-CITE-
26 USC CHAPTER 70 - JEOPARDY, RECEIVERSHIPS, ETC. 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 70 - JEOPARDY, RECEIVERSHIPS, ETC.
-HEAD-
CHAPTER 70 - JEOPARDY, RECEIVERSHIPS, ETC.
-MISC1-
Subchapter Sec.(!1)
A. Jeopardy 6851
B. Receiverships, etc 6871
AMENDMENTS
1980 - Pub. L. 96-589, Sec. 6(g)(3)(C), (D), Dec. 24, 1980, 94
Stat. 3410, substituted "JEOPARDY, RECEIVERSHIPS ETC." for
"JEOPARDY, BANKRUPTCY AND RECEIVERSHIPS" in chapter heading, and
"Receiverships, etc." for "Bankruptcy and receiverships" in item
for subchapter B.
-SECREF-
CHAPTER REFERRED TO IN OTHER SECTIONS
This chapter is referred to in sections 6422, 6601, 7508, 7801 of
this title.
-FOOTNOTE-
(!1) Section numbers editorially supplied.
-End-
-CITE-
26 USC Subchapter A - Jeopardy 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 70 - JEOPARDY, RECEIVERSHIPS, ETC.
Subchapter A - Jeopardy
-HEAD-
SUBCHAPTER A - JEOPARDY
-MISC1-
Part
I. Termination of taxable year.
II. Jeopardy assessments.
III. Special rules with respect to certain cash.
AMENDMENTS
1982 - Pub. L. 97-248, title III, Sec. 330(b), Sept. 3, 1982, 96
Stat. 620, added item for part III.
-SECREF-
SUBCHAPTER REFERRED TO IN OTHER SECTIONS
This subchapter is referred to in sections 6155, 6216, 6331 of
this title.
-End-
-CITE-
26 USC PART I - TERMINATION OF TAXABLE YEAR 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 70 - JEOPARDY, RECEIVERSHIPS, ETC.
Subchapter A - Jeopardy
PART I - TERMINATION OF TAXABLE YEAR
-HEAD-
PART I - TERMINATION OF TAXABLE YEAR
-MISC1-
Sec.
6851. Termination assessments of income tax.
6852. Termination assessments in case of flagrant political
expenditures of section 501(c)(3) organizations.
AMENDMENTS
1987 - Pub. L. 100-203, title X, Sec. 10713(b)(2)(H), Dec. 22,
1987, 101 Stat. 1330-470, added item 6852.
1976 - Pub. L. 94-455, title XII, Sec. 1204(c)(12), Oct. 4, 1976,
90 Stat. 1699, substituted "assessments of income tax" for "of
taxable year" in item 6851.
-End-
-CITE-
26 USC Sec. 6851 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 70 - JEOPARDY, RECEIVERSHIPS, ETC.
Subchapter A - Jeopardy
PART I - TERMINATION OF TAXABLE YEAR
-HEAD-
Sec. 6851. Termination assessments of income tax
-STATUTE-
(a) Authority for making
(1) In general
If the Secretary finds that a taxpayer designs quickly to
depart from the United States or to remove his property
therefrom, or to conceal himself or his property therein, or to
do any other act (including in the case of a corporation
distributing all or a part of its assets in liquidation or
otherwise) tending to prejudice or to render wholly or partially
ineffectual proceedings to collect the income tax for the current
or the immediately preceding taxable year unless such proceeding
be brought without delay, the Secretary shall immediately make a
determination of tax for the current taxable year or for the
preceding taxable year, or both, as the case may be, and
notwithstanding any other provision of law, such tax shall become
immediately due and payable. The Secretary shall immediately
assess the amount of the tax so determined (together with all
interest, additional amounts, and additions to the tax provided
by law) for the current taxable year or such preceding taxable
year, or both, as the case may be, and shall cause notice of such
determination and assessment to be given the taxpayer, together
with a demand for immediate payment of such tax.
(2) Computation of tax
In the case of a current taxable year, the Secretary shall
determine the tax for the period beginning on the first day of
such current taxable year and ending on the date of the
determination under paragraph (1) as though such period were a
taxable year of the taxpayer, and shall take into account any
prior determination made under this subsection with respect to
such current taxable year.
(3) Treatment of amounts collected
Any amounts collected as a result of any assessments under this
subsection shall, to the extent thereof, be treated as a payment
of tax for such taxable year.
(4) This section inapplicable where section 6861 applies
This section shall not authorize any assessment of tax for the
preceding taxable year which is made after the due date of the
taxpayer's return for such taxable year (determined with regard
to any extensions).
(b) Notice of deficiency
If an assessment of tax is made under the authority of subsection
(a), the Secretary shall mail a notice under section 6212(a) for
the taxpayer's full taxable year (determined without regard to any
action taken under subsection (a)) with respect to which such
assessment was made within 60 days after the later of (i) the due
date of the taxpayer's return for such taxable year (determined
with regard to any extensions), or (ii) the date such taxpayer
files such return. Such deficiency may be in an amount greater or
less than the amount assessed under subsection (a).
(c) Citizens
In the case of a citizen of the United States or of a possession
of the United States about to depart from the United States, the
Secretary may, at his discretion, waive any or all of the
requirements placed on the taxpayer by this section.
(d) Departure of alien
Subject to such exceptions as may, by regulations, be prescribed
by the Secretary -
(1) No alien shall depart from the United States unless he
first procures from the Secretary a certificate that he has
complied with all the obligations imposed upon him by the income
tax laws.
(2) Payment of taxes shall not be enforced by any proceedings
under the provisions of this section prior to the expiration of
the time otherwise allowed for paying such taxes if, in the case
of an alien about to depart from the United States, the Secretary
determines that the collection of the tax will not be jeopardized
by the departure of the alien.
(e) Sections 6861(f) and (g) to apply
The provisions of section 6861(f) (relating to collection of
unpaid amounts) and 6861(g) (relating to abatement if jeopardy does
not exist) shall apply with respect to any assessment made under
subsection (a).
(f) Cross references
(1) For provisions permitting immediate levy in case of
jeopardy, see section 6331(a).
(2) For provisions relating to the review of jeopardy, see
section 7429.
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 833; Pub. L. 85-866, title I,
Sec. 87, Sept. 2, 1958, 72 Stat. 1665; Pub. L. 94-455, title XII,
Sec. 1204(b), title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90
Stat. 1696, 1834.)
-MISC1-
AMENDMENTS
1976 - Pub. L. 94-455, Sec. 1204(b)(1), substituted "assessments
of income tax" for "of taxable year" in section catchline.
Subsec. (a). Pub. L. 94-455, Sec. 1204(b)(1), revised pars. (1)
and (2) to provide that a termination assessment does not end the
taxable year for any purpose other than the computation of the
amount of tax to be assessed and collected and to set out the
method for determining the tax for the current taxable year, and
added pars. (3) and (4).
Subsec. (b). Pub. L. 94-455, Sec. 1204(b)(1), substituted
provisions for the mailing of a notice of deficiency for provisions
for the reopening of taxable period.
Subsecs. (c), (d). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck
out "or his delegate" after "Secretary" wherever appearing.
Subsec. (e). Pub. L. 94-455, Sec. 1204(b)(2), substituted
provisions making section 6861(f) and (g) applicable with respect
to assessments under subsec. (a).
Subsec. (f). Pub. L. 94-455, Sec. 1204(b)(2), added subsec. (f).
1958 - Subsec. (d). Pub. L. 85-866 designated existing provisions
as par. (1), inserted opening provisions, and added par. (2).
EFFECTIVE DATE OF 1976 AMENDMENT
Section 1204(d) of Pub. L. 94-455, as amended by Pub. L. 94-528,
Sec. 2(a), Oct. 17, 1976, 90 Stat. 2483; Pub. L. 99-514, Sec. 2,
Oct. 22, 1986, 100 Stat. 2095, provided that: "The amendments made
by this section [enacting section 7429 of this title and amending
this section and sections 443, 6091, 6211, 6213, 6863, 7103, and
7421 of this title] apply with respect to action taken under
section 6851, 6861, or 6862 of the Internal Revenue Code of 1986
[formerly I.R.C. 1954] where the notice and demand takes place
after February 28, 1977."
EFFECTIVE DATE OF 1958 AMENDMENT
Amendment by Pub. L. 85-866 effective Aug. 17, 1954, see section
1(c)(2) of Pub. L. 85-866, set out as a note under section 165 of
this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 6015, 6211, 6231, 6234,
6852, 6863, 6867, 7429, 7508, 7611 of this title; title 5 section
5568; title 37 section 558.
-End-
-CITE-
26 USC Sec. 6852 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 70 - JEOPARDY, RECEIVERSHIPS, ETC.
Subchapter A - Jeopardy
PART I - TERMINATION OF TAXABLE YEAR
-HEAD-
Sec. 6852. Termination assessments in case of flagrant political
expenditures of section 501(c)(3) organizations
-STATUTE-
(a) Authority to make
(1) In general
If the Secretary finds that -
(A) a section 501(c)(3) organization has made political
expenditures, and
(B) such expenditures constitute a flagrant violation of the
prohibition against making political expenditures,
the Secretary shall immediately make a determination of any
income tax payable by such organization for the current or
immediately preceding taxable year, or both, and shall
immediately make a determination of any tax payable under section
4955 by such organization or any manager thereof with respect to
political expenditures during the current or preceding taxable
year, or both. Notwithstanding any other provision of law, any
such tax shall become immediately due and payable. The Secretary
shall immediately assess the amount of tax so determined
(together with all interest, additional amounts, and additions to
the tax provided by law) for the current year or the preceding
taxable year, or both, and shall cause notice of such
determination and assessment to be given to the organization or
any manager thereof, as the case may be, together with a demand
for immediate payment of such tax.
(2) Computation of tax
In the case of a current taxable year, the Secretary shall
determine the taxes for the period beginning on the 1st day of
such current taxable year and ending on the date of the
determination under paragraph (1) as though such period were a
taxable year of the organization, and shall take into account any
prior determination made under this subsection with respect to
such current taxable year.
(3) Treatment of amounts collected
Any amounts collected as a result of any assessments under this
subsection shall, to the extent thereof, be treated as a payment
of income tax for such taxable year, or tax under section 4955
with respect to the expenditure, as the case may be.
(4) Section inapplicable to assessments after due date
This section shall not authorize any assessment of tax for the
preceding taxable year which is made after the due date of the
organization's return for such taxable year (determined with
regard to any extensions).
(b) Definitions and special rules
(1) Definitions
For purposes of this section, the terms "section 501(c)(3)
organization", "political expenditure", and "organization
manager" have the respective meanings given to such terms by
section 4955.
(2) Certain rules made applicable
The provisions of sections 6851(b), 6861(f), and 6861(g) shall
apply with respect to any assessment made under subsection (a),
except that determinations under section 6861(g) shall be made on
the basis of whether the requirements of subsection (a)(1)(B) of
this section are met in lieu of whether jeopardy exists.
-SOURCE-
(Added Pub. L. 100-203, title X, Sec. 10713(b)(1), Dec. 22, 1987,
101 Stat. 1330-469.)
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 6091, 6211, 6212, 6213,
6234, 6863, 7429, 7611 of this title.
-End-
-CITE-
26 USC PART II - JEOPARDY ASSESSMENTS 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 70 - JEOPARDY, RECEIVERSHIPS, ETC.
Subchapter A - Jeopardy
PART II - JEOPARDY ASSESSMENTS
-HEAD-
PART II - JEOPARDY ASSESSMENTS
-MISC1-
Sec.
6861. Jeopardy assessments of income, estate, gift, and
certain excise taxes.
6862. Jeopardy assessment of taxes other than income,
estate, gift, and certain excise taxes.
6863. Stay of collection of jeopardy assessments.
6864. Termination of extended period for payment in case of
carryback.
AMENDMENTS
1974 - Pub. L. 93-406, title II, Sec. 1016(b)(5), Sept. 2, 1974,
88 Stat. 932, substituted "gift, and certain excise taxes" for "and
gift taxes" in items 6861 and 6862.
-End-
-CITE-
26 USC Sec. 6861 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 70 - JEOPARDY, RECEIVERSHIPS, ETC.
Subchapter A - Jeopardy
PART II - JEOPARDY ASSESSMENTS
-HEAD-
Sec. 6861. Jeopardy assessments of income, estate, gift, and
certain excise taxes
-STATUTE-
(a) Authority for making
If the Secretary believes that the assessment or collection of a
deficiency, as defined in section 6211, will be jeopardized by
delay, he shall, notwithstanding the provisions of section 6213(a),
immediately assess such deficiency (together with all interest,
additional amounts, and additions to the tax provided for by law),
and notice and demand shall be made by the Secretary for the
payment thereof.
(b) Deficiency letters
If the jeopardy assessment is made before any notice in respect
of the tax to which the jeopardy assessment relates has been mailed
under section 6212(a), then the Secretary shall mail a notice under
such subsection within 60 days after the making of the assessment.
(c) Amount assessable before decision of Tax Court
The jeopardy assessment may be made in respect of a deficiency
greater or less than that notice of which has been mailed to the
taxpayer, despite the provisions of section 6212(c) prohibiting the
determination of additional deficiencies, and whether or not the
taxpayer has theretofore filed a petition with the Tax Court. The
Secretary may, at any time before the decision of the Tax Court is
rendered, abate such assessment, or any unpaid portion thereof, to
the extent that he believes the assessment to be excessive in
amount. The Secretary shall notify the Tax Court of the amount of
such assessment, or abatement, if the petition is filed with the
Tax Court before the making of the assessment or is subsequently
filed, and the Tax Court shall have jurisdiction to redetermine the
entire amount of the deficiency and of all amounts assessed at the
same time in connection therewith.
(d) Amount assessable after decision of Tax Court
If the jeopardy assessment is made after the decision of the Tax
Court is rendered, such assessment may be made only in respect of
the deficiency determined by the Tax Court in its decision.
(e) Expiration of right to assess
A jeopardy assessment may not be made after the decision of the
Tax Court has become final or after the taxpayer has filed a
petition for review of the decision of the Tax Court.
(f) Collection of unpaid amounts
When the petition has been filed with the Tax Court and when the
amount which should have been assessed has been determined by a
decision of the Tax Court which has become final, then any unpaid
portion, the collection of which has been stayed by bond as
provided in section 6863(b) shall be collected as part of the tax
upon notice and demand from the Secretary, and any remaining
portion of the assessment shall be abated. If the amount already
collected exceeds the amount determined as the amount which should
have been assessed, such excess shall be credited or refunded to
the taxpayer as provided in section 6402, without the filing of
claim therefor. If the amount determined as the amount which should
have been assessed is greater than the amount actually assessed,
then the difference shall be assessed and shall be collected as
part of the tax upon notice and demand from the Secretary.
(g) Abatement if jeopardy does not exist
The Secretary may abate the jeopardy assessment if he finds that
jeopardy does not exist. Such abatement may not be made after a
decision of the Tax Court in respect of the deficiency has been
rendered or, if no petition is filed with the Tax Court, after the
expiration of the period for filing such petition. The period of
limitation on the making of assessments and levy or a proceeding in
court for collection, in respect of any deficiency, shall be
determined as if the jeopardy assessment so abated had not been
made, except that the running of such period shall in any event be
suspended for the period from the date of such jeopardy assessment
until the expiration of the 10th day after the day on which such
jeopardy assessment is abated.
(h) Cross references
(1) For the effect of the furnishing of security for payment,
see section 6863.
(2) For provision permitting immediate levy in case of
jeopardy, see section 6331(a).
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 834; Pub. L. 93-406, title II,
Sec. 1016(a)(24), Sept. 2, 1974, 88 Stat. 931; 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.
1974 - Pub. L. 93-406 substituted ", gift, and certain excise
taxes" for "and gift taxes" in section catchline.
EFFECTIVE DATE OF 1974 AMENDMENT
Amendment by Pub. L. 93-406 applicable, except as otherwise
provided in section 1017(c) through (i) of Pub. L. 93-406, for plan
years beginning after Sept. 2, 1974, but, in the case of plans in
existence on Jan. 1, 1974, amendment by Pub. L. 93-406 applicable
for plan years beginning after Dec. 31, 1975, see section 1017 of
Pub. L. 93-406, set out as an Effective Date; Transitional Rules
note under section 410 of this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 534, 6015, 6212, 6213,
6231, 6234, 6656, 6852, 6863, 6867, 7429, 7611 of this title; title
5 section 5568; title 37 section 558.
-End-
-CITE-
26 USC Sec. 6862 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 70 - JEOPARDY, RECEIVERSHIPS, ETC.
Subchapter A - Jeopardy
PART II - JEOPARDY ASSESSMENTS
-HEAD-
Sec. 6862. Jeopardy assessment of taxes other than income, estate,
gift, and certain excise taxes
-STATUTE-
(a) Immediate assessment
If the Secretary believes that the collection of any tax (other
than income tax, estate tax, gift tax, and the excise taxes imposed
by chapters 41, 42, 43, and 44) under any provision of the internal
revenue laws will be jeopardized by delay, he shall, whether or not
the time otherwise prescribed by law for making return and paying
such tax has expired, immediately assess such tax (together with
all interest, additional amounts, and additions to the tax provided
for by law). Such tax, additions to the tax, and interest shall
thereupon become immediately due and payable, and immediate notice
and demand shall be made by the Secretary for the payment thereof.
(b) Immediate levy
For provision permitting immediate levy in case of jeopardy,
see section 6331(a).
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 836; Pub. L. 93-406, title II,
Sec. 1016(a)(25), Sept. 2, 1974, 88 Stat. 931; Pub. L. 94-455,
title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub.
L. 96-222, title I, Sec. 108(b)(1)(C), Apr. 1, 1980, 94 Stat. 226;
Pub. L. 96-223, title I, Sec. 101(f)(9), Apr. 2, 1980, 94 Stat.
253; Pub. L. 100-418, title I, Sec. 1941(b)(2)(N), Aug. 23, 1988,
102 Stat. 1324.)
-MISC1-
AMENDMENTS
1988 - Subsec. (a). Pub. L. 100-418 substituted "and 44" for "44,
and 45".
1980 - Subsec. (a). Pub. L. 96-223 which directed the
substitution of "the excise taxes imposed by chapters 41, 42, 43,
44, and 45" for "certain excise taxes" was executed by inserting
reference to chapter 45 in view of the amendment by Pub. L. 96-222.
Pub. L. 96-222 substituted "the taxes imposed by chapters 41, 42,
43, and 44" for "certain excise taxes".
1976 - Subsec. (a). Pub. L. 94-455 struck out "or his delegate"
after "Secretary" wherever appearing.
1974 - Pub. L. 93-406 substituted ", gift, and certain excise
taxes" for ", and gift taxes" in section catchline and "gift tax,
and certain excise taxes)" for "and gift tax)" in subsec. (a).
EFFECTIVE DATE OF 1988 AMENDMENT
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 1980 AMENDMENTS
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.
Amendment by Pub. L. 96-222 effective as if included in the
provisions of the Black Lung Benefits Revenue Act of 1977, Pub. L.
95-227, see section 108(b)(4) of Pub. L. 96-222, set out as a note
under section 192 of this title.
EFFECTIVE DATE OF 1974 AMENDMENT
Amendment by Pub. L. 93-406 applicable, except as otherwise
provided in section 1017(c) through (i) of Pub. L. 93-406, for plan
years beginning after Sept. 2, 1974, but, in the case of plans in
existence on Jan. 1, 1974, amendment by Pub. L. 93-406 applicable
for plan years beginning after Dec. 31, 1975, see section 1017 of
Pub. L. 93-406, set out as an Effective Date; Transitional Rules
note under section 410 of this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 6656, 6863, 7429 of this
title.
-End-
-CITE-
26 USC Sec. 6863 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 70 - JEOPARDY, RECEIVERSHIPS, ETC.
Subchapter A - Jeopardy
PART II - JEOPARDY ASSESSMENTS
-HEAD-
Sec. 6863. Stay of collection of jeopardy assessments
-STATUTE-
(a) Bond to stay collection
When an assessment has been made under section 6851, 6852,,(!1)
6861 or 6862, the collection of the whole or any amount of such
assessment may be stayed by filing with the Secretary, within such
time as may be fixed by regulations prescribed by the Secretary, a
bond in an amount equal to the amount as to which the stay is
desired, conditioned upon the payment of the amount (together with
interest thereon) the collection of which is stayed, at the time at
which, but for the making of such assessment, such amount would be
due. Upon the filing of the bond the collection of so much of the
amount assessed as is covered by the bond shall be stayed. The
taxpayer shall have the right to waive such stay at any time in
respect of the whole or any part of the amount covered by the bond,
and if as a result of such waiver any part of the amount covered by
the bond is paid, then the bond shall, at the request of the
taxpayer, be proportionately reduced. If any portion of such
assessment is abated, the bond shall, at the request of the
taxpayer, be proportionately reduced.
(b) Further conditions in case of income, estate, or gift taxes
In the case of taxes subject to the jurisdiction of the Tax Court
-
(1) Prior to petition to Tax Court
If the bond is given before the taxpayer has filed his petition
under section 6213(a), the bond shall contain a further condition
that if a petition is not filed within the period provided in
such section, then the amount, the collection of which is stayed
by the bond, will be paid on notice and demand at any time after
the expiration of such period, together with interest thereon
from the date of the jeopardy notice and demand to the date of
notice and demand under this paragraph.
(2) Effect of Tax Court decision
The bond shall be conditioned upon the payment of so much of
such assessment (collection of which is stayed by the bond) as is
not abated by a decision of the Tax Court which has become final.
If the Tax Court determines that the amount assessed is greater
than the amount which should have been assessed, then when the
decision of the Tax Court is rendered the bond shall, at the
request of the taxpayer, be proportionately reduced.
(3) Stay of sale of seized property pending Tax Court decision
(A) General rule
Where, notwithstanding the provisions of section 6213(a), an
assessment has been made under section 6851, 6852, or 6861, the
property seized for the collection of the tax shall not be sold
-
(i) before the expiration of the periods described in
subsection (c)(1)(A) and (B),
(ii) before the issuance of the notice of deficiency
described in section 6851(b) or 6861(b), and the expiration
of the period provided in section 6213(a) for filing a
petition with the Tax Court, and
(iii) if a petition is filed with the Tax Court (whether
before or after the making of such assessment), before the
expiration of the period during which the assessment of the
deficiency would be prohibited if neither sections 6851(a),
6852(a), nor 6861(a) were applicable.
Clauses (ii) and (iii) shall not apply in the case of a
termination assessment under section 6851 if the taxpayer does
not file a return for the taxable year by the due date
(determined with regard to any extensions).
(B) Exceptions
Such property may be sold if -
(i) the taxpayer consents to the sale,
(ii) the Secretary determines that the expenses of
conservation and maintenance will greatly reduce the net
proceeds, or
(iii) the property is of the type described in section
6336.
(C) Review by Tax Court
If, but for the application of subparagraph (B), a sale would
be prohibited by subparagraph (A)(iii), then the Tax Court
shall have jurisdiction to review the Secretary's determination
under subparagraph (B) that the property may be sold. Such
review may be commenced upon motion by either the Secretary or
the taxpayer. An order of the Tax Court disposing of a motion
under this paragraph shall be reviewable in the same manner as
a decision of the Tax Court.
(c) Stay of sale of seized property pending district court
determination under section 7429
(1) General rule
Where a jeopardy assessment has been made under section
6862(a), the property seized for the collection of the tax shall
not be sold -
(A) if a civil action is commenced in accordance with section
7429(b), on or before the day on which the district court
judgment in such action becomes final, or
(B) if subparagraph (A) does not apply, before the day after
the expiration of the period provided in section 7429(a) for
requesting an administrative review, and if such review is
requested, before the day after the expiration of the period
provided in section 7429(b), for commencing an action in the
district court.
(2) Exceptions
With respect to any property described in paragraph (1), the
exceptions provided by subsection (b)(3)(B) shall apply.
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 836; Pub. L. 94-455, title XII,
Sec. 1204(c)(7)-(9), title XIX, Sec. 1906(a)(38), (b)(13)(A), Oct.
4, 1976, 90 Stat. 1698, 1830, 1834; Pub. L. 100-203, title X, Sec.
10713(b)(2)(E), Dec. 22, 1987, 101 Stat. 1330-470; Pub. L. 100-647,
title VI, Sec. 6245(a), Nov. 10, 1988, 102 Stat. 3750; Pub. L.
101-239, title VII, Sec. 7822(d)(2), Dec. 19, 1989, 103 Stat.
2425.)
-MISC1-
AMENDMENTS
1989 - Subsec. (b)(3)(A)(iii). Pub. L. 101-239 made technical
correction to Pub. L. 100-203, Sec. 10713(b)(2)(E)(iii), see 1987
Amendment note below.
1988 - Subsec. (b)(3)(C). Pub. L. 100-647 added subpar. (C).
1987 - Subsec. (a). Pub. L. 100-203, Sec. 10713(b)(2)(E)(i),
substituted "6851, 6852," for "6851".
Subsec. (b)(3)(A). Pub. L. 100-203, Sec. 10713(b)(2)(E)(ii),
substituted "6851, 6852, or 6861" for "6851 or 6861".
Subsec. (b)(3)(A)(iii). Pub. L. 100-203, Sec.
10713(b)(2)(E)(iii), as amended by Pub. L. 101-239, substituted
"6851(a), 6852(a), nor 6861(a)" for "6851(a) nor 6861(a)".
1976 - Subsec. (a). Pub. L. 94-455, Secs. 1204(c)(7),
1906(b)(13)(A), inserted reference to section 6851, substituted "an
assessment" for "a jeopardy assessment", struck out "or his
delegate" after "Secretary", and substituted "such assessment" for
"the jeopardy assessment".
Subsec. (b)(3)(A). Pub. L. 94-455, Sec. 1204(c)(8), substituted
"an assessment has been made under section 6851 or 6861," for "a
jeopardy assessment has been made under section 6861" in provisions
preceding cl. (i), added cl. (i), redesignated former cl. (i) as
(ii) and substituted "before the issuance of the notice of
deficiency described in section 6851(b) or 6861(b), and the
expiration of the period" for "if section 6861(b) is applicable,
prior to the issuance of the notice of deficiency and the
expiration of the time", redesignated former cl. (ii) as (iii) and
substituted "assessment), before the expiration" for "jeopardy
assessment under section 6861), prior to the expiration" and "if
neither sections 6851(a) nor 6861(a) were applicable" for "if
section 6861(a) were not applicable", and inserted provisions
following cl. (iii).
Subsec. (b)(3)(B)(ii). Pub. L. 94-455, Sec. 1906(b)(13)(A),
struck out "or his delegate" after "Secretary".
Subsec. (b)(3)(C). Pub. L. 94-455, Sec. 1906(a)(38), struck out
subpar. (C) which had limited the applicability of subpars. (A) and
(B) to jeopardy assessments made on or after Jan. 1, 1955, with
respect to taxes imposed by this title, and with respect to taxes
imposed by the Internal Revenue Code of 1939.
Subsec. (c). Pub. L. 94-455, Sec. 1204(c)(9), added subsec. (c).
EFFECTIVE DATE OF 1989 AMENDMENT
Amendment by Pub. L. 101-239 effective as if included in the
provision of the Revenue Act of 1987, Pub. L. 100-203, title X, to
which such amendment relates, see section 7823 of Pub. L. 101-239,
set out as a note under section 26 of this title.
EFFECTIVE DATE OF 1988 AMENDMENT
Section 6245(b) of Pub. L. 100-647 provided that: "The amendments
made by this section [amending this section] shall take effect on
the 90th day after the date of the enactment of this Act [Nov. 10,
1988]."
EFFECTIVE DATE OF 1976 AMENDMENT
Amendment by section 1204(c)(7)-(9) of Pub. L. 94-455 applicable
with respect to action taken under section 6851, 6861, or 6862 of
this title where notice and demand takes place after Feb. 28, 1977,
see section 1204(d) of Pub. L. 94-455, as amended, set out as a
note under section 6851 of this title.
Amendment by section 1906(a)(38), (b)(13)(A) of Pub. L. 94-455
effective on first day of first month which begins more than ninety
days after Oct. 4, 1976, see section 1906(d)(1) of Pub. L. 94-455,
set out as a note under section 6013 of this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 6861, 7103 of this title.
-FOOTNOTE-
(!1) So in original.
-End-
-CITE-
26 USC Sec. 6864 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 70 - JEOPARDY, RECEIVERSHIPS, ETC.
Subchapter A - Jeopardy
PART II - JEOPARDY ASSESSMENTS
-HEAD-
Sec. 6864. Termination of extended period for payment in case of
carryback
-STATUTE-
For termination of extensions of time for payment of income
tax granted to corporations expecting carrybacks in case of
jeopardy, see section 6164(h).
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 837.)
-End-
-CITE-
26 USC PART III - SPECIAL RULES WITH RESPECT TO CERTAIN
CASH 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 70 - JEOPARDY, RECEIVERSHIPS, ETC.
Subchapter A - Jeopardy
PART III - SPECIAL RULES WITH RESPECT TO CERTAIN CASH
-HEAD-
PART III - SPECIAL RULES WITH RESPECT TO CERTAIN CASH
-MISC1-
Sec.
6867. Presumptions where owner of large amount of cash is
not identified.
-End-
-CITE-
26 USC Sec. 6867 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 70 - JEOPARDY, RECEIVERSHIPS, ETC.
Subchapter A - Jeopardy
PART III - SPECIAL RULES WITH RESPECT TO CERTAIN CASH
-HEAD-
Sec. 6867. Presumptions where owner of large amount of cash is not
identified
-STATUTE-
(a) General rule
If the individual who is in physical possession of cash in excess
of $10,000 does not claim such cash -
(1) as his, or
(2) as belonging to another person whose identity the Secretary
can readily ascertain and who acknowledges ownership of such
cash,
then, for purposes of sections 6851 and 6861, it shall be presumed
that such cash represents gross income of a single individual for
the taxable year in which the possession occurs, and that the
collection of tax will be jeopardized by delay.
(b) Rules for assessing
In the case of any assessment resulting from the application of
subsection (a) -
(1) the entire amount of the cash shall be treated as taxable
income for the taxable year in which the possession occurs,
(2) such income shall be treated as taxable at the highest rate
of tax specified in section 1, and
(3) except as provided in subsection (c), the possessor of the
cash shall be treated (solely with respect to such cash) as the
taxpayer for purposes of chapters 63 and 64 and section
7429(a)(1).
(c) Effect of later substitution of true owner
If, after an assessment resulting from the application of
subsection (a), such assessment is abated and replaced by an
assessment against the owner of the cash, such later assessment
shall be treated for purposes of all laws relating to lien, levy
and collection as relating back to the date of the original
assessment.
(d) Definitions
For purposes of this section -
(1) Cash
The term "cash" includes any cash equivalent.
(2) Cash equivalent
The term "cash equivalent" means -
(A) foreign currency,
(B) any bearer obligation, and
(C) any medium of exchange which -
(i) is of a type which has been frequently used in illegal
activities, and
(ii) is specified as a cash equivalent for purposes of this
part in regulations prescribed by the Secretary.
(3) Value of cash equivalent
Any cash equivalent shall be taken into account -
(A) in the case of a bearer obligation, at its face amount,
and
(B) in the case of any other cash equivalent, at its fair
market value.
-SOURCE-
(Added Pub. L. 97-248, title III, Sec. 330(a), Sept. 3, 1982, 96
Stat. 619; amended Pub. L. 100-647, title I, Sec. 1001(a)(1), Nov.
10, 1988, 102 Stat. 3349.)
-MISC1-
AMENDMENTS
1988 - Subsec. (b)(2). Pub. L. 100-647 substituted "the highest
rate of tax specified in section 1" for "a 50-percent rate".
EFFECTIVE DATE OF 1988 AMENDMENT
Amendment by Pub. L. 100-647 effective, except as otherwise
provided, as if included in the provision of the Tax Reform Act of
1986, Pub. L. 99-514, to which such amendment relates, see section
1019(a) of Pub. L. 100-647, set out as a note under section 1 of
this title.
EFFECTIVE DATE
Section 330(c) of Pub. L. 97-248 provided that: "The amendments
made by subsections (a) and (b) [enacting this section] shall take
effect on the day after the date of the enactment of this Act
[Sept. 3, 1982]."
-End-
-CITE-
26 USC Subchapter B - Receiverships, Etc. 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 70 - JEOPARDY, RECEIVERSHIPS, ETC.
Subchapter B - Receiverships, Etc.
-HEAD-
SUBCHAPTER B - RECEIVERSHIPS, ETC.
-MISC1-
Sec.
6871. Claims for income, estate, gift, and certain excise
taxes in receivership proceedings, etc.
6872. Suspension of period on assessment.
6873. Unpaid claims.
AMENDMENTS
1980 - Pub. L. 96-589, Sec. 6(g)(3)(A), (B), Dec. 24, 1980, 94
Stat. 3410, substituted "Receiverships, Etc." for "Bankruptcy and
Receiverships" in subchapter heading, and "gift, and certain excise
taxes in receivership proceedings, etc." for "and gift taxes in
bankruptcy and receivership proceedings" in item 6871.
-SECREF-
SUBCHAPTER REFERRED TO IN OTHER SECTIONS
This subchapter is referred to in sections 6216, 6503, 7811 of
this title.
-End-
-CITE-
26 USC Sec. 6871 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 70 - JEOPARDY, RECEIVERSHIPS, ETC.
Subchapter B - Receiverships, Etc.
-HEAD-
Sec. 6871. Claims for income, estate, gift, and certain excise
taxes in receivership proceedings, etc.
-STATUTE-
(a) Immediate assessment in receivership proceedings
On the appointment of a receiver for the taxpayer in any
receivership proceeding before any court of the United States or of
any State or of the District of Columbia, any deficiency (together
with all interest, additional amounts, and additions to the tax
provided by law) determined by the Secretary in respect of a tax
imposed by subtitle A or B or by chapter 41, 42, 43, or 44 on such
taxpayer may, despite the restrictions imposed by section 6213(a)
on assessments, be immediately assessed if such deficiency has not
theretofore been assessed in accordance with law.
(b) Immediate assessment with respect to certain title 11 cases
Any deficiency (together with all interest, additional amounts,
and additions to the tax provided by law) determined by the
Secretary in respect of a tax imposed by subtitle A or B or by
chapter 41, 42, 43, or 44 on -
(1) the debtor's estate in a case under title 11 of the United
States Code, or
(2) the debtor, but only if liability for such tax has become
res judicata pursuant to a determination in a case under title 11
of the United States Code,
may, despite the restrictions imposed by section 6213(a) on
assessments, be immediately assessed if such deficiency has not
theretofore been assessed in accordance with law.
(c) Claim filed despite pendency of tax court proceedings
In the case of a tax imposed by subtitle A or B or by chapter 41,
42, 43, or 44 -
(1) claims for the deficiency and for interest, additional
amounts, and additions to the tax may be presented, for
adjudication in accordance with law, to the court before which
the receivership proceeding (or the case under title 11 of the
United States Code) is pending, despite the pendency of
proceedings for the redetermination of the deficiency pursuant to
a petition to the Tax Court; but
(2) in the case of a receivership proceeding, no petition for
any such redetermination shall be filed with the Tax Court after
the appointment of the receiver.
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 838; Pub. L. 85-866, title I,
Sec. 88, Sept. 2, 1958, 72 Stat. 1665; Pub. L. 94-455, title XIX,
Secs. 1906(b)(13)(A), (c)(1), Oct. 4, 1976, 90 Stat. 1834, 1835;
Pub. L. 96-589, Sec. 6(g)(1), Dec. 24, 1980, 94 Stat. 3409; Pub. L.
101-239, title VII, Sec. 7841(d)(2), Dec. 19, 1989, 103 Stat.
2428.)
-MISC1-
AMENDMENTS
1989 - Pub. L. 101-239 substituted "or 44" for "44, or 45" in
subsecs. (a), (b), and (c).
1980 - Subsec. (a). Pub. L. 96-589 amended subsec. (a) generally,
substituting reference to appointment of a receiver for the
taxpayer in any receivership proceedings, for reference to
adjudication of bankruptcy of a taxpayer in a liquidating
proceeding, the filing or the approval of a petition of or the
approval of a petition against any taxpayer in any other bankruptcy
proceeding, or the appointment of a receiver for any taxpayer in
any receivership proceeding, and inserted reference to chapters 41,
42, 43, 44, and 45.
Subsecs. (b), (c). Pub. L. 96-589 added subsec. (b), redesignated
former subsec. (b) as (c), inserted reference to chapters 41, 42,
43, 44, and 45, and struck out reference to bankruptcy proceedings.
1976 - Subsec. (a). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck
out "or his delegate" after "Secretary".
Pub. L. 94-455, Sec. 1906(c)(1), struck out "or Territory" after
"any State".
1958 - Subsec. (a). Pub. L. 85-866, Sec. 88(a), substituted "the
filing or (where approval is required by the Bankruptcy Act) the
approval of a petition of, or the approval of a petition against,
any taxpayer" for "the approval of a petition of, or against, any
taxpayer".
Subsec. (b). Pub. L. 85-866, Sec. 88(b), substituted "the filing
or (where approval is required by the Bankruptcy Act) the approval
of a petition of, or the approval of a petition against, any
taxpayer" for "approval of the petition".
EFFECTIVE DATE OF 1980 AMENDMENT
Amendment by Pub. L. 96-589 effective Oct. 1, 1979, but not
applicable to proceedings under Title 11, Bankruptcy, commenced
before Oct. 1, 1979, see section 7(e) of Pub. L. 96-589, set out as
a note under section 108 of this title.
EFFECTIVE DATE OF 1976 AMENDMENT
Amendment by Pub. L. 94-455 effective on first day of first month
which begins more than ninety days after Oct. 4, 1976, see section
1906(d)(1) of Pub. L. 94-455, set out as a note under section 6013
of this title.
EFFECTIVE DATE OF 1958 AMENDMENT
Amendment by Pub. L. 85-866 effective Aug. 17, 1954, see section
1(c)(2) of Pub. L. 85-866, set out as a note under section 165 of
this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in title 5 section 5568; title 37
section 558.
-End-
-CITE-
26 USC Sec. 6872 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 70 - JEOPARDY, RECEIVERSHIPS, ETC.
Subchapter B - Receiverships, Etc.
-HEAD-
Sec. 6872. Suspension of period on assessment
-STATUTE-
If the regulations issued pursuant to section 6036 require the
giving of notice by any fiduciary in any case under title 11 of the
United States Code, or by a receiver in any other court proceeding,
to the Secretary of his qualification as such, the running of the
period of limitations on the making of assessments shall be
suspended for the period from the date of the institution of the
proceeding to a date 30 days after the date upon which the notice
from the receiver or other fiduciary is received by the Secretary;
but the suspension under this sentence shall in no case be for a
period in excess of 2 years.
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 838; Pub. L. 94-455, title XIX,
Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 96-589,
Sec. 6 (i)(12), Dec. 24, 1980, 94 Stat. 3411.)
-MISC1-
AMENDMENTS
1980 - Pub. L. 96-589 substituted "any case under title 11 of the
United States Code" for "any proceeding under the Bankruptcy Act".
1976 - Pub. L. 94-455 struck out "or his delegate" after
"Secretary" wherever appearing.
EFFECTIVE DATE OF 1980 AMENDMENT
Amendment by Pub. L. 96-589 effective Oct. 1, 1979, but not
applicable to proceedings under Title 11, Bankruptcy, commenced
before Oct. 1, 1979, see section 7(e) of Pub. L. 96-589, set out as
a note under section 108 of this title.
-End-
-CITE-
26 USC Sec. 6873 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 70 - JEOPARDY, RECEIVERSHIPS, ETC.
Subchapter B - Receiverships, Etc.
-HEAD-
Sec. 6873. Unpaid claims
-STATUTE-
(a) General rule
Any portion of a claim for taxes allowed in a receivership
proceeding which is unpaid shall be paid by the taxpayer upon
notice and demand from the Secretary after the termination of such
proceeding.
(b) Cross references
(1) For suspension of running of period of limitations on
collection, see section 6503(b).
(2) For extension of time for payment, see section 6161(c).
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 838; Pub. L. 94-455, title XIX,
Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 96-589,
Sec. 6(g)(2), Dec. 24, 1980, 94 Stat. 3409.)
-MISC1-
AMENDMENTS
1980 - Subsec. (a). Pub. L. 96-589 struck out reference to
proceedings under the Bankruptcy Act.
1976 - Subsec. (a). Pub. L. 94-455 struck out "or his delegate"
after "Secretary".
EFFECTIVE DATE OF 1980 AMENDMENT
Amendment by Pub. L. 96-589 effective Oct. 1, 1979, but not
applicable to proceedings under Title 11, Bankruptcy, commenced
before Oct. 1, 1979, see section 7(e) of Pub. L. 96-589, set out as
a note under section 108 of this title.
-End-
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