26 U.S.C. § 6304 — Fair tax collection practices

Page 3553 TITLE 26—INTERNAL REVENUE CODE § 6304 ‘‘(2) such failure occurs before July 1, 1998.’’ DELAYED DEPOSITS OF AIRPORT TRUST FUND TAX REVENUES Pub. L. 105–34, title X, § 1031(g), Aug. 5, 1997, 111 Stat. 933, provided that: ‘‘Notwithstanding section 6302 of the Internal Revenue Code of 1986— ‘‘(1) in the case of deposits of taxes imposed by sec- tion 4261 of such Code, the due date for any such de- posit which would (but for this subsection) be re- quired to be made after August 14, 1997, and before October 1, 1997, shall be October 10, 1997, ‘‘(2) in the case of deposits of taxes imposed by sec- tion 4261 of such Code, the due date for any such de- posit which would (but for this subsection) be re- quired to be made after August 14, 1998, and before October 1, 1998, shall be October 5, 1998, and ‘‘(3) in the case of deposits of taxes imposed by sec- tions 4081(a)(2)(A)(ii), 4091, and 4271 of such Code, the due date for any such deposit which would (but for this subsection) be required to be made after July 31, 1998, and before October 1, 1998, shall be October 5, 1998.’’ DELAY OF ELECTRONIC FUND TRANSFER REQUIREMENT Pub. L. 104–188, title I, § 1809, Aug. 20, 1996, 110 Stat. 1904, provided that: ‘‘Notwithstanding any other provi- sion of law, the increase in the applicable required per- centages for fiscal year 1997 in clauses (i)(IV) and (ii)(IV) of section 6302(h)(2)(C) of the Internal Revenue Code of 1986 shall not take effect before July 1, 1997.’’ DEPOSITARY SCHEDULES Pub. L. 98–76, title II, § 226, Aug. 12, 1983, 97 Stat. 426, as amended by Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that: ‘‘Effective on and after January 1, 1984, the times for making payments prescribed under section 6302 of the Internal Revenue Code of 1986 [for- merly I.R.C. 1954] with respect to the taxes imposed by chapter 22 of such Code shall be the same as the times prescribed under such section which apply to the taxes imposed by chapters 21 and 24 of such Code.’’ Pub. L. 98–76, title II, § 227(c), Aug. 12, 1983, 97 Stat. 426, provided that: ‘‘Section 226 [set out above] shall take effect on January 1, 1984.’’ § 6303. Notice and demand for tax (a) General rule Where it is not otherwise provided by this title, the Secretary shall, as soon as practicable, and within 60 days, after the making of an as- sessment of a tax pursuant to section 6203, give notice to each person liable for the unpaid tax, stating the amount and demanding payment thereof. Such notice shall be left at the dwelling or usual place of business of such person, or shall be sent by mail to such person’s last known address. (b) Assessment prior to last date for payment Except where the Secretary believes collection would be jeopardized by delay, if any tax is as- sessed prior to the last date prescribed for pay- ment of such tax, payment of such tax shall not be demanded under subsection (a) until after such date. (Aug. 16, 1954, ch. 736, 68A Stat. 775; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.) Editorial Notes AMENDMENTS 1976—Pub. L. 94–455 struck out ‘‘or his delegate’’ after ‘‘Secretary’’ wherever appearing. § 6304. Fair tax collection practices (a) Communication with the taxpayer Without the prior consent of the taxpayer given directly to the Secretary or the express permission of a court of competent jurisdiction, the Secretary may not communicate with a tax- payer in connection with the collection of any unpaid tax— (1) at any unusual time or place or a time or place known or which should be known to be inconvenient to the taxpayer; (2) if the Secretary knows the taxpayer is represented by any person authorized to prac- tice before the Internal Revenue Service with respect to such unpaid tax and has knowledge of, or can readily ascertain, such person’s name and address, unless such person fails to respond within a reasonable period of time to a communication from the Secretary or unless such person consents to direct communication with the taxpayer; or (3) at the taxpayer’s place of employment if the Secretary knows or has reason to know that the taxpayer’s employer prohibits the taxpayer from receiving such communication. In the absence of knowledge of circumstances to the contrary, the Secretary shall assume that the convenient time for communicating with a taxpayer is after 8 a.m. and before 9 p.m., local time at the taxpayer’s location. (b) Prohibition of harassment and abuse The Secretary may not engage in any conduct the natural consequence of which is to harass, oppress, or abuse any person in connection with the collection of any unpaid tax. Without lim- iting the general application of the foregoing, the following conduct is a violation of this sub- section: (1) The use or threat of use of violence or other criminal means to harm the physical person, reputation, or property of any person. (2) The use of obscene or profane language or language the natural consequence of which is to abuse the hearer or reader. (3) Causing a telephone to ring or engaging any person in telephone conversation repeat- edly or continuously with intent to annoy, abuse, or harass any person at the called num- ber. (4) Except as provided under rules similar to the rules in section 804 of the Fair Debt Col- lection Practices Act (15 U.S.C. 1692b), the placement of telephone calls without meaning- ful disclosure of the caller’s identity. (c) Civil action for violations of section For civil action for violations of this section, see section 7433. (Added Pub. L. 105–206, title III, § 3466(a), July 22, 1998, 112 Stat. 768.) Editorial Notes PRIOR PROVISIONS A prior section 6304, act Aug. 16, 1954, ch. 736, 68A Stat. 776, related to a cross reference to sections 4504 and 4601 for collection under the Tariff Act of 1930, prior to repeal by Pub. L. 94–455, title XIX, § 1906(a)(18), (d)(1), Oct. 4, 1976, 90 Stat. 1825, 1835, effective on first day of first month which begins more than 90 days after Oct. 4, 1976. Page 3554 TITLE 26—INTERNAL REVENUE CODE § 6305 Statutory Notes and Related Subsidiaries EFFECTIVE DATE Pub. L. 105–206, title III, § 3466(c), July 22, 1998, 112 Stat. 769, provided that: ‘‘The amendments made by this section [enacting this section] shall take effect on the date of the enactment of this Act [July 22, 1998].’’ § 6305. Collection of certain liability (a) In general Upon receiving a certification from the Sec- retary of Health and Human Services, under sec- tion 452(b) of the Social Security Act with re- spect to any individual, the Secretary shall as- sess and collect the amount certified by the Sec- retary of Health and Human Services, in the same manner, with the same powers, and (except as provided in this section) subject to the same limitations as if such amount were a tax im- posed by subtitle C the collection of which would be jeopardized by delay, except that— (1) no interest or penalties shall be assessed or collected, (2) for such purposes, paragraphs (4), (6), and (8) of section 6334(a) (relating to property ex- empt from levy) shall not apply, (3) there shall be exempt from levy so much of the salary, wages, or other income of an in- dividual as is being withheld therefrom in gar- nishment pursuant to a judgment entered by a court of competent jurisdiction for the sup- port of his minor children, (4) in the case of the first assessment against an individual for delinquency under a court or administrative order against such individual for a particular person or persons, the collec- tion shall be stayed for a period of 60 days im- mediately following notice and demand as de- scribed in section 6303, and (5) no additional fee may be assessed for ad- justments to an amount previously certified pursuant to such section 452(b) with respect to the same obligor. (b) Review of assessments and collections No court of the United States, whether estab- lished under article I or article III of the Con- stitution, shall have jurisdiction of any action, whether legal or equitable, brought to restrain or review the assessment and collection of amounts by the Secretary under subsection (a), nor shall any such assessment and collection be subject to review by the Secretary in any pro- ceeding. This subsection does not preclude any legal, equitable, or administrative action against the State by an individual in any State court or before any State agency to determine his liability for any amount assessed against him and collected, or to recover any such amount collected from him, under this section. (Added Pub. L. 93–647, § 101(b)(1), Jan. 4, 1975, 88 Stat. 2358; amended Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 97–35, title XXIII, § 2332(g), Aug. 13, 1981, 95 Stat. 862; Pub. L. 104–193, title III, § 361(a), Aug. 22, 1996, 110 Stat. 2242.) Editorial Notes REFERENCES IN TEXT Section 452(b) of the Social Security Act, referred to in subsec. (a), is classified to section 652(b) of Title 42, The Public Health and Welfare. AMENDMENTS 1996—Subsec. (a). Pub. L. 104–193, § 361(a)(4), sub- stituted ‘‘Secretary of Health and Human Services’’ for ‘‘Secretary of Health, Education, and Welfare’’ in two places in introductory provisions. Subsec. (a)(5). Pub. L. 104–193, § 361(a)(1)–(3), added par. (5). 1981—Subsec. (a)(4). Pub. L. 97–35 inserted reference to administrative order. 1976—Subsecs. (a), (b). Pub. L. 94–455 struck out ‘‘or his delegate’’ after ‘‘Secretary’’ wherever appearing. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1996 AMENDMENT Pub. L. 104–193, title III, § 361(b), Aug. 22, 1996, 110 Stat. 2242, provided that: ‘‘The amendments made by this section [amending this section] shall become effec- tive October 1, 1997.’’ For provisions relating to effective date of title III of Pub. L. 104–193, see section 395(a)–(c) of Pub. L. 104–193, set out as a note under section 654 of Title 42, The Pub- lic Health and Welfare. EFFECTIVE DATE OF 1981 AMENDMENT Amendment by Pub. L. 97–35 effective, except as oth- erwise specifically provided, on Oct. 1, 1981, see section 2336 of Pub. L. 97–35, set out as a note under section 651 of Title 42, The Public Health and Welfare. EFFECTIVE DATE Section effective Aug. 1, 1975, see section 101(f) of Pub. L. 93–647, set out as a note under section 651 of Title 42, the Public Health and Welfare. § 6306. Qualified tax collection contracts (a) In general Nothing in any provision of law shall be con- strued to prevent the Secretary from entering into a qualified tax collection contract. (b) Qualified tax collection contract For purposes of this section, the term ‘‘quali- fied tax collection contract’’ means any con- tract which— (1) is for the services of any person (other than an officer or employee of the Treasury Department)— (A) to locate and contact any taxpayer specified by the Secretary, (B) to request full payment from such tax- payer of an amount of Federal tax specified by the Secretary and, if such request cannot be met by the taxpayer, to offer the tax- payer an installment agreement providing for full payment of such amount during a pe- riod not to exceed 7 years, and (C) to obtain financial information speci- fied by the Secretary with respect to such taxpayer, (2) prohibits each person providing such services under such contract from committing any act or omission which employees of the Internal Revenue Service are prohibited from committing in the performance of similar services, (3) prohibits subcontractors from— (A) having contacts with taxpayers, (B) providing quality assurance services, and (C) composing debt collection notices, and (4) permits subcontractors to perform other services only with the approval of the Sec- retary.