-CITE-
26 USC CHAPTER 76 - JUDICIAL PROCEEDINGS 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 76 - JUDICIAL PROCEEDINGS
-HEAD-
CHAPTER 76 - JUDICIAL PROCEEDINGS
-MISC1-
Subchapter Sec.(!1)
A. Civil actions by the United States 7401
B. Proceedings by Taxpayers and Third Parties 7421
C. The Tax Court 7441
D. Court review of Tax Court decisions 7481
E. Burden of proof 7491
AMENDMENTS
1998 - Pub. L. 105-206, title III, Sec. 3001(b), July 22, 1998,
112 Stat. 727, added item for subchapter E.
1976 - Pub. L. 94-455, title XIX, Sec. 1952(n)(4)(B), Oct. 4,
1976, 90 Stat. 1846, struck out item for subchapter E
"Miscellaneous provisions".
1966 - Pub. L. 89-719, title I, Sec. 110(d)(3), Nov. 2, 1966, 80
Stat. 1145, substituted "Taxpayers and Third Parties" for
"taxpayers" in item for subchapter B.
-SECREF-
CHAPTER REFERRED TO IN OTHER SECTIONS
This chapter is referred to in sections 7801, 7851 of this title.
-FOOTNOTE-
(!1) Section numbers editorially supplied.
-End-
-CITE-
26 USC Subchapter A - Civil Actions by the United States 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 76 - JUDICIAL PROCEEDINGS
Subchapter A - Civil Actions by the United States
-HEAD-
SUBCHAPTER A - CIVIL ACTIONS BY THE UNITED STATES
-MISC1-
Sec.
7401. Authorization.
7402. Jurisdiction of district courts.
7403. Action to enforce lien or to subject property to
payment of tax.
7404. Authority to bring civil action for estate taxes.
7405. Action for recovery of erroneous refunds.
7406. Disposition of judgments and moneys recovered.
7407. Action to enjoin income tax return preparers.
7408. Action to enjoin promoters of abusive tax shelters,
etc.
7409. Action to enjoin flagrant political expenditures of
section 501(c)(3) organizations.
7410. Cross references.
AMENDMENTS
1987 - Pub. L. 100-203, title X, Sec. 10713(a)(2), Dec. 22, 1987,
101 Stat. 1330-469, added item 7409 and redesignated former item
7409 as 7410.
1982 - Pub. L. 97-248, title III, Sec. 321(b), Sept. 3, 1982, 96
Stat. 612, added item 7408 and redesignated former item 7408 as
7409.
1976 - Pub. L. 94-455, title XII, Sec. 1203(i)(4), Oct. 4, 1976,
90 Stat. 1695, added item 7407 and redesignated former item 7407 as
7408.
-End-
-CITE-
26 USC Sec. 7401 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 76 - JUDICIAL PROCEEDINGS
Subchapter A - Civil Actions by the United States
-HEAD-
Sec. 7401. Authorization
-STATUTE-
No civil action for the collection or recovery of taxes, or of
any fine, penalty, or forfeiture, shall be commenced unless the
Secretary authorizes or sanctions the proceedings and the Attorney
General or his delegate directs that the action be commenced.
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 873; 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".
-End-
-CITE-
26 USC Sec. 7402 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 76 - JUDICIAL PROCEEDINGS
Subchapter A - Civil Actions by the United States
-HEAD-
Sec. 7402. Jurisdiction of district courts
-STATUTE-
(a) To issue orders, processes, and judgments
The district courts of the United States at the instance of the
United States shall have such jurisdiction to make and issue in
civil actions, writs and orders of injunction, and of ne exeat
republica, orders appointing receivers, and such other orders and
processes, and to render such judgments and decrees as may be
necessary or appropriate for the enforcement of the internal
revenue laws. The remedies hereby provided are in addition to and
not exclusive of any and all other remedies of the United States in
such courts or otherwise to enforce such laws.
(b) To enforce summons
If any person is summoned under the internal revenue laws to
appear, to testify, or to produce books, papers, or other data, the
district court of the United States for the district in which such
person resides or may be found shall have jurisdiction by
appropriate process to compel such attendance, testimony, or
production of books, papers, or other data.
(c) For damages to United States officers or employees
Any officer or employee of the United States acting under
authority of this title, or any person acting under or by authority
of any such officer or employee, receiving any injury to his person
or property in the discharge of his duty shall be entitled to
maintain an action for damages therefor, in the district court of
the United States, in the district wherein the party doing the
injury may reside or shall be found.
[(d) Repealed. Pub. L. 92-310, title II, Sec. 230(d), June 6, 1972,
86 Stat. 209]
(e) To quiet title
The United States district courts shall have jurisdiction of any
action brought by the United States to quiet title to property if
the title claimed by the United States to such property was derived
from enforcement of a lien under this title.
(f) General jurisdiction
For general jurisdiction of the district courts of the United
States in civil actions involving internal revenue, see section
1340 of title 28 of the United States Code.
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 873; Pub. L. 89-719, title I,
Sec. 107(a), Nov. 2, 1966, 80 Stat. 1140; Pub. L. 93-310, title II,
Sec. 230(d), June 6, 1972, 86 Stat. 209.)
-MISC1-
AMENDMENTS
1972 - Subsec. (d). Pub. L. 92-310 repealed subsec. (d) which
granted district courts jurisdiction of actions brought on official
bonds.
1966 - Subsecs. (e), (f). Pub. L. 89-719 added subsec. (e) and
redesignated former subsec. (e) as (f).
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.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 7407, 7408, 7409, 7604 of
this title.
-End-
-CITE-
26 USC Sec. 7403 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 76 - JUDICIAL PROCEEDINGS
Subchapter A - Civil Actions by the United States
-HEAD-
Sec. 7403. Action to enforce lien or to subject property to payment
of tax
-STATUTE-
(a) Filing
In any case where there has been a refusal or neglect to pay any
tax, or to discharge any liability in respect thereof, whether or
not levy has been made, the Attorney General or his delegate, at
the request of the Secretary, may direct a civil action to be filed
in a district court of the United States to enforce the lien of the
United States under this title with respect to such tax or
liability or to subject any property, of whatever nature, of the
delinquent, or in which he has any right, title, or interest, to
the payment of such tax or liability. For purposes of the preceding
sentence, any acceleration of payment under section 6166(g) shall
be treated as a neglect to pay tax.
(b) Parties
All persons having liens upon or claiming any interest in the
property involved in such action shall be made parties thereto.
(c) Adjudication and decree
The court shall, after the parties have been duly notified of the
action, proceed to adjudicate all matters involved therein and
finally determine the merits of all claims to and liens upon the
property, and, in all cases where a claim or interest of the United
States therein is established, may decree a sale of such property,
by the proper officer of the court, and a distribution of the
proceeds of such sale according to the findings of the court in
respect to the interests of the parties and of the United States.
If the property is sold to satisfy a first lien held by the United
States, the United States may bid at the sale such sum, not
exceeding the amount of such lien with expenses of sale, as the
Secretary directs.
(d) Receivership
In any such proceeding, at the instance of the United States, the
court may appoint a receiver to enforce the lien, or, upon
certification by the Secretary during the pendency of such
proceedings that it is in the public interest, may appoint a
receiver with all the powers of a receiver in equity.
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 874; Pub. L. 89-719, title I,
Sec. 107(b), Nov. 2, 1966, 80 Stat. 1140; Pub. L. 94-455, title
XIX, Sec. 1906(b)(13)(A), title XX, Sec. 2004(f)(2), Oct. 4, 1976,
90 Stat. 1834, 1872; Pub. L. 97-34, title IV, Sec. 422(e)(8), Aug.
13, 1981, 95 Stat. 316.)
-MISC1-
AMENDMENTS
1981 - Subsec. (a). Pub. L. 97-34 struck out "or 6166A(h)" after
"section 6166(g)".
1976 - Subsec. (a). Pub. L. 94-455, Secs. 1906(b)(13)(A),
2004(f)(2), struck out "or his delegate" after "Secretary" and
inserted provisions relating to the acceleration of payment under
section 6166(g) or 6166A(h).
Subsecs. (c), (d). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck
out "or his delegate" after "Secretary".
1966 - Subsec. (c). Pub. L. 89-719 inserted sentence permitting
the United States, if the property is sold to satisfy a first lien
held by the United States, to bid at the sale such sum, not more
than the amount of such lien with expenses of sale, as the
Secretary or his delegate directs.
EFFECTIVE DATE OF 1981 AMENDMENT
Amendment by Pub. L. 97-34 applicable to estates of decedents
dying after Dec. 31, 1981, see section 422(f)(1) of Pub. L. 97-34,
set out as a note under section 6166 of this title.
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. 7404 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 76 - JUDICIAL PROCEEDINGS
Subchapter A - Civil Actions by the United States
-HEAD-
Sec. 7404. Authority to bring civil action for estate taxes
-STATUTE-
If the estate tax imposed by chapter 11 is not paid on or before
the due date thereof, the Secretary shall proceed to collect the
tax under the provisions of general law; or appropriate proceedings
in the name of the United States may be commenced in any court of
the United States having jurisdiction to subject the property of
the decedent to be sold under the judgment or decree of the court.
From the proceeds of such sale the amount of the tax, together with
the costs and expenses of every description to be allowed by the
court, shall be first paid, and the balance shall be deposited
according to the order of the court, to be paid under its direction
to the person entitled thereto. This section insofar as it applies
to the collection of a deficiency shall be subject to the
provisions of sections 6213 and 6601.
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 874; 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".
-End-
-CITE-
26 USC Sec. 7405 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 76 - JUDICIAL PROCEEDINGS
Subchapter A - Civil Actions by the United States
-HEAD-
Sec. 7405. Action for recovery of erroneous refunds
-STATUTE-
(a) Refunds after limitation period
Any portion of a tax imposed by this title, refund of which is
erroneously made, within the meaning of section 6514, may be
recovered by civil action brought in the name of the United States.
(b) Refunds otherwise erroneous
Any portion of a tax imposed by this title which has been
erroneously refunded (if such refund would not be considered as
erroneous under section 6514) may be recovered by civil action
brought in the name of the United States.
(c) Interest
For provision relating to interest on erroneous refunds, see
section 6602.
(d) Periods of limitation
For periods of limitations on actions under this section, see
section 6532(b).
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 874.)
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 6514, 6532, 6602 of this
title.
-End-
-CITE-
26 USC Sec. 7406 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 76 - JUDICIAL PROCEEDINGS
Subchapter A - Civil Actions by the United States
-HEAD-
Sec. 7406. Disposition of judgments and moneys recovered
-STATUTE-
All judgments and moneys recovered or received for taxes, costs,
forfeitures, and penalties shall be paid to the Secretary as
collections of internal revenue taxes.
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 875; 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".
-End-
-CITE-
26 USC Sec. 7407 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 76 - JUDICIAL PROCEEDINGS
Subchapter A - Civil Actions by the United States
-HEAD-
Sec. 7407. Action to enjoin income tax return preparers
-STATUTE-
(a) Authority to seek injunction
A civil action in the name of the United States to enjoin any
person who is an income tax return preparer from further engaging
in any conduct described in subsection (b) or from further action
as an income tax return preparer may be commenced at the request of
the Secretary. Any action under this section shall be brought in
the District Court of the United States for the district in which
the income tax preparer resides or has his principal place of
business or in which the taxpayer with respect to whose income tax
return the action is brought resides. The court may exercise its
jurisdiction over such action (as provided in section 7402(a))
separate and apart from any other action brought by the United
States against such income tax preparer or any taxpayer.
(b) Adjudication and decrees
In any action under subsection (a), if the court finds -
(1) that an income tax return preparer has -
(A) engaged in any conduct subject to penalty under section
6694 or 6695, or subject to any criminal penalty provided by
this title,
(B) misrepresented his eligibility to practice before the
Internal Revenue Service, or otherwise misrepresented his
experience or education as an income tax return preparer,
(C) guaranteed the payment of any tax refund or the allowance
of any tax credit, or
(D) engaged in any other fraudulent or deceptive conduct
which substantially interferes with the proper administration
of the Internal Revenue laws, and
(2) that injunctive relief is appropriate to prevent the
recurrence of such conduct,
the court may enjoin such person from further engaging in such
conduct. If the court finds that an income tax return preparer has
continually or repeatedly engaged in any conduct described in
subparagraphs (A) through (D) of this subsection and that an
injunction prohibiting such conduct would not be sufficient to
prevent such person's interference with the proper administration
of this title, the court may enjoin such person from acting as an
income tax return preparer.
-SOURCE-
(Added Pub. L. 94-455, title XII, Sec. 1203(g), Oct. 4, 1976, 90
Stat. 1693; amended Pub. L. 101-239, title VII, Sec. 7738(a), (b),
Dec. 19, 1989, 103 Stat. 2404.)
-MISC1-
PRIOR PROVISIONS
A prior section 7407 was renumbered section 7410 of this title.
AMENDMENTS
1989 - Subsec. (a). Pub. L. 101-239, Sec. 7738(b), substituted "A
civil" for "Except as provided in subsection (c), a civil".
Subsec. (c). Pub. L. 101-239, Sec. 7738(a), struck out subsec.
(c) relating to bonds to stay injunctions.
EFFECTIVE DATE OF 1989 AMENDMENT
Section 7738(c) of Pub. L. 101-239 provided that: "The amendments
made by this section [amending this section] shall apply to actions
commenced after December 31, 1989."
EFFECTIVE DATE
Section applicable to documents prepared after Dec. 31, 1976, see
section 1203(j) of Pub. L. 94-455, set out as an Effective Date of
1976 Amendment note under section 7701 of this title.
-End-
-CITE-
26 USC Sec. 7408 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 76 - JUDICIAL PROCEEDINGS
Subchapter A - Civil Actions by the United States
-HEAD-
Sec. 7408. Action to enjoin promoters of abusive tax shelters, etc.
-STATUTE-
(a) Authority to seek injunction
A civil action in the name of the United States to enjoin any
person from further engaging in conduct subject to penalty under
section 6700 (relating to penalty for promoting abusive tax
shelters, etc.) or section 6701 (relating to penalties for aiding
and abetting understatement of tax liability) may be commenced at
the request of the Secretary. Any action under this section shall
be brought in the district court of the United States for the
district in which such person resides, has his principal place of
business, or has engaged in conduct subject to penalty under
section 6700 or section 6701. The court may exercise its
jurisdiction over such action (as provided in section 7402(a))
separate and apart from any other action brought by the United
States against such person.
(b) Adjudication and decree
In any action under subsection (a), if the court finds -
(1) that the person has engaged in any conduct subject to
penalty under section 6700 (relating to penalty for promoting
abusive tax shelters, etc.) or section 6701 (relating to
penalties for aiding and abetting understatement of tax
liability), and
(2) that injunctive relief is appropriate to prevent recurrence
of such conduct,
the court may enjoin such person from engaging in such conduct or
in any other activity subject to penalty under section 6700 or
section 6701.
(c) Citizens and residents outside the United States
If any citizen or resident of the United States does not reside
in, and does not have his principal place of business in, any
United States judicial district, such citizen or resident shall be
treated for purposes of this section as residing in the District of
Columbia.
-SOURCE-
(Added Pub. L. 97-248, title III, Sec. 321(a), Sept. 3, 1982, 96
Stat. 612; amended Pub. L. 98-369, div. A, title I, Sec. 143(b),
July 18, 1984, 98 Stat. 682.)
-MISC1-
PRIOR PROVISIONS
A prior section 7408 was renumbered section 7410 of this title.
AMENDMENTS
1984 - Subsec. (a). Pub. L. 98-369, Sec. 143(b)(1), (2), inserted
"or section 6701 (relating to penalties for aiding and abetting
understatement of tax liability)" and inserted reference to section
6701 at end of second sentence.
Subsec. (b). Pub. L. 98-369, Sec. 143(b)(1), (3), inserted "or
section 6701 (relating to penalties for aiding and abetting
understatement of tax liability)," in par. (1) and inserted
reference to section 6701 at end.
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by Pub. L. 98-369 effective on day after July 18, 1984,
see section 143(c) of Pub. L. 98-369, set out as a note under
section 6700 of this title.
EFFECTIVE DATE
Section 321(c) of Pub. L. 97-248 provided that: "The amendments
made by this section [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 Sec. 7409 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 76 - JUDICIAL PROCEEDINGS
Subchapter A - Civil Actions by the United States
-HEAD-
Sec. 7409. Action to enjoin flagrant political expenditures of
section 501(c)(3) organizations
-STATUTE-
(a) Authority to seek injunction
(1) In general
If the requirements of paragraph (2) are met, a civil action in
the name of the United States may be commenced at the request of
the Secretary to enjoin any section 501(c)(3) organization from
further making political expenditures and for such other relief
as may be appropriate to ensure that the assets of such
organization are preserved for charitable or other purposes
specified in section 501(c)(3). Any action under this section
shall be brought in the district court of the United States for
the district in which such organization has its principal place
of business or for any district in which it has made political
expenditures. The court may exercise its jurisdiction over such
action (as provided in section 7402(a)) separate and apart from
any other action brought by the United States against such
organization.
(2) Requirements
An action may be brought under subsection (a) only if -
(A) the Internal Revenue Service has notified the
organization of its intention to seek an injunction under this
section if the making of political expenditures does not
immediately cease, and
(B) the Commissioner of Internal Revenue has personally
determined that -
(i) such organization has flagrantly participated in, or
intervened in (including the publication or distribution of
statements), any political campaign on behalf of (or in
opposition to) any candidate for public office, and
(ii) injunctive relief is appropriate to prevent future
political expenditures.
(b) Adjudication and decree
In any action under subsection (a), if the court finds on the
basis of clear and convincing evidence that -
(1) such organization has flagrantly participated in, or
intervened in (including the publication or distribution of
statements), any political campaign on behalf of (or in
opposition to) any candidate for public office, and
(2) injunctive relief is appropriate to prevent future
political expenditures,
the court may enjoin such organization from making political
expenditures and may grant such other relief as may be appropriate
to ensure that the assets of such organization are preserved for
charitable or other purposes specified in section 501(c)(3).
(c) Definitions
For purposes of this section, the terms "section 501(c)(3)
organization" and "political expenditures" have the respective
meanings given to such terms by section 4955.
-SOURCE-
(Added Pub. L. 100-203, title X, Sec. 10713(a)(1), Dec. 22, 1987,
101 Stat. 1330-468.)
-MISC1-
PRIOR PROVISIONS
A prior section 7409 was renumbered section 7410 of this title.
-End-
-CITE-
26 USC Sec. 7410 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 76 - JUDICIAL PROCEEDINGS
Subchapter A - Civil Actions by the United States
-HEAD-
Sec. 7410. Cross references
-STATUTE-
(1) For provisions for collecting taxes in general, see
chapter 64.
(2) For venue in a civil action for the collection of any
tax, see section 1396 of Title 28 of the United States Code.
(3) For venue of a proceeding for the recovery of any fine,
penalty, or forfeiture, see section 1395 of Title 28 of the
United States Code.
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 875, Sec. 7407; renumbered Sec.
7408, Pub. L. 94-455, title XII, Sec. 1203(g), Oct. 4, 1976, 90
Stat. 1693; renumbered Sec. 7409, Pub. L. 97-248, title III, Sec.
321(a), Sept. 3, 1982, 96 Stat. 612; renumbered Sec. 7410, Pub. L.
100-203, title X, Sec. 10713(a)(1), Dec. 22, 1987, 101 Stat.
1330-468.)
-End-
-CITE-
26 USC Subchapter B - Proceedings by Taxpayers and Third
Parties 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 76 - JUDICIAL PROCEEDINGS
Subchapter B - Proceedings by Taxpayers and Third Parties
-HEAD-
SUBCHAPTER B - PROCEEDINGS BY TAXPAYERS AND THIRD PARTIES
-MISC1-
Sec.
7421. Prohibition of suits to restrain assessment or
collection.
7422. Civil actions for refund.
7423. Repayments to officers or employees.
7424. Intervention.
7425. Discharge of liens.
7426. Civil actions by persons other than taxpayers.
7427. Income tax return preparers.
7428. Declaratory judgments relating to status and
classification of organizations under section
501(c)(3), etc.
7429. Review of jeopardy levy or assessment procedures.
7430. Awarding of costs and certain fees.
7431. Civil damages for unauthorized inspection or
disclosure of returns and return information.
7432. Civil damages for failure to release lien.
7433. Civil damages for certain unauthorized collection
actions.
7434. Civil damages for fraudulent filing of information
returns.
7435. Civil damages for unauthorized enticement of
information disclosure.
7436. Proceedings for determination of employment status.
7437. Cross references.
AMENDMENTS
1997 - Pub. L. 105-35, Sec. 3(d)(5), Aug. 5, 1997, 111 Stat.
1106, inserted "inspection or" before "disclosure" in item 7431.
Pub. L. 105-34, title XIV, Sec. 1454(b)(4), Aug. 5, 1997, 111
Stat. 1057, added items 7436 and 7437 and struck out former item
7436 "Cross references".
1996 - Pub. L. 104-168, title VI, Sec. 601(b), title XII, Sec.
1203(b), July 30, 1996, 110 Stat. 1462, 1471, added items 7434 and
7435 and redesignated former item 7434 as 7436.
1988 - Pub. L. 100-647, title VI, Secs. 6237(e)(4), 6239(c),
6240(b), 6241(c), Nov. 10, 1988, 102 Stat. 3743, 3746-3748,
inserted "levy or" after "jeopardy" in item 7429, struck out
"court" after "Awarding of" in item 7430, added items 7432 and
7433, and redesignated former item 7432 as 7434.
1982 - Pub. L. 97-248, title II, Sec. 292(d)(1), title III, Sec.
357(b)(3), Sept. 3, 1982, 96 Stat. 574, 646, added items 7430 and
7431 and redesignated former item 7430 as 7432.
1976 - Pub. L. 94-455, title XII, Secs. 1203(b)(2)(B),
1204(c)(13), title XIII, Sec. 1306(b)(6), Oct. 4, 1976, 90 Stat.
1690, 1699, 1719, added items 7427 to 7429 and redesignated former
item 7427 as 7430.
1966 - Pub. L. 89-719, title I, Sec. 110(d)(1), (2), Nov. 2,
1966, 80 Stat. 1145, inserted "and Third Parties" in subchapter
heading, substituted "Intervention" for "Civil action to clear
title to property" in item 7424, added items 7425 and 7426, and
redesignated former item 7425 as 7427.
-SECREF-
SUBCHAPTER REFERRED TO IN OTHER SECTIONS
This subchapter is referred to in section 6103 of this title.
-End-
-CITE-
26 USC Sec. 7421 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 76 - JUDICIAL PROCEEDINGS
Subchapter B - Proceedings by Taxpayers and Third Parties
-HEAD-
Sec. 7421. Prohibition of suits to restrain assessment or
collection
-STATUTE-
(a) Tax
Except as provided in sections 6015(e), 6212(a) and (c), 6213(a),
6225(b), 6246(b), 6330(e)(1), 6331(i), 6672(c), 6694(c), and
7426(a) and (b)(1), 7429(b), and 7436, no suit for the purpose of
restraining the assessment or collection of any tax shall be
maintained in any court by any person, whether or not such person
is the person against whom such tax was assessed.
(b) Liability of transferee or fiduciary
No suit shall be maintained in any court for the purpose of
restraining the assessment or collection (pursuant to the
provisions of chapter 71) of -
(1) the amount of the liability, at law or in equity, of a
transferee of property of a taxpayer in respect of any internal
revenue tax, or
(2) the amount of the liability of a fiduciary under section
3713(b) of title 31, United States Code (!1) in respect of any
such tax.
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 876; Pub. L. 89-719, title I,
Sec. 110(c), Nov. 2, 1966, 80 Stat. 1144; Pub. L. 94-455, title
XII, Sec. 1204(c)(11), Oct. 4, 1976, 90 Stat. 1699; Pub. L. 95-628,
Sec. 9(b)(1), Nov. 10, 1978, 92 Stat. 3633; Pub. L. 97-258, Sec.
3(f)(13), Sept. 13, 1982, 96 Stat. 1065; Pub. L. 105-34, title XII,
Secs. 1222(b)(1), 1239(e)(3), title XIV, Sec. 1454(b)(2), Aug. 5,
1997, 111 Stat. 1019, 1028, 1057; Pub. L. 105-206, title III, Sec.
3201(e)(3), July 22, 1998, 112 Stat. 740; Pub. L. 105-277, div. J,
title IV, Sec. 4002(c)(1), (f), Oct. 21, 1998, 112 Stat. 2681-906,
2681-907; Pub. L. 106-554, Sec. 1(a)(7) [title III, Secs.
313(b)(2)(B), 319(24)], Dec. 21, 2000, 114 Stat. 2763, 2763A-642,
2763A-647.)
-MISC1-
AMENDMENTS
2000 - Subsec. (a). Pub. L. 106-554 inserted "6330(e)(1)," after
"6246(b)," and substituted "6672(c)" for "6672(b)".
1998 - Subsec. (a). Pub. L. 105-277 substituted "6015(e)" for
"6015(d)" and inserted "6331(i)," after "6246(b),".
Pub. L. 105-206 inserted "6015(d)," after "sections".
1997 - Subsec. (a). Pub. L. 105-34, Sec. 1454(b)(2), substituted
"7429(b), and 7436" for "and 7429(b)".
Pub. L. 105-34, Sec. 1239(e)(3), inserted "6225(b)," after
"6213(a),".
Pub. L. 105-34, Sec. 1222(b)(1), inserted "6246(b)," after
"6213(a),".
1982 - Subsec. (b)(2). Pub. L. 97-258 substituted "section
3713(b) of title 31, United States Code" for "section 3467 of the
Revised Statutes (31 U.S.C. 192)".
1978 - Subsec. (a). Pub. L. 95-628 inserted references to
sections 6672(b) and 6694(c).
1976 - Subsec. (a). Pub. L. 94-455 substituted "7426(a) and
(b)(1), and 7429(b)" for "and 7426(a) and (b)(1)".
1966 - Subsec. (a). Pub. L. 89-719 inserted reference to section
7426(a), (b)(1), and "by any person, whether or not such person is
the person against whom such tax was assessed".
EFFECTIVE DATE OF 1998 AMENDMENTS
Amendment by Pub. L. 105-277 effective as if included in the
provision of the Internal Revenue Service Restructuring and Reform
Act of 1998, Pub. L. 105-206, to which such amendment relates, see
section 4002(k) of Pub. L. 105-277, set out as a note under section
1 of this title.
Amendment by Pub. L. 105-206 applicable to any liability for tax
arising after July 22, 1998, and any liability for tax arising on
or before such date but remaining unpaid as of such date, see
section 3201(g)(1) of Pub. L. 105-206, set out as a note under
section 6015 of this title.
EFFECTIVE DATE OF 1997 AMENDMENT
Amendment by section 1222(b)(1) of Pub. L. 105-34 applicable to
partnership taxable years beginning after Dec. 31, 1997, see
section 1226 of Pub. L. 105-34, as amended, set out as a note under
section 6011 of this title.
Amendment by section 1239(e)(3) of Pub. L. 105-34 applicable to
partnership taxable years ending after Aug. 5, 1997, see section
1239(f) of Pub. L. 105-34, set out as a note under section 6225 of
this title.
Amendment by section 1454(b)(2) of Pub. L. 105-34, effective Aug.
5, 1997, see section 1454(c) of Pub. L. 105-34, set out as a note
under section 6511 of this title.
EFFECTIVE DATE OF 1978 AMENDMENT
Amendment by Pub. L. 95-628 applicable with respect to penalties
assessed more than 60 days after Nov. 10, 1978, see section 9(c) of
Pub. L. 95-628, set out as a note under section 6672 of this title.
EFFECTIVE DATE OF 1976 AMENDMENT
Amendment by 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.
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.
PROHIBITION ON REQUESTS TO TAXPAYERS TO GIVE UP RIGHTS TO BRING
ACTIONS
Pub. L. 105-206, title III, Sec. 3468, July 22, 1998, 112 Stat.
770, provided that:
"(a) Prohibition. - No officer or employee of the United States
may request a taxpayer to waive the taxpayer's right to bring a
civil action against the United States or any officer or employee
of the United States for any action taken in connection with the
internal revenue laws.
"(b) Exceptions. - Subsection (a) shall not apply in any case
where -
"(1) a taxpayer waives the right described in subsection (a)
knowingly and voluntarily; or
"(2) the request by the officer or employee is made in person
and the taxpayer's attorney or other federally authorized tax
practitioner (within the meaning of section 7525(a)(3)(A) of the
Internal Revenue Code of 1986) is present, or the request is made
in writing to the taxpayer's attorney or other representative."
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 4961, 6015, 6207, 6213,
6246, 6330, 6331, 6672, 6694, 6703, 6904 of this title.
-FOOTNOTE-
(!1) So in original. Probably should be followed by a comma.
-End-
-CITE-
26 USC Sec. 7422 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 76 - JUDICIAL PROCEEDINGS
Subchapter B - Proceedings by Taxpayers and Third Parties
-HEAD-
Sec. 7422. Civil actions for refund
-STATUTE-
(a) No suit prior to filing claim for refund
No suit or proceeding shall be maintained in any court for the
recovery of any internal revenue tax alleged to have been
erroneously or illegally assessed or collected, or of any penalty
claimed to have been collected without authority, or of any sum
alleged to have been excessive or in any manner wrongfully
collected, until a claim for refund or credit has been duly filed
with the Secretary, according to the provisions of law in that
regard, and the regulations of the Secretary established in
pursuance thereof.
(b) Protest or duress
Such suit or proceeding may be maintained whether or not such
tax, penalty, or sum has been paid under protest or duress.
(c) Suits against collection officer a bar
A suit against any officer or employee of the United States (or
former officer or employee) or his personal representative for the
recovery of any internal revenue tax alleged to have been
erroneously or illegally assessed or collected, or of any penalty
claimed to have been collected without authority, or of any sum
alleged to have been excessive or in any manner wrongfully
collected shall be treated as if the United States had been a party
to such suit in applying the doctrine of res judicata in all suits
in respect of any internal revenue tax, and in all proceedings in
the Tax Court and on review of decisions of the Tax Court.
(d) Credit treated as payment
The credit of an overpayment of any tax in satisfaction of any
tax liability shall, for the purpose of any suit for refund of such
tax liability so satisfied, be deemed to be a payment in respect of
such tax liability at the time such credit is allowed.
(e) Stay of proceedings
If the Secretary prior to the hearing of a suit brought by a
taxpayer in a district court or the United States Court of Federal
Claims for the recovery of any income tax, estate tax, gift tax, or
tax imposed by chapter 41, 42, 43, or 44 (or any penalty relating
to such taxes) mails to the taxpayer a notice that a deficiency has
been determined in respect of the tax which is the subject matter
of taxpayer's suit, the proceedings in taxpayer's suit shall be
stayed during the period of time in which the taxpayer may file a
petition with the Tax Court for a redetermination of the asserted
deficiency, and for 60 days thereafter. If the taxpayer files a
petition with the Tax Court, the district court or the United
States Court of Federal Claims, as the case may be, shall lose
jurisdiction of taxpayer's suit to whatever extent jurisdiction is
acquired by the Tax Court of the subject matter of taxpayer's suit
for refund. If the taxpayer does not file a petition with the Tax
Court for a redetermination of the asserted deficiency, the United
States may counterclaim in the taxpayer's suit, or intervene in the
event of a suit as described in subsection (c) (relating to suits
against officers or employees of the United States), within the
period of the stay of proceedings notwithstanding that the time for
such pleading may have otherwise expired. The taxpayer shall have
the burden of proof with respect to the issues raised by such
counterclaim or intervention of the United States except as to the
issue of whether the taxpayer has been guilty of fraud with intent
to evade tax. This subsection shall not apply to a suit by a
taxpayer which, prior to the date of enactment of this title, is
commenced, instituted, or pending in a district court or the United
States Court of Federal Claims for the recovery of any income tax,
estate tax, or gift tax (or any penalty relating to such taxes).
(f) Limitation on right of action for refund
(1) General rule
A suit or proceeding referred to in subsection (a) may be
maintained only against the United States and not against any
officer or employee of the United States (or former officer or
employee) or his personal representative. Such suit or proceeding
may be maintained against the United States notwithstanding the
provisions of section 2502 of title 28 of the United States Code
(relating to aliens' privilege to sue) and notwithstanding the
provisions of section 1502 of such title 28 (relating to certain
treaty cases).
(2) Misjoinder and change of venue
If a suit or proceeding brought in a United States district
court against an officer or employee of the United States (or
former officer or employee) or his personal representative is
improperly brought solely by virtue of paragraph (1), the court
shall order, upon such terms as are just, that the pleadings be
amended to substitute the United States as a party for such
officer or employee as of the time such action commenced, upon
proper service of process on the United States. Such suit or
proceeding shall upon request by the United States be transferred
to the district or division where it should have been brought if
such action initially had been brought against the United States.
(g) Special rules for certain excise taxes imposed by chapter 42 or
43
(1) Right to bring actions
(A) In general
With respect to any taxable event, payment of the full amount
of the first tier tax shall constitute sufficient payment in
order to maintain an action under this section with respect to
the second tier tax.
(B) Definitions
For purposes of subparagraph (A), the terms "taxable event",
"first tier tax", and "second tier tax" have the respective
meanings given to such terms by section 4963.
(2) Limitation on suit for refund
No suit may be maintained under this section for the credit or
refund of any tax imposed under section 4941, 4942, 4943, 4944,
4945, 4951, 4952, 4955, 4958, 4971, or 4975 with respect to any
act (or failure to act) giving rise to liability for tax under
such sections, unless no other suit has been maintained for
credit or refund of, and no petition has been filed in the Tax
Court with respect to a deficiency in, any other tax imposed by
such sections with respect to such act (or failure to act).
(3) Final determination of issues
For purposes of this section, any suit for the credit or refund
of any tax imposed under section 4941, 4942, 4943, 4944, 4945,
4951, 4952, 4955, 4958, 4971, or 4975 with respect to any act (or
failure to act) giving rise to liability for tax under such
sections, shall constitute a suit to determine all questions with
respect to any other tax imposed with respect to such act (or
failure to act) under such sections, and failure by the parties
to such suit to bring any such question before the Court shall
constitute a bar to such question.
(h) Special rule for actions with respect to partnership items
No action may be brought for a refund attributable to partnership
items (as defined in section 6231(a)(3)) except as provided in
section 6228(b) or section 6230(c).
(i) Special rule for actions with respect to tax shelter promoter
and understatement penalties
No action or proceeding may be brought in the United States Court
of Federal Claims for any refund or credit of a penalty imposed by
section 6700 (relating to penalty for promoting abusive tax
shelters, etc.) or section 6701 (relating to penalties for aiding
and abetting understatement of tax liability).
(j) Special rule for actions with respect to estates for which an
election under section 6166 is made
(1) In general
The district courts of the United States and the United States
Court of Federal Claims shall not fail to have jurisdiction over
any action brought by the representative of an estate to which
this subsection applies to determine the correct amount of the
estate tax liability of such estate (or for any refund with
respect thereto) solely because the full amount of such liability
has not been paid by reason of an election under section 6166
with respect to such estate.
(2) Estates to which subsection applies
This subsection shall apply to any estate if, as of the date
the action is filed -
(A) no portion of the installments payable under section 6166
have been accelerated;
(B) all such installments the due date for which is on or
before the date the action is filed have been paid;
(C) there is no case pending in the Tax Court with respect to
the tax imposed by section 2001 on the estate and, if a notice
of deficiency under section 6212 with respect to such tax has
been issued, the time for filing a petition with the Tax Court
with respect to such notice has expired; and
(D) no proceeding for declaratory judgment under section 7479
is pending.
(3) Prohibition on collection of disallowed liability
If the court redetermines under paragraph (1) the estate tax
liability of an estate, no part of such liability which is
disallowed by a decision of such court which has become final may
be collected by the Secretary, and amounts paid in excess of the
installments determined by the court as currently due and payable
shall be refunded.
(k) Cross references
(1) For provisions relating generally to claims for refund or
credit, see chapter 65 (relating to abatements, credit, and
refund) and chapter 66 (relating to limitations).
(2) For duty of United States attorneys to defend suits, see
section 507 of Title 28 of the United States Code.
(3) For jurisdiction of United States district courts, see
section 1346 of Title 28 of the United States Code.
(4) For payment by the Treasury of judgments against internal
revenue officers or employees, upon certificate of probable
cause, see section 2006 of Title 28 of the United States Code.
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 876; Pub. L. 85-866, title I,
Sec. 78, Sept. 2, 1958, 72 Stat. 1662; Pub. L. 89-713, Sec. 3(a),
Nov. 2, 1966, 80 Stat. 1108; Pub. L. 91-172, title I, Sec. 101(i),
(j)(56), Dec. 30, 1969, 83 Stat. 525, 532; Pub. L. 92-178, title
III, Sec. 309(a), Dec. 10, 1971, 85 Stat. 525; Pub. L. 93-406,
title II, Sec. 1016(a)(26), Sept. 2, 1974, 88 Stat. 931; Pub. L.
94-455, title XIII, Sec. 1307(d)(2)(F)(viii), title XVI, Sec.
1605(b)(11), title XIX, Sec. 1906(a)(44), (b)(13)(A), Oct. 4, 1976,
90 Stat. 1728, 1755, 1830, 1834; Pub. L. 96-222, title I, Sec.
108(b)(1)(D)-(F), Apr. 1, 1980, 94 Stat. 226; Pub. L. 96-223, title
I, Sec. 101(f)(1)(J), Apr. 2, 1980, 94 Stat. 252; Pub. L. 96-596,
Sec. 2(c)(2), Dec. 24, 1980, 94 Stat. 3474; Pub. L. 97-164, title
I, Sec. 151, Apr. 2, 1982, 96 Stat. 46; Pub. L. 97-248, title IV,
Sec. 402(c)(11), Sept. 3, 1982, 96 Stat. 668; Pub. L. 98-369, div.
A, title VII, Sec. 714(g)(1), (p)(2)(H), July 18, 1984, 98 Stat.
961, 965; Pub. L. 99-514, title XVIII, Sec. 1899A(58), Oct. 22,
1986, 100 Stat. 2961; Pub. L. 100-203, title X, Sec. 10712(c)(5),
Dec. 22, 1987, 101 Stat. 1330-467; Pub. L. 100-418, title I, Sec.
1941(b)(2)(B)(x), Aug. 23, 1988, 102 Stat. 1323; Pub. L. 102-572,
title IX, Sec. 902(b)(1), Oct. 29, 1992, 106 Stat. 4516; Pub. L.
104-168, title XIII, Sec. 1311(c)(4), July 30, 1996, 110 Stat.
1478; Pub. L. 105-206, title III, Sec. 3104(a), July 22, 1998, 112
Stat. 731.)
-REFTEXT-
REFERENCES IN TEXT
The date of enactment of this title, referred to in subsec. (e),
is Aug. 16, 1954.
-MISC1-
AMENDMENTS
1998 - Subsecs. (j), (k). Pub. L. 105-206 added subsec. (j) and
redesignated former subsec. (j) as (k).
1996 - Subsec. (g)(2), (3). Pub. L. 104-168 inserted "4958,"
after "4955,".
1992 - Subsecs. (e), (i). Pub. L. 102-572 substituted "United
States Court of Federal Claims" for "United States Claims Court"
wherever appearing.
1988 - Subsec. (e). Pub. L. 100-418 substituted "or 44" for "44,
or 45".
1987 - Subsec. (g)(2), (3). Pub. L. 100-203 inserted "4955,"
after "4952,".
1986 - Subsec. (g)(1)(B). Pub. L. 99-514 substituted "section
4963" for "section 4962".
1984 - Subsec. (h). Pub. L. 98-369, Sec. 714(p)(2)(H),
substituted "section 6231(a)(3)" for "section 6131(a)(3)".
Subsecs. (i), (j). Pub. L. 98-369, Sec. 714(g)(1), added subsec.
(i) and redesignated former subsec. (i) as (j).
1982 - Subsec. (e). Pub. L. 97-164 substituted "United States
Claims Court" for "Court of Claims" wherever appearing.
Subsecs. (h), (i). Pub. L. 97-248 added subsec. (h) and
redesignated former subsec. (h) as (i).
1980 - Subsec. (e). Pub. L. 96-223 inserted reference to chapter
45.
Subsec. (g). Pub. L. 96-596 substituted in par. (1) provision
authorizing, with respect to any taxable event, payment of the full
amount of the first tier tax as constituting sufficient payment in
order to maintain an action under this section with respect to the
second tier tax and defining the terms "taxable event", "first tier
tax", and "second tier tax" as having the respective meanings given
to such terms by section 4962 of this title for provision
authorizing, with respect to any act or failure to act giving rise
to liability under sections 4941, 4942, 4943, 4944, 4945, 4951,
4952, 4971, or 4975 of this title, payment of the full amount of
tax imposed under specified subsections of those sections as
constituting sufficient payment in order to maintain an action
under this section with respect to such act or failure to act.
Pub. L. 96-222 substituted in pars. (1) to (3) "4944, 4945, 4951,
4952" for "4944, 4945" and in par. (1) "section 4945(a) (relating
to initial taxes on taxable expenditures), section 4951(a)
(relating to initial taxes on self dealing), 4952(a) (relating to
initial taxes on taxable expenditures)" for "section 4945(a)
(relating to initial taxes on taxable expenditures)" and "section
4945(b) (relating to additional taxes on taxable expenditures),
section 4951(b) (relating to additional taxes on self-dealing),
4952(b) (relating to additional taxes on taxable expenditures)" for
"section 4945(b) (relating to additional taxes on taxable
expenditures)".
1976 - Subsec. (a). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck
out "or his delegate" after "Secretary".
Subsec. (c). Pub. L. 94-455, Sec. 1906(a)(44), struck out
"instituted after June 15, 1942," after "res judicata in all suits"
and "where the petition to the Tax Court was filed after such date"
after "decisions of the Tax Court".
Subsec. (e). Pub. L. 94-455, Secs. 1307(d)(2)(F)(viii),
1605(b)(11), 1906(b)(13)(A), struck out "or his delegate" after
"Secretary" and substituted "chapter 41, 42," for "chapter 42" and
"43, or 44" for "or 43".
1974 - Subsec. (e). Pub. L. 93-406, Sec. 1016(a)(26)(A),
substituted "chapter 42 or 43" for "chapter 42".
Subsec. (g). Pub. L. 93-406, Sec. 1016(a)(26)(B)-(F), substituted
"chapter 42 or 43" for "chapter 42" in heading, substituted "4945,
4971, or 4975" for "or 4945", "section 4945(a) (relating to initial
taxes on taxable expenditures), 4971(a) (relating to initial tax on
failure to meet minimum funding standard), 4975(a) (relating to
initial tax on prohibited transactions)" for "section 4945(a)
(relating to initial taxes on taxable expenditures)", and "section
4945(b) (relating to additional taxes on taxable expenditures),
section 4971(b) (relating to additional tax on failure to meet
minimum funding standard), or section 4975(b) (relating to
additional tax on prohibited transactions)" for "or section 4945(b)
(relating to additional taxes on taxable expenditures)" in par.
(1), and substituted "4945, 4971, or 4975" for "or 4945" in pars.
(2) and (3).
1971 - Subsec. (f)(1). Pub. L. 92-178 authorized maintenance of
suit or proceeding against the United States notwithstanding
provisions of section 1502 of Title 28 (relating to certain treaty
cases).
1969 - Subsec. (e). Pub. L. 91-172, Sec. 101(j)(56), inserted
reference to chapter 42 taxes.
Subsecs. (g), (h). Pub. L. 91-172, Sec. 101(i), added subsec. (g)
and redesignated former subsec. (g) as (h).
1966 - Subsecs. (f), (g). Pub. L. 89-713 added subsec. (f) and
redesignated former subsec. (f) as (g).
1958 - Subsec. (f)(2). Pub. L. 85-866 struck out "district"
before "attorneys".
EFFECTIVE DATE OF 1998 AMENDMENT
Pub. L. 105-206, title III, Sec. 3104(c), July 22, 1998, 112
Stat. 732, provided that: "The amendments made by this section
[amending this section and section 7479 of this title] shall apply
to any claim for refund filed after the date of the enactment of
this Act [July 22, 1998]."
EFFECTIVE DATE OF 1996 AMENDMENT
Amendment by Pub. L. 104-168 applicable to excess benefit
transactions occurring on or after Sept. 14, 1995 and not
applicable to any benefit arising from a transaction pursuant to
any written contract which was binding on Sept. 13, 1995, and at
all times thereafter before such transaction occurred, see section
1311(d)(1), (2) of Pub. L. 104-168, set out as a note under section
4955 of this title.
EFFECTIVE DATE OF 1992 AMENDMENT
Amendment by Pub. L. 102-572 effective Oct. 29, 1992, see section
911 of Pub. L. 102-572, set out as a note under section 171 of
Title 28, Judiciary and Judicial Procedure.
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 1987 AMENDMENT
Amendment by Pub. L. 100-203 applicable to taxable years
beginning after Dec. 22, 1987, see section 10712(d) of Pub. L.
100-203, set out as an Effective Date note under section 4955 of
this title.
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by section 714(g)(1) of Pub. L. 98-369 applicable to
any claim for refund or credit filed after July 18, 1984, see
section 714(g)(4) of Pub. L. 98-369, set out as an Effective Date
note under section 1509 of Title 28, Judiciary and Judicial
Procedure.
Amendment by section 714(p)(2)(H) of Pub. L. 98-369 effective as
if included in the provision of the Tax Equity and Fiscal
Responsibility Act of 1982, Pub. L. 97-248, to which such amendment
relates, see section 715 of Pub. L. 98-369, set out as a note under
section 31 of this title.
EFFECTIVE DATE OF 1982 AMENDMENT
Amendment by Pub. L. 97-248 applicable to partnership taxable
years beginning after Sept. 3, 1982, with provision for the
applicability of the amendment to any partnership taxable year
ending after Sept. 3, 1982, if the partnership, each partner, and
each indirect partner requests such application and the Secretary
of the Treasury or his delegate consents to such application, see
section 407(a)(1), (3) of Pub. L. 97-248, set out as an Effective
Date note under section 6221 of this title.
Amendment by Pub. L. 97-164 effective Oct. 1, 1982, see section
402 of Pub. L. 97-164, set out as a note under section 171 of Title
28, Judiciary and Judicial Procedure.
EFFECTIVE DATE OF 1980 AMENDMENTS
For effective date of amendment by Pub. L. 96-596 with respect to
any first tier tax and to any second tier tax, see section 2(d) of
Pub. L. 96-596, set out as an Effective Date note under section
4961 of this title.
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 1976 AMENDMENT
Amendment by section 1307(d)(2)(F)(viii) of Pub. L. 94-455
effective on and after Oct. 4, 1976, see section 1307(e)(6) of Pub.
L. 94-455, set out as a note under section 501 of this title.
For effective date of amendment by section 1605(b)(11) of Pub. L.
94-455, see section 1608(d) of Pub. L. 94-455, set out as a note
under section 856 of this title.
Amendment by section 1906(a)(44), (b)(13)(A) of Pub. L. 94-455
effective on first day of first month which begins more than 90
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 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, and 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.
EFFECTIVE DATE OF 1971 AMENDMENT
Section 309(b) of Pub. L. 92-178 provided that: "The amendment
made by subsection (a) [amending this section] shall apply to suits
or proceedings which are instituted after January 30, 1967."
EFFECTIVE DATE OF 1969 AMENDMENT
Amendment by Pub. L. 91-172 effective Jan. 1, 1970, see section
101(k)(1) of Pub. L. 91-172, set out as an Effective Date note
under section 4940 of this title.
EFFECTIVE DATE OF 1966 AMENDMENT
Section 3(d) of Pub. L. 89-713 provided that: "The amendments
made by subsections (a) and (b) [amending this section and section
2502 of Title 28, Judiciary and Judicial Procedure] shall apply to
suits brought against officers, employees, or personal
representatives referred to therein which are instituted 90 days or
more after the date of the enactment of this Act [Nov. 2, 1966].
The amendment made by subsection (c) [amending section 7482 of this
title] shall apply to all decisions of the Tax Court entered after
the date of enactment of this Act."
EFFECTIVE DATE OF 1958 AMENDMENT
Amendment by Pub. L. 85-866 as 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.
PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1989
For provisions directing that if any amendments made by subtitle
A or subtitle C of title XI [Secs. 1101-1147 and 1171-1177] or
title XVIII [Secs. 1800-1899A] of Pub. L. 99-514 require an
amendment to any plan, such plan amendment shall not be required to
be made before the first plan year beginning on or after Jan. 1,
1989, see section 1140 of Pub. L. 99-514, as amended, set out as a
note under section 401 of this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 4961, 6228, 6234, 6532,
7426 of this title; title 28 section 2502.
-End-
-CITE-
26 USC Sec. 7423 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 76 - JUDICIAL PROCEEDINGS
Subchapter B - Proceedings by Taxpayers and Third Parties
-HEAD-
Sec. 7423. Repayments to officers or employees
-STATUTE-
The Secretary, subject to regulations prescribed by the
Secretary, is authorized to repay -
(1) Collections recovered
To any officer or employee of the United States the full amount
of such sums of money as may be recovered against him in any
court, for any internal revenue taxes collected by him, with the
cost and expense of suit; also
(2) Damages and costs
All damages and costs recovered against any officer or employee
of the United States in any suit brought against him by reason of
anything done in the due performance of his official duty under
this title.
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 877; 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 provisions preceding par. (1).
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in title 5 section 3111.
-End-
-CITE-
26 USC Sec. 7424 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 76 - JUDICIAL PROCEEDINGS
Subchapter B - Proceedings by Taxpayers and Third Parties
-HEAD-
Sec. 7424. Intervention
-STATUTE-
If the United States is not a party to a civil action or suit,
the United States may intervene in such action or suit to assert
any lien arising under this title on the property which is the
subject of such action or suit. The provisions of section 2410 of
title 28 of the United States Code (except subsection (b)) and of
section 1444 of title 28 of the United States Code shall apply in
any case in which the United States intervenes as if the United
States had originally been named a defendant in such action or
suit. In any case in which the application of the United States to
intervene is denied, the adjudication in such civil action or suit
shall have no effect upon such lien.
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 877; Pub. L. 89-719, title I,
Sec. 108, Nov. 2, 1966, 80 Stat. 1140.)
-MISC1-
AMENDMENTS
1966 - Pub. L. 89-719 substituted "Intervention" for "Civil
action to clear title to property" in section catchline and
substituted provisions, set out in a single paragraph, granting the
government authority to intervene in a court proceeding to assert
any lien arising under this title on property which is the subject
of a civil action or suit to which the government is not a party
with the same procedural rules to apply as where the government is
initially joined properly as a party and with the proceedings to
have no effect on the government's lien if the application to
intervene is denied, for provisions, formerly set out in three
subsections, setting out a procedure by which a person having a
lien upon or interest in property referred to in section 7403 could
file a civil action to clear title to the property and obtain an
adjudication of the matter involved in the same manner as in the
case of a civil action filed under section 7403.
EFFECTIVE DATE OF 1966 AMENDMENT
Amendment by Pub. L. 89-719 applicable after Nov. 2, 1966,
regardless of when the title or lien of the United States arose or
when the lien or interest of another person was acquired, with
certain exceptions, see section 114(a) to (c) of Pub. L. 89-719,
set out as a note under section 6323 of this title.
CIVIL ACTIONS TO CLEAR TITLE TO PROPERTY COMMENCED BEFORE NOV. 2,
1966
Section 114(d) of Pub. L. 89-719 provided that civil actions
commenced before Nov. 2, 1966, to clear title to property pursuant
to this section as in effect before Nov. 2, 1966, were to be
determined in accord with this section as in effect before Nov. 2,
1966.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in title 28 section 2409a.
-End-
-CITE-
26 USC Sec. 7425 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 76 - JUDICIAL PROCEEDINGS
Subchapter B - Proceedings by Taxpayers and Third Parties
-HEAD-
Sec. 7425. Discharge of liens
-STATUTE-
(a) Judicial proceedings
If the United States is not joined as a party, a judgment in any
civil action or suit described in subsection (a) of section 2410 of
title 28 of the United States Code, or a judicial sale pursuant to
such a judgment, with respect to property on which the United
States has or claims a lien under the provisions of this title -
(1) shall be made subject to and without disturbing the lien of
the United States, if notice of such lien has been filed in the
place provided by law for such filing at the time such action or
suit is commenced, or
(2) shall have the same effect with respect to the discharge or
divestment of such lien of the United States as may be provided
with respect to such matters by the local law of the place where
such property is situated, if no notice of such lien has been
filed in the place provided by law for such filing at the time
such action or suit is commenced or if the law makes no provision
for such filing.
If a judicial sale of property pursuant to a judgment in any civil
action or suit to which the United States is not a party discharges
a lien of the United States arising under the provisions of this
title, the United States may claim, with the same priority as its
lien had against the property sold, the proceeds (exclusive of
costs) of such sale at any time before the distribution of such
proceeds is ordered.
(b) Other sales
Notwithstanding subsection (a) sale of property on which the
United States has or claims a lien, or a title derived from
enforcement of a lien, under the provisions of this title, made
pursuant to an instrument creating a lien on such property,
pursuant to a confession of judgment on the obligation secured by
such an instrument, or pursuant to a nonjudicial sale under a
statutory lien on such property -
(1) shall, except as otherwise provided, be made subject to and
without disturbing such lien or title, if notice of such lien was
filed or such title recorded in the place provided by law for
such filing or recording more than 30 days before such sale and
the United States is not given notice of such sale in the manner
prescribed in subsection (c)(1); or
(2) shall have the same effect with respect to the discharge or
divestment of such lien or such title of the United States, as
may be provided with respect to such matters by the local law of
the place where such property is situated, if -
(A) notice of such lien or such title was not filed or
recorded in the place provided by law for such filing more than
30 days before such sale,
(B) the law makes no provision for such filing, or
(C) notice of such sale is given in the manner prescribed in
subsection (c)(1).
(c) Special rules
(1) Notice of sale
Notice of a sale to which subsection (b) applies shall be given
(in accordance with regulations prescribed by the Secretary) in
writing, by registered or certified mail or by personal service,
not less than 25 days prior to such sale, to the Secretary.
(2) Consent to sale
Notwithstanding the notice requirement of subsection (b)(2)(C),
a sale described in subsection (b) of property shall discharge or
divest such property of the lien or title of the United States if
the United States consents to the sale of such property free of
such lien or title.
(3) Sale of perishable goods
Notwithstanding the notice requirement of subsection (b)(2)(C),
a sale described in subsection (b) of property liable to perish
or become greatly reduced in price or value by keeping, or which
cannot be kept without great expense, shall discharge or divest
such property of the lien or title of the United States if notice
of such sale is given (in accordance with regulations prescribed
by the Secretary) in writing, by registered or certified mail or
by personal service, to the Secretary before such sale. The
proceeds (exclusive of costs) of such sale shall be held as a
fund subject to the liens and claims of the United States, in the
same manner and with the same priority as such liens and claims
had with respect to the property sold, for not less than 30 days
after the date of such sale.
(4) Forfeitures of land sales contracts
For purposes of subsection (b), a sale of property includes any
forfeiture of a land sales contract.
(d) Redemption by United States
(1) Right to redeem
In the case of a sale of real property to which subsection (b)
applies to satisfy a lien prior to that of the United States, the
Secretary may redeem such property within the period of 120 days
from the date of such sale or the period allowable for redemption
under local law, whichever is longer.
(2) Amount to be paid
In any case in which the United States redeems real property
pursuant to paragraph (1), the amount to be paid for such
property shall be the amount prescribed by subsection (d) of
section 2410 of title 28 of the United States Code.
(3) Certificate of redemption
(A) In general
In any case in which real property is redeemed by the United
States pursuant to this subsection, the Secretary shall apply
to the officer designated by local law, if any, for the
documents necessary to evidence the fact of redemption and to
record title to such property in the name of the United States.
If no such officer is designated by local law or if such
officer fails to issue such documents, the Secretary shall
execute a certificate of redemption therefor.
(B) Filing
The Secretary shall, without delay, cause such documents or
certificate to be duly recorded in the proper registry of
deeds. If the State in which the real property redeemed by the
United States is situated has not by law designated an office
in which such certificate may be recorded, the Secretary shall
file such certificate in the office of the clerk of the United
States district court for the judicial district in which such
property is situated.
(C) Effect
A certificate of redemption executed by the Secretary shall
constitute prima facie evidence of the regularity of such
redemption and shall, when recorded, transfer to the United
States all the rights, title, and interest in and to such
property acquired by the person from whom the United States
redeems such property by virtue of the sale of such property.
-SOURCE-
(Added Pub. L. 89-719, title I, Sec. 109, Nov. 2, 1966, 80 Stat.
1141; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
4, 1976, 90 Stat. 1834; Pub. L. 99-514, title XV, Sec. 1572(a),
Oct. 22, 1986, 100 Stat. 2765.)
-MISC1-
PRIOR PROVISIONS
A prior section 7425 was renumbered 7434 of this title.
AMENDMENTS
1986 - Subsec. (c)(4). Pub. L. 99-514 added par. (4).
1976 - Pub. L. 94-455 struck out "or his delegate" after
"Secretary" wherever appearing.
EFFECTIVE DATE OF 1986 AMENDMENT
Section 1572(b) of Pub. L. 99-514 provided that: "The amendment
made by subsection (a) [amending this section] shall apply to
forfeitures after the 30th day after the date of the enactment of
this Act [Oct. 22, 1986]."
EFFECTIVE DATE
Section 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 an Effective Date of 1966
Amendment note under section 6323 of this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section 7810 of this title; title
28 section 2409a.
-End-
-CITE-
26 USC Sec. 7426 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 76 - JUDICIAL PROCEEDINGS
Subchapter B - Proceedings by Taxpayers and Third Parties
-HEAD-
Sec. 7426. Civil actions by persons other than taxpayers
-STATUTE-
(a) Actions permitted
(1) Wrongful levy
If a levy has been made on property or property has been sold
pursuant to a levy, and any person (other than the person against
whom is assessed the tax out of which such levy arose) who claims
an interest in or lien on such property and that such property
was wrongfully levied upon may bring a civil action against the
United States in a district court of the United States. Such
action may be brought without regard to whether such property has
been surrendered to or sold by the Secretary.
(2) Surplus proceed
If property has been sold pursuant to a levy, any person (other
than the person against whom is assessed the tax out of which
such levy arose) who claims an interest in or lien on such
property junior to that of the United States and to be legally
entitled to the surplus proceeds of such sale may bring a civil
action against the United States in a district court of the
United States.
(3) Substituted sale proceeds
If property has been sold pursuant to an agreement described in
section 6325(b)(3) (relating to substitution of proceeds of
sale), any person who claims to be legally entitled to all or any
part of the amount held as a fund pursuant to such agreement may
bring a civil action against the United States in a district
court of the United States.
(4) Substitution of value
If a certificate of discharge is issued to any person under
section 6325(b)(4) with respect to any property, such person may,
within 120 days after the day on which such certificate is
issued, bring a civil action against the United States in a
district court of the United States for a determination of
whether the value of the interest of the United States (if any)
in such property is less than the value determined by the
Secretary. No other action may be brought by such person for such
a determination.
(b) Adjudication
The district court shall have jurisdiction to grant only such of
the following forms of relief as may be appropriate in the
circumstances:
(1) Injunction
If a levy or sale would irreparably injure rights in property
which the court determines to be superior to rights of the United
States in such property, the court may grant an injunction to
prohibit the enforcement of such levy or to prohibit such sale.
(2) Recovery of property
If the court determines that such property has been wrongfully
levied upon, the court may -
(A) order the return of specific property if the United
States is in possession of such property;
(B) grant a judgment for the amount of money levied upon; or
(C) if such property was sold, grant a judgment for an amount
not exceeding the greater of -
(i) the amount received by the United States from the sale
of such property, or
(ii) the fair market value of such property immediately
before the levy.
For the purposes of subparagraph (C), if the property was
declared purchased by the United States at a sale pursuant to
section 6335(e) (relating to manner and conditions of sale), the
United States shall be treated as having received an amount equal
to the minimum price determined pursuant to such section or (if
larger) the amount received by the United States from the resale
of such property.
(3) Surplus proceeds
If the court determines that the interest or lien of any party
to an action under this section was transferred to the proceeds
of a sale of such property, the court may grant a judgment in an
amount equal to all or any part of the amount of the surplus
proceeds of such sale.
(4) Substituted sale proceeds
If the court determines that a party has an interest in or lien
on the amount held as a fund pursuant to an agreement described
in section 6325(b)(3) (relating to substitution of proceeds of
sale), the court may grant a judgment in an amount equal to all
or any part of the amount of such fund.
(5) Substitution of value
If the court determines that the Secretary's determination of
the value of the interest of the United States in the property
for purposes of section 6325(b)(4) exceeds the actual value of
such interest, the court shall grant a judgment ordering a refund
of the amount deposited, and a release of the bond, to the extent
that the aggregate of the amounts thereof exceeds such value
determined by the court.
(c) Validity of assessment
For purposes of an adjudication under this section, the
assessment of tax upon which the interest or lien of the United
States is based shall be conclusively presumed to be valid.
(d) Limitation on rights of action
No action may be maintained against any officer or employee of
the United States (or former officer or employee) or his personal
representative with respect to any acts for which an action could
be maintained under this section.
(e) Substitution of United States as party
If an action, which could be brought against the United States
under this section, is improperly brought against any officer or
employee of the United States (or former officer or employee) or
his personal representative, the court shall order, upon such terms
as are just, that the pleadings be amended to substitute the United
States as a party for such officer or employee as of the time such
action was commenced upon proper service of process on the United
States.
(f) Provision inapplicable
The provisions of section 7422(a) (relating to prohibition of
suit prior to filing claim for refund) shall not apply to actions
under this section.
(g) Interest
Interest shall be allowed at the overpayment rate established
under section 6621 -
(1) In the case of a judgment pursuant to subsection (b)(2)(B),
from the date the Secretary receives the money wrongfully levied
upon to the date of payment of such judgment;
(2) in the case of a judgment pursuant to subsection (b)(2)(C),
from the date of the sale of the property wrongfully levied upon
to the date of payment of such judgment; and
(3) in the case of a judgment pursuant to subsection (b)(5)
which orders a refund of any amount, from the date the Secretary
received such amount to the date of payment of such judgment.
(h) Recovery of damages permitted in certain cases
(1) In general
Notwithstanding subsection (b), if, in any action brought under
this section, there is a finding that any officer or employee of
the Internal Revenue Service recklessly or intentionally, or by
reason of negligence, disregarded any provision of this title the
defendant shall be liable to the plaintiff in an amount equal to
the lesser of $1,000,000 ($100,000 in the case of negligence) or
the sum of -
(A) actual, direct economic damages sustained by the
plaintiff as a proximate result of the reckless or intentional
or negligent disregard of any provision of this title by the
officer or employee (reduced by any amount of such damages
awarded under subsection (b)); and
(B) the costs of the action.
(2) Requirement that administrative remedies be exhausted;
mitigation; period
The rules of section 7433(d) shall apply for purposes of this
subsection.
(3) Payment authority
Claims pursuant to this section shall be payable out of funds
appropriated under section 1304 of title 31, United States Code.
(i) Cross reference
For period of limitation, see section 6532(c).
-SOURCE-
(Added Pub. L. 89-719, title I, Sec. 110(a), Nov. 2, 1966, 80 Stat.
1142; amended Pub. L. 93-625, Sec. 7(a)(2)(E), Jan. 3, 1975, 88
Stat. 2115; Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4,
1976, 90 Stat. 1834; Pub. L. 97-248, title III, Sec. 350(a), Sept.
3, 1982, 96 Stat. 639; Pub. L. 99-514, title XV, Sec. 1511(c)(16),
Oct. 22, 1986, 100 Stat. 2745; Pub. L. 105-206, title III, Secs.
3102(b), 3106(b)(1), (2), July 22, 1998, 112 Stat. 730, 733.)
-MISC1-
AMENDMENTS
1998 - Subsec. (a)(4). Pub. L. 105-206, Sec. 3106(b)(1), added
par. (4).
Subsec. (b)(5). Pub. L. 105-206, Sec. 3106(b)(2)(A), added par.
(5).
Subsec. (g)(3). Pub. L. 105-206, Sec. 3106(b)(2)(B), added par.
(3).
Subsecs. (h), (i). Pub. L. 105-206, Sec. 3102(b), added subsec.
(h) and redesignated former subsec. (h) as (i).
1986 - Subsec. (g). Pub. L. 99-514 substituted "the overpayment
rate established under section 6621" for "an annual rate
established under section 6621".
1982 - Subsec. (b)(2)(C). Pub. L. 97-248 inserted "if such
property was sold," before "grant a judgment" and "the greater of -
" after "not exceeding", redesignated remaining provisions as cl.
(i), and added cl. (ii).
1976 - Pub. L. 94-455 struck out "or his delegate" after
"Secretary" wherever appearing.
1975 - Subsec. (g). Pub. L. 93-625 substituted "an annual rate
established under section 6621" for "the rate of 6 percent per
annum".
EFFECTIVE DATE OF 1998 AMENDMENT
Pub. L. 105-206, title III, Sec. 3102(d), July 22, 1998, 112
Stat. 731, provided that: "The amendments made by this section
[amending this section and section 7433 of this title] shall apply
to actions of officers or employees of the Internal Revenue Service
after the date of the enactment of this Act [July 22, 1998]."
Amendment by section 3106(b)(1), (2) of Pub. L. 105-206 effective
July 22, 1998, see section 3106(c) of Pub. L. 105-206, set out as a
note under section 6325 of this title.
EFFECTIVE DATE OF 1986 AMENDMENT
Amendment by Pub. L. 99-514 applicable for purposes of
determining interest for periods after Dec. 31, 1986, see section
1511(d) of Pub. L. 99-514, set out as a note under section 47 of
this title.
EFFECTIVE DATE OF 1982 AMENDMENT
Section 350(b) of Pub. L. 97-248 provided that: "The amendment
made by subsection (a) [amending this section] shall apply with
respect to levies made after December 31, 1982."
EFFECTIVE DATE OF 1975 AMENDMENT
Amendment by Pub. L. 93-625 effective July 1, 1975, and
applicable to amounts outstanding on such date or arising
thereafter, see section 7(e) of Pub. L. 93-625, set out as an
Effective Date note under section 6621 of this title.
EFFECTIVE DATE
Section 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, except in a case in which a lien or title
derived from enforcement of a lien held by United States has been
enforced by a civil action or suit which has become final by
judgment, sale, or agreement before Nov. 2, 1966, or in a case in
which section would impair a priority held by any person other than
United States holding a lien or interest prior to Nov. 2, 1966,
operate to increase liability of such person, or shorten time of
bringing suit with respect to transactions occurring before Nov. 2,
1966, see section 114(a)-(c) of Pub. L. 89-719, set out as
Effective Date of 1966 Amendments note under section 6323 of this
title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 6325, 6503, 6532, 7421 of
this title; title 28 sections 1346, 2409a.
-End-
-CITE-
26 USC Sec. 7427 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 76 - JUDICIAL PROCEEDINGS
Subchapter B - Proceedings by Taxpayers and Third Parties
-HEAD-
Sec. 7427. Income tax return preparers
-STATUTE-
In any proceeding involving the issue of whether or not an income
tax return preparer has willfully attempted in any manner to
understate the liability for tax (within the meaning of section
6694(b)), the burden of proof in respect to such issue shall be
upon the Secretary.
-SOURCE-
(Added Pub. L. 94-455, title XII, Sec. 1203(b)(2)(A), Oct. 4, 1976,
90 Stat. 1690.)
-MISC1-
PRIOR PROVISIONS
A prior section 7427 was renumbered 7437 of this title.
-End-
-CITE-
26 USC Sec. 7428 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 76 - JUDICIAL PROCEEDINGS
Subchapter B - Proceedings by Taxpayers and Third Parties
-HEAD-
Sec. 7428. Declaratory judgments relating to status and
classification of organizations under section 501(c)(3), etc.
-STATUTE-
(a) Creation of remedy
In a case of actual controversy involving -
(1) a determination by the Secretary -
(A) with respect to the initial qualification or continuing
qualification of an organization as an organization described
in section 501(c)(3) which is exempt from tax under section
501(a) or as an organization described in section 170(c)(2),
(B) with respect to the initial classification or continuing
classification of an organization as a private foundation (as
defined in section 509(a)), or
(C) with respect to the initial classification or continuing
classification of an organization as a private operating
foundation (as defined in section 4942(j)(3)), or
(2) a failure by the Secretary to make a determination with
respect to an issue referred to in paragraph (1),
upon the filing of an appropriate pleading, the United States Tax
Court, the United States Court of Federal Claims, or the district
court of the United States for the District of Columbia may make a
declaration with respect to such initial qualification or
continuing qualification or with respect to such initial
classification or continuing classification. Any such declaration
shall have the force and effect of a decision of the Tax Court or a
final judgment or decree of the district court or the Court of
Federal Claims, as the case may be, and shall be reviewable as
such. For purposes of this section, a determination with respect to
a continuing qualification or continuing classification includes
any revocation of or other change in a qualification or
classification.
(b) Limitations
(1) Petitioner
A pleading may be filed under this section only by the
organization the qualification or classification of which is at
issue.
(2) Exhaustion of administrative remedies
A declaratory judgment or decree under this section shall not
be issued in any proceeding unless the Tax Court, the Court of
Federal Claims, or the district court of the United States for
the District of Columbia determines that the organization
involved has exhausted administrative remedies available to it
within the Internal Revenue Service. An organization requesting
the determination of an issue referred to in subsection (a)(1)
shall be deemed to have exhausted its administrative remedies
with respect to a failure by the Secretary to make a
determination with respect to such issue at the expiration of 270
days after the date on which the request for such determination
was made if the organization has taken, in a timely manner, all
reasonable steps to secure such determination.
(3) Time for bringing action
If the Secretary sends by certified or registered mail notice
of his determination with respect to an issue referred to in
subsection (a)(1) to the organization referred to in paragraph
(1), no proceeding may be initiated under this section by such
organization unless the pleading is filed before the 91st day
after the date of such mailing.
(c) Validation of certain contributions made during pendency of
proceedings
(1) In general
If -
(A) the issue referred to in subsection (a)(1) involves the
revocation of a determination that the organization is
described in section 170(c)(2),
(B) a proceeding under this section is initiated within the
time provided by subsection (b)(3), and
(C) either -
(i) a decision of the Tax Court has become final (within
the meaning of section 7481), or
(ii) a judgment of the district court of the United States
for the District of Columbia has been entered, or
(iii) a judgment of the Court of Federal Claims, has been
entered,
and such decision or judgment, as the case may be, determines
that the organization was not described in section 170(c)(2),
then, notwithstanding such decision or judgment, such
organization shall be treated as having been described in section
170(c)(2) for purposes of section 170 for the period beginning on
the date on which the notice of the revocation was published and
ending on the date on which the court first determined in such
proceeding that the organization was not described in section
170(c)(2).
(2) Limitation
Paragraph (1) shall apply only -
(A) with respect to individuals, and only to the extent that
the aggregate of the contributions made by any individual to or
for the use of the organization during the period specified in
paragraph (1) does not exceed $1,000 (for this purpose treating
a husband and wife as one contributor), and
(B) with respect to organizations described in section
170(c)(2) which are exempt from tax under section 501(a) (for
this purpose excluding any such organization with respect to
which there is pending a proceeding to revoke the determination
under section 170(c)(2)).
(3) Exception
This subsection shall not apply to any individual who was
responsible, in whole or in part, for the activities (or failures
to act) on the part of the organization which were the basis for
the revocation.
(d) Subpoena power for district court for District of Columbia
In any action brought under this section in the district court of
the United States for the District of Columbia, a subpoena
requiring the attendance of a witness at a trial or hearing may be
served at any place in the United States.
-SOURCE-
(Added Pub. L. 94-455, title XIII, Sec. 1306(a), Oct. 4, 1976, 90
Stat. 1717; amended Pub. L. 95-600, title VII, Sec. 701(dd)(2),
Nov. 6, 1978, 92 Stat. 2924; Pub. L. 97-164, title I, Sec. 152,
Apr. 2, 1982, 96 Stat. 46; Pub. L. 98-369, div. A, title X, Sec.
1033(b), July 18, 1984, 98 Stat. 1039; Pub. L. 102-572, title IX,
Sec. 902(b), Oct. 29, 1992, 106 Stat. 4516.)
-MISC1-
PRIOR PROVISIONS
A prior section 7428 was renumbered 7437 of this title.
AMENDMENTS
1992 - Subsec. (a). Pub. L. 102-572 substituted "United States
Court of Federal Claims" for "United States Claims Court" and
"Court of Federal Claims" for "Claims Court" in concluding
provisions.
Subsecs. (b)(2), (c)(1)(C)(iii). Pub. L. 102-572, Sec. 902(b)(2),
substituted "Court of Federal Claims" for "Claims Court".
1984 - Subsec. (d). Pub. L. 98-369 added subsec. (d).
1982 - Subsecs. (a), (b)(2), (c)(1)(C)(iii). Pub. L. 97-164
substituted "Claims Court" for "Court of Claims".
1978 - Subsec. (a). Pub. L. 95-600 inserted provision relating to
change in qualification or classification.
EFFECTIVE DATE OF 1992 AMENDMENT
Amendment by Pub. L. 102-572 effective Oct. 29, 1992, see section
911 of Pub. L. 102-572, set out as a note under section 171 of
Title 28, Judiciary and Judicial Procedure.
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by Pub. L. 98-369 applicable with respect to inquiries
and examinations beginning after Dec. 31, 1984, see section 1033(d)
of Pub. L. 98-369, set out as an Effective Date note under section
7611 of this title.
EFFECTIVE DATE OF 1982 AMENDMENT
Amendment by Pub. L. 97-164 effective Oct. 1, 1982, see section
402 of Pub. L. 97-164, set out as a note under section 171 of Title
28, Judiciary and Judicial Procedure.
EFFECTIVE DATE OF 1978 AMENDMENT
Amendment by Pub. L. 95-600 effective as if included in this
section at the time section was added to this title, see section
701(dd)(3) of Pub. L. 95-600, set out as a note under section 7476
of this title.
EFFECTIVE DATE
Section 1306(c) of Pub. L. 94-455 provided that: "The amendments
made by this section [enacting this section and amending sections
7451, 7459, 7470, and 7482 of this title, enacting section 1507 of
Title 28, Judiciary and Judicial Procedure, and amending sections
1346 and 2201 of Title 28] shall apply with respect to pleadings
filed with the United States Tax Court, the district court of the
United States for the District of Columbia, or the United States
Court of Claims more than 6 months after the date of the enactment
of this Act [Oct. 4, 1976] but only with respect to determinations
(or requests for determinations) made after January 1, 1976."
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 501, 7451, 7459, 7482,
7611 of this title; title 28 sections 1346, 1507, 2201.
-End-
-CITE-
26 USC Sec. 7429 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 76 - JUDICIAL PROCEEDINGS
Subchapter B - Proceedings by Taxpayers and Third Parties
-HEAD-
Sec. 7429. Review of jeopardy levy or assessment procedures
-STATUTE-
(a) Administrative review
(1) Administrative review
(A) Prior approval required
No assessment may be made under section 6851(a), 6852(a),
6861(a), or 6862, and no levy may be made under section 6331(a)
less than 30 days after notice and demand for payment is made,
unless the Chief Counsel for the Internal Revenue Service (or
such Counsel's delegate) personally approves (in writing) such
assessment or levy.
(B) Information to taxpayer
Within 5 days after the day on which such an assessment or
levy is made, the Secretary shall provide the taxpayer with a
written statement of the information upon which the Secretary
relied in making such assessment or levy.
(2) Request for review
Within 30 days after the day on which the taxpayer is furnished
the written statement described in paragraph (1), or within 30
days after the last day of the period within which such statement
is required to be furnished, the taxpayer may request the
Secretary to review the action taken.
(3) Redetermination by Secretary
After a request for review is made under paragraph (2), the
Secretary shall determine -
(A) whether or not -
(i) the making of the assessment under section 6851, 6861,
or 6862, as the case may be, is reasonable under the
circumstances, and
(ii) the amount so assessed or demanded as a result of the
action taken under section 6851, 6861, or 6862 is appropriate
under the circumstances, or
(B) whether or not the levy described in subsection (a)(1) is
reasonable under the circumstances.
(b) Judicial review
(1) Proceedings permitted
Within 90 days after the earlier of -
(A) the day the Secretary notifies the taxpayer of the
Secretary's determination described in subsection (a)(3), or
(B) the 16th day after the request described in subsection
(a)(2) was made,
the taxpayer may bring a civil action against the United States
for a determination under this subsection in the court with
jurisdiction determined under paragraph (2).
(2) Jurisdiction for determination
(A) In general
Except as provided in subparagraph (B), the district courts
of the United States shall have exclusive jurisdiction over any
civil action for a determination under this subsection.
(B) Tax Court
If a petition for a redetermination of a deficiency under
section 6213(a) has been timely filed with the Tax Court before
the making of an assessment or levy that is subject to the
review procedures of this section, and 1 or more of the taxes
and taxable periods before the Tax Court because of such
petition is also included in the written statement that is
provided to the taxpayer under subsection (a), then the Tax
Court also shall have jurisdiction over any civil action for a
determination under this subsection with respect to all the
taxes and taxable periods included in such written statement.
(3) Determination by court
Within 20 days after a proceeding is commenced under paragraph
(1), the court shall determine -
(A) whether or not -
(i) the making of the assessment under section 6851, 6861,
or 6862, as the case may be, is reasonable under the
circumstances, and
(ii) the amount so assessed or demanded as a result of the
action taken under section 6851, 6861, or 6862 is appropriate
under the circumstances, or
(B) whether or not the levy described in subsection (a)(1) is
reasonable under the circumstances.
If the court determines that proper service was not made on the
United States or on the Secretary, as may be appropriate, within
5 days after the date of the commencement of the proceeding, then
the running of the 20-day period set forth in the preceding
sentence shall not begin before the day on which proper service
was made on the United States or on the Secretary, as may be
appropriate.
(4) Order of court
If the court determines that the making of such levy is
unreasonable, that the making of such assessment is unreasonable,
or that the amount assessed or demanded is inappropriate, then
the court may order the Secretary to release such levy, to abate
such assessment, to redetermine (in whole or in part) the amount
assessed or demanded, or to take such other action as the court
finds appropriate.
(c) Extension of 20-day period where taxpayer so requests
If the taxpayer requests an extension of the 20-day period set
forth in subsection (b)(2) and establishes reasonable grounds why
such extension should be granted, the court may grant an extension
of not more than 40 additional days.
(d) Computation of days
For purposes of this section, Saturday, Sunday, or a legal
holiday in the District of Columbia shall not be counted as the
last day of any period.
(e) Venue
(1) District court
A civil action in a district court under subsection (b) shall
be commenced only in the judicial district described in section
1402(a)(1) or (2) of title 28, United States Code.
(2) Transfer of actions
If a civil action is filed under subsection (b) with the Tax
Court and such court finds that there is want of jurisdiction
because of the jurisdiction provisions of subsection (b)(2), then
the Tax Court shall, if such court determines it is in the
interest of justice, transfer the civil action to the district
court in which the action could have been brought at the time
such action was filed. Any civil action so transferred shall
proceed as if such action had been filed in the district court to
which such action is transferred on the date on which such action
was actually filed in the Tax Court from which such action is
transferred.
(f) Finality of determination
Any determination made by a court under this section shall be
final and conclusive and shall not be reviewed by any other court.
(g) Burden of proof
(1) Reasonableness of levy, termination, or jeopardy assessment
In a proceeding under subsection (b) involving the issue of
whether the making of a levy described in subsection (a)(1) or
the making of an assessment under section 6851, 6852, 6861, or
6862 is reasonable under the circumstances, the burden of proof
in respect to such issue shall be upon the Secretary.
(2) Reasonableness of amount of assessment
In a proceeding under subsection (b) involving the issue of
whether an amount assessed or demanded as a result of action
taken under section 6851, 6852, 6861, or 6862 is appropriate
under the circumstances, the Secretary shall provide a written
statement which contains any information with respect to which
his determination of the amount assessed was based, but the
burden of proof in respect of such issue shall be upon the
taxpayer.
-SOURCE-
(Added Pub. L. 94-455, title XII, Sec. 1204(a), Oct. 4, 1976, 90
Stat. 1695; amended Pub. L. 98-369, div. A, title IV, Sec. 446(a),
July 18, 1984, 98 Stat. 817; Pub. L. 100-203, title X, Sec.
10713(b)(2)(F), Dec. 22, 1987, 101 Stat. 1330-470; Pub. L. 100-647,
title VI, Sec. 6237(a)-(e)(3), Nov. 10, 1988, 102 Stat. 3741-3743;
Pub. L. 105-206, title III, Sec. 3434(a), July 22, 1998, 112 Stat.
760.)
-MISC1-
AMENDMENTS
1998 - Subsec. (a)(1). Pub. L. 105-206 substituted
"Administrative review" for "Information to taxpayer" in heading
and amended text of par. (1) generally. Prior to amendment, text
read as follows: "Within 5 days after the day on which an
assessment is made under section 6851(a), 6852(a), 6861(a), or
6862, or levy is made under section 6331(a) less than 30 days after
notice and demand for payment is made under section 6331(a), the
Secretary shall provide the taxpayer with a written statement of
the information upon which the Secretary relies in making such
assessment or levy."
1988 - Pub. L. 100-647, Sec. 6237(e)(3), inserted "levy or" after
"jeopardy" in section catchline.
Subsec. (a)(1). Pub. L. 100-647, Sec. 6237(a), inserted "or levy
is made under section 6331(a) less than 30 days after notice and
demand for payment is made under section 6331(a)," after "6862,"
and "or levy" after "such assessment".
Subsec. (a)(3). Pub. L. 100-647, Sec. 6237(b), amended par. (3)
generally. Prior to amendment, par. (3) read as follows: "After a
request for review is made under paragraph (2), the Secretary shall
determine whether or not -
"(A) the making of the assessment under section 6851, 6852,
6861, or 6862, as the case may be, is reasonable under the
circumstances, and
"(B) the amount so assessed or demanded as a result of the
action taken under section 6851, 6852, 6861, or 6862 is
appropriate under the circumstances."
Subsec. (b). Pub. L. 100-647, Sec. 6237(c), amended subsec. (b)
generally, substituting provisions of pars. (1) to (4) for
provisions of former pars. (1) to (3) relating to actions
permitted, determination by district court, and order of district
court.
Subsec. (c). Pub. L. 100-647, Sec. 6237(e)(1), struck out
"district" before "court".
Subsec. (e). Pub. L. 100-647, Sec. 6237(d), amended subsec. (e)
generally. Prior to amendment, subsec. (e) read as follows: "A
civil action under subsection (b) shall be commenced only in the
judicial district described in section 1402(a)(1) or (2) of title
28, United States Code."
Subsec. (f). Pub. L. 100-647, Sec. 6237(e)(1), struck out
"district" after "made by a".
Subsec. (g)(1). Pub. L. 100-647, Sec. 6237(e)(2), in heading
substituted "levy, termination," for "termination" and in text
substituted "a proceeding" for "an action" and inserted "the making
of a levy described in subsection (a)(1) or" after "whether".
Subsec. (g)(2). Pub. L. 100-647, Sec. 6237(e)(2)(C), substituted
"a proceeding" for "an action".
1987 - Subsec. (a)(1). Pub. L. 100-203, Sec. 10713(b)(2)(F)(i),
substituted "6851(a), 6852(a)" for "6851(a),".
Subsecs. (a)(3)(A), (B), (b)(2)(A), (B), (g)(1), (2). Pub. L.
100-203, Sec. 10713(b)(2)(F)(ii), substituted "6851, 6852," for
"6851," wherever appearing.
1984 - Subsec. (b)(2). Pub. L. 98-369 inserted provision that if
the court determines that proper service was not made on the United
States within 5 days after the date of the commencement of the
action, the running of the 20-day period shall not begin before the
day on which proper service was made on the United States.
EFFECTIVE DATE OF 1998 AMENDMENT
Pub. L. 105-206, title III, Sec. 3434(b), July 22, 1998, 112
Stat. 760, provided that: "The amendment made by this section
[amending this section] shall apply to taxes assessed and levies
made after the date of the enactment of this Act [July 22, 1998]."
EFFECTIVE DATE OF 1988 AMENDMENT
Section 6237(f) of Pub. L. 100-647 provided that: "The amendments
made by this section [amending this section] shall apply to
jeopardy levies issued and assessments made on or after July 1,
1989."
EFFECTIVE DATE OF 1984 AMENDMENT
Section 446(b) of Pub. L. 98-369 provided that: "The amendment
made by subsection (a) [amending this section] shall apply to
actions commenced after the date of the enactment of this Act [July
18, 1984]."
EFFECTIVE DATE
Section 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.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 6851, 6863, 6867 of this
title; title 28 section 1346.
-End-
-CITE-
26 USC Sec. 7430 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 76 - JUDICIAL PROCEEDINGS
Subchapter B - Proceedings by Taxpayers and Third Parties
-HEAD-
Sec. 7430. Awarding of costs and certain fees
-STATUTE-
(a) In general
In any administrative or court proceeding which is brought by or
against the United States in connection with the determination,
collection, or refund of any tax, interest, or penalty under this
title, the prevailing party may be awarded a judgment or a
settlement for -
(1) reasonable administrative costs incurred in connection with
such administrative proceeding within the Internal Revenue
Service, and
(2) reasonable litigation costs incurred in connection with
such court proceeding.
(b) Limitations
(1) Requirement that administrative remedies be exhausted
A judgment for reasonable litigation costs shall not be awarded
under subsection (a) in any court proceeding unless the court
determines that the prevailing party has exhausted the
administrative remedies available to such party within the
Internal Revenue Service. Any failure to agree to an extension of
the time for the assessment of any tax shall not be taken into
account for purposes of determining whether the prevailing party
meets the requirements of the preceding sentence.
(2) Only costs allocable to the United States
An award under subsection (a) shall be made only for reasonable
litigation and administrative costs which are allocable to the
United States and not to any other party.
(3) Costs denied where party prevailing protracts proceedings
No award for reasonable litigation and administrative costs may
be made |
