26 U.S.C. § 6157 — Payment of Federal unemployment tax on

Page 3498 TITLE 26—INTERNAL REVENUE CODE [§ 6154 Pub. L. 94–331, § 3(b), 90 Stat. 782; Sept. 3, 1976, Pub. L. 94–396, § 2(a)(2), 90 Stat. 1201; Sept. 17, 1976, Pub. L. 94–414, § 3(b), 90 Stat. 1273; Oct. 4, 1976, Pub. L. 94–455, title XIX, § 1906(b)(13)(A), 90 Stat. 1834; Aug. 13, 1981, Pub. L. 97–34, title VII, § 725(c)(3), 95 Stat. 346; Sept. 3, 1982, Pub. L. 97–248, title III, § 328(b)(3), 96 Stat. 618, re- lated to installment payments of estimated income tax by individuals. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF REPEAL Repeal applicable with respect to taxable years be- ginning after Dec. 31, 1984, see section 414(a)(1) of Pub. L. 98–369, set out as an Effective Date of 1984 Amend- ment note under section 6654 of this title. [§ 6154. Repealed. Pub. L. 100–203, title X, § 10301(b)(1), Dec. 22, 1987, 101 Stat. 1330–429] Section, acts Aug. 16, 1954, ch. 736, 68A Stat. 760; Feb. 26, 1964, Pub. L. 88–272, title I, § 122(a), 78 Stat. 25; Mar. 15, 1966, Pub. L. 89–368, title I, § 104(a), 80 Stat. 64; June 28, 1968, Pub. L. 90–364, title I, § 103(b), 82 Stat. 260; Dec. 23, 1975, Pub. L. 94–164, § 5(c), 89 Stat. 975; June 30, 1976, Pub. L. 94–331, § 3(c), 90 Stat. 782; Sept. 3, 1976, Pub. L. 94–396, § 2(a)(3), 90 Stat. 1201; Sept. 17, 1976, Pub. L. 94–414, § 3(c), 90 Stat. 1273; Oct. 4, 1976, Pub. L. 94–455, title IX, § 901(c)(3), title XIX, § 1906(a)(10), (b)(13)(A), 90 Stat. 1607, 1825, 1834; Nov. 6, 1978, Pub. L. 95–600, title III, § 301(b)(20)(A), 92 Stat. 2823; Jan. 12, 1983, Pub. L. 97–448, title II, § 201(j)(2), 96 Stat. 2396; Oct. 17, 1986, Pub. L. 99–499, title V, § 516(b)(4)(A), 100 Stat. 1771; Oct. 22, 1986, Pub. L. 99–514, title VII, § 701(d)(1), title XV, § 1542(a), 100 Stat. 2341, 2751; Nov. 10, 1988, Pub. L. 100–647, title I, §§ 1007(g)(10), 1015(h), 102 Stat. 3435, 3571, related to installment payments of estimated income tax by corporations. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF REPEAL Repeal applicable to taxable years beginning after Dec. 31, 1987, see section 10301(c) of Pub. L. 100–203, set out as an Effective Date of 1987 Amendment note under section 585 of this title. § 6155. Payment on notice and demand (a) General rule Upon receipt of notice and demand from the Secretary, there shall be paid at the place and time stated in such notice the amount of any tax (including any interest, additional amounts, additions to tax, and assessable penalties) stated in such notice and demand. (b) Cross references (1) For restrictions on assessment and collection of deficiency assessments of taxes subject to the ju- risdiction of the Tax Court, see sections 6212 and 6213. (2) For provisions relating to assessment of claims allowed in a receivership proceeding, see section 6873. (3) For provisions relating to jeopardy assess- ments, see subchapter A of chapter 70. (Aug. 16, 1954, ch. 736, 68A Stat. 760; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 96–589, § 6(i)(7), Dec. 24, 1980, 94 Stat. 3410.) Editorial Notes AMENDMENTS 1980—Subsec. (b)(2). Pub. L. 96–589 struck out ref- erence to a bankruptcy proceeding. 1976—Pub. L. 94–455 struck out ‘‘or his delegate’’ after ‘‘Secretary’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1980 AMENDMENT Amendment by Pub. L. 96–589 effective Oct. 1, 1979, but not applicable to proceedings under Title 11, Bank- ruptcy, commenced before Oct. 1, 1979, see section 7(e) of Pub. L. 96–589, set out as a note under section 108 of this title. [§ 6156. Repealed. Pub. L. 108–357, title VIII, § 867(b)(1), Oct. 22, 2004, 118 Stat. 1622] Section, added Pub. L. 87–61, title II, § 203(c)(1), June 29, 1961, 75 Stat. 125; amended Pub. L. 91–258, title II, § 206(b), (d)(2), May 21, 1970, 84 Stat. 245, 246; Pub. L. 91–605, title III, § 303(a)(10), Dec. 31, 1970, 84 Stat. 1744; Pub. L. 94–280, title III, § 303(a)(10), May 5, 1976, 90 Stat. 456; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 95–599, title V, § 502(a)(9), Nov. 6, 1978, 92 Stat. 2756; Pub. L. 97–248, title II, § 280(c)(2)(C)–(E), Sept. 3, 1982, 96 Stat. 564; Pub. L. 97–424, title V, § 516(a)(6), Jan. 6, 1983, 96 Stat. 2183; Pub. L. 100–17, title V, § 502(d)(2), Apr. 2, 1987, 101 Stat. 257; Pub. L. 101–508, title XI, § 11211(f)(2), Nov. 5, 1990, 104 Stat. 1388–427; Pub. L. 102–240, title VIII, § 8002(c)(2), Dec. 18, 1991, 105 Stat. 2203; Pub. L. 105–178, title IX, § 9002(a)(2)(B), June 9, 1998, 112 Stat. 500, related to in- stallment payments of tax on use of highway motor ve- hicles. A prior section 6156 was renumbered section 6157 of this title, prior to repeal by Pub. L. 91–53, § 2(a), Aug. 7, 1969, 83 Stat. 91. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF REPEAL Repeal applicable to taxable periods beginning after Oct. 22, 2004, see section 867(e) of Pub. L. 108–357, set out as an Effective Date of 2004 Amendment note under sec- tion 4481 of this title. § 6157. Payment of Federal unemployment tax on quarterly or other time period basis (a) General rule Every person who for the calendar year is an employer (as defined in section 3306(a)) shall— (1) if the person is such an employer for the preceding calendar year (determined by only taking into account wages paid and employ- ment during such preceding calendar year), compute the tax imposed by section 3301 for each of the first 3 calendar quarters in the cal- endar year on wages paid for services with re- spect to which the person is such an employer for such preceding calendar year (as so deter- mined), and (2) if the person is not such an employer for the preceding calendar year with respect to any services (as so determined), compute the tax imposed by section 3301 on wages paid for services with respect to which the person is not such an employer for the preceding cal- endar year (as so determined)— (A) for the period beginning with the first day of the calendar year and ending with the last day of the calendar quarter (excluding the last calendar quarter) in which such per- son becomes such an employer with respect to such services, and (B) for the third calendar quarter of such year, if the period specified in subparagraph Page 3499 TITLE 26—INTERNAL REVENUE CODE § 6157 (A) includes only the first two calendar quarters of the calendar year. The tax for any calendar quarter or other pe- riod shall be computed as provided in sub- section (b) and the tax as so computed shall, except as otherwise provided in subsection (c), be paid in such manner and at such time as may be provided in regulations prescribed by the Secretary. (b) Computation of tax The tax for any calendar quarter or other pe- riod referred to in paragraph (1) or (2) of sub- section (a) shall be computed by multiplying the amount of wages (as defined in section 3306(b)) paid in such calendar quarter or other period by 0.6 percent. In the case of wages paid in any cal- endar quarter or other period during a calendar year to which paragraph (1) of section 3301 ap- plies, the amount of such wages shall be multi- plied by 0.8 percent in lieu of 0.6 percent. (c) Special rule where accumulated amount does not exceed $100 Nothing in this section shall require the pay- ment of tax with respect to any calendar quarter or other period if the tax under section 3301 for such period, plus any unpaid amounts for prior periods in the calendar year, does not exceed $100. (Added Pub. L. 91–53, § 2(a), Aug. 7, 1969, 83 Stat. 91; amended Pub. L. 91–373, title I, § 101(b)(1), (2), Aug. 10, 1970, 84 Stat. 696; Pub. L. 92–329, § 2(b), June 30, 1972, 86 Stat. 398; Pub. L. 94–455, title XIX, § 1906(a)(11), (b)(13)(A), Oct. 4, 1976, 90 Stat. 1825, 1834; Pub. L. 94–566, title I, § 114(b), title II, § 211(e)(3) [(c)(3)], Oct. 20, 1976, 90 Stat. 2669, 2677; Pub. L. 97–248, title II, § 271(b)(2)(C), (c)(3)(C), Sept. 3, 1982, 96 Stat. 555; Pub. L. 98–76, title II, § 231(b)(1), Aug. 12, 1983, 97 Stat. 428; Pub. L. 100–647, title VII, § 7106(c)(1), Nov. 10, 1988, 102 Stat. 3773; Pub. L. 101–239, title VII, § 7841(d)(12), Dec. 19, 1989, 103 Stat. 2428.) Editorial Notes PRIOR PROVISIONS A prior section 6157, act Aug. 16, 1954, ch. 736, 68A Stat. 761, § 6156; renumbered § 6157, June 29, 1961, Pub. L. 87–61, title II, § 203(c)(1), 75 Stat. 125, made a cross ref- erence provision for payment of taxes under provisions of the Tariff Act, prior to repeal by Pub. L. 91–53, § 2(a), Aug. 7, 1969, 83 Stat. 91. AMENDMENTS 1989—Subsec. (a). Pub. L. 101–239 substituted ‘‘sub- section (c)’’ for ‘‘subsections (c) and (d)’’ in last sen- tence. 1988—Subsec. (d). Pub. L. 100–647 struck out subsec. (d) which related to quarterly payment of railroad un- employment repayment tax. 1983—Subsec. (d). Pub. L. 98–76 added subsec. (d). 1982—Subsec. (b). Pub. L. 97–248, § 271(c)(3)(C), sub- stituted ‘‘0.6’’ for ‘‘0.5’’ in two places. Pub. L. 97–248, § 271(b)(2)(C), substituted ‘‘0.8’’ for ‘‘0.7’’. 1976—Subsec. (a). Pub. L. 94–566, § 114(b), amended sub- sec. (a) generally, changing the general rule covering payment of Federal unemployment tax on a quarterly or other time period basis to conform to the altered definitions of employment and wages pertaining to do- mestic and agricultural service in section 3306 of this title. Pub. L. 94–455, § 1906(a)(11)(B), (b)(13)(A), substituted ‘‘subsection (c)’’ for ‘‘subsections (c) and (d)’’ and struck out ‘‘or his delegate’’ after ‘‘Secretary’’. Subsec. (b). Pub. L. 94–566, § 211(e)(3) [(c)(3)], sub- stituted ‘‘In the case of wages paid in any calendar quarter or other period during a calendar year to which paragraph (1) of section 3301 applies, the amount of such wages shall be multiplied by 0.7 percent in lieu of 0.5 percent’’ for ‘‘In the case of wages paid in any cal- endar quarter or other period during 1973, the amount of such wages shall be multiplied by 0.58 percent in lieu of 0.5 percent’’. Subsecs. (c), (d). Pub. L. 94–455, § 1906(a)(11)(A), redes- ignated subsec. (d) as (c). Former subsec. (c), which re- lated to the percentage reduction for 1970 and 1971 of the tax computed in subsec. (b), was struck out. 1972—Subsec. (b). Pub. L. 92–329 inserted provisions setting forth the computation of tax in the case of wages paid in any calendar quarter or other period dur- ing 1973. 1970—Subsec. (a)(1). Pub. L. 91–373, § 101(b)(1), reduced from 4 to 1 the number of individuals which a person had to employ on each of some 20 days during the pre- ceding calendar year and inserted provision covering persons who, during any calendar quarter in the pre- ceding calendar year, paid wages of $1,500 or more. Subsec. (b). Pub. L. 91–373, § 101(b)(2), substituted ‘‘0.5 percent’’ for ‘‘the number of percentage points (includ- ing fractional points) by which the rate of tax specified in section 3301 exceeds .7 percent’’. be the date on which payment would have been required if such remainder had been the tax. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1988 AMENDMENT Amendment by Pub. L. 100–647 applicable to remu- neration paid after Dec. 31, 1988, see section 7106(d) of Pub. L. 100–647, set out as a note under section 3321 of this title. EFFECTIVE DATE OF 1983 AMENDMENT Amendment by Pub. L. 98–76 applicable to remunera- tion paid after June 30, 1986, see section 231(d) of Pub. L. 98–76, set out as an Effective Date note under section 3321 of this title. EFFECTIVE DATE OF 1982 AMENDMENT Amendment by section 271(b)(2)(C) of Pub. L. 97–248 applicable to remuneration paid after Dec. 31, 1982, see section 271(d)(1) of Pub. L. 97–248, as amended, set out as a note under section 3301 of this title. Amendment by section 271(c)(3)(C) of Pub. L. 97–248 applicable to remuneration paid after Dec. 31, 1984, see section 271(d)(2) of Pub. L. 97–248, as amended, set out as a note under section 3301 of this title. EFFECTIVE DATE OF 1976 AMENDMENT Amendment by section 114(b) of Pub. L. 94–566 effec- tive with respect to remuneration paid after Dec. 31, 1977, for services performed after that date, see section 114(c) of Pub. L. 94–566 set out as a note under section 3306 of this title. Amendment by section 211(e)(3) of Pub. L. 94–566 ef- fective Oct. 20, 1976, see section 211(d)(3) of Pub. L. 94–566, set out as a note under section 1101 of Title 42, The Public Health and Welfare. EFFECTIVE DATE OF 1970 AMENDMENT Amendment by section 101(b)(1) of Pub. L. 91–373 ap- plicable with respect to calendar years beginning after Dec. 31, 1971, see section 101(c)(1) of Pub. L. 91–373, set out as a note under section 3306 of this title. Pub. L. 91–373, title I, § 101(c)(2), Aug. 10, 1970, 84 Stat. 696, provided that: ‘‘The amendment made by sub- section (b)(2) [amending this section] shall apply with respect to calendar years beginning after December 31, 1969.’’ Page 3500 TITLE 26—INTERNAL REVENUE CODE [§ 6158 EFFECTIVE DATE Pub. L. 91–53, § 4(a), Aug. 7, 1969, 83 Stat. 93, provided that: ‘‘The amendments made by the first two sections of this Act [enacting section 6317 and amending this section and sections 3306, 6201, 6513, and 6601 of this title] shall apply with respect to calendar years begin- ning after December 31, 1969.’’ EXTENSION OF TIME FOR PAYMENT OF ADDITIONAL FUTA TAXES Pub. L. 102–244, § 4, Feb. 7, 1992, 106 Stat. 4, provided that: ‘‘(a) IN GENERAL.—Notwithstanding any other provi- sion of law, if a qualified taxpayer is required to pay additional taxes for taxable years beginning in 1991 with respect to any employment in any State by reason of such State being declared a credit reduction State, such taxpayer may elect to defer the filing and pay- ment of such additional taxes to a date no later than June 30, 1992. ‘‘(b) INTEREST.—Notwithstanding subsection (a), for purposes of section 6601(a) of the Internal Revenue Code of 1986, the last date prescribed for payment of any ad- ditional taxes for which an election is made under sub- section (a) shall be January 31, 1992. ‘‘(c) DEFINITIONS.—For purposes of this section— ‘‘(1) QUALIFIED TAXPAYER.—The term ‘qualified tax- payer’ means a taxpayer— ‘‘(A) in a State which has been declared a credit reduction State for taxable years beginning in 1991, and ‘‘(B) who did not receive notice of such credit re- duction before December 1, 1991 from either the State unemployment compensation agency or the Internal Revenue Service. ‘‘(2) CREDIT REDUCTION STATE.—The term ‘credit re- duction State’ means a State with respect to which the Internal Revenue Service has determined that a reduction in credits is applicable for taxable years be- ginning in 1991 pursuant to the provisions of section 3302 of the Internal Revenue Code of 1986. ‘‘(d) TIME AND MANNER FOR MAKING ELECTION.—An election under this section shall be made at such time and in such manner as the Secretary of the Treasury shall prescribe.’’ WAGES PAID IN 1970 CALENDAR QUARTERS ENDING BEFORE AUGUST 10, 1970 Pub. L. 91–373, title III, § 301(b), Aug. 10, 1970, 84 Stat. 713, as amended by Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that: ‘‘For purposes of section 6157 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] (relating to payment of Federal unemployment tax on quarterly or other time period basis), in com- puting tax as required by subsections (a)(1) and (2) of such section, the percentage contained in subsection (b) of such section applicable with respect to wages paid in any calendar quarter in 1970 ending before the date of the enactment of this Act [Aug. 10, 1970] shall be treated as being 0.4 percent.’’ [§ 6158. Repealed. Pub. L. 101–508, title XI, § 11801(a)(44), Nov. 5, 1990, 104 Stat. 1388–521] Section, added Pub. L. 94–452, § 3(a), Oct. 2, 1976, 90 Stat. 1512; amended Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834, related to in- stallment payment of tax attributable to divestitures pursuant to Bank Holding Company Act Amendments of 1970. Statutory Notes and Related Subsidiaries SAVINGS PROVISION For provisions that nothing in repeal by Pub. L. 101–508 be construed to affect treatment of certain transactions occurring, property acquired, or items of income, loss, deduction, or credit taken into account prior to Nov. 5, 1990, for purposes of determining liabil- ity for tax for periods ending after Nov. 5, 1990, see sec- tion 11821(b) of Pub. L. 101–508, set out as a note under section 45K of this title. § 6159. Agreements for payment of tax liability in installments (a) Authorization of agreements The Secretary is authorized to enter into writ- ten agreements with any taxpayer under which such taxpayer is allowed to make payment on any tax in installment payments if the Sec- retary determines that such agreement will fa- cilitate full or partial collection of such liabil- ity. (b) Extent to which agreements remain in effect (1) In general Except as otherwise provided in this sub- section, any agreement entered into by the Secretary under subsection (a) shall remain in effect for the term of the agreement. (2) Inadequate information or jeopardy The Secretary may terminate any agree- ment entered into by the Secretary under sub- section (a) if— (A) information which the taxpayer pro- vided to the Secretary prior to the date such agreement was entered into was inaccurate or incomplete, or (B) the Secretary believes that collection of any tax to which an agreement under this section relates is in jeopardy. (3) Subsequent change in financial conditions If the Secretary makes a determination that the financial condition of a taxpayer with whom the Secretary has entered into an agree- ment under subsection (a) has significantly changed, the Secretary may alter, modify, or terminate such agreement. (4) Failure to pay an installment or any other tax liability when due or to provide re- quested financial information The Secretary may alter, modify, or termi- nate an agreement entered into by the Sec- retary under subsection (a) in the case of the failure of the taxpayer— (A) to pay any installment at the time such installment payment is due under such agreement, (B) to pay any other tax liability at the time such liability is due, or (C) to provide a financial condition update as requested by the Secretary. (5) Notice requirements The Secretary may not take any action under paragraph (2), (3), or (4) unless— (A) a notice of such action is provided to the taxpayer not later than the day 30 days before the date of such action, and (B) such notice includes an explanation why the Secretary intends to take such ac- tion. The preceding sentence shall not apply in any case in which the Secretary believes that col- lection of any tax to which an agreement under this section relates is in jeopardy.