpayer arising out of such liability)".
EFFECTIVE DATE OF 1966 AMENDMENT
Amendment by Pub. L. 89-719 applicable after Nov. 2, 1966,
regardless of when title or lien of United States arose or when
lien or interest of another person was acquired, with certain
exceptions, see section 114(a)-(c) of Pub. L. 89-719, set out as a
note under section 6323 of this title.
-End-
-CITE-
26 USC Sec. 6323 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 64 - COLLECTION
Subchapter C - Lien for Taxes
PART II - LIENS
-HEAD-
Sec. 6323. Validity and priority against certain persons
-STATUTE-
(a) Purchasers, holders of security interests, mechanic's lienors,
and judgment lien creditors
The lien imposed by section 6321 shall not be valid as against
any purchaser, holder of a security interest, mechanic's lienor, or
judgment lien creditor until notice thereof which meets the
requirements of subsection (f) has been filed by the Secretary.
(b) Protection for certain interests even though notice filed
Even though notice of a lien imposed by section 6321 has been
filed, such lien shall not be valid -
(1) Securities
With respect to a security (as defined in subsection (h)(4)) -
(A) as against a purchaser of such security who at the time
of purchase did not have actual notice or knowledge of the
existence of such lien; and
(B) as against a holder of a security interest in such
security who, at the time such interest came into existence,
did not have actual notice or knowledge of the existence of
such lien.
(2) Motor vehicles
With respect to a motor vehicle (as defined in subsection
(h)(3)), as against a purchaser of such motor vehicle, if -
(A) at the time of the purchase such purchaser did not have
actual notice or knowledge of the existence of such lien, and
(B) before the purchaser obtains such notice or knowledge, he
has acquired possession of such motor vehicle and has not
thereafter relinquished possession of such motor vehicle to the
seller or his agent.
(3) Personal property purchased at retail
With respect to tangible personal property purchased at retail,
as against a purchaser in the ordinary course of the seller's
trade or business, unless at the time of such purchase such
purchaser intends such purchase to (or knows such purchase will)
hinder, evade, or defeat the collection of any tax under this
title.
(4) Personal property purchased in casual sale
With respect to household goods, personal effects, or other
tangible personal property described in section 6334(a) purchased
(not for resale) in a casual sale for less than $1,000, as
against the purchaser, but only if such purchaser does not have
actual notice or knowledge (A) of the existence of such lien, or
(B) that this sale is one of a series of sales.
(5) Personal property subject to possessory lien
With respect to tangible personal property subject to a lien
under local law securing the reasonable price of the repair or
improvement of such property, as against a holder of such a lien,
if such holder is, and has been, continuously in possession of
such property from the time such lien arose.
(6) Real property tax and special assessment liens
With respect to real property, as against a holder of a lien
upon such property, if such lien is entitled under local law to
priority over security interests in such property which are prior
in time, and such lien secures payment of -
(A) a tax of general application levied by any taxing
authority based upon the value of such property;
(B) a special assessment imposed directly upon such property
by any taxing authority, if such assessment is imposed for the
purpose of defraying the cost of any public improvement; or
(C) charges for utilities or public services furnished to
such property by the United States, a State or political
subdivision thereof, or an instrumentality of any one or more
of the foregoing.
(7) Residential property subject to a mechanic's lien for certain
repairs and improvements
With respect to real property subject to a lien for repair or
improvement of a personal residence (containing not more than
four dwelling units) occupied by the owner of such residence, as
against a mechanic's lienor, but only if the contract price on
the contract with the owner is not more than $5,000.
(8) Attorneys' liens
With respect to a judgment or other amount in settlement of a
claim or of a cause of action, as against an attorney who, under
local law, holds a lien upon or a contract enforcible against
such judgment or amount, to the extent of his reasonable
compensation for obtaining such judgment or procuring such
settlement, except that this paragraph shall not apply to any
judgment or amount in settlement of a claim or of a cause of
action against the United States to the extent that the United
States offsets such judgment or amount against any liability of
the taxpayer to the United States.
(9) Certain insurance contracts
With respect to a life insurance, endowment, or annuity
contract, as against the organization which is the insurer under
such contract, at any time -
(A) before such organization had actual notice or knowledge
of the existence of such lien;
(B) after such organization had such notice or knowledge,
with respect to advances required to be made automatically to
maintain such contract in force under an agreement entered into
before such organization had such notice or knowledge; or
(C) after satisfaction of a levy pursuant to section 6332(b),
unless and until the Secretary delivers to such organization a
notice, executed after the date of such satisfaction, of the
existence of such lien.
(10) Deposit-secured loans
With respect to a savings deposit, share, or other account with
an institution described in section 581 or 591, to the extent of
any loan made by such institution without actual notice or
knowledge of the existence of such lien, as against such
institution, if such loan is secured by such account.
(c) Protection for certain commercial transactions financing
agreements, etc.
(1) In general
To the extent provided in this subsection, even though notice
of a lien imposed by section 6321 has been filed, such lien shall
not be valid with respect to a security interest which came into
existence after tax lien filing but which -
(A) is in qualified property covered by the terms of a
written agreement entered into before tax lien filing and
constituting -
(i) a commercial transactions financing agreement,
(ii) a real property construction or improvement financing
agreement, or
(iii) an obligatory disbursement agreement, and
(B) is protected under local law against a judgment lien
arising, as of the time of tax lien filing, out of an unsecured
obligation.
(2) Commercial transactions financing agreement
For purposes of this subsection -
(A) Definition
The term "commercial transactions financing agreement" means
an agreement (entered into by a person in the course of his
trade or business) -
(i) to make loans to the taxpayer to be secured by
commercial financing security acquired by the taxpayer in the
ordinary course of his trade or business, or
(ii) to purchase commercial financing security (other than
inventory) acquired by the taxpayer in the ordinary course of
his trade or business;
but such an agreement shall be treated as coming within the
term only to the extent that such loan or purchase is made
before the 46th day after the date of tax lien filing or (if
earlier) before the lender or purchaser had actual notice or
knowledge of such tax lien filing.
(B) Limitation on qualified property
The term "qualified property", when used with respect to a
commercial transactions financing agreement, includes only
commercial financing security acquired by the taxpayer before
the 46th day after the date of tax lien filing.
(C) Commercial financing security defined
The term "commercial financing security" means (i) paper of a
kind ordinarily arising in commercial transactions, (ii)
accounts receivable, (iii) mortgages on real property, and (iv)
inventory.
(D) Purchaser treated as acquiring security interest
A person who satisfies subparagraph (A) by reason of clause
(ii) thereof shall be treated as having acquired a security
interest in commercial financing security
(3) Real property construction or improvement financing agreement
For purposes of this subsection -
(A) Definition
The term "real property construction or improvement financing
agreement" means an agreement to make cash disbursements to
finance -
(i) the construction or improvement of real property,
(ii) a contract to construct or improve real property, or
(iii) the raising or harvesting of a farm crop or the
raising of livestock or other animals.
For purposes of clause (iii), the furnishing of goods and
services shall be treated as the disbursement of cash.
(B) Limitation on qualified property
The term "qualified property", when used with respect to a
real property construction or improvement financing agreement,
includes only -
(i) in the case of subparagraph (A)(i), the real property
with respect to which the construction or improvement has
been or is to be made,
(ii) in the case of subparagraph (A)(ii), the proceeds of
the contract described therein, and
(iii) in the case of subparagraph (A)(iii), property
subject to the lien imposed by section 6321 at the time of
tax lien filing and the crop or the livestock or other
animals referred to in subparagraph (A)(iii).
(4) Obligatory disbursement agreement
For purposes of this subsection -
(A) Definition
The term "obligatory disbursement agreement" means an
agreement (entered into by a person in the course of his trade
or business) to make disbursements, but such an agreement shall
be treated as coming within the term only to the extent of
disbursements which are required to be made by reason of the
intervention of the rights of a person other than the taxpayer.
(B) Limitation on qualified property
The term "qualified property", when used with respect to an
obligatory disbursement agreement, means property subject to
the lien imposed by section 6321 at the time of tax lien filing
and (to the extent that the acquisition is directly traceable
to the disbursements referred to in subparagraph (A)) property
acquired by the taxpayer after tax lien filing.
(C) Special rules for surety agreements
Where the obligatory disbursement agreement is an agreement
ensuring the performance of a contract between the taxpayer and
another person -
(i) the term "qualified property" shall be treated as also
including the proceeds of the contract the performance of
which was ensured, and
(ii) if the contract the performance of which was ensured
was a contract to construct or improve real property, to
produce goods, or to furnish services, the term "qualified
property" shall be treated as also including any tangible
personal property used by the taxpayer in the performance of
such ensured contract.
(d) 45-day period for making disbursements
Even though notice of a lien imposed by section 6321 has been
filed, such lien shall not be valid with respect to a security
interest which came into existence after tax lien filing by reason
of disbursements made before the 46th day after the date of tax
lien filing, or (if earlier) before the person making such
disbursements had actual notice or knowledge of tax lien filing,
but only if such security interest -
(1) is in property (A) subject, at the time of tax lien filing,
to the lien imposed by section 6321, and (B) covered by the terms
of a written agreement entered into before tax lien filing, and
(2) is protected under local law against a judgment lien
arising, as of the time of tax lien filing, out of an unsecured
obligation.
(e) Priority of interest and expenses
If the lien imposed by section 6321 is not valid as against a
lien or security interest, the priority of such lien or security
interest shall extend to -
(1) any interest or carrying charges upon the obligation
secured,
(2) the reasonable charges and expenses of an indenture trustee
or agent holding the security interest for the benefit of the
holder of the security interest,
(3) the reasonable expenses, including reasonable compensation
for attorneys, actually incurred in collecting or enforcing the
obligation secured,
(4) the reasonable costs of insuring, preserving, or repairing
the property to which the lien or security interest relates,
(5) the reasonable costs of insuring payment of the obligation
secured, and
(6) amounts paid to satisfy any lien on the property to which
the lien or security interest relates, but only if the lien so
satisfied is entitled to priority over the lien imposed by
section 6321,
to the extent that, under local law, any such item has the same
priority as the lien or security interest to which it relates.
(f) Place for filing notice; form
(1) Place for filing
The notice referred to in subsection (a) shall be filed -
(A) Under State laws
(i) Real property
In the case of real property, in one office within the
State (or the county, or other governmental subdivision), as
designated by the laws of such State, in which the property
subject to the lien is situated; and
(ii) Personal property
In the case of personal property, whether tangible or
intangible, in one office within the State (or the county, or
other governmental subdivision), as designated by the laws of
such State, in which the property subject to the lien is
situated, except that State law merely conforming to or
reenacting Federal law establishing a national filing system
does not constitute a second office for filing as designated
by the laws of such State; or
(B) With clerk of district court
In the office of the clerk of the United States district
court for the judicial district in which the property subject
to the lien is situated, whenever the State has not by law
designated one office which meets the requirements of
subparagraph (A); or
(C) With Recorder of Deeds of the District of Columbia
In the office of the Recorder of Deeds of the District of
Columbia, if the property subject to the lien is situated in
the District of Columbia.
(2) Situs of property subject to lien
For purposes of paragraphs (1) and (4), property shall be
deemed to be situated -
(A) Real property
In the case of real property, at its physical location; or
(B) Personal property
In the case of personal property, whether tangible or
intangible, at the residence of the taxpayer at the time the
notice of lien is filed.
For purposes of paragraph (2)(B), the residence of a corporation
or partnership shall be deemed to be the place at which the
principal executive office of the business is located, and the
residence of a taxpayer whose residence is without the United
States shall be deemed to be in the District of Columbia.
(3) Form
The form and content of the notice referred to in subsection
(a) shall be prescribed by the Secretary. Such notice shall be
valid notwithstanding any other provision of law regarding the
form or content of a notice of lien.
(4) Indexing required with respect to certain real property
In the case of real property, if -
(A) under the laws of the State in which the real property is
located, a deed is not valid as against a purchaser of the
property who (at the time of purchase) does not have actual
notice or knowledge of the existence of such deed unless the
fact of filing of such deed has been entered and recorded in a
public index at the place of filing in such a manner that a
reasonable inspection of the index will reveal the existence of
the deed, and
(B) there is maintained (at the applicable office under
paragraph (1)) an adequate system for the public indexing of
Federal tax liens,
then the notice of lien referred to in subsection (a) shall not
be treated as meeting the filing requirements under paragraph (1)
unless the fact of filing is entered and recorded in the index
referred to in subparagraph (B) in such a manner that a
reasonable inspection of the index will reveal the existence of
the lien.
(5) National filing systems
The filing of a notice of lien shall be governed solely by this
title and shall not be subject to any other Federal law
establishing a place or places for the filing of liens or
encumbrances under a national filing system.
(g) Refiling of notice
For purposes of this section -
(1) General rule
Unless notice of lien is refiled in the manner prescribed in
paragraph (2) during the required refiling period, such notice of
lien shall be treated as filed on the date on which it is filed
(in accordance with subsection (f)) after the expiration of such
refiling period.
(2) Place for filing
A notice of lien refiled during the required refiling period
shall be effective only -
(A) if -
(i) such notice of lien is refiled in the office in which
the prior notice of lien was filed, and
(ii) in the case of real property, the fact of refiling is
entered and recorded in an index to the extent required by
subsection (f)(4); and
(B) in any case in which, 90 days or more prior to the date
of a refiling of notice of lien under subparagraph (A), the
Secretary received written information (in the manner
prescribed in regulations issued by the Secretary) concerning a
change in the taxpayer's residence, if a notice of such lien is
also filed in accordance with subsection (f) in the State in
which such residence is located.
(3) Required refiling period
In the case of any notice of lien, the term "required refiling
period" means -
(A) the one-year period ending 30 days after the expiration
of 10 years after the date of the assessment of the tax, and
(B) the one-year period ending with the expiration of 10
years after the close of the preceding required refiling period
for such notice of lien.
(4) Transitional rule
Notwithstanding paragraph (3), if the assessment of the tax was
made before January 1, 1962, the first required refiling period
shall be the calendar year 1967.
(h) Definitions
For purposes of this section and section 6324 -
(1) Security interest
The term "security interest" means any interest in property
acquired by contract for the purpose of securing payment or
performance of an obligation or indemnifying against loss or
liability. A security interest exists at any time (A) if, at such
time, the property is in existence and the interest has become
protected under local law against a subsequent judgment lien
arising out of an unsecured obligation, and (B) to the extent
that, at such time, the holder has parted with money or money's
worth.
(2) Mechanic's lienor
The term "mechanic's lienor" means any person who under local
law has a lien on real property (or on the proceeds of a contract
relating to real property) for services, labor, or materials
furnished in connection with the construction or improvement of
such property. For purposes of the preceding sentence, a person
has a lien on the earliest date such lien becomes valid under
local law against subsequent purchasers without actual notice,
but not before he begins to furnish the services, labor, or
materials.
(3) Motor vehicle
The term "motor vehicle" means a self-propelled vehicle which
is registered for highway use under the laws of any State or
foreign country.
(4) Security
The term "security" means any bond, debenture, note, or
certificate or other evidence of indebtedness, issued by a
corporation or a government or political subdivision thereof,
with interest coupons or in registered form, share of stock,
voting trust certificate, or any certificate of interest or
participation in, certificate of deposit or receipt for,
temporary or interim certificate for, or warrant or right to
subscribe to or purchase, any of the foregoing; negotiable
instrument; or money.
(5) Tax lien filing
The term "tax lien filing" means the filing of notice (referred
to in subsection (a)) of the lien imposed by section 6321.
(6) Purchaser
The term "purchaser" means a person who, for adequate and full
consideration in money or money's worth, acquires an interest
(other than a lien or security interest) in property which is
valid under local law against subsequent purchasers without
actual notice. In applying the preceding sentence for purposes of
subsection (a) of this section, and for purposes of section 6324
-
(A) a lease of property,
(B) a written executory contract to purchase or lease
property,
(C) an option to purchase or lease property or any interest
therein, or
(D) an option to renew or extend a lease of property,
which is not a lien or security interest shall be treated as an
interest in property.
(i) Special rules
(1) Actual notice or knowledge
For purposes of this subchapter, an organization shall be
deemed for purposes of a particular transaction to have actual
notice or knowledge of any fact from the time such fact is
brought to the attention of the individual conducting such
transaction, and in any event from the time such fact would have
been brought to such individual's attention if the organization
had exercised due diligence. An organization exercises due
diligence if it maintains reasonable routines for communicating
significant information to the person conducting the transaction
and there is reasonable compliance with the routine. Due
diligence does not require an individual acting for the
organization to communicate information unless such communication
is part of his regular duties or unless he has reason to know of
the transaction and that the transaction would be materially
affected by the information.
(2) Subrogation
Where, under local law, one person is subrogated to the rights
of another with respect to a lien or interest, such person shall
be subrogated to such rights for purposes of any lien imposed by
section 6321 or 6324.
(3) Forfeitures
For purposes of this subchapter, a forfeiture under local law
of property seized by a law enforcement agency of a State,
county, or other local governmental subdivision shall relate back
to the time of seizure, except that this paragraph shall not
apply to the extent that under local law the holder of an
intervening claim or interest would have priority over the
interest of the State, county, or other local governmental
subdivision in the property.
(4) Cost-of-living adjustment
In the case of notices of liens imposed by section 6321 which
are filed in any calendar year after 1998, each of the dollar
amounts under paragraph (4) or (7) of subsection (b) shall be
increased by an amount equal to -
(A) such dollar amount, multiplied by
(B) the cost-of-living adjustment determined under section
1(f)(3) for the calendar year, determined by substituting
"calendar year 1996" for "calendar year 1992" in subparagraph
(B) thereof.
If any amount as adjusted under the preceding sentence is not a
multiple of $10, such amount shall be rounded to the nearest
multiple of $10.
(j) Withdrawal of notice in certain circumstances
(1) In general
The Secretary may withdraw a notice of a lien filed under this
section and this chapter shall be applied as if the withdrawn
notice had not been filed, if the Secretary determines that -
(A) the filing of such notice was premature or otherwise not
in accordance with administrative procedures of the Secretary,
(B) the taxpayer has entered into an agreement under section
6159 to satisfy the tax liability for which the lien was
imposed by means of installment payments, unless such agreement
provides otherwise,
(C) the withdrawal of such notice will facilitate the
collection of the tax liability, or
(D) with the consent of the taxpayer or the National Taxpayer
Advocate, the withdrawal of such notice would be in the best
interests of the taxpayer (as determined by the National
Taxpayer Advocate) and the United States.
Any such withdrawal shall be made by filing notice at the same
office as the withdrawn notice. A copy of such notice of
withdrawal shall be provided to the taxpayer.
(2) Notice to credit agencies, etc.
Upon written request by the taxpayer with respect to whom a
notice of a lien was withdrawn under paragraph (1), the Secretary
shall promptly make reasonable efforts to notify credit reporting
agencies, and any financial institution or creditor whose name
and address is specified in such request, of the withdrawal of
such notice. Any such request shall be in such form as the
Secretary may prescribe.
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 779; Pub. L. 88-272, title II,
Sec. 236(a), (c)(1), Feb. 26, 1964, 78 Stat. 127, 128; Pub. L.
89-493, Sec. 17(a), July 5, 1966, 80 Stat. 266; Pub. L. 89-719,
title I, Sec. 101(a), Nov. 2, 1966, 80 Stat. 1125; Pub. L. 94-455,
title XII, Sec. 1202(h)(2), title XIX, Sec. 1906(b)(13)(A), title
XX, Sec. 2008(c), Oct. 4, 1976, 90 Stat. 1688, 1834, 1892; Pub. L.
95-600, title VII, Sec. 702(q)(1), (2), Nov. 6, 1978, 92 Stat.
2937, 2938; Pub. L. 99-514, title XV, Sec. 1569(a), Oct. 22, 1986,
100 Stat. 2764; Pub. L. 100-647, title I, Sec. 1015(s)(1), Nov. 10,
1988, 102 Stat. 3573; Pub. L. 101-508, title XI, Secs. 11317(b),
11704(a)(26), Nov. 5, 1990, 104 Stat. 1388-458, 1388-519; Pub. L.
104-168, title V, Sec. 501(a), July 30, 1996, 110 Stat. 1460; Pub.
L. 105-206, title I, Sec. 1102(d)(1)(A), title III, Sec. 3435(a),
(b), July 22, 1998, 112 Stat. 704, 760, 761.)
-STATAMEND-
ADJUSTMENT OF APPLICABLE DOLLAR AMOUNTS IN DETERMINING VALIDITY OF
FEDERAL TAX LIENS FOR CALENDAR YEAR 2004
For adjustment of applicable dollar amounts under subsection
(b)(4), (7) of this section in determining validity of certain
Federal tax liens for calendar year 2004, see section 3.30 of
Revenue Procedure 2003-85, set out as a note under section 1 of
this title.
-MISC1-
AMENDMENTS
1998 - Subsec. (b)(4). Pub. L. 105-206, Sec. 3435(a)(1)(A),
substituted "$1,000" for "$250".
Subsec. (b)(7). Pub. L. 105-206, Sec. 3435(a)(1)(B), substituted
"$5,000" for "$1,000".
Subsec. (b)(10). Pub. L. 105-206, Sec. 3435(b), in heading
substituted "Deposit-secured loans" for "Passbook loans", and in
text struck out ", evidenced by a passbook," after "other account"
and substituted period at end for "and if such institution has been
continuously in possession of such passbook from the time the loan
is made."
Subsec. (i)(4). Pub. L. 105-206, Sec. 3435(a)(2), added par. (4).
Subsec. (j)(1)(D). Pub. L. 105-206, Sec. 1102(d)(1)(A),
substituted "National Taxpayer Advocate" for "Taxpayer Advocate" in
two places.
1996 - Subsec. (j). Pub. L. 104-168 added subsec. (j).
1990 - Subsec. (a). Pub. L. 101-508, Sec. 11704(a)(26),
substituted "Purchasers" for "Purchases" in heading.
Subsec. (g)(3). Pub. L. 101-508, Sec. 11317(b), substituted "10
years" for "6 years" wherever appearing.
1988 - Subsec. (f)(1)(A)(ii). Pub. L. 100-647, Sec.
1015(s)(1)(A), inserted exception that State law merely conforming
to or reenacting Federal law establishing a national filing system
does not constitute a second office for filing as designated by the
laws of such State.
Subsec. (f)(5). Pub. L. 100-647, Sec. 1015(s)(1)(B), added par.
(5).
1986 - Subsec. (i)(3). Pub. L. 99-514 added par. (3).
1978 - Subsec. (f)(4). Pub. L. 95-600, Sec. 702(q)(1), in heading
substituted "Indexing required with respect to certain real
property" for "Index" and in text inserted provisions relating to
the validity of a deed, under the laws of the State in which the
real property is located, as against a purchaser who does not have
actual notice or knowledge of the existence of such deed and
provisions relating to the maintenance of an adequate system for
the public indexing of Federal tax liens.
Subsec. (g)(2)(A). Pub. L. 95-600, Sec. 702(q)(2), inserted
reference to real property.
1976 - Subsecs. (a), (b). Pub. L. 94-455, Sec. 1906(b)(13)(A),
struck out "or his delegate" after "Secretary" wherever appearing.
Subsec. (f)(2). Pub. L. 94-455, Sec. 2008(c)(1)(B), inserted
introductory reference to par. (4).
Subsec. (f)(3). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck out
"or his delegate" after "Secretary".
Subsec. (f)(4). Pub. L. 94-455, Sec. 2008(c)(1)(A), added par.
(4).
Subsec. (g)(2)(A), (B). Pub. L. 94-455, Secs. 1906(b)(13)(A),
2008(c)(2), required the fact of refiling be entered and recorded
in an index in accordance with subsec. (f)(4), and struck out "or
his delegate" after "Secretary" wherever appearing.
Subsec. (i)(3). Pub. L. 94-455, Sec. 1202(h)(2), struck out par.
(3) which related to a special rule respecting disclosure of amount
of outstanding lien.
1966 - Subsec. (a). Pub. L. 89-719 redesignated as subsec. (a)
that part of former subsec. (a) which preceded pars. (1) to (3)
thereof, and, in subsec. (a) as so redesignated, substituted holder
of a security interest, mechanic's lienor, and judgment lien
creditor for mortgagee, pledgee, and judgment creditor, struck out
reference to an exception provided in subsecs. (c) and (d), and
inserted reference to requirements of subsec. (f).
Subsec. (a)(3). Pub. L. 89-493 substituted the Recorder of Deeds
of the District of Columbia for the clerk of the United States
District Court for the District of Columbia.
Subsec. (b)(1). Pub. L. 89-719 redesignated provisions of subsec.
(c)(1) as subsec. (b)(1) and substituted "holder of a security
interest" for "mortgagee and pledgee" and purchaser of such
security interest for purchaser of such security for any adequate
and full consideration in money or money's worth.
Subsec. (b)(2). Pub. L. 89-719 redesignated provisions of subsec.
(d)(1) as subsec. (b)(2) and substituted purchaser of such motor
vehicle for purchaser of such motor vehicle for an adequate and
full consideration in money or money's worth and substituted actual
notice or knowledge for notice or knowledge.
Subsec. (b)(3) to (10). Pub. L. 89-719 added pars. (3) to (10).
Subsecs. (c) to (e). Pub. L. 89-719 added subsecs. (c) to (e).
Subsec. (f)(1). Pub. L. 89-719 redesignated provisions of former
subsec. (a)(1) to (3) as subsec. (f)(1).
Subsec. (f)(2). Pub. L. 89-719 added par. (2).
Subsec. (f)(3). Pub. L. 89-719 redesignated provisions of former
subsec. (b) as subsec. (f)(3) and substituted provisions that the
form and content of the notice be prescribed by the Secretary or
his delegate for provisions limiting the effectiveness of the
notice to situations in which the notice is in such form as would
be valid if filed with the clerk of the United States district
court when state or territory law fails to designate an office for
the filing of notice.
Subsec. (g). Pub. L. 89-719 added subsec. (g).
Subsec. (h)(1), (2). Pub. L. 89-719 added pars. (1) and (2).
Subsec. (h)(3). Pub. L. 89-719 redesignated provisions of former
subsec. (d)(2) as subsec. (h)(3).
Subsec. (h)(4). Pub. L. 89-719 redesignated provisions of former
subsec. (c)(2) as subsec. (h)(4).
Subsec. (h)(5), (6). Pub. L. 89-719 added pars. (5), (6).
Subsec. (i)(1), (2). Pub. L. 89-719 added pars. (1), (2).
Subsec. (i)(3). Pub. L. 89-719 redesignated provisions of former
subsec. (e) as subsec. (i)(3) and substituted "regulations" for
"rules and relations".
1964 - Subsec. (a). Pub. L. 88-272, Sec. 236(c)(1), substituted
"subsections (c) and (d)" for "subsection (c)".
Subsecs. (d), (e). Pub. L. 88-272, Sec. 236(a), added subsec. (d)
and redesignated former subsec. (d) as (e).
EFFECTIVE DATE OF 1998 AMENDMENT
Amendment by section 1102(d)(1)(A) of Pub. L. 105-206 effective
July 22, 1998, see section 1102(f)(1) of Pub. L. 105-206, set out
as a note under section 7803 of this title.
Pub. L. 105-206, title III, Sec. 3435(c), July 22, 1998, 112
Stat. 761, provided that: "The amendments made by this section
[amending this section] shall take effect on the date of the
enactment of this Act [July 22, 1998]."
EFFECTIVE DATE OF 1996 AMENDMENT
Section 501(d) of Pub. L. 104-168 provided that: "The amendments
made by this section [amending this section and section 6343 of
this title] shall take effect on the date of the enactment of this
Act [July 30, 1996]."
EFFECTIVE DATE OF 1990 AMENDMENT
Section 11317(c) of Pub. L. 101-508 provided that: "The
amendments made by this section [amending this section and section
6502 of this title] shall apply to -
"(1) taxes assessed after the date of the enactment of this Act
[Nov. 5, 1990], and
"(2) taxes assessed on or before such date if the period
specified in section 6502 of the Internal Revenue Code of 1986
(determined without regard to the amendments made by subsection
(a) [amending section 6502 of this title]) for collection of such
taxes has not expired as of such date."
EFFECTIVE DATE OF 1988 AMENDMENT
Section 1015(s)(2) of Pub. L. 100-647 provided that: "The
amendments made by this subsection [amending this section] shall
take effect on the date of the enactment of this Act [Nov. 10,
1988]."
EFFECTIVE DATE OF 1986 AMENDMENT
Section 1569(b) of Pub. L. 99-514 provided that: "The amendment
made by this section [amending this section] shall take effect on
the date of the enactment of this Act [Oct. 22, 1986]."
EFFECTIVE DATE OF 1978 AMENDMENT
Section 702(q)(3) of Pub. L. 95-600, as amended by Pub. L.
99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
"(A) The amendments made by this subsection [amending this
section] shall apply with respect to liens, other security
interests, and other interests in real property acquired after the
date of the enactment of this Act [Nov. 6, 1978].
"(B) If, after the date of the enactment of this Act, there is a
change in the application (or nonapplication) of section 6323(f)(4)
of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] (as
amended by paragraph (1)) with respect to any filing jurisdiction,
such change shall apply only with respect to liens, other security
interests, and other interests in real property acquired after the
date of such change."
EFFECTIVE DATE OF 1976 AMENDMENT
Amendment by section 1202(h)(2) of Pub. L. 94-455 effective Jan.
1, 1977, see section 1202(i) of Pub. L. 94-455, set out as a note
under section 6103 of this title.
Section 2008(d)(3) of Pub. L. 94-455 provided that: "The
amendment made by subsection (c) [amending this section] shall take
effect -
"(A) in the case of liens filed before the date of the
enactment of this Act [Oct. 4, 1976], on the 270th day after such
date of enactment, or
"(B) in the case of liens filed on or after the date of
enactment of this Act [Oct. 4, 1976], on the 120th day after such
date of enactment."
EFFECTIVE DATE OF 1966 AMENDMENTS
Section 114(a)-(c) of title I of Pub. L. 89-719 provided that:
"(a) General Rule. - Except as otherwise provided, the amendments
made by this title [enacting sections 3505, 7425, 7426, and 7810 of
this title, amending this section, sections 545, 6322, 6324, 6325,
6331, 6332, 6334, 6335, 6337, 6338, 6339, 6342, 6343, 6502, 6503,
6532, 7402, 7403, 7421, 7424, 7505, 7506, and 7809 of this title,
and section 270a of former Title 40, Public Buildings, Property,
and Works, redesignating former section 7425 as 7427 of this title,
and enacting provisions set out as notes under this section and
section 7424 of this title] shall apply after the date of enactment
of this Act [Nov. 2, 1966], regardless of when a lien or a title of
the United States arose or when the lien or interest of any other
person was acquired.
"(b) Exceptions. - The amendments made by this title shall not
apply in any case -
"(1) in which a lien or a title derived from enforcement of a
lien held by the United States has been enforced by a civil
action or suit which has become final by judgment, sale, or
agreement before the date of enactment of this Act; or
"(2) in which such amendments would -
"(A) impair a priority enjoyed by any person (other than the
United States) holding a lien or interest prior to the date of
enactment of this Act;
"(B) operate to increase the liability of any such person; or
"(C) shorten the time for bringing suit with respect to
transactions occurring before the date of enactment of this
Act.
"(c) Liability for Withheld Taxes. -
"(1) The amendments made by section 105(a) (relating to effect
on third parties) [adding section 3505 of this title] shall apply
only with respect to wages paid on or after January 1, 1967.
"(2) The amendments made by section 105(b) (relating to
performance bonds of contractors for public buildings or works)
[amending section 270a of former Title 40] shall apply to
contracts entered into pursuant to invitations for bids issued
after June 30, 1967."
Section 21 of Pub. L. 89-493 provided that: "This Act [amending
this section] shall take effect on the first day of the first month
which is at least ninety days after the date of approval of this
Act [July 5, 1966]."
EFFECTIVE DATE OF 1964 AMENDMENT
Section 236(d) of Pub. L. 88-272 provided that: "The amendments
made by this section [amending this section and section 6324 of
this title] shall apply only with respect to purchases made after
the date of the enactment of this Act [Feb. 26, 1964.]"
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is refer |
