26 U.S.C. § 6863 — Stay of collection of jeopardy assessments

Page 3838 TITLE 26—INTERNAL REVENUE CODE § 6863 931; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 96–222, title I, § 108(b)(1)(C), Apr. 1, 1980, 94 Stat. 226; Pub. L. 96–223, title I, § 101(f)(9), Apr. 2, 1980, 94 Stat. 253; Pub. L. 100–418, title I, § 1941(b)(2)(N), Aug. 23, 1988, 102 Stat. 1324.) Editorial Notes AMENDMENTS 1988—Subsec. (a). Pub. L. 100–418 substituted ‘‘and 44’’ for ‘‘44, and 45’’. 1980—Subsec. (a). Pub. L. 96–223 which directed the substitution of ‘‘the excise taxes imposed by chapters 41, 42, 43, 44, and 45’’ for ‘‘certain excise taxes’’ was exe- cuted by inserting reference to chapter 45 in view of the amendment by Pub. L. 96–222. Pub. L. 96–222 substituted ‘‘the taxes imposed by chapters 41, 42, 43, and 44’’ for ‘‘certain excise taxes’’. 1976—Subsec. (a). Pub. L. 94–455 struck out ‘‘or his delegate’’ after ‘‘Secretary’’ wherever appearing. 1974—Pub. L. 93–406 substituted ‘‘, gift, and certain excise taxes’’ for ‘‘, and gift taxes’’ in section catchline and ‘‘gift tax, and certain excise taxes)’’ for ‘‘and gift tax)’’ in subsec. (a). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1988 AMENDMENT Amendment by Pub. L. 100–418 applicable to crude oil removed from the premises on or after Aug. 23, 1988, see section 1941(c) of Pub. L. 100–418, set out as a note under section 164 of this title. EFFECTIVE DATE OF 1980 AMENDMENTS Amendment by Pub. L. 96–223 applicable to periods after Feb. 29, 1980, see section 101(i) of Pub. L. 96–223, set out as a note under section 6161 of this title. Amendment by Pub. L. 96–222 effective as if included in the provisions of the Black Lung Benefits Revenue Act of 1977, Pub. L. 95–227, see section 108(b)(4) of Pub. L. 96–222, set out as a note under section 192 of this title. EFFECTIVE DATE OF 1974 AMENDMENT Amendment by Pub. L. 93–406 applicable, except as otherwise provided in section 1017(c) through (i) of Pub. L. 93–406, for plan years beginning after Sept. 2, 1974, but, in the case of plans in existence on Jan. 1, 1974, amendment by Pub. L. 93–406 applicable for plan years beginning after Dec. 31, 1975, see section 1017 of Pub. L. 93–406, set out as an Effective Date; Transitional Rules note under section 410 of this title. § 6863. Stay of collection of jeopardy assessments (a) Bond to stay collection When an assessment has been made under sec- tion 6851, 6852, 6861 or 6862, the collection of the whole or any amount of such assessment may be stayed by filing with the Secretary, within such time as may be fixed by regulations prescribed by the Secretary, a bond in an amount equal to the amount as to which the stay is desired, con- ditioned upon the payment of the amount (to- gether with interest thereon) the collection of which is stayed, at the time at which, but for the making of such assessment, such amount would be due. Upon the filing of the bond the collection of so much of the amount assessed as is covered by the bond shall be stayed. The tax- payer shall have the right to waive such stay at any time in respect of the whole or any part of the amount covered by the bond, and if as a re- sult of such waiver any part of the amount cov- ered by the bond is paid, then the bond shall, at the request of the taxpayer, be proportionately reduced. If any portion of such assessment is abated, the bond shall, at the request of the tax- payer, be proportionately reduced. (b) Further conditions in case of income, estate, or gift taxes In the case of taxes subject to the jurisdiction of the Tax Court— (1) Prior to petition to Tax Court If the bond is given before the taxpayer has filed his petition under section 6213(a), the bond shall contain a further condition that if a petition is not filed within the period pro- vided in such section, then the amount, the collection of which is stayed by the bond, will be paid on notice and demand at any time after the expiration of such period, together with interest thereon from the date of the jeopardy notice and demand to the date of no- tice and demand under this paragraph. (2) Effect of Tax Court decision The bond shall be conditioned upon the pay- ment of so much of such assessment (collec- tion of which is stayed by the bond) as is not abated by a decision of the Tax Court which has become final. If the Tax Court determines that the amount assessed is greater than the amount which should have been assessed, then when the decision of the Tax Court is rendered the bond shall, at the request of the taxpayer, be proportionately reduced. (3) Stay of sale of seized property pending Tax Court decision (A) General rule Where, notwithstanding the provisions of section 6213(a), an assessment has been made under section 6851, 6852, or 6861, the property seized for the collection of the tax shall not be sold— (i) before the expiration of the periods described in subsection (c)(1)(A) and (B), (ii) before the issuance of the notice of deficiency described in section 6851(b) or 6861(b), and the expiration of the period provided in section 6213(a) for filing a peti- tion with the Tax Court, and (iii) if a petition is filed with the Tax Court (whether before or after the making of such assessment), before the expiration of the period during which the assessment of the deficiency would be prohibited if neither sections 6851(a), 6852(a), nor 6861(a) were applicable. Clauses (ii) and (iii) shall not apply in the case of a termination assessment under sec- tion 6851 if the taxpayer does not file a re- turn for the taxable year by the due date (determined with regard to any extensions). (B) Exceptions Such property may be sold if— (i) the taxpayer consents to the sale, (ii) the Secretary determines that the expenses of conservation and maintenance will greatly reduce the net proceeds, or (iii) the property is of the type described in section 6336. Page 3839 TITLE 26—INTERNAL REVENUE CODE § 6867 (C) Review by Tax Court If, but for the application of subparagraph (B), a sale would be prohibited by subpara- graph (A)(iii), then the Tax Court shall have jurisdiction to review the Secretary’s deter- mination under subparagraph (B) that the property may be sold. Such review may be commenced upon motion by either the Sec- retary or the taxpayer. An order of the Tax Court disposing of a motion under this para- graph shall be reviewable in the same man- ner as a decision of the Tax Court. (c) Stay of sale of seized property pending dis- trict court determination under section 7429 (1) General rule Where a jeopardy assessment has been made under section 6862(a), the property seized for the collection of the tax shall not be sold— (A) if a civil action is commenced in ac- cordance with section 7429(b), on or before the day on which the district court judg- ment in such action becomes final, or (B) if subparagraph (A) does not apply, be- fore the day after the expiration of the pe- riod provided in section 7429(a) for request- ing an administrative review, and if such re- view is requested, before the day after the expiration of the period provided in section 7429(b), for commencing an action in the dis- trict court. (2) Exceptions With respect to any property described in paragraph (1), the exceptions provided by sub- section (b)(3)(B) shall apply. (Aug. 16, 1954, ch. 736, 68A Stat. 836; Pub. L. 94–455, title XII, § 1204(c)(7)–(9), title XIX, § 1906(a)(38), (b)(13)(A), Oct. 4, 1976, 90 Stat. 1698, 1830, 1834; Pub. L. 100–203, title X, § 10713(b)(2)(E), Dec. 22, 1987, 101 Stat. 1330–470; Pub. L. 100–647, title VI, § 6245(a), Nov. 10, 1988, 102 Stat. 3750; Pub. L. 101–239, title VII, § 7822(d)(2), Dec. 19, 1989, 103 Stat. 2425; Pub. L. 115–141, div. U, title IV, § 401(a)(321), Mar. 23, 2018, 132 Stat. 1199.) Editorial Notes AMENDMENTS 2018—Subsec. (a). Pub. L. 115–141 substituted ‘‘6852,’’ for ‘‘6852,,’’. 1989—Subsec. (b)(3)(A)(iii). Pub. L. 101–239 made tech- nical correction to Pub. L. 100–203, § 10713(b)(2)(E)(iii), see 1987 Amendment note below. 1988—Subsec. (b)(3)(C). Pub. L. 100–647 added subpar. (C). 1987—Subsec. (a). Pub. L. 100–203, § 10713(b)(2)(E)(i), substituted ‘‘6851, 6852,’’ for ‘‘6851’’. Subsec. (b)(3)(A). Pub. L. 100–203, § 10713(b)(2)(E)(ii), substituted ‘‘6851, 6852, or 6861’’ for ‘‘6851 or 6861’’. Subsec. (b)(3)(A)(iii). Pub. L. 100–203, § 10713(b)(2)(E)(iii), as amended by Pub. L. 101–239, sub- stituted ‘‘6851(a), 6852(a), nor 6861(a)’’ for ‘‘6851(a) nor 6861(a)’’. 1976—Subsec. (a). Pub. L. 94–455, §§ 1204(c)(7), 1906(b)(13)(A), inserted reference to section 6851, sub- stituted ‘‘an assessment’’ for ‘‘a jeopardy assessment’’, struck out ‘‘or his delegate’’ after ‘‘Secretary’’, and substituted ‘‘such assessment’’ for ‘‘the jeopardy as- sessment’’. Subsec. (b)(3)(A). Pub. L. 94–455, § 1204(c)(8), sub- stituted ‘‘an assessment has been made under section 6851 or 6861,’’ for ‘‘a jeopardy assessment has been made under section 6861’’ in provisions preceding cl. (i), added cl. (i), redesignated former cl. (i) as (ii) and substituted ‘‘before the issuance of the notice of deficiency de- scribed in section 6851(b) or 6861(b), and the expiration of the period’’ for ‘‘if section 6861(b) is applicable, prior to the issuance of the notice of deficiency and the expi- ration of the time’’, redesignated former cl. (ii) as (iii) and substituted ‘‘assessment), before the expiration’’ for ‘‘jeopardy assessment under section 6861), prior to the expiration’’ and ‘‘if neither sections 6851(a) nor 6861(a) were applicable’’ for ‘‘if section 6861(a) were not applicable’’, and inserted provisions following cl. (iii). Subsec. (b)(3)(B)(ii). Pub. L. 94–455, § 1906(b)(13)(A), struck out ‘‘or his delegate’’ after ‘‘Secretary’’. Subsec. (b)(3)(C). Pub. L. 94–455, § 1906(a)(38), struck out subpar. (C) which had limited the applicability of subpars. (A) and (B) to jeopardy assessments made on or after Jan. 1, 1955, with respect to taxes imposed by this title, and with respect to taxes imposed by the In- ternal Revenue Code of 1939. Subsec. (c). Pub. L. 94–455, § 1204(c)(9), added subsec. (c). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1989 AMENDMENT Amendment by Pub. L. 101–239 effective as if included in the provision of the Revenue Act of 1987, Pub. L. 100–203, title X, to which such amendment relates, see section 7823 of Pub. L. 101–239, set out as a note under section 26 of this title. EFFECTIVE DATE OF 1988 AMENDMENT Pub. L. 100–647, title VI, § 6245(b), Nov. 10, 1988, 102 Stat. 3751, provided that: ‘‘The amendments made by this section [amending this section] shall take effect on the 90th day after the date of the enactment of this Act [Nov. 10, 1988].’’ EFFECTIVE DATE OF 1976 AMENDMENT Amendment by section 1204(c)(7)–(9) of Pub. L. 94–455 applicable with respect to action taken under section 6851, 6861, or 6862 of this title where notice and demand takes place after Feb. 28, 1977, see section 1204(d) of Pub. L. 94–455, as amended, set out as a note under sec- tion 6851 of this title. Amendment by section 1906(a)(38), (b)(13)(A) of Pub. L. 94–455 effective on first day of first month which be- gins more than ninety days after Oct. 4, 1976, see sec- tion 1906(d)(1) of Pub. L. 94–455, set out as a note under section 6013 of this title. § 6864. Termination of extended period for pay- ment in case of carryback For termination of extensions of time for payment of income tax granted to corporations expecting carrybacks in case of jeopardy, see section 6164(h). (Aug. 16, 1954, ch. 736, 68A Stat. 837.) PART III—SPECIAL RULES WITH RESPECT TO CERTAIN CASH Sec. 6867. Presumptions where owner of large amount of cash is not identified. § 6867. Presumptions where owner of large amount of cash is not identified (a) General rule If the individual who is in physical possession of cash in excess of $10,000 does not claim such cash— (1) as his, or (2) as belonging to another person whose identity the Secretary can readily ascertain and who acknowledges ownership of such cash,