26 U.S.C. § 6871 — Claims for income, estate, gift, and certain

Page 3840 TITLE 26—INTERNAL REVENUE CODE § 6871 then, for purposes of sections 6851 and 6861, it shall be presumed that such cash represents gross income of a single individual for the tax- able year in which the possession occurs, and that the collection of tax will be jeopardized by delay. (b) Rules for assessing In the case of any assessment resulting from the application of subsection (a)— (1) the entire amount of the cash shall be treated as taxable income for the taxable year in which the possession occurs, (2) such income shall be treated as taxable at the highest rate of tax specified in section 1, and (3) except as provided in subsection (c), the possessor of the cash shall be treated (solely with respect to such cash) as the taxpayer for purposes of chapters 63 and 64 and section 7429(a)(1). (c) Effect of later substitution of true owner If, after an assessment resulting from the ap- plication of subsection (a), such assessment is abated and replaced by an assessment against the owner of the cash, such later assessment shall be treated for purposes of all laws relating to lien, levy and collection as relating back to the date of the original assessment. (d) Definitions For purposes of this section— (1) Cash The term ‘‘cash’’ includes any cash equiva- lent. (2) Cash equivalent The term ‘‘cash equivalent’’ means— (A) foreign currency, (B) any bearer obligation, and (C) any medium of exchange which— (i) is of a type which has been frequently used in illegal activities, and (ii) is specified as a cash equivalent for purposes of this part in regulations pre- scribed by the Secretary. (3) Value of cash equivalent Any cash equivalent shall be taken into ac- count— (A) in the case of a bearer obligation, at its face amount, and (B) in the case of any other cash equiva- lent, at its fair market value. (Added Pub. L. 97–248, title III, § 330(a), Sept. 3, 1982, 96 Stat. 619; amended Pub. L. 100–647, title I, § 1001(a)(1), Nov. 10, 1988, 102 Stat. 3349.) Editorial Notes AMENDMENTS 1988—Subsec. (b)(2). Pub. L. 100–647 substituted ‘‘the highest rate of tax specified in section 1’’ for ‘‘a 50-per- cent rate’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1988 AMENDMENT Amendment by Pub. L. 100–647 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99–514, to which such amendment relates, see section 1019(a) of Pub. L. 100–647, set out as a note under section 1 of this title. EFFECTIVE DATE Pub. L. 97–248, title III, § 330(c), Sept. 3, 1982, 96 Stat. 620, provided that: ‘‘The amendments made by sub- sections (a) and (b) [enacting this section] shall take ef- fect on the day after the date of the enactment of this Act [Sept. 3, 1982].’’ Subchapter B—Receiverships, Etc. Sec. 6871. Claims for income, estate, gift, and certain excise taxes in receivership proceedings, etc. 6872. Suspension of period on assessment. 6873. Unpaid claims. Editorial Notes AMENDMENTS 1980—Pub. L. 96–589, § 6(g)(3)(A), (B), Dec. 24, 1980, 94 Stat. 3410, substituted ‘‘Receiverships, Etc.’’ for ‘‘Bank- ruptcy and Receiverships’’ in subchapter heading, and ‘‘gift, and certain excise taxes in receivership pro- ceedings, etc.’’ for ‘‘and gift taxes in bankruptcy and receivership proceedings’’ in item 6871. § 6871. Claims for income, estate, gift, and certain excise taxes in receivership proceedings, etc. (a) Immediate assessment in receivership pro- ceedings On the appointment of a receiver for the tax- payer in any receivership proceeding before any court of the United States or of any State or of the District of Columbia, any deficiency (to- gether with all interest, additional amounts, and additions to the tax provided by law) deter- mined by the Secretary in respect of a tax im- posed by subtitle A or B or by chapter 41, 42, 43, or 44 on such taxpayer may, despite the restric- tions imposed by section 6213(a) on assessments, be immediately assessed if such deficiency has not theretofore been assessed in accordance with law. (b) Immediate assessment with respect to certain title 11 cases Any deficiency (together with all interest, ad- ditional amounts, and additions to the tax pro- vided by law) determined by the Secretary in re- spect of a tax imposed by subtitle A or B or by chapter 41, 42, 43, or 44 on— (1) the debtor’s estate in a case under title 11 of the United States Code, or (2) the debtor, but only if liability for such tax has become res judicata pursuant to a de- termination in a case under title 11 of the United States Code, may, despite the restrictions imposed by section 6213(a) on assessments, be immediately assessed if such deficiency has not theretofore been as- sessed in accordance with law. (c) Claim filed despite pendency of tax court pro- ceedings In the case of a tax imposed by subtitle A or B or by chapter 41, 42, 43, or 44— (1) claims for the deficiency and for interest, additional amounts, and additions to the tax may be presented, for adjudication in accord- ance with law, to the court before which the Page 3841 TITLE 26—INTERNAL REVENUE CODE § 6873 receivership proceeding (or the case under title 11 of the United States Code) is pending, despite the pendency of proceedings for the re- determination of the deficiency pursuant to a petition to the Tax Court; but (2) in the case of a receivership proceeding, no petition for any such redetermination shall be filed with the Tax Court after the appoint- ment of the receiver. (Aug. 16, 1954, ch. 736, 68A Stat. 838; Pub. L. 85–866, title I, § 88, Sept. 2, 1958, 72 Stat. 1665; Pub. L. 94–455, title XIX, §§ 1906(b)(13)(A), (c)(1), Oct. 4, 1976, 90 Stat. 1834, 1835; Pub. L. 96–589, § 6(g)(1), Dec. 24, 1980, 94 Stat. 3409; Pub. L. 101–239, title VII, § 7841(d)(2), Dec. 19, 1989, 103 Stat. 2428.) Editorial Notes AMENDMENTS 1989—Pub. L. 101–239 substituted ‘‘or 44’’ for ‘‘44, or 45’’ in subsecs. (a), (b), and (c). 1980—Subsec. (a). Pub. L. 96–589 amended subsec. (a) generally, substituting reference to appointment of a receiver for the taxpayer in any receivership pro- ceedings, for reference to adjudication of bankruptcy of a taxpayer in a liquidating proceeding, the filing or the approval of a petition of or the approval of a petition against any taxpayer in any other bankruptcy pro- ceeding, or the appointment of a receiver for any tax- payer in any receivership proceeding, and inserted ref- erence to chapters 41, 42, 43, 44, and 45. Subsecs. (b), (c). Pub. L. 96–589 added subsec. (b), re- designated former subsec. (b) as (c), inserted reference to chapters 41, 42, 43, 44, and 45, and struck out ref- erence to bankruptcy proceedings. 1976—Subsec. (a). Pub. L. 94–455, § 1906(b)(13)(A), struck out ‘‘or his delegate’’ after ‘‘Secretary’’. Pub. L. 94–455, § 1906(c)(1), struck out ‘‘or Territory’’ after ‘‘any State’’. 1958—Subsec. (a). Pub. L. 85–866, § 88(a), substituted ‘‘the filing or (where approval is required by the Bank- ruptcy Act) the approval of a petition of, or the ap- proval of a petition against, any taxpayer’’ for ‘‘the ap- proval of a petition of, or against, any taxpayer’’. Subsec. (b). Pub. L. 85–866, § 88(b), substituted ‘‘the fil- ing or (where approval is required by the Bankruptcy Act) the approval of a petition of, or the approval of a petition against, any taxpayer’’ for ‘‘approval of the pe- tition’’. 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. EFFECTIVE DATE OF 1976 AMENDMENT Amendment by Pub. L. 94–455 effective on first day of first month which begins more than ninety days after Oct. 4, 1976, see section 1906(d)(1) of Pub. L. 94–455, set out as a note under section 6013 of this title. EFFECTIVE DATE OF 1958 AMENDMENT Amendment by Pub. L. 85–866 effective Aug. 17, 1954, see section 1(c)(2) of Pub. L. 85–866, set out as a note under section 165 of this title. § 6872. Suspension of period on assessment If the regulations issued pursuant to section 6036 require the giving of notice by any fiduciary in any case under title 11 of the United States Code, or by a receiver in any other court pro- ceeding, to the Secretary of his qualification as such, the running of the period of limitations on the making of assessments shall be suspended for the period from the date of the institution of the proceeding to a date 30 days after the date upon which the notice from the receiver or other fiduciary is received by the Secretary; but the suspension under this sentence shall in no case be for a period in excess of 2 years. (Aug. 16, 1954, ch. 736, 68A Stat. 838; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 96–589, § 6 (i)(12), Dec. 24, 1980, 94 Stat. 3411.) Editorial Notes AMENDMENTS 1980—Pub. L. 96–589 substituted ‘‘any case under title 11 of the United States Code’’ for ‘‘any proceeding under the Bankruptcy Act’’. 1976—Pub. L. 94–455 struck out ‘‘or his delegate’’ after ‘‘Secretary’’ wherever appearing. 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. § 6873. Unpaid claims (a) General rule Any portion of a claim for taxes allowed in a receivership proceeding which is unpaid shall be paid by the taxpayer upon notice and demand from the Secretary after the termination of such proceeding. (b) Cross references (1) For suspension of running of period of limita- tions on collection, see section 6503(b). (2) For extension of time for payment, see section 6161(c). (Aug. 16, 1954, ch. 736, 68A Stat. 838; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 96–589, § 6(g)(2), Dec. 24, 1980, 94 Stat. 3409.) Editorial Notes AMENDMENTS 1980—Subsec. (a). Pub. L. 96–589 struck out reference to proceedings under the Bankruptcy Act. 1976—Subsec. (a). 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. CHAPTER 71—TRANSFEREES AND FIDUCIARIES Sec. 6901. Transferred assets.