-CITE- 26 USC CHAPTER 64 - COLLECTION 01/02/2006 -EXPCITE- TITLE 26 - INTERNAL REVENUE CODE Subtitle F - Procedure and Administration CHAPTER 64 - COLLECTION -HEAD- CHAPTER 64 - COLLECTION -MISC1- Subchapter Sec.(!1) A. General provisions 6301 B. Receipt of payment 6311 C. Lien for taxes 6321 D. Seizure of property for collection of taxes 6331 [E. Repealed.] AMENDMENTS 1990 - Pub. L. 101-508, title XI, Sec. 11801(b)(14), Nov. 5, 1990, 104 Stat. 1388-522, struck out item for subchapter E "Collection of State individual income taxes". 1972 - Pub. L. 92-512, title II, Sec. 202(b), Oct. 20, 1972, 86 Stat. 944, added item for subchapter E. -FOOTNOTE- (!1) Section numbers editorially supplied. -End- -CITE- 26 USC Subchapter A - General Provisions 01/02/2006 -EXPCITE- TITLE 26 - INTERNAL REVENUE CODE Subtitle F - Procedure and Administration CHAPTER 64 - COLLECTION Subchapter A - General Provisions -HEAD- SUBCHAPTER A - GENERAL PROVISIONS -MISC1- Sec. 6301. Collection authority 6302. Mode or time of collection. 6303. Notice and demand for tax. 6304. Fair tax collection practices. 6305. Collection of certain liability. 6306. Qualified tax collection contracts. AMENDMENTS 2004 - Pub. L. 108-357, title VIII, Sec. 881(a)(2)(B), Oct. 22, 2004, 118 Stat. 1626, added item 6306. 1998 - Pub. L. 105-206, title III, Sec. 3466(b), July 22, 1998, 112 Stat. 769, added item 6304. 1976 - Pub. L. 94-455, title XIX, Sec. 1906(b)(5), Oct. 4, 1976, 90 Stat. 1833, struck out item "6304. Collection under the Tariff Act". 1975 - Pub. L. 93-647, Sec. 101(b)(2), Jan. 4, 1975, 88 Stat. 2358, added item 6305. -End- -CITE- 26 USC Sec. 6301 01/02/2006 -EXPCITE- TITLE 26 - INTERNAL REVENUE CODE Subtitle F - Procedure and Administration CHAPTER 64 - COLLECTION Subchapter A - General Provisions -HEAD- Sec. 6301. Collection authority -STATUTE- The Secretary shall collect the taxes imposed by the internal revenue laws. -SOURCE- (Aug. 16, 1954, ch. 736, 68A Stat. 775; Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.) -MISC1- AMENDMENTS 1976 - Pub. L. 94-455 struck out "or his delegate" after "Secretary". APPROVAL PROCESS FOR LIENS, LEVIES, AND SEIZURES Pub. L. 105-206, title III, Sec. 3421, July 22, 1998, 112 Stat. 758, provided that: "(a) In General. - The Commissioner of Internal Revenue shall develop and implement procedures under which - "(1) a determination by an employee to file a notice of lien or levy with respect to, or to levy or seize, any property or right to property would, where appropriate, be required to be reviewed by a supervisor of the employee before the action was taken; and "(2) appropriate disciplinary action would be taken against the employee or supervisor where the procedures under paragraph (1) were not followed. "(b) Review Process. - The review process under subsection (a)(1) may include a certification that the employee has - "(1) reviewed the taxpayer's information; "(2) verified that a balance is due; and "(3) affirmed that the action proposed to be taken is appropriate given the taxpayer's circumstances, considering the amount due and the value of the property or right to property. "(c) Effective Dates. - "(1) In general. - Except as provided in paragraph (2), this section shall take effect on the date of the enactment of this Act [July 22, 1998]. "(2) Automated collection system actions. - In the case of any action under an automated collection system, this section shall apply to actions initiated after December 31, 2000." -End- -CITE- 26 USC Sec. 6302 01/02/2006 -EXPCITE- TITLE 26 - INTERNAL REVENUE CODE Subtitle F - Procedure and Administration CHAPTER 64 - COLLECTION Subchapter A - General Provisions -HEAD- Sec. 6302. Mode or time of collection -STATUTE- (a) Establishment by regulations If the mode or time for collecting any tax is not provided for by this title, the Secretary may establish the same by regulations. (b) Discretionary method Whether or not the method of collecting any tax imposed by chapter 21, 31, 32, or 33, or by section 4481 is specifically provided for by this title, any such tax may, under regulations prescribed by the Secretary, be collected by means of returns, stamps, coupons, tickets, books, or such other reasonable devices or methods as may be necessary or helpful in securing a complete and proper collection of the tax. (c) Use of Government depositaries The Secretary may authorize Federal Reserve banks, and incorporated banks, trust companies, domestic building and loan associations, or credit unions which are depositaries or financial agents of the United States, to receive any tax imposed under the internal revenue laws, in such manner, at such times, and under such conditions as he may prescribe; and he shall prescribe the manner, times, and conditions under which the receipt of such tax by such banks, trust companies, domestic building and loan associations, and credit unions is to be treated as payment of such tax to the Secretary. (d) Time for payment of manufacturers' excise tax on sporting goods The taxes imposed by subsections (a) and (b) of section 4161 (relating to taxes on sporting goods) shall be due and payable on the date for filing the return for such taxes. (e) Time for deposit of taxes on communications services and airline tickets (1) In general Except as provided in paragraph (2), if, under regulations prescribed by the Secretary, a person is required to make deposits of any tax imposed by section 4251 or subsection (a) or (b) of section 4261 with respect to amounts considered collected by such person during any semimonthly period, such deposit shall be made not later than the 3rd day (not including Saturdays, Sundays, or legal holidays) after the close of the 1st week of the 2nd semimonthly period following the period to which such amounts relate. (2) Special rule for tax due in September (A) Amounts considered collected In the case of a person required to make deposits of the tax imposed by - (i) section 4251, or (ii) effective on January 1, 1997, section 4261 or 4271, with respect to amounts considered collected by such person during any semimonthly period, the amount of such tax included in bills rendered or tickets sold during the period beginning on September 1 and ending on September 11 shall be deposited not later than September 29. (B) Special rule where September 29 is on Saturday or Sunday If September 29 falls on a Saturday or Sunday, the due date under subparagraph (A) shall be - (i) in the case of Saturday, the preceding day, and (ii) in the case of Sunday, the following day. (C) Taxpayers not required to use electronic funds transfer In the case of deposits not required to be made by electronic funds transfer, subparagraphs (A) and (B) shall be applied by substituting "September 10" for "September 11" and "September 28" for "September 29". (f) Time for deposit of certain excise taxes (1) General rule Except as otherwise provided in this subsection and subsection (e), if any person is required under regulations to make deposits of taxes under subtitle D with respect to semimonthly periods, such person shall make deposits of such taxes for the period beginning on September 16 and ending on September 26 not later than September 29. In the case of taxes imposed by sections 4261 and 4271, this paragraph shall not apply to periods before January 1, 1997. (2) Taxes on ozone depleting chemicals If any person is required under regulations to make deposits of taxes under subchapter D of chapter 38 with respect to semimonthly periods, in lieu of paragraph (1), such person shall make deposits of such taxes for - (A) the second semimonthly period in August, and (B) the period beginning on September 1 and ending on September 11, not later than September 29. (3) Taxpayers not required to use electronic funds transfer In the case of deposits not required to be made by electronic funds transfer, paragraphs (1) and (2) shall be applied by substituting "September 25" for "September 26", "September 10" for "September 11", and "September 28" for "September 29". (4) Special rule where due date on Saturday or Sunday If, but for this paragraph, the due date under paragraph (1), (2), or (3) would fall on a Saturday or Sunday, such due date shall be deemed to be - (A) in the case of Saturday, the preceding day, and (B) in the case of Sunday, the following day. (g) Deposits of social security taxes and withheld income taxes If, under regulations prescribed by the Secretary, a person is required to make deposits of taxes imposed by chapters 21, 22, and 24 on the basis of eighth-month periods, such person shall make deposits of such taxes on the 1st banking day after any day on which such person has $100,000 or more of such taxes for deposit. (h) Use of electronic fund transfer system for collection of certain taxes (1) Establishment of system (A) In general The Secretary shall prescribe such regulations as may be necessary for the development and implementation of an electronic fund transfer system which is required to be used for the collection of depository taxes. Such system shall be designed in such manner as may be necessary to ensure that such taxes are credited to the general account of the Treasury on the date on which such taxes would otherwise have been required to be deposited under the Federal tax deposit system. (B) Exemptions The regulations prescribed under subparagraph (A) may contain such exemptions as the Secretary may deem appropriate. (2) Phase-in requirements (A) In general Except as provided in subparagraph (B), the regulations referred to in paragraph (1) - (i) shall contain appropriate procedures to assure that an orderly conversion from the Federal tax deposit system to the electronic fund transfer system is accomplished, and (ii) may provide for a phase-in of such electronic fund transfer system by classes of taxpayers based on the aggregate undeposited taxes of such taxpayers at the close of specified periods and any other factors the Secretary may deem appropriate. (B) Phase-in requirements The phase-in of the electronic fund transfer system shall be designed in such manner as may be necessary to ensure that - (i) during each fiscal year beginning after September 30, 1993, at least the applicable required percentage of the total depository taxes imposed by chapters 21, 22, and 24 shall be collected by means of electronic fund transfer, and (ii) during each fiscal year beginning after September 30, 1993, at least the applicable required percentage of the total other depository taxes shall be collected by means of electronic fund transfer. (C) Applicable required percentage (i) In the case of the depository taxes imposed by chapters 21, 22, and 24, the applicable required percentage is - (I) 3 percent for fiscal year 1994, (II) 16.9 percent for fiscal year 1995, (III) 20.1 percent for fiscal year 1996, (IV) 58.3 percent for fiscal years 1997 and 1998, and (V) 94 percent for fiscal year 1999 and all fiscal years thereafter. (ii) In the case of other depository taxes, the applicable required percentage is - (I) 3 percent for fiscal year 1994, (II) 20 percent for fiscal year 1995, (III) 30 percent for fiscal year 1996, (IV) 60 percent for fiscal years 1997 and 1998, and (V) 94 percent for fiscal year 1999 and all fiscal years thereafter. (3) Definitions For purposes of this subsection - (A) Depository tax The term "depository tax" means any tax if the Secretary is authorized to require deposits of such tax. (B) Electronic fund transfer The term "electronic fund transfer" means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, which is initiated through an electronic terminal, telephonic instrument, or computer or magnetic tape so as to order, instruct, or authorize a financial institution or other financial intermediary to debit or credit an account. (4) Coordination with other electronic fund transfer requirements (A) Coordination with certain excise taxes In determining whether the requirements of subparagraph (B) of paragraph (2) are met, taxes required to be paid by electronic fund transfer under sections 5061(e) and 5703(b) shall be disregarded. (B) Additional requirement Under regulations, any tax required to be paid by electronic fund transfer under section 5061(e) or 5703(b) shall be paid in such a manner as to ensure that the requirements of the second sentence of paragraph (1)(A) of this subsection are satisfied. (i) Cross references For treatment of earned income advance amounts as payment of withholding and FICA taxes, see section 3507(d). -SOURCE- (Aug. 16, 1954, ch. 736, 68A Stat. 775; June 29, 1956, ch. 462, title II, Sec. 206(b), 70 Stat. 391; Pub. L. 94-455, title XIX, Sec. 1906(a)(17), (b)(13)(A), Oct. 4, 1976, 90 Stat. 1825, 1834; Pub. L. 95-147, Sec. 3(a), Oct. 28, 1977, 91 Stat. 1228; Pub. L. 95- 600, title I, Sec. 105(e), Nov. 6, 1978, 92 Stat. 2776; Pub. L. 96- 223, title I, Sec. 101(c)(2), Apr. 2, 1980, 94 Stat. 250; Pub. L. 98-369, div. A, title X, Sec. 1015(c), July 18, 1984, 98 Stat. 1018; Pub. L. 100-418, title I, Sec. 1941(b)(2)(G), Aug. 23, 1988, 102 Stat. 1323; Pub. L. 100-647, title VI, Sec. 6107(a), Nov. 10, 1988, 102 Stat. 3712; Pub. L. 101-239, title VII, Secs. 7502(a), 7507(a), 7632(a), Dec. 19, 1989, 103 Stat. 2362, 2369, 2379; Pub. L. 101-508, title XI, Secs. 11217(b)(1), 11334(a), 11801(c)(22)(A), Nov. 5, 1990, 104 Stat. 1388-437, 1388-470, 1388-528; Pub. L. 103- 66, title XIII, Sec. 13242(d)(15), Aug. 10, 1993, 107 Stat. 524; Pub. L. 103-182, title V, Sec. 523(a), Dec. 8, 1993, 107 Stat. 2161; Pub. L. 103-465, title VII, Sec. 712(a), (d), Dec. 8, 1994, 108 Stat. 4999, 5001; Pub. L. 104-188, title I, Secs. 1702(c)(3), 1704(t)(52), Aug. 20, 1996, 110 Stat. 1869, 1890.) -MISC1- AMENDMENTS 1996 - Subsec. (b). Pub. L. 104-188, Sec. 1704(t)(52), provided that section 11801(c)(22)(A) of Pub. L. 101-508 shall be applied as if "chapters 21" appeared instead of "chapter 21" in the material to be stricken. See 1990 Amendment note below. Subsec. (g). Pub. L. 104-188, Sec. 1702(c)(3), inserted ", 22," after "chapters 21". 1994 - Subsec. (e). Pub. L. 103-465, Sec. 712(d), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: "If, under regulations prescribed by the Secretary, a person is required to make deposits of any tax imposed by section 4251 or subsection (a) or (b) of section 4261 with respect to amounts considered collected by such person during any semimonthly period, such deposit shall be made not later than the 3rd day (not including Saturdays, Sundays, or legal holidays) after the close of the 1st week of the 2nd semimonthly period following the period to which such amounts relate." Subsec. (f). Pub. L. 103-465, Sec. 712(a), substituted "certain excise taxes" for "taxes on gasoline and diesel fuel" in heading and amended text generally. Prior to amendment, text read as follows: "(1) General rule. - Notwithstanding section 518 of the Highway Revenue Act of 1982, any person whose liability for tax under section 4081 is payable with respect to semimonthly periods shall, not later than September 27, make deposits of such tax for the period beginning on September 16 and ending on September 22. "(2) Special rule where due date falls on saturday, sunday, or holiday. - If, but for this paragraph, the due date under paragraph (1) would fall on a Saturday, Sunday, or holiday in the District of Columbia, such due date shall be deemed to be the immediately preceding day which is not a Saturday, Sunday, or such a holiday." 1993 - Subsec. (f). Pub. L. 103-66 inserted "and diesel fuel" after "gasoline" in heading. Subsecs. (h), (i). Pub. L. 103-182 added subsec. (h) and redesignated former subsec. (h) as (i). 1990 - Subsec. (b). Pub. L. 101-508, Sec. 11801(c)(22)(A), which directed the substitution of "chapter 21, 31, 32, or 33, or by section 4481" for "chapter 21" and all that follows down through "chapter 37,", was executed by making the substitution for "chapters 21, 31, 32, 33, section 4481 of chapter 36, section 4501(a) of chapter 37" to reflect the probable intent of Congress. See 1996 Amendment note above. Subsec. (e). Pub. L. 101-508, Sec. 11217(b)(1), inserted "communications services and" before "airline" in heading and "section 4251 or" after "imposed by" in text. Subsec. (g). Pub. L. 101-508, Sec. 11334(a), amended subsec. (g) generally, striking out par. (1) designation and striking heading, striking out ", for the years specified in paragraph (2)," after "such person shall", substituting "on the 1st banking day" for "on the applicable banking day", and striking out par. (2), which provided that for purposes of par. (1) the applicable banking day for 1990 is the 1st, for 1991 the 2nd, for 1992 the 3rd, for 1993 the 1st, and for 1994 the 1st. 1989 - Subsec. (e). Pub. L. 101-239, Sec. 7502(a), added subsec. (e). Former subsec. (e) redesignated (f). Subsec. (f). Pub. L. 101-239, Sec. 7507(a), added subsec. (f). Former subsec. (f) redesignated (g). Pub. L. 101-239, Sec. 7502(a), redesignated former subsec. (e) as (f). Subsec. (g). Pub. L. 101-239, Sec. 7632(a), added subsec. (g). Former subsec. (g) redesignated (h). Pub. L. 101-239, Sec. 7507(a), redesignated former subsec. (f) as (g). Subsec. (h). Pub. L. 101-239, Sec. 7632(a), redesignated former subsec. (g) as (h). 1988 - Subsec. (d). Pub. L. 100-647 substituted "Time for payment of manufacturers' excise tax on sporting goods" for "Time for payment of manufacturers excise tax on sport fishing equipment" in heading and amended text generally. Prior to amendment, subsec. (d) read as follows: "The tax imposed by section 4161(a) (relating to manufacturers excise tax on sport fishing equipment) shall be due and payable on the date for filing the return for such tax." Subsec. (e). Pub. L. 100-418 substituted "For" for "(1) For" and struck out par. (2) which read as follows: "For depositary requirements applicable to the windfall profit tax imposed by section 4986, see section 4995(b)." 1984 - Subsecs. (d), (e). Pub. L. 98-369 added subsec. (d) and redesignated former subsec. (d) as (e). 1980 - Subsec. (d). Pub. L. 96-223 designated existing cross reference as par. (1), substituted "For treatment of earned income advance amounts" for "For treatment of payment of earned income advance amounts", and added par. (2). 1978 - Subsec. (d). Pub. L. 95-600 added subsec. (d). 1977 - Subsec. (c). Pub. L. 95-147 substituted ", trust companies, domestic building and loan associations, or credit unions" for "or trust companies" and ", trust companies, domestic building and loan associations, and credit unions" for "and trust companies". 1976 - Subsec. (a). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck out "or his delegate" after "Secretary". Subsec. (b). Pub. L. 94-455, Sec. 1906(a)(17), (b)(13)(A), substituted "section 4501(a) of chapter 37" for "sections 4501(a) or 4511 of chapter 37, or section 4701 or 4721 of chapter 39" and struck out "or his delegate" after "Secretary". Subsec. (c). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck out "or his delegate" after "Secretary" wherever appearing. 1956 - Subsec. (b). Act June 29, 1956, inserted reference to section 4481 of chapter 36. EFFECTIVE DATE OF 1996 AMENDMENT Amendment by section 1702(c)(3) of Pub. L. 104-188 effective, except as otherwise expressly provided, as if included in the provision of the Revenue Reconciliation Act of 1990, Pub. L. 101- 508, title XI, to which such amendment relates, see section 1702(i) of Pub. L. 104-188, set out as a note under section 38 of this title. EFFECTIVE DATE OF 1994 AMENDMENT Amendment by Pub. L. 103-465 effective Jan. 1, 1995, see section 712(e) of Pub. L. 103-465, set out as a note under section 5061 of this title. EFFECTIVE DATE OF 1993 AMENDMENTS Section 523(b)(1) of Pub. L. 103-182 provided that: "The amendments made by this section [amending this section] shall take effect on the date the Agreement [North American Free Trade Agreement] enters into force with respect to the United States [Jan. 1, 1994]." Amendment by Pub. L. 103-66 effective Jan. 1, 1994, see section 13242(e) of Pub. L. 103-66, set out as a note under section 4041 of this title. EFFECTIVE DATE OF 1990 AMENDMENT Section 11217(b)(2) of Pub. L. 101-508 provided that: "The amendment made by paragraph (1) [amending this section] shall apply to payments of taxes considered collected during semimonthly periods beginning after December 31, 1990." Section 11334(c) of Pub. L. 101-508 provided that: "The amendments made by this section [amending this section and provisions set out below] shall apply to amounts required to be deposited after December 31, 1990." EFFECTIVE DATE OF 1989 AMENDMENT Section 7502(b) of Pub. L. 101-239 provided that: "The amendment made by subsection (a) [amending this section] shall apply to payments of taxes considered collected for semimonthly periods beginning after June 30, 1990." Section 7507(b) of Pub. L. 101-239 provided that: "The amendment made by subsection (a) [amending this section] shall apply to payments of taxes for tax periods beginning after December 31, 1989." Section 7632(b) of Pub. L. 101-239, as amended by Pub. L. 101- 508, title XI, Sec. 11334(b), Nov. 5, 1990, 104 Stat. 1388-470, provided that: "(1) General rule. - Except as provided in paragraph (2), the amendment made by subsection (a) [amending this section] shall apply to amounts required to be deposited after July 31, 1990. "[(2) Repealed. Pub. L. 101-508, title XI, Sec. 11334(b), Nov. 5, 1990, 104 Stat. 1388-470.]" EFFECTIVE DATE OF 1988 AMENDMENTS Section 6107(b) of Pub. L. 100-647 provided that: "The amendment made by subsection (a) [amending this section] shall apply with respect to articles sold by the manufacturer, producer, or importer after December 31, 1988." Amendment by Pub. L. 100-418 applicable to crude oil removed from the premises on or after Aug. 23, 1988, see section 1941(c) of Pub. L. 100-418, set out as a note under section 164 of this title. EFFECTIVE DATE OF 1984 AMENDMENT Amendment by Pub. L. 98-369 applicable with respect to articles sold by manufacturer, producer, or importer after Sept. 30, 1984, see section 1015(e) of Pub. L. 98-369, set out as an Effective Date note under section 4162 of this title. EFFECTIVE DATE OF 1980 AMENDMENT Amendment by Pub. L. 96-223 applicable to periods after Feb. 29, 1980, see section 101(i) of Pub. L. 96-223, set out as a note under section 6161 of this title. EFFECTIVE DATE OF 1978 AMENDMENT Amendment by Pub. L. 95-600 effective with respect to remuneration paid after June 30, 1979, see section 105(g)(2) of Pub. L. 95-600, set out as an Effective Date note under section 3507 of this title. EFFECTIVE DATE OF 1977 AMENDMENT Section 3(c) of Pub. L. 95-147 provided that: "The amendments made by this section [amending this section and section 7502 of this title] shall apply to amounts deposited after the date of the enactment of this Act [Oct. 28, 1977]." REGULATIONS Section 523(b)(2) of Pub. L. 103-182 provided that: "Not later than 210 days after the date of enactment of this Act [Dec. 8, 1993], the Secretary of the Treasury or his delegate shall prescribe temporary regulations under section 6302(h) of the Internal Revenue Code of 1986 (as added by this section)." SAVINGS PROVISION For provisions that nothing in amendment by section 11801(c)(22)(A) of 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 liability for tax for periods ending after Nov. 5, 1990, see section 11821(b) of Pub. L. 101-508, set out as a note under section 45K of this title. DELAYED DEPOSITS OF HIGHWAY MOTOR FUEL TAX REVENUES Pub. L. 105-34, title IX, Sec. 901(e), Aug. 5, 1997, 111 Stat. 872, provided that: "Notwithstanding section 6302 of the Internal Revenue Code of 1986, in the case of deposits of taxes imposed by sections 4041 and 4081 (other than subsection (a)(2)(A)(ii)) of the Internal Revenue Code of 1986, the due date for any deposit which would (but for this subsection) be required to be made after July 31, 1998, and before October 1, 1998, shall be October 5, 1998." WAIVER OF PENALTY THROUGH JUNE 30, 1998, ON SMALL BUSINESSES FAILING TO MAKE ELECTRONIC FUND TRANSFERS OF TAXES Pub. L. 105-34, title IX, Sec. 931, Aug. 5, 1997, 111 Stat. 881, provided that: "No penalty shall be imposed under the Internal Revenue Code of 1986 solely by reason of a failure by a person to use the electronic fund transfer system established under section 6302(h) of such Code if - "(1) such person is a member of a class of taxpayers first required to use such system on or after July 1, 1997, and "(2) such failure occurs before July 1, 1998." DELAYED DEPOSITS OF AIRPORT TRUST FUND TAX REVENUES Pub. L. 105-34, title X, Sec. 1031(g), Aug. 5, 1997, 111 Stat. 933, provided that: "Notwithstanding section 6302 of the Internal Revenue Code of 1986 - "(1) in the case of deposits of taxes imposed by section 4261 of such Code, the due date for any such deposit which would (but for this subsection) be required to be made after August 14, 1997, and before October 1, 1997, shall be October 10, 1997, "(2) in the case of deposits of taxes imposed by section 4261 of such Code, the due date for any such deposit which would (but for this subsection) be required to be made after August 14, 1998, and before October 1, 1998, shall be October 5, 1998, and "(3) in the case of deposits of taxes imposed by sections 4081(a)(2)(A)(ii), 4091, and 4271 of such Code, the due date for any such deposit which would (but for this subsection) be required to be made after July 31, 1998, and before October 1, 1998, shall be October 5, 1998." DELAY OF ELECTRONIC FUND TRANSFER REQUIREMENT Section 1809 of Pub. L. 104-188 provided that: "Notwithstanding any other provision of law, the increase in the applicable required percentages for fiscal year 1997 in clauses (i)(IV) and (ii)(IV) of section 6302(h)(2)(C) of the Internal Revenue Code of 1986 shall not take effect before July 1, 1997." DEPOSITARY SCHEDULES Pub. L. 98-76, title II, Sec. 226, Aug. 12, 1983, 97 Stat. 426, as amended by Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that: "Effective on and after January 1, 1984, the times for making payments prescribed under section 6302 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] with respect to the taxes imposed by chapter 22 of such Code shall be the same as the times prescribed under such section which apply to the taxes imposed by chapters 21 and 24 of such Code." Pub. L. 98-76, title II, Sec. 227(c), Aug. 12, 1983, 97 Stat. 426, provided that: "Section 226 [set out above] shall take effect on January 1, 1984." -End- -CITE- 26 USC Sec. 6303 01/02/2006 -EXPCITE- TITLE 26 - INTERNAL REVENUE CODE Subtitle F - Procedure and Administration CHAPTER 64 - COLLECTION Subchapter A - General Provisions -HEAD- Sec. 6303. Notice and demand for tax -STATUTE- (a) General rule Where it is not otherwise provided by this title, the Secretary shall, as soon as practicable, and within 60 days, after the making of an assessment of a tax pursuant to section 6203, give notice to each person liable for the unpaid tax, stating the amount and demanding payment thereof. Such notice shall be left at the dwelling or usual place of business of such person, or shall be sent by mail to such person's last known address. (b) Assessment prior to last date for payment Except where the Secretary believes collection would be jeopardized by delay, if any tax is assessed prior to the last date prescribed for payment of such tax, payment of such tax shall not be demanded under subsection (a) until after such date. -SOURCE- (Aug. 16, 1954, ch. 736, 68A Stat. 775; Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.) -MISC1- AMENDMENTS 1976 - Pub. L. 94-455 struck out "or his delegate" after "Secretary" wherever appearing. -End- -CITE- 26 USC Sec. 6304 01/02/2006 -EXPCITE- TITLE 26 - INTERNAL REVENUE CODE Subtitle F - Procedure and Administration CHAPTER 64 - COLLECTION Subchapter A - General Provisions -HEAD- Sec. 6304. Fair tax collection practices -STATUTE- (a) Communication with the taxpayer Without the prior consent of the taxpayer given directly to the Secretary or the express permission of a court of competent jurisdiction, the Secretary may not communicate with a taxpayer in connection with the collection of any unpaid tax - (1) at any unusual time or place or a time or place known or which should be known to be inconvenient to the taxpayer; (2) if the Secretary knows the taxpayer is represented by any person authorized to practice before the Internal Revenue Service with respect to such unpaid tax and has knowledge of, or can readily ascertain, such person's name and address, unless such person fails to respond within a reasonable period of time to a communication from the Secretary or unless such person consents to direct communication with the taxpayer; or (3) at the taxpayer's place of employment if the Secretary knows or has reason to know that the taxpayer's employer prohibits the taxpayer from receiving such communication. In the absence of knowledge of circumstances to the contrary, the Secretary shall assume that the convenient time for communicating with a taxpayer is after 8 a.m. and before 9 p.m., local time at the taxpayer's location. (b) Prohibition of harassment and abuse The Secretary may not engage in any conduct the natural consequence of which is to harass, oppress, or abuse any person in connection with the collection of any unpaid tax. Without limiting the general application of the foregoing, the following conduct is a violation of this subsection: (1) The use or threat of use of violence or other criminal means to harm the physical person, reputation, or property of any person. (2) The use of obscene or profane language or language the natural consequence of which is to abuse the hearer or reader. (3) Causing a telephone to ring or engaging any person in telephone conversation repeatedly or continuously with intent to annoy, abuse, or harass any person at the called number. (4) Except as provided under rules similar to the rules in section 804 of the Fair Debt Collection Practices Act (15 U.S.C. 1692b), the placement of telephone calls without meaningful disclosure of the caller's identity. (c) Civil action for violations of section For civil action for violations of this section, see section 7433. -SOURCE- (Added Pub. L. 105-206, title III, Sec. 3466(a), July 22, 1998, 112 Stat. 768.) -MISC1- PRIOR PROVISIONS A prior section 6304, act Aug. 16, 1954, ch. 736, 68A Stat. 776, related to a cross reference to sections 4504 and 4601 for collection under the Tariff Act of 1930, prior to repeal by Pub. L. 94-455, title XIX, Sec. 1906(a)(18), (d)(1), Oct. 4, 1976, 90 Stat. 1825, 1835, effective on first day of first month which begins more than 90 days after Oct. 4, 1976. EFFECTIVE DATE Pub. L. 105-206, title III, Sec. 3466(c), July 22, 1998, 112 Stat. 769, provided that: "The amendments made by this section [enacting this section] shall take effect on the date of the enactment of this Act [July 22, 1998]." -End- -CITE- 26 USC Sec. 6305 01/02/2006 -EXPCITE- TITLE 26 - INTERNAL REVENUE CODE Subtitle F - Procedure and Administration CHAPTER 64 - COLLECTION Subchapter A - General Provisions -HEAD- Sec. 6305. Collection of certain liability -STATUTE- (a) In general Upon receiving a certification from the Secretary of Health and Human Services, under section 452(b) of the Social Security Act with respect to any individual, the Secretary shall assess and collect the amount certified by the Secretary of Health and Human Services, in the same manner, with the same powers, and (except as provided in this section) subject to the same limitations as if such amount were a tax imposed by subtitle C the collection of which would be jeopardized by delay, except that - (1) no interest or penalties shall be assessed or collected, (2) for such purposes, paragraphs (4), (6), and (8) of section 6334(a) (relating to property exempt from levy) shall not apply, (3) there shall be exempt from levy so much of the salary, wages, or other income of an individual as is being withheld therefrom in garnishment pursuant to a judgment entered by a court of competent jurisdiction for the support of his minor children, (4) in the case of the first assessment against an individual for delinquency under a court or administrative order against such individual for a particular person or persons, the collection shall be stayed for a period of 60 days immediately following notice and demand as described in section 6303, and (5) no additional fee may be assessed for adjustments to an amount previously certified pursuant to such section 452(b) with respect to the same obligor. (b) Review of assessments and collections No court of the United States, whether established under article I or article III of the Constitution, shall have jurisdiction of any action, whether legal or equitable, brought to restrain or review the assessment and collection of amounts by the Secretary under subsection (a), nor shall any such assessment and collection be subject to review by the Secretary in any proceeding. This subsection does not preclude any legal, equitable, or administrative action against the State by an individual in any State court or before any State agency to determine his liability for any amount assessed against him and collected, or to recover any such amount collected from him, under this section. -SOURCE- (Added Pub. L. 93-647, Sec. 101(b)(1), Jan. 4, 1975, 88 Stat. 2358; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 97-35, title XXIII, Sec. 2332(g), Aug. 13, 1981, 95 Stat. 862; Pub. L. 104-193, title III, Sec. 361(a), Aug. 22, 1996, 110 Stat. 2242.) -REFTEXT- REFERENCES IN TEXT Section 452(b) of the Social Security Act, referred to in subsec. (a), is classified to section 652(b) of Title 42, The Public Health and Welfare. -MISC1- AMENDMENTS 1996 - Subsec. (a). Pub. L. 104-193, Sec. 361(a)(4), substituted "Secretary of Health and Human Services" for "Secretary of Health, Education, and Welfare" in two places in introductory provisions. Subsec. (a)(5). Pub. L. 104-193, Sec. 361(a)(1)-(3), added par. (5). 1981 - Subsec. (a)(4). Pub. L. 97-35 inserted reference to administrative order. 1976 - Subsecs. (a), (b). Pub. L. 94-455 struck out "or his delegate" after "Secretary" wherever appearing. EFFECTIVE DATE OF 1996 AMENDMENT Section 361(b) of Pub. L. 104-193 provided that: "The amendments made by this section [amending this section] shall become effective October 1, 1997." For provisions relating to effective date of title III of Pub. L. 104-193, see section 395(a)-(c) of Pub. L. 104-193, set out as a note under section 654 of Title 42, The Public Health and Welfare. EFFECTIVE DATE OF 1981 AMENDMENT Amendment by Pub. L. 97-35 effective, except as otherwise specifically provided, on Oct. 1, 1981, see section 2336 of Pub. L. 97-35, set out as a note under section 651 of Title 42, The Public Health and Welfare. EFFECTIVE DATE Section effective Aug. 1, 1975, see section 101(f) of Pub. L. 93- 647, set out as a note under section 651 of Title 42, the Public Health and Welfare. -End- -CITE- 26 USC Sec. 6306 01/02/2006 -EXPCITE- TITLE 26 - INTERNAL REVENUE CODE Subtitle F - Procedure and Administration CHAPTER 64 - COLLECTION Subchapter A - General Provisions -HEAD- Sec. 6306. Qualified tax collection contracts -STATUTE- (a) In general Nothing in any provision of law shall be construed to prevent the Secretary from entering into a qualified tax collection contract. (b) Qualified tax collection contract For purposes of this section, the term "qualified tax collection contract" means any contract which - (1) is for the services of any person (other than an officer or employee of the Treasury Department) - (A) to locate and contact any taxpayer specified by the Secretary, (B) to request full payment from such taxpayer of an amount of Federal tax specified by the Secretary and, if such request cannot be met by the taxpayer, to offer the taxpayer an installment agreement providing for full payment of such amount during a period not to exceed 5 years, and (C) to obtain financial information specified by the Secretary with respect to such taxpayer, (2) prohibits each person providing such services under such contract from committing any act or omission which employees of the Internal Revenue Service are prohibited from committing in the performance of similar services, (3) prohibits subcontractors from - (A) having contacts with taxpayers, (B) providing quality assurance services, and (C) composing debt collection notices, and (4) permits subcontractors to perform other services only with the approval of the Secretary. (c) Fees The Secretary may retain and use - (1) an amount not in excess of 25 percent of the amount collected under any qualified tax collection contract for the costs of services performed under such contract, and (2) an amount not in excess of 25 percent of such amount collected for collection enforcement activities of the Internal Revenue Service. The Secretary shall keep adequate records regarding amounts so retained and used. The amount credited as paid by any taxpayer shall be determined without regard to this subsection. (d) No Federal liability The United States shall not be liable for any act or omission of any person performing services under a qualified tax collection contract. (e) Application of Fair Debt Collection Practices Act The provisions of the Fair Debt Collection Practices Act (15 U.S.C. 1692 et seq.) shall apply to any qualified tax collection contract, except to the extent superseded by section 6304, section 7602(c), or by any other provision of this title. (f) Cross references (1) For damages for certain unauthorized collection actions by persons performing services under a qualified tax collection contract, see section 7433A. (2) For application of Taxpayer Assistance Orders to persons performing services under a qualified tax collection contract, see section 7811(g). -SOURCE- (Added Pub. L. 108-357, title VIII, Sec. 881(a)(1), Oct. 22, 2004, 118 Stat. 1625.) -REFTEXT- REFERENCES IN TEXT The Fair Debt Collection Practices Act, referred to in subsec. (e), is title VIII of Pub. L. 90-321, as added by Pub. L. 95-109, Sept. 20, 1977, 91 Stat. 874, as amended, which is classified generally to subchapter V (Sec. 1692 et seq.) of chapter 41 of Title 15, Commerce and Trade. For complete classification of this Act to the Code, see Short Title note set out under section 1601 of Title 15 and Tables. -MISC1- EFFECTIVE DATE Pub. L. 108-357, title VIII, Sec. 881(f), Oct. 22, 2004, 118 Stat. 1627, provided that: "The amendments made to [by] this section [enacting this section and section 7433A of this title, amending sections 7809 and 7811 of this title, and amending provisions set out as a note under section 7804 of this title] shall take effect on the date of the enactment of this Act [Oct. 22, 2004]." BIENNIAL REPORT Pub. L. 108-357, title VIII, Sec. 881(e), Oct. 22, 2004, 118 Stat. 1627, provided that: "The Secretary of the Treasury shall biennially submit (beginning in 2005) to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives a report with respect to qualified tax collection contracts under section 6306 of the Internal Revenue Code of 1986 (as added by this section) which includes - "(1) a complete cost benefit analysis, "(2) the impact of such contracts on collection enforcement staff levels in the Internal Revenue Service, "(3) the impact of such contracts on the total number and amount of unpaid assessments, and on the number and amount of assessments collected by Internal Revenue Service personnel after initial contact by a contractor, "(4) the amounts collected and the collection costs incurred (directly and indirectly) by the Internal Revenue Service, "(5) an evaluation of contractor performance, "(6) a disclosure safeguard report in a form similar to that required under section 6103(p)(5) of such Code, and "(7) a measurement plan which includes a comparison of the best practices used by the private collectors with the Internal Revenue Service's own collection techniques and mechanisms to identify and capture information on successful collection techniques used by the contractors which could be adopted by the Internal Revenue Service." -End- -CITE- 26 USC Subchapter B - Receipt of Payment 01/02/2006 -EXPCITE- TITLE 26 - INTERNAL REVENUE CODE Subtitle F - Procedure and Administration CHAPTER 64 - COLLECTION Subchapter B - Receipt of Payment -HEAD- SUBCHAPTER B - RECEIPT OF PAYMENT -MISC1- Sec. 6311. Payment of tax by commercially acceptable means. [6312. Repealed.] 6313. Fractional parts of a cent. 6314. Receipt for taxes. 6315. Payments of estimated income tax. 6316. Payment by foreign currency. 6317. Payments of Federal unemployment tax for calendar quarter. AMENDMENTS 1997 - Pub. L. 105-34, title XII, Sec. 1205(b), Aug. 5, 1997, 111 Stat. 998, substituted "Payment of tax by commercially acceptable means" for "Payment by check or money order" in item 6311. 1971 - Pub. L. 92-5, title I, Sec. 4(a)(2), Mar. 17, 1971, 85 Stat. 5, struck out item 6312 "Payment by United States notes and certificates of indebtedness". 1969 - Pub. L. 91-53, Sec. 2(f)(2), Aug. 7, 1969, 83 Stat. 93, added item 6317. REPEALS Pub. L. 92-5, title I, Sec. 4(a)(2), Mar. 17, 1971, 85 Stat. 5, which struck out item 6312, was repealed by Pub. L. 97-258, Sec. 5(b), Sept. 13, 1982, 96 Stat. 1068, 1081. -End- -CITE- 26 USC Sec. 6311 01/02/2006 -EXPCITE- TITLE 26 - INTERNAL REVENUE CODE Subtitle F - Procedure and Administration CHAPTER 64 - COLLECTION Subchapter B - Receipt of Payment -HEAD- Sec. 6311. Payment of tax by commercially acceptable means -STATUTE- (a) Authority to receive It shall be lawful for the Secretary to receive for internal revenue taxes (or in payment for internal revenue stamps) any commercially acceptable means that the Secretary deems appropriate to the extent and under the conditions provided in regulations prescribed by the Secretary. (b) Ultimate liability If a check, money order, or other method of payment, including payment by credit card, debit card, or charge card so received is not duly paid, or is paid and subsequently charged back to the Secretary, the person by whom such check, or money order, or other method of payment has been tendered shall remain liable for the payment of the tax or for the stamps, and for all legal penalties and additions, to the same extent as if such check, money order, or other method of payment had not been tendered. (c) Liability of banks and others If any certified, treasurer's, or cashier's check (or other guaranteed draft), or any money order, or any other means of payment that has been guaranteed by a financial institution (such as a credit card, debit card, or charge card transaction which has been guaranteed expressly by a financial institution) so received is not duly paid, the United States shall, in addition to its right to exact payment from the party originally indebted therefor, have a lien for - (1) the amount of such check (or draft) upon all assets of the financial institution on which drawn, (2) the amount of such money order upon all the assets of the issuer thereof, or (3) the guaranteed amount of any other transaction upon all the assets of the institution making such guarantee, and such amount shall be paid out of such assets in preference to any other claims whatsoever against such financial institution, issuer, or guaranteeing institution, except the necessary costs and expenses of administration and the reimbursement of the United States for the amount expended in the redemption of the circulating notes of such financial institution. (d) Payment by other means (1) Authority to prescribe regulations The Secretary shall prescribe such regulations as the Secretary deems necessary to receive payment by commercially acceptable means, including regulations that - (A) specify which methods of payment by commercially acceptable means will be acceptable, (B) specify when payment by such means will be considered received, (C) identify types of nontax matters related to payment by such means that are to be resolved by persons ultimately liable for payment and financial intermediaries, without the involvement of the Secretary, and (D) ensure that tax matters will be resolved by the Secretary, without the involvement of financial intermediaries. (2) Authority to enter into contracts Notwithstanding section 3718(f) of title 31, United States Code, the Secretary is authorized to enter into contracts to obtain services related to receiving payment by other means where cost beneficial to the Government. The Secretary may not pay any fee or provide any other consideration under any such contract for the use of credit, debit, or charge cards for the payment of taxes imposed by subtitle A. (3) Special provisions for use of credit cards If use of credit cards is accepted as a method of payment of taxes pursuant to subsection (a) - (A) a payment of internal revenue taxes (or a payment for internal revenue stamps) by a person by use of a credit card shall not be subject to section 161 of the Truth in Lending Act (15 U.S.C. 1666), or to any similar provisions of State law, if the error alleged by the person is an error relating to the underlying tax liability, rather than an error relating to the credit card account such as a computational error or numerical transposition in the credit card transaction or an issue as to whether the person authorized payment by use of the credit card, (B) a payment of internal revenue taxes (or a payment for internal revenue stamps) shall not be subject to section 170 of the Truth in Lending Act (15 U.S.C. 1666i), or to any similar provisions of State law, (C) a payment of internal revenue taxes (or a payment for internal revenue stamps) by a person by use of a debit card shall not be subject to section 908 of the Electronic Fund Transfer Act (15 U.S.C. 1693f), or to any similar provisions of State law, if the error alleged by the person is an error relating to the underlying tax liability, rather than an error relating to the debit card account such as a computational error or numerical transposition in the debit card transaction or an issue as to whether the person authorized payment by use of the debit card, (D) the term "creditor" under section 103(f) of the Truth in Lending Act (15 U.S.C. 1602(f)) shall not include the Secretary with respect to credit card transactions in payment of internal revenue taxes (or payment for internal revenue stamps), and (E) notwithstanding any other provision of law to the contrary, in the case of payment made by credit card or debit card transaction of an amount owed to a person as the result of the correction of an error under section 161 of the Truth in Lending Act (15 U.S.C. 1666) or section 908 of the Electronic Fund Transfer Act (15 U.S.C. 1693f), the Secretary is authorized to provide such amount to such person as a credit to that person's credit card or debit card account through the applicable credit card or debit card system. (e) Confidentiality of information (1) In general Except as otherwise authorized by this subsection, no person may use or disclose any information relating to credit or debit card transactions obtained pursuant to section 6103(k)(9) other than for purposes directly related to the processing of such transactions, or the billing or collection of amounts charged or debited pursuant thereto. (2) Exceptions (A) Debit or credit card issuers or others acting on behalf of such issuers may also use and disclose such information for purposes directly related to servicing an issuer's accounts. (B) Debit or credit card issuers or others directly involved in the processing of credit or debit card transactions or the billing or collection of amounts charged or debited thereto may also use and disclose such information for purposes directly related to - (i) statistical risk and profitability assessment; (ii) transferring receivables, accounts, or interest therein; (iii) auditing the account information; (iv) complying with Federal, State, or local law; and (v) properly authorized civil, criminal, or regulatory investigation by Federal, State, or local authorities. (3) Procedures Use and disclosure of information under this paragraph shall be made only to the extent authorized by written procedures promulgated by the Secretary. (4) Cross reference For provision providing for civil damages for violation of paragraph (1), see section 7431. -SOURCE- (Aug. 16, 1954, ch. 736, 68A Stat. 777; Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 98-369, div. A, title IV, Sec. 448(a), July 18, 1984, 98 Stat. 817; Pub. L. 105-34, title XII, Sec. 1205(a), Aug. 5, 1997, 111 Stat. 995; Pub. L. 105-206, title VI, Sec. 6012(b)(1), July 22, 1998, 112 Stat. 819; Pub. L. 105-277, div. J, title IV, Sec. 4003(k), Oct. 21, 1998, 112 Stat. 2681-910.) -MISC1- AMENDMENTS 1998 - Subsec. (d)(2). Pub. L. 105-277 substituted "under any such contract for the use of credit, debit, or charge cards for the payment of taxes imposed by subtitle A" for "under such contracts". Subsec. (e)(1). Pub. L. 105-206 substituted "section 6103(k)(9)" for "section 6103(k)(8)". 1997 - Pub. L. 105-34 amended section catchline and text generally, substituting provisions relating to payment of tax by commercially acceptable means for provisions consisting of subsecs. (a) and (b) relating to payment by check or money order and liability if a check or money order received is not duly paid. 1984 - Subsec. (b)(2). Pub. L. 98-369 substituted "or cashier's check (or other guaranteed draft)" for "or cashier's check", "the amount of such check (or draft)" for "the amount of such check", and "the financial institution" for "the bank or trust company", and substituted "such financial institution" for "such bank" in two places. 1976 - Subsec. (a). Pub. L. 94-455 struck out "or his delegate" after "Secretary" wherever appearing. EFFECTIVE DATE OF 1998 AMENDMENTS Amendment by Pub. L. 105-277 effective as if included in the provision of the Taxpayer Relief Act of 1997, Pub. L. 105-34, to which such amendment relates, see section 4003(l) of Pub. L. 105- 277, set out as a note under section 86 of this title. Amendment by Pub. L. 105-206 effective, except as otherwise provided, as if included in the provisions of the Taxpayer Relief Act of 1997, Pub. L. 105-34, to which such amendment relates, see section 6024 of Pub. L. 105-206, set out as a note under section 1 of this title. EFFECTIVE DATE OF 1997 AMENDMENT Amendment by Pub. L. 105-34 effective on the day 9 months after Aug. 5, 1997, see section 1205(d) of Pub. L. 105-34, set out as a note under section 6103 of this title. EFFECTIVE DATE OF 1984 AMENDMENT Section 448(b) of Pub. L. 98-369 provided that: "The amendments made by subsection (a) [amending this section] shall take effect on the date of the enactment of this Act [July 18, 1984]." REGULATIONS Pub. L. 105-206, title III, Sec. 3703, July 22, 1998, 112 Stat. 777, provided that: "The Secretary of the Treasury or the Secretary's delegate shall establish such rules, regulations, and procedures as are necessary to allow payment of taxes by check or money order made payable to the United States Treasury." REQUIRED NOTICE OF CERTAIN PAYMENTS Pub. L. 104-168, title XII, Sec. 1202, July 30, 1996, 110 Stat. 1470, provided that: "If any payment is received by the Secretary of the Treasury or his delegate from any taxpayer and the Secretary cannot associate such payment with such taxpayer, the Secretary shall make reasonable efforts to notify the taxpayer of such inability within 60 days after the receipt of such payment." -End- -CITE- 26 USC Sec. 6312 01/02/2006 -EXPCITE- TITLE 26 - INTERNAL REVENUE CODE Subtitle F - Procedure and Administration CHAPTER 64 - COLLECTION Subchapter B - Receipt of Payment -HEAD- [Sec. 6312. Repealed. Pub. L. 92-5, title I, Sec. 4(a)(2), Mar. 17, 1971, 85 Stat. 5] -MISC1- Section, act Aug. 16, 1954, ch. 736, 68A Stat. 777, permitted the Secretary to receive Treasury bills, notes and certificates of indebtedness issued by the United States in payment of any internal revenue taxes or stamps. EFFECTIVE DATE OF REPEAL Section 4(a) of Pub. L. 92-5 provided that the repeal of this section is effective with respect to obligations issued after Mar. 3, 1971. REPEALS Pub. L. 92-5, title I, Sec. 4(a)(2), Mar. 17, 1971, 85 Stat. 5, which repealed this section and provided for the effective date of that repeal, was itself repealed by Pub. L. 97-258, Sec. 5(b), Sept. 13, 1982, 96 Stat. 1068, 1081. -End- -CITE- 26 USC Sec. 6313 01/02/2006 -EXPCITE- TITLE 26 - INTERNAL REVENUE CODE Subtitle F - Procedure and Administration CHAPTER 64 - COLLECTION Subchapter B - Receipt of Payment -HEAD- Sec. 6313. Fractional parts of a cent -STATUTE- In the payment of any tax imposed by this title, a fractional part of a cent shall be disregarded unless it amounts to one-half cent or more, in which case it shall be increased to 1 cent. -SOURCE- (Aug. 16, 1954, ch. 736, 68A Stat. 778; Pub. L. 94-455, title XIX, Sec. 1906(a)(19), Oct. 4, 1976, 90 Stat. 1825.) -MISC1- AMENDMENTS 1976 - Pub. L. 94-455 struck out "not payable by stamp" after "title". -End- -CITE- 26 USC Sec. 6314 01/02/2006 -EXPCITE- TITLE 26 - INTERNAL REVENUE CODE Subtitle F - Procedure and Administration CHAPTER 64 - COLLECTION Subchapter B - Receipt of Payment -HEAD- Sec. 6314. Receipt for taxes -STATUTE- (a) General rule The Secretary shall, upon request, give receipts for all sums collected by him, excepting only when the same are in payment for stamps sold and delivered; but no receipt shall be issued in lieu of a stamp representing a tax. (b) Duplicate receipts for payment of estate taxes The Secretary shall, upon request, give to the person paying the tax under chapter 11 (relating to the estate tax) duplicate receipts, either of which shall be sufficient evidence of such payment, and shall entitle the executor to be credited and allowed the amount thereof by any court having jurisdiction to audit or settle his accounts. (c) Cross references (1) For receipt required to be furnished by employer to employee with respect to employment taxes, see section 6051. (2) For receipt of discharge of fiduciary from personal liability, see section 2204. -SOURCE- (Aug. 16, 1954, ch. 736, 68A Stat. 778; Pub. L. 91-614, title I, Sec. 101(d)(2), Dec. 31, 1970, 84 Stat. 1837; Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.) -MISC1- AMENDMENTS 1976 - Pub. L. 94-455 struck out "or his delegate" after "Secretary" wherever appearing. 1970 - Subsec. (c)(2). Pub. L. 91-614 substituted "fiduciary" for "executor". EFFECTIVE DATE OF 1970 AMENDMENT Amendment by Pub. L. 91-614 applicable with respect to decedents dying after Dec. 31, 1970, see section 101(j) of Pub. L. 91-614, set out as a note under section 2032 of this title. -End- -CITE- 26 USC Sec. 6315 01/02/2006 -EXPCITE- TITLE 26 - INTERNAL REVENUE CODE Subtitle F - Procedure and Administration CHAPTER 64 - COLLECTION Subchapter B - Receipt of Payment -HEAD- Sec. 6315. Payments of estimated income tax -STATUTE- Payment of the estimated income tax, or any installment thereof, shall be considered payment on account of the income taxes imposed by subtitle A for the taxable year. -SOURCE- (Aug. 16, 1954, ch. 736, 68A Stat. 778.) -End- -CITE- 26 USC Sec. 6316 01/02/2006 -EXPCITE- TITLE 26 - INTERNAL REVENUE CODE Subtitle F - Procedure and Administration CHAPTER 64 - COLLECTION Subchapter B - Receipt of Payment -HEAD- Sec. 6316. Payment by foreign currency -STATUTE- The Secretary is authorized in his discretion to allow payment of taxes in the currency of a foreign country under such circumstances and subject to such conditions as the Secretary may by regulations prescribe. -SOURCE- (Aug. 16, 1954, ch. 736, 68A Stat. 778; Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.) -MISC1- AMENDMENTS 1976 - Pub. L. 94-455 struck out "or his delegate" after "Secretary" in two places. -End- -CITE- 26 USC Sec. 6317 01/02/2006 -EXPCITE- TITLE 26 - INTERNAL REVENUE CODE Subtitle F - Procedure and Administration CHAPTER 64 - COLLECTION Subchapter B - Receipt of Payment -HEAD- Sec. 6317. Payments of Federal unemployment tax for calendar quarter -STATUTE- Payment of Federal unemployment tax for a calendar quarter or other period within a calendar year pursuant to section 6157 shall be considered payment on account of the tax imposed by chapter 23 of such calendar year. -SOURCE- (Added Pub. L. 91-53, Sec. 2(c), Aug. 7, 1969, 83 Stat. 92; amended Pub. L. 98-76, title II, Sec. 231(b)(2)(B), Aug. 12, 1983, 97 Stat. 429; Pub. L. 100-647, title VII, Sec. 7106(c)(3), Nov. 10, 1988, 102 Stat. 3773.) -MISC1- AMENDMENTS 1988 - Pub. L. 100-647 struck out "or tax imposed by section 3321" after "unemployment tax" and "and 23A, as the case may be," after "chapter 23". 1983 - Pub. L. 98-76 inserted "or tax imposed by section 3321" after "Federal unemployment tax", and substituted "chapter 23 and 23A, as the case may be," for "chapter 23". EFFECTIVE DATE OF 1988 AMENDMENT Amendment by Pub. L. 100-647 applicable to remuneration 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 remuneration 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 Section applicable with respect to calendar years beginning after Dec. 31, 1969, see section 4(a) of Pub. L. 91-53, set out as a note under section 6157 of this title. -End- -CITE- 26 USC Subchapter C - Lien for Taxes 01/02/2006 -EXPCITE- TITLE 26 - INTERNAL REVENUE CODE Subtitle F - Procedure and Administration CHAPTER 64 - COLLECTION Subchapter C - Lien for Taxes -HEAD- SUBCHAPTER C - LIEN FOR TAXES -MISC1- Part I. Due process for liens. II. Liens. AMENDMENTS 1998 - Pub. L. 105-206, title III, Sec. 3401(a), July 22, 1998, 112 Stat. 746, added part analysis. -End- -CITE- 26 USC PART I - DUE PROCESS FOR LIENS 01/02/2006 -EXPCITE- TITLE 26 - INTERNAL REVENUE CODE Subtitle F - Procedure and Administration CHAPTER 64 - COLLECTION Subchapter C - Lien for Taxes PART I - DUE PROCESS FOR LIENS -HEAD- PART I - DUE PROCESS FOR LIENS -MISC1- Sec. 6320. Notice and opportunity for hearing upon filing of notice of lien. AMENDMENTS 1998 - Pub. L. 105-206, title III, Sec. 3401(a), July 22, 1998, 112 Stat. 746, added part heading and analysis consisting of item 6320. -End- -CITE- 26 USC Sec. 6320 01/02/2006 -EXPCITE- TITLE 26 - INTERNAL REVENUE CODE Subtitle F - Procedure and Administration CHAPTER 64 - COLLECTION Subchapter C - Lien for Taxes PART I - DUE PROCESS FOR LIENS -HEAD- Sec. 6320. Notice and opportunity for hearing upon filing of notice of lien -STATUTE- (a) Requirement of notice (1) In general The Secretary shall notify in writing the person described in section 6321 of the filing of a notice of lien under section 6323. (2) Time and method for notice The notice required under paragraph (1) shall be - (A) given in person; (B) left at the dwelling or usual place of business of such person; or (C) sent by certified or registered mail to such person's last known address, not more than 5 business days after the day of the filing of the notice of lien. (3) Information included with notice The notice required under paragraph (1) shall include in simple and nontechnical terms - (A) the amount of unpaid tax; (B) the right of the person to request a hearing during the 30-day period beginning on the day after the 5-day period described in paragraph (2); (C) the administrative appeals available to the taxpayer with respect to such lien and the procedures relating to such appeals; and (D) the provisions of this title and procedures relating to the release of liens on property. (b) Right to fair hearing (1) In general If the person requests a hearing under subsection (a)(3)(B), such hearing shall be held by the Internal Revenue Service Office of Appeals. (2) One hearing per period A person shall be entitled to only one hearing under this section with respect to the taxable period to which the unpaid tax specified in subsection (a)(3)(A) relates. (3) Impartial officer The hearing under this subsection shall be conducted by an officer or employee who has had no prior involvement with respect to the unpaid tax specified in subsection (a)(3)(A) before the first hearing under this section or section 6330. A taxpayer may waive the requirement of this paragraph. (4) Coordination with section 6330 To the extent practicable, a hearing under this section shall be held in conjunction with a hearing under section 6330. (c) Conduct of hearing; review; suspensions For purposes of this section, subsections (c), (d) (other than paragraph (2)(B) thereof), and (e) of section 6330 shall apply. -SOURCE- (Added Pub. L. 105-206, title III, Sec. 3401(a), July 22, 1998, 112 Stat. 746.) -MISC1- EFFECTIVE DATE Pub. L. 105-206, title III, Sec. 3401(d), July 22, 1998, 112 Stat. 750, provided that: "The amendments made by this section [enacting this section and section 6330 of this title and amending section 7443A of this title] shall apply to collection actions initiated after the date which is 180 days after the date of the enactment of this Act [July 22, 1998]." -End- -CITE- 26 USC PART II - LIENS 01/02/2006 -EXPCITE- TITLE 26 - INTERNAL REVENUE CODE Subtitle F - Procedure and Administration CHAPTER 64 - COLLECTION Subchapter C - Lien for Taxes PART II - LIENS -HEAD- PART II - LIENS -MISC1- Sec. 6321. Lien for taxes. 6322. Period of lien. 6323. Validity and priority against certain persons. 6324. Special liens for estate and gift taxes. 6324A. Special lien for estate tax deferred under section 6166. 6324B. Special lien for additional estate tax attributable to farm, etc., valuation. 6325. Release of lien or discharge of property. 6326. Administrative appeal of liens. 6327. Cross references. AMENDMENTS 1998 - Pub. L. 105-206, title III, Sec. 3401(a), July 22, 1998, 112 Stat. 747, added part heading. 1988 - Pub. L. 100-647, title VI, Sec. 6238(c), Nov. 10, 1988, 102 Stat. 3743, added item 6326 and redesignated former item 6326 as 6327. 1981 - Pub. L. 97-34, title IV, Sec. 422(e)(6)(D), Aug. 13, 1981, 95 Stat. 316, struck out "or 6166A" after "section 6166" in item 6324A. 1976 - Pub. L. 94-455, title XX, Secs. 2003(d)(2), 2004(f)(1), Oct. 4, 1976, 90 Stat. 1862, 1871, added items 6324A and 6324B. 1966 - Pub. L. 89-719, title I, Secs. 101(b)(1), 103(b), Nov. 2, 1966, 80 Stat. 1131, 1135, substituted "Validity and priority against certain persons" for "Validity against mortgagees, pledgees, purchasers, and judgment creditors" in item 6323, and struck out "partial" before "discharge" in item 6325. -End- -CITE- 26 USC Sec. 6321 01/02/2006 -EXPCITE- TITLE 26 - INTERNAL REVENUE CODE Subtitle F - Procedure and Administration CHAPTER 64 - COLLECTION Subchapter C - Lien for Taxes PART II - LIENS -HEAD- Sec. 6321. Lien for taxes -STATUTE- If any person liable to pay any tax neglects or refuses to pay the same after demand, the amount (including any interest, additional amount, addition to tax, or assessable penalty, together with any costs that may accrue in addition thereto) shall be a lien in favor of the United States upon all property and rights to property, whether real or personal, belonging to such person. -SOURCE- (Aug. 16, 1954, ch. 736, 68A Stat. 779.) -MISC1- SHORT TITLE Pub. L. 89-719, Sec. 1(a), Nov. 2, 1966, 80 Stat. 1125, provided that: "This Act [enacting sections 3505, 7425, 7426, and 7810 of this title, amending sections 545, 6322 to 6325, 6331, 6332, 6334, 6335, 6337 to 6339, 6342, 6343, 6502, 6503, 6532, 7402, 7403, 7421, 7424, 7505, 7506, and 7809 of this title, sections 1346, 1402, and 2410 of Title 28, Judiciary and Judicial Procedure, and section 270a of former Title 40, Public Buildings, Property, and Works, redesignating section 7425 as 7427 of this title, and enacting provisions set out as notes under sections 6323 and 7424 of this title, and under section 1346 of Title 28] may be cited as the 'Federal Tax Lien Act of 1966'." -End- -CITE- 26 USC Sec. 6322 01/02/2006 -EXPCITE- TITLE 26 - INTERNAL REVENUE CODE Subtitle F - Procedure and Administration CHAPTER 64 - COLLECTION Subchapter C - Lien for Taxes PART II - LIENS -HEAD- Sec. 6322. Period of lien -STATUTE- Unless another date is specifically fixed by law, the lien imposed by section 6321 shall arise at the time the assessment is made and shall continue until the liability for the amount so assessed (or a judgment against the taxpayer arising out of such liability) is satisfied or becomes unenforceable by reason of lapse of time. -SOURCE- (Aug. 16, 1954, ch. 736, 68A Stat. 779; Pub. L. 89-719, title I, Sec. 113(a), Nov. 2, 1966, 80 Stat. 1146.) -MISC1- AMENDMENTS 1966 - Pub. L. 89-719 inserted "(or a judgment against the taxpayer arising out of such liability)". EFFECTIVE DATE OF 1966 AMENDMENT Amendment by Pub. L. 89-719 applicable after Nov. 2, 1966, regardless of when title or lien of United States arose or when lien or interest of another person was acquired, with certain exceptions, see section 114(a)-(c) of Pub. L. 89-719, set out as a note under section 6323 of this title. -End- -CITE- 26 USC Sec. 6323 01/02/2006 -EXPCITE- TITLE 26 - INTERNAL REVENUE CODE Subtitle F - Procedure and Administration CHAPTER 64 - COLLECTION Subchapter C - Lien for Taxes PART II - LIENS -HEAD- Sec. 6323. Validity and priority against certain persons -STATUTE- (a) Purchasers, holders of security interests, mechanic's lienors, and judgment lien creditors The lien imposed by section 6321 shall not be valid as against any purchaser, holder of a security interest, mechanic's lienor, or judgment lien creditor until notice thereof which meets the requirements of subsection (f) has been filed by the Secretary. (b) Protection for certain interests even though notice filed Even though notice of a lien imposed by section 6321 has been filed, such lien shall not be valid - (1) Securities With respect to a security (as defined in subsection (h)(4)) - (A) as against a purchaser of such security who at the time of purchase did not have actual notice or knowledge of the existence of such lien; and (B) as against a holder of a security interest in such security who, at the time such interest came into existence, did not have actual notice or knowledge of the existence of such lien. (2) Motor vehicles With respect to a motor vehicle (as defined in subsection (h)(3)), as against a purchaser of such motor vehicle, if - (A) at the time of the purchase such purchaser did not have actual notice or knowledge of the existence of such lien, and (B) before the purchaser obtains such notice or knowledge, he has acquired possession of such motor vehicle and has not thereafter relinquished possession of such motor vehicle to the seller or his agent. (3) Personal property purchased at retail With respect to tangible personal property purchased at retail, as against a purchaser in the ordinary course of the seller's trade or business, unless at the time of such purchase such purchaser intends such purchase to (or knows such purchase will) hinder, evade, or defeat the collection of any tax under this title. (4) Personal property purchased in casual sale With respect to household goods, personal effects, or other tangible personal property described in section 6334(a) purchased (not for resale) in a casual sale for less than $1,000, as against the purchaser, but only if such purchaser does not have actual notice or knowledge (A) of the existence of such lien, or (B) that this sale is one of a series of sales. (5) Personal property subject to possessory lien With respect to tangible personal property subject to a lien under local law securing the reasonable price of the repair or improvement of such property, as against a holder of such a lien, if such holder is, and has been, continuously in possession of such property from the time such lien arose. (6) Real property tax and special assessment liens With respect to real property, as against a holder of a lien upon such property, if such lien is entitled under local law to priority over security interests in such property which are prior in time, and such lien secures payment of - (A) a tax of general application levied by any taxing authority based upon the value of such property; (B) a special assessment imposed directly upon such property by any taxing authority, if such assessment is imposed for the purpose of defraying the cost of any public improvement; or (C) charges for utilities or public services furnished to such property by the United States, a State or political subdivision thereof, or an instrumentality of any one or more of the foregoing. (7) Residential property subject to a mechanic's lien for certain repairs and improvements With respect to real property subject to a lien for repair or improvement of a personal residence (containing not more than four dwelling units) occupied by the owner of such residence, as against a mechanic's lienor, but only if the contract price on the contract with the owner is not more than $5,000. (8) Attorneys' liens With respect to a judgment or other amount in settlement of a claim or of a cause of action, as against an attorney who, under local law, holds a lien upon or a contract enforcible against such judgment or amount, to the extent of his reasonable compensation for obtaining such judgment or procuring such settlement, except that this paragraph shall not apply to any judgment or amount in settlement of a claim or of a cause of action against the United States to the extent that the United States offsets such judgment or amount against any liability of the taxpayer to the United States. (9) Certain insurance contracts With respect to a life insurance, endowment, or annuity contract, as against the organization which is the insurer under such contract, at any time - (A) before such organization had actual notice or knowledge of the existence of such lien; (B) after such organization had such notice or knowledge, with respect to advances required to be made automatically to maintain such contract in force under an agreement entered into before such organization had such notice or knowledge; or (C) after satisfaction of a levy pursuant to section 6332(b), unless and until the Secretary delivers to such organization a notice, executed after the date of such satisfaction, of the existence of such lien. (10) Deposit-secured loans With respect to a savings deposit, share, or other account with an institution described in section 581 or 591, to the extent of any loan made by such institution without actual notice or knowledge of the existence of such lien, as against such institution, if such loan is secured by such account. (c) Protection for certain commercial transactions financing agreements, etc. (1) In general To the extent provided in this subsection, even though notice of a lien imposed by section 6321 has been filed, such lien shall not be valid with respect to a security interest which came into existence after tax lien filing but which - (A) is in qualified property covered by the terms of a written agreement entered into before tax lien filing and constituting - (i) a commercial transactions financing agreement, (ii) a real property construction or improvement financing agreement, or (iii) an obligatory disbursement agreement, and (B) is protected under local law against a judgment lien arising, as of the time of tax lien filing, out of an unsecured obligation. (2) Commercial transactions financing agreement For purposes of this subsection - (A) Definition The term "commercial transactions financing agreement" means an agreement (entered into by a person in the course of his trade or business) - (i) to make loans to the taxpayer to be secured by commercial financing security acquired by the taxpayer in the ordinary course of his trade or business, or (ii) to purchase commercial financing security (other than inventory) acquired by the taxpayer in the ordinary course of his trade or business; but such an agreement shall be treated as coming within the term only to the extent that such loan or purchase is made before the 46th day after the date of tax lien filing or (if earlier) before the lender or purchaser had actual notice or knowledge of such tax lien filing. (B) Limitation on qualified property The term "qualified property", when used with respect to a commercial transactions financing agreement, includes only commercial financing security acquired by the taxpayer before the 46th day after the date of tax lien filing. (C) Commercial financing security defined The term "commercial financing security" means (i) paper of a kind ordinarily arising in commercial transactions, (ii) accounts receivable, (iii) mortgages on real property, and (iv) inventory. (D) Purchaser treated as acquiring security interest A person who satisfies subparagraph (A) by reason of clause (ii) thereof shall be treated as having acquired a security interest in commercial financing security (3) Real property construction or improvement financing agreement For purposes of this subsection - (A) Definition The term "real property construction or improvement financing agreement" means an agreement to make cash disbursements to finance - (i) the construction or improvement of real property, (ii) a contract to construct or improve real property, or (iii) the raising or harvesting of a farm crop or the raising of livestock or other animals. For purposes of clause (iii), the furnishing of goods and services shall be treated as the disbursement of cash. (B) Limitation on qualified property The term "qualified property", when used with respect to a real property construction or improvement financing agreement, includes only - (i) in the case of subparagraph (A)(i), the real property with respect to which the construction or improvement has been or is to be made, (ii) in the case of subparagraph (A)(ii), the proceeds of the contract described therein, and (iii) in the case of subparagraph (A)(iii), property subject to the lien imposed by section 6321 at the time of tax lien filing and the crop or the livestock or other animals referred to in subparagraph (A)(iii). (4) Obligatory disbursement agreement For purposes of this subsection - (A) Definition The term "obligatory disbursement agreement" means an agreement (entered into by a person in the course of his trade or business) to make disbursements, but such an agreement shall be treated as coming within the term only to the extent of disbursements which are required to be made by reason of the intervention of the rights of a person other than the taxpayer. (B) Limitation on qualified property The term "qualified property", when used with respect to an obligatory disbursement agreement, means property subject to the lien imposed by section 6321 at the time of tax lien filing and (to the extent that the acquisition is directly traceable to the disbursements referred to in subparagraph (A)) property acquired by the taxpayer after tax lien filing. (C) Special rules for surety agreements Where the obligatory disbursement agreement is an agreement ensuring the performance of a contract between the taxpayer and another person - (i) the term "qualified property" shall be treated as also including the proceeds of the contract the performance of which was ensured, and (ii) if the contract the performance of which was ensured was a contract to construct or improve real property, to produce goods, or to furnish services, the term "qualified property" shall be treated as also including any tangible personal property used by the taxpayer in the performance of such ensured contract. (d) 45-day period for making disbursements Even though notice of a lien imposed by section 6321 has been filed, such lien shall not be valid with respect to a security interest which came into existence after tax lien filing by reason of disbursements made before the 46th day after the date of tax lien filing, or (if earlier) before the person making such disbursements had actual notice or knowledge of tax lien filing, but only if such security interest - (1) is in property (A) subject, at the time of tax lien filing, to the lien imposed by section 6321, and (B) covered by the terms of a written agreement entered into before tax lien filing, and (2) is protected under local law against a judgment lien arising, as of the time of tax lien filing, out of an unsecured obligation. (e) Priority of interest and expenses If the lien imposed by section 6321 is not valid as against a lien or security interest, the priority of such lien or security interest shall extend to - (1) any interest or carrying charges upon the obligation secured, (2) the reasonable charges and expenses of an indenture trustee or agent holding the security interest for the benefit of the holder of the security interest, (3) the reasonable expenses, including reasonable compensation for attorneys, actually incurred in collecting or enforcing the obligation secured, (4) the reasonable costs of insuring, preserving, or repairing the property to which the lien or security interest relates, (5) the reasonable costs of insuring payment of the obligation secured, and (6) amounts paid to satisfy any lien on the property to which the lien or security interest relates, but only if the lien so satisfied is entitled to priority over the lien imposed by section 6321, to the extent that, under local law, any such item has the same priority as the lien or security interest to which it relates. (f) Place for filing notice; form (1) Place for filing The notice referred to in subsection (a) shall be filed - (A) Under State laws (i) Real property In the case of real property, in one office within the State (or the county, or other governmental subdivision), as designated by the laws of such State, in which the property subject to the lien is situated; and (ii) Personal property In the case of personal property, whether tangible or intangible, in one office within the State (or the county, or other governmental subdivision), as designated by the laws of such State, in which the property subject to the lien is situated, except that State law merely conforming to or reenacting Federal law establishing a national filing system does not constitute a second office for filing as designated by the laws of such State; or (B) With clerk of district court In the office of the clerk of the United States district court for the judicial district in which the property subject to the lien is situated, whenever the State has not by law designated one office which meets the requirements of subparagraph (A); or (C) With Recorder of Deeds of the District of Columbia In the office of the Recorder of Deeds of the District of Columbia, if the property subject to the lien is situated in the District of Columbia. (2) Situs of property subject to lien For purposes of paragraphs (1) and (4), property shall be deemed to be situated - (A) Real property In the case of real property, at its physical location; or (B) Personal property In the case of personal property, whether tangible or intangible, at the residence of the taxpayer at the time the notice of lien is filed. For purposes of paragraph (2)(B), the residence of a corporation or partnership shall be deemed to be the place at which the principal executive office of the business is located, and the residence of a taxpayer whose residence is without the United States shall be deemed to be in the District of Columbia. (3) Form The form and content of the notice referred to in subsection (a) shall be prescribed by the Secretary. Such notice shall be valid notwithstanding any other provision of law regarding the form or content of a notice of lien. (4) Indexing required with respect to certain real property In the case of real property, if - (A) under the laws of the State in which the real property is located, a deed is not valid as against a purchaser of the property who (at the time of purchase) does not have actual notice or knowledge of the existence of such deed unless the fact of filing of such deed has been entered and recorded in a public index at the place of filing in such a manner that a reasonable inspection of the index will reveal the existence of the deed, and (B) there is maintained (at the applicable office under paragraph (1)) an adequate system for the public indexing of Federal tax liens, then the notice of lien referred to in subsection (a) shall not be treated as meeting the filing requirements under paragraph (1) unless the fact of filing is entered and recorded in the index referred to in subparagraph (B) in such a manner that a reasonable inspection of the index will reveal the existence of the lien. (5) National filing systems The filing of a notice of lien shall be governed solely by this title and shall not be subject to any other Federal law establishing a place or places for the filing of liens or encumbrances under a national filing system. (g) Refiling of notice For purposes of this section - (1) General rule Unless notice of lien is refiled in the manner prescribed in paragraph (2) during the required refiling period, such notice of lien shall be treated as filed on the date on which it is filed (in accordance with subsection (f)) after the expiration of such refiling period. (2) Place for filing A notice of lien refiled during the required refiling period shall be effective only - (A) if - (i) such notice of lien is refiled in the office in which the prior notice of lien was filed, and (ii) in the case of real property, the fact of refiling is entered and recorded in an index to the extent required by subsection (f)(4); and (B) in any case in which, 90 days or more prior to the date of a refiling of notice of lien under subparagraph (A), the Secretary received written information (in the manner prescribed in regulations issued by the Secretary) concerning a change in the taxpayer's residence, if a notice of such lien is also filed in accordance with subsection (f) in the State in which such residence is located. (3) Required refiling period In the case of any notice of lien, the term "required refiling period" means - (A) the one-year period ending 30 days after the expiration of 10 years after the date of the assessment of the tax, and (B) the one-year period ending with the expiration of 10 years after the close of the preceding required refiling period for such notice of lien. (4) Transitional rule Notwithstanding paragraph (3), if the assessment of the tax was made before January 1, 1962, the first required refiling period shall be the calendar year 1967. (h) Definitions For purposes of this section and section 6324 - (1) Security interest The term "security interest" means any interest in property acquired by contract for the purpose of securing payment or performance of an obligation or indemnifying against loss or liability. A security interest exists at any time (A) if, at such time, the property is in existence and the interest has become protected under local law against a subsequent judgment lien arising out of an unsecured obligation, and (B) to the extent that, at such time, the holder has parted with money or money's worth. (2) Mechanic's lienor The term "mechanic's lienor" means any person who under local law has a lien on real property (or on the proceeds of a contract relating to real property) for services, labor, or materials furnished in connection with the construction or improvement of such property. For purposes of the preceding sentence, a person has a lien on the earliest date such lien becomes valid under local law against subsequent purchasers without actual notice, but not before he begins to furnish the services, labor, or materials. (3) Motor vehicle The term "motor vehicle" means a self-propelled vehicle which is registered for highway use under the laws of any State or foreign country. (4) Security The term "security" means any bond, debenture, note, or certificate or other evidence of indebtedness, issued by a corporation or a government or political subdivision thereof, with interest coupons or in registered form, share of stock, voting trust certificate, or any certificate of interest or participation in, certificate of deposit or receipt for, temporary or interim certificate for, or warrant or right to subscribe to or purchase, any of the foregoing; negotiable instrument; or money. (5) Tax lien filing The term "tax lien filing" means the filing of notice (referred to in subsection (a)) of the lien imposed by section 6321. (6) Purchaser The term "purchaser" means a person who, for adequate and full consideration in money or money's worth, acquires an interest (other than a lien or security interest) in property which is valid under local law against subsequent purchasers without actual notice. In applying the preceding sentence for purposes of subsection (a) of this section, and for purposes of section 6324 - (A) a lease of property, (B) a written executory contract to purchase or lease property, (C) an option to purchase or lease property or any interest therein, or (D) an option to renew or extend a lease of property, which is not a lien or security interest shall be treated as an interest in property. (i) Special rules (1) Actual notice or knowledge For purposes of this subchapter, an organization shall be deemed for purposes of a particular transaction to have actual notice or knowledge of any fact from the time such fact is brought to the attention of the individual conducting such transaction, and in any event from the time such fact would have been brought to such individual's attention if the organization had exercised due diligence. An organization exercises due diligence if it maintains reasonable routines for communicating significant information to the person conducting the transaction and there is reasonable compliance with the routine. Due diligence does not require an individual acting for the organization to communicate information unless such communication is part of his regular duties or unless he has reason to know of the transaction and that the transaction would be materially affected by the information. (2) Subrogation Where, under local law, one person is subrogated to the rights of another with respect to a lien or interest, such person shall be subrogated to such rights for purposes of any lien imposed by section 6321 or 6324. (3) Forfeitures For purposes of this subchapter, a forfeiture under local law of property seized by a law enforcement agency of a State, county, or other local governmental subdivision shall relate back to the time of seizure, except that this paragraph shall not apply to the extent that under local law the holder of an intervening claim or interest would have priority over the interest of the State, county, or other local governmental subdivision in the property. (4) Cost-of-living adjustment In the case of notices of liens imposed by section 6321 which are filed in any calendar year after 1998, each of the dollar amounts under paragraph (4) or (7) of subsection (b) shall be increased by an amount equal to - (A) such dollar amount, multiplied by (B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year, determined by substituting "calendar year 1996" for "calendar year 1992" in subparagraph (B) thereof. If any amount as adjusted under the preceding sentence is not a multiple of $10, such amount shall be rounded to the nearest multiple of $10. (j) Withdrawal of notice in certain circumstances (1) In general The Secretary may withdraw a notice of a lien filed under this section and this chapter shall be applied as if the withdrawn notice had not been filed, if the Secretary determines that - (A) the filing of such notice was premature or otherwise not in accordance with administrative procedures of the Secretary, (B) the taxpayer has entered into an agreement under section 6159 to satisfy the tax liability for which the lien was imposed by means of installment payments, unless such agreement provides otherwise, (C) the withdrawal of such notice will facilitate the collection of the tax liability, or (D) with the consent of the taxpayer or the National Taxpayer Advocate, the withdrawal of such notice would be in the best interests of the taxpayer (as determined by the National Taxpayer Advocate) and the United States. Any such withdrawal shall be made by filing notice at the same office as the withdrawn notice. A copy of such notice of withdrawal shall be provided to the taxpayer. (2) Notice to credit agencies, etc. Upon written request by the taxpayer with respect to whom a notice of a lien was withdrawn under paragraph (1), the Secretary shall promptly make reasonable efforts to notify credit reporting agencies, and any financial institution or creditor whose name and address is specified in such request, of the withdrawal of such notice. Any such request shall be in such form as the Secretary may prescribe. -SOURCE- (Aug. 16, 1954, ch. 736, 68A Stat. 779; Pub. L. 88-272, title II, Sec. 236(a), (c)(1), Feb. 26, 1964, 78 Stat. 127, 128; Pub. L. 89- 493, Sec. 17(a), July 5, 1966, 80 Stat. 266; Pub. L. 89-719, title I, Sec. 101(a), Nov. 2, 1966, 80 Stat. 1125; Pub. L. 94-455, title XII, Sec. 1202(h)(2), title XIX, Sec. 1906(b)(13)(A), title XX, Sec. 2008(c), Oct. 4, 1976, 90 Stat. 1688, 1834, 1892; Pub. L. 95- 600, title VII, Sec. 702(q)(1), (2), Nov. 6, 1978, 92 Stat. 2937, 2938; Pub. L. 99-514, title XV, Sec. 1569(a), Oct. 22, 1986, 100 Stat. 2764; Pub. L. 100-647, title I, Sec. 1015(s)(1), Nov. 10, 1988, 102 Stat. 3573; Pub. L. 101-508, title XI, Secs. 11317(b), 11704(a)(26), Nov. 5, 1990, 104 Stat. 1388-458, 1388-519; Pub. L. 104-168, title V, Sec. 501(a), July 30, 1996, 110 Stat. 1460; Pub. L. 105-206, title I, Sec. 1102(d)(1)(A), title III, Sec. 3435(a), (b), July 22, 1998, 112 Stat. 704, 760, 761.) -STATAMEND- ADJUSTMENT OF APPLICABLE DOLLAR AMOUNTS IN DETERMINING VALIDITY OF FEDERAL TAX LIENS FOR CALENDAR YEAR 2006 For adjustment of applicable dollar amounts under subsection (b)(4), (7) of this section in determining validity of certain Federal tax liens for calendar year 2006, see section 3.33 of Revenue Procedure 2005-70, set out as a note under section 1 of this title. -MISC1- AMENDMENTS 1998 - Subsec. (b)(4). Pub. L. 105-206, Sec. 3435(a)(1)(A), substituted "$1,000" for "$250". Subsec. (b)(7). Pub. L. 105-206, Sec. 3435(a)(1)(B), substituted "$5,000" for "$1,000". Subsec. (b)(10). Pub. L. 105-206, Sec. 3435(b), in heading substituted "Deposit-secured loans" for "Passbook loans", and in text struck out ", evidenced by a passbook," after "other account" and substituted period at end for "and if such institution has been continuously in possession of such passbook from the time the loan is made." Subsec. (i)(4). Pub. L. 105-206, Sec. 3435(a)(2), added par. (4). Subsec. (j)(1)(D). Pub. L. 105-206, Sec. 1102(d)(1)(A), substituted "National Taxpayer Advocate" for "Taxpayer Advocate" in two places. 1996 - Subsec. (j). Pub. L. 104-168 added subsec. (j). 1990 - Subsec. (a). Pub. L. 101-508, Sec. 11704(a)(26), substituted "Purchasers" for "Purchases" in heading. Subsec. (g)(3). Pub. L. 101-508, Sec. 11317(b), substituted "10 years" for "6 years" wherever appearing. 1988 - Subsec. (f)(1)(A)(ii). Pub. L. 100-647, Sec. 1015(s)(1)(A), inserted exception that State law merely conforming to or reenacting Federal law establishing a national filing system does not constitute a second office for filing as designated by the laws of such State. Subsec. (f)(5). Pub. L. 100-647, Sec. 1015(s)(1)(B), added par. (5). 1986 - Subsec. (i)(3). Pub. L. 99-514 added par. (3). 1978 - Subsec. (f)(4). Pub. L. 95-600, Sec. 702(q)(1), in heading substituted "Indexing required with respect to certain real property" for "Index" and in text inserted provisions relating to the validity of a deed, under the laws of the State in which the real property is located, as against a purchaser who does not have actual notice or knowledge of the existence of such deed and provisions relating to the maintenance of an adequate system for the public indexing of Federal tax liens. Subsec. (g)(2)(A). Pub. L. 95-600, Sec. 702(q)(2), inserted reference to real property. 1976 - Subsecs. (a), (b). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck out "or his delegate" after "Secretary" wherever appearing. Subsec. (f)(2). Pub. L. 94-455, Sec. 2008(c)(1)(B), inserted introductory reference to par. (4). Subsec. (f)(3). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck out "or his delegate" after "Secretary". Subsec. (f)(4). Pub. L. 94-455, Sec. 2008(c)(1)(A), added par. (4). Subsec. (g)(2)(A), (B). Pub. L. 94-455, Secs. 1906(b)(13)(A), 2008(c)(2), required the fact of refiling be entered and recorded in an index in accordance with subsec. (f)(4), and struck out "or his delegate" after "Secretary" wherever appearing. Subsec. (i)(3). Pub. L. 94-455, Sec. 1202(h)(2), struck out par. (3) which related to a special rule respecting disclosure of amount of outstanding lien. 1966 - Subsec. (a). Pub. L. 89-719 redesignated as subsec. (a) that part of former subsec. (a) which preceded pars. (1) to (3) thereof, and, in subsec. (a) as so redesignated, substituted holder of a security interest, mechanic's lienor, and judgment lien creditor for mortgagee, pledgee, and judgment creditor, struck out reference to an exception provided in subsecs. (c) and (d), and inserted reference to requirements of subsec. (f). Subsec. (a)(3). Pub. L. 89-493 substituted the Recorder of Deeds of the District of Columbia for the clerk of the United States District Court for the District of Columbia. Subsec. (b)(1). Pub. L. 89-719 redesignated provisions of subsec. (c)(1) as subsec. (b)(1) and substituted "holder of a security interest" for "mortgagee and pledgee" and purchaser of such security interest for purchaser of such security for any adequate and full consideration in money or money's worth. Subsec. (b)(2). Pub. L. 89-719 redesignated provisions of subsec. (d)(1) as subsec. (b)(2) and substituted purchaser of such motor vehicle for purchaser of such motor vehicle for an adequate and full consideration in money or money's worth and substituted actual notice or knowledge for notice or knowledge. Subsec. (b)(3) to (10). Pub. L. 89-719 added pars. (3) to (10). Subsecs. (c) to (e). Pub. L. 89-719 added subsecs. (c) to (e). Subsec. (f)(1). Pub. L. 89-719 redesignated provisions of former subsec. (a)(1) to (3) as subsec. (f)(1). Subsec. (f)(2). Pub. L. 89-719 added par. (2). Subsec. (f)(3). Pub. L. 89-719 redesignated provisions of former subsec. (b) as subsec. (f)(3) and substituted provisions that the form and content of the notice be prescribed by the Secretary or his delegate for provisions limiting the effectiveness of the notice to situations in which the notice is in such form as would be valid if filed with the clerk of the United States district court when state or territory law fails to designate an office for the filing of notice. Subsec. (g). Pub. L. 89-719 added subsec. (g). Subsec. (h)(1), (2). Pub. L. 89-719 added pars. (1) and (2). Subsec. (h)(3). Pub. L. 89-719 redesignated provisions of former subsec. (d)(2) as subsec. (h)(3). Subsec. (h)(4). Pub. L. 89-719 redesignated provisions of former subsec. (c)(2) as subsec. (h)(4). Subsec. (h)(5), (6). Pub. L. 89-719 added pars. (5), (6). Subsec. (i)(1), (2). Pub. L. 89-719 added pars. (1), (2). Subsec. (i)(3). Pub. L. 89-719 redesignated provisions of former subsec. (e) as subsec. (i)(3) and substituted "regulations" for "rules and relations". 1964 - Subsec. (a). Pub. L. 88-272, Sec. 236(c)(1), substituted "subsections (c) and (d)" for "subsection (c)". Subsecs. (d), (e). Pub. L. 88-272, Sec. 236(a), added subsec. (d) and redesignated former subsec. (d) as (e). EFFECTIVE DATE OF 1998 AMENDMENT Amendment by section 1102(d)(1)(A) of Pub. L. 105-206 effective July 22, 1998, see section 1102(f)(1) of Pub. L. 105-206, set out as a note under section 7803 of this title. Pub. L. 105-206, title III, Sec. 3435(c), July 22, 1998, 112 Stat. 761, provided that: "The amendments made by this section [amending this section] shall take effect on the date of the enactment of this Act [July 22, 1998]." EFFECTIVE DATE OF 1996 AMENDMENT Section 501(d) of Pub. L. 104-168 provided that: "The amendments made by this section [amending this section and section 6343 of this title] shall take effect on the date of the enactment of this Act [July 30, 1996]." EFFECTIVE DATE OF 1990 AMENDMENT Section 11317(c) of Pub. L. 101-508 provided that: "The amendments made by this section [amending this section and section 6502 of this title] shall apply to - "(1) taxes assessed after the date of the enactment of this Act [Nov. 5, 1990], and "(2) taxes assessed on or before such date if the period specified in section 6502 of the Internal Revenue Code of 1986 (determined without regard to the amendments made by subsection (a) [amending section 6502 of this title]) for collection of such taxes has not expired as of such date." EFFECTIVE DATE OF 1988 AMENDMENT Section 1015(s)(2) of Pub. L. 100-647 provided that: "The amendments made by this subsection [amending this section] shall take effect on the date of the enactment of this Act [Nov. 10, 1988]." EFFECTIVE DATE OF 1986 AMENDMENT Section 1569(b) of Pub. L. 99-514 provided that: "The amendment made by this section [amending this section] shall take effect on the date of the enactment of this Act [Oct. 22, 1986]." EFFECTIVE DATE OF 1978 AMENDMENT Section 702(q)(3) of Pub. L. 95-600, as amended by Pub. L. 99- 514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that: "(A) The amendments made by this subsection [amending this section] shall apply with respect to liens, other security interests, and other interests in real property acquired after the date of the enactment of this Act [Nov. 6, 1978]. "(B) If, after the date of the enactment of this Act, there is a change in the application (or nonapplication) of section 6323(f)(4) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] (as amended by paragraph (1)) with respect to any filing jurisdiction, such change shall apply only with respect to liens, other security interests, and other interests in real property acquired after the date of such change." EFFECTIVE DATE OF 1976 AMENDMENT Amendment by section 1202(h)(2) of Pub. L. 94-455 effective Jan. 1, 1977, see section 1202(i) of Pub. L. 94-455, set out as a note under section 6103 of this title. Section 2008(d)(3) of Pub. L. 94-455 provided that: "The amendment made by subsection (c) [amending this section] shall take effect - "(A) in the case of liens filed before the date of the enactment of this Act [Oct. 4, 1976], on the 270th day after such date of enactment, or "(B) in the case of liens filed on or after the date of enactment of this Act [Oct. 4, 1976], on the 120th day after such date of enactment." EFFECTIVE DATE OF 1966 AMENDMENTS Section 114(a)-(c) of title I of Pub. L. 89-719 provided that: "(a) General Rule. - Except as otherwise provided, the amendments made by this title [enacting sections 3505, 7425, 7426, and 7810 of this title, amending this section, sections 545, 6322, 6324, 6325, 6331, 6332, 6334, 6335, 6337, 6338, 6339, 6342, 6343, 6502, 6503, 6532, 7402, 7403, 7421, 7424, 7505, 7506, and 7809 of this title, and section 270a of former Title 40, Public Buildings, Property, and Works, redesignating former section 7425 as 7427 of this title, and enacting provisions set out as notes under this section and section 7424 of this title] shall apply after the date of enactment of this Act [Nov. 2, 1966], regardless of when a lien or a title of the United States arose or when the lien or interest of any other person was acquired. "(b) Exceptions. - The amendments made by this title shall not apply in any case - "(1) in which a lien or a title derived from enforcement of a lien held by the United States has been enforced by a civil action or suit which has become final by judgment, sale, or agreement before the date of enactment of this Act; or "(2) in which such amendments would - "(A) impair a priority enjoyed by any person (other than the United States) holding a lien or interest prior to the date of enactment of this Act; "(B) operate to increase the liability of any such person; or "(C) shorten the time for bringing suit with respect to transactions occurring before the date of enactment of this Act. "(c) Liability for Withheld Taxes. - "(1) The amendments made by section 105(a) (relating to effect on third parties) [adding section 3505 of this title] shall apply only with respect to wages paid on or after January 1, 1967. "(2) The amendments made by section 105(b) (relating to performance bonds of contractors for public buildings or works) [amending section 270a of former Title 40] shall apply to contracts entered into pursuant to invitations for bids issued after June 30, 1967." Section 21 of Pub. L. 89-493 provided that: "This Act [amending this section] shall take effect on the first day of the first month which is at least ninety days after the date of approval of this Act [July 5, 1966]." EFFECTIVE DATE OF 1964 AMENDMENT Section 236(d) of Pub. L. 88-272 provided that: "The amendments made by this section [amending this section and section 6324 of this title] shall apply only with respect to purchases made after the date of the enactment of this Act [Feb. 26, 1964.]" -End- -CITE- 26 USC Sec. 6324 01/02/2006 -EXPCITE- TITLE 26 - INTERNAL REVENUE CODE Subtitle F - Procedure and Administration CHAPTER 64 - COLLECTION Subchapter C - Lien for Taxes PART II - LIENS -HEAD- Sec. 6324. Special liens for estate and gift taxes -STATUTE- (a) Liens for estate tax Except as otherwise provided in subsection (c) - (1) Upon gross estate Unless the estate tax imposed by chapter 11 is sooner paid in full, or becomes unenforceable by reason of lapse of time, it shall be a lien upon the gross estate of the decedent for 10 years from the date of death, except that such part of the gross estate as is used for the payment of charges against the estate and expenses of its administration, allowed by any court having jurisdiction thereof, shall be divested of such lien. (2) Liability of transferees and others If the estate tax imposed by chapter 11 is not paid when due, then the spouse, transferee, trustee (except the trustee of an employees' trust which meets the requirements of section 401(a)), surviving tenant, person in possession of the property by reason of the exercise, nonexercise, or release of a power of appointment, or beneficiary, who receives, or has on the date of the decedent's death, property included in the gross estate under sections 2034 to 2042, inclusive, to the extent of the value, at the time of the decedent's death, of such property, shall be personally liable for such tax. Any part of such property transferred by (or transferred by a transferee of) such spouse, transferee, trustee, surviving tenant, person in possession, or beneficiary, to a purchaser or holder of a security interest shall be divested of the lien provided in paragraph (1) and a like lien shall then attach to all the property of such spouse, transferee, trustee, surviving tenant, person in possession, or beneficiary, or transferee of any such person, except any part transferred to a purchaser or a holder of a security interest. (3) Continuance after discharge of fiduciary The provisions of section 2204 (relating to discharge of fiduciary from personal liability) shall not operate as a release of any part of the gross estate from the lien for any deficiency that may thereafter be determined to be due, unless such part of the gross estate (or any interest therein) has been transferred to a purchaser or a holder of a security interest, in which case such part (or such interest) shall not be subject to a lien or to any claim or demand for any such deficiency, but the lien shall attach to the consideration received from such purchaser or holder of a security interest, by the heirs, legatees, devisees, or distributees. (b) Lien for gift tax Except as otherwise provided in subsection (c), unless the gift tax imposed by chapter 12 is sooner paid in full or becomes unenforceable by reason of lapse of time, such tax shall be a lien upon all gifts made during the period for which the return was filed, for 10 years from the date the gifts are made. If the tax is not paid when due, the donee of any gift shall be personally liable for such tax to the extent of the value of such gift. Any part of the property comprised in the gift transferred by the donee (or by a transferee of the donee) to a purchaser or holder of a security interest shall be divested of the lien imposed by this subsection and such lien, to the extent of the value of such gift, shall attach to all the property (including after-acquired property) of the donee (or the transferee) except any part transferred to a purchaser or holder of a security interest. (c) Exceptions (1) The lien imposed by subsection (a) or (b) shall not be valid as against a mechanic's lienor and, subject to the conditions provided by section 6323(b) (relating to protection for certain interests even though notice filed), shall not be valid with respect to any lien or interest described in section 6323(b). (2) If a lien imposed by subsection (a) or (b) is not valid as against a lien or security interest, the priority of such lien or security interest shall extend to any item described in section 6323(e) (relating to priority of interest and expenses) to the extent that, under local law, such item has the same priority as the lien or security interest to which it relates. -SOURCE- (Aug. 16, 1954, ch. 736, 68A Stat. 780; Pub. L. 88-272, title II, Sec. 236(b), (c)(2), Feb. 26, 1964, 78 Stat. 127, 128; Pub. L. 89- 719, title I, Sec. 102, Nov. 2, 1966, 80 Stat. 1132; Pub. L. 91- 614, title I, Secs. 101(d)(2), 102(d)(7), Dec. 31, 1970, 84 Stat. 1837, 1842.) -MISC1- AMENDMENTS 1970 - Subsec. (a)(3). Pub. L. 91-614, Sec. 101(d)(2), substituted "fiduciary" for "executor" in heading and text. Subsec. (b). Pub. L. 91-614, Sec. 102(d)(7), substituted "period for which the return was filed" for "calendar year". 1966 - Subsec. (a)(1). Pub. L. 89-719 inserted ", or becomes unenforceable by reason of lapse of time," after "sooner paid in full" and substituted "10 years from the date of death" for "10 years upon the gross estate of the decedent". Subsec. (a)(2). Pub. L. 89-719 substituted "person in possession, or beneficiary, to a purchaser or holder of a security interest" for "person in possession of property by reason of the exercise, nonexercise, or release of a power of appointment, or beneficiary, to a bona fide purchaser, mortgagee, or pledgee, for an adequate and full consideration in money and money's worth" and "except any part transferred to a purchaser or a holder of a security interest" for "except any part transferred to a bona fide purchaser, mortgagee, or pledgee for an adequate and full consideration in money or money's worth". Subsec. (a)(3). Pub. L. 89-719 substituted "purchaser or a holder of a security interest" for "bona fide purchaser, mortgagee, or pledgee for an adequate and full consideration in money or money's worth" and "purchaser or holder of a security interest" for "purchaser, mortgagee, or pledgee". Subsec. (b). Pub. L. 89-719 substituted reference to exception provided in subsec. (c) for reference to exceptions provided in subsecs. (c) and (d), inserted reference to tax becoming unenforceable by reason of lapse of time, and substituted "purchaser or holder of a security interest" for "bona-fide purchaser, mortgagee, or pledgee, for an adequate and full consideration in money or money's worth". Subsec. (c). Pub. L. 89-719 redesignated as par. (1) provisions formerly constituting subsec. (c), substituted "valid as against a mechanic's lienor and, subject to the conditions provided by section 6323(b) (relating to protection for certain interests even though noticed filed), shall not be valid with respect to any lien or interest described in section 6323(b)" for "valid with respect to a security, as defined in section 6323(c)(2), as against any mortgagee, pledgee, or purchaser of any such security, for an adequate and full consideration in money or money's worth, if at the time of such mortgage, pledge, or purchase such mortgagee, pledgee, or purchaser is without notice or knowledge of the existence of such lien", and added par. (2). Subsec. (d). Pub. L. 89-719 struck out subsec. (d) dealing with exceptions in the case of motor vehicles. See subsec. (c) above and reference therein to section 6323(b). 1964 - Subsecs. (a), (b). Pub. L. 88-272, Sec. 236(c)(2), inserted "and subsection (d) (relating to purchases of motor vehicles)". Subsec. (d). Pub. L. 88-272, Sec. 236(b), added subsec. (d). EFFECTIVE DATE OF 1970 AMENDMENT