26 U.S.C. § 5872 — Forfeitures

Page 3291 TITLE 26—INTERNAL REVENUE CODE § 5881 § 5872. Forfeitures (a) Laws applicable Any firearm involved in any violation of the provisions of this chapter shall be subject to sei- zure and forfeiture, and (except as provided in subsection (b)) all the provisions of internal rev- enue laws relating to searches, seizures, and for- feitures of unstamped articles are extended to and made to apply to the articles taxed under this chapter, and the persons to whom this chap- ter applies. (b) Disposal In the case of the forfeiture of any firearm by reason of a violation of this chapter, no notice of public sale shall be required; no such firearm shall be sold at public sale; if such firearm is forfeited for a violation of this chapter and there is no remission or mitigation of forfeiture thereof, it shall be delivered by the Secretary to the Administrator of General Services, General Services Administration, who may order such firearm destroyed or may sell it to any State, or possession, or political subdivision thereof, or at the request of the Secretary, may authorize its retention for official use of the Treasury Depart- ment, or may transfer it without charge to any executive department or independent establish- ment of the Government for use by it. (Added Pub. L. 90–618, title II, § 201, Oct. 22, 1968, 82 Stat. 1235; amended Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.) Editorial Notes PRIOR PROVISIONS Provisions similar to those comprising this section were contained in prior section 5862, act Aug. 16, 1954, ch. 736, 68A Stat. 729, prior to the general revision of this chapter by Pub. L. 90–618. AMENDMENTS 1976—Subsec. (b). Pub. L. 94–455 struck out ‘‘or his delegate’’ after ‘‘Secretary’’ wherever appearing. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective on first day of first month following October 1968, see section 207(a) of Pub. L. 90–618, set out as a note under section 5801 of this title. CHAPTER 54—GREENMAIL Sec. 5881. Greenmail. § 5881. Greenmail (a) Imposition of tax There is hereby imposed on any person who re- ceives greenmail a tax equal to 50 percent of gain or other income of such person by reason of such receipt. (b) Greenmail For purposes of this section, the term ‘‘greenmail’’ means any consideration trans- ferred by a corporation (or any person acting in concert with such corporation) to directly or in- directly acquire stock of such corporation from any shareholder if— (1) such shareholder held such stock (as de- termined under section 1223) for less than 2 years before entering into the agreement to make the transfer, (2) at some time during the 2-year period ending on the date of such acquisition— (A) such shareholder, (B) any person acting in concert with such shareholder, or (C) any person who is related to such shareholder or person described in subpara- graph (B), made or threatened to make a public tender offer for stock of such corporation, and (3) such acquisition is pursuant to an offer which was not made on the same terms to all shareholders. For purposes of the preceding sentence, pay- ments made in connection with, or in trans- actions related to, an acquisition shall be treat- ed as paid in such acquisition. (c) Other definitions For purposes of this section— (1) Public tender offer The term ‘‘public tender offer’’ means any offer to purchase or otherwise acquire stock or assets in a corporation if such offer was or would be required to be filed or registered with any Federal or State agency regulating securi- ties. (2) Related person A person is related to another person if the relationship between such persons would re- sult in the disallowance of losses under section 267 or 707(b). (d) Tax applies whether or not amount recog- nized The tax imposed by this section shall apply whether or not the gain or other income referred to in subsection (a) is recognized. (e) Administrative provisions For purposes of the deficiency procedures of subtitle F, any tax imposed by this section shall be treated as a tax imposed by subtitle A. (Added Pub. L. 100–203, title X, § 10228(a), Dec. 22, 1987, 101 Stat. 1330–417; amended Pub. L. 100–647, title II, § 2004(o)(1)(A), (B)(i), (C), (2), Nov. 10, 1988, 102 Stat. 3608.) Editorial Notes AMENDMENTS 1988—Subsec. (a). Pub. L. 100–647, § 2004(o)(1)(A), sub- stituted ‘‘gain or other income of such person by reason of such receipt’’ for ‘‘gain realized by such person on such receipt’’. Subsec. (b). Pub. L. 100–647, § 2004(o)(1)(B)(i), sub- stituted ‘‘a corporation (or any person acting in con- cert with such corporation) to directly or indirectly ac- quire stock of such corporation’’ for ‘‘a corporation to directly or indirectly acquire its stock’’. Subsec. (d). Pub. L. 100–647, § 2004(o)(1)(C), substituted ‘‘amount’’ for ‘‘gain’’ in heading and inserted ‘‘or other income’’ after ‘‘the gain’’ in text. Subsec. (e). Pub. L. 100–647, § 2004(o)(2), added subsec. (e).