26 U.S.C. § 7345 — Revocation or denial of passport in case

Page 3870 TITLE 26—INTERNAL REVENUE CODE § 7327 transactions occurring, property acquired, or items of income, loss, deduction, or credit taken into account prior to Mar. 23, 2018, for purposes of determining li- ability for tax for periods ending after Mar. 23, 2018, see section 401(e) of Pub. L. 115–141, set out as a note under section 23 of this title. § 7327. Customs laws applicable The provisions of law applicable to the remis- sion or mitigation by the Secretary of forfeit- ures under the customs laws shall apply to for- feitures incurred or alleged to have been in- curred under the internal revenue laws. (Aug. 16, 1954, ch. 736, 68A Stat. 871; 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’’. § 7328. Cross references (1) For the issuance of certificates of probable cause relieving officers making seizures of responsi- bility for damages, see 28 U. S. C. 2465. (2) For provisions relating to forfeitures generally in connection with alcohol taxes, see chapter 51. (3) For provisions relating to forfeitures generally in connection with tobacco taxes, see chapter 52. (4) For provisions relating to forfeitures generally in connection with taxes on certain firearms, see chapter 53. (Aug. 16, 1954, ch. 736, 68A Stat. 871, § 7329; re- numbered § 7328, Pub. L. 94–455, title XIX, § 1904(b)(8)(H)(i), Oct. 4, 1976, 90 Stat. 1816.) Editorial Notes PRIOR PROVISIONS A prior section 7328, act Aug. 16, 1954, ch. 736, 68A Stat. 871, provided for confiscation of white phosphorus matches exported or attempted to be exported, prior to repeal by Pub. L. 94–455, § 1904(b)(8)(H)(i). A prior section 7329 was renumbered section 7328 of this title. Subchapter D—Miscellaneous Penalty and Forfeiture Provisions Sec. 7341. Penalty for sales to evade tax. 7342. Penalty for refusal to permit entry or exam- ination. 7343. Definition of term ‘‘person’’. 7344. Extended application of penalties relating to officers of the Treasury Department. 7345. Revocation or denial of passport in case of certain tax delinquencies. Editorial Notes AMENDMENTS 2015—Pub. L. 114–94, div. C, title XXXII, § 32101(h), Dec. 4, 2015, 129 Stat. 1733, added item 7345. § 7341. Penalty for sales to evade tax (a) Nonenforceability of contract Whenever any person who is liable to pay any tax imposed by this title upon, for, or in respect of, any property sells or causes or allows the same to be sold before such tax is paid, with in- tent to avoid such tax, or in fraud of the inter- nal revenue laws, any debt contracted in such sale, and any security given therefor, unless the same shall have been bona fide transferred to an innocent holder, shall be void, and the collection thereof shall not be enforced in any court. (b) Forfeiture of sum paid on contract If such property has been paid for, in whole or in part, the sum so paid shall be deemed for- feited. (c) Moiety Any person who shall sue for the sum so paid (in an action of debt) shall recover from the sell- er the amount so paid, one-half to his own use and the other half to the use of the United States. (Aug. 16, 1954, ch. 736, 68A Stat. 872.) § 7342. Penalty for refusal to permit entry or ex- amination Any owner of any building or place, or person having the agency or superintendence of the same, who refuses to admit any officer or em- ployee of the Treasury Department acting under the authority of section 7606 (relating to entry of premises for examination of taxable articles) or refuses to permit him to examine such article or articles, shall, for every such refusal, forfeit $500. (Aug. 16, 1954, ch. 736, 68A Stat. 872.) § 7343. Definition of term ‘‘person’’ The term ‘‘person’’ as used in this chapter in- cludes an officer or employee of a corporation, or a member or employee of a partnership, who as such officer, employee, or member is under a duty to perform the act in respect of which the violation occurs. (Aug. 16, 1954, ch. 736, 68A Stat. 872.) § 7344. Extended application of penalties relating to officers of the Treasury Department All provisions of law imposing fines, penalties, or other punishment for offenses committed by an internal revenue officer or other officer of the Department of the Treasury, or under any agency or office thereof, shall apply to all per- sons whomsoever, employed, appointed, or act- ing under the authority of any internal revenue law, or any revenue provision of any law of the United States, when such persons are designated or acting as officers or employees in connection with such law, or are persons having the custody or disposition of any public money. (Aug. 16, 1954, ch. 736, 68A Stat. 872.) § 7345. Revocation or denial of passport in case of certain tax delinquencies (a) In general If the Secretary receives certification by the Commissioner of Internal Revenue that an indi- vidual has a seriously delinquent tax debt, the Secretary shall transmit such certification to the Secretary of State for action with respect to denial, revocation, or limitation of a passport pursuant to section 32101 of the FAST Act. Page 3871 TITLE 26—INTERNAL REVENUE CODE § 7345 (b) Seriously delinquent tax debt (1) In general For purposes of this section, the term ‘‘seri- ously delinquent tax debt’’ means an unpaid, legally enforceable Federal tax liability of an individual— (A) which has been assessed, (B) which is greater than $50,000, and (C) with respect to which— (i) a notice of lien has been filed pursu- ant to section 6323 and the administrative rights under section 6320 with respect to such filing have been exhausted or have lapsed, or (ii) a levy is made pursuant to section 6331. (2) Exceptions Such term shall not include— (A) a debt that is being paid in a timely manner pursuant to an agreement to which the individual is party under section 6159 or 7122, and (B) a debt with respect to which collection is suspended with respect to the individual— (i) because a due process hearing under section 6330 is requested or pending, or (ii) because an election under subsection (b) or (c) of section 6015 is made or relief under subsection (f) of such section is re- quested. (c) Reversal of certification (1) In general In the case of an individual with respect to whom the Commissioner makes a certification under subsection (a), the Commissioner shall notify the Secretary (and the Secretary shall subsequently notify the Secretary of State) if such certification is found to be erroneous or if the debt with respect to such certification is fully satisfied or ceases to be a seriously delin- quent tax debt by reason of subsection (b)(2). (2) Timing of notice (A) Full satisfaction of debt In the case of a debt that has been fully satisfied or has become legally unenforce- able, such notification shall be made not later than the date required for issuing the certificate of release of lien with respect to such debt under section 6325(a). (B) Innocent spouse relief In the case of an individual who makes an election under subsection (b) or (c) of section 6015, or requests relief under subsection (f) of such section, such notification shall be made not later than 30 days after any such elec- tion or request. (C) Installment agreement or offer-in-com- promise In the case of an installment agreement under section 6159 or an offer-in-compromise under section 7122, such notification shall be made not later than 30 days after such agree- ment is entered into or such offer is accept- ed by the Secretary. (D) Erroneous certification In the case of a certification found to be erroneous, such notification shall be made as soon as practicable after such finding. (d) Contemporaneous notice to individual The Commissioner shall contemporaneously notify an individual of any certification under subsection (a), or any reversal of certification under subsection (c), with respect to such indi- vidual. Such notice shall include a description in simple and nontechnical terms of the right to bring a civil action under subsection (e). (e) Judicial review of certification (1) In general After the Commissioner notifies an indi- vidual under subsection (d), the taxpayer may bring a civil action against the United States in a district court of the United States, or against the Commissioner in the Tax Court, to determine whether the certification was erro- neous or whether the Commissioner has failed to reverse the certification. For purposes of the preceding sentence, the court first acquir- ing jurisdiction over such an action shall have sole jurisdiction. (2) Determination If the court determines that such certifi- cation was erroneous, then the court may order the Secretary to notify the Secretary of State that such certification was erroneous. (f) Adjustment for inflation In the case of a calendar year beginning after 2016, the dollar amount in subsection (b)(1)(B) shall be increased by an amount equal to— (1) such dollar amount, multiplied by (2) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year, de- termined by substituting ‘‘calendar year 2015’’ for ‘‘calendar year 2016’’ in subparagraph (A)(ii) thereof. If any amount as adjusted under the preceding sentence is not a multiple of $1,000, such amount shall be rounded to the nearest multiple of $1,000. (g) Delegation of certification A certification under subsection (a) or reversal of certification under subsection (c) may only be delegated by the Commissioner of Internal Rev- enue to the Deputy Commissioner for Services and Enforcement, or the Commissioner of an op- erating division, of the Internal Revenue Serv- ice. (Added Pub. L. 114–94, div. C, title XXXII, § 32101(a), Dec. 4, 2015, 129 Stat. 1729; amended Pub. L. 115–97, title I, § 11002(d)(1)(RR), Dec. 22, 2017, 131 Stat. 2061; Pub. L. 115–141, div. U, title I, § 103(a), Mar. 23, 2018, 132 Stat. 1169.) INFLATION ADJUSTED ITEMS FOR CERTAIN YEARS For inflation adjustment of certain items in this section, see Revenue Procedures listed in a table under section 1 of this title. Editorial Notes REFERENCES IN TEXT Section 32101 of the FAST Act, referred to in subsec. (a), is section 32101 of Pub. L. 114–94, which enacted this section and section 2714a of Title 22, Foreign Relations and Intercourse, and amended sections 6103, 6320, 6331, and 7508 of this title. Page 3872 TITLE 26—INTERNAL REVENUE CODE § 7401 1 Section numbers editorially supplied. AMENDMENTS 2018—Subsec. (e)(1). Pub. L. 115–141, § 103(a)(1), sub- stituted ‘‘, or against the Commissioner in the Tax Court,’’ for ‘‘or the Tax Court’’ and inserted at end ‘‘For purposes of the preceding sentence, the court first acquiring jurisdiction over such an action shall have sole jurisdiction.’’ Subsec. (f). Pub. L. 115–141, § 103(a)(2), substituted ‘‘subsection (b)(1)(B)’’ for ‘‘subsection (a)’’ in introduc- tory provisions. 2017—Subsec. (f)(2). Pub. L. 115–97 substituted ‘‘for ‘calendar year 2016’ in subparagraph (A)(ii)’’ for ‘‘for ‘calendar year 1992’ in subparagraph (B)’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2018 AMENDMENT Pub. L. 115–141, div. U, title I, § 103(b), Mar. 23, 2018, 132 Stat. 1170, provided that: ‘‘The amendments made by this section [amending this section] shall take effect as if included in section 32101 of the Fixing America’s Surface Transportation Act [Pub. L. 114–94].’’ EFFECTIVE DATE OF 2017 AMENDMENT Amendment by Pub. L. 115–97 applicable to taxable years beginning after Dec. 31, 2017, see section 11002(e) of Pub. L. 115–97, set out as a note under section 1 of this title. CHAPTER 76—JUDICIAL PROCEEDINGS Subchapter Sec.1 A. Civil actions by the United States ........ 7401 B. Proceedings by Taxpayers and Third Parties ............................................... 7421 C. The Tax Court ....................................... 7441 D. Court review of Tax Court decisions ..... 7481 E. Burden of proof ...................................... 7491 Editorial Notes AMENDMENTS 1998—Pub. L. 105–206, title III, § 3001(b), July 22, 1998, 112 Stat. 727, added item for subchapter E. 1976—Pub. L. 94–455, title XIX, § 1952(n)(4)(B), Oct. 4, 1976, 90 Stat. 1846, struck out item for subchapter E ‘‘Miscellaneous provisions’’. 1966—Pub. L. 89–719, title I, § 110(d)(3), Nov. 2, 1966, 80 Stat. 1145, substituted ‘‘Taxpayers and Third Parties’’ for ‘‘taxpayers’’ in item for subchapter B. Subchapter A—Civil Actions by the United States Sec. 7401. Authorization. 7402. Jurisdiction of district courts. 7403. Action to enforce lien or to subject property to payment of tax. 7404. Authority to bring civil action for estate taxes. 7405. Action for recovery of erroneous refunds. 7406. Disposition of judgments and moneys recov- ered. 7407. Action to enjoin tax return preparers. 7408. Actions to enjoin specified conduct related to tax shelters and reportable transactions. 7409. Action to enjoin flagrant political expendi- tures of section 501(c)(3) organizations. 7410. Cross references. Editorial Notes AMENDMENTS 2007—Pub. L. 110–28, title VIII, § 8246(a)(2)(I)(ii), May 25, 2007, 121 Stat. 202, substituted ‘‘tax return pre- parers’’ for ‘‘income tax return preparers’’ in item 7407. 2004—Pub. L. 108–357, title VIII, § 820(b)(2), Oct. 22, 2004, 118 Stat. 1585, added item 7408 and struck out former item 7408 ‘‘Action to enjoin promoters of abu- sive tax shelters, etc.’’ 1987—Pub. L. 100–203, title X, § 10713(a)(2), Dec. 22, 1987, 101 Stat. 1330–469, added item 7409 and redesignated former item 7409 as 7410. 1982—Pub. L. 97–248, title III, § 321(b), Sept. 3, 1982, 96 Stat. 612, added item 7408 and redesignated former item 7408 as 7409. 1976—Pub. L. 94–455, title XII, § 1203(i)(4), Oct. 4, 1976, 90 Stat. 1695, added item 7407 and redesignated former item 7407 as 7408. § 7401. Authorization No civil action for the collection or recovery of taxes, or of any fine, penalty, or forfeiture, shall be commenced unless the Secretary au- thorizes or sanctions the proceedings and the Attorney General or his delegate directs that the action be commenced. (Aug. 16, 1954, ch. 736, 68A Stat. 873; 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’’. § 7402. Jurisdiction of district courts (a) To issue orders, processes, and judgments The district courts of the United States at the instance of the United States shall have such ju- risdiction to make and issue in civil actions, writs and orders of injunction, and of ne exeat republica, orders appointing receivers, and such other orders and processes, and to render such judgments and decrees as may be necessary or appropriate for the enforcement of the internal revenue laws. The remedies hereby provided are in addition to and not exclusive of any and all other remedies of the United States in such courts or otherwise to enforce such laws. (b) To enforce summons If any person is summoned under the internal revenue laws to appear, to testify, or to produce books, papers, or other data, the district court of the United States for the district in which such person resides or may be found shall have jurisdiction by appropriate process to compel such attendance, testimony, or production of books, papers, or other data. (c) For damages to United States officers or em- ployees Any officer or employee of the United States acting under authority of this title, or any per- son acting under or by authority of any such of- ficer or employee, receiving any injury to his person or property in the discharge of his duty shall be entitled to maintain an action for dam- ages therefor, in the district court of the United States, in the district wherein the party doing the injury may reside or shall be found. [(d) Repealed. Pub. L. 92–310, title II, § 230(d), June 6, 1972, 86 Stat. 209] (e) To quiet title The United States district courts shall have jurisdiction of any action brought by the United