26 U.S.C. § 7463 — Disputes involving $50,000 or less

Page 3924 TITLE 26—INTERNAL REVENUE CODE § 7460 EFFECTIVE DATE OF 1982 AMENDMENT Amendment by Pub. L. 97–248 applicable to partner- ship 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 part- ner 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 a note under section 702 of this title. EFFECTIVE DATE OF 1976 AMENDMENT Amendment by section 1306(b)(2) of Pub. L. 94–455 ap- plicable 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 Oct. 4, 1976 but only with respect to determinations (or re- quests for determinations) made after Jan. 1, 1976, see section 1306(c) of Pub. L. 94–455, set out as an Effective Date note under section 7428 of this title. EFFECTIVE DATE OF 1974 AMENDMENT Amendment by Pub. L. 93–406 applicable to pleadings filed more than one year after Sept. 2, 1974, see section 1041(d) of Pub. L. 93–406, set out as an Effective Date note under section 7476 of this title. § 7460. Provisions of special application to divi- sions (a) Hearings, determinations, and reports A division shall hear, and make a determina- tion upon, any proceeding instituted before the Tax Court and any motion in connection there- with, assigned to such division by the chief judge, and shall make a report of any such de- termination which constitutes its final disposi- tion of the proceeding. (b) Effect of action by a division The report of the division shall become the re- port of the Tax Court within 30 days after such report by the division, unless within such period the chief judge has directed that such report shall be reviewed by the Tax Court. Any prelimi- nary action by a division which does not form the basis for the entry of the final decision shall not be subject to review by the Tax Court except in accordance with such rules as the Tax Court may prescribe. The report of a division shall not be a part of the record in any case in which the chief judge directs that such report shall be re- viewed by the Tax Court. (Aug. 16, 1954, ch. 736, 68A Stat. 887.) § 7461. Publicity of proceedings (a) General rule Except as provided in subsection (b), all re- ports of the Tax Court and all evidence received by the Tax Court and its divisions, including a transcript of the stenographic report of the hearings, shall be public records open to the in- spection of the public. (b) Exceptions (1) Trade secrets or other confidential informa- tion The Tax Court may make any provision which is necessary to prevent the disclosure of trade secrets or other confidential informa- tion, including a provision that any document or information be placed under seal to be opened only as directed by the court. (2) Evidence, etc. After the decision of the Tax Court in any proceeding has become final, the Tax Court may, upon motion of the taxpayer or the Sec- retary, permit the withdrawal by the party en- titled thereto of originals of books, docu- ments, and records, and of models, diagrams, and other exhibits, introduced in evidence be- fore the Tax Court or any division; or the Tax Court may, on its own motion, make such other disposition thereof as it deems advis- able. (Aug. 16, 1954, ch. 736, 68A Stat. 887; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 98–369, div. A, title IV, § 465(a), July 18, 1984, 98 Stat. 825.) Editorial Notes AMENDMENTS 1984—Pub. L. 98–369, in amending section generally, designated existing provisions as subsecs. (a) and (b)(2), added subsec. (b)(1), and in subsec. (b)(2), as so des- ignated, struck out reference to the Secretary’s dele- gate. 1976—Pub. L. 94–455 struck out ‘‘or his delegate’’ after ‘‘Secretary’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1984 AMENDMENT Pub. L. 98–369, div. A, title IV, § 465(b), July 18, 1984, 98 Stat. 825, provided that: ‘‘The amendment made by subsection (a) [amending this section] shall take effect on the date of the enactment of this Act [July 18, 1984].’’ § 7462. Publication of reports The Tax Court shall provide for the publica- tion of its reports at the Government Publishing Office in such form and manner as may be best adapted for public information and use, and such authorized publication shall be competent evi- dence of the reports of the Tax Court therein contained in all courts of the United States and of the several States without any further proof or authentication thereof. Such reports shall be subject to sale in the same manner and upon the same terms as other public documents. (Aug. 16, 1954, ch. 736, 68A Stat. 887; Pub. L. 113–235, div. H, title I, § 1301(b), Dec. 16, 2014, 128 Stat. 2537.) Statutory Notes and Related Subsidiaries CHANGE OF NAME ‘‘Government Publishing Office’’ substituted for ‘‘Government Printing Office’’ in text on authority of section 1301(b) of Pub. L. 113–235, set out as a note pre- ceding section 301 of Title 44, Public Printing and Docu- ments. § 7463. Disputes involving $50,000 or less (a) In general In the case of any petition filed with the Tax Court for a redetermination of a deficiency where neither the amount of the deficiency placed in dispute, nor the amount of any claimed overpayment, exceeds— (1) $50,000 for any one taxable year, in the case of the taxes imposed by subtitle A, Page 3925 TITLE 26—INTERNAL REVENUE CODE § 7463 (2) $50,000, in the case of the tax imposed by chapter 11, (3) $50,000 for any one calendar year, in the case of the tax imposed by chapter 12, or (4) $50,000 for any 1 taxable period (or, if there is no taxable period, taxable event) in the case of any tax imposed by subtitle D which is described in section 6212(a) (relating to a notice of deficiency), at the option of the taxpayer concurred in by the Tax Court or a division thereof before the hearing of the case, proceedings in the case shall be conducted under this section. Notwith- standing the provisions of section 7453, such pro- ceedings shall be conducted in accordance with such rules of evidence, practice, and procedure as the Tax Court may prescribe. A decision, to- gether with a brief summary of the reasons therefor, in any such case shall satisfy the re- quirements of sections 7459(b) and 7460. (b) Finality of decisions A decision entered in any case in which the proceedings are conducted under this section shall not be reviewed in any other court and shall not be treated as a precedent for any other case. (c) Limitation of jurisdiction In any case in which the proceedings are con- ducted under this section, notwithstanding the provisions of sections 6214(a) and 6512(b), no de- cision shall be entered redetermining the amount of a deficiency, or determining an over- payment, except with respect to amounts placed in dispute within the limits described in sub- section (a) and with respect to amounts con- ceded by the parties. (d) Discontinuance of proceedings At any time before a decision entered in a case in which the proceedings are conducted under this section becomes final, the taxpayer or the Secretary may request that further proceedings under this section in such case be discontinued. The Tax Court, or the division thereof hearing such case, may, if it finds that (1) there are rea- sonable grounds for believing that the amount of the deficiency placed in dispute, or the amount of an overpayment, exceeds the applica- ble jurisdictional amount described in sub- section (a), and (2) the amount of such excess is large enough to justify granting such request, discontinue further proceedings in such case under this section. Upon any such discontinu- ance, proceedings in such case shall be con- ducted in the same manner as cases to which the provisions of sections 6214(a) and 6512(b) apply. (e) Amount of deficiency in dispute For purposes of this section, the amount of any deficiency placed in dispute includes addi- tions to the tax, additional amounts, and pen- alties imposed by chapter 68, to the extent that the procedures described in subchapter B of chapter 63 apply. (f) Additional cases in which proceedings may be conducted under this section At the option of the taxpayer concurred in by the Tax Court or a division thereof before the hearing of the case, proceedings may be con- ducted under this section (in the same manner as a case described in subsection (a)) in the case of— (1) a petition to the Tax Court under section 6015(e) in which the amount of relief sought does not exceed $50,000, (2) an appeal under section 6330(d)(1)(A) to the Tax Court of a determination in which the unpaid tax does not exceed $50,000, and (3) a petition to the Tax Court under section 6404(h) in which the amount of the abatement sought does not exceed $50,000. (Added Pub. L. 91–172, title IX, § 957(a), Dec. 30, 1969, 83 Stat. 733; amended Pub. L. 92–512, title II, § 203(b)(1), (2), Oct. 20, 1972, 86 Stat. 945; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 95–600, title V, § 502(a)(1), (2)(A), (b), Nov. 6, 1978, 92 Stat. 2879; Pub. L. 96–222, title I, § 105(a)(1)(A), Apr. 1, 1980, 94 Stat. 218; Pub. L. 97–362, title I, § 106(a)(1), Oct. 25, 1982, 96 Stat. 1730; Pub. L. 98–369, div. A, title IV, § 461(a)(1), (2)(A), July 18, 1984, 98 Stat. 823; Pub. L. 101–508, title XI, § 11801(c)(21)(B), Nov. 5, 1990, 104 Stat. 1388–528; Pub. L. 105–206, title III, § 3103(a), July 22, 1998, 112 Stat. 731; Pub. L. 106–554, § 1(a)(7) [title III, § 313(b)(1)], Dec. 21, 2000, 114 Stat. 2763, 2763A–642; Pub. L. 114–113, div. Q, title IV, § 422(a), Dec. 18, 2015, 129 Stat. 3123.) Editorial Notes PRIOR PROVISIONS A prior section 7463 was renumbered section 7465 of this title. AMENDMENTS 2015—Subsec. (f)(3). Pub. L. 114–113 added par. (3). 2000—Subsec. (f). Pub. L. 106–554 added subsec. (f). 1998—Pub. L. 105–206 in section catchline and in sub- sec. (a)(1) to (4) substituted ‘‘$50,000’’ for ‘‘$10,000’’. 1990—Subsec. (f). Pub. L. 101–508 struck out subsec. (f) ‘‘Qualified State individual income taxes’’ which read as follows: ‘‘For purposes of this section, a deficiency placed in dispute or claimed overpayment with regard to a qualified State individual income tax to which subchapter E of chapter 64 applies, for a taxable year, shall be treated as a portion of a deficiency placed in dispute or claimed overpayment of the income tax for that taxable year.’’ 1984—Pub. L. 98–369, § 461(a)(2)(A), substituted ‘‘$10,000’’ for ‘‘$5,000’’ in section catchline. Subsec. (a). Pub. L. 98–369, § 461(a)(1), substituted ‘‘$10,000’’ for ‘‘$5,000’’ in pars. (1) to (4). 1982—Section (a)(4). Pub. L. 97–362 added par. (4). 1980—Subsec. (g). Pub. L. 96–222 struck out subsec. (g) which authorized the chief judge of the Tax Court to assign proceedings conducted under this section to be heard by the Commissioners of the court. 1978—Pub. L. 95–600, § 502(a)(2)(A), substituted ‘‘$5,000’’ for ‘‘$1,500’’ in section catchline. Subsec. (a). Pub. L. 95–600, § 502(a)(1), ‘‘$5,000 for any one taxable year, in the case of the taxes imposed by subtitle A’’ for ‘‘$1,500 for any one taxable year, in the case of the taxes imposed by subtitle A and chapter 12, or’’ in par. (1), ‘‘$5,000, in the case of the tax imposed by chapter 11, or’’ for ‘‘$1,500 in the case of the tax im- posed by chapter 11,’’ in par. (2), and added par. (3). Subsec. (g). Pub. L. 95–600, § 502(b), added subsec. (g). 1976—Subsec, (d). Pub. L. 94–455 struck out ‘‘or his delegate’’ after ‘‘Secretary’’. 1972—Pub. L. 92–512, § 203(b)(2), substituted ‘‘$1,500’’ for ‘‘$1,000’’ in section catchline. Subsec. (a)(1), (2). Pub. L. 92–512, § 203(b)(2), sub- stituted ‘‘$1,500’’ for ‘‘$1,000’’. Page 3926 TITLE 26—INTERNAL REVENUE CODE § 7464 Subsec. (f). Pub. L. 92–512, § 203(b)(1), added subsec. (f). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2015 AMENDMENT Pub. L. 114–113, div. Q, title IV, § 422(b), Dec. 18, 2015, 129 Stat. 3123, provided that: ‘‘The amendments made by this section [amending this section] shall apply to cases pending as of the day after the date of the enact- ment of this Act [Dec. 18, 2015], and cases commenced after such date of enactment.’’ EFFECTIVE DATE OF 1998 AMENDMENT Amendment by Pub. L. 105–206 applicable to pro- ceedings commenced after July 22, 1998, see section 3103(c) of Pub. L. 105–206, set out as a note under section 7436 of this title. EFFECTIVE DATE OF 1984 AMENDMENT Pub. L. 98–369, div. A, title IV, § 461(b), July 18, 1984, 98 Stat. 823, provided that: ‘‘The amendments made by this section [amending this section] shall take effect on the date of the enactment of this Act [July 18, 1984].’’ EFFECTIVE DATE OF 1982 AMENDMENT Pub. L. 97–362, title I, § 106(a)(2), Oct. 25, 1982, 96 Stat. 1730, provided that: ‘‘The amendment made by this sub- section [amending this section] shall apply with re- spect to petitions filed after the date of the enactment of this Act [Oct. 25, 1982].’’ EFFECTIVE DATE OF 1980 AMENDMENT Amendment by Pub. L. 96–222 effective Apr. 1, 1980, see section 105(b)(1) of Pub. L. 96–222, set out as a note under section 7456 of this title. EFFECTIVE DATE OF 1978 AMENDMENT Pub. L. 95–600, title V, § 502(d), Nov. 6, 1978, 92 Stat. 2879, provided that: ‘‘(1) SUBSECTION (a).—The amendments made by sub- section (a) [amending this section] shall take effect on the first day of the first calendar month beginning more than 180 days after the date of the enactment of this Act [Nov. 6, 1978]. ‘‘(2) SUBSECTIONS (b) AND (c).—The amendments made by subsection (b) [amending this section] and (c) [amending section 7456 of this title] shall take effect on the date of the enactment of this Act.’’ EFFECTIVE DATE OF 1972 AMENDMENT Pub. L. 92–512, title II, § 204, Oct. 20, 1972, 86 Stat. 945, as amended by Pub. L. 94–455, title XXI, § 2116(a), Oct. 4, 1976, 90 Stat. 1910; Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that: ‘‘(a) GENERAL RULE.—Except as provided in sub- sections (b) and (c), the provisions of this title (and the amendments made thereby) [enacting this section and sections 6362 and 6363 of this title and amending this section and section 6405 of this title] shall take effect on the date of the enactment of this Act [Oct. 20, 1972]. ‘‘(b) COLLECTION AND ADMINISTRATION OF STATE TAXES BY THE UNITED STATES MAY NOT BEGIN BEFORE JANU- ARY 1, 1974.—Section 6361 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] (as added by section 202(a) of this Act) shall take effect on whichever of the fol- lowing is the later: ‘‘(1) January 1, 1974, or ‘‘(2) the first January 1 which is more than one year after the first date on which at least one State has notified the Secretary of the Treasury or his delegate of an election to enter into an agreement under sec- tion 6363 of such Code. ‘‘(c) JURISDICTION OF TAX COURT IN DISPUTES INVOLV- ING $1,500 OR LESS.—The amendments made by para- graphs (2) and (3) of section 203(b) of this Act [amending this section] shall take effect on January 1, 1974.’’ EFFECTIVE DATE Pub. L. 91–172, title IX, § 962(e), Dec. 30, 1969, 83 Stat. 736, provided that: ‘‘The amendments made by sections 957 [enacting this section] and 960(a), (b), (f), and (i) [amending sections 6214, 6512, 7453, 7456, 7481, 7487, of this title] shall take effect one year after the date of enactment of this Act [Dec. 30, 1969].’’ SAVINGS PROVISION For provisions that nothing in amendment 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. § 7464. Intervention by trustee of debtor’s estate The trustee of the debtor’s estate in any case under title 11 of the United States Code may in- tervene, on behalf of the debtor’s estate, in any proceeding before the Tax Court to which the debtor is a party. (Added Pub. L. 96–589, § 6(c)(1), Dec. 24, 1980, 94 Stat. 3407.) Editorial Notes PRIOR PROVISIONS A prior section 7464 was renumbered section 7465 of this title. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective Oct. 1, 1979, but not applicable to proceedings under Title 11, Bankruptcy, commenced be- fore Oct. 1, 1979, see section 7(e) of Pub. L. 96–589, set out as an Effective Date of 1980 Amendment note under section 108 of this title. § 7465. Provisions of special application to trans- ferees (1) For rules of burden of proof in transferee pro- ceedings, see section 6902(a). (2) For authority of Tax Court to prescribe rules by which a transferee of property of a taxpayer shall be entitled to examine books, records and other evidence, see section 6902(b). (Aug. 16, 1954, ch. 736, 68A Stat. 888, § 7463; re- numbered § 7464, Pub. L. 91–172, title IX, § 957(a), Dec. 30, 1969, 83 Stat. 733; renumbered § 7465, Pub. L. 96–589, § 6(c)(1), Dec. 24, 1980, 94 Stat. 3407.) § 7466. Judicial conduct and disability proce- dures (a) In general The Tax Court shall prescribe rules, consistent with the provisions of chapter 16 of title 28, United States Code, establishing procedures for the filing of complaints with respect to the con- duct of any judge or special trial judge of the Tax Court and for the investigation and resolu- tion of such complaints. In investigating and taking action with respect to any such com- plaint, the Tax Court shall have the powers granted to a judicial council under such chapter. (b) Judicial council The provisions of sections 354(b) through 360 of title 28, United States Code, regarding referral or certification to, and petition for review in the Judicial Conference of the United States, and action thereon, shall apply to the exercise by