Subtitle F—Procedure and Administration
Editorial Notes
Amendments
1980—
1 Section numbers editorially supplied.
CHAPTER 61 —INFORMATION AND RETURNS
1 Section numbers editorially supplied.
Subchapter A—Returns and Records
Editorial Notes
Amendments
1966—
PART I—RECORDS, STATEMENTS, AND SPECIAL RETURNS
§6001. Notice or regulations requiring records, statements, and special returns
Every person liable for any tax imposed by this title, or for the collection thereof, shall keep such records, render such statements, make such returns, and comply with such rules and regulations as the Secretary may from time to time prescribe. Whenever in the judgment of the Secretary it is necessary, he may require any person, by notice served upon such person or by regulations, to make such returns, render such statements, or keep such records, as the Secretary deems sufficient to show whether or not such person is liable for tax under this title. The only records which an employer shall be required to keep under this section in connection with charged tips shall be charge receipts, records necessary to comply with section 6053(c), and copies of statements furnished by employees under section 6053(a).
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
1982—
1978—
1976—
Statutory Notes and Related Subsidiaries
Effective Date of 1982 Amendment
Amendment by
Effective Date of 1978 Amendment
PART II—TAX RETURNS OR STATEMENTS
Editorial Notes
Amendments
2010—
2001—
Subpart A—General Requirement
§6011. General requirement of return, statement, or list
(a) General rule
When required by regulations prescribed by the Secretary any person made liable for any tax imposed by this title, or with respect to the collection thereof, shall make a return or statement according to the forms and regulations prescribed by the Secretary. Every person required to make a return or statement shall include therein the information required by such forms or regulations.
(b) Identification of taxpayer
The Secretary is authorized to require such information with respect to persons subject to the taxes imposed by
(c) Returns, etc., of DISCS and former DISCS and former FSC's
(1) Records and information
A DISC, former DISC, or former FSC (as defined in section 922 as in effect before its repeal by the FSC Repeal and Extraterritorial Income Exclusion Act of 2000) shall for the taxable year—
(A) furnish such information to persons who were shareholders at any time during such taxable year, and to the Secretary, and
(B) keep such records, as may be required by regulations prescribed by the Secretary.
(2) Returns
A DISC shall file for the taxable year such returns as may be prescribed by the Secretary by forms or regulations.
(d) Authority to require information concerning section 912 allowances
The Secretary may by regulations require any individual who receives allowances which are excluded from gross income under section 912 for any taxable year to include on his return of the taxes imposed by subtitle A for such taxable year such information with respect to the amount and type of such allowances as the Secretary determines to be appropriate.
(e) Regulations requiring returns on magnetic media, etc.
(1) In general
The Secretary shall prescribe regulations providing standards for determining which returns must be filed on magnetic media or in other machine-readable form. Except as provided in paragraph (3), the Secretary may not require returns of any tax imposed by subtitle A on individuals, estates, and trusts to be other than on paper forms supplied by the Secretary.
(2) Requirements of regulations
In prescribing regulations under paragraph (1), the Secretary—
(A) shall not require any person to file returns on magnetic media unless such person is required to file at least the applicable number of returns during the calendar year, and
(B) shall take into account (among other relevant factors) the ability of the taxpayer to comply at reasonable cost with the requirements of such regulations.
(3) Special rule for tax return preparers
(A) In general
The Secretary shall require that any individual income tax return prepared by a tax return preparer be filed on magnetic media if—
(i) such return is filed by such tax return preparer, and
(ii) such tax return preparer is a specified tax return preparer for the calendar year during which such return is filed.
(B) Specified tax return preparer
For purposes of this paragraph, the term "specified tax return preparer" means, with respect to any calendar year, any tax return preparer unless such preparer reasonably expects to file 10 or fewer individual income tax returns during such calendar year.
(C) Individual income tax return
For purposes of this paragraph, the term "individual income tax return" means any return of the tax imposed by subtitle A on individuals, estates, or trusts.
(D) Exception for certain preparers located in areas without internet access
The Secretary may waive the requirement of subparagraph (A) if the Secretary determines, on the basis of an application by the tax return preparer, that the preparer cannot meet such requirement by reason of being located in a geographic area which does not have access to internet service (other than dial-up or satellite service).
(4) Special rule for returns filed by financial institutions with respect to withholding on foreign transfers
The numerical limitation under paragraph (2)(A) shall not apply to any return filed by a financial institution (as defined in section 1471(d)(5)) with respect to tax for which such institution is made liable under section 1461 or 1474(a).
(5) Applicable number
(A) In general
For purposes of paragraph (2)(A), the applicable number shall be—
(i) except as provided in subparagraph (B), in the case of calendar years before 2021, 250,
(ii) in the case of calendar year 2021, 100, and
(iii) in the case of calendar years after 2021, 10.
(B) Special rule for partnerships for 2018, 2019, 2020, and 2021
In the case of a partnership, for any calendar year before 2022, the applicable number shall be—
(i) in the case of calendar year 2018, 200,
(ii) in the case of calendar year 2019, 150,
(iii) in the case of calendar year 2020, 100, and
(iv) in the case of calendar year 2021, 50.
(6) 1 Partnerships required to file on magnetic media
Notwithstanding paragraph (2)(A), the Secretary shall require partnerships having more than 100 partners to file returns on magnetic media.
(6) 1 Application of numerical limitation to returns relating to deferred compensation plans
For purposes of applying the numerical limitation under paragraph (2)(A) to any return required under section 6058, information regarding each plan for which information is provided on such return shall be treated as a separate return.
(f) Promotion of electronic filing
(1) In general
The Secretary is authorized to promote the benefits of and encourage the use of electronic tax administration programs, as they become available, through the use of mass communications and other means.
(2) Incentives
The Secretary may implement procedures to provide for the payment of appropriate incentives for electronically filed returns.
(g) Disclosure of reportable transaction to tax-exempt entity
Any taxable party to a prohibited tax shelter transaction (as defined in section 4965(e)(1)) shall by statement disclose to any tax-exempt entity (as defined in section 4965(c)) which is a party to such transaction that such transaction is such a prohibited tax shelter transaction.
(h) Mandatory e-filing of unrelated business income tax return
Any organization required to file an annual return under this section which relates to any tax imposed by section 511 shall file such return in electronic form.
(i) Income, estate, and gift taxes
For requirement that returns of income, estate, and gift taxes be made whether or not there is tax liability, see subparts B and C.
(Aug. 16, 1954, ch. 736,
Editorial Notes
References in Text
The FSC Repeal and Extraterritorial Income Exclusion Act of 2000, referred to in subsec. (c)(1), is
Amendments
2019—Subsec. (e)(2)(A).
Subsec. (e)(3)(D).
Subsec. (e)(5).
Subsec. (e)(6).
Subsecs. (h), (i).
2018—Subsec. (e)(2).
Subsec. (e)(5).
2014—Subsec. (e)(3)(A).
2010—Subsec. (e)(4).
2009—Subsec. (e)(1).
Subsec. (e)(3).
2007—Subsec. (c).
Subsec. (c)(1).
2006—Subsecs. (g), (h).
1998—Subsecs. (f), (g).
1997—Subsec. (e)(2).
1989—Subsec. (e).
1988—Subsec. (a).
1986—Subsec. (f).
1984—Subsec. (c).
1983—Subsec. (e).
1982—Subsecs. (e), (f).
1978—Subsecs. (d), (e).
1976—Subsecs. (a), (b).
Subsec. (c).
Subsec. (d).
Subsecs. (e), (f).
1971—Subsecs. (e), (f).
1969—Subsec. (d)(1)(B).
Subsec. (d)(3).
1967—Subsec. (d)(1).
1965—Subsec. (c).
1964—Subsecs. (d), (e).
1958—Subsecs. (c), (d).
Statutory Notes and Related Subsidiaries
Effective Date of 2019 Amendment
Amendment by section 3101(b)(2) of
Effective Date of 2018 Amendment
Effective Date of 2010 Amendment
Effective Date of 2009 Amendment
Effective Date of 2006 Amendment
Amendment by
Effective Date of 1997 Amendment
Effective Date of 1989 Amendment
Effective Date of 1988 Amendment
Effective Date of 1984 Amendment
Amendment by
Effective Date of 1983 Amendment
Amendment by
Effective Date of 1978 Amendment; Election of Prior Law
Amendment by
Effective Date of 1976 Amendment
Amendment by section 1904(b)(10)(A)(ii) of
Effective Date of 1971 Amendment
Amendment by
Effective Date of 1969 Amendment
Effective Date of 1967 Amendment
Effective Date of 1965 Amendment
Amendment by
Effective Date of 1958 Amendment
Amendment by
Short Title of 1967 Amendment
Internet Platform for Form 1099 Filings
"(a)
"(1) prepare and file Forms 1099;
"(2) prepare Forms 1099 for distribution to recipients other than the Internal Revenue Service; and
"(3) maintain a record of completed, filed, and distributed Forms 1099.
"(b)
"(1) are a supplement to, and not a replacement for, other services provided by the Internal Revenue Service to taxpayers; and
"(2) comply with applicable security standards and guidelines."
Authentication of Users of Electronic Services Accounts
Electronic Filing of Tax and Information Returns
"(a)
"(1) paperless filing should be the preferred and most convenient means of filing Federal tax and information returns;
"(2) it should be the goal of the Internal Revenue Service to have at least 80 percent of all such returns filed electronically by the year 2007; and
"(3) the Internal Revenue Service should cooperate with and encourage the private sector by encouraging competition to increase electronic filing of such returns.
"(b)
"(1)
"(2)
"(d)
"(1) the progress of the Internal Revenue Service in meeting the goal of receiving electronically 80 percent of tax and information returns by 2007;
"(2) the status of the plan required by subsection (b) [set out as a note above];
"(3) the legislative changes necessary to assist the Internal Revenue Service in meeting such goal; and
"(4) the effects on small businesses and the self-employed of electronically filing tax and information returns."
Plan Amendments Not Required Until January 1, 1989
For provisions directing that if any amendments made by subtitle A or subtitle C of title XI [§§1101–1147 and 1171–1177] or title XVIII [§§1800–1899A] of
Study of Wage Returns on Magnetic Tape; Report to Congress Not Later Than July 1, 1984
Report on Forms
Study of Simplification of Tax Returns
First Return Period for Interest Equalization Tax Returns
1 So in original. There are two pars. designated (6).
Subpart B—Income Tax Returns
Editorial Notes
Amendments
1998—
1989—
1984—
1972—
1968—
§6012. Persons required to make returns of income
(a) General rule
Returns with respect to income taxes under subtitle A shall be made by the following:
(1)(A) Every individual having for the taxable year gross income which equals or exceeds the exemption amount, except that a return shall not be required of an individual—
(i) who is not married (determined by applying section 7703), is not a surviving spouse (as defined in section 2(a)), is not a head of a household (as defined in section 2(b)), and for the taxable year has gross income of less than the sum of the exemption amount plus the basic standard deduction applicable to such an individual,
(ii) who is a head of a household (as so defined) and for the taxable year has gross income of less than the sum of the exemption amount plus the basic standard deduction applicable to such an individual,
(iii) who is a surviving spouse (as so defined) and for the taxable year has gross income of less than the sum of the exemption amount plus the basic standard deduction applicable to such an individual, or
(iv) who is entitled to make a joint return and whose gross income, when combined with the gross income of his spouse, is, for the taxable year, less than the sum of twice the exemption amount plus the basic standard deduction applicable to a joint return, but only if such individual and his spouse, at the close of the taxable year, had the same household as their home.
Clause (iv) shall not apply if for the taxable year such spouse makes a separate return or any other taxpayer is entitled to an exemption for such spouse under section 151(c).
(B) The amount specified in clause (i), (ii), or (iii) of subparagraph (A) shall be increased by the amount of 1 additional standard deduction (within the meaning of section 63(c)(3)) in the case of an individual entitled to such deduction by reason of section 63(f)(1)(A) (relating to individuals age 65 or more), and the amount specified in clause (iv) of subparagraph (A) shall be increased by the amount of the additional standard deduction for each additional standard deduction to which the individual or his spouse is entitled by reason of section 63(f)(1).
(C) The exception under subparagraph (A) shall not apply to any individual—
(i) who is described in section 63(c)(5) and who has—
(I) income (other than earned income) in excess of the sum of the amount in effect under section 63(c)(5)(A) plus the additional standard deduction (if any) to which the individual is entitled, or
(II) total gross income in excess of the standard deduction, or
(ii) for whom the standard deduction is zero under section 63(c)(6).
(D) For purposes of this subsection—
(i) The terms "standard deduction", "basic standard deduction" and "additional standard deduction" have the respective meanings given such terms by section 63(c).
(ii) The term "exemption amount" has the meaning given such term by section 151(d). In the case of an individual described in section 151(d)(2), the exemption amount shall be zero.
(2) Every corporation subject to taxation under subtitle A;
(3) Every estate the gross income of which for the taxable year is $600 or more;
(4) Every trust having for the taxable year any taxable income, or having gross income of $600 or over, regardless of the amount of taxable income;
(5) Every estate or trust of which any beneficiary is a nonresident alien;
(6) Every political organization (within the meaning of section 527(e)(1)), and every fund treated under section 527(g) as if it constituted a political organization, which has political organization taxable income (within the meaning of section 527(c)(1)) for the taxable year;
(7) Every homeowners association (within the meaning of section 528(c)(1)) which has homeowners association taxable income (within the meaning of section 528(d)) for the taxable year; and
(8) Every estate of an individual under
except that subject to such conditions, limitations, and exceptions and under such regulations as may be prescribed by the Secretary, nonresident alien individuals subject to the tax imposed by section 871 and foreign corporations subject to the tax imposed by section 881 may be exempted from the requirement of making returns under this section.
(b) Returns made by fiduciaries and receivers
(1) Returns of decedents
If an individual is deceased, the return of such individual required under subsection (a) shall be made by his executor, administrator, or other person charged with the property of such decedent.
(2) Persons under a disability
If an individual is unable to make a return required under subsection (a), the return of such individual shall be made by a duly authorized agent, his committee, guardian, fiduciary or other person charged with the care of the person or property of such individual. The preceding sentence shall not apply in the case of a receiver appointed by authority of law in possession of only a part of the property of an individual.
(3) Receivers, trustees and assignees for corporations
In a case where a receiver, trustee in a case under
(4) Returns of estates and trusts
Returns of an estate, a trust, or an estate of an individual under
(5) Joint fiduciaries
Under such regulations as the Secretary may prescribe, a return made by one of two or more joint fiduciaries shall be sufficient compliance with the requirements of this section. A return made pursuant to this paragraph shall contain a statement that the fiduciary has sufficient knowledge of the affairs of the person for whom the return is made to enable him to make the return, and that the return is, to the best of his knowledge and belief, true and correct.
(6) IRA share of partnership income
In the case of a trust which is exempt from taxation under section 408(e), for purposes of this section, the trust's distributive share of items of gross income and gain of any partnership to which subchapter C or D of
(c) Certain income earned abroad or from sale of residence
For purposes of this section, gross income shall be computed without regard to the exclusion provided for in section 121 (relating to gain from sale of principal residence) and without regard to the exclusion provided for in section 911 (relating to citizens or residents of the United States living abroad).
(d) Tax-exempt interest required to be shown on return
Every person required to file a return under this section for the taxable year shall include on such return the amount of interest received or accrued during the taxable year which is exempt from the tax imposed by
(e) Consolidated returns
For provisions relating to consolidated returns by affiliated corporations, see
(f) Special rule for taxable years 2018 through 2025
In the case of a taxable year beginning after December 31, 2017, and before January 1, 2026, subsection (a)(1) shall not apply, and every individual who has gross income for the taxable year shall be required to make returns with respect to income taxes under subtitle A, except that a return shall not be required of—
(1) an individual who is not married (determined by applying section 7703) and who has gross income for the taxable year which does not exceed the standard deduction applicable to such individual for such taxable year under section 63, or
(2) an individual entitled to make a joint return if—
(A) the gross income of such individual, when combined with the gross income of such individual's spouse, for the taxable year does not exceed the standard deduction which would be applicable to the taxpayer for such taxable year under section 63 if such individual and such individual's spouse made a joint return,
(B) such individual and such individual's spouse have the same household as their home at the close of the taxable year,
(C) such individual's spouse does not make a separate return, and
(D) neither such individual nor such individual's spouse is an individual described in section 63(c)(5) who has income (other than earned income) in excess of the amount in effect under section 63(c)(5)(A).
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
2018—Subsec. (a)(6).
Subsec. (a)(7).
Subsec. (a)(8).
2017—Subsec. (f).
2010—Subsec. (a)(8), (9).
2002—Subsec. (a)(6).
2000—Subsec. (a)(6).
1997—Subsec. (b)(6).
Subsec. (c).
1988—Subsec. (a)(1)(C)(i).
1986—Subsec. (a)(1).
"(1)(A) Every individual having for the taxable year a gross income of the exemption amount or more, except that a return shall not be required of an individual (other than an individual described in subparagraph (C))—
"(i) who is not married (determined by applying section 143), is not a surviving spouse (as defined in section 2(a)), and for the taxable year has a gross income of less than the sum of the exemption amount plus the zero bracket amount applicable to such an individual,
"(ii) who is a surviving spouse (as so defined) and for the taxable year has a gross income of less than the sum of the exemption amount plus the zero bracket amount applicable to such an individual, or
"(iii) who is entitled to make a joint return under section 6013 and whose gross income, when combined with the gross income of his spouse, is, for the taxable year, less than the sum of twice the exemption amount plus the zero bracket amount applicable to a joint return, but only if such individual and his spouse, at the close of the taxable year, had the same household as their home.
Clause (iii) shall not apply if for the taxable year such spouse makes a separate return or any other taxpayer is entitled to an exemption for such spouse under section 151(e).
"(B) The amount specified in clause (i) or (ii) of subparagraph (A) shall be increased by the exemption amount in the case of an individual entitled to an additional personal exemption under section 151(c)(1), and the amount specified in clause (iii) of subparagraph (A) shall be increased by the exemption amount for each additional personal exemption to which the individual or his spouse is entitled under section 151(c).
"(C) The exception under subparagraph (A) shall not apply to—
"(i) a nonresident alien individual;
"(ii) a citizen of the United States entitled to the benefits of section 931;
"(iii) an individual making a return under section 443(a)(1) for a period of less than 12 months on account of a change in his annual accounting period;
"(iv) an individual who has income (other than earned income) of the exemption amount or more and who is described in section 63(e)(1)(D); or
"(v) an estate or trust.
"(D) For purposes of this paragraph—
"(i) The term 'zero bracket amount' has the meaning given to such term by section 63(d).
"(ii) The term 'exemption amount' has the meaning given to such term by section 151(f)."
Subsec. (a)(9).
Subsecs. (d), (e).
1984—Subsec. (b)(2).
1981—Subsec. (a)(1).
Subsec. (c).
1980—Subsec. (a)(9).
Subsec. (b)(3).
Subsec. (b)(4).
1978—Subsec. (a)(1)(A).
Subsec. (a)(8).
Subsec. (c).
1977—Subsec. (a)(1)(A).
Subsec. (a)(1)(B).
Subsec. (a)(1)(C).
1976—Subsec. (a).
Subsec. (a)(1)(A), (B).
Subsec. (a)(7).
Subsec. (b)(5).
1975—Subsec. (a)(1)(A).
Subsec. (a)(1)(B).
Subsec. (a)(6).
1974—Subsec. (a).
1971—Subsec. (a)(1).
1969—Subsec. (a)(1).
1964—Subsec. (c).
1958—Subsecs. (c), (d).
Statutory Notes and Related Subsidiaries
Effective Date of 2017 Amendment
Amendment by
Effective Date of 2010 Amendment
Amendment by
Effective Date of 2002 Amendment
Effective Date of 2000 Amendment
Effective Date of 1997 Amendment
Amendment by section 312(d)(11) of
Amendment by section 1225 of
Effective Date of 1988 Amendment
Amendment by
Effective Date of 1986 Amendment
Amendment by section 104(a)(1) of
Effective Date of 1984 Amendment
Amendment by
Effective Date of 1981 Amendment
Amendment by section 104(d)(1) of
Amendment by section 111(b)(3) of
Effective Date of 1980 Amendment
Amendment by section 6(i)(5) of
Effective Date of 1978 Amendment
Amendment by section 101(c) of
Amendment by section 102(b)(1) of
Amendment by section 105(d) of
Amendment by section 404(c)(8) of
Effective Date of 1978 Amendment; Election of Prior Law
Amendment by
Effective Date of 1977 Amendment
Amendment by
Effective Date of 1976 Amendment
Amendment by section 401(b)(3) of
Effective and Termination Dates of 1975 Amendments
Amendment by
Amendment by
Effective Date of 1974 Amendments
Amendment by
Amendment by
Effective Date of 1971 Amendment
Effective Date of 1969 Amendment
Amendment by section 941(a) of
Amendment by section 941(d) of
Effective Date of 1964 Amendment
Amendment by
Effective Date of 1958 Amendment
Return-Free Tax System
No Return Required of Individual Whose Only Gross Income Is Grant of $1,000 From State
"(a)
"(b)
Exemption From Filing Requirement for Prior Years Where Income of Political Party was $100 or Less
§6013. Joint returns of income tax by husband and wife
(a) Joint returns
A husband and wife may make a single return jointly of income taxes under subtitle A, even though one of the spouses has neither gross income nor deductions, except as provided below:
(1) no joint return shall be made if either the husband or wife at any time during the taxable year is a nonresident alien;
(2) no joint return shall be made if the husband and wife have different taxable years; except that if such taxable years begin on the same day and end on different days because of the death of either or both, then the joint return may be made with respect to the taxable year of each. The above exception shall not apply if the surviving spouse remarries before the close of his taxable year, nor if the taxable year of either spouse is a fractional part of a year under section 443(a)(1);
(3) in the case of death of one spouse or both spouses the joint return with respect to the decedent may be made only by his executor or administrator; except that in the case of the death of one spouse the joint return may be made by the surviving spouse with respect to both himself and the decedent if no return for the taxable year has been made by the decedent, no executor or administrator has been appointed, and no executor or administrator is appointed before the last day prescribed by law for filing the return of the surviving spouse. If an executor or administrator of the decedent is appointed after the making of the joint return by the surviving spouse, the executor or administrator may disaffirm such joint return by making, within 1 year after the last day prescribed by law for filing the return of the surviving spouse, a separate return for the taxable year of the decedent with respect to which the joint return was made, in which case the return made by the survivor shall constitute his separate return.
(b) Joint return after filing separate return
(1) In general
Except as provided in paragraph (2), if an individual has filed a separate return for a taxable year for which a joint return could have been made by him and his spouse under subsection (a) and the time prescribed by law for filing the return for such taxable year has expired, such individual and his spouse may nevertheless make a joint return for such taxable year. A joint return filed by the husband and wife under this subsection shall constitute the return of the husband and wife for such taxable year, and all payments, credits, refunds, or other repayments made or allowed with respect to the separate return of either spouse for such taxable year shall be taken into account in determining the extent to which the tax based upon the joint return has been paid. If a joint return is made under this subsection, any election (other than the election to file a separate return) made by either spouse in his separate return for such taxable year with respect to the treatment of any income, deduction, or credit of such spouse shall not be changed in the making of the joint return where such election would have been irrevocable if the joint return had not been made. If a joint return is made under this subsection after the death of either spouse, such return with respect to the decedent can be made only by his executor or administrator.
(2) Limitations for making of election
The election provided for in paragraph (1) may not be made—
(A) after the expiration of 3 years from the last date prescribed by law for filing the return for such taxable year (determined without regard to any extension of time granted to either spouse); or
(B) after there has been mailed to either spouse, with respect to such taxable year, a notice of deficiency under section 6212, if the spouse, as to such notice, files a petition with the Tax Court within the time prescribed in section 6213; or
(C) after either spouse has commenced a suit in any court for the recovery of any part of the tax for such taxable year; or
(D) after either spouse has entered into a closing agreement under section 7121 with respect to such taxable year, or after any civil or criminal case arising against either spouse with respect to such taxable year has been compromised under section 7122.
(3) When return deemed filed
(A) Assessment and collection
For purposes of section 6501 (relating to periods of limitations on assessment and collection), and for purposes of section 6651 (relating to delinquent returns), a joint return made under this subsection shall be deemed to have been filed—
(i) Where both spouses filed separate returns prior to making the joint return—on the date the last separate return was filed (but not earlier than the last date prescribed by law for filing the return of either spouse);
(ii) Where only one spouse filed a separate return prior to the making of the joint return, and the other spouse had less than the exemption amount of gross income for such taxable year—on the date of the filing of such separate return (but not earlier than the last date prescribed by law for the filing of such separate return); or
(iii) Where only one spouse filed a separate return prior to the making of the joint return, and the other spouse had gross income of the exemption amount or more for such taxable year—on the date of the filing of such joint return.
For purposes of this subparagraph, the term "exemption amount" has the meaning given to such term by section 151(d). For purposes of clauses (ii) and (iii), if the spouse whose gross income is being compared to the exemption amount is 65 or over, such clauses shall be applied by substituting "the sum of the exemption amount and the additional standard deduction under section 63(c)(2) by reason of section 63(f)(1)(A)" for "the exemption amount".
(B) Credit or refund
For purposes of section 6511, a joint return made under this subsection shall be deemed to have been filed on the last date prescribed by law for filing the return for such taxable year (determined without regard to any extension of time granted to either spouse).
(4) Additional time for assessment
If a joint return is made under this subsection, the periods of limitations provided in sections 6501 and 6502 on the making of assessments and the beginning of levy or a proceeding in court for collection shall with respect to such return include one year immediately after the date of the filing of such joint return (computed without regard to the provisions of paragraph (3)).
(5) Additions to the tax and penalties
(A) Coordination with part II of subchapter A of chapter 68
For purposes of part II of subchapter A of
(i) such sum shall be treated as the amount shown on the joint return,
(ii) any negligence (or disregard of rules or regulations) on either separate return shall be treated as negligence (or such disregard) on the joint return, and
(iii) any fraud on either separate return shall be treated as fraud on the joint return.
(B) Criminal penalty
For purposes of section 7206(1) and (2) and section 7207 (relating to criminal penalties in the case of fraudulent returns) the term "return" includes a separate return filed by a spouse with respect to a taxable year for which a joint return is made under this subsection after the filing of such separate return.
(c) Treatment of joint return after death of either spouse
For purposes of sections 15, 443, and 7851(a)(1)(A), where the husband and wife have different taxable years because of the death of either spouse, the joint return shall be treated as if the taxable years of both spouses ended on the date of the closing of the surviving spouse's taxable year.
(d) Special rules
For purposes of this section—
(1) the status as husband and wife of two individuals having taxable years beginning on the same day shall be determined—
(A) if both have the same taxable year—as of the close of such year; or
(B) if one dies before the close of the taxable year of the other—as of the time of such death;
(2) an individual who is legally separated from his spouse under a decree of divorce or of separate maintenance shall not be considered as married; and
(3) if a joint return is made, the tax shall be computed on the aggregate income and the liability with respect to the tax shall be joint and several.
[(e) Repealed. Pub. L. 105–206, title III, §3201(e)(1), July 22, 1998, 112 Stat. 740 ]
(f) Joint return where individual is in missing status
For purposes of this section and subtitle A—
(1) Election by spouse
If—
(A) an individual is in a missing status (within the meaning of paragraph (3)) as a result of service in a combat zone (as determined for purposes of section 112), and
(B) the spouse of such individual is otherwise entitled to file a joint return for any taxable year which begins on or before the day which is 2 years after the date designated under section 112 as the date of termination of combatant activities in such zone,
then such spouse may elect under subsection (a) to file a joint return for such taxable year. With respect to service in the combat zone designated for purposes of the Vietnam conflict, such election may be made for any taxable year while an individual is in missing status.
(2) Effect of election
If the spouse of an individual described in paragraph (1)(A) elects to file a joint return under subsection (a) for a taxable year, then, until such election is revoked—
(A) such election shall be valid even if such individual died before the beginning of such year, and
(B) except for purposes of section 692 (relating to income taxes of members of the Armed Forces, astronauts, and victims of certain terrorist attacks on death), the income tax liability of such individual, his spouse, and his estate shall be determined as if he were alive throughout the taxable year.
(3) Missing status
For purposes of this subsection—
(A) Uniformed services
A member of a uniformed service (within the meaning of
(B) Civilian employees
An employee (within the meaning of
(4) Making of election; revocation
An election described in this subsection with respect to any taxable year may be made by filing a joint return in accordance with subsection (a) and under such regulations as may be prescribed by the Secretary. Such an election may be revoked by either spouse on or before the due date (including extensions) for such taxable year, and, in the case of an executor or administrator, may be revoked by disaffirming as provided in the last sentence of subsection (a)(3).
(g) Election to treat nonresident alien individual as resident of the United States
(1) In general
A nonresident alien individual with respect to whom this subsection is in effect for the taxable year shall be treated as a resident of the United States—
(A) for purposes of
(B) for purposes of
(2) Individuals with respect to whom this subsection is in effect
This subsection shall be in effect with respect to any individual who, at the close of the taxable year for which an election under this subsection was made, was a nonresident alien individual married to a citizen or resident of the United States, if both of them made such election to have the benefits of this subsection apply to them.
(3) Duration of election
An election under this subsection shall apply to the taxable year for which made and to all subsequent taxable years until terminated under paragraph (4) or (5); except that any such election shall not apply for any taxable year if neither spouse is a citizen or resident of the United States at any time during such year.
(4) Termination of election
An election under this subsection shall terminate at the earliest of the following times:
(A) Revocation by taxpayers
If either taxpayer revokes the election, as of the first taxable year for which the last day prescribed by law for filing the return of tax under
(B) Death
In the case of the death of either spouse, as of the beginning of the first taxable year of the spouse who survives following the taxable year in which such death occurred; except that if the spouse who survives is a citizen or resident of the United States who is a surviving spouse entitled to the benefits of section 2, the time provided by this subparagraph shall be as of the close of the last taxable year for which such individual is entitled to the benefits of section 2.
(C) Legal separation
In the case of the legal separation of the couple under a decree of divorce or of separate maintenance, as of the beginning of the taxable year in which such legal separation occurs.
(D) Termination by Secretary
At the time provided in paragraph (5).
(5) Termination by Secretary
The Secretary may terminate any election under this subsection for any taxable year if he determines that either spouse has failed—
(A) to keep such books and records,
(B) to grant such access to such books and records, or
(C) to supply such other information,
as may be reasonably necessary to ascertain the amount of liability for taxes under
(6) Only one election
If any election under this subsection for any two individuals is terminated under paragraph (4) or (5) for any taxable year, such two individuals shall be ineligible to make an election under this subsection for any subsequent taxable year.
(h) Joint return, etc., for year in which nonresident alien becomes resident of United States
(1) In general
If—
(A) any individual is a nonresident alien individual at the beginning of any taxable year but is a resident of the United States at the close of such taxable year,
(B) at the close of such taxable year, such individual is married to a citizen or resident of the United States, and
(C) both individuals elect the benefits of this subsection at the time and in the manner prescribed by the Secretary by regulation,
then the individual referred to in subparagraph (A) shall be treated as a resident of the United States for purposes of
(2) Only one election
If any election under this subsection applies for any 2 individuals for any taxable year, such 2 individuals shall be ineligible to make an election under this subsection for any subsequent taxable year.
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
2003—Subsec. (f)(2)(B).
2002—Subsec. (f)(2)(B).
1998—Subsec. (e).
Subsecs. (g)(1)(A), (5), (h)(1).
1996—Subsec. (b)(2).
1990—Subsec. (e)(3).
1989—Subsec. (b)(5)(A).
1988—Subsec. (b)(5)(A).
1986—Subsec. (b)(3)(A).
Subsec. (f)(1).
1984—Subsec. (c).
Subsec. (e).
1983—
Subsec. (f)(1).
1982—Subsecs. (g)(1)(B). (h)(1).
1981—Subsec. (b)(3)(A).
1978—Subsec. (b)(3)(A).
Subsec. (g)(1).
Subsec. (g)(2).
Subsec. (g)(5).
Subsec. (h)(1).
1976—Subsec. (b)(2)(C).
Subsec. (d).
Subsec. (e)(1).
Subsec. (f)(1).
Subsec. (f)(4).
Subsecs. (g), (h).
1975—Subsec. (f).
1971—Subsec. (b)(3)(A).
Subsec. (e).
1969—Subsec. (b)(3)(A).
1958—Subsec. (b)(2)(C).
Statutory Notes and Related Subsidiaries
Effective Date of 2003 Amendment
Amendment by
Effective Date of 2002 Amendment
Amendment by
Effective Date of 1998 Amendment
Amendment by section 3201 of
Amendment by section 6011(e)(2) of
Effective Date of 1996 Amendment
Effective Date of 1989 Amendment
Amendment by
Effective Date of 1988 Amendment
Effective Date of 1986 Amendment
Amendment by section 104(a)(2) of
Amendment by section 1708(a)(3) of
Effective Date of 1984 Amendment
"(1)
"(2)
"(3)
"(A) a joint return under section 6013 of the Internal Revenue Code of 1954 was filed before January 1, 1985,
"(B) on such return there is an understatement (as defined in section 6661(b)(2)(A) of such Code) which is attributable to disallowed deductions attributable to activities of one spouse,
"(C) the amount of such disallowed deductions exceeds the taxable income shown on such return,
"(D) without regard to any determination before October 21, 1988, the other spouse establishes that in signing the return he or she did not know, and had no reason to know, that there was such an understatement, and
"(E) the marriage between such spouses terminated and immediately after such termination the net worth of the other spouse was less than $10,000,
notwithstanding any law or rule of law (including res judicata), the other spouse shall be relieved of liability for tax (including interest, penalties, and other amounts) for such taxable year to the extent such liability is attributable to such understatement, and, to the extent the liability so attributable has been collected from such other spouse, it shall be refunded or credited to such other spouse. No credit or refund shall be made under the preceding sentence unless claim therefor has been submitted to the Secretary of the Treasury or his delegate before the date 1 year after the date of the enactment of this paragraph [Nov. 10, 1988], and no interest on such credit or refund shall be allowed for any period before such date of enactment."
Amendment by section 474(b)(2) of
Effective Date of 1981 Amendment
Amendment by
Effective Date of 1978 Amendment
Amendment by section 102(b)(2) of
"(i) to the extent that they relate to
"(ii) to the extent that they relate to wage withholding under
Effective Date of 1976 Amendment
"(1)
"(2)
Effective Date of 1975 Amendment
Effective Date of 1971 Amendments
Effective Date of 1969 Amendment
Effective Date of 1958 Amendment
Amendment by
Separate Notice to Each Filer
§6014. Income tax return—tax not computed by taxpayer
(a) Election by taxpayer
An individual who does not itemize his deductions and who is not described in section 6012(a)(1)(C)(i), whose gross income is less than $10,000 and includes no income other than remuneration for services performed by him as an employee, dividends or interest, and whose gross income other than wages, as defined in section 3401(a), does not exceed $100, shall at his election not be required to show on the return the tax imposed by section 1. Such election shall be made by using the form prescribed for purposes of this section. In such case the tax shall be computed by the Secretary who shall mail to the taxpayer a notice stating the amount determined as payable.
(b) Regulations
The Secretary shall prescribe regulations for carrying out this section, and such regulations may provide for the application of the rules of this section—
(1) to cases where the gross income includes items other than those enumerated by subsection (a),
(2) to cases where the gross income from sources other than wages on which the tax has been withheld at the source is more than $100,
(3) to cases where the gross income is $10,000 or more, or
(4) to cases where the taxpayer itemizes his deductions or where the taxpayer claims a reduced standard deduction by reason of section 63(c)(5).
Such regulations shall provide for the application of this section in the case of husband and wife, including provisions determining when a joint return under this section may be permitted or required, whether the liability shall be joint and several, and whether one spouse may make return under this section and the other without regard to this section.
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
1986—Subsec. (a).
Subsec. (b)(4).
1977—Subsec. (a).
Subsec. (b)(4).
1976—Subsec. (a).
Subsec. (b).
1969—Subsec. (a).
Subsec. (b).
1964—Subsec. (a).
Statutory Notes and Related Subsidiaries
Effective Date of 1986 Amendment
Amendment by
Effective Date of 1977 Amendment
Amendment by
Effective Date of 1969 Amendment
Amendment by section 803(d)(1) of
Effective Date of 1964 Amendment
Amendment by section 201(d)(14) of
Amendment by section 301(b)(2) of
§6015. Relief from joint and several liability on joint return
(a) In general
Notwithstanding section 6013(d)(3)—
(1) an individual who has made a joint return may elect to seek relief under the procedures prescribed under subsection (b); and
(2) if such individual is eligible to elect the application of subsection (c), such individual may, in addition to any election under paragraph (1), elect to limit such individual's liability for any deficiency with respect to such joint return in the manner prescribed under subsection (c).
Any determination under this section shall be made without regard to community property laws.
(b) Procedures for relief from liability applicable to all joint filers
(1) In general
Under procedures prescribed by the Secretary, if—
(A) a joint return has been made for a taxable year;
(B) on such return there is an understatement of tax attributable to erroneous items of one individual filing the joint return;
(C) the other individual filing the joint return establishes that in signing the return he or she did not know, and had no reason to know, that there was such understatement;
(D) taking into account all the facts and circumstances, it is inequitable to hold the other individual liable for the deficiency in tax for such taxable year attributable to such understatement; and
(E) the other individual elects (in such form as the Secretary may prescribe) the benefits of this subsection not later than the date which is 2 years after the date the Secretary has begun collection activities with respect to the individual making the election,
then the other individual shall be relieved of liability for tax (including interest, penalties, and other amounts) for such taxable year to the extent such liability is attributable to such understatement.
(2) Apportionment of relief
If an individual who, but for paragraph (1)(C), would be relieved of liability under paragraph (1), establishes that in signing the return such individual did not know, and had no reason to know, the extent of such understatement, then such individual shall be relieved of liability for tax (including interest, penalties, and other amounts) for such taxable year to the extent that such liability is attributable to the portion of such understatement of which such individual did not know and had no reason to know.
(3) Understatement
For purposes of this subsection, the term "understatement" has the meaning given to such term by section 6662(d)(2)(A).
(c) Procedures to limit liability for taxpayers no longer married or taxpayers legally separated or not living together
(1) In general
Except as provided in this subsection, if an individual who has made a joint return for any taxable year elects the application of this subsection, the individual's liability for any deficiency which is assessed with respect to the return shall not exceed the portion of such deficiency properly allocable to the individual under subsection (d).
(2) Burden of proof
Except as provided in subparagraph (A)(ii) or (C) of paragraph (3), each individual who elects the application of this subsection shall have the burden of proof with respect to establishing the portion of any deficiency allocable to such individual.
(3) Election
(A) Individuals eligible to make election
(i) In general
An individual shall only be eligible to elect the application of this subsection if—
(I) at the time such election is filed, such individual is no longer married to, or is legally separated from, the individual with whom such individual filed the joint return to which the election relates; or
(II) such individual was not a member of the same household as the individual with whom such joint return was filed at any time during the 12-month period ending on the date such election is filed.
(ii) Certain taxpayers ineligible to elect
If the Secretary demonstrates that assets were transferred between individuals filing a joint return as part of a fraudulent scheme by such individuals, an election under this subsection by either individual shall be invalid (and section 6013(d)(3) shall apply to the joint return).
(B) Time for election
An election under this subsection for any taxable year may be made at any time after a deficiency for such year is asserted but not later than 2 years after the date on which the Secretary has begun collection activities with respect to the individual making the election.
(C) Election not valid with respect to certain deficiencies
If the Secretary demonstrates that an individual making an election under this subsection had actual knowledge, at the time such individual signed the return, of any item giving rise to a deficiency (or portion thereof) which is not allocable to such individual under subsection (d), such election shall not apply to such deficiency (or portion). This subparagraph shall not apply where the individual with actual knowledge establishes that such individual signed the return under duress.
(4) Liability increased by reason of transfers of property to avoid tax
(A) In general
Notwithstanding any other provision of this subsection, the portion of the deficiency for which the individual electing the application of this subsection is liable (without regard to this paragraph) shall be increased by the value of any disqualified asset transferred to the individual.
(B) Disqualified asset
For purposes of this paragraph—
(i) In general
The term "disqualified asset" means any property or right to property transferred to an individual making the election under this subsection with respect to a joint return by the other individual filing such joint return if the principal purpose of the transfer was the avoidance of tax or payment of tax.
(ii) Presumption
(I) In general
For purposes of clause (i), except as provided in subclause (II), any transfer which is made after the date which is 1 year before the date on which the first letter of proposed deficiency which allows the taxpayer an opportunity for administrative review in the Internal Revenue Service Independent Office of Appeals is sent shall be presumed to have as its principal purpose the avoidance of tax or payment of tax.
(II) Exceptions
Subclause (I) shall not apply to any transfer pursuant to a decree of divorce or separate maintenance or a written instrument incident to such a decree or to any transfer which an individual establishes did not have as its principal purpose the avoidance of tax or payment of tax.
(d) Allocation of deficiency
For purposes of subsection (c)—
(1) In general
The portion of any deficiency on a joint return allocated to an individual shall be the amount which bears the same ratio to such deficiency as the net amount of items taken into account in computing the deficiency and allocable to the individual under paragraph (3) bears to the net amount of all items taken into account in computing the deficiency.
(2) Separate treatment of certain items
If a deficiency (or portion thereof) is attributable to—
(A) the disallowance of a credit; or
(B) any tax (other than tax imposed by section 1 or 55) required to be included with the joint return;
and such item is allocated to one individual under paragraph (3), such deficiency (or portion) shall be allocated to such individual. Any such item shall not be taken into account under paragraph (1).
(3) Allocation of items giving rise to the deficiency
For purposes of this subsection—
(A) In general
Except as provided in paragraphs (4) and (5), any item giving rise to a deficiency on a joint return shall be allocated to individuals filing the return in the same manner as it would have been allocated if the individuals had filed separate returns for the taxable year.
(B) Exception where other spouse benefits
Under rules prescribed by the Secretary, an item otherwise allocable to an individual under subparagraph (A) shall be allocated to the other individual filing the joint return to the extent the item gave rise to a tax benefit on the joint return to the other individual.
(C) Exception for fraud
The Secretary may provide for an allocation of any item in a manner not prescribed by subparagraph (A) if the Secretary establishes that such allocation is appropriate due to fraud of one or both individuals.
(4) Limitations on separate returns disregarded
If an item of deduction or credit is disallowed in its entirety solely because a separate return is filed, such disallowance shall be disregarded and the item shall be computed as if a joint return had been filed and then allocated between the spouses appropriately. A similar rule shall apply for purposes of section 86.
(5) Child's liability
If the liability of a child of a taxpayer is included on a joint return, such liability shall be disregarded in computing the separate liability of either spouse and such liability shall be allocated appropriately between the spouses.
(e) Petition for review by Tax Court
(1) In general
In the case of an individual against whom a deficiency has been asserted and who elects to have subsection (b) or (c) apply, or in the case of an individual who requests equitable relief under subsection (f)—
(A) In general
In addition to any other remedy provided by law, the individual may petition the Tax Court (and the Tax Court shall have jurisdiction) to determine the appropriate relief available to the individual under this section if such petition is filed—
(i) at any time after the earlier of—
(I) the date the Secretary mails, by certified or registered mail to the taxpayer's last known address, notice of the Secretary's final determination of relief available to the individual, or
(II) the date which is 6 months after the date such election is filed or request is made with the Secretary, and
(ii) not later than the close of the 90th day after the date described in clause (i)(I).
(B) Restrictions applicable to collection of assessment
(i) In general
Except as otherwise provided in section 6851 or 6861, no levy or proceeding in court shall be made, begun, or prosecuted against the individual making an election under subsection (b) or (c) or requesting equitable relief under subsection (f) for collection of any assessment to which such election or request relates until the close of the 90th day referred to in subparagraph (A)(ii), or, if a petition has been filed with the Tax Court under subparagraph (A), until the decision of the Tax Court has become final. Rules similar to the rules of section 7485 shall apply with respect to the collection of such assessment.
(ii) Authority to enjoin collection actions
Notwithstanding the provisions of section 7421(a), the beginning of such levy or proceeding during the time the prohibition under clause (i) is in force may be enjoined by a proceeding in the proper court, including the Tax Court. The Tax Court shall have no jurisdiction under this subparagraph to enjoin any action or proceeding unless a timely petition has been filed under subparagraph (A) and then only in respect of the amount of the assessment to which the election under subsection (b) or (c) relates or to which the request under subsection (f) relates.
(2) Suspension of running of period of limitations
The running of the period of limitations in section 6502 on the collection of the assessment to which the petition under paragraph (1)(A) relates shall be suspended—
(A) for the period during which the Secretary is prohibited by paragraph (1)(B) from collecting by levy or a proceeding in court and for 60 days thereafter, and
(B) if a waiver under paragraph (5) is made, from the date the claim for relief was filed until 60 days after the waiver is filed with the Secretary.
(3) Limitation on Tax Court jurisdiction
If a suit for refund is begun by either individual filing the joint return pursuant to section 6532—
(A) the Tax Court shall lose jurisdiction of the individual's action under this section to whatever extent jurisdiction is acquired by the district court or the United States Court of Federal Claims over the taxable years that are the subject of the suit for refund, and
(B) the court acquiring jurisdiction shall have jurisdiction over the petition filed under this subsection.
(4) Notice to other spouse
The Tax Court shall establish rules which provide the individual filing a joint return but not making the election under subsection (b) or (c) or the request for equitable relief under subsection (f) with adequate notice and an opportunity to become a party to a proceeding under either such subsection.
(5) Waiver
An individual who elects the application of subsection (b) or (c) or who requests equitable relief under subsection (f) (and who agrees with the Secretary's determination of relief) may waive in writing at any time the restrictions in paragraph (1)(B) with respect to collection of the outstanding assessment (whether or not a notice of the Secretary's final determination of relief has been mailed).
(6) Suspension of running of period for filing petition in title 11 cases
In the case of a person who is prohibited by reason of a case under
(7) Standard and scope of review
Any review of a determination made under this section shall be reviewed de novo by the Tax Court and shall be based upon—
(A) the administrative record established at the time of the determination, and
(B) any additional newly discovered or previously unavailable evidence.
(f) Equitable relief
(1) In general
Under procedures prescribed by the Secretary, if—
(A) taking into account all the facts and circumstances, it is inequitable to hold the individual liable for any unpaid tax or any deficiency (or any portion of either), and
(B) relief is not available to such individual under subsection (b) or (c),
the Secretary may relieve such individual of such liability.
(2) Limitation
A request for equitable relief under this subsection may be made with respect to any portion of any liability that—
(A) has not been paid, provided that such request is made before the expiration of the applicable period of limitation under section 6502, or
(B) has been paid, provided that such request is made during the period in which the individual could submit a timely claim for refund or credit of such payment.
(g) Credits and refunds
(1) In general
Except as provided in paragraphs (2) and (3), notwithstanding any other law or rule of law (other than section 6511, 6512(b), 7121, or 7122), credit or refund shall be allowed or made to the extent attributable to the application of this section.
(2) Res judicata
In the case of any election under subsection (b) or (c) or of any request for equitable relief under subsection (f), if a decision of a court in any prior proceeding for the same taxable year has become final, such decision shall be conclusive except with respect to the qualification of the individual for relief which was not an issue in such proceeding. The exception contained in the preceding sentence shall not apply if the court determines that the individual participated meaningfully in such prior proceeding.
(3) Credit and refund not allowed under subsection (c)
No credit or refund shall be allowed as a result of an election under subsection (c).
(h) Regulations
The Secretary shall prescribe such regulations as are necessary to carry out the provisions of this section, including—
(1) regulations providing methods for allocation of items other than the methods under subsection (d)(3); and
(2) regulations providing the opportunity for an individual to have notice of, and an opportunity to participate in, any administrative proceeding with respect to an election made under subsection (b) or (c) or a request for equitable relief made under subsection (f) by the other individual filing the joint return.
(Added
Editorial Notes
Prior Provisions
A prior section 6015, acts Aug. 16, 1954, ch. 736,
Amendments
2019—Subsec. (c)(4)(B)(ii)(I).
Subsec. (e)(7).
Subsec. (f).
"(1) taking into account all the facts and circumstances, it is inequitable to hold the individual liable for any unpaid tax or any deficiency (or any portion of either); and
"(2) relief is not available to such individual under subsection (b) or (c),
the Secretary may relieve such individual of such liability."
2015—Subsec. (e)(6).
2006—Subsec. (e)(1).
Subsec. (e)(1)(A)(i)(II).
Subsec. (e)(1)(B)(i).
Subsec. (e)(1)(B)(ii).
Subsec. (e)(4).
Subsec. (e)(5).
Subsec. (g)(2).
Subsec. (h)(2).
2000—Subsec. (c)(3)(B).
Subsec. (e)(1).
Subsec. (e)(1)(A).
Subsec. (e)(1)(B)(i).
Subsec. (e)(2).
Subsec. (e)(3).
Subsec. (e)(5).
Subsecs. (g), (h).
1998—Subsec. (e)(3)(A).
Statutory Notes and Related Subsidiaries
Effective Date of 2019 Amendment
Effective Date of 2015 Amendment
Effective Date of 2006 Amendment
Effective Date of 2000 Amendment
Effective Date of 1998 Amendment
Amendment by
Effective Date
"(1)
"(2) 2-
Separate Form for Applying for Spousal Relief
[§6016. Repealed. Pub. L. 90–364, title I, §103(a), June 28, 1968, 82 Stat. 260 ]
Section, acts Aug. 16, 1954, ch. 736,
Statutory Notes and Related Subsidiaries
Effective Date of Repeal
Repeal effective with respect to taxable years beginning after Dec. 31, 1967, except as provided by section 104 of
§6017. Self-employment tax returns
Every individual (other than a nonresident alien individual) having net earnings from self-employment of $400 or more for the taxable year shall make a return with respect to the self-employment tax imposed by
(Aug. 16, 1954, ch. 736,
[§6017A. Repealed. Pub. L. 101–239, title VII, §7711(b)(1), Dec. 19, 1989, 103 Stat. 2393 ]
Section, added
Statutory Notes and Related Subsidiaries
Effective Date of Repeal
Repeal applicable to returns and statements the due date for which (determined without regard to extensions) is after Dec. 31, 1989, see section 7711(c) of
Subpart C—Estate and Gift Tax Returns
Editorial Notes
Amendments
2010—
2001—
§6018. Estate tax returns
(a) Returns by executor
(1) Citizens or residents
In all cases where the gross estate at the death of a citizen or resident exceeds the basic exclusion amount in effect under section 2010(c) for the calendar year which includes the date of death, the executor shall make a return with respect to the estate tax imposed by subtitle B.
(2) Nonresidents not citizens of the United States
In the case of the estate of every nonresident not a citizen of the United States if that part of the gross estate which is situated in the United States exceeds $60,000, the executor shall make a return with respect to the estate tax imposed by subtitle B.
(3) Adjustment for certain gifts
The amount applicable under paragraph (1) and the amount set forth in paragraph (2) shall each be reduced (but not below zero) by the sum of—
(A) the amount of the adjusted taxable gifts (within the meaning of section 2001(b)) made by the decedent after December 31, 1976, plus
(B) the aggregate amount allowed as a specific exemption under section 2521 (as in effect before its repeal by the Tax Reform Act of 1976) with respect to gifts made by the decedent after September 8, 1976.
(b) Returns by beneficiaries
If the executor is unable to make a complete return as to any part of the gross estate of the decedent, he shall include in his return a description of such part and the name of every person holding a legal or beneficial interest therein. Upon notice from the Secretary such person shall in like manner make a return as to such part of the gross estate.
(Aug. 16, 1954, ch. 736,
Editorial Notes
References in Text
The Tax Reform Act of 1976, referred to in subsec. (a)(3)(B), is
Amendments
2010—
Subsec. (a)(1).
2001—
1997—Subsec. (a)(1).
Subsec. (a)(4).
"(4)
1990—Subsec. (a)(3) to (5).
1989—Subsec. (c).
"
"(1)
"(2)
1988—Subsec. (a)(5).
1984—Subsec. (c).
1981—Subsec. (a)(1).
Subsec. (a)(3).
1976—Subsec. (a)(1).
Subsec. (a)(2).
Subsec. (a)(3), (4).
Subsec. (b).
1966—Subsec. (a)(2).
Statutory Notes and Related Subsidiaries
Effective Date of 2010 Amendment
Amendment by section 301(a) of
Amendment by section 303(b)(3) of
Effective Date of 2001 Amendment
Amendment by
Effective Date of 1997 Amendment
Amendment by section 501(a)(1)(C) of
Amendment by section 1073(b)(4) of
Effective Date of 1989 Amendment
Amendment by
Effective Date of 1988 Amendment
Amendment by
Effective Date of 1984 Amendment
Amendment by
Effective Date of 1981 Amendment
Amendment by
Effective Date of 1976 Amendment
Amendment by section 2001(c)(1)(J) of
Effective Date of 1966 Amendment
Amendment by
Savings Provision
For provisions that nothing in amendment by
§6019. Gift tax returns
Any individual who in any calendar year makes any transfer by gift other than—
(1) a transfer which under subsection (b) or (e) of section 2503 is not to be included in the total amount of gifts for such year,
(2) a transfer of an interest with respect to which a deduction is allowed under section 2523, or
(3) a transfer with respect to which a deduction is allowed under section 2522 but only if—
(A)(i) such transfer is of the donor's entire interest in the property transferred, and
(ii) no other interest in such property is or has been transferred (for less than adequate and full consideration in money or money's worth) from the donor to a person, or for a use, not described in subsection (a) or (b) of section 2522, or
(B) such transfer is described in section 2522(d),
shall make a return for such year with respect to the gift tax imposed by subtitle B.
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
2010—
2001—
1997—Par. (3).
1981—
1970—Subsec. (a).
Subsecs. (b), (c).
Statutory Notes and Related Subsidiaries
Effective Date of 2010 Amendment
Amendment by
Effective Date of 2001 Amendment
Amendment by
Effective Date of 1997 Amendment
Effective Date of 1981 Amendment
Amendment by
Effective Date of 1970 Amendment
Amendment by
Subpart D—Miscellaneous Provisions
§6020. Returns prepared for or executed by Secretary
(a) Preparation of return by Secretary
If any person shall fail to make a return required by this title or by regulations prescribed thereunder, but shall consent to disclose all information necessary for the preparation thereof, then, and in that case, the Secretary may prepare such return, which, being signed by such person, may be received by the Secretary as the return of such person.
(b) Execution of return by Secretary
(1) Authority of Secretary to execute return
If any person fails to make any return required by any internal revenue law or regulation made thereunder at the time prescribed therefor, or makes, willfully or otherwise, a false or fraudulent return, the Secretary shall make such return from his own knowledge and from such information as he can obtain through testimony or otherwise.
(2) Status of returns
Any return so made and subscribed by the Secretary shall be prima facie good and sufficient for all legal purposes.
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
1984—Subsec. (b)(1).
1976—
1968—Subsec. (b)(1).
Statutory Notes and Related Subsidiaries
Effective Date of 1984 Amendment
Amendment by
Effective Date of 1968 Amendment
Amendment by
§6021. Listing by Secretary of taxable objects owned by nonresidents of internal revenue districts
Whenever there are in any internal revenue district any articles subject to tax, which are not owned or possessed by or under the care or control of any person within such district, and of which no list has been transmitted to the Secretary, as required by law or by regulations prescribed pursuant to law, the Secretary shall enter the premises where such articles are situated, shall make such inspection of the articles as may be necessary and make lists of the same, according to the forms prescribed. Such lists, being subscribed by the Secretary, shall be sufficient lists of such articles for all purposes.
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
1976—
PART III—INFORMATION RETURNS
Editorial Notes
Amendments
2010—
2007—
1980—
1976—
1974—
1969—
Statutory Notes and Related Subsidiaries
Information Returns in Electronic Format
"(a) Each office in the legislative branch, except the House and the Senate, which is responsible for preparing any written statement furnished under part 3 of subchapter A of
"(b) Subsection (a) shall apply with respect to statements prepared for taxable years ending on or after December 31, 2004."
Subpart A—Information Concerning Persons Subject to Special Provisions
Editorial Notes
Amendments
2020—
2017—
2015—
2010—
2008—
2006—
2004—
2001—
1997—
1996—
1990—
1986—
1984—
1982—
1980—
1978—
1976—
1964—
1960—
1958—
Statutory Notes and Related Subsidiaries
Authority To Waive Certain Information Reporting Requirements
2 So in original. The words "With Respect" probably should not be capitalized.
§6031. Return of partnership income
(a) General rule
Every partnership (as defined in section 761(a)) shall make a return for each taxable year, stating specifically the items of its gross income and the deductions allowable by subtitle A, and such other information, for the purpose of carrying out the provisions of subtitle A as the Secretary may by forms and regulations prescribe, and shall include in the return the names and addresses of the individuals who would be entitled to share in the taxable income if distributed and the amount of the distributive share of each individual.
(b) Copies to partners
Each partnership required to file a return under subsection (a) for any partnership taxable year shall (on or before the day on which the return for such taxable year was required to be filed) furnish to each person who is a partner or who holds an interest in such partnership as a nominee for another person at any time during such taxable year a copy of such information required to be shown on such return as may be required by regulations. Information required to be furnished by the partnership under this subsection may not be amended after the due date of the return under subsection (a) to which such information relates, except—
(1) in the case of a partnership which has elected the application of section 6221(b) for the taxable year,
(2) as provided in the procedures under section 6225(c),
(3) with respect to statements under section 6226, or
(4) as otherwise provided by the Secretary.
(c) Nominee reporting
Any person who holds an interest in a partnership as a nominee for another person—
(1) shall furnish to the partnership, in the manner prescribed by the Secretary, the name and address of such other person, and any other information for such taxable year as the Secretary may by form and regulation prescribe, and
(2) shall furnish in the manner prescribed by the Secretary such other person the information provided by such partnership under subsection (b).
(d) Separate statement of items of unrelated business taxable income
In the case of any partnership regularly carrying on a trade or business (within the meaning of section 512(c)(1)), the information required under subsection (b) to be furnished to its partners shall include such information as is necessary to enable each partner to compute its distributive share of partnership income or loss from such trade or business in accordance with section 512(a)(1), but without regard to the modifications described in paragraphs (8) through (15) of section 512(b).
(e) Foreign partnerships
(1) Exception for foreign partnership
Except as provided in paragraph (2), the preceding provisions of this section shall not apply to a foreign partnership.
(2) Certain foreign partnerships required to file return
Except as provided in regulations prescribed by the Secretary, this section shall apply to a foreign partnership for any taxable year if for such year, such partnership has—
(A) gross income derived from sources within the United States, or
(B) gross income which is effectively connected with the conduct of a trade or business within the United States.
The Secretary may provide simplified filing procedures for foreign partnerships to which this section applies.
(f) Electing investment partnerships
In the case of any electing investment partnership (as defined in section 743(e)(6)),1 the information required under subsection (b) to be furnished to any partner to whom section 743(e)(2) applies shall include such information as is necessary to enable the partner to compute the amount of losses disallowed under section 743(e).
(Aug. 16, 1954, ch. 736,
Editorial Notes
References in Text
Section 743(e)(6), referred to in subsec. (f), was redesignated section 743(e)(5) by
Amendments
2018—Subsec. (b).
2015—Subsec. (b).
2004—Subsec. (f).
1997—Subsec. (b).
Subsec. (e).
1988—Subsec. (d).
1986—Subsec. (b).
Subsec. (c).
1982—Subsec. (a).
Subsec. (b).
1976—
Statutory Notes and Related Subsidiaries
Effective Date of 2018 Amendment
Effective Date of 2015 Amendment
Amendment by
Effective Date of 2004 Amendment
Amendment by
Effective Date of 1997 Amendment
Amendment by section 1223(a) of
Effective Date of 1988 Amendment
Effective Date of 1986 Amendment
Amendment by section 1501(c)(16) of
Effective Date of 1982 Amendment
Amendment by
Plan Amendments Not Required Until January 1, 1989
For provisions directing that if any amendments made by subtitle A or subtitle C of title XI [§§1101–1147 and 1171–1177] or title XVIII [§§1800–1899A] of
Returns Required From All Partnerships With United States Partners
Special Rule for Certain International Satellite Partnerships
For provision that this section is not applicable to certain international satellite partnerships, see section 406 of
1 See References in Text note below.
§6032. Returns of banks with respect to common trust funds
Every bank (as defined in section 581) maintaining a common trust fund shall make a return for each taxable year, stating specifically, with respect to such fund, the items of gross income and the deductions allowed by subtitle A, and shall include in the return the names and addresses of the participants who would be entitled to share in the taxable income if distributed and the amount of the proportionate share of each participant. The return shall be executed in the same manner as a return made by a corporation pursuant to the requirements of sections 6012 and 6062.
(Aug. 16, 1954, ch. 736,
§6033. Returns by exempt organizations
(a) Organizations required to file
(1) In general
Except as provided in paragraph (3), every organization exempt from taxation under section 501(a) shall file an annual return, stating specifically the items of gross income, receipts, and disbursements, and such other information for the purpose of carrying out the internal revenue laws as the Secretary may by forms or regulations prescribe, and shall keep such records, render under oath such statements, make such other returns, and comply with such rules and regulations as the Secretary may from time to time prescribe; except that, in the discretion of the Secretary, any organization described in section 401(a) may be relieved from stating in its return any information which is reported in returns filed by the employer which established such organization.
(2) Being a party to certain reportable transactions
Every tax-exempt entity described in section 4965(c) shall file (in such form and manner and at such time as determined by the Secretary) a disclosure of—
(A) such entity's being a party to any prohibited tax shelter transaction (as defined in section 4965(e)), and
(B) the identity of any other party to such transaction which is known by such tax-exempt entity.
(3) Exceptions from filing
(A) Mandatory exceptions
Paragraph (1) shall not apply to—
(i) churches, their integrated auxiliaries, and conventions or associations of churches,
(ii) any organization (other than a private foundation, as defined in section 509(a)) described in subparagraph (C), the gross receipts of which in each taxable year are normally not more than $5,000, or
(iii) the exclusively religious activities of any religious order.
(B) Discretionary exceptions
The Secretary may relieve any organization required under paragraph (1) (other than an organization described in section 509(a)(3)) to file an information return from filing such a return where he determines that such filing is not necessary to the efficient administration of the internal revenue laws.
(C) Certain organizations
The organizations referred to in subparagraph (A)(ii) are—
(i) a religious organization described in section 501(c)(3);
(ii) an educational organization described in section 170(b)(1)(A)(ii);
(iii) a charitable organization, or an organization for the prevention of cruelty to children or animals, described in section 501(c)(3), if such organization is supported, in whole or in part, by funds contributed by the United States or any State or political subdivision thereof, or is primarily supported by contributions of the general public;
(iv) an organization described in section 501(c)(3), if such organization is operated, supervised, or controlled by or in connection with a religious organization described in clause (i);
(v) an organization described in section 501(c)(8); and
(vi) an organization described in section 501(c)(1), if such organization is a corporation wholly owned by the United States or any agency or instrumentality thereof, or a wholly-owned subsidiary of such a corporation.
(b) Certain organizations described in section 501(c)(3)
Every organization described in section 501(c)(3) which is subject to the requirements of subsection (a) shall furnish annually information, at such time and in such manner as the Secretary may by forms or regulations prescribe, setting forth—
(1) its gross income for the year,
(2) its expenses attributable to such income and incurred within the year,
(3) its disbursements within the year for the purposes for which it is exempt,
(4) a balance sheet showing its assets, liabilities, and net worth as of the beginning of such year,
(5) the total of the contributions and gifts received by it during the year, and the names and addresses of all substantial contributors,
(6) the names and addresses of its foundation managers (within the meaning of section 4946(b)(1)) and highly compensated employees,
(7) the compensation and other payments made during the year to each individual described in paragraph (6),
(8) in the case of an organization with respect to which an election under section 501(h) is effective for the taxable year, the following amounts for such organization for such taxable year:
(A) the lobbying expenditures (as defined in section 4911(c)(1)),
(B) the lobbying nontaxable amount (as defined in section 4911(c)(2)),
(C) the grass roots expenditures (as defined in section 4911(c)(3)), and
(D) the grass roots nontaxable amount (as defined in section 4911(c)(4)),
(9) such other information with respect to direct or indirect transfers to, and other direct or indirect transactions and relationships with, other organizations described in section 501(c) (other than paragraph (3) thereof) or section 527 as the Secretary may require to prevent—
(A) diversion of funds from the organization's exempt purpose, or
(B) misallocation of revenues or expenses,
(10) the respective amounts (if any) of the taxes imposed on the organization, or any organization manager of the organization, during the taxable year under any of the following provisions (and the respective amounts (if any) of reimbursements paid by the organization during the taxable year with respect to taxes imposed on any such organization manager under any of such provisions):
(A) section 4911 (relating to tax on excess expenditures to influence legislation),
(B) section 4912 (relating to tax on disqualifying lobbying expenditures of certain organizations),
(C) section 4955 (relating to taxes on political expenditures of section 501(c)(3) organizations), except to the extent that, by reason of section 4962, the taxes imposed under such section are not required to be paid or are credited or refunded, and
(D) section 4959 (relating to taxes on failures by hospital organizations),
(11) the respective amounts (if any) of—
(A) the taxes imposed with respect to the organization on any organization manager, or any disqualified person, during the taxable year under section 4958 (relating to taxes on private excess benefit from certain charitable organizations), and
(B) reimbursements paid by the organization during the taxable year with respect to taxes imposed under such section,
except to the extent that, by reason of section 4962, the taxes imposed under such section are not required to be paid or are credited or refunded,
(12) such information as the Secretary may require with respect to any excess benefit transaction (as defined in section 4958),
(13) such information with respect to disqualified persons as the Secretary may prescribe,
(14) such information as the Secretary may require with respect to disaster relief activities,
(15) in the case of an organization to which the requirements of section 501(r) apply for the taxable year—
(A) a description of how the organization is addressing the needs identified in each community health needs assessment conducted under section 501(r)(3) and a description of any such needs that are not being addressed together with the reasons why such needs are not being addressed, and
(B) the audited financial statements of such organization (or, in the case of an organization the financial statements of which are included in a consolidated financial statement with other organizations, such consolidated financial statement), and
(16) such other information for purposes of carrying out the internal revenue laws as the Secretary may require.
For purposes of paragraph (8), if section 4911(f) applies to the organization for the taxable year, such organization shall furnish the amounts with respect to the affiliated group as well as with respect to such organization.
(c) Additional provisions relating to private foundations
In the case of an organization which is a private foundation (within the meaning of section 509(a))—
(1) the Secretary shall by regulations provide that the private foundation shall include in its annual return under this section such information (not required to be furnished by subsection (b) or the forms or regulations prescribed thereunder) as would have been required to be furnished under section 6056 (relating to annual reports by private foundations) as such section 6056 was in effect on January 1, 1979, and
(2) the foundation managers shall furnish copies of the annual return under this section to such State officials, at such times, and under such conditions, as the Secretary may by regulations prescribe.
Nothing in paragraph (1) shall require the inclusion of the name and address of any recipient (other than a disqualified person within the meaning of section 4946) of 1 or more charitable gifts or grants made by the foundation to such recipient as an indigent or needy person if the aggregate of such gifts or grants made by the foundation to such recipient during the year does not exceed $1,000.
(d) Section to apply to nonexempt charitable trusts and nonexempt private foundations
The following organizations shall comply with the requirements of this section in the same manner as organizations described in section 501(c)(3) which are exempt from tax under section 501(a):
(1) Nonexempt charitable trusts
A trust described in section 4947(a)(1) (relating to nonexempt charitable trusts).
(2) Nonexempt private foundations
A private foundation which is not exempt from tax under section 501(a).
(e) Special rules relating to lobbying activities
(1) Reporting requirements
(A) In general
If this subsection applies to an organization for any taxable year, such organization—
(i) shall include on any return required to be filed under subsection (a) for such year information setting forth the total expenditures of the organization to which section 162(e)(1) applies and the total amount of the dues or other similar amounts paid to the organization to which such expenditures are allocable, and
(ii) except as provided in paragraphs (2)(A)(i) and (3), shall, at the time of assessment or payment of such dues or other similar amounts, provide notice to each person making such payment which contains a reasonable estimate of the portion of such dues or other similar amounts to which such expenditures are so allocable.
(B) Organizations to which subsection applies
(i) In general
This subsection shall apply to any organization which is exempt from taxation under section 501 other than an organization described in section 501(c)(3).
(ii) Special rule for in-house expenditures
This subsection shall not apply to the in-house expenditures (within the meaning of section 162(e)(4)(B)(ii)) of an organization for a taxable year if such expenditures do not exceed $2,000. In determining whether a taxpayer exceeds the $2,000 limit under this clause, there shall not be taken into account overhead costs otherwise allocable to activities described in subparagraphs (A) and (D) of section 162(e)(1).
(iii) Coordination with section 527(f)
This subsection shall not apply to any amount on which tax is imposed by reason of section 527(f).
(C) Allocation
For purposes of this paragraph—
(i) In general
Expenditures to which section 162(e)(1) applies shall be treated as paid out of dues or other similar amounts to the extent thereof.
(ii) Carryover of lobbying expenditures in excess of dues
If expenditures to which section 162(e)(1) applies exceed the dues or other similar amounts for any taxable year, such excess shall be treated as expenditures to which section 162(e)(1) applies which are paid or incurred by the organization during the following taxable year.
(2) Tax imposed where organization does not notify
(A) In general
If an organization—
(i) elects not to provide the notices described in paragraph (1)(A) for any taxable year, or
(ii) fails to include in such notices the amount allocable to expenditures to which section 162(e)(1) applies (determined on the basis of actual amounts rather than the reasonable estimates under paragraph (1)(A)(ii)),
then there is hereby imposed on such organization for such taxable year a tax in an amount equal to the product of the highest rate of tax imposed by section 11 for the taxable year and the aggregate amount not included in such notices by reason of such election or failure.
(B) Waiver where future adjustments made
The Secretary may waive the tax imposed by subparagraph (A)(ii) for any taxable year if the organization agrees to adjust its estimates under paragraph (1)(A)(ii) for the following taxable year to correct any failures.
(C) Tax treated as income tax
For purposes of this title, the tax imposed by subparagraph (A) shall be treated in the same manner as a tax imposed by
(3) Exception where dues generally nondeductible
Paragraph (1)(A) shall not apply to an organization which establishes to the satisfaction of the Secretary that substantially all of the dues or other similar amounts paid by persons to such organization are not deductible without regard to section 162(e).
(f) Certain organizations described in section 501(c)(4)
Every organization described in section 501(c)(4) which is subject to the requirements of subsection (a) shall include on the return required under subsection (a)—
(1) the information referred to in paragraphs (11), (12) and (13) of subsection (b) with respect to such organization, and
(2) in the case of the first such return filed by such an organization after submitting a notice to the Secretary under section 506(a), such information as the Secretary shall by regulation require in support of the organization's treatment as an organization described in section 501(c)(4).
(g) Returns required by political organizations
(1) In general
This section shall apply to a political organization (as defined by section 527(e)(1)) which has gross receipts of $25,000 or more for the taxable year. In the case of a political organization which is a qualified State or local political organization (as defined in section 527(e)(5)), the preceding sentence shall be applied by substituting "$100,000" for "$25,000".
(2) Annual returns
Political organizations described in paragraph (1) shall file an annual return—
(A) containing the information required, and complying with the other requirements, under subsection (a)(1) for organizations exempt from taxation under section 501(a), with such modifications as the Secretary considers appropriate to require only information which is necessary for the purposes of carrying out section 527, and
(B) containing such other information as the Secretary deems necessary to carry out the provisions of this subsection.
(3) Mandatory exceptions from filing
Paragraph (2) shall not apply to an organization—
(A) which is a State or local committee of a political party, or political committee of a State or local candidate,
(B) which is a caucus or association of State or local officials,
(C) which is an authorized committee (as defined in section 301(6) of the Federal Election Campaign Act of 1971) of a candidate for Federal office,
(D) which is a national committee (as defined in section 301(14) of the Federal Election Campaign Act of 1971) of a political party,
(E) which is a United States House of Representatives or United States Senate campaign committee of a political party committee,
(F) which is required to report under the Federal Election Campaign Act of 1971 as a political committee (as defined in section 301(4) of such Act), or
(G) to which section 527 applies for the taxable year solely by reason of subsection (f)(1) of such section.
(4) Discretionary exception
The Secretary may relieve any organization required under paragraph (2) to file an information return from filing such a return if the Secretary determines that such filing is not necessary to the efficient administration of the internal revenue laws.
(h) Controlling organizations
Each controlling organization (within the meaning of section 512(b)(13)) which is subject to the requirements of subsection (a) shall include on the return required under subsection (a)—
(1) any interest, annuities, royalties, or rents received from each controlled entity (within the meaning of section 512(b)(13)),
(2) any loans made to each such controlled entity, and
(3) any transfers of funds between such controlling organization and each such controlled entity.
(i) Additional notification requirements
Any organization the gross receipts of which in any taxable year result in such organization being referred to in subsection (a)(3)(A)(ii) or (a)(3)(B)—
(1) shall furnish annually, in electronic form, and at such time and in such manner as the Secretary may by regulations prescribe, information setting forth—
(A) the legal name of the organization,
(B) any name under which such organization operates or does business,
(C) the organization's mailing address and Internet web site address (if any),
(D) the organization's taxpayer identification number,
(E) the name and address of a principal officer, and
(F) evidence of the continuing basis for the organization's exemption from the filing requirements under subsection (a)(1), and
(2) upon the termination of the existence of the organization, shall furnish notice of such termination.
(j) Loss of exempt status for failure to file return or notice
(1) In general
(A) Notice
If an organization described in subsection (a)(1) or (i) fails to file the annual return or notice required under either subsection for 2 consecutive years, the Secretary shall notify the organization—
(i) that the Internal Revenue Service has no record of such a return or notice from such organization for 2 consecutive years, and
(ii) about the revocation that will occur under subparagraph (B) if the organization fails to file such a return or notice by the due date for the next such return or notice required to be filed.
The notification under the preceding sentence shall include information about how to comply with the filing requirements under subsections (a)(1) and (i).
(B) Revocation
If an organization described in subsection (a)(1) or (i) fails to file an annual return or notice required under either subsection for 3 consecutive years, such organization's status as an organization exempt from tax under section 501(a) shall be considered revoked on and after the date set by the Secretary for the filing of the third annual return or notice. The Secretary shall publish and maintain a list of any organization the status of which is so revoked.
(2) Application necessary for reinstatement
Any organization the tax-exempt status of which is revoked under paragraph (1) must apply in order to obtain reinstatement of such status regardless of whether such organization was originally required to make such an application.
(3) Retroactive reinstatement if reasonable cause shown for failure
If, upon application for reinstatement of status as an organization exempt from tax under section 501(a), an organization described in paragraph (1) can show to the satisfaction of the Secretary evidence of reasonable cause for the failure described in such paragraph, the organization's exempt status may, in the discretion of the Secretary, be reinstated effective from the date of the revocation under such paragraph.
(k) Additional provisions relating to sponsoring organizations
Every organization described in section 4966(d)(1) shall, on the return required under subsection (a) for the taxable year—
(1) list the total number of donor advised funds (as defined in section 4966(d)(2)) it owns at the end of such taxable year,
(2) indicate the aggregate value of assets held in such funds at the end of such taxable year, and
(3) indicate the aggregate contributions to and grants made from such funds during such taxable year.
(l) Additional provisions relating to supporting organizations
Every organization described in section 509(a)(3) shall, on the return required under subsection (a)—
(1) list the supported organizations (as defined in section 509(f)(3)) with respect to which such organization provides support,
(2) indicate whether the organization meets the requirements of clause (i), (ii), or (iii) of section 509(a)(3)(B), and
(3) certify that the organization meets the requirements of section 509(a)(3)(C).
(m) Additional information required from CO–OP insurers
An organization described in section 501(c)(29) shall include on the return required under subsection (a) the following information:
(1) The amount of the reserves required by each State in which the organization is licensed to issue qualified health plans.
(2) The amount of reserves on hand.
(n) Mandatory electronic filing
Any organization required to file a return under this section shall file such return in electronic form.
(o) Cross references
For provisions relating to statements, etc., regarding exempt status of organizations, see section 6001.
For reporting requirements as to certain liquidations, dissolutions, terminations, and contractions, see section 6043(b). For provisions relating to penalties for failure to file a return required by this section, see section 6652(c).
For provisions relating to information required in connection with certain plans of deferred compensation, see section 6058.
(Aug. 16, 1954, ch. 736,
Inflation Adjusted Items for Certain Years
For inflation adjustment of certain items in this section, see Revenue Procedures listed in a table under
Editorial Notes
References in Text
The Federal Election Campaign Act of 1971, referred to in subsec. (g)(3)(F), is
Codification
Sections 1205(b)(1), 1223(a), (b), 1235(a)(1), and 1245(a), (b) of
Amendments
2019—Subsec. (j)(1).
Subsecs. (n), (o).
2018—Subsec. (b)(14).
Subsec. (b)(15)(B).
2017—Subsec. (e)(1)(B)(ii).
2015—Subsec. (f).
2010—Subsec. (b)(10)(D).
Subsec. (b)(15), (16).
Subsecs. (m), (n).
2008—Subsec. (b)(14), (15).
2006—Subsec. (a)(1).
Subsec. (a)(2).
Subsec. (a)(3).
Subsec. (a)(3)(B).
Subsec. (h).
Subsec. (i).
Subsec. (j).
Subsec. (k).
Subsec. (l).
Subsec. (m).
2002—Subsec. (g).
"(1) such organization shall file a return—
"(A) containing the information required, and complying with the other requirements, under subsection (a)(1) for organizations exempt from taxation under section 501(a), and
"(B) containing such other information as the Secretary deems necessary to carry out the provisions of this subsection, and
"(2) subsection (a)(2)(B) (relating to discretionary exceptions) shall apply with respect to such return."
2000—Subsecs. (g), (h).
1998—Subsec. (c).
1997—Subsec. (b)(10).
Subsec. (b)(10)(C).
Subsec. (b)(11).
1996—Subsec. (b)(10) to (14).
Subsec. (e)(1)(B)(i).
Subsec. (e)(1)(B)(iii).
Subsecs. (f), (g).
1993—Subsecs. (e), (f).
1987—Subsec. (b)(9), (10).
1986—Subsec. (e).
1980—Subsecs. (c) to (e).
1976—Subsec. (a)(1), (2).
Subsec. (b).
1974—Subsec. (c).
1969—Subsec. (a).
Subsec. (b)(3).
Subsec. (b)(4).
Subsec. (b)(5).
Subsec. (b)(6).
Subsec. (b)(7).
Subsec. (b)(8).
Subsec. (c).
1958—Subsec. (b)(8).
Statutory Notes and Related Subsidiaries
Effective Date of 2019 Amendment
Amendment by section 3101(a) of
Effective Date of 2017 Amendment
Amendment by
Effective Date of 2015 Amendment
Amendment by
Effective Date of 2010 Amendment
Amendment by section 9007(d) of
Effective Date of 2008 Amendment
Effective Date of 2006 Amendment
Amendment by
Effective Date of 2002 Amendment
Amendment by
Effective Date of 2000 Amendment
Amendment by
Effective Date of 1998 Amendment
Amendment by
Effective Date of 1997 Amendment
Amendment by
Effective Date of 1996 Amendments
Amendment by
Effective Date of 1993 Amendment
Amendment by
Effective Date of 1987 Amendment
Effective Date of 1986 Amendment
Amendment by
Effective Date of 1980 Amendment
Effective Date of 1976 Amendment
Amendment by section 1307(a)(4) of
Effective Date of 1974 Amendment
Amendment by
Effective Date of 1969 Amendment
Amendment by
Effective Date of 1958 Amendment
Amendment by
Savings Provision
For provisions that amendment made by section 401(d)(6)(B)(v) of
For provisions that nothing in amendment by section 401(d)(6)(B)(v) of
Secretarial Outreach Requirements
"(1)
"(A) by mail, in the case of any organization the identity and address of which is included in the list of exempt organizations maintained by the Secretary, and
"(B) by Internet or other means of outreach, in the case of any other organization.
"(2)
§6034. Returns by certain trusts
(a) Split-interest trusts
Every trust described in section 4947(a)(2) shall furnish such information with respect to the taxable year as the Secretary may by forms or regulations require.
(b) Trusts claiming certain charitable deductions
(1) In general
Every trust not required to file a return under subsection (a) but claiming a deduction under section 642(c) for the taxable year shall furnish such information with respect to such taxable year as the Secretary may by forms or regulations prescribe, including—
(A) the amount of the deduction taken under section 642(c) within such year,
(B) the amount paid out within such year which represents amounts for which deductions under section 642(c) have been taken in prior years,
(C) the amount for which such deductions have been taken in prior years but which has not been paid out at the beginning of such year,
(D) the amount paid out of principal in the current and prior years for the purposes described in section 642(c),
(E) the total income of the trust within such year and the expenses attributable thereto, and
(F) a balance sheet showing the assets, liabilities, and net worth of the trust as of the beginning of such year.
(2) Exceptions
Paragraph (1) shall not apply to a trust for any taxable year if—
(A) all the net income for such year, determined under the applicable principles of the law of trusts, is required to be distributed currently to the beneficiaries, or
(B) the trust is described in section 4947(a)(1).
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
2006—
1986—Subsec. (c).
1980—
Subsec. (a).
Subsec. (b).
1976—Subsec. (a).
1969—Subsec. (a).
Subsec. (c).
Statutory Notes and Related Subsidiaries
Effective Date of 2006 Amendment
Effective Date of 1986 Amendment
Amendment by
Effective Date of 1980 Amendment
Amendment by
Effective Date of 1969 Amendment
Amendment by
§6034A. Information to beneficiaries of estates and trusts
(a) General rule
The fiduciary of any estate or trust required to file a return under section 6012(a) for any taxable year shall, on or before the date on which such return was required to be filed, furnish to each beneficiary (or nominee thereof)—
(1) who receives a distribution from such estate or trust with respect to such taxable year, or
(2) to whom any item with respect to such taxable year is allocated,
a statement containing such information required to be shown on such return as the Secretary may prescribe.
(b) Nominee reporting
Any person who holds an interest in an estate or trust as a nominee for another person—
(1) shall furnish to the estate or trust, in the manner prescribed by the Secretary, the name and address of such other person, and any other information for the taxable year as the Secretary may by form and regulations prescribe, and
(2) shall furnish in the manner prescribed by the Secretary to such other person the information provided by the estate or trust under subsection (a).
(c) Beneficiary's return must be consistent with estate or trust return or Secretary notified of inconsistency
(1) In general
A beneficiary of any estate or trust to which subsection (a) applies shall, on such beneficiary's return, treat any reported item in a manner which is consistent with the treatment of such item on the applicable entity's return.
(2) Notification of inconsistent treatment
(A) In general
In the case of any reported item, if—
(i)(I) the applicable entity has filed a return but the beneficiary's treatment on such beneficiary's return is (or may be) inconsistent with the treatment of the item on the applicable entity's return, or
(II) the applicable entity has not filed a return, and
(ii) the beneficiary files with the Secretary a statement identifying the inconsistency,
paragraph (1) shall not apply to such item.
(B) Beneficiary receiving incorrect information
A beneficiary shall be treated as having complied with clause (ii) of subparagraph (A) with respect to a reported item if the beneficiary—
(i) demonstrates to the satisfaction of the Secretary that the treatment of the reported item on the beneficiary's return is consistent with the treatment of the item on the statement furnished under subsection (a) to the beneficiary by the applicable entity, and
(ii) elects to have this paragraph apply with respect to that item.
(3) Effect of failure to notify
In any case—
(A) described in subparagraph (A)(i)(I) of paragraph (2), and
(B) in which the beneficiary does not comply with subparagraph (A)(ii) of paragraph (2),
any adjustment required to make the treatment of the items by such beneficiary consistent with the treatment of the items on the applicable entity's return shall be treated as arising out of mathematical or clerical errors and assessed according to section 6213(b)(1). Paragraph (2) of section 6213(b) shall not apply to any assessment referred to in the preceding sentence.
(4) Definitions
For purposes of this subsection—
(A) Reported item
The term "reported item" means any item for which information is required to be furnished under subsection (a).
(B) Applicable entity
The term "applicable entity" means the estate or trust of which the taxpayer is the beneficiary.
(5) Addition to tax for failure to comply with section
For addition to tax in the case of a beneficiary's negligence in connection with, or disregard of, the requirements of this section, see part II of subchapter A of
(Added
Editorial Notes
Amendments
1997—Subsec. (c).
1986—Subsec. (a).
Subsec. (b).
Statutory Notes and Related Subsidiaries
Effective Date of 1997 Amendment
Effective Date of 1986 Amendment
Amendment by section 1501(c)(15) of
Effective Date
Plan Amendments Not Required Until January 1, 1989
For provisions directing that if any amendments made by subtitle A or subtitle C of title XI [§§1101–1147 and 1171–1177] or title XVIII [§§1800–1899A] of
§6035. Basis information to persons acquiring property from decedent
(a) Information with respect to property acquired from decedents
(1) In general
The executor of any estate required to file a return under section 6018(a) shall furnish to the Secretary and to each person acquiring any interest in property included in the decedent's gross estate for Federal estate tax purposes a statement identifying the value of each interest in such property as reported on such return and such other information with respect to such interest as the Secretary may prescribe.
(2) Statements by beneficiaries
Each person required to file a return under section 6018(b) shall furnish to the Secretary and to each other person who holds a legal or beneficial interest in the property to which such return relates a statement identifying the information described in paragraph (1).
(3) Time for furnishing statement
(A) In general
Each statement required to be furnished under paragraph (1) or (2) shall be furnished at such time as the Secretary may prescribe, but in no case at a time later than the earlier of—
(i) the date which is 30 days after the date on which the return under section 6018 was required to be filed (including extensions, if any), or
(ii) the date which is 30 days after the date such return is filed.
(B) Adjustments
In any case in which there is an adjustment to the information required to be included on a statement filed under paragraph (1) or (2) after such statement has been filed, a supplemental statement under such paragraph shall be filed not later than the date which is 30 days after such adjustment is made.
(b) Regulations
The Secretary shall prescribe such regulations as necessary to carry out this section, including regulations relating to—
(1) the application of this section to property with regard to which no estate tax return is required to be filed, and
(2) situations in which the surviving joint tenant or other recipient may have better information than the executor regarding the basis or fair market value of the property.
(Added
Editorial Notes
Prior Provisions
A prior section 6035, act Aug. 16, 1954, ch. 736,
Statutory Notes and Related Subsidiaries
Effective Date
Section applicable to property with respect to which an estate tax return is filed after July 31, 2015, see section 2004(d) of
§6036. Notice of qualification as executor or receiver
Every receiver, trustee in a case under
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
1980—
1976—
Statutory Notes and Related Subsidiaries
Effective Date of 1980 Amendment
Amendment by
§6037. Return of S corporation
(a) In general
Every S corporation shall make a return for each taxable year, stating specifically the items of its gross income and the deductions allowable by subtitle A, the names and addresses of all persons owning stock in the corporation at any time during the taxable year, the number of shares of stock owned by each shareholder at all times during the taxable year, the amount of money and other property distributed by the corporation during the taxable year to each shareholder, the date of each such distribution, each shareholder's pro rata share of each item of the corporation for the taxable year, and such other information, for the purpose of carrying out the provisions of subchapter S of
(b) Copies to shareholders
Each S corporation required to file a return under subsection (a) for any taxable year shall (on or before the day on which the return for such taxable year was filed) furnish to each person who is a shareholder at any time during such taxable year a copy of such information shown on such return as may be required by regulations.
(c) Shareholder's return must be consistent with corporate return or Secretary notified of inconsistency
(1) In general
A shareholder of an S corporation shall, on such shareholder's return, treat a subchapter S item in a manner which is consistent with the treatment of such item on the corporate return.
(2) Notification of inconsistent treatment
(A) In general
In the case of any subchapter S item, if—
(i)(I) the corporation has filed a return but the shareholder's treatment on his return is (or may be) inconsistent with the treatment of the item on the corporate return, or
(II) the corporation has not filed a return, and
(ii) the shareholder files with the Secretary a statement identifying the inconsistency,
paragraph (1) shall not apply to such item.
(B) Shareholder receiving incorrect information
A shareholder shall be treated as having complied with clause (ii) of subparagraph (A) with respect to a subchapter S item if the shareholder—
(i) demonstrates to the satisfaction of the Secretary that the treatment of the subchapter S item on the shareholder's return is consistent with the treatment of the item on the schedule furnished to the shareholder by the corporation, and
(ii) elects to have this paragraph apply with respect to that item.
(3) Effect of failure to notify
In any case—
(A) described in subparagraph (A)(i)(I) of paragraph (2), and
(B) in which the shareholder does not comply with subparagraph (A)(ii) of paragraph (2),
any adjustment required to make the treatment of the items by such shareholder consistent with the treatment of the items on the corporate return shall be treated as arising out of mathematical or clerical errors and assessed according to section 6213(b)(1). Paragraph (2) of section 6213(b) shall not apply to any assessment referred to in the preceding sentence.
(4) Subchapter S item
For purposes of this subsection, the term "subchapter S item" means any item of an S corporation to the extent that regulations prescribed by the Secretary provide that, for purposes of this subtitle, such item is more appropriately determined at the corporation level than at the shareholder level.
(5) Addition to tax for failure to comply with section
For addition to tax in the case of a shareholder's negligence in connection with, or disregard of, the requirements of this section, see part II of subchapter A of
(Added
Editorial Notes
Prior Provisions
A prior section 6037 was renumbered
Amendments
1996—Subsec. (c).
1984—
1982—
1976—
Statutory Notes and Related Subsidiaries
Effective Date of 1996 Amendment
Amendment by
Effective Date of 1984 Amendment
Amendment by
Effective Date of 1982 Amendment
Amendment by
Effective Date
Section applicable only with respect to taxable years beginning after Dec. 31, 1957, see section 64(e) of
§6038. Information reporting with respect to certain foreign corporations and partnerships
(a) Requirement
(1) In general
Every United States person shall furnish, with respect to any foreign business entity which such person controls, such information as the Secretary may prescribe relating to—
(A) the name, the principal place of business, and the nature of business of such entity, and the country under whose laws such entity is incorporated (or organized in the case of a partnership);
(B) in the case of a foreign corporation, its post-1986 undistributed earnings (as defined in section 902(c)); 1
(C) a balance sheet for such entity listing assets, liabilities, and capital;
(D) transactions between such entity and—
(i) such person,
(ii) any corporation or partnership which such person controls, and
(iii) any United States person owning, at the time the transaction takes place—
(I) in the case of a foreign corporation, 10 percent or more of the value of any class of stock outstanding of such corporation, and
(II) in the case of a foreign partnership, at least a 10-percent interest in such partnership; and
(E)(i) in the case of a foreign corporation, a description of the various classes of stock outstanding, and a list showing the name and address of, and number of shares held by, each United States person who is a shareholder of record owning at any time during the annual accounting period 5 percent or more in value of any class of stock outstanding of such foreign corporation, and
(ii) information comparable to the information described in clause (i) in the case of a foreign partnership.
The Secretary may also require the furnishing of any other information which is similar or related in nature to that specified in the preceding sentence or which the Secretary determines to be appropriate to carry out the provisions of this title.
(2) Period for which information is to be furnished, etc.
The information required under paragraph (1) shall be furnished for the annual accounting period of the foreign business entity ending with or within the United States person's taxable year. The information so required shall be furnished at such time and in such manner as the Secretary shall prescribe.
(3) Limitation
No information shall be required to be furnished under this subsection with respect to any foreign business entity for any annual accounting period unless the Secretary has prescribed the furnishing of such information on or before the first day of such annual accounting period.
(4) Information required from certain shareholders in certain cases
If any foreign corporation is treated as a controlled foreign corporation for any purpose under subpart F of part III of subchapter N of
(5) Information required from 10-percent partner of controlled foreign partnership
In the case of a foreign partnership which is controlled by United States persons holding at least 10-percent interests (but not by any one United States person), the Secretary may require each United States person who holds a 10-percent interest in such partnership to furnish information relating to such partnership, including information relating to such partner's ownership interests in the partnership and allocations to such partner of partnership items.
(b) Dollar penalty for failure to furnish information
(1) In general
If any person fails to furnish, within the time prescribed under paragraph (2) of subsection (a), any information with respect to any foreign business entity required under paragraph (1) of subsection (a), such person shall pay a penalty of $10,000 for each annual accounting period with respect to which such failure exists.
(2) Increase in penalty where failure continues after notification
If any failure described in paragraph (1) continues for more than 90 days after the day on which the Secretary mails notice of such failure to the United States person, such person shall pay a penalty (in addition to the amount required under paragraph (1)) of $10,000 for each 30-day period (or fraction thereof) during which such failure continues with respect to any annual accounting period after the expiration of such 90-day period. The increase in any penalty under this paragraph shall not exceed $50,000.
(c) Penalty of reducing foreign tax credit
(1) In general
If a United States person fails to furnish, within the time prescribed under paragraph (2) of subsection (a), any information with respect to any foreign business entity required under paragraph (1) of subsection (a), then—
(A) in applying section 901 (relating to taxes of foreign countries and possessions of the United States) to such United States person for the taxable year, the amount of taxes (other than taxes reduced under subparagraph (B)) paid or deemed paid (other than those deemed paid under section 904(c)) to any foreign country or possession of the United States for the taxable year shall be reduced by 10 percent, and
(B) in the case of a foreign business entity which is a foreign corporation, in applying section 960 to any such United States person which is a corporation (or to any person who acquires from any other person any portion of the interest of such other person in any such foreign corporation, but only to the extent of such portion) for any taxable year, the amount of taxes paid or deemed paid by each foreign corporation with respect to which such person is required to furnish information during the annual accounting period or periods with respect to which such information is required under paragraph (2) of subsection (a) shall be reduced by 10 percent.
If such failure continues 90 days or more after notice of such failure by the Secretary to the United States person, then the amount of the reduction under this paragraph shall be 10 percent plus an additional 5 percent for each 3-month period, or fraction thereof, during which such failure to furnish information continues after the expiration of such 90-day period.
(2) Limitation
The amount of the reduction under paragraph (1) for each failure to furnish information with respect to a foreign business entity required under subsection (a)(1) shall not exceed whichever of the following amounts is the greater:
(A) $10,000, or
(B) the income of the foreign business entity for its annual accounting period with respect to which the failure occurs.
(3) Coordination with subsection (b)
The amount of the reduction which (but for this paragraph) would be made under paragraph (1) with respect to any annual accounting period shall be reduced by the amount of the penalty imposed by subsection (b) with respect to such period.
(4) Special rules
(A) No taxes shall be reduced under this subsection more than once for the same failure.
(B) For purposes of this subsection and subsection (b), the time prescribed under paragraph (2) of subsection (a) to furnish information (and the beginning of the 90-day period after notice by the Secretary) shall be treated as being not earlier than the last day on which (as shown to the satisfaction of the Secretary) reasonable cause existed for failure to furnish such information.
(d) Two or more persons required to furnish information with respect to same foreign corporation
Where, but for this subsection, two or more United States persons would be required to furnish information under subsection (a) with respect to the same foreign business entity for the same period, the Secretary may by regulations provide that such information shall be required only from one person. To the extent practicable, the determination of which person shall furnish the information shall be made on the basis of actual ownership of stock.
(e) Definitions
For purposes of this section—
(1) Foreign business entity
The term "foreign business entity" means a foreign corporation and a foreign partnership.
(2) Control of corporation
A person is in control of a corporation if such person owns stock possessing more than 50 percent of the total combined voting power of all classes of stock entitled to vote, or more than 50 percent of the total value of shares of all classes of stock, of a corporation. If a person is in control (within the meaning of the preceding sentence) of a corporation which in turn owns more than 50 percent of the total combined voting power of all classes of stock entitled to vote of another corporation, or owns more than 50 percent of the total value of the shares of all classes of stock of another corporation, then such person shall be treated as in control of such other corporation. For purposes of this paragraph, the rules prescribed by section 318(a) for determining ownership of stock shall apply; except that—
(A) subparagraphs (A), (B), and (C) of section 318(a)(3) shall not be applied so as to consider a United States person as owning stock which is owned by a person who is not a United States person, and
(B) in applying subparagraph (C) of section 318(a)(2), the phrase "10 percent" shall be substituted for the phrase "50 percent" used in subparagraph (C).
(3) Partnership-related definitions
(A) Control
A person is in control of a partnership if such person owns directly or indirectly more than a 50 percent interest in such partnership.
(B) 50-percent interest
For purposes of subparagraph (A), a 50-percent interest in a partnership is—
(i) an interest equal to 50 percent of the capital interest, or 50 percent of the profits interest, in such partnership, or
(ii) to the extent provided in regulations, an interest to which 50 percent of the deductions or losses of such partnership are allocated.
For purposes of the preceding sentence, rules similar to the rules of section 267(c) (other than paragraph (3)) shall apply.
(C) 10-percent interest
A 10-percent interest in a partnership is an interest which would be described in subparagraph (B) if "10 percent" were substituted for "50 percent" each place it appears.
(4) Annual accounting period
The annual accounting period of a foreign business entity is the annual period on the basis of which such foreign business entity regularly computes its income in keeping its books. In the case of a specified foreign business entity (as defined in section 898), the taxable year of such foreign business entity shall be treated as its annual accounting period.
(f) Cross references
(1) For provisions relating to penalties for violations of this section, see section 7203.
(2) For definition of the term "United States person", see section 7701(a)(30).
(Added
Editorial Notes
References in Text
Section 902, referred to in subsec. (a)(1)(B), was repealed by
Prior Provisions
A prior section 6038 was renumbered
Amendments
2017—Subsec. (c)(1)(B).
Subsec. (c)(4)(C).
1998—Subsec. (a)(2).
Subsec. (a)(3).
Subsec. (e)(4).
1997—
Subsec. (a).
Subsec. (a)(1).
Subsec. (a)(2), (3).
Subsec. (a)(5).
Subsec. (b).
Subsec. (c)(1).
Subsec. (c)(2).
Subsec. (d).
Subsec. (e).
1996—Subsec. (a)(1)(E), (F).
Subsec. (e).
Subsec. (e)(2).
Subsec. (f).
1990—Subsec. (e)(2).
1989—Subsec. (a)(1).
Subsec. (a)(4).
1986—Subsec. (a)(1)(B).
Subsec. (a)(1)(F).
Subsec. (c)(4)(C).
1982—Subsec. (a)(1).
Subsec. (b).
Subsec. (c).
Subsecs. (d), (e).
1976—Subsecs. (a), (b).
Subsec. (b)(1).
Subsec. (c).
1964—Subsec. (d)(1).
1962—Subsec. (a)(1).
Subsec. (a)(2).
Subsec. (a)(3).
Subsec. (b).
Subsec. (c).
Subsec. (d).
Subsec. (e).
Statutory Notes and Related Subsidiaries
Effective Date of 2017 Amendment
Amendment by
Effective Date of 1998 Amendment
Amendment by
Effective Date of 1997 Amendment
Amendment by
Effective Date of 1990 Amendment
Amendment by
Effective Date of 1989 Amendment
Effective Date of 1986 Amendment
Amendment by section 1202(c) of
Amendment by section 1245(b)(5) of
Effective Date of 1982 Amendment
Effective Date of 1964 Amendment
Amendment by
Effective Date of 1962 Amendment
Effective Date
1 See References in Text note below.
§6038A. Information with respect to certain foreign-owned corporations
(a) Requirement
If, at any time during a taxable year, a corporation (hereinafter in this section referred to as the "reporting corporation")—
(1) is a domestic corporation, and
(2) is 25-percent foreign-owned,
such corporation shall furnish, at such time and in such manner as the Secretary shall by regulations prescribe, the information described in subsection (b) and such corporation shall maintain (in the location, in the manner, and to the extent prescribed in regulations) such records as may be appropriate to determine the correct treatment of transactions with related parties as the Secretary shall by regulations prescribe (or shall cause another person to so maintain such records).
(b) Required information
(1) In general
For purposes of subsection (a), the information described in this subsection is such information as the Secretary prescribes by regulations relating to—
(A) the name, principal place of business, nature of business, and country or countries in which organized or resident, of each person which—
(i) is a related party to the reporting corporation, and
(ii) had any transaction with the reporting corporation during its taxable year,
(B) the manner in which the reporting corporation is related to each person referred to in subparagraph (A), and
(C) transactions between the reporting corporation and each foreign person which is a related party to the reporting corporation.
(2) Additional information regarding base erosion payments
For purposes of subsection (a) and section 6038C, if the reporting corporation or the foreign corporation to whom section 6038C applies is an applicable taxpayer, the information described in this subsection shall include—
(A) such information as the Secretary determines necessary to determine the base erosion minimum tax amount, base erosion payments, and base erosion tax benefits of the taxpayer for purposes of section 59A for the taxable year, and
(B) such other information as the Secretary determines necessary to carry out such section.
For purposes of this paragraph, any term used in this paragraph which is also used in section 59A shall have the same meaning as when used in such section.
(c) Definitions
For purposes of this section—
(1) 25-percent foreign-owned
A corporation is 25-percent foreign-owned if at least 25 percent of—
(A) the total voting power of all classes of stock of such corporation entitled to vote, or
(B) the total value of all classes of stock of such corporation,
is owned at any time during the taxable year by 1 foreign person (hereinafter in this section referred to as a "25-percent foreign shareholder").
(2) Related party
The term "related party" means—
(A) any 25-percent foreign shareholder of the reporting corporation,
(B) any person who is related (within the meaning of section 267(b) or 707(b)(1)) to the reporting corporation or to a 25-percent foreign shareholder of the reporting corporation, and
(C) any other person who is related (within the meaning of section 482) to the reporting corporation.
(3) Foreign person
The term "foreign person" means any person who is not a United States person. For purposes of the preceding sentence, the term "United States person" has the meaning given to such term by section 7701(a)(30), except that any individual who is a citizen of any possession of the United States (but not otherwise a citizen of the United States) and who is not a resident of the United States shall not be treated as a United States person.
(4) Records
The term "records" includes any books, papers, or other data.
(5) Section 318 to apply
Section 318 shall apply for purposes of paragraphs (1) and (2), except that—
(A) "10 percent" shall be substituted for "50 percent" in section 318(a)(2)(C), and
(B) subparagraphs (A), (B), and (C) of section 318(a)(3) shall not be applied so as to consider a United States person as owning stock which is owned by a person who is not a United States person.
(d) Penalty for failure to furnish information or maintain records
(1) In general
If a reporting corporation—
(A) fails to furnish (within the time prescribed by regulations) any information described in subsection (b), or
(B) fails to maintain (or cause another to maintain) records as required by subsection (a),
such corporation shall pay a penalty of $25,000 for each taxable year with respect to which such failure occurs.
(2) Increase in penalty where failure continues after notification
If any failure described in paragraph (1) continues for more than 90 days after the day on which the Secretary mails notice of such failure to the reporting corporation, such corporation shall pay a penalty (in addition to the amount required under paragraph (1)) of $25,000 for each 30-day period (or fraction thereof) during which such failure continues after the expiration of such 90-day period.
(3) Reasonable cause
For purposes of this subsection, the time prescribed by regulations to furnish information or maintain records (and the beginning of the 90-day period after notice by the Secretary) shall be treated as not earlier than the last day on which (as shown to the satisfaction of the Secretary) reasonable cause existed for failure to furnish the information or maintain the records.
(e) Enforcement of requests for certain records
(1) Agreement to treat corporation as agent
The rules of paragraph (3) shall apply to any transaction between the reporting corporation and any related party who is a foreign person unless such related party agrees (in such manner and at such time as the Secretary shall prescribe) to authorize the reporting corporation to act as such related party's limited agent solely for purposes of applying sections 7602, 7603, and 7604 with respect to any request by the Secretary to examine records or produce testimony related to any such transaction or with respect to any summons by the Secretary for such records or testimony. The appearance of persons or production of records by reason of the reporting corporation being such an agent shall not subject such persons or records to legal process for any purpose other than determining the correct treatment under this title of any transaction between the reporting corporation and such related party.
(2) Rules where information not furnished
If—
(A) for purposes of determining the correct treatment under this title of any transaction between the reporting corporation and a related party who is a foreign person, the Secretary issues a summons to such corporation to produce (either directly or as agent for such related party) any records or testimony,
(B) such summons is not quashed in a proceeding begun under paragraph (4) and is not determined to be invalid in a proceeding begun under section 7604(b) to enforce such summons, and
(C) the reporting corporation does not substantially comply in a timely manner with such summons and the Secretary has sent by certified or registered mail a notice to such reporting corporation that such reporting corporation has not so substantially complied,
the Secretary may apply the rules of paragraph (3) with respect to such transaction (whether or not the Secretary begins a proceeding to enforce such summons). If the reporting corporation fails to maintain (or cause another to maintain) records as required by subsection (a), and by reason of that failure, the summons is quashed in a proceeding described in subparagraph (B) or the reporting corporation is not able to provide the records requested in the summons, the Secretary may apply the rules of paragraph (3) with respect to any transaction to which the records relate.
(3) Applicable rules in cases of noncompliance
If the rules of this paragraph apply to any transaction—
(A) the amount of the deduction allowed under subtitle A for any amount paid or incurred by the reporting corporation to the related party in connection with such transaction, and
(B) the cost to the reporting corporation of any property acquired in such transaction from the related party (or transferred by such corporation in such transaction to the related party),
shall be the amount determined by the Secretary in the Secretary's sole discretion from the Secretary's own knowledge or from such information as the Secretary may obtain through testimony or otherwise.
(4) Judicial proceedings
(A) Proceedings to quash
Notwithstanding any law or rule of law, any reporting corporation to which the Secretary issues a summons referred to in paragraph (2)(A) shall have the right to begin a proceeding to quash such summons not later than the 90th day after such summons was issued. In any such proceeding, the Secretary may seek to compel compliance with such summons.
(B) Review of secretarial determination of noncompliance
Notwithstanding any law or rule of law, any reporting corporation which has been notified by the Secretary that the Secretary has determined that such corporation has not substantially complied with a summons referred to in paragraph (2) shall have the right to begin a proceeding to review such determination not later than the 90th day after the day on which the notice referred to in paragraph (2)(C) was mailed. If such a proceeding is not begun on or before such 90th day, such determination by the Secretary shall be binding and shall not be reviewed by any court.
(C) Jurisdiction
The United States district court for the district in which the person (to whom the summons is issued) resides or is found shall have jurisdiction to hear any proceeding brought under subparagraph (A) or (B). Any order or other determination in such a proceeding shall be treated as a final order which may be appealed.
(D) Suspension of statute of limitations
If the reporting corporation brings an action under subparagraph (A) or (B), the running of any period of limitations under section 6501 (relating to assessment and collection of tax) or under section 6531 (relating to criminal prosecutions) with respect to any affected taxable year shall be suspended for the period during which such proceeding, and appeals therein, are pending. In no event shall any such period expire before the 90th day after the day on which there is a final determination in such proceeding. For purposes of this subparagraph, the term "affected taxable year" means any taxable year if the determination of the amount of tax imposed for such taxable year is affected by the treatment of the transaction to which the summons relates.
(f) Cross reference
For provisions relating to criminal penalties for violation of this section, see section 7203.
(Added
Editorial Notes
Amendments
2017—Subsec. (b).
Subsec. (d)(1), (2).
1996—Subsec. (b)(2) to (4).
Subsec. (e)(4)(D).
1990—Subsec. (a)(1).
Subsec. (c)(3) to (6).
1989—Subsec. (a).
Subsec. (a)(2).
Subsec. (c).
Subsec. (d).
Subsecs. (e), (f).
1986—Subsec. (b)(1).
Subsec. (b)(2).
Subsec. (b)(3).
Subsec. (b)(4).
Subsec. (c)(2).
"(A) 'at least 50 percent' shall be substituted—
"(i) for 'at least 80 percent' each place it appears in section 1563(a)(1), and
"(ii) for 'more than 50 percent' each place it appears in section 1563(a)(2)(B), and
"(B) the determination shall be made without regard to subsections (a)(4), (b)(2)(C), and (e)(3)(C) of section 1563."
1984—Subsec. (c)(1).
1983—Subsec. (c)(2)(B).
Statutory Notes and Related Subsidiaries
Effective Date of 2017 Amendment
Amendment by
Effective Date of 1996 Amendment
Amendment by section 1702(c)(5) of
Effective Date of 1990 Amendment
"(1) any requirement to furnish information under section 6038C(a) of the Internal Revenue Code of 1986 (as added by this section) if the time for furnishing such information under such section is after the date of the enactment of this Act [Nov. 5, 1990],
"(2) any requirement under such section 6038C(a) to maintain records which were in existence on or after March 20, 1990,
"(3) any requirement to authorize a corporation to act as a limited agent under section 6038C(d)(1) of such Code (as so added) if the time for authorizing such action is after the date of the enactment of this Act, and
"(4) any summons issued after such date of enactment,
without regard to when the taxable year (to which the information, records, authorization, or summons relates) began."
Effective Date of 1989 Amendment
Effective Date of 1986 Amendment
Effective Date of 1984 Amendment
Amendment by
Effective Date of 1983 Amendment
Amendment by
Effective Date
Applicability of 1989 Amendment
"(a)
"(1) any requirement to furnish information under section 6038A(a) of the Internal Revenue Code of 1986 (as amended by such section 7403) if the time for furnishing such information under such section is after the date of the enactment of this Act [Nov. 5, 1990],
"(2) any requirement under such section 6038A(a) to maintain records which were in existence on or after March 20, 1990,
"(3) any requirement to authorize a corporation to act as a limited agent under section 6038A(e)(1) of such Code (as so amended) if the time for authorizing such action is after the date of the enactment of this Act, and
"(4) any summons issued after such date of enactment,
without regard to when the taxable year (to which the information, records, authorization, or summons relates) began. Such amendments shall also apply in any case to which they would apply without regard to this section.
"(b)
§6038B. Notice of certain transfers to foreign persons
(a) In general
Each United States person who—
(1) transfers property to—
(A) a foreign corporation in an exchange described in section 332, 351, 354, 355, 356, or 361, or
(B) a foreign partnership in a contribution described in section 721 or in any other contribution described in regulations prescribed by the Secretary, or
(2) makes a distribution described in section 336 to a person who is not a United States person,
shall furnish to the Secretary, at such time and in such manner as the Secretary shall by regulations prescribe, such information with respect to such exchange or distribution as the Secretary may require in such regulations.
(b) Exceptions for certain transfers to foreign partnerships; special rule
(1) Exceptions
Subsection (a)(1)(B) shall apply to a transfer by a United States person to a foreign partnership only if—
(A) the United States person holds (immediately after the transfer) directly or indirectly at least a 10-percent interest (as defined in section 6046A(d)) in the partnership, or
(B) the value of the property transferred (when added to the value of the property transferred by such person or any related person to such partnership or a related partnership during the 12-month period ending on the date of the transfer) exceeds $100,000.
For purposes of the preceding sentence, the value of any transferred property is its fair market value at the time of its transfer.
(2) Special rule
If by reason of an adjustment under section 482 or otherwise, a contribution described in subsection (a)(1) is deemed to have been made, such contribution shall be treated for purposes of this section as having been made not earlier than the date specified by the Secretary.
(c) Penalty for failure to furnish information
(1) In general
If any United States person fails to furnish the information described in subsection (a) at the time and in the manner required by regulations, such person shall pay a penalty equal to 10 percent of the fair market value of the property at the time of the exchange (and, in the case of a contribution described in subsection (a)(1)(B), such person shall recognize gain as if the contributed property had been sold for such value at the time of such contribution).
(2) Reasonable cause exception
Paragraph (1) shall not apply to any failure if the United States person shows such failure is due to reasonable cause and not to willful neglect.
(3) Limit on penalty
The penalty under paragraph (1) with respect to any exchange shall not exceed $100,000 unless the failure with respect to such exchange was due to intentional disregard.
(Added
Editorial Notes
Amendments
2005—Subsec. (a)(1)(B).
1998—Subsec. (c).
1997—Subsec. (a)(1).
Subsec. (b).
Subsec. (c).
Statutory Notes and Related Subsidiaries
Effective Date of 2005 Amendment
Amendment by
Effective Date of 1998 Amendment
Amendment by
Effective Date of 1997 Amendment
Effective Date
Section applicable to transfers or exchanges after Dec. 31, 1984, in taxable years ending after such date, with special rules for certain transfers and ruling requests before Mar. 1, 1984, see section 131(g) of
Election of Retroactive Effect
§6038C. Information with respect to foreign corporations engaged in U.S. business
(a) Requirement
If a foreign corporation (hereinafter in this section referred to as the "reporting corporation") is engaged in a trade or business within the United States at any time during a taxable year—
(1) such corporation shall furnish (at such time and in such manner as the Secretary shall by regulations prescribe) the information described in subsection (b), and
(2) such corporation shall maintain (at the location, in the manner, and to the extent prescribed in regulations) such records as may be appropriate to determine the liability of such corporation for tax under this title as the Secretary shall by regulations prescribe (or shall cause another person to so maintain such records).
(b) Required information
For purposes of subsection (a), the information described in this subsection is—
(1) the information described in section 6038A(b), and
(2) such other information as the Secretary may prescribe by regulations relating to any item not directly connected with a transaction for which information is required under paragraph (1).
(c) Penalty for failure to furnish information or maintain records
The provisions of subsection (d) of section 6038A shall apply to—
(1) any failure to furnish (within the time prescribed by regulations) any information described in subsection (b), and
(2) any failure to maintain (or cause another to maintain) records as required by subsection (a),
in the same manner as if such failure were a failure to comply with the provisions of section 6038A.
(d) Enforcement of requests for certain records
(1) Agreement to treat corporation as agent
The rules of paragraph (3) shall apply to any transaction between the reporting corporation and any related party who is a foreign person unless such related party agrees (in such manner and at such time as the Secretary shall prescribe) to authorize the reporting corporation to act as such related party's limited agent solely for purposes of applying sections 7602, 7603, and 7604 with respect to any request by the Secretary to examine records or produce testimony related to any such transaction or with respect to any summons by the Secretary for such records or testimony. The appearance of persons or production of records by reason of the reporting corporation being such an agent shall not subject such persons or records to legal process for any purpose other than determining the correct treatment under this title of any transaction between the reporting corporation and such related party.
(2) Rules where information not furnished
If—
(A) for purposes of determining the amount of the reporting corporation's liability for tax under this title, the Secretary issues a summons to such corporation to produce (either directly or as an agent for a related party who is a foreign person) any records or testimony,
(B) such summons is not quashed in a proceeding begun under paragraph (4) of section 6038A(e) (as made applicable by paragraph (4) of this subsection) and is not determined to be invalid in a proceeding begun under section 7604(b) to enforce such summons, and
(C) the reporting corporation does not substantially comply in a timely manner with such summons and the Secretary has sent by certified or registered mail a notice to such reporting corporation that such reporting corporation has not so substantially complied,
the Secretary may apply the rules of paragraph (3) with respect to any transaction or item to which such summons relates (whether or not the Secretary begins a proceeding to enforce such summons). If the reporting corporation fails to maintain (or cause another to maintain) records as required by subsection (a), and by reason of that failure, the summons is quashed in a proceeding described in subparagraph (B) or the reporting corporation is not able to provide the records requested in the summons, the Secretary may apply the rules of paragraph (3) with respect to any transaction or item to which the records relate.
(3) Applicable rules
If the rules of this paragraph apply to any transaction or item, the treatment of such transaction (or the amount and treatment of any such item) shall be determined by the Secretary in the Secretary's sole discretion from the Secretary's own knowledge or from such information as the Secretary may obtain through testimony or otherwise.
(4) Judicial proceedings
The provisions of section 6038A(e)(4) shall apply with respect to any summons referred to in paragraph (2)(A); except that subparagraph (D) of such section shall be applied by substituting "transaction or item" for "transaction".
(e) Definitions
For purposes of this section, the terms "related party", "foreign person", and "records" have the respective meanings given to such terms by section 6038A(c).
(Added
Statutory Notes and Related Subsidiaries
Effective Date
Section applicable to (1) any requirement to furnish information under this section if the time for furnishing such information is after Nov. 5, 1990, (2) any requirement under subsec. (a) of this section to maintain records which were in existence on or after Mar. 20, 1990, (3) any requirement to authorize a corporation to act as a limited agent under subsec. (d)(1) of this section if the time for authorizing such action is after Nov. 5, 1990, and (4) any summons issued after Nov. 5, 1990, without regard to when the taxable year (to which the information, records, authorization, or summons relates) began, see section 11315(c) of
§6038D. Information with respect to foreign financial assets
(a) In general
Any individual who, during any taxable year, holds any interest in a specified foreign financial asset shall attach to such person's return of tax imposed by subtitle A for such taxable year the information described in subsection (c) with respect to each such asset if the aggregate value of all such assets exceeds $50,000 (or such higher dollar amount as the Secretary may prescribe).
(b) Specified foreign financial assets
For purposes of this section, the term "specified foreign financial asset" means—
(1) any financial account (as defined in section 1471(d)(2)) maintained by a foreign financial institution (as defined in section 1471(d)(4)), and
(2) any of the following assets which are not held in an account maintained by a financial institution (as defined in section 1471(d)(5))—
(A) any stock or security issued by a person other than a United States person,
(B) any financial instrument or contract held for investment that has an issuer or counterparty which is other than a United States person, and
(C) any interest in a foreign entity (as defined in section 1473).
(c) Required information
The information described in this subsection with respect to any asset is:
(1) In the case of any account, the name and address of the financial institution in which such account is maintained and the number of such account.
(2) In the case of any stock or security, the name and address of the issuer and such information as is necessary to identify the class or issue of which such stock or security is a part.
(3) In the case of any other instrument, contract, or interest—
(A) such information as is necessary to identify such instrument, contract, or interest, and
(B) the names and addresses of all issuers and counterparties with respect to such instrument, contract, or interest.
(4) The maximum value of the asset during the taxable year.
(d) Penalty for failure to disclose
(1) In general
If any individual fails to furnish the information described in subsection (c) with respect to any taxable year at the time and in the manner described in subsection (a), such person shall pay a penalty of $10,000.
(2) Increase in penalty where failure continues after notification
If any failure described in paragraph (1) continues for more than 90 days after the day on which the Secretary mails notice of such failure to the individual, such individual shall pay a penalty (in addition to the penalties under paragraph (1)) of $10,000 for each 30-day period (or fraction thereof) during which such failure continues after the expiration of such 90-day period. The penalty imposed under this paragraph with respect to any failure shall not exceed $50,000.
(e) Presumption that value of specified foreign financial assets exceeds dollar threshold
If—
(1) the Secretary determines that an individual has an interest in one or more specified foreign financial assets, and
(2) such individual does not provide sufficient information to demonstrate the aggregate value of such assets,
then the aggregate value of such assets shall be treated as being in excess of $50,000 (or such higher dollar amount as the Secretary prescribes for purposes of subsection (a)) for purposes of assessing the penalties imposed under this section.
(f) Application to certain entities
To the extent provided by the Secretary in regulations or other guidance, the provisions of this section shall apply to any domestic entity which is formed or availed of for purposes of holding, directly or indirectly, specified foreign financial assets, in the same manner as if such entity were an individual.
(g) Reasonable cause exception
No penalty shall be imposed by this section on any failure which is shown to be due to reasonable cause and not due to willful neglect. The fact that a foreign jurisdiction would impose a civil or criminal penalty on the taxpayer (or any other person) for disclosing the required information is not reasonable cause.
(h) Regulations
The Secretary shall prescribe such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section, including regulations or other guidance which provide appropriate exceptions from the application of this section in the case of—
(1) classes of assets identified by the Secretary, including any assets with respect to which the Secretary determines that disclosure under this section would be duplicative of other disclosures,
(2) nonresident aliens, and
(3) bona fide residents of any possession of the United States.
(Added
Statutory Notes and Related Subsidiaries
Effective Date
§6038E. Information with respect to assignment of lower rates or refunds by foreign producers of beer, wine, and distilled spirits
Any foreign producer that elects to make an assignment described in section 5001(c), 5041(c), or 5051(a) shall provide such information, at such time and in such manner, as the Secretary may prescribe in order to make such assignment, including information about the controlled group structure of such foreign producer.
(Added
Statutory Notes and Related Subsidiaries
Effective Date
§6039. Returns required in connection with certain options
(a) Requirement of reporting
Every corporation—
(1) which in any calendar year transfers to any person a share of stock pursuant to such person's exercise of an incentive stock option, or
(2) which in any calendar year records (or has by its agent recorded) a transfer of the legal title of a share of stock acquired by the transferor pursuant to his exercise of an option described in section 423(c) (relating to special rule where option price is between 85 percent and 100 percent of value of stock),
shall, for such calendar year, make a return at such time and in such manner, and setting forth such information, as the Secretary may by regulations prescribe.
(b) Statements to be furnished to persons with respect to whom information is reported
Every corporation making a return under subsection (a) shall furnish to each person whose name is set forth in such return a written statement setting forth such information as the Secretary may by regulations prescribe. The written statement required under the preceding sentence shall be furnished to such person on or before January 31 of the year following the calendar year for which the return under subsection (a) was made.
(c) Special rules
For purposes of this section—
(1) Treatment by employer to be determinative
Any option which the corporation treats as an incentive stock option or an option granted under an employee stock purchase plan shall be deemed to be such an option.
(2) Subsection (a)(2) applies only to first transfer described therein
A statement is required by reason of a transfer described in subsection (a)(2) of a share only with respect to the first transfer of such share by the person who exercised the option.
(3) Identification of stock
Any corporation which transfers any share of stock pursuant to the exercise of any option described in subsection (a)(2) shall identify such stock in a manner adequate to carry out the purposes of this section.
(d) Cross references
For definition of—
(1) the term "incentive stock option", see section 422(b), and
(2) the term "employee stock purchase plan", see section 423(b).
(Added
Editorial Notes
Prior Provisions
A prior section 6039 was renumbered
Amendments
2018—Subsec. (d)(2).
2006—
Subsec. (a).
Subsecs. (b) to (d).
1998—Subsec. (a)(1).
1990—Subsec. (a)(1), (2).
"(1) which in any calendar year transfers a share of stock to any person pursuant to such person's exercise of a qualified stock option, an incentive stock option, or a restricted stock option, or
"(2) which in any calendar year records (or has by its agent recorded) a transfer of the legal title of a share of stock—
"(A) acquired by the transfer or pursuant to his exercise of an option described in section 423(c) (relating to special rule where option price is between 85 percent and 100 percent of value of stock), or
"(B) acquired by the transferor pursuant to his exercise of a restricted stock option described in section 424(c)(1) (relating to options under which option price is between 85 percent and 95 percent of value of stock),".
Subsec. (b)(1).
Subsec. (c).
1981—Subsec. (a)(1).
Subsec. (b)(1).
Subsec. (c)(4).
1979—Subsec. (a).
Subsec. (b).
Subsec. (c).
Subsec. (d).
1976—Subsecs. (a), (b).
Statutory Notes and Related Subsidiaries
Effective Date of 2006 Amendment
Effective Date of 1981 Amendment
Amendment by
Effective Date of 1979 Amendment
Amendment by
Effective Date
Section applicable to stock transferred pursuant to options exercised on or after Jan. 1, 1964, See section 221(e) of
Savings Provision
For provisions that nothing in amendment by
[§6039A. Repealed. Pub. L. 96–223, title IV, §401(a), Apr. 2, 1980, 94 Stat. 299 ]
Section, added
Statutory Notes and Related Subsidiaries
Effective Date of Repeal and Revival of Prior Law
Repeal applicable in respect of decedents dying after Dec. 31, 1976, and, except for certain elections, this title to be applied and administered as if this section had not been enacted, see section 401(b), (e) of
[§6039B. Repealed. Pub. L. 99–514, title XIII, §1303(b)(5), Oct. 22, 1986, 100 Stat. 2658 ]
Section, added
Statutory Notes and Related Subsidiaries
Effective Date of Repeal
Repeal effective Oct. 22, 1986, see section 1311(f) of
§6039C. Returns with respect to foreign persons holding direct investments in United States real property interests
(a) General rule
To the extent provided in regulations, any foreign person holding direct investments in United States real property interests for the calendar year shall make a return setting forth—
(1) the name and address of such person,
(2) a description of all United States real property interests held by such person at any time during the calendar year, and
(3) such other information as the Secretary may by regulations prescribe.
(b) Definition of foreign persons holding direct investments in United States real property interests
For purposes of this section, a foreign person shall be treated as holding direct investments in United States real property interests during any calendar year if—
(1) such person did not engage in a trade or business in the United States at any time during such calendar year, and
(2) the fair market value of the United States real property interests held directly by such person at any time during such year equals or exceeds $50,000.
(c) Definitions and special rules
For purposes of this section—
(1) United States real property interest
The term "United States real property interest" has the meaning given to such term by section 897(c).
(2) Foreign person
The term "foreign person" means any person who is not a United States person.
(3) Attribution of ownership
For purposes of subsection (b)(2)—
(A) Interests held by partnerships, etc.
United States real property interests held by a partnership, trust, or estate shall be treated as owned proportionately by its partners or beneficiaries.
(B) Interests held by family members
United States real property interests held by the spouse or any minor child of an individual shall be treated as owned by such individual.
(4) Time and manner of filing return
All returns required to be made under this section shall be made at such time and in such manner as the Secretary shall by regulations prescribe.
(d) Special rule for United States interest and Virgin Islands interest
A nonresident alien individual or foreign corporation subject to tax under section 897(a) (and any person required to withhold tax under section 1445) shall pay any tax and file any return required by this title—
(1) to the United States, in the case of any interest in real property located in the United States and an interest (other than an interest solely as a creditor) in a domestic corporation (with respect to the United States) described in section 897(c)(1)(A)(ii), and
(2) to the Virgin Islands, in the case of any interest in real property located in the Virgin Islands and an interest (other than an interest solely as a creditor) in a domestic corporation (with respect to the Virgin Islands) described in section 897(c)(1)(A)(ii).
(Added
Editorial Notes
Amendments
1986—Subsec. (d).
1984—
1981—Subsec. (b)(4)(C).
Subsec. (f).
Statutory Notes and Related Subsidiaries
Effective Date of 1986 Amendment
Amendment by
Effective Date of 1984 Amendment
Effective Date of 1981 Amendment
Amendment by
Effective Date
Section applicable to 1980 and subsequent calendar years, with 1980 being treated as beginning on June 19, 1980, and ending on Dec. 31, 1980, see section 1125(b) of
§6039D. Returns and records with respect to certain fringe benefit plans
(a) In general
Every employer maintaining a specified fringe benefit plan during any year for any portion of which the applicable exclusion applies, shall file a return (at such time and in such manner as the Secretary shall by regulations prescribe) with respect to such plan showing for such year—
(1) the number of employees of the employer,
(2) the number of employees of the employer eligible to participate under the plan,
(3) the number of employees participating under the plan,
(4) the total cost of the plan during the year,
(5) the name, address, and taxpayer identification number of the employer and the type of business in which the employer is engaged, and
(6) the number of highly compensated employees among the employees described in paragraphs (1), (2), and (3).
(b) Recordkeeping requirement
Each employer maintaining a specified fringe benefit plan during any year shall keep such records as may be necessary for purposes of determining whether the requirements of the applicable exclusion are met.
(c) Additional information when required by the Secretary
Any employer—
(1) who maintains a specified fringe benefit plan during any year for which a return is required under subsection (a), and
(2) who is required by the Secretary to file an additional return for such year,
shall file such additional return. Such additional return shall be filed at such time and in such manner as the Secretary shall prescribe and shall contain such information as the Secretary shall prescribe. The Secretary may require returns under this subsection only from a representative group of employers.
(d) Definitions and special rules
For purposes of this section—
(1) Specified fringe benefit plan
The term "specified fringe benefit plan" means any plan under section 79, 105, 106, 125, 127, 129, or 137.
(2) Applicable exclusion
The term "applicable exclusion" means, with respect to any specified fringe benefit plan, the section specified under paragraph (1) under which benefits under such plan are excludable from gross income.
(3) Special rule for multiemployer plans
In the case of a multiemployer plan, the plan shall be required to provide any information required by this section which the Secretary determines, on the basis of the agreement between the plan and employer, is held by the plan (and not the employer).
(Added
Editorial Notes
Codification
Another section 6039D, added
Amendments
2014—Subsec. (a).
Subsec. (d)(1).
1997—Subsec. (d)(1).
1990—Subsec. (d)(3).
1988—Subsec. (c).
Subsec. (d).
Subsec. (d)(3).
1986—Subsec. (a)(6).
Subsec. (c).
Subsec. (d).
Statutory Notes and Related Subsidiaries
Effective Date of 2014 Amendment
Amendment by
Effective Date of 1997 Amendment
Amendment by
Effective Date of 1988 Amendment
Amendment by section 1011B(a)(24) of
Effective Date of 1986 Amendment
Amendment by section 1151(h) of
Amendment by section 1879(d)(1) of
Effective Date
Section effective Jan. 1, 1985, see section 1(g)(2) of
Nonenforcement of Amendment Made by Section 1151 of Pub. L. 99–514 for Fiscal Year 1990
No monies appropriated by
Plan Amendments Not Required Until January 1, 1989
For provisions directing that if any amendments made by subtitle A or subtitle C of title XI [§§1101–1147 and 1171–1177] or title XVIII [§§1800–1899A] of
§6039E. Information concerning resident status
(a) General rule
Notwithstanding any other provision of law, any individual who—
(1) applies for a United States passport (or a renewal thereof), or
(2) applies to be lawfully accorded the privilege of residing permanently in the United States as an immigrant in accordance with the immigration laws,
shall include with any such application a statement which includes the information described in subsection (b).
(b) Information to be provided
Information required under subsection (a) shall include—
(1) the taxpayer's TIN (if any),
(2) in the case of a passport applicant, any foreign country in which such individual is residing,
(3) in the case of an individual seeking permanent residence, information with respect to whether such individual is required to file a return of the tax imposed by
(4) such other information as the Secretary may prescribe.
(c) Penalty
Any individual failing to provide a statement required under subsection (a) shall be subject to a penalty equal to $500 for each such failure, unless it is shown that such failure is due to reasonable cause and not to willful neglect.
(d) Information to be provided to Secretary
Notwithstanding any other provision of law, any agency of the United States which collects (or is required to collect) the statement under subsection (a) shall—
(1) provide any such statement to the Secretary, and
(2) provide to the Secretary the name (and any other identifying information) of any individual refusing to comply with the provisions of subsection (a).
Nothing in the preceding sentence shall be construed to require the disclosure of information which is subject to section 245A of the Immigration and Nationality Act (as in effect on the date of the enactment of this sentence).
(e) Exemption
The Secretary may by regulations exempt any class of individuals from the requirements of this section if he determines that applying this section to such individuals is not necessary to carry out the purposes of this section.
(Added
Editorial Notes
References in Text
Section 245A of the Immigration and Nationality Act, referred to in subsec. (d), is classified to
The date of the enactment of this sentence, referred to in subsec. (d), is the date of enactment of
Amendments
1988—Subsec. (d).
Statutory Notes and Related Subsidiaries
Effective Date of 1988 Amendment
Amendment by
Effective Date
§6039F. Notice of large gifts received from foreign persons
(a) In general
If the value of the aggregate foreign gifts received by a United States person (other than an organization described in section 501(c) and exempt from tax under section 501(a)) during any taxable year exceeds $10,000, such United States person shall furnish (at such time and in such manner as the Secretary shall prescribe) such information as the Secretary may prescribe regarding each foreign gift received during such year.
(b) Foreign gift
For purposes of this section, the term "foreign gift" means any amount received from a person other than a United States person which the recipient treats as a gift or bequest. Such term shall not include any qualified transfer (within the meaning of section 2503(e)(2)) or any distribution properly disclosed in a return under section 6048(c).
(c) Penalty for failure to file information
(1) In general
If a United States person fails to furnish the information required by subsection (a) with respect to any foreign gift within the time prescribed therefor (including extensions)—
(A) the tax consequences of the receipt of such gift shall be determined by the Secretary, and
(B) such United States person shall pay (upon notice and demand by the Secretary and in the same manner as tax) an amount equal to 5 percent of the amount of such foreign gift for each month for which the failure continues (not to exceed 25 percent of such amount in the aggregate).
(2) Reasonable cause exception
Paragraph (1) shall not apply to any failure to report a foreign gift if the United States person shows that the failure is due to reasonable cause and not due to willful neglect.
(d) Cost-of-living adjustment
In the case of any taxable year beginning after December 31, 1996, the $10,000 amount under subsection (a) shall be increased by an amount equal to the product of such amount and the cost-of-living adjustment for such taxable year under section 1(f)(3), except that subparagraph (A)(ii) thereof shall be applied by substituting "1995" for "2016".
(e) Regulations
The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this section.
(Added
Inflation Adjusted Items for Certain Years
For inflation adjustment of certain items in this section, see Revenue Procedures listed in a table under
Editorial Notes
Codification
Another section 6039F was renumbered
Amendments
2017—Subsec. (d).
Statutory Notes and Related Subsidiaries
Effective Date of 2017 Amendment
Amendment by
Effective Date
§6039G. Information on individuals losing United States citizenship
(a) In general
Notwithstanding any other provision of law, any individual to whom section 877(b) or 877A applies for any taxable year shall provide a statement for such taxable year which includes the information described in subsection (b).
(b) Information to be provided
Information required under subsection (a) shall include—
(1) the taxpayer's TIN,
(2) the mailing address of such individual's principal foreign residence,
(3) the foreign country in which such individual is residing,
(4) the foreign country of which such individual is a citizen,
(5) information detailing the income, assets, and liabilities of such individual,
(6) the number of days during any portion of which that the individual was physically present in the United States during the taxable year, and
(7) such other information as the Secretary may prescribe.
(c) Penalty
If—
(1) an individual is required to file a statement under subsection (a) for any taxable year, and
(2) fails to file such a statement with the Secretary on or before the date such statement is required to be filed or fails to include all the information required to be shown on the statement or includes incorrect information,
such individual shall pay a penalty of $10,000 unless it is shown that such failure is due to reasonable cause and not to willful neglect.
(d) Information to be provided to Secretary
Notwithstanding any other provision of law—
(1) any Federal agency or court which collects (or is required to collect) the statement under subsection (a) shall provide to the Secretary—
(A) a copy of any such statement, and
(B) the name (and any other identifying information) of any individual refusing to comply with the provisions of subsection (a),
(2) the Secretary of State shall provide to the Secretary a copy of each certificate as to the loss of American nationality under section 358 of the Immigration and Nationality Act which is approved by the Secretary of State, and
(3) the Federal agency primarily responsible for administering the immigration laws shall provide to the Secretary the name of each lawful permanent resident of the United States (within the meaning of section 7701(b)(6)) whose status as such has been revoked or has been administratively or judicially determined to have been abandoned.
Notwithstanding any other provision of law, not later than 30 days after the close of each calendar quarter, the Secretary shall publish in the Federal Register the name of each individual losing United States citizenship (within the meaning of section 877(a) or 877A) with respect to whom the Secretary receives information under the preceding sentence during such quarter.
(Added
Editorial Notes
References in Text
Section 358 of the Immigration and Nationality Act, referred to in subsec. (d)(2), is classified to
Amendments
2008—Subsec. (a).
Subsec. (d).
2004—Subsec. (a).
"(1) provided not later than the earliest date of any act referred to in subsection (c), and
"(2) provided to the person or court referred to in subsection (c) with respect to such act."
Subsec. (b).
Subsec. (c).
"(1) the individual's renunciation of his United States nationality before a diplomatic or consular officer of the United States pursuant to paragraph (5) of section 349(a) of the Immigration and Nationality Act (
"(2) the individual's furnishing to the United States Department of State a signed statement of voluntary relinquishment of United States nationality confirming the performance of an act of expatriation specified in paragraph (1), (2), (3), or (4) of section 349(a) of the Immigration and Nationality Act (
"(3) the issuance by the United States Department of State of a certificate of loss of nationality to the individual, or
"(4) the cancellation by a court of the United States of a naturalized citizen's certificate of naturalization."
Subsec. (d).
"(1) 5 percent of the tax required to be paid under section 877 for the taxable year ending during such year, or
"(2) $1,000,
unless it is shown that such failure is due to reasonable cause and not to willful neglect."
Subsec. (e).
Subsec. (f).
Subsec. (g).
1997—
Statutory Notes and Related Subsidiaries
Effective Date of 2008 Amendment
Amendment by
Effective Date of 2004 Amendment
Amendment by
Effective Date
For special rule relating to application of this section to certain individuals who performed an act of expatriation specified in section 1481(a)(1)–(4) of Title 8, Aliens and Nationality, before Feb. 6, 1995, see section 511(g)(3) of
"(1) individuals losing United States citizenship (within the meaning of section 877 of the Internal Revenue Code of 1986) on or after February 6, 1995, and
"(2) long-term residents of the United States with respect to whom an event described in [former] subparagraph (A) or (B) of section 877(e)(1) of such Code occurs on or after such date.
In no event shall any statement required by such amendments be due before the 90th day after the date of the enactment of this Act [Aug. 21, 1996]."
§6039H. Information with respect to Alaska Native Settlement Trusts and Native Corporations
(a) Requirement
The fiduciary of an electing Settlement Trust (as defined in section 646(h)(1)) shall include with the return of income of the trust a statement containing the information required under subsection (c).
(b) Application with other requirements
The filing of any statement under this section shall be in lieu of the reporting requirements under section 6034A to furnish any statement to a beneficiary regarding amounts distributed to such beneficiary (and such other reporting rules as the Secretary deems appropriate).
(c) Required information
The information required under this subsection shall include—
(1) the amount of distributions made during the taxable year to each beneficiary,
(2) the treatment of such distribution under the applicable provision of section 646, including the amount that is excludable from the recipient beneficiary's gross income under section 646, and
(3) the amount (if any) of any distribution during such year that is deemed to have been made by the sponsoring Native Corporation (as defined in section 646(h)(5)).
(d) Sponsoring Native Corporation
(1) In general
The electing Settlement Trust shall, on or before the date on which the statement under subsection (a) is required to be filed, furnish such statement to the sponsoring Native Corporation (as so defined).
(2) Distributees
The sponsoring Native Corporation shall furnish each recipient of a distribution described in section 646(e)(3) a statement containing the amount deemed to have been distributed to such recipient by such corporation for the taxable year.
(e) Deductible contributions by Native Corporations to Alaska Native Settlement Trusts
(1) In general
Any Native Corporation (as defined in subsection (m) of section 3 of the Alaska Native Claims Settlement Act (
(2) Content of statement
The statement described in paragraph (1) shall include—
(A) the total amount of contributions to which the election under subsection (e) of section 247 applies,
(B) for each contribution, whether such contribution was in cash,
(C) for each contribution which consists of property other than cash, the date that such property was acquired by the Native Corporation and the adjusted basis and fair market value of such property on the date such property was contributed to the Settlement Trust,
(D) the date on which each contribution was made to the Settlement Trust, and
(E) such information as the Secretary determines to be necessary or appropriate for the identification of each contribution and the accurate inclusion of income relating to such contributions by the Settlement Trust.
(Added
Editorial Notes
Amendments
2017—
Subsec. (e).
Statutory Notes and Related Subsidiaries
Effective Date of 2017 Amendment
Effective Date
Section applicable to taxable years ending after June 7, 2001, and to contributions made to electing Settlement Trusts for such year or any subsequent year, see section 671(d) of
§6039I. Returns and records with respect to employer-owned life insurance contracts
(a) In general
Every applicable policyholder owning 1 or more employer-owned life insurance contracts issued after the date of the enactment of this section shall file a return (at such time and in such manner as the Secretary shall by regulations prescribe) showing for each year such contracts are owned—
(1) the number of employees of the applicable policyholder at the end of the year,
(2) the number of such employees insured under such contracts at the end of the year,
(3) the total amount of insurance in force at the end of the year under such contracts,
(4) the name, address, and taxpayer identification number of the applicable policyholder and the type of business in which the policyholder is engaged, and
(5) that the applicable policyholder has a valid consent for each insured employee (or, if all such consents are not obtained, the number of insured employees for whom such consent was not obtained).
(b) Recordkeeping requirement
Each applicable policyholder owning 1 or more employer-owned life insurance contracts during any year shall keep such records as may be necessary for purposes of determining whether the requirements of this section and section 101(j) are met.
(c) Definitions
Any term used in this section which is used in section 101(j) shall have the same meaning given such term by section 101(j).
(Added
Editorial Notes
References in Text
The date of the enactment of this section, referred to in subsec. (a), is the date of enactment of
Statutory Notes and Related Subsidiaries
Effective Date
Section applicable to life insurance contracts issued after Aug. 17, 2006, except for a contract issued after such date pursuant to an exchange described in
§6039J. Information reporting with respect to Commodity Credit Corporation transactions
(a) Requirement of reporting
The Commodity Credit Corporation, through the Secretary of Agriculture, shall make a return, according to the forms and regulations prescribed by the Secretary of the Treasury, setting forth any market gain realized by a taxpayer during the taxable year in relation to the repayment of a loan issued by the Commodity Credit Corporation, without regard to the manner in which such loan was repaid.
(b) Statements to be furnished to persons with respect to whom information is required
The Secretary of Agriculture shall furnish to each person whose name is required to be set forth in a return required under subsection (a) a written statement showing the amount of market gain reported in such return.
(Added
Editorial Notes
Codification
Statutory Notes and Related Subsidiaries
Effective Date
Enactment of this section and repeal of
[
§6040. Cross references
(1) For the notice required of persons acting in a fiduciary capacity for taxpayers or for transferees, see sections 6212, 6901(g), and 6903.
(2) For application by fiduciary for determination of tax and discharge from personal liability therefor, see section 2204.
(3) For the notice required of taxpayers for redetermination of taxes claimed as credits, see sections 905(c) and 2016.
(4) For exemption certificates required to be furnished to employers by employees, see section 3402(f)(2), (3), (4), and (5).
(5) For receipts, constituting information returns, required to be furnished to employees, see section 6051.
[(6) Repealed.
(7) For information required with respect to the redemption of stamps, see section 6805.
(8) For the statement required to be filed by a corporation expecting a net operating loss carryback or unused excess profits credit carryback, see section 6164.
(9) For the application, which a taxpayer may file for a tentative carryback adjustment of income taxes, see section 6411.
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
1970—Par. (2).
1965—Par. (6).
Statutory Notes and Related Subsidiaries
Effective Date of 1970 Amendment
Amendment by
Effective Date of 1965 Amendment
Amendment by
Subpart B—Information Concerning Transactions With Other Persons
Editorial Notes
Amendments
2022—
2018—
2017—
2008—
2006—
2004—
2002—
1998—
1997—
1996—
1994—
1993—
1989—
1988—
1986—
1984—
1983—
1982—
1980—
1979—
1978—
1976—
1969—
1962—
1960—
§6041. Information at source
(a) Payments of $600 or more
All persons engaged in a trade or business and making payment in the course of such trade or business to another person, of rent, salaries, wages, premiums, annuities, compensations, remunerations, emoluments, or other fixed or determinable gains, profits, and income (other than payments to which section 6042(a)(1), 6044(a)(1), 6047(e), 6049(a), or 6050N(a) applies, and other than payments with respect to which a statement is required under the authority of section 6042(a)(2), 6044(a)(2), or 6045), of $600 or more in any taxable year, or, in the case of such payments made by the United States, the officers or employees of the United States having information as to such payments and required to make returns in regard thereto by the regulations hereinafter provided for, shall render a true and accurate return to the Secretary, under such regulations and in such form and manner and to such extent as may be prescribed by the Secretary, setting forth the amount of such gains, profits, and income, and the name and address of the recipient of such payment.
(b) Collection of foreign items
In the case of collections of items (not payable in the United States) of interest upon the bonds of foreign countries and interest upon the bonds of and dividends from foreign corporations by any person undertaking as a matter of business or for profit the collection of foreign payments of such interest or dividends by means of coupons, checks, or bills of exchange, such person shall make a return according to the forms or regulations prescribed by the Secretary, setting forth the amount paid and the name and address of the recipient of each such payment.
(c) Recipient to furnish name and address
When necessary to make effective the provisions of this section, the name and address of the recipient of income shall be furnished upon demand of the person paying the income.
(d) Statements to be furnished to persons with respect to whom information is required
Every person required to make a return under subsection (a) shall furnish to each person with respect to whom such a return is required a written statement showing—
(1) the name, address, and phone number of the information contact of the person required to make such return, and
(2) the aggregate amount of payments to the person required to be shown on the return.
The written statement required under the preceding sentence shall be furnished to the person on or before January 31 of the year following the calendar year for which the return under subsection (a) was required to be made. To the extent provided in regulations prescribed by the Secretary, this subsection shall also apply to persons required to make returns under subsection (b).
(e) Section does not apply to certain tips
This section shall not apply to tips with respect to which section 6053(a) (relating to reporting of tips) applies.
(f) Section does not apply to certain health arrangements
This section shall not apply to any payment for medical care (as defined in section 213(d)) made under—
(1) a flexible spending arrangement (as defined in section 106(c)(2)), or
(2) a health reimbursement arrangement which is treated as employer-provided coverage under an accident or health plan for purposes of section 106.
(g) Nonqualified deferred compensation
Subsection (a) shall apply to—
(1) any deferrals for the year under a nonqualified deferred compensation plan (within the meaning of section 409A(d)), whether or not paid, except that this paragraph shall not apply to deferrals which are required to be reported under section 6051(a)(13) (without regard to any de minimis exception), and
(2) any amount includible under section 409A and which is not treated as wages under section 3401(a).
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
2011—Subsec. (a).
Subsec. (h).
Subsecs. (i), (j).
"(i)
"(j)
2010—Subsec. (a).
Subsec. (h).
Subsec. (i).
Subsec. (j).
2004—Subsec. (g).
2003—Subsec. (f).
1996—Subsec. (d)(1).
1986—Subsec. (a).
Subsec. (d).
1984—Subsec. (a).
1982—Subsec. (a).
1981—Subsecs. (d), (e).
1978—Subsecs. (c), (d).
1976—Subsecs. (a), (b).
1962—Subsec. (a).
Subsec. (c).
Statutory Notes and Related Subsidiaries
Effective Date of 2011 Amendment
Effective Date of 2010 Amendment
Effective Date of 2004 Amendment
Amendment by
Effective Date of 2003 Amendment
Effective Date of 1996 Amendment
Effective Date of 1986 Amendment
Amendment by section 1501(c)(1) of
Amendment by section 1523(b)(2) of
Effective Date of 1984 Amendment
Amendment by
Effective Date of 1982 Amendment
Amendment by
Effective Date of 1981 Amendment
Amendment by
Effective Date of 1978 Amendment
Amendment by
Effective Date of 1962 Amendment
Amendment by
Allowance of Electronic 1099's
Employer's Duties in Connection With Recording and Reporting of Tips
"(a)
"(1) without regard to Revenue Rulings 75–400 and 76–231, and
"(2) in accordance with the manner in which such law was administered before the issuance of such rulings.
"(b)
§6041A. Returns regarding payments of remuneration for services and direct sales
(a) Returns regarding remuneration for services
If—
(1) any service-recipient engaged in a trade or business pays in the course of such trade or business during any calendar year remuneration to any person for services performed by such person, and
(2) the aggregate of such remuneration paid to such person during such calendar year is $600 or more,
then the service-recipient shall make a return, according to the forms or regulations prescribed by the Secretary, setting forth the aggregate amount of such payments and the name and address of the recipient of such payments. For purposes of the preceding sentence, the term "service-recipient" means the person for whom the service is performed.
(b) Direct sales of $5,000 or more
(1) In general
If—
(A) any person engaged in a trade or business in the course of such trade or business during any calendar year sells consumer products to any buyer on a buy-sell basis, a deposit-commission basis, or any similar basis which the Secretary prescribes by regulations, for resale (by the buyer or any other person) in the home or otherwise than in a permanent retail establishment, and
(B) the aggregate amount of the sales to such buyer during such calendar year is $5,000 or more,
then such person shall make a return, according to the forms or regulations prescribed by the Secretary, setting forth the name and address of the buyer to whom such sales are made.
(2) Definitions
For purposes of paragraph (1)—
(A) Buy-sell basis
A transaction is on a buy-sell basis if the buyer performing the services is entitled to retain part or all of the difference between the price at which the buyer purchases the product and the price at which the buyer sells the product as part or all of the buyer's remuneration for the services, and
(B) Deposit-commission basis
A transaction is on a deposit-commission basis if the buyer performing the services is entitled to retain part or all of a purchase deposit paid by the consumer in connection with the transaction as part or all of the buyer's remuneration for the services.
(c) Certain services not included
No return shall be required under subsection (a) or (b) if a statement with respect to the services is required to be furnished under section 6051, 6052, or 6053.
(d) Applications to governmental units
(1) Treated as persons
The term "person" includes any governmental unit (and any agency or instrumentality thereof).
(2) Special rules
In the case of any payment by a governmental entity or any agency or instrumentality thereof—
(A) subsection (a) shall be applied without regard to the trade or business requirement contained therein, and
(B) any return under this section shall be made by the officer or employee having control of the payment or appropriately designated for the purpose of making such return.
(3) Payments to corporations by Federal executive agencies
(A) In general
Notwithstanding any regulation prescribed by the Secretary before the date of the enactment of this paragraph, subsection (a) shall apply to remuneration paid to a corporation by any Federal executive agency (as defined in section 6050M(b)).
(B) Exception
Subparagraph (A) shall not apply to—
(i) services under contracts described in section 6050M(e)(3) with respect to which the requirements of section 6050M(e)(2) are met, and
(ii) such other services as the Secretary may specify in regulations prescribed after the date of the enactment of this paragraph.
(e) Statements to be furnished to persons with respect to whom information is required to be furnished
Every person required to make a return under subsection (a) or (b) shall furnish to each person whose name is required to be set forth in such return a written statement showing—
(1) the name, address, and phone number of the information contact of the person required to make such return, and
(2) in the case of subsection (a), the aggregate amount of payments to the person required to be shown on such return.
The written statement required under the preceding sentence shall be furnished to the person on or before January 31 of the year following the calendar year for which the return under subsection (a) was made.
(f) Recipient to furnish name, address, and identification number; inclusion on return
(1) Furnishing of information
Any person with respect to whom a return or statement is required under this section to be made by another person shall furnish to such other person his name, address, and identification number at such time and in such manner as the Secretary may prescribe by regulations.
(2) Inclusion on return
The person to whom an identification number is furnished under paragraph (1) shall include such number on any return which such person is required to file under this section and to which such identification number relates.
(Added
Editorial Notes
References in Text
The date of the enactment of this paragraph, referred to in subsec. (d)(3), is the date of enactment of
Amendments
1997—Subsec. (d)(3).
1996—Subsec. (e)(1).
Statutory Notes and Related Subsidiaries
Effective Date of 1997 Amendment
Effective Date of 1996 Amendment
Amendment by
Effective Date
§6042. Returns regarding payments of dividends and corporate earnings and profits
(a) Requirement of reporting
(1) In general
Every person—
(A) who makes payments of dividends aggregating $10 or more to any other person during any calendar year, or
(B) who receives payments of dividends as a nominee and who makes payments aggregating $10 or more during any calendar year to any other person with respect to the dividends so received,
shall make a return according to the forms or regulations prescribed by the Secretary, setting forth the aggregate amount of such payments and the name and address of the person to whom paid.
(2) Returns required by the Secretary
Every person who makes payments of dividends aggregating less than $10 to any other person during any calendar year shall, when required by the Secretary, make a return setting forth the aggregate amount of such payments, and the name and address of the person to whom paid.
(b) Dividend defined
(1) General rule
For purposes of this section, the term "dividend" means—
(A) any distribution by a corporation which is a dividend (as defined in section 316); and
(B) any payment made by a stockbroker to any person as a substitute for a dividend (as so defined).
(2) Exceptions
For purposes of this section, the term "dividend" does not include any distribution or payment—
(A) to the extent provided in regulations prescribed by the Secretary—
(i) by a foreign corporation, or
(ii) to a foreign corporation, a nonresident alien, or a partnership not engaged in a trade or business in the United States and composed in whole or in part of nonresident aliens, or
(B) except to the extent otherwise provided in regulations prescribed by the Secretary, to any person described in section 6049(b)(4).
(3) Special rule
If the person making any payment described in subsection (a)(1)(A) or (B) is unable to determine the portion of such payment which is a dividend or is paid with respect to a dividend, he shall, for purposes of subsection (a)(1), treat the entire amount of such payment as a dividend or as an amount paid with respect to a dividend.
(c) Statements to be furnished to persons with respect to whom information is required
Every person required to make a return under subsection (a) shall furnish to each person whose name is required to be set forth in such return a written statement showing—
(1) the name, address, and phone number of the information contact of the person required to make such return, and
(2) the aggregate amount of payments to the person required to be shown on the return.
The written statement required under the preceding sentence shall be furnished (either in person or in a statement mailing by first-class mail which includes adequate notice that the statement is enclosed) to the person on or before January 31 of the year following the calendar year for which the return under subsection (a) was required to be made and shall be in such form as the Secretary may prescribe by regulations.
(d) Statements to be furnished by corporations to Secretary
Every corporation shall, when required by the Secretary—
(1) furnish to the Secretary a statement stating the name and address of each shareholder, and the number of shares owned by each shareholder;
(2) furnish to the Secretary a statement of such facts as will enable him to determine the portion of the earnings and profits of the corporation (including gains, profits, and income not taxed) accumulated during such periods as the Secretary may specify, which have been distributed or ordered to be distributed, respectively, to its shareholders during such taxable years as the Secretary may specify; and
(3) furnish to the Secretary a statement of its accumulated earnings and profits and the names and addresses of the individuals or shareholders who would be entitled to such accumulated earnings and profits if divided or distributed, and of the amounts that would be payable to each.
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
1996—Subsec. (c)(1).
1986—Subsec. (c).
1984—Subsec. (b)(2).
1983—
1982—Subsecs. (a)(1), (c), (e).
Subsec. (b)(2).
1976—
1962—
Statutory Notes and Related Subsidiaries
Effective Date of 1996 Amendment
Amendment by
Effective Date of 1986 Amendment
Amendment by
Effective Date of 1984 Amendment
Amendment by
Effective Date of 1983 Amendment
Amendment by section 108(b) of
Effective Date of 1982 Amendment
Amendment by
Effective Date of 1962 Amendment
"(1)
"(2)
§6043. Liquidating, etc., transactions
(a) Corporate liquidating, etc., transactions
Every corporation shall—
(1) Within 30 days after the adoption by the corporation of a resolution or plan for the dissolution of the corporation or for the liquidation of the whole or any part of its capital stock, make a return setting forth the terms of such resolution or plan and such other information as the Secretary shall by forms or regulations prescribe; and
(2) When required by the Secretary, make a return regarding its distributions in liquidation, stating the name and address of, the number and class of shares owned by, and the amount paid to, each shareholder, or, if the distribution is in property other than money, the fair market value (as of the date the distribution is made) of the property distributed to each shareholder.
(b) Exempt organizations
Every organization which for any of its last 5 taxable years preceding its liquidation, dissolution, termination, or substantial contraction was exempt from taxation under section 501(a) shall file such return and other information with respect to such liquidation, dissolution, termination, or substantial contraction as the Secretary shall by forms or regulations prescribe; except that—
(1) no return shall be required under this subsection from churches, their integrated auxiliaries, conventions or associations of churches, or any organization which is not a private foundation (as defined in section 509(a)) and the gross receipts of which in each taxable year are normally not more than $5,000, and
(2) the Secretary may relieve any organization from such filing where he determines that such filing is not necessary to the efficient administration of the internal revenue laws or, with respect to an organization described in section 401(a), where the employer who established such organization files such a return.
(c) Changes in control and recapitalizations
If—
(1) control (as defined in section 304(c)(1)) of a corporation is acquired by any person (or group of persons) in a transaction (or series of related transactions), or
(2) there is a recapitalization of a corporation or other substantial change in the capital structure of a corporation,
when required by the Secretary, such corporation shall make a return (at such time and in such manner as the Secretary may prescribe) setting forth the identity of the parties to the transaction, the fees involved, the changes in the capital structure involved, and such other information as the Secretary may require with respect to such transaction.
(d) Cross references
For provisions relating to penalties for failure to file—
(1) a return under subsection (b), see section 6652(c), or
(2) a return under subsection (c), see section 6652(1).1
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
1996—
1989—
Subsec. (a).
Subsecs. (c), (d).
1986—Subsec. (c).
1976—
1969—
Statutory Notes and Related Subsidiaries
Effective Date of 1989 Amendment
Effective Date of 1986 Amendment
Amendment by
Effective Date of 1969 Amendment
Amendment by
1 So in original. Probably should be section "6652(l)."
§6043A. Returns relating to taxable mergers and acquisitions
(a) In general
According to the forms or regulations prescribed by the Secretary, the acquiring corporation in any taxable acquisition shall make a return setting forth—
(1) a description of the acquisition,
(2) the name and address of each shareholder of the acquired corporation who is required to recognize gain (if any) as a result of the acquisition,
(3) the amount of money and the fair market value of other property transferred to each such shareholder as part of such acquisition, and
(4) such other information as the Secretary may prescribe.
To the extent provided by the Secretary, the requirements of this section applicable to the acquiring corporation shall be applicable to the acquired corporation and not to the acquiring corporation.
(b) Nominees
According to the forms or regulations prescribed by the Secretary:
(1) Reporting
Any person who holds stock as a nominee for another person shall furnish in the manner prescribed by the Secretary to such other person the information provided by the corporation under subsection (d).
(2) Reporting to nominees
In the case of stock held by any person as a nominee, references in this section (other than in subsection (c)) to a shareholder shall be treated as a reference to the nominee.
(c) Taxable acquisition
For purposes of this section, the term "taxable acquisition" means any acquisition by a corporation of stock in or property of another corporation if any shareholder of the acquired corporation is required to recognize gain (if any) as a result of such acquisition.
(d) Statements to be furnished to shareholders
According to the forms or regulations prescribed by the Secretary, every person required to make a return under subsection (a) shall furnish to each shareholder whose name is required to be set forth in such return a written statement showing—
(1) the name, address, and phone number of the information contact of the person required to make such return,
(2) the information required to be shown on such return with respect to such shareholder, and
(3) such other information as the Secretary may prescribe.
The written statement required under the preceding sentence shall be furnished to the shareholder on or before January 31 of the year following the calendar year during which the taxable acquisition occurred.
(Added
Statutory Notes and Related Subsidiaries
Effective Date
§6044. Returns regarding payments of patronage dividends
(a) Requirement of reporting
(1) In general
Except as otherwise provided in this section, every cooperative to which part I of subchapter T of
(2) Returns required by the Secretary
Every such cooperative which makes payments of amounts described in subsection (b) aggregating less than $10 to any person during any calendar year shall, when required by the Secretary, make a return setting forth the aggregate amount of such payments and the name and address of the person to whom paid.
(b) Amounts subject to reporting
(1) General rule
Except as otherwise provided in this section, the amounts subject to reporting under subsection (a) are—
(A) the amount of any patronage dividend (as defined in section 1388(a)) which is paid in money, qualified written notices of allocation (as defined in section 1388(c)), or other property (except nonqualified written notices of allocation as defined in section 1388(d)),
(B) any amount described in section 1382(c)(2)(A) (relating to certain nonpatronage distributions) which is paid in money, qualified written notices of allocation, or other property (except nonqualified written notices of allocation) by an organization exempt from tax under section 521 (relating to exemption of farmers' cooperatives from tax),
(C) any amount described in section 1382(b)(2) (relating to redemption of nonqualified written notices of allocation) and, in the case of an organization described in section 1381(a)(1), any amount described in section 1382(c)(2)(B) (relating to redemption of nonqualified written notices of allocation paid with respect to earnings derived from sources other than patronage), and
(D) the amount of any per-unit retain allocation (as defined in section 1388(f)) which is paid in qualified per-unit retain certificates (as defined in section 1388(h)), and
(E) any amount described in section 1382(b)(4) (relating to redemption of nonqualified per-unit retain certificates).
(2) Exceptions
The provisions of subsection (a) shall not apply, to the extent provided in regulations prescribed by the Secretary, to any payment—
(A) by a foreign corporation, or
(B) to a foreign corporation, a nonresident alien, or a partnership not engaged in trade or business in the United States and composed in whole or in part of nonresident aliens.
(c) Exemption for certain consumer cooperatives
A cooperative which the Secretary determines is primarily engaged in selling at retail goods or services of a type that are generally for personal, living, or family use shall, upon application to the Secretary, be granted exemption from the reporting requirements imposed by subsection (a). Application for exemption under this subsection shall be made in accordance with regulations prescribed by the Secretary.
(d) Determination of amount paid
For purposes of this section, in determining the amount of any payment—
(1) property (other than a qualified written notice of allocation or a qualified per-unit retain certificate) shall be taken into account at its fair market value, and
(2) a qualified written notice of allocation or a qualified per-unit retain certificate shall be taken into account at its stated dollar amount.
(e) Statements to be furnished to persons with respect to whom information is required
Every cooperative required to make a return under subsection (a) shall furnish to each person whose name is required to be set forth in such return a written statement showing—
(1) the name, address, and phone number of the information contact of the cooperative required to make such return, and
(2) the aggregate amount of payments to the person required to be shown on the return.
The written statement required under the preceding sentence shall be furnished (either in person or in a statement mailing by first-class mail which includes adequate notice that the statement is enclosed) to the person on or before January 31 of the year following the calendar year for which the return under subsection (a) was required to be made and shall be in such form as the Secretary may prescribe by regulations.
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
1996—Subsec. (e)(1).
1986—Subsec. (e).
1983—
1982—Subsecs. (a)(1), (b)(1), (e), (f).
1976—
1966—Subsec. (b)(1).
Subsec. (d).
1962—
"(a)
"(1) The name and address of each patron to whom it has made such allocations amounting to $100 or more during the calendar year; and
"(2) The amount of such allocations to each patron.
"(b)
"(c)
Statutory Notes and Related Subsidiaries
Effective Date of 1996 Amendment
Amendment by
Effective Date of 1986 Amendment
Amendment by
Effective Date of 1983 Amendment
Amendment by section 108(c) of
Effective Date of 1966 Amendment
Amendment by
Effective Date of 1962 Amendment
Amendment by
§6045. Returns of brokers
(a) General rule
Every person doing business as a broker shall, when required by the Secretary, make a return, in accordance with such regulations as the Secretary may prescribe, showing the name and address of each customer, with such details regarding gross proceeds and such other information as the Secretary may by forms or regulations require with respect to such business.
(b) Statements to be furnished to customers
Every person required to make a return under subsection (a) shall furnish to each customer whose name is required to be set forth in such return a written statement showing—
(1) the name, address, and phone number of the information contact of the person required to make such return, and
(2) the information required to be shown on such return with respect to such customer.
The written statement required under the preceding sentence shall be furnished to the customer on or before February 15 of the year following the calendar year for which the return under subsection (a) was required to be made. In the case of a consolidated reporting statement (as defined in regulations) with respect to any customer, any statement which would otherwise be required to be furnished on or before January 31 of a calendar year with respect to any item reportable to the taxpayer shall instead be required to be furnished on or before February 15 of such calendar year if furnished with such consolidated reporting statement.
(c) Definitions
For purposes of this section—
(1) Broker
The term "broker" includes—
(A) a dealer,
(B) a barter exchange,
(C) any person who (for consideration) regularly acts as a middleman with respect to property or services, and
(D) any person who (for consideration) is responsible for regularly providing any service effectuating transfers of digital assets on behalf of another person.
A person shall not be treated as a broker with respect to activities consisting of managing a farm on behalf of another person.
(2) Customer
The term "customer" means any person for whom the broker has transacted any business.
(3) Barter exchange
The term "barter exchange" means any organization of members providing property or services who jointly contract to trade or barter such property or services.
(4) Person
The term "person" includes any governmental unit and any agency or instrumentality thereof.
(d) Statements required in case of certain substitute payments
If any broker—
(1) transfers securities of a customer for use in a short sale or similar transaction, and
(2) receives (on behalf of the customer) a payment in lieu of—
(A) a dividend,
(B) tax-exempt interest, or
(C) such other items as the Secretary may prescribe by regulations,
during the period such short sale or similar transaction is open, the broker shall furnish such customer a written statement (in the manner as the Secretary shall prescribe by regulations) identifying such payment as being in lieu of the dividend, tax-exempt interest, or such other item. The written statement required under the preceding sentence shall be furnished on or before February 15 of the year following the calendar year in which the payment was made. The Secretary may prescribe regulations which require the broker to make a return which includes the information contained in such written statement.
(e) Return required in the case of real estate transactions
(1) In general
In the case of a real estate transaction, the real estate reporting person shall file a return under subsection (a) and a statement under subsection (b) with respect to such transaction.
(2) Real estate reporting person
For purposes of this subsection, the term "real estate reporting person" means any of the following persons involved in a real estate transaction in the following order:
(A) the person (including any attorney or title company) responsible for closing the transaction,
(B) the mortgage lender,
(C) the seller's broker,
(D) the buyer's broker, or
(E) such other person designated in regulations prescribed by the Secretary.
Any person treated as a real estate reporting person under the preceding sentence shall be treated as a broker for purposes of subsection (c)(1).
(3) Prohibition of separate charge for filing return
It shall be unlawful for any real estate reporting person to separately charge any customer for complying with any requirement of paragraph (1). Nothing in this paragraph shall be construed to prohibit the real estate reporting person from taking into account its cost of complying with such requirement in establishing its charge (other than a separate charge for complying with such requirement) to any customer for performing services in the case of a real estate transaction.
(4) Additional information required
In the case of a real estate transaction involving a residence, the real estate reporting person shall include the following information on the return under subsection (a) and on the statement under subsection (b):
(A) The portion of any real property tax which is treated as a tax imposed on the purchaser by reason of section 164(d)(1)(B).
(B) Whether or not the financing (if any) of the seller was federally-subsidized indebtedness (as defined in section 143(m)(3)).
(5) Exception for sales or exchanges of certain principal residences
(A) In general
Paragraph (1) shall not apply to any sale or exchange of a residence for $250,000 or less if the person referred to in paragraph (2) receives written assurance in a form acceptable to the Secretary from the seller that—
(i) such residence is the principal residence (within the meaning of section 121) of the seller,
(ii) if the Secretary requires the inclusion on the return under subsection (a) of information as to whether there is federally subsidized mortgage financing assistance with respect to the mortgage on residences, that there is no such assistance with respect to the mortgage on such residence, and
(iii) the full amount of the gain on such sale or exchange is excludable from gross income under section 121.
If such assurance includes an assurance that the seller is married, the preceding sentence shall be applied by substituting "$500,000" for "$250,000". The Secretary may by regulation increase the dollar amounts under this subparagraph if the Secretary determines that such an increase will not materially reduce revenues to the Treasury.
(B) Seller
For purposes of this paragraph, the term "seller" includes the person relinquishing the residence in an exchange.
(f) Return required in the case of payments to attorneys
(1) In general
Any person engaged in a trade or business and making a payment (in the course of such trade or business) to which this subsection applies shall file a return under subsection (a) and a statement under subsection (b) with respect to such payment.
(2) Application of subsection
(A) In general
This subsection shall apply to any payment to an attorney in connection with legal services (whether or not such services are performed for the payor).
(B) Exception
This subsection shall not apply to the portion of any payment which is required to be reported under section 6041(a) (or would be so required but for the dollar limitation contained therein) or section 6051.
(g) Additional information required in the case of securities transactions, etc.
(1) In general
If a broker is otherwise required to make a return under subsection (a) with respect to the gross proceeds of the sale of a covered security, the broker shall include in such return the information described in paragraph (2).
(2) Additional information required
(A) In general
The information required under paragraph (1) to be shown on a return with respect to a covered security of a customer shall include the customer's adjusted basis in such security and whether any gain or loss with respect to such security is long-term or short-term (within the meaning of section 1222).
(B) Determination of adjusted basis
For purposes of subparagraph (A)—
(i) In general
The customer's adjusted basis shall be determined—
(I) in the case of any security (other than any stock for which an average basis method is permissible under section 1012), in accordance with the first-in first-out method unless the customer notifies the broker by means of making an adequate identification of the stock sold or transferred, and
(II) in the case of any stock for which an average basis method is permissible under section 1012, in accordance with the broker's default method unless the customer notifies the broker that he elects another acceptable method under section 1012 with respect to the account in which such stock is held.
(ii) Exception for wash sales
Except as otherwise provided by the Secretary, the customer's adjusted basis shall be determined without regard to section 1091 (relating to loss from wash sales of stock or securities) unless the transactions occur in the same account with respect to identical securities.
(iii) Treatment of uncorrected de minimis errors
Except as otherwise provided by the Secretary, the customer's adjusted basis shall be determined by treating any incorrect dollar amount which is not required to be corrected by reason of section 6721(c)(3) or section 6722(c)(3) as the correct amount.
(3) Covered security
For purposes of this subsection—
(A) In general
The term "covered security" means any specified security acquired on or after the applicable date if such security—
(i) was acquired through a transaction in the account in which such security is held, or
(ii) was transferred to such account from an account in which such security was a covered security, but only if the broker received a statement under section 6045A with respect to the transfer.
(B) Specified security
The term "specified security" means—
(i) any share of stock in a corporation,
(ii) any note, bond, debenture, or other evidence of indebtedness,
(iii) any commodity, or contract or derivative with respect to such commodity, if the Secretary determines that adjusted basis reporting is appropriate for purposes of this subsection,
(iv) any digital asset, and
(v) any other financial instrument with respect to which the Secretary determines that adjusted basis reporting is appropriate for purposes of this subsection.
(C) Applicable date
The term "applicable date" means—
(i) January 1, 2011, in the case of any specified security which is stock in a corporation (other than any stock described in clause (ii)),
(ii) January 1, 2012, in the case of any stock for which an average basis method is permissible under section 1012,
(iii) January 1, 2023, in the case of any specified security which is a digital asset, and
(iv) January 1, 2013, or such later date determined by the Secretary in the case of any other specified security.
(D) Digital asset
Except as otherwise provided by the Secretary, the term "digital asset" means any digital representation of value which is recorded on a cryptographically secured distributed ledger or any similar technology as specified by the Secretary.
(4) Treatment of S corporations
In the case of the sale of a covered security acquired by an S corporation (other than a financial institution) after December 31, 2011, such S corporation shall be treated in the same manner as a partnership for purposes of this section.
(5) Special rules for short sales
In the case of a short sale, reporting under this section shall be made for the year in which such sale is closed.
(6) Special rule for certain stock held in connection with dividend reinvestment plan
For purposes of this subsection, stock acquired before January 1, 2012, in connection with a dividend reinvestment plan shall be treated as stock described in clause (ii) of paragraph (3)(C) (unless the broker with respect to such stock elects not to have this paragraph apply with respect to such stock).
(h) Application to options on securities
(1) Exercise of option
For purposes of this section, if a covered security is acquired or disposed of pursuant to the exercise of an option that was granted or acquired in the same account as the covered security, the amount received with respect to the grant or paid with respect to the acquisition of such option shall be treated as an adjustment to gross proceeds or as an adjustment to basis, as the case may be.
(2) Lapse or closing transaction
In the case of the lapse (or closing transaction (as defined in section 1234(b)(2)(A))) of an option on a specified security or the exercise of a cash-settled option on a specified security, reporting under subsections (a) and (g) with respect to such option shall be made for the calendar year which includes the date of such lapse, closing transaction, or exercise.
(3) Prospective application
Paragraphs (1) and (2) shall not apply to any option which is granted or acquired before January 1, 2013.
(4) Definitions
For purposes of this subsection, the terms "covered security" and "specified security" shall have the meanings given such terms in subsection (g)(3).
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
2021—Subsec. (c)(1)(C).
Subsec. (c)(1)(D).
Subsec. (g)(3)(B)(iv), (v).
Subsec. (g)(3)(C)(iii), (iv).
Subsec. (g)(3)(D).
2015—Subsec. (g)(2)(B)(iii).
2014—Subsec. (g)(6).
2008—Subsec. (b).
Subsec. (d).
Subsecs. (g), (h).
2005—Subsec. (e)(5)(A).
1997—Subsec. (e)(5).
Subsec. (f).
1996—Subsec. (b)(1).
Subsec. (e)(3).
1992—Subsec. (e)(4).
1990—Subsec. (e)(4).
1989—Subsec. (e)(3), (4).
1988—Subsec. (c)(1).
Subsec. (e)(1).
Subsec. (e)(2).
Subsec. (e)(3).
1986—Subsec. (b).
Subsec. (e).
1984—Subsec. (c)(4).
Subsec. (d).
1982—
1976—
Statutory Notes and Related Subsidiaries
Effective Date of 2021 Amendment
Effective Date of 2015 Amendment
Effective Date of 2014 Amendment
Amendment by
Effective Date of 2008 Amendment
Amendment by
Effective Date of 1997 Amendment
Amendment by section 312(c) of
Effective Date of 1996 Amendments
Amendment by
Effective Date of 1992 Amendment
Effective Date of 1989 Amendment
Amendment by
Effective Date of 1988 Amendment
Amendment by section 1015(e)(3) of
Amendment by section 4005(g)(3) of
Effective Date of 1986 Amendment
Amendment by section 1501(c)(4) of
Effective Date of 1984 Amendment
Amendment by section 714(e)(1) of
Effective Date of 1982 Amendment
"(A) regulations relating to reporting by commodities and securities brokers shall be issued under section 6045 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] (as amended by this Act) within 6 months after the date of the enactment of this Act [Sept. 3, 1982], and
"(B) such regulations shall not apply to transactions occurring before January 1, 1983."
Rule of Construction
"(1) whether any person is a broker under section 6045(c)(1) of the Internal Revenue Code of 1986, or
"(2) whether any digital asset is property which is a specified security under section 6045(g)(3)(B) of such Code."
No Penalty for Payments Before January 1, 1985
§6045A. Information required in connection with transfers of covered securities to brokers
(a) Furnishing of information
Every applicable person which transfers to a broker (as defined in section 6045(c)(1)) a covered security (as defined in section 6045(g)(3)) in the hands of such applicable person shall furnish to such broker a written statement in such manner and setting forth such information as the Secretary may by regulations prescribe for purposes of enabling such broker to meet the requirements of section 6045(g).
(b) Applicable person
For purposes of subsection (a), the term "applicable person" means—
(1) any broker (as defined in section 6045(c)(1)), and
(2) any other person as provided by the Secretary in regulations.
(c) Time for furnishing statement
Except as otherwise provided by the Secretary, any statement required by subsection (a) shall be furnished not later than 15 days after the date of the transfer described in such subsection.
(d) Return requirement for certain transfers of digital assets not otherwise subject to reporting
Any broker, with respect to any transfer (which is not part of a sale or exchange executed by such broker) during a calendar year of a covered security which is a digital asset from an account maintained by such broker to an account which is not maintained by, or an address not associated with, a person that such broker knows or has reason to know is also a broker, shall make a return for such calendar year, in such form as determined by the Secretary, showing the information otherwise required to be furnished with respect to transfers subject to subsection (a).
(Added
Editorial Notes
Amendments
2021—Subsec. (a).
Subsec. (d).
Statutory Notes and Related Subsidiaries
Effective Date of 2021 Amendment
Amendment by
Effective Date
Section effective Jan. 1, 2011, see section 403(e)(1) of
§6045B. Returns relating to actions affecting basis of specified securities
(a) In general
According to the forms or regulations prescribed by the Secretary, any issuer of a specified security shall make a return setting forth—
(1) a description of any organizational action which affects the basis of such specified security of such issuer,
(2) the quantitative effect on the basis of such specified security resulting from such action, and
(3) such other information as the Secretary may prescribe.
(b) Time for filing return
Any return required by subsection (a) shall be filed not later than the earlier of—
(1) 45 days after the date of the action described in subsection (a), or
(2) January 15 of the year following the calendar year during which such action occurred.
(c) Statements to be furnished to holders of specified securities or their nominees
According to the forms or regulations prescribed by the Secretary, every person required to make a return under subsection (a) with respect to a specified security shall furnish to the nominee with respect to the specified security (or certificate holder if there is no nominee) a written statement showing—
(1) the name, address, and phone number of the information contact of the person required to make such return,
(2) the information required to be shown on such return with respect to such security, and
(3) such other information as the Secretary may prescribe.
The written statement required under the preceding sentence shall be furnished to the holder on or before January 15 of the year following the calendar year during which the action described in subsection (a) occurred.
(d) Specified security
For purposes of this section, the term "specified security" has the meaning given such term by section 6045(g)(3)(B). No return shall be required under this section with respect to actions described in subsection (a) with respect to a specified security which occur before the applicable date (as defined in section 6045(g)(3)(C)) with respect to such security.
(e) Public reporting in lieu of return
The Secretary may waive the requirements under subsections (a) and (c) with respect to a specified security, if the person required to make the return under subsection (a) makes publicly available, in such form and manner as the Secretary determines necessary to carry out the purposes of this section—
(1) the name, address, phone number, and email address of the information contact of such person, and
(2) the information described in paragraphs (1), (2), and (3) of subsection (a).
(Added
Statutory Notes and Related Subsidiaries
Effective Date
Section effective Jan. 1, 2011, see section 403(e)(1) of
§6046. Returns as to organization or reorganization of foreign corporations and as to acquisitions of their stock
(a) Requirement of return
(1) In general
A return complying with the requirements of subsection (b) shall be made by—
(A) each United States citizen or resident who becomes an officer or director of a foreign corporation if a United States person (as defined in section 7701(a)(30)) meets the stock ownership requirements of paragraph (2) with respect to such corporation,
(B) each United States person—
(i) who acquires stock which, when added to any stock owned on the date of such acquisition, meets the stock ownership requirements of paragraph (2) with respect to a foreign corporation, or
(ii) who acquires stock which, without regard to stock owned on the date of such acquisition, meets the stock ownership requirements of paragraph (2) with respect to a foreign corporation,
(C) each person (not described in subparagraph (B)) who is treated as a United States shareholder under section 953(c) with respect to a foreign corporation, and
(D) each person who becomes a United States person while meeting the stock ownership requirements of paragraph (2) with respect to stock of a foreign corporation.
In the case of a foreign corporation with respect to which any person is treated as a United States shareholder under section 953(c), subparagraph (A) shall be treated as including a reference to each United States person who is an officer or director of such corporation.
(2) Stock ownership requirements
A person meets the stock ownership requirements of this paragraph with respect to any corporation if such person owns 10 percent or more of—
(A) the total combined voting power of all classes of stock of such corporation entitled to vote, or
(B) the total value of the stock of such corporation.
(b) Form and contents of returns
The returns required by subsection (a) shall be in such form and shall set forth, in respect of the foreign corporation, such information as the Secretary prescribes by forms or regulations as necessary for carrying out the provisions of the income tax laws, except that in the case of persons described only in subsection (a)(1)(A) the information required shall be limited to the names and addresses of persons described in subparagraph (B) or (C) of subsection (a)(1).
(c) Ownership of stock
For purposes of subsection (a), stock owned directly or indirectly by a person (including, in the case of an individual, stock owned by members of his family) shall be taken into account. For purposes of the preceding sentence, the family of an individual shall be considered as including only his brothers and sisters (whether by the whole or half blood), spouse, ancestors, and lineal descendants.
(d) Time for filing
Any return required by subsection (a) shall be filed on or before the 90th day after the day on which, under any provision of subsection (a), the United States citizen, resident, or person becomes liable to file such return (or on or before such later day as the Secretary may by forms or regulations prescribe).
(e) Limitation
No information shall be required to be furnished under this section with respect to any foreign corporation unless such information was required to be furnished under regulations which have been in effect for at least 90 days before the date on which the United States citizen, resident, or person becomes liable to file a return required under subsection (a).
(f) Cross reference
For provisions relating to penalties for violations of this section, sections 6679 and 7203.
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
2007—Subsec. (b).
1997—Subsec. (a).
"(1) each United States citizen or resident who is on January 1, 1963, an officer or director of a foreign corporation, 5 percent or more in value of the stock of which is owned by a United States person (as defined in section 7701(a)(30)), or who becomes such an officer or director at any time after such date,
"(2) each United States person who on January 1, 1963, owns 5 percent or more in value of the stock of a foreign corporation, or who, at any time after such date—
"(A) acquires stock which, when added to any stock owned on January 1, 1963, has a value equal to 5 percent or more of the value of the stock of a foreign corporation, or
"(B) acquires an additional 5 percent or more in value of the stock of a foreign corporation,
"(3) each person (not described in paragraph (2)) who, at any time after January 1, 1987, is treated as a United States shareholder under section 953(c) with respect to a foreign corporation, and
"(4) each person who at any time after January 1, 1963, becomes a United States person while owning 5 percent or more in value of the stock of a foreign corporation.
In the case of a foreign corporation with respect to which any person is treated as a United States shareholder under section 953(c), paragraph (1) shall be treated as including a reference to each United States person who is an officer or director of such corporation."
1988—Subsec. (a).
Subsec. (a)(3), (4).
Subsec. (b).
1982—Subsec. (d).
1976—Subsec. (b).
Subsec. (e).
1962—
Subsec. (a).
"(a)
"(1) Each United States citizen or resident who was an officer or director of the corporation at any time within 60 days after the creation or organization, or reorganization thereof, and
"(2) Each United States shareholder of the corporation by or for whom, at any time within 60 days after the creation or organization or reorganization of the corporation, 5 percent or more in value of the stock of the corporation outstanding was owned directly or indirectly (including, in the case of an individual, stock owned by members of his family),
shall make a return in compliance with the provisions of subsection (b)."
Subsec. (b).
Subsec. (c).
Subsecs. (d) to (f).
1960—
Subsec. (a).
Subsec. (b).
Subsec. (c).
Statutory Notes and Related Subsidiaries
Effective Date of 1997 Amendment
Effective Date of 1988 Amendment
Amendment by
Effective Date of 1982 Amendment
Effective Date of 1962 Amendment
Effective Date of 1960 Amendment
§6046A. Returns as to interests in foreign partnerships
(a) Requirement of return
Any United States person, except to the extent otherwise provided by regulations—
(1) who acquires any interest in a foreign partnership,
(2) who disposes of any portion of his interest in a foreign partnership, or
(3) whose proportional interest in a foreign partnership changes substantially,
shall file a return. Paragraphs (1) and (2) shall apply to any acquisition or disposition only if the United States person directly or indirectly holds at least a 10-percent interest in such partnership either before or after such acquisition or disposition, and paragraph (3) shall apply to any change only if the change is equivalent to at least a 10-percent interest in such partnership.
(b) Form and contents of return
Any return required by subsection (a) shall be in such form and set forth such information as the Secretary shall by regulations prescribe.
(c) Time for filing return
Any return required by subsection (a) shall be filed on or before the 90th day (or on or before such later day as the Secretary may by regulations prescribe) after the day on which the United States person becomes liable to file such return.
(d) 10-percent interest
For purposes of subsection (a), a 10-percent interest in a partnership is an interest described in section 6038(e)(3)(C).
(e) Cross reference
For provisions relating to penalties for violations of this section, see sections 6679 and 7203.
(Added
Editorial Notes
Amendments
1997—Subsec. (a).
Subsecs. (d), (e).
Statutory Notes and Related Subsidiaries
Effective Date of 1997 Amendment
Effective Date
Special Rule for Certain International Satellite Partnerships
For provision that this section is not applicable to certain international satellite partnerships, see section 406 of
§6047. Information relating to certain trusts and annuity plans
(a) Trustees and insurance companies
The trustee of a trust described in section 401(a) which is exempt from tax under section 501(a) to which contributions have been paid under a plan on behalf of any owner-employee (as defined in section 401(c)(3)), and each insurance company or other person which is the issuer of a contract purchased by such a trust, or purchased under a plan described in section 403(a), contributions for which have been paid on behalf of any owner-employee, shall file such returns (in such form and at such times), keep such records, make such identification of contracts and funds (and accounts within such funds), and supply such information, as the Secretary shall by forms or regulations prescribe.
(b) Owner-employees
Every individual on whose behalf contributions have been paid as an owner-employee (as defined in section 401(c)(3))—
(1) to a trust described in section 401(a) which is exempt from tax under section 501(a), or
(2) to an insurance company or other person under a plan described in section 403(a),
shall furnish the trustee, insurance company, or other person, as the case may be, such information at such times and in such form and manner as the Secretary shall prescribe by forms or regulations.
(c) Other programs
To the extent provided by regulations prescribed by the Secretary, the provisions of this section apply with respect to any payment described in section 219 and to transactions of any trust described in section 408(a) or under an individual retirement annuity described in section 408(b).
(d) Reports by employers, plan administrators, etc.
(1) In general
The Secretary shall by forms or regulations require that—
(A) the employer maintaining, or the plan administrator (within the meaning of section 414(g)) of, a plan from which designated distributions (as defined in section 3405(e)(1)) may be made, and
(B) any person issuing any contract under which designated distributions (as so defined) may be made,
make returns and reports regarding such plan (or contract) to the Secretary, to the participants and beneficiaries of such plan (or contract), and to such other persons as the Secretary may by regulations prescribe. No return or report may be required under the preceding sentence with respect to distributions to any person during any year unless such distributions aggregate $10 or more.
(2) Form, etc., of reports
Such reports shall be in such form, made at such time, and contain such information as the Secretary may prescribe by forms or regulations.
(e) Employee stock ownership plans
The Secretary shall require—
(1) any employer maintaining, or the plan administrator (within the meaning of section 414(g)) of, an employee stock ownership plan which holds stock with respect to which section 404(k) applies to dividends paid on such stock, or
(2) both such employer or plan administrator,
to make returns and reports regarding such plan, transaction, or loan to the Secretary and to such other persons as the Secretary may prescribe. Such returns and reports shall be made in such form, shall be made at such time, and shall contain such information as the Secretary may prescribe.
(f) Designated Roth contributions
The Secretary shall require the plan administrator of each applicable retirement plan (as defined in section 402A) to make such returns and reports regarding designated Roth contributions (as defined in section 402A) to the Secretary, participants and beneficiaries of the plan, and such other persons as the Secretary may prescribe.
(g) Information relating to life insurance contract transactions
This section shall not apply to any information which is required to be reported under section 6050Y.
(h) Cross references
(1) For provisions relating to penalties for failures to file returns and reports required under this section, see sections 6652(e), 6721, and 6722.
(2) For criminal penalty for furnishing fraudulent information, see section 7207.
(3) For provisions relating to penalty for failure to comply with the provisions of subsection (d), see section 6704.
(4) For provisions requiring reporting of information relating to certain life insurance contract transactions, see section 6050Y.
(Added
Editorial Notes
Amendments
2017—Subsec. (g).
Subsec. (h).
Subsec. (h)(4).
2001—Subsecs. (f), (g).
1996—Subsec. (d)(1).
Subsec. (e)(1) to (3).
"(1) any employer maintaining, or the plan administrator (within the meaning of section 414(g)) of, an employee stock ownership plan—
"(A) which acquired stock in a transaction to which section 133 applies, or
"(B) which holds stock with respect to which section 404(k) applies to dividends paid on such stock,
"(2) any person making or holding a loan to which section 133 applies, or
"(3) both such employer or plan administrator and such person,".
Subsec. (f)(1).
1992—Subsec. (d)(1)(A).
1989—Subsecs. (e), (f).
1986—Subsec. (e)(1).
Subsec. (e)(3).
1984—
Subsecs. (c) to (f).
1983—Subsec. (d).
1982—Subsecs. (e), (f).
1981—Subsec. (d).
1976—Subsecs. (a) to (d).
Subsec. (d).
1974—Subsec. (d).
Subsec. (e).
Statutory Notes and Related Subsidiaries
Effective Date of 2017 Amendment
"(1) reportable policy sales (as defined in section 6050Y(d)(2) of the Internal Revenue Code of 1986 (as added by subsection (a)) after December 31, 2017, and
"(2) reportable death benefits (as defined in section 6050Y(d)(4) of such Code (as added by subsection (a)) paid after December 31, 2017."
Effective Date of 2001 Amendment
Amendment by
Effective Date of 1996 Amendment
Amendment by section 1455(b)(2), (d)(1) of
Amendment by section 1602(b)(6) of
Effective Date of 1992 Amendment
Amendment by
Effective Date of 1989 Amendment
Amendment by
Effective Date of 1986 Amendment
Amendment by section 1501(d)(1)(D) of
Amendment by section 1848(e)(2) of
Effective Date of 1984 Amendment
Amendment by
Effective Date of 1983 Amendment
Amendment by
Effective Date of 1982 Amendment
Amendment by
Effective Date of 1981 Amendment
Amendment by
Effective Date of 1976 Amendment
Amendment by section 1501(b)(9) of
Effective Date of 1974 Amendment
Amendment by section 1031(c)(3) of
Amendment by section 2002(g)(8) of
Effective Date
Section applicable to taxable years beginning after Dec. 31, 1962, see section 8 of
Plan Amendments Not Required Until January 1, 1998
For provisions directing that if any amendments made by subtitle D [§§1401–1465] of title I of
Plan Amendments Not Required Until January 1, 1994
For provisions directing that if any amendments made by subtitle B [§§521–523] of title V of
Plan Amendments Not Required Until January 1, 1989
For provisions directing that if any amendments made by subtitle A or subtitle C of title XI [§§1101–1147 and 1171–1177] or title XVIII [§§1800–1899A] of
§6048. Information with respect to certain foreign trusts
(a) Notice of certain events
(1) General rule
On or before the 90th day (or such later day as the Secretary may prescribe) after any reportable event, the responsible party shall provide written notice of such event to the Secretary in accordance with paragraph (2).
(2) Contents of notice
The notice required by paragraph (1) shall contain such information as the Secretary may prescribe, including—
(A) the amount of money or other property (if any) transferred to the trust in connection with the reportable event, and
(B) the identity of the trust and of each trustee and beneficiary (or class of beneficiaries) of the trust.
(3) Reportable event
For purposes of this subsection—
(A) In general
The term "reportable event" means—
(i) the creation of any foreign trust by a United States person,
(ii) the transfer of any money or property (directly or indirectly) to a foreign trust by a United States person, including a transfer by reason of death, and
(iii) the death of a citizen or resident of the United States if—
(I) the decedent was treated as the owner of any portion of a foreign trust under the rules of subpart E of part I of subchapter J of
(II) any portion of a foreign trust was included in the gross estate of the decedent.
(B) Exceptions
(i) Fair market value sales
Subparagraph (A)(ii) shall not apply to any transfer of property to a trust in exchange for consideration of at least the fair market value of the transferred property. For purposes of the preceding sentence, consideration other than cash shall be taken into account at its fair market value and the rules of section 679(a)(3) shall apply.
(ii) Deferred compensation and charitable trusts
Subparagraph (A) shall not apply with respect to a trust which is—
(I) described in section 402(b), 404(a)(4), or 404A, or
(II) determined by the Secretary to be described in section 501(c)(3).
(4) Responsible party
For purposes of this subsection, the term "responsible party" means—
(A) the grantor in the case of the creation of an inter vivos trust,
(B) the transferor in the case of a reportable event described in paragraph (3)(A)(ii) other than a transfer by reason of death, and
(C) the executor of the decedent's estate in any other case.
(b) United States owner of foreign trust
(1) In general
If, at any time during any taxable year of a United States person, such person is treated as the owner of any portion of a foreign trust under the rules of subpart E of part I of subchapter J of
(A) such trust makes a return for such year which sets forth a full and complete accounting of all trust activities and operations for the year, the name of the United States agent for such trust, and such other information as the Secretary may prescribe, and
(B) such trust furnishes such information as the Secretary may prescribe to each United States person (i) who is treated as the owner of any portion of such trust or (ii) who receives (directly or indirectly) any distribution from the trust.
(2) Trusts not having United States agent
(A) In general
If the rules of this paragraph apply to any foreign trust, the determination of amounts required to be taken into account with respect to such trust by a United States person under the rules of subpart E of part I of subchapter J of
(B) United States agent required
The rules of this paragraph shall apply to any foreign trust to which paragraph (1) applies unless such trust agrees (in such manner, subject to such conditions, and at such time as the Secretary shall prescribe) to authorize a United States person to act as such trust's limited agent solely for purposes of applying sections 7602, 7603, and 7604 with respect to—
(i) any request by the Secretary to examine records or produce testimony related to the proper treatment of amounts required to be taken into account under the rules referred to in subparagraph (A), or
(ii) any summons by the Secretary for such records or testimony.
The appearance of persons or production of records by reason of a United States person being such an agent shall not subject such persons or records to legal process for any purpose other than determining the correct treatment under this title of the amounts required to be taken into account under the rules referred to in subparagraph (A). A foreign trust which appoints an agent described in this subparagraph shall not be considered to have an office or a permanent establishment in the United States, or to be engaged in a trade or business in the United States, solely because of the activities of such agent pursuant to this subsection.
(C) Other rules to apply
Rules similar to the rules of paragraphs (2) and (4) of section 6038A(e) shall apply for purposes of this paragraph.
(c) Reporting by United States beneficiaries of foreign trusts
(1) In general
If any United States person receives (directly or indirectly) during any taxable year of such person any distribution from a foreign trust, such person shall make a return with respect to such trust for such year which includes—
(A) the name of such trust,
(B) the aggregate amount of the distributions so received from such trust during such taxable year, and
(C) such other information as the Secretary may prescribe.
(2) Inclusion in income if records not provided
(A) In general
If adequate records are not provided to the Secretary to determine the proper treatment of any distribution from a foreign trust, such distribution shall be treated as an accumulation distribution includible in the gross income of the distributee under
(B) Application of accumulation distribution rules
For purposes of applying section 668 in a case to which subparagraph (A) applies, the applicable number of years for purposes of section 668(a) shall be ½ of the number of years the trust has been in existence.
(d) Special rules
(1) Determination of whether United States person makes transfer or receives distribution
For purposes of this section, in determining whether a United States person makes a transfer to, or receives a distribution from, a foreign trust, the fact that a portion of such trust is treated as owned by another person under the rules of subpart E of part I of subchapter J of
(2) Domestic trusts with foreign activities
To the extent provided in regulations, a trust which is a United States person shall be treated as a foreign trust for purposes of this section and section 6677 if such trust has substantial activities, or holds substantial property, outside the United States.
(3) Time and manner of filing information
Any notice or return required under this section shall be made at such time and in such manner as the Secretary shall prescribe.
(4) Modification of return requirements
The Secretary is authorized to suspend or modify any requirement of this section if the Secretary determines that the United States has no significant tax interest in obtaining the required information.
(5) United States person's return must be consistent with trust return or Secretary notified of inconsistency
Rules similar to the rules of section 6034A(c) shall apply to items reported by a trust under subsection (b)(1)(B) and to United States persons referred to in such subsection.
(Added
Editorial Notes
Amendments
2010—Subsec. (b)(1).
1997—Subsec. (b).
Subsec. (d)(5).
1996—
1982—Subsec. (a).
1976—
Subsec. (b).
Subsecs. (c), (d).
Statutory Notes and Related Subsidiaries
Effective Date of 2010 Amendment
Effective Date of 1997 Amendment
Amendment by section 1027(b) of
Amendment by section 1601(i)(1) of
Effective Date of 1996 Amendment
"(1)
"(2)
"(3)
Effective Date of 1982 Amendment
Amendment by
§6049. Returns regarding payments of interest
(a) Requirement of reporting
Every person—
(1) who makes payments of interest (as defined in subsection (b)) aggregating $10 or more to any other person during any calendar year, or
(2) who receives payments of interest (as so defined) as a nominee and who makes payments aggregating $10 or more during any calendar year to any other person with respect to the interest so received,
shall make a return according to the forms or regulations prescribed by the Secretary, setting forth the aggregate amount of such payments and the name and address of the person to whom paid.
(b) Interest defined
(1) General rule
For purposes of subsection (a), the term "interest" means—
(A) interest on any obligation—
(i) issued in registered form, or
(ii) of a type offered to the public,
other than any obligation with a maturity (at issue) of not more than 1 year which is held by a corporation,
(B) interest on deposits with persons carrying on the banking business,
(C) amounts (whether or not designated as interest) paid by a mutual savings bank, savings and loan association, building and loan association, cooperative bank, homestead association, credit union, industrial loan association or bank, or similar organization, in respect of deposits, investment certificates, or withdrawable or repurchasable shares,
(D) interest on amounts held by an insurance company under an agreement to pay interest thereon,
(E) interest on deposits with brokers (as defined in section 6045(c)),
(F) interest paid on amounts held by investment companies (as defined in section 3 of the Investment Company Act of 1940 (
(G) to the extent provided in regulations prescribed by the Secretary, any other interest (which is not described in paragraph (2)).
(2) Exceptions
For purposes of subsection (a), the term "interest" does not include—
(A) interest on any obligation issued by a natural person,
(B) except to the extent otherwise provided in regulations—
(i) any amount paid to any person described in paragraph (4), or
(ii) any amount described in paragraph (5), and
(C) except to the extent otherwise provided in regulations, any amount not described in subparagraph (B) of this paragraph which is income from sources outside the United States or which is paid by—
(i) a foreign government or international organization or any agency or instrumentality thereof,
(ii) a foreign central bank of issue,
(iii) a foreign corporation not engaged in a trade or business in the United States,
(iv) a foreign corporation, the interest payments of which would be exempt from withholding under subchapter A of
(v) a partnership not engaged in a trade or business in the United States and composed in whole of nonresident alien individuals and persons described in clause (i), (ii), or (iii).
(3) Payments by United States nominees, etc., of United States person
If, within the United States, a United States person—
(A) collects interest (or otherwise acts as a middleman between the payor and payee) from a foreign person described in paragraph (2)(D) or collects interest from a United States person which is income from sources outside the United States for a second person who is a United States person, or
(B) makes payments of such interest to such second United States person,
notwithstanding paragraph (2)(D), such payment shall be subject to the requirements of subsection (a) with respect to such second United States person.
(4) Persons described in this paragraph
A person is described in this paragraph if such person is—
(A) a corporation,
(B) an organization exempt from taxation under section 501(a) or an individual retirement plan,
(C) the United States or any wholly owned agency or instrumentality thereof,
(D) a State, the District of Columbia, a possession of the United States, any political subdivision of any of the foregoing, or any wholly owned agency or instrumentality of any one or more of the foregoing,
(E) a foreign government, a political subdivision of a foreign government, or any wholly owned agency or instrumentality of any one or more of the foregoing,
(F) an international organization or any wholly owned agency or instrumentality thereof,
(G) a foreign central bank of issue,
(H) a dealer in securities or commodities required to register as such under the laws of the United States or a State, the District of Columbia, or a possession of the United States,
(I) a real estate investment trust (as defined in section 856),
(J) an entity registered at all times during the taxable year under the Investment Company Act of 1940,
(K) a common trust fund (as defined in section 584(a)), or
(L) any trust which—
(i) is exempt from tax under section 664(c), or
(ii) is described in section 4947(a)(1).
(5) Amounts described in this paragraph
An amount is described in this paragraph if such amount—
(A) is subject to withholding under subchapter A of
(B) would be subject to withholding under subchapter A of
(i) such amount is income from sources outside the United States,
(ii) the payor thereof is exempt from the application of section 1441(a) by reason of section 1441(c) or a tax treaty,
(iii) such amount is original issue discount (within the meaning of section 1273(a)), or
(iv) such amount is described in section 871(i)(2).
(c) Statements to be furnished to persons with respect to whom information is required
(1) In general
Every person required to make a return under subsection (a) shall furnish to each person whose name is required to be set forth in such return a written statement showing—
(A) the name, address, and phone number of the information contact of the person required to make such return, and
(B) the aggregate amount of payments to, or the aggregate amount includible in the gross income of, the person required to be shown on the return.
(2) Time and form of statement
The written statement under paragraph (1)—
(A) shall be furnished (either in person or in a statement mailing by first-class mail which includes adequate notice that the statement is enclosed) to the person on or before January 31 of the year following the calendar year for which the return under subsection (a) was required to be made, and
(B) shall be in such form as the Secretary may prescribe by regulations.
(d) Definitions and special rules
For purposes of this section—
(1) Person
The term "person" includes any governmental unit and any agency or instrumentality thereof and any international organization and any agency or instrumentality thereof.
(2) Obligation
The term "obligation" includes bonds, debentures, notes, certificates, and other evidences of indebtedness.
(3) Payments by governmental units
In the case of payments made by any governmental unit or any agency or instrumentality thereof, the officer or employee having control of the payment of interest (or the person appropriately designated for purposes of this section) shall make the returns and statements required by this section.
(4) Financial institutions, brokers, etc., collecting interest may be substituted for payor
To the extent and in the manner provided by regulations, in the case of any obligation—
(A) a financial institution, broker, or other person specified in such regulations which collects interest on such obligation for the payee (or otherwise acts as a middleman between the payor and the payee) shall comply with the requirements of subsections (a) and (c), and
(B) no other person shall be required to comply with the requirements of subsections (a) and (c) with respect to any interest on such obligation for which reporting is required pursuant to subparagraph (A).
(5) Interest on certain obligations may be treated on a transactional basis
(A) In general
To the extent and in the manner provided in regulations, this section shall apply with respect to—
(i) any person described in paragraph (4)(A), and
(ii) in the case of any United States savings bonds, any Federal agency making payments thereon,
on any transactional basis rather than on an annual aggregation basis.
(B) Separate returns and statements
If subparagraph (A) applies to interest on any obligation, the return under subsection (a) and the statement furnished under subsection (c) with respect to such transaction may be made separately, but any such statement shall be furnished to the payee at such time as the Secretary may prescribe by regulations but not later than January 31 of the next calendar year.
(C) Statement to payee required in case of transactions involving $10 or more
In the case of any transaction to which this paragraph applies which involves the payment of $10 or more of interest, a statement of the transaction may be provided to the payee of such interest in lieu of the statement required under subsection (c). Such statement shall be provided during January of the year following the year in which such payment is made.
(6) Treatment of original issue discount
(A) In general
Original issue discount on any obligation shall be reported—
(i) as if paid at the time it is includible in gross income under section 1272 (except that for such purpose the amount reportable with respect to any subsequent holder shall be determined as if he were the original holder), and
(ii) if section 1272 does not apply to the obligation, at maturity (or, if earlier, on redemption).
In the case of any obligation not in registered form issued before January 1, 1983, clause (ii) and not clause (i) shall apply.
(B) Original issue discount
For purposes of this paragraph, the term "original issue discount" has the meaning given to such term by section 1273(a).
(7) Interests in REMIC's and certain other debt instruments
(A) In general
For purposes of subsection (a), the term "interest" includes amounts includible in gross income with respect to regular interests in REMIC's (and such amounts shall be treated as paid when includible in gross income under section 860B(b)).
(B) Reporting to corporations, etc.
Except as otherwise provided in regulations, in the case of any interest described in subparagraph (A) of this paragraph and any other debt instrument to which section 1272(a)(6) applies, subsection (b)(4) of this section shall be applied without regard to subparagraphs (A), (H), (I), (J), (K), and (L)(i).
(C) Additional information
Except as otherwise provided in regulations, any return or statement required to be filed or furnished under this section with respect to interest income described in subparagraph (A) and interest on any other debt instrument to which section 1272(a)(6) applies shall also provide information setting forth the adjusted issue price of the interest to which the return or statement relates at the beginning of each accrual period with respect to which interest income is required to be reported on such return or statement and information necessary to compute accrual of market discount.
(D) Regulatory authority
The Secretary may prescribe such regulations as are necessary or appropriate to carry out the purposes of this paragraph, including regulations which require more frequent or more detailed reporting.
(8) Reporting of credit on clean renewable energy bonds
(A) In general
For purposes of subsection (a), the term "interest" includes amounts includible in gross income under section 54(g) 1 and such amounts shall be treated as paid on the credit allowance date (as defined in section 54(b)(4)).1
(B) Reporting to corporations, etc.
Except as otherwise provided in regulations, in the case of any interest described in subparagraph (A), subsection (b)(4) shall be applied without regard to subparagraphs (A), (H), (I), (J), (K), and (L)(i) of such subsection.
(C) Regulatory authority
The Secretary may prescribe such regulations as are necessary or appropriate to carry out the purposes of this paragraph, including regulations which require more frequent or more detailed reporting.
(9) Reporting of credit on qualified tax credit bonds
(A) In general
For purposes of subsection (a), the term "interest" includes amounts includible in gross income under section 54A 1 and such amounts shall be treated as paid on the credit allowance date (as defined in section 54A(e)(1)).1
(B) Reporting to corporations, etc.
Except as otherwise provided in regulations, in the case of any interest described in subparagraph (A) of this paragraph, subsection (b)(4) of this section shall be applied without regard to subparagraphs (A), (H), (I), (J), (K), and (L)(i).
(C) Regulatory authority
The Secretary may prescribe such regulations as are necessary or appropriate to carry out the purposes of this paragraph, including regulations which require more frequent or more detailed reporting.
(Added
Editorial Notes
References in Text
The Investment Company Act of 1940, referred to in subsec. (b)(4)(J), is title I of act Aug. 22, 1940, ch. 686,
Section 54, referred to in subsec. (d)(8)(A), was repealed by
Section 54A, referred to in subsec (d)(9)(A), was repealed by
Codification
Amendments
2018—Subsec. (d)(8)(A).
2008—Subsec. (d)(9).
2006—Subsec. (b)(2)(B).
Subsec. (b)(2)(C).
Subsec. (b)(2)(D).
2005—Subsec. (d)(8).
Subsec. (d)(8)(A).
1996—Subsec. (c)(1)(A).
1988—Subsec. (d)(7)(A).
Subsec. (d)(7)(C).
1986—Subsec. (b)(5)(B)(iii).
Subsec. (b)(5)(B)(iv).
Subsec. (c).
Subsec. (d)(7).
1984—Subsec. (b)(2)(E).
Subsec. (d)(6)(A).
Subsec. (d)(6)(B).
1983—Subsec. (a).
Subsec. (b)(2)(B).
Subsec. (b)(2)(C).
Subsec. (b)(4), (5).
Subsec. (c)(1)(C).
Subsec. (c)(2).
Subsec. (e).
1982—Subsec. (a).
Subsec. (b).
Subsec. (c).
Subsec. (d).
Subsec. (e).
1976—Subsec. (a).
Subsec. (b)(1), (2)(A), (B).
1969—Subsec. (a)(1)(C).
Subsec. (c).
Statutory Notes and Related Subsidiaries
Effective Date of 2008 Amendment
Amendment of this section and repeal of
Effective Date of 2006 Amendment
Effective Date of 2005 Amendment
"(1)
"(2)
"(1)
"(2)
Effective Date of 1996 Amendment
Amendment by
Effective Date of 1988 Amendment
Amendment by
Effective Date of 1986 Amendment
Amendment by section 674 of
Amendment by section 1214(c)(4) of
Amendment by section 1501(c)(5) of
Amendment by section 1803(a)(14)(C) of
Effective Date of 1984 Amendment
Amendment by section 42(a)(14) of
Amendment by section 474(r)(29)(J) of
Effective Date of 1983 Amendment
Amendment by section 102(a), (e) of
Amendment by section 108(a) of
Effective Date of 1982 Amendment
Effective Date of 1969 Amendment
Effective Date
Section applicable to payments of dividends and interest made on or after Jan. 1, 1963, and to payments of amounts described in
Savings Provision
For provisions that amendment made by
For provisions that nothing in amendment by
Applicability of Certain Amendments by Pub. L. 99–514 in Relation to Treaty Obligations of United States
For nonapplication of amendment by section 1214(c)(4) of
Plan Amendments Not Required Until January 1, 1989
For provisions directing that if any amendments made by subtitle A or subtitle C of title XI [§§1101–1147 and 1171–1177] or title XVIII [§§1800–1899A] of
1 See References in Text note below.
[§6050. Repealed. Pub. L. 96–167, §5(a), Dec. 29, 1979, 93 Stat. 1276 ]
Section, added
Statutory Notes and Related Subsidiaries
Effective Date of Repeal
§6050A. Reporting requirements of certain fishing boat operators
(a) Reports
The operator of a boat on which one or more individuals, during a calendar year, perform services described in section 3121(b)(20) shall submit to the Secretary (at such time, and in such manner and form, as the Secretary shall by regulations prescribe) information respecting—
(1) the identity of each individual performing such services;
(2) the percentage of each such individual's share of the catches of fish or other forms of aquatic animal life, and the percentage of the operator's share of such catches;
(3) if such individual receives his share in kind, the type and weight of such share, together with such other information as the Secretary may prescribe by regulations reasonably necessary to determine the value of such share;
(4) if such individual receives a share of the proceeds of such catches, the amount so received; and
(5) any cash remuneration described in section 3121(b)(20)(A).
(b) Written statement
Every person required to make a return under subsection (a) shall furnish to each person whose name is required to be set forth in such return a written statement showing the information relating to such person required to be contained in such return. The written statement required under the preceding sentence shall be furnished to the person on or before January 31 of the year following the calendar year for which the return under subsection (a) was required to be made.
(Added
Editorial Notes
Amendments
1996—Subsec. (a)(5).
1986—Subsec. (b).
Statutory Notes and Related Subsidiaries
Effective Date of 1996 Amendment
Amendments by
Effective Date of 1986 Amendment
Amendment by
Effective Date
Section effective for calendar years beginning after Oct. 4, 1976, see section 1207(f)(4)(A) of
§6050B. Returns relating to unemployment compensation
(a) Requirement of reporting
Every person who makes payments of unemployment compensation aggregating $10 or more to any individual during any calendar year shall make a return according to the forms or regulations prescribed by the Secretary, setting forth the aggregate amounts of such payments and the name and address of the individual to whom paid.
(b) Statements to be furnished to individuals with respect to whom information is required
Every person required to make a return under subsection (a) shall furnish to each individual whose name is required to be set forth in such return a written statement showing—
(1) the name, address, and phone number of the information contact of the person required to make such return, and
(2) the aggregate amount of payments to the individual required to be shown on such return.
The written statement required under the preceding sentence shall be furnished to the individual on or before January 31 of the year following the calendar year for which the return under subsection (a) was required to be made.
(c) Definitions
For purposes of this section—
(1) Unemployment compensation
The term "unemployment compensation" has the meaning given to such term by section 85(b).
(2) Person
The term "person" means the officer or employee having control of the payment of the unemployment compensation, or the person appropriately designated for purposes of this section.
(Added
Editorial Notes
Amendments
1996—Subsec. (b)(1).
Subsec. (c)(1).
1986—Subsec. (b).
Statutory Notes and Related Subsidiaries
Effective Date of 1996 Amendment
Amendment by
Effective Date of 1986 Amendment
Amendment by
Effective Date
Section applicable to payments of unemployment compensation made after Dec. 31, 1978, in taxable years ending after such date, but not applicable to payments made for weeks of unemployment ending before Dec. 1, 1978, see section 112(d) of
Waiver of Statute of Limitations
For provisions relating to credit or refund of overpayment of tax resulting from 1984 amendment to section 112(d) of
[§6050C. Repealed. Pub. L. 100–418, title I, §1941(b)(1), Aug. 23, 1988, 102 Stat. 1323 ]
Section, added
Statutory Notes and Related Subsidiaries
Effective Date of Repeal
Repeal applicable to crude oil removed from the premises on or after Aug. 23, 1988, see section 1941(c) of
§6050D. Returns relating to energy grants and financing
(a) In general
Every person who administers a Federal, State, or local program a principal purpose of which is to provide subsidized financing or grants for projects to conserve or produce energy shall, to the extent required under regulations prescribed by the Secretary, make a return setting forth the name and address of each taxpayer receiving financing or a grant under such program and the aggregate amount so received by such individual.
(b) Definition of person
For purposes of this section, the term "person" means the officer or employee having control of the program, or the person appropriately designated for purposes of this section.
(Added
Statutory Notes and Related Subsidiaries
Effective Date
§6050E. State and local income tax refunds
(a) Requirement of reporting
Every person who, with respect to any individual, during any calendar year makes payments of refunds of State or local income taxes (or allows credits or offsets with respect to such taxes) aggregating $10 or more shall make a return according to forms or regulations prescribed by the Secretary setting forth the aggregate amount of such payments, credits, or offsets, and the name and address of the individual with respect to whom such payment, credit, or offset was made.
(b) Statements to be furnished to individuals with respect to whom information is required
Every person required to make a return under subsection (a) shall furnish to each individual whose name is required to be set forth in such return a written statement showing—
(1) the name of the State or political subdivision thereof, and
(2) the information required to be shown on the return with respect to refunds, credits, and offsets to the individual.
The written statement required under the preceding sentence shall be furnished to the individual during January of the calendar year following the calendar year for which the return under subsection (a) was required to be made. No statement shall be required under this subsection with respect to any individual if it is determined (in the manner provided by regulations) that such individual did not claim itemized deductions under
(c) Person defined
For purposes of this section, the term "person" means the officer or employee having control of the payment of the refunds (or the allowance of the credits or offsets) or the person appropriately designated for purposes of this section.
(Added
Editorial Notes
Amendments
1986—Subsec. (b).
1984—Subsec. (b).
Statutory Notes and Related Subsidiaries
Effective Date of 1986 Amendment
Amendment by
Effective Date of 1984 Amendment
Effective Date
§6050F. Returns relating to social security benefits
(a) Requirement of reporting
The appropriate Federal official shall make a return, according to the forms and regulations prescribed by the Secretary, setting forth—
(1) the—
(A) aggregate amount of social security benefits paid with respect to any individual during any calendar year,
(B) aggregate amount of social security benefits repaid by such individual during such calendar year, and
(C) aggregate reductions under section 224 of the Social Security Act (or under section 3(a)(1) of the Railroad Retirement Act of 1974) in benefits which would otherwise have been paid to such individual during the calendar year on account of amounts received under a workmen's compensation act, and
(2) the name and address of such individual.
(b) Statements to be furnished to persons with respect to whom information is required
Every person required to make a return under subsection (a) shall furnish to each individual whose name is required to be set forth in such return a written statement showing—
(1) the name of the agency making the payments, and
(2) the aggregate amount of payments, of repayments, and of reductions, with respect to the individual required to be shown on such return.
The written statement required under the preceding sentence shall be furnished to the individual on or before January 31 of the year following the calendar year for which the return under subsection (a) was required to be made.
(c) Definitions
For purposes of this section
(1) Appropriate Federal official
The term "appropriate Federal official" means—
(A) the Commissioner of Social Security in the case of social security benefits described in section 86(d)(1)(A), and
(B) the Railroad Retirement Board in the case of social security benefits described in section 86(d)(1)(B).
(2) Social security benefit
The term "social security benefit" has the meaning given to such term by section 86(d)(1).
(Added
Editorial Notes
References in Text
Section 224 of the Social Security Act, referred to in subsec. (a)(1)(C), is classified to
Section 3(a)(1) of the Railroad Retirement Act of 1974, referred to in subsec. (a)(1)(C), is classified to
Amendments
1994—Subsec. (c)(1)(A).
1989—Subsecs. (a), (b)(1), (2), (c)(1)(A).
1988—Subsec. (a).
Subsec. (b)(1).
Subsec. (b)(2).
Subsec. (c)(1)(A).
1986—Subsec. (b).
Statutory Notes and Related Subsidiaries
Effective Date of 1994 Amendment
Amendment by
Effective Date of 1989 Amendment
Amendment by
Effective Date of 1988 Amendment
Amendment by
Effective Date of 1986 Amendment
Amendment by
Effective Date
Section applicable to benefits received after Dec. 31, 1983, in taxable years ending after such date, except for any portion of a lump-sum payment of social security benefits received after Dec. 31, 1983, if the generally applicable payment date for such portion was before Jan. 1, 1984, see section 121(g) of
Repeal of Supplemental Medicare Premium and Federal Hospital Insurance Catastrophic Coverage Reserve Fund
§6050G. Returns relating to certain railroad retirement benefits
(a) In general
The Railroad Retirement Board shall make a return, according to the forms and regulations prescribed by the Secretary, setting forth—
(1) the aggregate amount of benefits paid under the Railroad Retirement Act of 1974 (other than tier 1 railroad retirement benefits, as defined in section 86(d)(4)) to any individual during any calendar year,
(2) the employee contributions which are treated as having been paid for purposes of section 72(r),
(3) the name and address of such individual, and
(4) such other information as the Secretary may require.
(b) Statements to be furnished to persons with respect to whom information is required
The Railroad Retirement Board shall furnish to each individual whose name is required to be set forth in the return under subsection (a) a written statement showing—
(1) the aggregate amount of payments to such individual, and of employee contributions with respect thereto, required to be shown on the return, and
(2) such other information as the Secretary may require.
The written statement required under the preceding sentence shall be furnished to the individual on or before January 31 of the year following the calendar year for which the return under subsection (a) was required to be made.
(Added
Editorial Notes
References in Text
The Railroad Retirement Act of 1974, referred to in subsec. (a)(1), is act Aug. 29, 1935, ch. 812, as amended generally by
Amendments
2018—Subsec. (a)(2).
1986—Subsec. (b).
Statutory Notes and Related Subsidiaries
Effective Date of 1986 Amendment
Amendment by
Effective Date
Enactment of section applicable to benefits received after Dec. 31, 1983, in taxable years ending after such date, except for portions of lump-sum payments received after Dec. 31, 1983, if the generally applicable payment date for such portion was before Jan. 1, 1984, see section 227(b) of
Savings Provision
For provisions that nothing in amendment by
§6050H. Returns relating to mortgage interest received in trade or business from individuals
(a) Mortgage interest of $600 or more
Any person—
(1) who is engaged in a trade or business, and
(2) who, in the course of such trade or business, receives from any individual interest aggregating $600 or more for any calendar year on any mortgage,
shall make the return described in subsection (b) with respect to each individual from whom such interest was received at such time as the Secretary may by regulations prescribe.
(b) Form and manner of returns
A return is described in this subsection if such return—
(1) is in such form as the Secretary may prescribe,
(2) contains—
(A) the name and address of the individual from whom the interest described in subsection (a)(2) was received,
(B) the amount of such interest (other than points) received for the calendar year,
(C) the amount of points on the mortgage received during the calendar year and whether such points were paid directly by the borrower,
(D) the amount of outstanding principal on the mortgage as of the beginning of such calendar year,
(E) the date of the origination of the mortgage,
(F) the address (or other description in the case of property without an address) of the property which secures the mortgage, and
(G) such other information as the Secretary may prescribe.
(c) Application to governmental units
For purposes of subsection (a)—
(1) Treated as persons
The term "person" includes any governmental unit (and any agency or instrumentality thereof).
(2) Special rules
In the case of a governmental unit or any agency or instrumentality thereof—
(A) subsection (a) shall be applied without regard to the trade or business requirement contained therein, and
(B) any return required under subsection (a) shall be made by the officer or employee appropriately designated for the purpose of making such return.
(d) Statements to be furnished to individuals with respect to whom information is required
Every person required to make a return under subsection (a) shall furnish to each individual whose name is required to be set forth in such return a written statement showing—
(1) the name, address, and phone number of the information contact of the person required to make such return, and
(2) the aggregate amount of interest described in subsection (a)(2) (other than points) received by the person required to make such return from the individual to whom the statement is required to be furnished (and the information required under subparagraphs (C), (D), (E), and (F) of subsection (b)(2)).
The written statement required under the preceding sentence shall be furnished on or before January 31 of the year following the calendar year for which the return under subsection (a) was required to be made.
(e) Mortgage defined
For purposes of this section, except as provided in regulations prescribed by the Secretary, the term "mortgage" means any obligation secured by real property.
(f) Returns which would be required to be made by 2 or more persons
Except to the extent provided in regulations prescribed by the Secretary, in the case of interest received by any person on behalf of another person, only the person first receiving such interest shall be required to make the return under subsection (a).
(g) Special rules for cooperative housing corporations
For purposes of subsection (a), an amount received by a cooperative housing corporation from a tenant-stockholder shall be deemed to be interest received on a mortgage in the course of a trade or business engaged in by such corporation, to the extent of the tenant-stockholder's proportionate share of interest described in section 216(a)(2). Terms used in the preceding sentence shall have the same meanings as when used in section 216.
(h) Returns relating to mortgage insurance premiums
(1) In general
The Secretary may prescribe, by regulations, that any person who, in the course of a trade or business, receives from any individual premiums for mortgage insurance aggregating $600 or more for any calendar year, shall make a return with respect to each such individual. Such return shall be in such form, shall be made at such time, and shall contain such information as the Secretary may prescribe.
(2) Statement to be furnished to individuals with respect to whom information is required
Every person required to make a return under paragraph (1) shall furnish to each individual with respect to whom a return is made a written statement showing such information as the Secretary may prescribe. Such written statement shall be furnished on or before January 31 of the year following the calendar year for which the return under paragraph (1) was required to be made.
(3) Special rules
For purposes of this subsection—
(A) rules similar to the rules of subsection (c) shall apply, and
(B) the term "mortgage insurance" means—
(i) mortgage insurance provided by the Department of Veterans Affairs, the Federal Housing Administration, or the Rural Housing Service, and
(ii) private mortgage insurance (as defined by section 2 of the Homeowners Protection Act of 1998 (
(Added
Editorial Notes
References in Text
The date of the enactment of this subsection, referred to in subsec. (h)(3)(B)(ii), is the date of enactment of
Amendments
2018—Subsec. (h)(3)(B)(i).
2015—Subsec. (b)(2)(D) to (G).
Subsec. (d)(2).
2006—Subsec. (h).
1996—Subsec. (b)(2)(B).
Subsec. (d)(1).
1989—Subsec. (b)(2)(B).
Subsec. (b)(2)(C), (D).
Subsec. (d)(2).
1986—Subsec. (d).
Subsec. (g).
Statutory Notes and Related Subsidiaries
Effective Date of 2015 Amendment
Effective Date of 2006 Amendment
Amendment by
Effective Date of 1996 Amendment
Amendment by
Effective Date of 1989 Amendment
Effective Date of 1986 Amendment
Amendment by section 1501(c)(11) of
Amendment by section 1811(a)(1) of
Effective Date
"(1)
"(2)
Plan Amendments Not Required Until January 1, 1989
For provisions directing that if any amendments made by subtitle A or subtitle C of title XI [§§1101–1147 and 1171–1177] or title XVIII [§§1800–1899A] of
§6050I. Returns relating to cash received in trade or business, etc.
(a) Cash receipts of more than $10,000
Any person—
(1) who is engaged in a trade or business, and
(2) who, in the course of such trade or business, receives more than $10,000 in cash in 1 transaction (or 2 or more related transactions),
shall make the return described in subsection (b) with respect to such transaction (or related transactions) at such time as the Secretary may by regulations prescribe.
(b) Form and manner of returns
A return is described in this subsection if such return—
(1) is in such form as the Secretary may prescribe,
(2) contains—
(A) the name, address, and TIN of the person from whom the cash was received,
(B) the amount of cash received,
(C) the date and nature of the transaction, and
(D) such other information as the Secretary may prescribe.
(c) Exceptions
(1) Cash received by financial institutions
Subsection (a) shall not apply to—
(A) cash received in a transaction reported under
(B) cash received by any financial institution (as defined in subparagraphs (A), (B), (C), (D), (E), (F), (G), (J), (K), (R), and (S) of
(2) Transactions occurring outside the United States
Except to the extent provided in regulations prescribed by the Secretary, subsection (a) shall not apply to any transaction if the entire transaction occurs outside the United States.
(d) Cash includes foreign currency and certain monetary instruments
For purposes of this section, the term "cash" includes—
(1) foreign currency,
(2) to the extent provided in regulations prescribed by the Secretary, any monetary instrument (whether or not in bearer form) with a face amount of not more than $10,000, and
(3) any digital asset (as defined in section 6045(g)(3)(D)).
Paragraph (2) shall not apply to any check drawn on the account of the writer in a financial institution referred to in subsection (c)(1)(B).
(e) Statements to be furnished to persons with respect to whom information is required
Every person required to make a return under subsection (a) shall furnish to each person whose name is required to be set forth in such return a written statement showing—
(1) the name, address, and phone number of the information contact of the person required to make such return, and
(2) the aggregate amount of cash described in subsection (a) received by the person required to make such return.
The written statement required under the preceding sentence shall be furnished to the person on or before January 31 of the year following the calendar year for which the return under subsection (a) was required to be made.
(f) Structuring transactions to evade reporting requirements prohibited
(1) In general
No person shall for the purpose of evading the return requirements of this section—
(A) cause or attempt to cause a trade or business to fail to file a return required under this section,
(B) cause or attempt to cause a trade or business to file a return required under this section that contains a material omission or misstatement of fact, or
(C) structure or assist in structuring, or attempt to structure or assist in structuring, any transaction with one or more trades or businesses.
(2) Penalties
A person violating paragraph (1) of this subsection shall be subject to the same civil and criminal sanctions applicable to a person which fails to file or completes a false or incorrect return under this section.
(g) Cash received by criminal court clerks
(1) In general
Every clerk of a Federal or State criminal court who receives more than $10,000 in cash as bail for any individual charged with a specified criminal offense shall make a return described in paragraph (2) (at such time as the Secretary may by regulations prescribe) with respect to the receipt of such bail.
(2) Return
A return is described in this paragraph if such return—
(A) is in such form as the Secretary may prescribe, and
(B) contains—
(i) the name, address, and TIN of—
(I) the individual charged with the specified criminal offense, and
(II) each person posting the bail (other than a person licensed as a bail bondsman),
(ii) the amount of cash received,
(iii) the date the cash was received, and
(iv) such other information as the Secretary may prescribe.
(3) Specified criminal offense
For purposes of this subsection, the term "specified criminal offense" means—
(A) any Federal criminal offense involving a controlled substance,
(B) racketeering (as defined in
(C) money laundering (as defined in section 1956 or 1957 of such title), and
(D) any State criminal offense substantially similar to an offense described in subparagraph (A), (B), or (C).
(4) Information to Federal prosecutors
Each clerk required to include on a return under paragraph (1) the information described in paragraph (2)(B) with respect to an individual described in paragraph (2)(B)(i)(I) shall furnish (at such time as the Secretary may by regulations prescribe) a written statement showing such information to the United States Attorney for the jurisdiction in which such individual resides and the jurisdiction in which the specified criminal offense occurred.
(5) Information to payors of bail
Each clerk required to make a return under paragraph (1) shall furnish (at such time as the Secretary may by regulations prescribe) to each person whose name is required to be set forth in such return by reason of paragraph (2)(B)(i)(II) a written statement showing—
(A) the name and address of the clerk's office required to make the return, and
(B) the aggregate amount of cash described in paragraph (1) received by such clerk.
(Added
Editorial Notes
Amendments
2021—Subsec. (d)(3).
1996—Subsec. (e)(1).
1994—
Subsec. (g).
1990—Subsec. (d).
Subsec. (f).
1988—Subsec. (f).
1986—Subsec. (e).
Statutory Notes and Related Subsidiaries
Effective Date of 2021 Amendment
Amendment by
Effective Date of 1996 Amendment
Amendment by
Effective Date of 1994 Amendment
Effective Date of 1990 Amendment
"(1) The amendments made by subsections (a) and (b) [amending this section and
"(2) The amendment made by subsection (c) [amending this section] shall take effect on the date of the enactment of this Act.
"(3) Not later than June 1, 1991, the Secretary of the Treasury or his delegate shall prescribe regulations under section 6050I(d)(2) of the Internal Revenue Code of 1986 (as amended by this section)."
Effective Date of 1988 Amendment
Effective Date of 1986 Amendment
Amendment by
Effective Date
Regulations
Reports on Uses Made of Currency Transaction Reports
For requirement of Secretary of the Treasury to report to Congress on number of reports filed under this section yearly, the rate of compliance with reporting requirements, the manner in which Federal agencies collect, organize and analyze such data, and sanctions imposed and indictments filed for failure to comply, see section 101 of
No Inference To Be Drawn From Amendment
§6050J. Returns relating to foreclosures and abandonments of security
(a) In general
Any person who, in connection with a trade or business conducted by such person, lends money secured by property and who—
(1) in full or partial satisfaction of any indebtedness, acquires an interest in any property which is security for such indebtedness, or
(2) has reason to know that the property in which such person has a security interest has been abandoned,
shall make a return described in subsection (c) with respect to each of such acquisitions or abandonments, at such time as the Secretary may by regulations prescribe.
(b) Exception
Subsection (a) shall not apply to any loan to an individual secured by an interest in tangible personal property which is not held for investment and which is not used in a trade or business.
(c) Form and manner of return
The return required under subsection (a) with respect to any acquisition or abandonment of property—
(1) shall be in such form as the Secretary may prescribe,
(2) shall contain—
(A) the name and address of each person who is a borrower with respect to the indebtedness which is secured,
(B) a general description of the nature of such property and such indebtedness,
(C) in the case of a return required under subsection (a)(1)—
(i) the amount of such indebtedness at the time of such acquisition, and
(ii) the amount of indebtedness satisfied in such acquisition,
(D) in the case of a return required under subsection (a)(2), the amount of such indebtedness at the time of such abandonment, and
(E) such other information as the Secretary may prescribe.
(d) Applications to governmental units
For purposes of this section—
(1) Treated as persons
The term "person" includes any governmental unit (and any agency or instrumentality thereof).
(2) Special rules
In the case of a governmental unit or any agency or instrumentality thereof—
(A) subsection (a) shall be applied without regard to the trade or business requirement contained therein, and
(B) any return under this section shall be made by the officer or employee appropriately designated for the purpose of making such return.
(e) Statements to be furnished to persons with respect to whom information is required to be furnished
Every person required to make a return under subsection (a) shall furnish to each person whose name is required to be set forth in such return a written statement showing the name, address, and phone number of the information contact of the person required to make such return. The written statement required under the preceding sentence shall be furnished to the person on or before January 31 of the year following the calendar year for which the return under subsection (a) was made.
(f) Treatment of other dispositions
To the extent provided by regulations prescribed by the Secretary, any transfer of the property which secures the indebtedness to a person other than the lender shall be treated as an abandonment of such property.
(Added
Editorial Notes
Amendments
1996—Subsec. (e).
Statutory Notes and Related Subsidiaries
Effective Date of 1996 Amendment
Amendment by
Effective Date
§6050K. Returns relating to exchanges of certain partnership interests
(a) In general
Except as provided in regulations prescribed by the Secretary, if there is an exchange described in section 751(a) of any interest in a partnership during any calendar year, such partnership shall make a return for such calendar year stating—
(1) the name and address of the transferee and transferor in such exchange, and
(2) such other information as the Secretary may by regulations prescribe.
Such return shall be made at such time and in such manner as the Secretary may require by regulations.
(b) Statements to be furnished to transferor and transferee
Every partnership required to make a return under subsection (a) shall furnish to each person whose name is required to be set forth in such return a written statement showing—
(1) the name, address, and phone number of the information contact of the partnership required to make such return, and
(2) the information required to be shown on the return with respect to such person.
The written statement required under the preceding sentence shall be furnished to the person on or before January 31 of the year following the calendar year for which the return under subsection (a) was required to be made.
(c) Requirement that transferor notify partnership
(1) In general
In the case of any exchange described in subsection (a), the transferor of the partnership interest shall promptly notify the partnership of such exchange.
(2) Partnership not required to make return until notice
A partnership shall not be required to make a return under this section with respect to any exchange until the partnership is notified of such exchange.
(Added
Editorial Notes
Amendments
1996—Subsec. (b)(1).
1986—Subsec. (b).
Subsec. (c)(2).
Statutory Notes and Related Subsidiaries
Effective Date of 1996 Amendment
Amendment by
Effective Date of 1986 Amendment
Amendment by section 1501(c)(13) of
Amendment by section 1811(b)(2) of
Amendment by section 1811(b)(2) of
Effective Date
Plan Amendments Not Required Until January 1, 1989
For provisions directing that if any amendments made by subtitle A or subtitle C of title XI [§§1101–1147 and 1171–1177] or title XVIII [§§1800–1899A] of
§6050L. Returns relating to certain donated property
(a) Dispositions of donated property
(1) In general
If the donee of any charitable deduction property sells, exchanges, or otherwise disposes of such property within 3 years after its receipt, the donee shall make a return (in accordance with forms and regulations prescribed by the Secretary) showing—
(A) the name, address, and TIN of the donor,
(B) a description of the property,
(C) the date of the contribution,
(D) the amount received on the disposition,
(E) the date of such disposition,
(F) a description of the donee's use of the property, and
(G) a statement indicating whether the use of the property was related to the purpose or function constituting the basis for the donee's exemption under section 501.
In any case in which the donee indicates that the use of applicable property (as defined in section 170(e)(7)(C)) was related to the purpose or function constituting the basis for the exemption of the donee under section 501 under subparagraph (G), the donee shall include with the return the certification described in section 170(e)(7)(D) if such certification is made under section 170(e)(7).
(2) Definitions
For purposes of this subsection:
(A) Charitable deduction property
The term "charitable deduction property" means any property (other than publicly traded securities) contributed in a contribution for which a deduction was claimed under section 170 if the claimed value of such property (plus the claimed value of all similar items of property donated by the donor to 1 or more donees) exceeds $5,000.
(B) Publicly traded securities
The term "publicly traded securities" means securities for which (as of the date of the contribution) market quotations are readily available on an established securities market.
(b) Qualified intellectual property contributions
(1) In general
Each donee with respect to a qualified intellectual property contribution shall make a return (at such time and in such form and manner as the Secretary may by regulations prescribe) with respect to each specified taxable year of the donee showing—
(A) the name, address, and TIN of the donor,
(B) a description of the qualified intellectual property contributed,
(C) the date of the contribution, and
(D) the amount of net income of the donee for the taxable year which is properly allocable to the qualified intellectual property (determined without regard to paragraph (10)(B) of section 170(m) and with the modifications described in paragraphs (5) and (6) of such section).
(2) Definitions
For purposes of this subsection:
(A) In general
Terms used in this subsection which are also used in section 170(m) have the respective meanings given such terms in such section.
(B) Specified taxable year
The term "specified taxable year" means, with respect to any qualified intellectual property contribution, any taxable year of the donee any portion of which is part of the 10-year period beginning on the date of such contribution.
(c) Statement to be furnished to donors
Every person making a return under subsection (a) or (b) shall furnish a copy of such return to the donor at such time and in such manner as the Secretary may by regulations prescribe.
(Added
Editorial Notes
Amendments
2006—Subsec. (a)(1).
2004—
Statutory Notes and Related Subsidiaries
Effective Date of 2006 Amendment
Effective Date of 2004 Amendment
Amendment by
Effective Date
§6050M. Returns relating to persons receiving contracts from Federal executive agencies
(a) Requirement of reporting
The head of every Federal executive agency which enters into any contract shall make a return (at such time and in such form as the Secretary may by regulations prescribe) setting forth—
(1) the name, address, and TIN of each person with which such agency entered into a contract during the calendar year, and
(2) such other information as the Secretary may require.
(b) Federal executive agency
For purposes of this section, the term "Federal executive agency" means—
(1) any Executive agency (as defined in
(2) any military department (as defined in section 102 of such title), and
(3) the United States Postal Service and the Postal Regulatory Commission.
(c) Authority to extend reporting to licenses and subcontracts
To the extent provided in regulations, this section also shall apply to—
(1) licenses granted by Federal executive agencies, and
(2) subcontracts under contracts to which subsection (a) applies.
(d) Authority to prescribe minimum amounts
This section shall not apply to contracts or licenses in any class which are below a minimum amount or value which may be prescribed by the Secretary by regulations for such class.
(e) Exception for certain classified or confidential contracts
(1) In general
Except as provided in paragraph (2), this section shall not apply in the case of a contract described in paragraph (3).
(2) Reporting requirement
Each Federal executive agency which has entered into a contract described in paragraph (3) shall, upon a request of the Secretary which identifies a particular person, acknowledge whether such person has entered into such a contract with such agency and, if so, provide to the Secretary—
(A) the information required under this section with respect to such person, and
(B) such other information with respect to such person which the Secretary and the head of such Federal executive agency agree is appropriate.
(3) Description of contract
For purposes of this subsection, a contract between a Federal executive agency and another person is described in this paragraph if—
(A) the fact of the existence of such contract or the subject matter of such contract has been designated and clearly marked or clearly represented, pursuant to the provisions of Federal law or an Executive order, as requiring a specific degree of protection against unauthorized disclosure for reasons of national security, or
(B) the head of such Federal executive agency (or his designee) pursuant to regulations issued by such agency determines, in writing, that filing the required return under this section would interfere with the effective conduct of a confidential law enforcement or foreign counterintelligence activity.
(Added
Editorial Notes
Amendments
2006—Subsec. (b)(3).
2005—Subsec. (b)(1).
1988—Subsec. (e).
Statutory Notes and Related Subsidiaries
Effective Date of 1988 Amendment
Amendment by
Effective Date
§6050N. Returns regarding payments of royalties
(a) Requirement of reporting
Every person—
(1) who makes payments of royalties (or similar amounts) aggregating $10 or more to any other person during any calendar year, or
(2) who receives payments of royalties (or similar amounts) as a nominee and who makes payments aggregating $10 or more during any calendar year to any other person with respect to the royalties (or similar amounts) so received,
shall make a return according to the forms or regulations prescribed by the Secretary, setting forth the aggregate amount of such payments and the name and address of the person to whom paid.
(b) Statements to be furnished to persons with respect to whom information is furnished
Every person required to make a return under subsection (a) shall furnish to each person whose name is required to be set forth in such return a written statement showing—
(1) the name, address, and phone number of the information contact of the person required to make such return, and
(2) the aggregate amount of payments to the person required to be shown on such return.
The written statement required under the preceding sentence shall be furnished (either in person or in a statement mailing by first-class mail which includes adequate notice that the statement is enclosed) to the person on or before January 31 of the year following the calendar year for which the return under subsection (a) was made and shall be in such form as the Secretary may prescribe by regulations.
(c) Exception for payments to certain persons
Except to the extent otherwise provided in regulations, this section shall not apply to any amount paid to a person described in subparagraph (A), (B), (C), (D), (E), or (F) of section 6049(b)(4).
(Added
Editorial Notes
Amendments
1996—Subsec. (b)(1).
Statutory Notes and Related Subsidiaries
Effective Date of 1996 Amendment
Amendment by
Effective Date
§6050P. Returns relating to the cancellation of indebtedness by certain entities
(a) In general
Any applicable entity which discharges (in whole or in part) the indebtedness of any person during any calendar year shall make a return (at such time and in such form as the Secretary may by regulations prescribe) setting forth—
(1) the name, address, and TIN of each person whose indebtedness was discharged during such calendar year,
(2) the date of the discharge and the amount of the indebtedness discharged, and
(3) such other information as the Secretary may prescribe.
(b) Exception
Subsection (a) shall not apply to any discharge of less than $600.
(c) Definitions and special rules
For purposes of this section—
(1) Applicable entity
The term "applicable entity" means—
(A) an executive, judicial, or legislative agency (as defined in
(B) an applicable financial entity.
(2) Applicable financial entity
The term "applicable financial entity" means—
(A) any financial institution described in section 581 or 591(a) and any credit union,
(B) the Federal Deposit Insurance Corporation, the Resolution Trust Corporation, the National Credit Union Administration, and any other Federal executive agency (as defined in section 6050M), and any successor or subunit of any of the foregoing,
(C) any other corporation which is a direct or indirect subsidiary of an entity referred to in subparagraph (A) but only if, by virtue of being affiliated with such entity, such other corporation is subject to supervision and examination by a Federal or State agency which regulates entities referred to in subparagraph (A), and
(D) any organization a significant trade or business of which is the lending of money.
(3) Governmental units
In the case of an entity described in paragraph (1)(A) or (2)(B), any return under this section shall be made by the officer or employee appropriately designated for the purpose of making such return.
(d) Statements to be furnished to persons with respect to whom information is required to be furnished
Every applicable entity required to make a return under subsection (a) shall furnish to each person whose name is required to be set forth in such return a written statement showing—
(1) the name and address of the entity required to make such return, and
(2) the information required to be shown on the return with respect to such person.
The written statement required under the preceding sentence shall be furnished to the person on or before January 31 of the year following the calendar year for which the return under subsection (a) was made.
(e) Alternative procedure
In lieu of making a return required under subsection (a), an agency described in subsection (c)(1)(A) may submit to the Secretary (at such time and in such form as the Secretary may by regulations prescribe) information sufficient for the Secretary to complete such a return on behalf of such agency. Upon receipt of such information, the Secretary shall complete such return and provide a copy of such return to such agency.
(Added
Editorial Notes
Amendments
1999—Subsec. (c)(2)(D).
1996—
Subsec. (a).
Subsec. (c).
Subsec. (d).
Subsec. (e).
Statutory Notes and Related Subsidiaries
Effective Date of 1999 Amendment
Effective Date
"(1)
"(2)
§6050Q. Certain long-term care benefits
(a) Requirement of reporting
Any person who pays long-term care benefits shall make a return, according to the forms or regulations prescribed by the Secretary, setting forth—
(1) the aggregate amount of such benefits paid by such person to any individual during any calendar year,
(2) whether or not such benefits are paid in whole or in part on a per diem or other periodic basis without regard to the expenses incurred during the period to which the payments relate,
(3) the name, address, and TIN of such individual, and
(4) the name, address, and TIN of the chronically ill or terminally ill individual on account of whose condition such benefits are paid.
(b) Statements to be furnished to persons with respect to whom information is required
Every person required to make a return under subsection (a) shall furnish to each individual whose name is required to be set forth in such return a written statement showing—
(1) the name, address, and phone number of the information contact of the person making the payments, and
(2) the aggregate amount of long-term care benefits paid to the individual which are required to be shown on such return.
The written statement required under the preceding sentence shall be furnished to the individual on or before January 31 of the year following the calendar year for which the return under subsection (a) was required to be made.
(c) Long-term care benefits
For purposes of this section, the term "long-term care benefit" means—
(1) any payment under a product which is advertised, marketed, or offered as long-term care insurance, and
(2) any payment which is excludable from gross income by reason of section 101(g).
(Added
Editorial Notes
Amendments
1997—Subsec. (b)(1).
Statutory Notes and Related Subsidiaries
Effective Date of 1997 Amendment
Amendment by
Effective Date
§6050R. Returns relating to certain purchases of fish
(a) Requirement of reporting
Every person—
(1) who is engaged in the trade or business of purchasing fish for resale from any person engaged in the trade or business of catching fish; and
(2) who makes payments in cash in the course of such trade or business to such a person of $600 or more during any calendar year for the purchase of fish,
shall make a return (at such times as the Secretary may prescribe) described in subsection (b) with respect to each person to whom such a payment was made during such calendar year.
(b) Return
A return is described in this subsection if such return—
(1) is in such form as the Secretary may prescribe, and
(2) contains—
(A) the name, address, and TIN of each person to whom a payment described in subsection (a)(2) was made during the calendar year,
(B) the aggregate amount of such payments made to such person during such calendar year and the date and amount of each such payment, and
(C) such other information as the Secretary may require.
(c) Statement to be furnished with respect to whom information is required
Every person required to make a return under subsection (a) shall furnish to each person whose name is required to be set forth in such return a written statement showing—
(1) the name, address, and phone number of the information contact of the person required to make such a return, and
(2) the aggregate amount of payments to the person required to be shown on the return.
The written statement required under the preceding sentence shall be furnished to the person on or before January 31 of the year following the calendar year for which the return under subsection (a) is required to be made.
(d) Definitions
For purposes of this section:
(1) Cash
The term "cash" has the meaning given such term by section 6050I(d).
(2) Fish
The term "fish" includes other forms of aquatic life.
(Added
Editorial Notes
Amendments
1998—Subsec. (b)(2)(A).
1997—
Subsec. (c)(1).
Statutory Notes and Related Subsidiaries
Effective Date of 1997 Amendment
Amendment by
Effective Date
§6050S. Returns relating to higher education tuition and related expenses
(a) In general
Any person—
(1) which is an eligible educational institution which enrolls any individual for any academic period;
(2) which is engaged in a trade or business of making payments to any individual under an insurance arrangement as reimbursements or refunds (or similar amounts) of qualified tuition and related expenses; or
(3) except as provided in regulations, which is engaged in a trade or business and, in the course of which, receives from any individual interest aggregating $600 or more for any calendar year on one or more qualified education loans,
shall make the return described in subsection (b) with respect to the individual at such time as the Secretary may by regulations prescribe.
(b) Form and manner of returns
A return is described in this subsection if such return—
(1) is in such form as the Secretary may prescribe, and
(2) contains—
(A) the name, address, and TIN of any individual—
(i) who is or has been enrolled at the institution and with respect to whom transactions described in subparagraph (B) are made during the calendar year, or
(ii) with respect to whom payments described in subsection (a)(2) or (a)(3) were made or received,
(B) the—
(i) aggregate amount of payments received for qualified tuition and related expenses with respect to the individual described in subparagraph (A) during the calendar year,
(ii) aggregate amount of grants received by such individual for payment of costs of attendance that are administered and processed by the institution during such calendar year,
(iii) amount of any adjustments to the aggregate amounts reported by the institution pursuant to clause (i) or (ii) with respect to such individual for a prior calendar year,
(iv) aggregate amount of reimbursements or refunds (or similar amounts) paid to such individual during the calendar year by a person engaged in a trade or business described in subsection (a)(2), and
(v) aggregate amount of interest received for the calendar year from such individual,
(C) the employer identification number of the institution, and
(D) such other information as the Secretary may prescribe.
(c) Application to governmental units
For purposes of this section—
(1) a governmental unit or any agency or instrumentality thereof shall be treated as a person, and
(2) any return required under subsection (a) by such governmental entity shall be made by the officer or employee appropriately designated for the purpose of making such return.
(d) Statements to be furnished to individuals with respect to whom information is required
Every person required to make a return under subsection (a) shall furnish to each individual whose name is required to be set forth in such return under subparagraph (A) of subsection (b)(2) a written statement showing—
(1) the name, address, and phone number of the information contact of the person required to make such return, and
(2) the information required by subsection (b)(2).
The written statement required under the preceding sentence shall be furnished on or before January 31 of the year following the calendar year for which the return under subsection (a) was required to be made.
(e) Definitions
For purposes of this section, the terms "eligible educational institution" and "qualified tuition and related expenses" have the meanings given such terms by section 25A (without regard to subsection (g)(2) thereof), and except as provided in regulations, the term "qualified education loan" has the meaning given such term by section 221(d)(1).
(f) Returns which would be required to be made by 2 or more persons
Except to the extent provided in regulations prescribed by the Secretary, in the case of any amount received by any person on behalf of another person, only the person first receiving such amount shall be required to make the return under subsection (a).
(g) Regulations
The Secretary shall prescribe such regulations as may be necessary to carry out the provisions of this section. No penalties shall be imposed under part II of subchapter B of
(Added and amended
Editorial Notes
Amendments
2015—Subsec. (b)(2)(B)(i).
Subsec. (b)(2)(C), (D).
Subsec. (d)(2).
2002—Subsec. (a)(1).
"(A) which receives payments for qualified tuition and related expenses with respect to any individual for any calendar year; or
"(B) which makes reimbursements or refunds (or similar amounts) to any individual of qualified tuition and related expenses;".
Subsec. (b)(1).
Subsec. (b)(2)(A).
Subsec. (b)(2)(B).
"(i) aggregate amount of payments for qualified tuition and related expenses received with respect to the individual described in subparagraph (A) during the calendar year,
"(ii) the amount of any grant received by such individual for payment of costs of attendance and processed by the person making such return during such calendar year,
"(iii) aggregate amount of reimbursements or refunds (or similar amounts) paid to such individual during the calendar year by the person making such return, and and
"(iv) aggregate amount of interest received for the calendar year from such individual, and".
Subsec. (b)(2)(C), (D).
Subsec. (d).
Subsec. (d)(2).
2001—Subsec. (e).
1998—Subsec. (a).
"(1) which is an eligible educational institution which receives payments for qualified tuition and related expenses with respect to any individual for any calendar year, or
"(2) which is engaged in a trade or business and which, in the course of such trade or business—
"(A) makes payments during any calendar year to any individual which constitutes reimbursements or refunds (or similar amounts) of qualified tuition and related expenses of such individual, or
"(B) except as provided in regulations, receives from any individual interest aggregating $600 or more for any calendar year on 1 or more qualified education loans,
shall make the return described in subsection (b) with respect to the individual at such time as the Secretary may by regulations prescribe."
Subsec. (b)(2)(C)(ii).
Subsec. (b)(2)(C)(iii).
Subsec. (b)(2)(C)(iv).
Subsec. (d)(2).
Subsec. (e).
1997—Subsec. (a)(2).
Subsec. (b)(2)(A).
Subsec. (b)(2)(C)(iii).
Subsec. (e).
Statutory Notes and Related Subsidiaries
Effective Date of 2015 Amendment
Amendment by
Effective Date of 2002 Amendment
Effective Date of 2001 Amendment
Amendment by
Effective Date of 1998 Amendment
Amendment by section 6004(a)(2) of
Effective Date of 1997 Amendment
Amendment by section 202(c) of
Effective Date
Section applicable to expenses paid after Dec. 31, 1997 (in taxable years ending after such date) for education furnished in academic periods beginning after such date, see section 201(f) of
§6050T. Returns relating to credit for health insurance costs of eligible individuals
(a) Requirement of reporting
Every person who is entitled to receive payments for any month of any calendar year under section 7527 (relating to advance payment of credit for health insurance costs of eligible individuals) with respect to any certified individual (as defined in section 7527(c)) shall, at such time as the Secretary may prescribe, make the return described in subsection (b) with respect to each such individual.
(b) Form and manner of returns
A return is described in this subsection if such return—
(1) is in such form as the Secretary may prescribe, and
(2) contains—
(A) the name, address, and TIN of each individual referred to in subsection (a),
(B) the number of months for which amounts were entitled to be received with respect to such individual under section 7527 (relating to advance payment of credit for health insurance costs of eligible individuals),
(C) the amount entitled to be received for each such month, and
(D) such other information as the Secretary may prescribe.
(c) Statements to be furnished to individuals with respect to whom information is required
Every person required to make a return under subsection (a) shall furnish to each individual whose name is required to be set forth in such return a written statement showing—
(1) the name and address of the person required to make such return and the phone number of the information contact for such person, and
(2) the information required to be shown on the return with respect to such individual.
The written statement required under the preceding sentence shall be furnished on or before January 31 of the year following the calendar year for which the return under subsection (a) is required to be made.
(Added
Statutory Notes and Related Subsidiaries
Effective Date
Construction
Nothing in title II of
§6050U. Charges or payments for qualified long-term care insurance contracts under combined arrangements
(a) Requirement of reporting
Any person who makes a charge against the cash value of an annuity contract, or the cash surrender value of a life insurance contract, which is excludible from gross income under section 72(e)(11) shall make a return, according to the forms or regulations prescribed by the Secretary, setting forth—
(1) the amount of the aggregate of such charges against each such contract for the calendar year,
(2) the amount of the reduction in the investment in each such contract by reason of such charges, and
(3) the name, address, and TIN of the individual who is the holder of each such contract.
(b) Statements to be furnished to persons with respect to whom information is required
Every person required to make a return under subsection (a) shall furnish to each individual whose name is required to be set forth in such return a written statement showing—
(1) the name, address, and phone number of the information contact of the person making the payments, and
(2) the information required to be shown on the return with respect to such individual.
The written statement required under the preceding sentence shall be furnished to the individual on or before January 31 of the year following the calendar year for which the return under subsection (a) was required to be made.
(Added
Statutory Notes and Related Subsidiaries
Effective Date
Section applicable to contracts issued after Dec. 31, 1996, but only with respect to taxable years beginning after Dec. 31, 2009, and to charges made after Dec. 31, 2009, see section 844(g)(1), (3) of
§6050V. Returns relating to applicable insurance contracts in which certain exempt organizations hold interests
(a) In general
Each applicable exempt organization which makes a reportable acquisition shall make the return described in subsection (c).
(b) Time for making return
Any applicable exempt organization required to make a return under subsection (a) shall file such return at such time as may be established by the Secretary.
(c) Form and manner of returns
A return is described in this subsection if such return—
(1) is in such form as the Secretary prescribes,
(2) contains the name, address, and taxpayer identification number of the applicable exempt organization and the issuer of the applicable insurance contract, and
(3) contains such other information as the Secretary may prescribe.
(d) Definitions
For purposes of this section—
(1) Reportable acquisition
The term "reportable acquisition" means the acquisition by an applicable exempt organization of a direct or indirect interest in any applicable insurance contract in any case in which such acquisition is a part of a structured transaction involving a pool of such contracts.
(2) Applicable insurance contract
(A) In general
The term "applicable insurance contract" means any life insurance, annuity, or endowment contract with respect to which both an applicable exempt organization and a person other than an applicable exempt organization have directly or indirectly held an interest in the contract (whether or not at the same time).
(B) Exceptions
Such term shall not include a life insurance, annuity, or endowment contract if—
(i) all persons directly or indirectly holding any interest in the contract (other than applicable exempt organizations) have an insurable interest in the insured under the contract independent of any interest of an applicable exempt organization in the contract,
(ii) the sole interest in the contract of an applicable exempt organization or each person other than an applicable exempt organization is as a named beneficiary, or
(iii) the sole interest in the contract of each person other than an applicable exempt organization is—
(I) as a beneficiary of a trust holding an interest in the contract, but only if the person's designation as such beneficiary was made without consideration and solely on a purely gratuitous basis, or
(II) as a trustee who holds an interest in the contract in a fiduciary capacity solely for the benefit of applicable exempt organizations or persons otherwise described in subclause (I) or clause (i) or (ii).
(3) Applicable exempt organization
The term "applicable exempt organization" means—
(A) an organization described in section 170(c),
(B) an organization described in section 168(h)(2)(A)(iv), or
(C) an organization not described in paragraph (1) or (2) which is described in section 2055(a) or section 2522(a).
(e) Termination
This section shall not apply to reportable acquisitions occurring after the date which is 2 years after the date of the enactment of this section.
(Added
Editorial Notes
References in Text
The date of the enactment of this section, referred to in subsec. (e), is the date of enactment of
Codification
Section 1211(a)(1) of
Statutory Notes and Related Subsidiaries
Effective Date
§6050W. Returns relating to payments made in settlement of payment card and third party network transactions
(a) In general
Each payment settlement entity shall make a return for each calendar year setting forth—
(1) the name, address, and TIN of each participating payee to whom one or more payments in settlement of reportable payment transactions are made, and
(2) the gross amount of the reportable payment transactions with respect to each such participating payee.
Such return shall be made at such time and in such form and manner as the Secretary may require by regulations.
(b) Payment settlement entity
For purposes of this section—
(1) In general
The term "payment settlement entity" means—
(A) in the case of a payment card transaction, the merchant acquiring entity, and
(B) in the case of a third party network transaction, the third party settlement organization.
(2) Merchant acquiring entity
The term "merchant acquiring entity" means the bank or other organization which has the contractual obligation to make payment to participating payees in settlement of payment card transactions.
(3) Third party settlement organization
The term "third party settlement organization" means the central organization which has the contractual obligation to make payment to participating payees of third party network transactions.
(4) Special rules related to intermediaries
For purposes of this section—
(A) Aggregated payees
In any case where reportable payment transactions of more than one participating payee are settled through an intermediary—
(i) such intermediary shall be treated as the participating payee for purposes of determining the reporting obligations of the payment settlement entity with respect to such transactions, and
(ii) such intermediary shall be treated as the payment settlement entity with respect to the settlement of such transactions with the participating payees.
(B) Electronic payment facilitators
In any case where an electronic payment facilitator or other third party makes payments in settlement of reportable payment transactions on behalf of the payment settlement entity, the return under subsection (a) shall be made by such electronic payment facilitator or other third party in lieu of the payment settlement entity.
(c) Reportable payment transaction
For purposes of this section—
(1) In general
The term "reportable payment transaction" means any payment card transaction and any third party network transaction.
(2) Payment card transaction
The term "payment card transaction" means any transaction in which a payment card is accepted as payment.
(3) Third party network transaction
The term "third party network transaction" means any transaction described in subsection (d)(3)(A)(iii) which is settled through a third party payment network.
(d) Other definitions
For purposes of this section—
(1) Participating payee
(A) In general
The term "participating payee" means—
(i) in the case of a payment card transaction, any person who accepts a payment card as payment, and
(ii) in the case of a third party network transaction, any person who accepts payment from a third party settlement organization in settlement of such transaction.
(B) Exclusion of foreign persons
Except as provided by the Secretary in regulations or other guidance, such term shall not include any person with a foreign address. Notwithstanding the preceding sentence, a person with only a foreign address shall not be treated as a participating payee with respect to any payment settlement entity solely because such person receives payments from such payment settlement entity in dollars.
(C) Inclusion of governmental units
The term "person" includes any governmental unit (and any agency or instrumentality thereof).
(2) Payment card
The term "payment card" means any card which is issued pursuant to an agreement or arrangement which provides for—
(A) one or more issuers of such cards,
(B) a network of persons unrelated to each other, and to the issuer, who agree to accept such cards as payment, and
(C) standards and mechanisms for settling the transactions between the merchant acquiring entities and the persons who agree to accept such cards as payment.
The acceptance as payment of any account number or other indicia associated with a payment card shall be treated for purposes of this section in the same manner as accepting such payment card as payment.
(3) Third party payment network
The term "third party payment network" means any agreement or arrangement—
(A) which involves the establishment of accounts with a central organization by a substantial number of persons who—
(i) are unrelated to such organization,
(ii) provide goods or services, and
(iii) have agreed to settle transactions for the provision of such goods or services pursuant to such agreement or arrangement,
(B) which provides for standards and mechanisms for settling such transactions, and
(C) which guarantees persons providing goods or services pursuant to such agreement or arrangement that such persons will be paid for providing such goods or services.
Such term shall not include any agreement or arrangement which provides for the issuance of payment cards.
(e) De minimis exception for third party settlement organizations
A third party settlement organization shall not be required to report any information under subsection (a) with respect to third party network transactions of any participating payee if the amount which would otherwise be reported under subsection (a)(2) with respect to such transactions does not exceed $600.
(f) Statements to be furnished to persons with respect to whom information is required
Every person required to make a return under subsection (a) shall furnish to each person with respect to whom such a return is required a written statement showing—
(1) the name, address, and phone number of the information contact of the person required to make such return, and
(2) the gross amount of the reportable payment transactions with respect to the person required to be shown on the return.
The written statement required under the preceding sentence shall be furnished to the person on or before January 31 of the year following the calendar year for which the return under subsection (a) was required to be made. Such statement may be furnished electronically, and if so, the email address of the person required to make such return may be shown in lieu of the phone number.
(g) Regulations
The Secretary may prescribe such regulations or other guidance as may be necessary or appropriate to carry out this section, including rules to prevent the reporting of the same transaction more than once.
(Added
Editorial Notes
Amendments
2021—Subsec. (c)(3).
Subsec. (e).
2018—Subsec. (d)(1)(B).
Statutory Notes and Related Subsidiaries
Effective Date of 2021 Amendment
"(1)
"(2)
Effective Date of 2018 Amendment
Effective Date
Section applicable to returns for calendar years beginning after Dec. 31, 2010, with exception for purposes of carrying out any TIN matching program, see section 3091(e) of
§6050X. Information with respect to certain fines, penalties, and other amounts
(a) Requirement of reporting
(1) In general
The appropriate official of any government or any entity described in section 162(f)(5) which is involved in a suit or agreement described in paragraph (2) shall make a return in such form as determined by the Secretary setting forth—
(A) the amount required to be paid as a result of the suit or agreement to which paragraph (1) of section 162(f) applies,
(B) any amount required to be paid as a result of the suit or agreement which constitutes restitution or remediation of property, and
(C) any amount required to be paid as a result of the suit or agreement for the purpose of coming into compliance with any law which was violated or involved in the investigation or inquiry.
(2) Suit or agreement described
(A) In general
A suit or agreement is described in this paragraph if—
(i) it is—
(I) a suit with respect to a violation of any law over which the government or entity has authority and with respect to which there has been a court order, or
(II) an agreement which is entered into with respect to a violation of any law over which the government or entity has authority, or with respect to an investigation or inquiry by the government or entity into the potential violation of any law over which such government or entity has authority, and
(ii) the aggregate amount involved in all court orders and agreements with respect to the violation, investigation, or inquiry is $600 or more.
(B) Adjustment of reporting threshold
The Secretary shall adjust the $600 amount in subparagraph (A)(ii) as necessary in order to ensure the efficient administration of the internal revenue laws.
(3) Time of filing
The return required under this subsection shall be filed at the time the agreement is entered into, as determined by the Secretary.
(b) Statements to be furnished to individuals involved in the settlement
Every person required to make a return under subsection (a) shall furnish to each person who is a party to the suit or agreement a written statement showing—
(1) the name of the government or entity, and
(2) the information supplied to the Secretary under subsection (a)(1).
The written statement required under the preceding sentence shall be furnished to the person at the same time the government or entity provides the Secretary with the information required under subsection (a).
(c) Appropriate official defined
For purposes of this section, the term "appropriate official" means the officer or employee having control of the suit, investigation, or inquiry or the person appropriately designated for purposes of this section.
(Added
Statutory Notes and Related Subsidiaries
Effective Date
§6050Y. Returns relating to certain life insurance contract transactions
(a) Requirement of reporting of certain payments
(1) In general
Every person who acquires a life insurance contract or any interest in a life insurance contract in a reportable policy sale during any taxable year shall make a return for such taxable year (at such time and in such manner as the Secretary shall prescribe) setting forth—
(A) the name, address, and TIN of such person,
(B) the name, address, and TIN of each recipient of payment in the reportable policy sale,
(C) the date of such sale,
(D) the name of the issuer of the life insurance contract sold and the policy number of such contract, and
(E) the amount of each payment.
(2) Statement to be furnished to persons with respect to whom information is required
Every person required to make a return under this subsection shall furnish to each person whose name is required to be set forth in such return a written statement showing—
(A) the name, address, and phone number of the information contact of the person required to make such return, and
(B) the information required to be shown on such return with respect to such person, except that in the case of an issuer of a life insurance contract, such statement is not required to include the information specified in paragraph (1)(E).
(b) Requirement of reporting of seller's basis in life insurance contracts
(1) In general
Upon receipt of the statement required under subsection (a)(2) or upon notice of a transfer of a life insurance contract to a foreign person, each issuer of a life insurance contract shall make a return (at such time and in such manner as the Secretary shall prescribe) setting forth—
(A) the name, address, and TIN of the seller who transfers any interest in such contract in such sale,
(B) the investment in the contract (as defined in section 72(e)(6)) with respect to such seller, and
(C) the policy number of such contract.
(2) Statement to be furnished to persons with respect to whom information is required
Every person required to make a return under this subsection shall furnish to each person whose name is required to be set forth in such return a written statement showing—
(A) the name, address, and phone number of the information contact of the person required to make such return, and
(B) the information required to be shown on such return with respect to each seller whose name is required to be set forth in such return.
(c) Requirement of reporting with respect to reportable death benefits
(1) In general
Every person who makes a payment of reportable death benefits during any taxable year shall make a return for such taxable year (at such time and in such manner as the Secretary shall prescribe) setting forth—
(A) the name, address, and TIN of the person making such payment,
(B) the name, address, and TIN of each recipient of such payment,
(C) the date of each such payment,
(D) the gross amount of each such payment, and
(E) such person's estimate of the investment in the contract (as defined in section 72(e)(6)) with respect to the buyer.
(2) Statement to be furnished to persons with respect to whom information is required
Every person required to make a return under this subsection shall furnish to each person whose name is required to be set forth in such return a written statement showing—
(A) the name, address, and phone number of the information contact of the person required to make such return, and
(B) the information required to be shown on such return with respect to each recipient of payment whose name is required to be set forth in such return.
(d) Definitions
For purposes of this section:
(1) Payment
The term "payment" means, with respect to any reportable policy sale, the amount of cash and the fair market value of any consideration transferred in the sale.
(2) Reportable policy sale
The term "reportable policy sale" has the meaning given such term in section 101(a)(3)(B).
(3) Issuer
The term "issuer" means any life insurance company that bears the risk with respect to a life insurance contract on the date any return or statement is required to be made under this section.
(4) Reportable death benefits
The term "reportable death benefits" means amounts paid by reason of the death of the insured under a life insurance contract that has been transferred in a reportable policy sale.
(Added
Statutory Notes and Related Subsidiaries
Effective Date
Section applicable to reportable policy sales (as defined in subsection (d)(2) of this section) after Dec. 31, 2017, and reportable death benefits (as defined in subsection (d)(4) of this section) paid after Dec. 31, 2017, see section 13520(d) of
§6050Z. Reports relating to long-term care premium statements
(a) Requirement of reporting
Any issuer of certified long-term care insurance (as defined in section 401(a)(39)(C)) who provides a long-term care premium statement with respect to any purchaser pursuant to section 401(a)(39)(E) for a calendar year, shall make a return not later than February 1 of the succeeding calendar year, according to forms or regulations prescribed by the Secretary, setting forth with respect to each such purchaser—
(1) the name and taxpayer identification number of such issuer,
(2) a statement that the coverage is certified long-term care insurance as defined in section 401(a)(39)(C),
(3) the name of the owner of such coverage,
(4) identification of the individual covered and such individual's relationship to the owner,
(5) the premiums paid for the coverage for the calendar year, and
(6) such other information as the Secretary may require.
(b) Statement to be furnished to persons with respect to whom information is required
Every person required to make a return under subsection (a) shall furnish to each individual whose name is required to be set forth in such return a written statement showing—
(1) the name, address, and phone number of the information contact of the issuer of the contract or coverage, and
(2) the aggregate amount of premiums and charges paid under the contract or coverage covering the insured individual during the calendar year.
The written statement required under the preceding sentence shall be furnished to the individual or individuals on or before January 31 of the year following the calendar year for which the return required under subsection (a) was required to be made.
(c) Contracts or coverage covering more than one insured
In the case of contracts or coverage covering more than one insured, the return and statement required by subsections (a) and (b) shall identify only the portion of the premium that is properly allocable to the insured in respect of whom the return or statement is made.
(d) Statement to be furnished on request
If any individual to whom a return is required to be furnished under subsection (b) requests that such a return be furnished at any time before the close of the calendar year, the person required to make the return under subsection (b) shall comply with such request and shall furnish to the Secretary at such time a copy of the return so provided.
(Added
Statutory Notes and Related Subsidiaries
Effective Date
Section applicable to distributions made after the date which is 3 years after Dec. 29, 2022, see section 334(e) of
Subpart C—Information Regarding Wages Paid Employees
Editorial Notes
Amendments
1965—
1964—
§6051. Receipts for employees
(a) Requirement
Every person required to deduct and withhold from an employee a tax under section 3101 or 3402, or who would have been required to deduct and withhold a tax under section 3402 (determined without regard to subsection (n)) if the employee had claimed no more than one withholding exemption, or every employer engaged in a trade or business who pays remuneration for services performed by an employee, including the cash value of such remuneration paid in any medium other than cash, shall furnish to each such employee in respect of the remuneration paid by such person to such employee during the calendar year, on or before January 31 of the succeeding year, or, if his employment is terminated before the close of such calendar year, within 30 days after the date of receipt of a written request from the employee if such 30-day period ends before January 31, a written statement showing the following:
(1) the name of such person,
(2) the name of the employee (and an identifying number for the employee if wages as defined in section 3121(a) have been paid),
(3) the total amount of wages as defined in section 3401(a),
(4) the total amount deducted and withheld as tax under section 3402,
(5) the total amount of wages as defined in section 3121(a),
(6) the total amount deducted and withheld as tax under section 3101,
[(7) Repealed.
(8) the total amount of elective deferrals (within the meaning of section 402(g)(3)) and compensation deferred under section 457, including the amount of designated Roth contributions (as defined in section 402A),
(9) the total amount incurred for dependent care assistance with respect to such employee under a dependent care assistance program described in section 129(d),
(10) in the case of an employee who is a member of the Armed Forces of the United States, such employee's earned income as determined for purposes of section 32 (relating to earned income credit),
(11) the amount contributed to any Archer MSA (as defined in section 220(d)) of such employee or such employee's spouse,
(12) the amount contributed to any health savings account (as defined in section 223(d)) of such employee or such employee's spouse,
(13) the total amount of deferrals for the year under a nonqualified deferred compensation plan (within the meaning of section 409A(d)),
(14) the aggregate cost (determined under rules similar to the rules of section 4980B(f)(4)) of applicable employer-sponsored coverage (as defined in subsection (g)), except that this paragraph shall not apply to—
(A) coverage to which paragraphs (11) and (12) apply, or
(B) the amount of any salary reduction contributions to a flexible spending arrangement (within the meaning of section 125),
(15) the total amount of permitted benefit (as defined in section 9831(d)(3)(C)) for the year under a qualified small employer health reimbursement arrangement (as defined in section 9831(d)(2)) with respect to the employee,
(16) the amount includible in gross income under subparagraph (A) of section 83(i)(1) with respect to an event described in subparagraph (B) of such section which occurs in such calendar year, and
(17) the aggregate amount of income which is being deferred pursuant to elections under section 83(i), determined as of the close of the calendar year.
In the case of compensation paid for service as a member of a uniformed service, the statement shall show, in lieu of the amount required to be shown by paragraph (5), the total amount of wages as defined in section 3121(a), computed in accordance with such section and section 3121(i)(2). In the case of compensation paid for service as a volunteer or volunteer leader within the meaning of the Peace Corps Act, the statement shall show, in lieu of the amount required to be shown by paragraph (5), the total amount of wages as defined in section 3121(a), computed in accordance with such section and section 3121(i)(3). In the case of tips received by an employee in the course of his employment, the amounts required to be shown by paragraphs (3) and (5) shall include only such tips as are included in statements furnished to the employer pursuant to section 6053(a). The amounts required to be shown by paragraph (5) shall not include wages which are exempted pursuant to sections 3101(c) and 3111(c) from the taxes imposed by sections 3101 and 3111. In the case of the amounts required to be shown by paragraph (13), the Secretary may (by regulation) establish a minimum amount of deferrals below which paragraph (13) does not apply.
(b) Special rule as to compensation of members of Armed Forces
In the case of compensation paid for service as a member of the Armed Forces, the statement required by subsection (a) shall be furnished if any tax was withheld during the calendar year under section 3402, or if any of the compensation paid during such year is includible in gross income under
(c) Additional requirements
The statements required to be furnished pursuant to this section in respect of any remuneration shall be furnished at such other times, shall contain such other information, and shall be in such form as the Secretary may by regulations prescribe. The statements required under this section shall also show the proportion of the total amount withheld as tax under section 3101 which is for financing the cost of hospital insurance benefits under part A of title XVIII of the Social Security Act.
(d) Statements to constitute information returns
A duplicate of any statement made pursuant to this section and in accordance with regulations prescribed by the Secretary shall, when required by such regulations, be filed with the Secretary.
(e) Railroad employees
(1) Additional requirement
Every person required to deduct and withhold tax under section 3201 from an employee shall include on or with the statement required to be furnished such employee under subsection (a) a notice concerning the provisions of this title with respect to the allowance of a credit or refund of the tax on wages imposed by section 3101(b) and the tax on compensation imposed by section 3201 or 3211 which is treated as a tax on wages imposed by section 3101(b).
(2) Information to be supplied to employees
Each person required to deduct and withhold tax under section 3201 during any year from an employee who has also received wages during such year subject to the tax imposed by section 3101(b) shall, upon request of such employee, furnish to him a written statement showing—
(A) the total amount of compensation with respect to which the tax imposed by section 3201 was deducted,
(B) the total amount deducted as tax under section 3201, and
(C) the portion of the total amount deducted as tax under section 3201 which is for financing the cost of hospital insurance under part A of title XVIII of the Social Security Act.
(f) Statements required in case of sick pay paid by third parties
(1) Statements required from payor
(A) In general
If, during any calendar year, any person makes a payment of third-party sick pay to an employee, such person shall, on or before January 15 of the succeeding year, furnish a written statement to the employer in respect of whom such payment was made showing—
(i) the name and, if there is withholding under section 3402(o), the social security number of such employee,
(ii) the total amount of the third-party sick pay paid to such employee during the calendar year, and
(iii) the total amount (if any) deducted and withheld from such sick pay under section 3402.
For purposes of the preceding sentence, the term "third-party sick pay" means any sick pay (as defined in section 3402(o)(2)(C)) which does not constitute wages for purposes of
(B) Special rules
(i) Statements are in lieu of other reporting requirements
The reporting requirements of subparagraph (A) with respect to any payments shall, with respect to such payments, be in lieu of the requirements of subsection (a) and of section 6041.
(ii) Penalties made applicable
For purposes of sections 6674 and 7204, the statements required to be furnished by subparagraph (A) shall be treated as statements required under this section to be furnished to employees.
(2) Information required to be furnished by employer
Every employer who receives a statement under paragraph (1)(A) with respect to sick pay paid to any employee during any calendar year shall, on or before January 31 of the succeeding year, furnish a written statement to such employee showing—
(A) the information shown on the statement furnished under paragraph (1)(A), and
(B) if any portion of the sick pay is excludable from gross income under section 104(a)(3), the portion which is not so excludable and the portion which is so excludable.
To the extent practicable, the information required under the preceding sentence shall be furnished on or with the statement (if any) required under subsection (a).
(g) Applicable employer-sponsored coverage
For purposes of subsection (a)(14)—
(1) In general
The term "applicable employer-sponsored coverage" means, with respect to any employee, coverage under any group health plan made available to the employee by an employer which is excludable from the employee's gross income under section 106, or would be so excludable if it were employer-provided coverage (within the meaning of such section 106).
(2) Exceptions
The term "applicable employer-sponsored coverage" shall not include—
(A) any coverage (whether through insurance or otherwise) described in section 9832(c)(1) (other than subparagraph (G) thereof) or for long-term care,
(B) any coverage under a separate policy, certificate, or contract of insurance which provides benefits substantially all of which are for treatment of the mouth (including any organ or structure within the mouth) or for treatment of the eye, or
(C) any coverage described in section 9832(c)(3) the payment for which is not excludable from gross income and for which a deduction under section 162(l) is not allowable.
(3) Coverage includes employee paid portion
Coverage shall be treated as applicable employer-sponsored coverage without regard to whether the employer or employee pays for the coverage.
(4) Governmental plans included
Applicable employer-sponsored coverage shall include coverage under any group health plan established and maintained primarily for its civilian employees by the Government of the United States, by the government of any State or political subdivision thereof, or by any agency or instrumentality of any such government.
(Aug. 16, 1954, ch. 736,
Editorial Notes
References in Text
The Peace Corps Act, referred to in subsec. (a), is
The Social Security Act, referred to in subsecs. (c) and (e)(2)(C), is act Aug. 14, 1935, ch. 531,
Amendments
2019—Subsec. (a)(14).
Subsec. (g).
2017—Subsec. (a)(16), (17).
2016—Subsec. (a)(15).
2015—Subsec. (a)(2).
2010—Subsec. (a)(7).
Subsec. (a)(14).
2004—Subsec. (a).
Subsec. (a)(13).
2003—Subsec. (a)(12).
2001—Subsec. (a)(8).
2000—Subsec. (a)(11).
1996—Subsec. (a)(11).
1994—Subsec. (a)(10).
1988—Subsec. (a)(7).
Subsec. (a)(9).
1986—Subsec. (a)(8).
1983—Subsec. (f)(1)(A).
1982—Subsec. (a).
Subsec. (f)(1)(A).
1980—Subsec. (f).
1978—Subsec. (a)(7).
1977—Subsec. (a).
1976—Subsec. (a).
Subsecs. (c), (d).
1974—Subsec. (a).
1972—Subsec. (a).
Subsec. (c).
Subsec. (e).
1969—Subsec. (a).
1968—Subsec. (a).
Subsec. (c).
1965—Subsec. (a).
Subsec. (c).
1961—Subsec. (a).
1956—Subsec. (a). Act Aug. 1, 1956, §412(a), inserted provisions prescribing contents of statement in the case of compensation paid for service as a member of the uniformed services.
Subsec. (b). Act Aug. 1, 1956, §412(b), required the furnishing of a statement if during the calendar year any amount was required to be withheld as tax under
Statutory Notes and Related Subsidiaries
Effective Date of 2019 Amendment
Effective Date of 2017 Amendment
Amendment by
Effective Date of 2016 Amendment
Amendment by
Effective Date of 2015 Amendment
Effective Date of 2010 Amendment
Amendment by
Effective Date of 2004 Amendment
Amendment by
Effective Date of 2003 Amendment
Amendment by
Effective Date of 2001 Amendment
Amendment by
Effective Date of 1996 Amendment
Amendment by
Effective Date of 1994 Amendment
Effective Date of 1988 Amendment
Amendment by section 1011B(c)(2)(B) of
Amendment by section 1018(u)(33) of
Effective Date of 1986 Amendment
Amendment by
Effective Date of 1982 Amendment
Effective Date of 1980 Amendment
Amendment by
Effective Date of 1978 Amendment
Effective Date of 1974 Amendment
Amendment by
Effective Date of 1972 Amendment
Effective Date of 1969 Amendment
Amendment by
Effective Date of 1968 Amendment
Effective Date of 1965 Amendment
Amendment by section 313(e)(1) of
Effective Date of 1961 Amendment
Amendment by
Effective Date of 1956 Amendment
Amendment by act Aug. 1, 1956, effective Jan. 1, 1957, see section 603(a) of act Aug. 1, 1956, ch. 837, title VI,
Repeals; Amendments and Application of Amendments Unaffected
Section 202(a)(4) of
Plan Amendments Not Required Until January 1, 1989
For provisions directing that if any amendments made by subtitle A or subtitle C of title XI [§§1101–1147 and 1171–1177] or title XVIII [§§1800–1899A] of
§6052. Returns regarding payment of wages in the form of group-term life insurance
(a) Requirement of reporting
Every employer who during any calendar year provides group-term life insurance on the life of an employee during part or all of such calendar year under a policy (or policies) carried directly or indirectly by such employer shall make a return according to the forms or regulations prescribed by the Secretary, setting forth the cost of such insurance and the name and address of the employee on whose life such insurance is provided, but only to the extent that the cost of such insurance is includible in the employee's gross income under section 79(a). For purposes of this section, the extent to which the cost of group-term life insurance is includible in the employee's gross income under section 79(a) shall be determined as if the employer were the only employer paying such employee remuneration in the form of such insurance.
(b) Statements to be furnished to employees with respect to whom information is required
Every employer required to make a return under subsection (a) shall furnish to each employee whose name is required to be set forth in such return a written statement showing the cost of the group-term life insurance shown on such return. The written statement required under the preceding sentence shall be furnished to the employee on or before January 31 of the year following the calendar year for which the return under subsection (a) was required to be made.
(Added
Editorial Notes
Amendments
1986—Subsec. (b).
1976—
Statutory Notes and Related Subsidiaries
Effective Date of 1986 Amendment
Amendment by
Effective Date
Section applicable to group-term life insurance provided after Dec. 31, 1963, in taxable years ending after such date, see section 204(d) of
§6053. Reporting of tips
(a) Reports by employees
Every employee who, in the course of his employment by an employer, receives in any calendar month tips which are wages (as defined in section 3121(a) or section 3401(a)) or which are compensation (as defined in section 3231(e)) shall report all such tips in one or more written statements furnished to his employer on or before the 10th day following such month. Such statements shall be furnished by the employee under such regulations, at such other times before such 10th day, and in such form and manner, as may be prescribed by the Secretary.
(b) Statements furnished by employers
If the tax imposed by section 3101 or section 3201 (as the case may be) with respect to tips reported by an employee pursuant to subsection (a) exceeds the tax which can be collected by the employer pursuant to section 3102 or section 3202 (as the case may be), the employer shall furnish to the employee a written statement showing the amount of such excess. The statement required to be furnished pursuant to this subsection shall be furnished at such time, shall contain such other information, and shall be in such form as the Secretary may by regulations prescribe. When required by such regulations, a duplicate of any such statement shall be filed with the Secretary.
(c) Reporting requirements relating to certain large food or beverage establishments
(1) Report to Secretary
In the case of a large food or beverage establishment, each employer shall report to the Secretary, at such time and manner as the Secretary may prescribe by regulation, the following information with respect to each calendar year:
(A) The gross receipts of such establishment from the provision of food and beverages (other than nonallocable receipts).
(B) The aggregate amount of charge receipts (other than nonallocable receipts).
(C) The aggregate amount of charged tips shown on such charge receipts.
(D) The sum of—
(i) the aggregate amount reported by employees to the employer under subsection (a), plus
(ii) the amount the employer is required to report under section 6051 with respect to service charges of less than 10 percent.
(E) With respect to each employee, the amount allocated to such employee under paragraph (3).
(2) Furnishing of statement to employees
Each employer described in paragraph (1) shall furnish, in such manner as the Secretary may prescribe by regulations, to each employee of the large food or beverage establishment a written statement for each calendar year showing the following information:
(A) The name and address of such employer.
(B) The name of the employee.
(C) The amount allocated to the employee under paragraph (3) for all payroll periods ending within the calendar year.
Any statement under this paragraph shall be furnished to the employee during January of the calendar year following the calendar year for which such statement is made.
(3) Employee allocation of 8 percent of gross receipts
(A) In general
For purposes of paragraphs (1)(E) and (2)(C), the employer of a large food or beverage establishment shall allocate (as tips for purposes of the requirements of this subsection) among employees performing services during any payroll period who customarily receive tip income an amount equal to the excess of—
(i) 8 percent of the gross receipts (other than nonallocable receipts) of such establishment for the payroll period, over
(ii) the aggregate amount reported by such employees to the employer under subsection (a) for such period.
(B) Method of allocation
The employer shall allocate the amount under subparagraph (A)—
(i) on the basis of a good faith agreement by the employer and the employees, or
(ii) in the absence of an agreement under clause (i), in the manner determined under regulations prescribed by the Secretary.
(C) The Secretary may lower the percentage required to be allocated
Upon the petition of the employer or the majority of employees of such employer, the Secretary may reduce (but not below 2 percent) the percentage of gross receipts required to be allocated under subparagraph (A) where he determines that the percentage of gross receipts constituting tips is less than 8 percent.
(4) Large food or beverage establishment
For purposes of this subsection, the term "large food or beverage establishment" means any trade or business (or portion thereof)—
(A) which provides food or beverages,
(B) with respect to which the tipping of employees serving food or beverages by customers is customary, and
(C) which normally employed more than 10 employees on a typical business day during the preceding calendar year.
For purposes of subparagraph (C), rules similar to the rules of subsections (a) and (b) of section 52 shall apply under regulations prescribed by the Secretary, and an individual who owns 50 percent or more in value of the stock of the corporation operating the establishment shall not be treated as an employee.
(5) Employer not to be liable for wrong allocations
The employer shall not be liable to any person if any amount is improperly allocated under paragraph (3)(B) if such allocation is done in accordance with the regulations prescribed under paragraph (3)(B).
(6) Nonallocable receipts defined
For purposes of this subsection, the term "nonallocable receipts" means receipts which are allocable to—
(A) carryout sales, or
(B) services with respect to which a service charge of 10 percent or more is added.
(7) Application to new businesses
The Secretary shall prescribe regulations for the application of this subsection to new businesses.
(8) Certified professional employer organizations
For purposes of any report required by this subsection, in the case of a certified professional employer organization that is treated under section 3511 as the employer of a work site employee, the customer with respect to whom a work site employee performs services shall be the employer for purposes of reporting under this section and the certified professional employer organization shall furnish to the customer and the Secretary any information the Secretary prescribes as necessary to complete such reporting no later than such time as the Secretary shall prescribe.
(Added
Editorial Notes
Amendments
2014—Subsec. (c)(8).
1984—Subsec. (c)(3)(C).
Subsec. (c)(4).
1982—Subsec. (c).
1976—
1965—Subsec. (a).
Subsec. (b).
Statutory Notes and Related Subsidiaries
Effective Date of 2014 Amendment
Amendment by
Effective Date of 1984 Amendment
Effective Date of 1982 Amendment
"(1)
"(2)
"(A) amounts described in subparagraphs (A), (B), (C), and (D) of section 6053(c)(1) of such Code, and
"(B) the name, and identification number, wages paid to, and tips reported by, each tipped employee."
Effective Date of 1965 Amendment
Amendment by
Effective Date
Regulations
Threat of Audit Prohibited To Coerce Tip Reporting Alternative Commitment Agreements
Modification of Tips Allocation Method
Study of Tip Compliance
Subpart D—Information Regarding Health Insurance Coverage
Editorial Notes
Prior Provisions
A prior subpart D, consisting of section 6056, related to information concerning private foundations, prior to repeal by
Amendments
2010—
§6055. Reporting of health insurance coverage
(a) In general
Every person who provides minimum essential coverage to an individual during a calendar year shall, at such time as the Secretary may prescribe, make a return described in subsection (b).
(b) Form and manner of return
(1) In general
A return is described in this subsection if such return—
(A) is in such form as the Secretary may prescribe, and
(B) contains—
(i) the name, address and TIN of the primary insured and the name and TIN of each other individual obtaining coverage under the policy,
(ii) the dates during which such individual was covered under minimum essential coverage during the calendar year,
(iii) in the case of minimum essential coverage which consists of health insurance coverage, information concerning—
(I) whether or not the coverage is a qualified health plan offered through an Exchange established under section 1311 of the Patient Protection and Affordable Care Act, and
(II) in the case of a qualified health plan, the amount (if any) of any advance payment under section 1412 of the Patient Protection and Affordable Care Act of any cost-sharing reduction under section 1402 of such Act or of any premium tax credit under section 36B with respect to such coverage, and
(iv) such other information as the Secretary may require.
For purposes of subparagraph (B)(i), in the case of any individual whose name is required to be set forth in a return under subsection (a), if the person required to make a return under such subsection is unable to collect information on the TINs of such individuals, the Secretary may allow the individual's full name and date of birth to be substituted for the name and TIN.
(2) Information relating to employer-provided coverage
If minimum essential coverage provided to an individual under subsection (a) consists of health insurance coverage of a health insurance issuer provided through a group health plan of an employer, a return described in this subsection shall include—
(A) the name, address, and employer identification number of the employer maintaining the plan,
(B) the portion of the premium (if any) required to be paid by the employer, and
(C) if the health insurance coverage is a qualified health plan in the small group market offered through an Exchange, such other information as the Secretary may require for administration of the credit under section 45R (relating to credit for employee health insurance expenses of small employers).
(c) Statements to be furnished to individuals with respect to whom information is reported
(1) In general
Every person required to make a return under subsection (a) shall furnish to each individual whose name is required to be set forth in such return a written statement showing—
(A) the name and address of the person required to make such return and the phone number of the information contact for such person, and
(B) the information required to be shown on the return with respect to such individual.
(2) Time for furnishing statements
The written statement required under paragraph (1) shall be furnished on or before January 31 of the year following the calendar year for which the return under subsection (a) was required to be made.
(3) 1 Alternative manner of furnishing statements
For purposes of this subsection, any person required to make a return under subsection (a) shall be treated as timely furnishing the written statement required under paragraph (1) if—
(A) such person provides clear, conspicuous, and accessible notice (at such time and in such manner as the Secretary may provide) that any individual to whom a statement would otherwise be required to be furnished under paragraph (1) may request a copy of such statement, and
(B) such person, on request of any such individual, furnishes a copy of such statement to such individual not later than the later of—
(i) January 31 of the year following the calendar year for which the return under subsection (a) was required to be made, or
(ii) 30 days after the date of such request.
(3) 1 Electronic delivery
An individual shall be deemed to have consented to receive the statement under this subsection in electronic form if such individual has affirmatively consented at any prior time, to the person required to make such statement, to receive such statement in electronic form. The preceding sentence shall not apply if the individual revokes such consent in writing.
(d) Coverage provided by governmental units
In the case of coverage provided by any governmental unit or any agency or instrumentality thereof, the officer or employee who enters into the agreement to provide such coverage (or the person appropriately designated for purposes of this section) shall make the returns and statements required by this section.
(e) Minimum essential coverage
For purposes of this section, the term "minimum essential coverage" has the meaning given such term by section 5000A(f).
(Added
Editorial Notes
References in Text
Sections 1311, 1402, and 1412 of the Patient Protection and Affordable Care Act, referred to in subsec. (b)(1)(B)(iii), are classified to sections 18031, 18071, and 18082, respectively, of Title 42, The Public Health and Welfare.
Amendments
2024—Subsec. (b)(1).
Subsec. (c)(3).
Statutory Notes and Related Subsidiaries
Effective Date of 2024 Amendment
Effective Date
1 So in original. Two pars. (3) have been enacted.
§6056. Certain employers required to report on health insurance coverage
(a) In general
Every applicable large employer required to meet the requirements of section 4980H with respect to its full-time employees during a calendar year shall, at such time as the Secretary may prescribe, make a return described in subsection (b).
(b) Form and manner of return
A return is described in this subsection if such return—
(1) is in such form as the Secretary may prescribe, and
(2) contains—
(A) the name, date, and employer identification number of the employer,
(B) a certification as to whether the employer offers to its full-time employees (and their dependents) the opportunity to enroll in minimum essential coverage under an eligible employer-sponsored plan (as defined in section 5000A(f)(2)),
(C) if the employer certifies that the employer did offer to its full-time employees (and their dependents) the opportunity to so enroll—
(i) the length of any waiting period (as defined in section 2701(b)(4) of the Public Health Service Act) with respect to such coverage,
(ii) the months during the calendar year for which coverage under the plan was available,
(iii) the monthly premium for the lowest cost option in each of the enrollment categories under the plan, and
(iv) the employer share of the total allowed costs of benefits provided under the plan,
(D) the number of full-time employees for each month during the calendar year,
(E) the name, address, and TIN of each full-time employee during the calendar year and the months (if any) during which such employee (and any dependents) were covered under any such health benefits plans, and
(F) such other information as the Secretary may require.
The Secretary shall have the authority to review the accuracy of the information provided under this subsection, including the applicable large employer's share under paragraph (2)(C)(iv).
(c) Statements to be furnished to individuals with respect to whom information is reported
(1) In general
Every person required to make a return under subsection (a) shall furnish to each full-time employee whose name is required to be set forth in such return under subsection (b)(2)(E) a written statement showing—
(A) the name and address of the person required to make such return and the phone number of the information contact for such person, and
(B) the information required to be shown on the return with respect to such individual.
(2) Time for furnishing statements
The written statement required under paragraph (1) shall be furnished on or before January 31 of the year following the calendar year for which the return under subsection (a) was required to be made.
(3) 1 Alternative manner of furnishing statements
For purposes of this subsection, any person required to make a return under subsection (a) shall be treated as timely furnishing the written statement required under paragraph (1) if—
(A) such person provides clear, conspicuous, and accessible notice (at such time and in such manner as the Secretary may provide) that any individual to whom a statement would otherwise be required to be furnished under paragraph (1) may request a copy of such statement, and
(B) such person, on request of any such individual, furnishes a copy of such statement to such individual not later than the later of—
(i) January 31 of the year following the calendar year for which the return under subsection (a) was required to be made, or
(ii) 30 days after the date of such request.
(3) 1 Electronic delivery
An individual shall be deemed to have consented to receive the statement under this subsection in electronic form if such individual has affirmatively consented at any prior time, to the person who is the employer of the individual during the calendar year to which the statement relates, to receive such statement in electronic form. The preceding sentence shall not apply if the individual revokes such consent in writing.
(d) Coordination with other requirements
To the maximum extent feasible, the Secretary may provide that—
(1) any return or statement required to be provided under this section may be provided as part of any return or statement required under section 6051 or 6055, and
(2) in the case of an applicable large employer offering health insurance coverage of a health insurance issuer, the employer may enter into an agreement with the issuer to include information required under this section with the return and statement required to be provided by the issuer under section 6055.
(e) Coverage provided by governmental units
In the case of any applicable large employer which is a governmental unit or any agency or instrumentality thereof, the person appropriately designated for purposes of this section shall make the returns and statements required by this section.
(f) Definitions
For purposes of this section, any term used in this section which is also used in section 4980H shall have the meaning given such term by section 4980H.
(Added and amended
Editorial Notes
References in Text
Section 2701 of the Public Health Service Act, referred to in subsec. (b)(2)(C)(i), was classified to
Prior Provisions
A prior section 6056, added
Amendments
2024—Subsec. (c)(3).
2011—Subsec. (a).
Subsec. (b)(2)(C).
Subsecs. (d)(2), (e).
Subsec. (f).
2010—
Subsec. (a).
Subsec. (b).
Subsec. (b)(2)(C)(i).
Subsec. (b)(2)(C)(iii).
Subsec. (b)(2)(C)(iv).
Subsec. (b)(2)(C)(v).
Subsecs. (d)(2), (e).
Subsec. (f).
Statutory Notes and Related Subsidiaries
Effective Date of 2024 Amendment
Amendment by
Amendment by
Effective Date of 2011 Amendment
Amendment by
Effective Date of 2010 Amendment
Effective Date
1 So in original. Two pars. (3) have been enacted.
Subpart E—Registration of and Information Concerning Pension, Etc., Plans
Editorial Notes
Amendments
1974—
1 So in original. Does not conform to section catchline.
§6057. Annual registration, etc.
(a) Annual registration
(1) General rule
Within such period after the end of a plan year as the Secretary may by regulations prescribe, the plan administrator (within the meaning of section 414(g)) of each plan to which the vesting standards of section 203 of part 2 of subtitle B of title I of the Employee Retirement Income Security Act of 1974 applies for such plan year shall file a registration statement with the Secretary.
(2) Contents
The registration statement required by paragraph (1) shall set forth—
(A) the name of the plan,
(B) the name and address of the plan administrator,
(C) the name and taxpayer identifying number of each participant in the plan—
(i) who, during such plan year, separated from the service covered by the plan,
(ii) who is entitled to a deferred vested benefit under the plan as of the end of such plan year, and
(iii) with respect to whom retirement benefits were not paid under the plan during such plan year,
(D) the nature, amount, and form of the deferred vested benefit to which such participant is entitled, and
(E) such other information as the Secretary may require.
At the time he files the registration statement under this subsection, the plan administrator shall furnish evidence satisfactory to the Secretary that he has complied with the requirement contained in subsection (e).
(b) Notification of change in status
Any plan administrator required to register under subsection (a) shall also notify the Secretary, at such time as may be prescribed by regulations, of—
(1) any change in the name of the plan,
(2) any change in the name or address of the plan administrator,
(3) the termination of the plan, or
(4) the merger or consolidation of the plan with any other plan or its division into two or more plans.
(c) Voluntary reports
To the extent provided in regulations prescribed by the Secretary, the Secretary may receive from—
(1) any plan to which subsection (a) applies, and
(2) any other plan (including any governmental plan or church plan (within the meaning of section 414)),
such information (including information relating to plan years beginning before January 1, 1974) as the plan administrator may wish to file with respect to the deferred vested benefit rights of any participant separated from the service covered by the plan during any plan year.
(d) Transmission of information to Commissioner of Social Security
The Secretary shall transmit copies of any statements, notifications, reports, or other information obtained by him under this section to the Commissioner of Social Security.
(e) Individual statement to participant
Each plan administrator required to file a registration statement under subsection (a) shall, before the expiration of the time prescribed for the filing of such registration statement, also furnish to each participant described in subsection (a)(2)(C) an individual statement setting forth the information with respect to such participant required to be contained in such registration statement. Such statement shall also include a notice to the participant of any benefits which are forfeitable if the participant dies before a certain date.
(f) Regulations
(1) In general
The Secretary, after consultation with the Commissioner of Social Security, may prescribe such regulations as may be necessary to carry out the provisions of this section.
(2) Plans to which more than one employer contributes
This section shall apply to any plan to which more than one employer is required to contribute only to the extent provided in regulations prescribed under this subsection.
(g) 403(b) multiple employer plans treated as one plan
In the case of annuity contracts to which this section applies and to which section 403(b) applies by reason of the plan under which such contracts are purchased meeting the requirements of paragraph (15) thereof, such plan shall be treated as a single plan for purposes of this section.
(h) Cross references
For provisions relating to penalties for failure to register or furnish statements required by this section, see section 6652(d) and section 6690.
For coordination between Department of the Treasury and the Department of Labor with regard to administration of this section, see section 3004 of the Employee Retirement Income Security Act of 1974.
(Added
Editorial Notes
References in Text
Section 203 of part 2 of subtitle B of title I of the Employee Retirement Income Security Act of 1974, referred to in subsec. (a)(1), is classified to
Amendments
2022—Subsecs. (g), (h).
1994—Subsecs. (d), (f)(1).
1986—Subsec. (g).
1984—Subsec. (d).
Subsec. (e).
Subsec. (f).
1976—
Statutory Notes and Related Subsidiaries
Effective Date of 2022 Amendment
Amendment by
Effective Date of 1994 Amendment
Amendment by
Effective Date of 1986 Amendment
Amendment by
Effective Date of 1984 Amendments
Amendment by
Amendment by
Effective Date
"(1) the requirements of section 6059 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] shall apply only with respect to plan years to which part I of this title applies. [For description of plan years to which part I applies, see section 1017 of
"(2) the requirements of section 6057 of such Code shall apply only with respect to plan years beginning after December 31, 1975,
"(3) the requirements of section 6058(a) of such Code shall apply only with respect to plan years beginning after the date of the enactment of this Act [Sept. 2, 1974], and
"(4) the amendments made by section 1032 [enacting
§6058. Information required in connection with certain plans of deferred compensation
(a) In general
Every employer who maintains a pension, annuity, stock bonus, profit-sharing, or other funded plan of deferred compensation described in part I of subchapter D of
(b) Actuarial statement in case of mergers, etc.
Not less than 30 days before a merger, consolidation, or transfer of assets or liabilities of a plan described in subsection (a) to another plan, the plan administrator (within the meaning of section 414(g)) shall file an actuarial statement of valuation evidencing compliance with the requirements of section 401(a)(12).
(c) Employer
For purposes of this section, the term "employer" includes a person described in section 401(c)(4) and an individual who establishes an individual retirement plan.
(d) Coordination with income tax returns, etc.
An individual who establishes an individual retirement plan shall not be required to file a return under this section with respect to such plan for any taxable year for which there is—
(1) no special IRP tax, and
(2) no plan activity other than—
(A) the making of contributions (other than rollover contributions), and
(B) the making of distributions.
(e) Special IRP tax defined
For purposes of this section, the term "special IRP tax" means a tax imposed by—
(1) section 4973, or
(2) section 4974.
(f) 403(b) multiple employer plans treated as one plan
In the case of annuity contracts to which this section applies and to which section 403(b) applies by reason of the plan under which such contracts are purchased meeting the requirements of paragraph (15) thereof, such plan shall be treated as a single plan for purposes of this section.
(g) Cross references
For provisions relating to penalties for failure to file a return required by this section, see section 6652(e).
For coordination between the Department of the Treasury and the Department of Labor with respect to the information required under this section, see section 3004 of title III of the Employee Retirement Income Security Act of 1974.
(Added
Editorial Notes
References in Text
Section 3004 of title III of the Employee Retirement Income Security Act of 1974, referred to in subsec. (g), is classified to
Amendments
2022—Subsecs. (f), (g).
2018—Subsec. (e).
1986—Subsec. (f).
1984—Subsec. (e).
1978—Subsec. (c).
Subsecs. (d) to (f).
1976—Subsec. (a).
Statutory Notes and Related Subsidiaries
Effective Date of 2022 Amendment
Amendment by
Effective Date of 1986 Amendment
Amendment by
Effective Date of 1984 Amendment
Amendment by
Effective Date of 1978 Amendment
Effective Date
Section effective Sept. 2, 1974, except that the requirements of subsec. (a) shall apply only with respect to plan years beginning after Sept. 2, 1974, see section 1034 of
Updated Forms
"(A) separate reporting of the aggregate amount of contributions received by the plan during the year under section 6433 of the Internal Revenue Code of 1986 (as added by this section), and
"(B) similar reporting with respect to individual retirement accounts (as defined in section 408 of such Code) and individual retirement annuities (as defined in section 408(b) of such Code)."
[
Combined Annual Report for Group of Plans
"(a)
"(1) all members of a group of plans described in subsection (c) may file a single aggregated annual return or report satisfying the requirements of both such sections; and
"(2) any opinions required by section 103(a)(3) of the Employee Retirement Income Security Act of 1974 (
"(b)
"(c)
"(1) are individual account plans or defined contribution plans (as defined in section 3(34) of the Employee Retirement Income Security Act of 1974 (
"(2) have—
"(A) the same trustee (as described in section 403(a) of such Act (
"(B) the same one or more named fiduciaries (as described in section 402(a) of such Act (
"(C) the same administrator (as defined in section 3(16)(A) of such Act (
"(D) plan years beginning on the same date; and
"(3) provide the same investments or investment options to participants and beneficiaries.
A plan not subject to title I of the Employee Retirement Income Security Act of 1974 [
"(e)
[
Reporting Simplification
"(a)
"(1)
"(2)
"(A) on the first day of the plan year—
"(i) the plan covered only one individual (or the individual and the individual's spouse) and the individual owned 100 percent of the plan sponsor (whether or not incorporated), or
"(ii) the plan covered only one or more partners (or partners and their spouses) in the plan sponsor;
"(B) the plan meets the minimum coverage requirements of section 410(b) of the Internal Revenue Code of 1986 without being combined with any other plan of the business that covers the employees of the business;
"(C) the plan does not provide benefits to anyone except the individual (and the individual's spouse) or the partners (and their spouses);
"(D) the plan does not cover a business that is a member of an affiliated service group, a controlled group of corporations, or a group of businesses under common control; and
"(E) the plan does not cover a business that uses the services of leased employees (within the meaning of section 414(n) of such Code).
For purposes of this paragraph, the term 'partner' includes a 2-percent shareholder (as defined in section 1372(b) of such Code) of an S corporation.
"(3)
"(4)
"(b)
§6059. Periodic report of actuary
(a) General rule
The actuarial report described in subsection (b) shall be filed by the plan administrator (as defined in section 414(g) of each defined benefit plan to which section 412 applies, for the first plan year for which section 412 applies to the plan and for each third plan year thereafter (or more frequently if the Secretary determines that more frequent reports are necessary).
(b) Actuarial report
The actuarial report of a plan required by subsection (a) shall be prepared and signed by an enrolled actuary (within the meaning of section 7701(a)(35)) and shall contain—
(1) a description of the funding method and actuarial assumptions used to determine costs under the plan,
(2) a certification of the contribution necessary to reduce the minimum required contribution determined under section 430, the accumulated funding deficiency under section 433, or the accumulated funding deficiency determined under section 431, to zero,
(3) a statement—
(A) that to the best of his knowledge the report is complete and accurate, and
(B) that the requirements for reasonable actuarial assumptions under section 430(h)(1), 431(c)(3), or 433(c)(3), whichever are applicable, have been complied with,
(4) such other information as may be necessary to fully and fairly disclose the actuarial position of the plan, and
(5) such other information regarding the plan as the Secretary may by regulations require.
(c) Time and manner of filing
The actuarial report and statement required by this section shall be filed at the time and in the manner provided by regulations prescribed by the Secretary.
(d) Cross reference
For coordination between the Department of the Treasury and the Department of Labor with respect to the report required to be filed under this section, see section 3004 of title III of the Employee Retirement Income Security Act of 1974.
(Added
Editorial Notes
References in Text
Section 3004 of title III of the Employee Retirement Income Security Act of 1974, referred to in subsec. (d), is classified to
Amendments
2018—Subsec. (b)(3)(B).
2014—Subsec. (b)(2).
Subsec. (b)(3)(B).
2006—Subsec. (b)(2).
Subsec. (b)(3)(B).
1976—
Statutory Notes and Related Subsidiaries
Effective Date of 2014 Amendment
Amendment by
Effective Date of 2006 Amendment
Amendment by
Effective Date
Requirements of section applicable only with respect to plan years to which part I of subtitle A of title II of
Applicability of Amendments by Subtitles A and B of Title I of Pub. L. 109–280
For special rules on applicability of amendments by subtitles A (§§101–108) and B (§§111–116) of title I of
Consolidation of Actuarial Reports
Subpart F—Information Concerning Tax Return Preparers
Editorial Notes
Amendments
2007—
1976—
§6060. Information returns of tax return preparers
(a) General rule
Any person who employs a tax return preparer to prepare any return or claim for refund other than for such person at any time during a return period shall make a return setting forth the name, taxpayer identification number, and place of work of each tax return preparer employed by him at any time during such period. For purposes of this section, any individual who in acting as a tax return preparer is not the employee of another tax return preparer shall be treated as his own employer. The return required by this section shall be filed, in such manner as the Secretary may by regulations prescribe, on or before the first July 31 following the end of such return period.
(b) Alternative reporting
In lieu of the return required by subsection (a), the Secretary may approve an alternative reporting method if he determines that the necessary information is available to him from other sources.
(c) Return period defined
For purposes of subsection (a), the term "return period" means the 12-month period beginning on July 1 of each year.
(Added
Editorial Notes
Amendments
2014—Subsec. (c).
2007—
Subsec. (a).
Statutory Notes and Related Subsidiaries
Effective Date of 2014 Amendment
Amendment by
Effective Date of 2007 Amendment
Effective Date
Section applicable to documents prepared after Dec. 31, 1976, see section 1203(j) of
PART IV—SIGNING AND VERIFYING OF RETURNS AND OTHER DOCUMENTS
§6061. Signing of returns and other documents
(a) General rule
Except as otherwise provided by subsection (b) and sections 6062 and 6063, any return, statement, or other document required to be made under any provision of the internal revenue laws or regulations shall be signed in accordance with forms or regulations prescribed by the Secretary.
(b) Electronic signatures
(1) In general
The Secretary shall develop procedures for the acceptance of signatures in digital or other electronic form. Until such time as such procedures are in place, the Secretary may—
(A) waive the requirement of a signature for; or
(B) provide for alternative methods of signing or subscribing,
a particular type or class of return, declaration, statement, or other document required or permitted to be made or written under internal revenue laws and regulations.
(2) Treatment of alternative methods
Notwithstanding any other provision of law, any return, declaration, statement, or other document filed and verified, signed, or subscribed under any method adopted under paragraph (1)(B) shall be treated for all purposes (both civil and criminal, including penalties for perjury) in the same manner as though signed or subscribed.
(3) Published guidance
(A) In general
The Secretary shall publish guidance as appropriate to define and implement any waiver of the signature requirements or any method adopted under paragraph (1).
(B) Electronic signatures for disclosure authorizations to, and other authorizations of, practitioners
Not later than 6 months after the date of the enactment of this subparagraph, the Secretary shall publish guidance to establish uniform standards and procedures for the acceptance of taxpayers' signatures appearing in electronic form with respect to any request for disclosure of a taxpayer's return or return information under section 6103(c) to a practitioner or any power of attorney granted by a taxpayer to a practitioner.
(C) Practitioner
For purposes of subparagraph (B), the term "practitioner" means any individual in good standing who is regulated under
(Aug. 16, 1954, ch. 736,
Editorial Notes
References in Text
The date of the enactment of this subparagraph, referred to in subsec. (b)(3)(B), is the date of enactment of
Amendments
2019—Subsec. (b)(3).
1998—
1976—
Statutory Notes and Related Subsidiaries
Effective Date of 1998 Amendment
§6062. Signing of corporation returns
The return of a corporation with respect to income shall be signed by the president, vice-president, treasurer, assistant treasurer, chief accounting officer or any other officer duly authorized so to act. In the case of a return made for a corporation by a fiduciary pursuant to the provisions of section 6012(b)(3), such fiduciary shall sign the return. The fact that an individual's name is signed on the return shall be prima facie evidence that such individual is authorized to sign the return on behalf of the corporation.
(Aug. 16, 1954, ch. 736,
§6063. Signing of partnership returns
The return of a partnership made under section 6031 shall be signed by any one of the partners. The fact that a partner's name is signed on the return shall be prima facie evidence that such partner is authorized to sign the return on behalf of the partnership.
(Aug. 16, 1954, ch. 736,
§6064. Signature presumed authentic
The fact that an individual's name is signed to a return, statement, or other document shall be prima facie evidence for all purposes that the return, statement, or other document was actually signed by him.
(Aug. 16, 1954, ch. 736,
§6065. Verification of returns
Except as otherwise provided by the Secretary, any return, declaration, statement, or other document required to be made under any provision of the internal revenue laws or regulations shall contain or be verified by a written declaration that it is made under the penalties of perjury.
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
1976—
Statutory Notes and Related Subsidiaries
Effective Date of 1976 Amendment
Amendment by
PART V—TIME FOR FILING RETURNS AND OTHER DOCUMENTS
Editorial Notes
Amendments
1988—
1984—
1980—
1976—
1968—
1964—
§6071. Time for filing returns and other documents
(a) General rule
When not otherwise provided for by this title, the Secretary shall by regulations prescribe the time for filing any return, statement, or other document required by this title or by regulations.
(b) Electronically filed information returns
Returns made under subpart B of part III of this subchapter (other than returns and statements required to be filed with respect to nonemployee compensation) which are filed electronically shall be filed on or before March 31 of the year following the calendar year to which such returns relate.
(c) Returns and statements relating to employee wage information and nonemployee compensation
Forms W–2 and W–3 and any returns or statements required by the Secretary to report nonemployee compensation shall be filed on or before January 31 of the year following the calendar year to which such returns relate.
(d) Special taxes
For payment of special taxes before engaging in certain trades and businesses, see section 4901 and section 5732.
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
2015—Subsec. (b).
Subsecs. (c), (d).
2005—Subsec. (c).
1998—Subsecs. (b), (c).
1976—Subsec. (a).
1958—Subsec. (b).
Statutory Notes and Related Subsidiaries
Effective Date of 2015 Amendment
"(1)
"(2)
Effective Date of 2005 Amendment
Amendment by
Effective Date of 1998 Amendment
Effective Date of 1958 Amendment
Amendment by
§6072. Time for filing income tax returns
(a) General rule
In the case of returns under section 6012, 6013, or 6017 (relating to income tax under subtitle A), returns made on the basis of the calendar year shall be filed on or before the 15th day of April following the close of the calendar year and returns made on the basis of a fiscal year shall be filed on or before the 15th day of the fourth month following the close of the fiscal year, except as otherwise provided in the following subsections of this section.
(b) Returns of partnerships and S corporations
Returns of partnerships under section 6031 and returns of S corporations under sections 6012 and 6037 made on the basis of the calendar year shall be filed on or before the 15th day of March following the close of the calendar year, and such returns made on the basis of a fiscal year shall be filed on or before the 15th day of the third month following the close of the fiscal year. Returns required for a taxable year by section 6011(c)(2) (relating to returns of a DISC) shall be filed on or before the fifteenth day of the ninth month following the close of the taxable year.
(c) Returns by certain nonresident alien individuals and foreign corporations
Returns made by nonresident alien individuals (other than those whose wages are subject to withholding under
(d) Returns of cooperative associations
In the case of an income tax return of—
(1) an exempt cooperative association described in section 1381(a)(1), or
(2) an organization described in section 1381(a)(2) which is under an obligation to pay patronage dividends (as defined in section 1388(a)) in an amount equal to at least 50 percent of its net earnings from business done with or for its patrons, or which paid patronage dividends in such an amount out of the net earnings from business done with or for patrons during the most recent taxable year for which it had such net earnings,
a return made on the basis of a calendar year shall be filed on or before the 15th day of September following the close of the calendar year, and a return made on the basis of a fiscal year shall be filed on or before the 15th day of the 9th month following the close of the fiscal year.
(e) Organizations exempt from taxation under section 501(a)
In the case of an income tax return of an organization exempt from taxation under section 501(a) (other than an employees' trust described in section 401(a)), a return shall be filed on or before the 15th day of the 5th month following the close of the taxable year.
(Aug. 16, 1954, ch. 736,
Editorial Notes
References in Text
The FSC Repeal and Extraterritorial Income Exclusion Act of 2000, referred to in subsec. (c), is
Amendments
2015—Subsec. (a).
Subsec. (b).
2014—Subsec. (b).
2007—Subsec. (c).
1984—Subsec. (c).
1978—Subsec. (e).
1976—Subsec. (e).
1971—Subsec. (b).
1962—Subsec. (d).
Statutory Notes and Related Subsidiaries
Effective Date of 2015 Amendment
Amendment by
Effective Date of 1984 Amendment
Amendment by
Effective Date of 1978 Amendment
Effective Date of 1976 Amendment
Amendment by section 1053(d)(3) of
Effective Date of 1971 Amendment
Amendment by
Effective Date of 1962 Amendment
Amendment by
Filing of Income Tax Returns for 1958 by Life Insurance Companies
[§6073. Repealed. Pub. L. 98–369, div. A, title IV, §412(a)(2), July 18, 1984, 98 Stat. 792 ]
Section, acts Aug. 16, 1954, ch. 736,
Statutory Notes and Related Subsidiaries
Effective Date of Repeal
Repeal applicable with respect to taxable years beginning after Dec. 31, 1984, see section 414(a)(1) of
[§6074. Repealed. Pub. L. 90–364, title I, §103(a), June 28, 1968, 82 Stat. 260 ]
Section, acts Aug. 16, 1954, ch. 736,
Statutory Notes and Related Subsidiaries
Effective Date of Repeal
Repeal effective with respect to taxable years beginning after Dec. 31, 1967, except as provided by section 104 of
§6075. Time for filing estate and gift tax returns
(a) Estate tax returns
Returns made under section 6018(a) (relating to estate taxes) shall be filed within 9 months after the date of the decedent's death.
(b) Gift tax returns
(1) General rule
Returns made under section 6019 (relating to gift taxes) shall be filed on or before the 15th day of April following the close of the calendar year.
(2) Extension where taxpayer granted extension for filing income tax return
Any extension of time granted the taxpayer for filing the return of income taxes imposed by subtitle A for any taxable year which is a calendar year shall be deemed to be also an extension of time granted the taxpayer for filing the return under section 6019 for such calendar year.
(3) Coordination with due date for estate tax return
Notwithstanding paragraphs (1) and (2), the time for filing the return made under section 6019 for the calendar year which includes the date of death of the donor shall not be later than the time (including extensions) for filing the return made under section 6018 (relating to estate tax returns) with respect to such donor.
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
2010—Subsecs. (a), (b)(3).
2001—Subsec. (a).
Subsec. (b)(3).
1981—Subsec. (b).
1979—Subsec. (b)(1).
Subsec. (b)(2).
Subsec. (b)(3), (4).
1976—Subsec. (b).
1970—Subsec. (a).
Subsec. (b).
Statutory Notes and Related Subsidiaries
Effective Date of 2010 Amendment
Amendment by
Effective Date of 2001 Amendment
Amendment by
Effective Date of 1981 Amendment
Amendment by
Effective Date of 1979 Amendment
Effective Date of 1976 Amendment
Effective Date of 1970 Amendment
Amendment by
Amendment by
Extension of Time For Performing Certain Acts
"(A) filing any return under section 6018 of the Internal Revenue Code of 1986 (including any election required to be made on such a return) as such section is in effect after the date of the enactment of this Act without regard to any election under subsection (c),
"(B) making any payment of tax under
"(C) making any disclaimer described in section 2518(b) of such Code of an interest in property passing by reason of the death of such decedent,
"shall not be earlier than the date which is 9 months after the date of the enactment of this Act."
[§6076. Repealed. Pub. L. 100–418, title I, §1941(b)(1), Aug. 23, 1988, 102 Stat. 1323 ]
Section, added
Statutory Notes and Related Subsidiaries
Effective Date of Repeal
Repeal applicable to crude oil removed from the premises on or after Aug. 23, 1988, see section 1941(c) of
PART VI—EXTENSION OF TIME FOR FILING RETURNS
§6081. Extension of time for filing returns
(a) General rule
The Secretary may grant a reasonable extension of time for filing any return, declaration, statement, or other document required by this title or by regulations. Except in the case of taxpayers who are abroad, no such extension shall be for more than 6 months.
(b) Automatic extension for corporation income tax returns
An extension of 6 months for the filing of the return of income taxes imposed by subtitle A shall be allowed any corporation if, in such manner and at such time as the Secretary may by regulations prescribe, there is filed on behalf of such corporation the form prescribed by the Secretary, and if such corporation pays, on or before the date prescribed for payment of the tax, the amount properly estimated as its tax; but this extension may be terminated at any time by the Secretary by mailing to the taxpayer notice of such termination at least 10 days prior to the date for termination fixed in such notice. In the case of any return for a taxable year of a C corporation which ends on December 31 and begins before January 1, 2026, the first sentence of this subsection shall be applied by substituting "5 months" for "6 months". In the case of any return for a taxable year of a C corporation which ends on June 30 and begins before January 1, 2026, the first sentence of this subsection shall be applied by substituting "7 months" for "6 months".
(c) Cross references
For time for performing certain acts postponed by reason of war, see section 7508, and by reason of Presidentially declared disaster or terroristic or military action, see section 7508A.
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
2015—Subsec. (b).
2002—Subsec. (c).
1982—Subsec. (b).
1976—
Statutory Notes and Related Subsidiaries
Effective Date of 2015 Amendment
Effective Date of 2002 Amendment
Effective Date of 1982 Amendment
Amendment by
Modification of Due Dates by Regulation
"(1) The maximum extension for the returns of partnerships filing Form 1065 shall be a 6-month period ending on September 15 for calendar year taxpayers.
"(2) The maximum extension for the returns of trusts filing Form 1041 shall be a 5½-month period ending on September 30 for calendar year taxpayers.
"[(3) Repealed.
"(4) The maximum extension for the returns of organizations exempt from income tax filing Form 990 (series) shall be an automatic 6-month period ending on November 15 for calendar year filers.
"(5) The maximum extension for the returns of organizations exempt from income tax that are required to file Form 4720 returns of excise taxes shall be an automatic 6-month period beginning on the due date for filing the return (without regard to any extensions).
"(6) The maximum extension for the returns of trusts required to file Form 5227 shall be an automatic 6-month period beginning on the due date for filing the return (without regard to any extensions).
"(7) The maximum extension for filing Form 6069, Return of Excise Tax on Excess Contributions to Black Lung Benefit Trust Under Section 4953 and Computation of Section 192 Deduction, shall be an automatic 6-month period beginning on the due date for filing the return (without regard to any extensions).
"(8) The maximum extension for a taxpayer required to file Form 8870 shall be an automatic 6-month period beginning on the due date for filing the return (without regard to any extensions).
"(9) The due date of Form 3520–A, Annual Information Return of a Foreign Trust with a United States Owner, shall be the 15th day of the 3d month after the close of the trust's taxable year, and the maximum extension shall be a 6-month period beginning on such day.
"(10) The due date of Form 3520, Annual Return to Report Transactions with Foreign Trusts and Receipt of Certain Foreign Gifts, for calendar year filers shall be April 15 with a maximum extension for a 6-month period ending on October 15.
"(11) The due date of FinCEN Report 114 (relating to Report of Foreign Bank and Financial Accounts) shall be April 15 with a maximum extension for a 6-month period ending on October 15 and with provision for an extension under rules similar to the rules in Treas. Reg. section 1.6081–5. For any taxpayer required to file such Form for the first time, any penalty for failure to timely request for, or file, an extension, may be waived by the Secretary."
[
PART VII—PLACE FOR FILING RETURNS OR OTHER DOCUMENTS
§6091. Place for filing returns or other documents
(a) General rule
When not otherwise provided for by this title, the Secretary shall by regulations prescribe the place for the filing of any return, declaration, statement, or other document, or copies thereof, required by this title or by regulations.
(b) Tax returns
In the case of returns of tax required under authority of part II of this subchapter—
(1) Persons other than corporations
(A) General rule
Except as provided in subparagraph (B), a return (other than a corporation return) shall be made to the Secretary—
(i) in the internal revenue district in which is located the legal residence or principal place of business of the person making the return, or
(ii) at a service center serving the internal revenue district referred to in clause (i),
as the Secretary may by regulations designate.
(B) Exception
Returns of—
(i) persons who have no legal residence or principal place of business in any internal revenue district,
(ii) citizens of the United States whose principal place of abode for the period with respect to which the return is filed is outside the United States,
(iii) persons who claim the benefits of section 911 (relating to citizens or residents of the United States living abroad), section 931 (relating to income from sources within Guam, American Samoa, or the Northern Mariana Islands), or section 933 (relating to income from sources within Puerto Rico),
(iv) nonresident alien persons, and
(v) persons with respect to whom an assessment was made under section 6851(a) or 6852(a) (relating to termination assessments) with respect to the taxable year,
shall be made at such place as the Secretary may by regulations designate.
(2) Corporations
(A) General rule
Except as provided in subparagraph (B), a return of a corporation shall be made to the Secretary—
(i) in the internal revenue district in which is located the principal place of business or principal office or agency of the corporation, or
(ii) at a service center serving the internal revenue district referred to in clause (i), as the Secretary may by regulations designate.
(B) Exception
Returns of—
(i) corporations which have no principal place of business or principal office or agency in any internal revenue district,
(ii) foreign corporations, and
(iii) corporations with respect to which an assessment was made under section 6851(a) (relating to termination assessments) with respect to the taxable year,
shall be made at such place as the Secretary may by regulations designate.
(3) Estate tax returns
(A) General rule
Except as provided in subparagraph (B), returns of estate tax required under section 6018 shall be made to the Secretary—
(i) in the internal revenue district in which was the domicile of the decedent at the time of his death, or
(ii) at a service center serving the internal revenue district referred to in clause (i), as the Secretary may by regulations designate.
(B) Exception
If the domicile of the decedent was not in an internal revenue district, or if he had no domicile, the estate tax return required under section 6018 shall be made at such place as the Secretary may by regulations designate.
(4) Hand-carried returns
Notwithstanding paragraph (1), (2), or (3), a return to which paragraph (1)(A), (2)(A), or (3)(A) would apply, but for this paragraph, which is made to the Secretary by handcarrying shall, under regulations prescribed by the Secretary, be made in the internal revenue district referred to in paragraph (1)(A)(i), (2)(A)(i), or (3)(A)(i), as the case may be.
(5) Exceptional cases
Notwithstanding paragraph (1), (2), (3), or (4) of this subsection, the Secretary may permit a return to be filed in any internal revenue district, and may require the return of any officer or employee of the Treasury Department to be filed in any internal revenue district selected by the Secretary.
(6) Alcohol, tobacco, and firearms returns, etc.
In the case of any return of tax imposed by section 4181 or subtitle E (relating to taxes on alcohol, tobacco, and firearms), subsection (a) shall apply (and this subsection shall not apply).
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
2018—Subsec. (b)(2)(B)(ii).
Subsec. (b)(2)(B)(iii), (iv).
1989—Subsec. (b)(6).
1987—Subsec. (b)(1)(B)(v).
1986—Subsec. (b)(1)(B)(iii).
Subsec. (b)(6).
1981—Subsec. (b)(1)(B)(iii).
1978—Subsec. (b)(1)(B)(iii).
1976—Subsec. (a).
Subsec. (b)(1)(B).
Subsec. (b)(2)(B).
1970—Subsec. (b)(3).
Subsec. (b)(4).
1966—Subsec. (b)(1).
Subsec. (b)(2).
Subsec. (b)(4), (5).
Statutory Notes and Related Subsidiaries
Effective Date of 1987 Amendment
Effective Date of 1986 Amendment
Amendment by section 1272(d)(10) of
Effective Date of 1981 Amendment
Amendment by
Effective Date of 1978 Amendment; Election of Prior Law
Amendment by
Effective Date of 1976 Amendment
Amendment by section 1051(h)(4) of
Amendment by section 1052(c)(6) of
Amendment by section 1053(d)(4) of
Amendment by section 1204(c)(3) of
Effective Date of 1970 Amendment
Amendment by
Effective Date of 1966 Amendment
Savings Provision
For provisions that nothing in amendment by section 401(d)(1)(D)(xviii) of
Plan Amendments Not Required Until January 1, 1989
For provisions directing that if any amendments made by subtitle A or subtitle C of title XI [§§1101–1147 and 1171–1177] or title XVIII [§§1800–1899A] of
PART VIII—DESIGNATION OF INCOME TAX PAYMENTS TO PRESIDENTIAL ELECTION CAMPAIGN FUND
Editorial Notes
Amendments
1966—
§6096. Designation by individuals
(a) In general
Every individual (other than a nonresident alien) whose income tax liability for the taxable year is $3 or more may designate that $3 shall be paid over to the Presidential Election Campaign Fund in accordance with the provisions of section 9006(a). In the case of a joint return of husband and wife having an income tax liability of $6 or more, each spouse may designate that $3 shall be paid to the fund.
(b) Income tax liability
For purposes of subsection (a), the income tax liability of an individual for any taxable year is the amount of the tax imposed by
(c) Manner and time of designation
A designation under subsection (a) may be made with respect to any taxable year—
(1) at the time of filing the return of the tax imposed by
(2) at any other time (after the time of filing the return of the tax imposed by
Such designation shall be made in such manner as the Secretary prescribes by regulations except that, if such designation is made at the time of filing the return of the tax imposed by
(Added
Editorial Notes
Amendments
1993—Subsec. (a).
1984—Subsec. (b).
1983—Subsec. (b).
1981—Subsec. (b).
1980—Subsec. (b).
1978—Subsec. (b).
1977—Subsec. (b).
1976—Subsec. (b).
Subsec. (c).
1975—Subsec. (b).
1973—Subsec. (a).
Subsec. (b).
Subsec. (c).
1971—Subsec. (a).
Statutory Notes and Related Subsidiaries
Effective Date of 1993 Amendment
Effective Date of 1984 Amendment
Amendment by
Effective Date of 1983 Amendment
Amendment by
Effective Date of 1981 Amendment
Amendment by section 221(c)(1) of
Amendment by section 331(e)(1) of
Effective Date of 1980 Amendment
Amendment by section 231(b)(2) of
Amendment by section 232(b)(3)(C) of
Effective Date of 1978 Amendment
Amendment by
Effective Date of 1977 Amendment
Amendment by
Effective and Termination Dates of 1976 Amendment
Amendment by section 401(a)(2)(C) of
Amendment by section 504(c)(2) of
Effective and Termination Dates of 1975 Amendment
Amendment by
Effective Date of 1973 Amendment; Designation to the Presidential Election Campaign Fund
Effective Date of Section and Effective Date of 1971 Amendment
Provisions of this section, together with amendment of subsec. (a) of this section by
Effective Date
Short Title
Adoption of Guidelines
"(a) Funds which become available under the Presidential Election Campaign Fund Act of 1966 [this section and section 971 et seq. of former Title 31, Money and Finance] shall be appropriated and disbursed only after the adoption by law of guidelines governing their distribution. Section 6096 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] shall become applicable only after the adoption by law of such guidelines.
"(b) Guidelines adopted in accordance with this section shall state expressly that they are intended to comply with this section."
Subchapter B—Miscellaneous Provisions
Editorial Notes
Amendments
2011—
2007—
2004—
2000—
1993—
1988—
1987—
1984—
1976—
1968—
1966—
1961—
1 Section repealed by
§6101. Period covered by returns or other documents
When not otherwise provided for by this title, the Secretary may by regulations prescribe the period for which, or the date as of which, any return, statement, or other document required by this title or by regulations, shall be made.
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
1976—
§6102. Computations on returns or other documents
(a) Amounts shown on internal revenue forms
The Secretary is authorized to provide with respect to any amount required to be shown on a form prescribed for any internal revenue return, statement, or other document, that if such amount of such item is other than a whole-dollar amount, either—
(1) the fractional part of a dollar shall be disregarded; or
(2) the fractional part of a dollar shall be disregarded unless it amounts to one-half dollar or more, in which case the amount (determined without regard to the fractional part of a dollar) shall be increased by $1.
(b) Election not to use whole dollar amounts
Any person making a return, statement, or other document shall be allowed, under regulations prescribed by the Secretary, to make such return, statement, or other document without regard to subsection (a).
(c) Inapplicability to computation of amount
The provisions of subsections (a) and (b) shall not be applicable to items which must be taken into account in making the computations necessary to determine the amount required to be shown on a form, but shall be applicable only to such final amount.
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
1976—Subsecs. (a), (b).
§6103. Confidentiality and disclosure of returns and return information
(a) General rule
Returns and return information shall be confidential, and except as authorized by this title—
(1) no officer or employee of the United States,
(2) no officer or employee of any State, any local law enforcement agency receiving information under subsection (i)(1)(C) or (7)(A), any tribal or local child support enforcement agency, or any local agency administering a program listed in subsection (l)(7)(D) who has or had access to returns or return information under this section or section 6104(c), and
(3) no other person (or officer or employee thereof) who has or had access to returns or return information under subsection (c), subsection (e)(1)(D)(iii), paragraph (10), (13), (14), or (15) of subsection (k), paragraph (6), (8), (10), (12), (13) (other than subparagraphs (D)(v) and (D)(vi) thereof), (16), (19), (20), or (21) of subsection (l), paragraph (2) or (4)(B) of subsection (m), or subsection (n),
shall disclose any return or return information obtained by him in any manner in connection with his service as such an officer or an employee or otherwise or under the provisions of this section. For purposes of this subsection, the term "officer or employee" includes a former officer or employee.
(b) Definitions
For purposes of this section—
(1) Return
The term "return" means any tax or information return, declaration of estimated tax, or claim for refund required by, or provided for or permitted under, the provisions of this title which is filed with the Secretary by, on behalf of, or with respect to any person, and any amendment or supplement thereto, including supporting schedules, attachments, or lists which are supplemental to, or part of, the return so filed.
(2) Return information
The term "return information" means—
(A) a taxpayer's identity, the nature, source, or amount of his income, payments, receipts, deductions, exemptions, credits, assets, liabilities, net worth, tax liability, tax withheld, deficiencies, overassessments, or tax payments, whether the taxpayer's return was, is being, or will be examined or subject to other investigation or processing, or any other data, received by, recorded by, prepared by, furnished to, or collected by the Secretary with respect to a return or with respect to the determination of the existence, or possible existence, of liability (or the amount thereof) of any person under this title for any tax, penalty, interest, fine, forfeiture, or other imposition, or offense,
(B) any part of any written determination or any background file document relating to such written determination (as such terms are defined in section 6110(b)) which is not open to public inspection under section 6110,
(C) any advance pricing agreement entered into by a taxpayer and the Secretary and any background information related to such agreement or any application for an advance pricing agreement, and
(D) any agreement under section 7121, and any similar agreement, and any background information related to such an agreement or request for such an agreement,
but such term does not include data in a form which cannot be associated with, or otherwise identify, directly or indirectly, a particular taxpayer. Nothing in the preceding sentence, or in any other provision of law, shall be construed to require the disclosure of standards used or to be used for the selection of returns for examination, or data used or to be used for determining such standards, if the Secretary determines that such disclosure will seriously impair assessment, collection, or enforcement under the internal revenue laws.
(3) Taxpayer return information
The term "taxpayer return information" means return information as defined in paragraph (2) which is filed with, or furnished to, the Secretary by or on behalf of the taxpayer to whom such return information relates.
(4) Tax administration
The term "tax administration"—
(A) means—
(i) the administration, management, conduct, direction, and supervision of the execution and application of the internal revenue laws or related statutes (or equivalent laws and statutes of a State) and tax conventions to which the United States is a party, and
(ii) the development and formulation of Federal tax policy relating to existing or proposed internal revenue laws, related statutes, and tax conventions, and
(B) includes assessment, collection, enforcement, litigation, publication, and statistical gathering functions under such laws, statutes, or conventions.
(5) State
(A) In general
The term "State" means—
(i) any of the 50 States, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands,
(ii) for purposes of subsections (a)(2), (b)(4), (d)(1), (h)(4), and (p), any municipality—
(I) with a population in excess of 250,000 (as determined under the most recent decennial United States census data available),
(II) which imposes a tax on income or wages, and
(III) with which the Secretary (in his sole discretion) has entered into an agreement regarding disclosure, and
(iii) for purposes of subsections (a)(2), (b)(4), (d)(1), (h)(4), and (p), any governmental entity—
(I) which is formed and operated by a qualified group of municipalities, and
(II) with which the Secretary (in his sole discretion) has entered into an agreement regarding disclosure.
(B) Regional income tax agencies
For purposes of subparagraph (A)(iii)—
(i) Qualified group of municipalities
The term "qualified group of municipalities" means, with respect to any governmental entity, 2 or more municipalities—
(I) each of which imposes a tax on income or wages,
(II) each of which, under the authority of a State statute, administers the laws relating to the imposition of such taxes through such entity, and
(III) which collectively have a population in excess of 250,000 (as determined under the most recent decennial United States census data available).
(ii) References to State law, etc.
For purposes of applying subparagraph (A)(iii) to the subsections referred to in such subparagraph, any reference in such subsections to State law, proceedings, or tax returns shall be treated as references to the law, proceedings, or tax returns, as the case may be, of the municipalities which form and operate the governmental entity referred to in such subparagraph.
(iii) Disclosure to contractors and other agents
Notwithstanding any other provision of this section, no return or return information shall be disclosed to any contractor or other agent of a governmental entity referred to in subparagraph (A)(iii) unless such entity, to the satisfaction of the Secretary—
(I) has requirements in effect which require each such contractor or other agent which would have access to returns or return information to provide safeguards (within the meaning of subsection (p)(4)) to protect the confidentiality of such returns or return information,
(II) agrees to conduct an on-site review every 3 years (or a mid-point review in the case of contracts or agreements of less than 3 years in duration) of each contractor or other agent to determine compliance with such requirements,
(III) submits the findings of the most recent review conducted under subclause (II) to the Secretary as part of the report required by subsection (p)(4)(E), and
(IV) certifies to the Secretary for the most recent annual period that such contractor or other agent is in compliance with all such requirements.
The certification required by subclause (IV) shall include the name and address of each contractor and other agent, a description of the contract or agreement with such contractor or other agent, and the duration of such contract or agreement. The requirements of this clause shall not apply to disclosures pursuant to subsection (n) for purposes of Federal tax administration and a rule similar to the rule of subsection (p)(8)(B) shall apply for purposes of this clause.
(6) Taxpayer identity
The term "taxpayer identity" means the name of a person with respect to whom a return is filed, his mailing address, his taxpayer identifying number (as described in section 6109), or a combination thereof.
(7) Inspection
The terms "inspected" and "inspection" mean any examination of a return or return information.
(8) Disclosure
The term "disclosure" means the making known to any person in any manner whatever a return or return information.
(9) Federal agency
The term "Federal agency" means an agency within the meaning of
(10) Chief executive officer
The term "chief executive officer" means, with respect to any municipality, any elected official and the chief official (even if not elected) of such municipality.
(11) Terrorist incident, threat, or activity
The term "terrorist incident, threat, or activity" means an incident, threat, or activity involving an act of domestic terrorism (as defined in
(c) Disclosure of returns and return information to designee of taxpayer
The Secretary may, subject to such requirements and conditions as he may prescribe by regulations, disclose the return of any taxpayer, or return information with respect to such taxpayer, to such person or persons as the taxpayer may designate in a request for or consent to such disclosure, or to any other person at the taxpayer's request to the extent necessary to comply with a request for information or assistance made by the taxpayer to such other person. However, return information shall not be disclosed to such person or persons if the Secretary determines that such disclosure would seriously impair Federal tax administration. Persons designated by the taxpayer under this subsection to receive return information shall not use the information for any purpose other than the express purpose for which consent was granted and shall not disclose return information to any other person without the express permission of, or request by, the taxpayer.
(d) Disclosure to State tax officials and State and local law enforcement agencies
(1) In general
Returns and return information with respect to taxes imposed by chapters 1, 2, 6, 11, 12, 21, 23, 24, 31, 32, 44, 51, and 52 and subchapter D of
(2) Disclosure to State audit agencies
(A) In general
Any returns or return information obtained under paragraph (1) by any State agency, body, or commission may be open to inspection by, or disclosure to, officers and employees of the State audit agency for the purpose of, and only to the extent necessary in, making an audit of the State agency, body, or commission referred to in paragraph (1).
(B) State audit agency
For purposes of subparagraph (A), the term "State audit agency" means any State agency, body, or commission which is charged under the laws of the State with the responsibility of auditing State revenues and programs.
(3) Exception for reimbursement under section 7624
Nothing in this section shall be construed to prevent the Secretary from disclosing to any State or local law enforcement agency which may receive a payment under section 7624 the amount of the recovered taxes with respect to which such a payment may be made.
(4) Availability and use of death information
(A) In general
No returns or return information may be disclosed under paragraph (1) to any agency, body, or commission of any State (or any legal representative thereof) during any period during which a contract meeting the requirements of subparagraph (B) is not in effect between such State and the Secretary of Health and Human Services.
(B) Contractual requirements
A contract meets the requirements of this subparagraph if—
(i) such contract requires the State to furnish the Secretary of Health and Human Services information concerning individuals with respect to whom death certificates (or equivalent documents maintained by the State or any subdivision thereof) have been officially filed with it, and
(ii) such contract does not include any restriction on the use of information obtained by such Secretary pursuant to such contract, except that such contract may provide that such information is only to be used by the Secretary (or any other Federal agency) for purposes of ensuring that Federal benefits or other payments are not erroneously paid to deceased individuals.
Any information obtained by the Secretary of Health and Human Services under such a contract shall be exempt from disclosure under
(C) Special exception
The provisions of subparagraph (A) shall not apply to any State which on July 1, 1993, was not, pursuant to a contract, furnishing the Secretary of Health and Human Services information concerning individuals with respect to whom death certificates (or equivalent documents maintained by the State or any subdivision thereof) have been officially filed with it.
(5) Disclosure for combined employment tax reporting
(A) In general
The Secretary may disclose taxpayer identity information and signatures to any agency, body, or commission of any State for the purpose of carrying out with such agency, body, or commission a combined Federal and State employment tax reporting program approved by the Secretary. Subsections (a)(2) and (p)(4) and sections 7213 and 7213A shall not apply with respect to disclosures or inspections made pursuant to this paragraph.
(B) Termination
The Secretary may not make any disclosure under this paragraph after December 31, 2007.
(6) Limitation on disclosure regarding regional income tax agencies treated as States
For purposes of paragraph (1), inspection by or disclosure to an entity described in subsection (b)(5)(A)(iii) shall be for the purpose of, and only to the extent necessary in, the administration of the laws of the member municipalities in such entity relating to the imposition of a tax on income or wages. Such entity may not redisclose any return or return information received pursuant to paragraph (1) to any such member municipality.
(e) Disclosure to persons having material interest
(1) In general
The return of a person shall, upon written request, be open to inspection by or disclosure to—
(A) in the case of the return of an individual—
(i) that individual,
(ii) the spouse of that individual if the individual and such spouse have signified their consent to consider a gift reported on such return as made one-half by him and one-half by the spouse pursuant to the provisions of section 2513; or
(iii) the child of that individual (or such child's legal representative) to the extent necessary to comply with the provisions of section 1(g);
(B) in the case of an income tax return filed jointly, either of the individuals with respect to whom the return is filed;
(C) in the case of the return of a partnership, any person who was a member of such partnership during any part of the period covered by the return;
(D) in the case of the return of a corporation or a subsidiary thereof—
(i) any person designated by resolution of its board of directors or other similar governing body,
(ii) any officer or employee of such corporation upon written request signed by any principal officer and attested to by the secretary or other officer,
(iii) any bona fide shareholder of record owning 1 percent or more of the outstanding stock of such corporation,
(iv) if the corporation was an S corporation, any person who was a shareholder during any part of the period covered by such return during which an election under section 1362(a) was in effect, or
(v) if the corporation has been dissolved, any person authorized by applicable State law to act for the corporation or any person who the Secretary finds to have a material interest which will be affected by information contained therein;
(E) in the case of the return of an estate—
(i) the administrator, executor, or trustee of such estate, and
(ii) any heir at law, next of kin, or beneficiary under the will, of the decedent, but only if the Secretary finds that such heir at law, next of kin, or beneficiary has a material interest which will be affected by information contained therein; and
(F) in the case of the return of a trust—
(i) the trustee or trustees, jointly or separately, and
(ii) any beneficiary of such trust, but only if the Secretary finds that such beneficiary has a material interest which will be affected by information contained therein.
(2) Incompetency
If an individual described in paragraph (1) is legally incompetent, the applicable return shall, upon written request, be open to inspection by or disclosure to the committee, trustee, or guardian of his estate.
(3) Deceased individuals
The return of a decedent shall, upon written request, be open to inspection by or disclosure to—
(A) the administrator, executor, or trustee of his estate, and
(B) any heir at law, next of kin, or beneficiary under the will, of such decedent, or a donee of property, but only if the Secretary finds that such heir at law, next of kin, beneficiary, or donee has a material interest which will be affected by information contained therein.
(4) Title 11 cases and receivership proceedings
If—
(A) there is a trustee in a title 11 case in which the debtor is the person with respect to whom the return is filed, or
(B) substantially all of the property of the person with respect to whom the return is filed is in the hands of a receiver,
such return or returns for prior years of such person shall, upon written request, be open to inspection by or disclosure to such trustee or receiver, but only if the Secretary finds that such trustee or receiver, in his fiduciary capacity, has a material interest which will be affected by information contained therein.
(5) Individual's title 11 case
(A) In general
In any case to which section 1398 applies (determined without regard to section 1398(b)(1)), any return of the debtor for the taxable year in which the case commenced or any preceding taxable year shall, upon written request, be open to inspection by or disclosure to the trustee in such case.
(B) Return of estate available to debtor
Any return of an estate in a case to which section 1398 applies shall, upon written request, be open to inspection by or disclosure to the debtor in such case.
(C) Special rule for involuntary cases
In an involuntary case, no disclosure shall be made under subparagraph (A) until the order for relief has been entered by the court having jurisdiction of such case unless such court finds that such disclosure is appropriate for purposes of determining whether an order for relief should be entered.
(6) Attorney in fact
Any return to which this subsection applies shall, upon written request, also be open to inspection by or disclosure to the attorney in fact duly authorized in writing by any of the persons described in paragraph (1), (2), (3), (4), (5), (8), or (9) to inspect the return or receive the information on his behalf, subject to the conditions provided in such paragraphs.
(7) Return information
Return information with respect to any taxpayer may be open to inspection by or disclosure to any person authorized by this subsection to inspect any return of such taxpayer if the Secretary determines that such disclosure would not seriously impair Federal tax administration.
(8) Disclosure of collection activities with respect to joint return
If any deficiency of tax with respect to a joint return is assessed and the individuals filing such return are no longer married or no longer reside in the same household, upon request in writing by either of such individuals, the Secretary shall disclose in writing to the individual making the request whether the Secretary has attempted to collect such deficiency from such other individual, the general nature of such collection activities, and the amount collected. The preceding sentence shall not apply to any deficiency which may not be collected by reason of section 6502.
(9) Disclosure of certain information where more than 1 person subject to penalty under section 6672
If the Secretary determines that a person is liable for a penalty under section 6672(a) with respect to any failure, upon request in writing of such person, the Secretary shall disclose in writing to such person—
(A) the name of any other person whom the Secretary has determined to be liable for such penalty with respect to such failure, and
(B) whether the Secretary has attempted to collect such penalty from such other person, the general nature of such collection activities, and the amount collected.
(10) Limitation on certain disclosures under this subsection
In the case of an inspection or disclosure under this subsection relating to the return of a partnership, S corporation, trust, or an estate, the information inspected or disclosed shall not include any supporting schedule, attachment, or list which includes the taxpayer identity information of a person other than the entity making the return or the person conducting the inspection or to whom the disclosure is made.
(11) Disclosure of information regarding status of investigation of violation of this section
In the case of a person who provides to the Secretary information indicating a violation of section 7213, 7213A, or 7214 with respect to any return or return information of such person, the Secretary may disclose to such person (or such person's designee)—
(A) whether an investigation based on the person's provision of such information has been initiated and whether it is open or closed,
(B) whether any such investigation substantiated such a violation by any individual, and
(C) whether any action has been taken with respect to such individual (including whether a referral has been made for prosecution of such individual).
(f) Disclosure to Committees of Congress
(1) Committee on Ways and Means, Committee on Finance, and Joint Committee on Taxation
Upon written request from the chairman of the Committee on Ways and Means of the House of Representatives, the chairman of the Committee on Finance of the Senate, or the chairman of the Joint Committee on Taxation, the Secretary shall furnish such committee with any return or return information specified in such request, except that any return or return information which can be associated with, or otherwise identify, directly or indirectly, a particular taxpayer shall be furnished to such committee only when sitting in closed executive session unless such taxpayer otherwise consents in writing to such disclosure.
(2) Chief of Staff of Joint Committee on Taxation
Upon written request by the Chief of Staff of the Joint Committee on Taxation, the Secretary shall furnish him with any return or return information specified in such request. Such Chief of Staff may submit such return or return information to any committee described in paragraph (1), except that any return or return information which can be associated with, or otherwise identify, directly or indirectly, a particular taxpayer shall be furnished to such committee only when sitting in closed executive session unless such taxpayer otherwise consents in writing to such disclosure.
(3) Other committees
Pursuant to an action by, and upon written request by the chairman of, a committee of the Senate or the House of Representatives (other than a committee specified in paragraph (1)) specially authorized to inspect any return or return information by a resolution of the Senate or the House of Representatives or, in the case of a joint committee (other than the joint committee specified in paragraph (1)) by concurrent resolution, the Secretary shall furnish such committee, or a duly authorized and designated subcommittee thereof, sitting in closed executive session, with any return or return information which such resolution authorizes the committee or subcommittee to inspect. Any resolution described in this paragraph shall specify the purpose for which the return or return information is to be furnished and that such information cannot reasonably be obtained from any other source.
(4) Agents of committees and submission of information to Senate or House of Representatives
(A) Committees described in paragraph (1)
Any committee described in paragraph (1) or the Chief of Staff of the Joint Committee on Taxation shall have the authority, acting directly, or by or through such examiners or agents as the chairman of such committee or such chief of staff may designate or appoint, to inspect returns and return information at such time and in such manner as may be determined by such chairman or chief of staff. Any return or return information obtained by or on behalf of such committee pursuant to the provisions of this subsection may be submitted by the committee to the Senate or the House of Representatives, or to both. The Joint Committee on Taxation may also submit such return or return information to any other committee described in paragraph (1), except that any return or return information which can be associated with, or otherwise identify, directly or indirectly, a particular taxpayer shall be furnished to such committee only when sitting in closed executive session unless such taxpayer otherwise consents in writing to such disclosure.
(B) Other committees
Any committee or subcommittee described in paragraph (3) shall have the right, acting directly, or by or through no more than four examiners or agents, designated or appointed in writing in equal numbers by the chairman and ranking minority member of such committee or subcommittee, to inspect returns and return information at such time and in such manner as may be determined by such chairman and ranking minority member. Any return or return information obtained by or on behalf of such committee or subcommittee pursuant to the provisions of this subsection may be submitted by the committee to the Senate or the House of Representatives, or to both, except that any return or return information which can be associated with, or otherwise identify, directly or indirectly, a particular taxpayer, shall be furnished to the Senate or the House of Representatives only when sitting in closed executive session unless such taxpayer otherwise consents in writing to such disclosure.
(5) Disclosure by whistleblower
Any person who otherwise has or had access to any return or return information under this section may disclose such return or return information to a committee referred to in paragraph (1) or any individual authorized to receive or inspect information under paragraph (4)(A) if such person believes such return or return information may relate to possible misconduct, maladministration, or taxpayer abuse.
(g) Disclosure to President and certain other persons
(1) In general
Upon written request by the President, signed by him personally, the Secretary shall furnish to the President, or to such employee or employees of the White House Office as the President may designate by name in such request, a return or return information with respect to any taxpayer named in such request. Any such request shall state—
(A) the name and address of the taxpayer whose return or return information is to be disclosed,
(B) the kind of return or return information which is to be disclosed,
(C) the taxable period or periods covered by such return or return information, and
(D) the specific reason why the inspection or disclosure is requested.
(2) Disclosure of return information as to Presidential appointees and certain other Federal Government appointees
The Secretary may disclose to a duly authorized representative of the Executive Office of the President or to the head of any Federal agency, upon written request by the President or head of such agency, or to the Federal Bureau of Investigation on behalf of and upon written request by the President or such head, return information with respect to an individual who is designated as being under consideration for appointment to a position in the executive or judicial branch of the Federal Government. Such return information shall be limited to whether such individual—
(A) has filed returns with respect to the taxes imposed under
(B) has failed to pay any tax within 10 days after notice and demand, or has been assessed any penalty under this title for negligence, in the current year or immediately preceding 3 years;
(C) has been or is under investigation for possible criminal offenses under the internal revenue laws and the results of any such investigation; or
(D) has been assessed any civil penalty under this title for fraud.
Within 3 days of the receipt of any request for any return information with respect to any individual under this paragraph, the Secretary shall notify such individual in writing that such information has been requested under the provisions of this paragraph.
(3) Restriction on disclosure
The employees to whom returns and return information are disclosed under this subsection shall not disclose such returns and return information to any other person except the President or the head of such agency without the personal written direction of the President or the head of such agency.
(4) Restriction on disclosure to certain employees
Disclosure of returns and return information under this subsection shall not be made to any employee whose annual rate of basic pay is less than the annual rate of basic pay specified for positions subject to
(5) Reporting requirements
Within 30 days after the close of each calendar quarter, the President and the head of any agency requesting returns and return information under this subsection shall each file a report with the Joint Committee on Taxation setting forth the taxpayers with respect to whom such requests were made during such quarter under this subsection, the returns or return information involved, and the reasons for such requests. The President shall not be required to report on any request for returns and return information pertaining to an individual who was an officer or employee of the executive branch of the Federal Government at the time such request was made. Reports filed pursuant to this paragraph shall not be disclosed unless the Joint Committee on Taxation determines that disclosure thereof (including identifying details) would be in the national interest. Such reports shall be maintained by the Joint Committee on Taxation for a period not exceeding 2 years unless, within such period, the Joint Committee on Taxation determines that a disclosure to the Congress is necessary.
(h) Disclosure to certain Federal officers and employees for purposes of tax administration, etc.
(1) Department of the Treasury
Returns and return information shall, without written request, be open to inspection by or disclosure to officers and employees of the Department of the Treasury whose official duties require such inspection or disclosure for tax administration purposes.
(2) Department of Justice
In a matter involving tax administration, a return or return information shall be open to inspection by or disclosure to officers and employees of the Department of Justice (including United States attorneys) personally and directly engaged in, and solely for their use in, any proceeding before a Federal grand jury or preparation for any proceeding (or investigation which may result in such a proceeding) before a Federal grand jury or any Federal or State court, but only if—
(A) the taxpayer is or may be a party to the proceeding, or the proceeding arose out of, or in connection with, determining the taxpayer's civil or criminal liability, or the collection of such civil liability in respect of any tax imposed under this title;
(B) the treatment of an item reflected on such return is or may be related to the resolution of an issue in the proceeding or investigation; or
(C) such return or return information relates or may relate to a transactional relationship between a person who is or may be a party to the proceeding and the taxpayer which affects, or may affect, the resolution of an issue in such proceeding or investigation.
(3) Form of request
In any case in which the Secretary is authorized to disclose a return or return information to the Department of Justice pursuant to the provisions of this subsection—
(A) if the Secretary has referred the case to the Department of Justice, or if the proceeding is authorized by subchapter B of
(B) if the Secretary receives a written request from the Attorney General, the Deputy Attorney General, or an Assistant Attorney General for a return of, or return information relating to, a person named in such request and setting forth the need for the disclosure, the Secretary shall disclose return or return the information so requested.
(4) Disclosure in judicial and administrative tax proceedings
A return or return information may be disclosed in a Federal or State judicial or administrative proceeding pertaining to tax administration, but only—
(A) if the taxpayer is a party to the proceeding, or the proceeding arose out of, or in connection with, determining the taxpayer's civil or criminal liability, or the collection of such civil liability, in respect of any tax imposed under this title;
(B) if the treatment of an item reflected on such return is directly related to the resolution of an issue in the proceeding;
(C) if such return or return information directly relates to a transactional relationship between a person who is a party to the proceeding and the taxpayer which directly affects the resolution of an issue in the proceeding; or
(D) to the extent required by order of a court pursuant to
However, such return or return information shall not be disclosed as provided in subparagraph (A), (B), or (C) if the Secretary determines that such disclosure would identify a confidential informant or seriously impair a civil or criminal tax investigation.
(5) Withholding of tax from social security benefits
Upon written request of the payor agency, the Secretary may disclose available return information from the master files of the Internal Revenue Service with respect to the address and status of an individual as a nonresident alien or as a citizen or resident of the United States to the Social Security Administration or the Railroad Retirement Board (whichever is appropriate) for purposes of carrying out its responsibilities for withholding tax under section 1441 from social security benefits (as defined in section 86(d)).
(6) Internal Revenue Service Oversight Board
(A) In general
Notwithstanding paragraph (1), and except as provided in subparagraph (B), no return or return information may be disclosed to any member of the Oversight Board described in subparagraph (A) or (D) of section 7802(b)(1) or to any employee or detailee of such Board by reason of their service with the Board. Any request for information not permitted to be disclosed under the preceding sentence, and any contact relating to a specific taxpayer, made by any such individual to an officer or employee of the Internal Revenue Service shall be reported by such officer or employee to the Secretary, the Treasury Inspector General for Tax Administration, and the Joint Committee on Taxation.
(B) Exception for reports to the Board
If—
(i) the Commissioner or the Treasury Inspector General for Tax Administration prepares any report or other matter for the Oversight Board in order to assist the Board in carrying out its duties; and
(ii) the Commissioner or such Inspector General determines it is necessary to include any return or return information in such report or other matter to enable the Board to carry out such duties,
such return or return information (other than information regarding taxpayer identity) may be disclosed to members, employees, or detailees of the Board solely for the purpose of carrying out such duties.
(i) Disclosure to Federal officers or employees for administration of Federal laws not relating to tax administration
(1) Disclosure of returns and return information for use in criminal investigations
(A) In general
Except as provided in paragraph (6), any return or return information with respect to any specified taxable period or periods shall, pursuant to and upon the grant of an ex parte order by a Federal district court judge or magistrate judge under subparagraph (B), be open (but only to the extent necessary as provided in such order) to inspection by, or disclosure to, officers and employees of any Federal agency who are personally and directly engaged in—
(i) preparation for any judicial or administrative proceeding pertaining to the enforcement of a specifically designated Federal criminal statute (not involving tax administration) to which the United States or such agency is or may be a party, or pertaining to the case of a missing or exploited child,
(ii) any investigation which may result in such a proceeding, or
(iii) any Federal grand jury proceeding pertaining to enforcement of such a criminal statute to which the United States or such agency is or may be a party, or to such a case of a missing or exploited child,
solely for the use of such officers and employees in such preparation, investigation, or grand jury proceeding.
(B) Application for order
The Attorney General, the Deputy Attorney General, the Associate Attorney General, any Assistant Attorney General, any United States attorney, any special prosecutor appointed under
(i) there is reasonable cause to believe, based upon information believed to be reliable, that a specific criminal act has been committed,
(ii) there is reasonable cause to believe that the return or return information is or may be relevant to a matter relating to the commission of such act, and
(iii) the return or return information is sought exclusively for use in a Federal criminal investigation or proceeding concerning such act (or any criminal investigation or proceeding, in the case of a matter relating to a missing or exploited child), and the information sought to be disclosed cannot reasonably be obtained, under the circumstances, from another source.
(C) Disclosure to state and local law enforcement agencies in the case of matters pertaining to a missing or exploited child
(i) In general
In the case of an investigation pertaining to a missing or exploited child, the head of any Federal agency, or his designee, may disclose any return or return information obtained under subparagraph (A) to officers and employees of any State or local law enforcement agency, but only if—
(I) such State or local law enforcement agency is part of a team with the Federal agency in such investigation, and
(II) such information is disclosed only to such officers and employees who are personally and directly engaged in such investigation.
(ii) Limitation on use of information
Information disclosed under this subparagraph shall be solely for the use of such officers and employees in locating the missing child, in a grand jury proceeding, or in any preparation for, or investigation which may result in, a judicial or administrative proceeding.
(iii) Missing child
For purposes of this subparagraph, the term "missing child" shall have the meaning given such term by section 403 of the Missing Children's Assistance Act (
(iv) Exploited child
For purposes of this subparagraph, the term "exploited child" means a minor with respect to whom there is reason to believe that a specified offense against a minor (as defined by section 111(7) of the Sex Offender Registration and Notification Act (
(2) Disclosure of return information other than taxpayer return information for use in criminal investigations
(A) In general
Except as provided in paragraph (6), upon receipt by the Secretary of a request which meets the requirements of subparagraph (B) from the head of any Federal agency or the Inspector General thereof, or, in the case of the Department of Justice, the Attorney General, the Deputy Attorney General, the Associate Attorney General, any Assistant Attorney General, the Director of the Federal Bureau of Investigation, the Administrator of the Drug Enforcement Administration, any United States attorney, any special prosecutor appointed under
(i) preparation for any judicial or administrative proceeding described in paragraph (1)(A)(i),
(ii) any investigation which may result in such a proceeding, or
(iii) any grand jury proceeding described in paragraph (1)(A)(iii),
solely for the use of such officers and employees in such preparation, investigation, or grand jury proceeding.
(B) Requirements
A request meets the requirements of this subparagraph if the request is in writing and sets forth—
(i) the name and address of the taxpayer with respect to whom the requested return information relates;
(ii) the taxable period or periods to which such return information relates;
(iii) the statutory authority under which the proceeding or investigation described in subparagraph (A) is being conducted; and
(iv) the specific reason or reasons why such disclosure is, or may be, relevant to such proceeding or investigation.
(C) Taxpayer identity
For purposes of this paragraph, a taxpayer's identity shall not be treated as taxpayer return information.
(3) Disclosure of return information to apprise appropriate officials of criminal or terrorist activities or emergency circumstances
(A) Possible violations of Federal criminal law
(i) In general
Except as provided in paragraph (6), the Secretary may disclose in writing return information (other than taxpayer return information) which may constitute evidence of a violation of any Federal criminal law (not involving tax administration) to the extent necessary to apprise the head of the appropriate Federal agency charged with the responsibility of enforcing such law. The head of such agency may disclose such return information to officers and employees of such agency to the extent necessary to enforce such law.
(ii) Taxpayer identity
If there is return information (other than taxpayer return information) which may constitute evidence of a violation by any taxpayer of any Federal criminal law (not involving tax administration), such taxpayer's identity may also be disclosed under clause (i).
(B) Emergency circumstances
(i) Danger of death or physical injury
Under circumstances involving an imminent danger of death or physical injury to any individual, the Secretary may disclose return information to the extent necessary to apprise appropriate officers or employees of any Federal or State law enforcement agency of such circumstances.
(ii) Flight from Federal prosecution
Under circumstances involving the imminent flight of any individual from Federal prosecution, the Secretary may disclose return information to the extent necessary to apprise appropriate officers or employees of any Federal law enforcement agency of such circumstances.
(C) Terrorist activities, etc.
(i) In general
Except as provided in paragraph (6), the Secretary may disclose in writing return information (other than taxpayer return information) that may be related to a terrorist incident, threat, or activity to the extent necessary to apprise the head of the appropriate Federal law enforcement agency responsible for investigating or responding to such terrorist incident, threat, or activity. The head of the agency may disclose such return information to officers and employees of such agency to the extent necessary to investigate or respond to such terrorist incident, threat, or activity.
(ii) Disclosure to the Department of Justice
Returns and taxpayer return information may also be disclosed to the Attorney General under clause (i) to the extent necessary for, and solely for use in preparing, an application under paragraph (7)(D).
(iii) Taxpayer identity
For purposes of this subparagraph, a taxpayer's identity shall not be treated as taxpayer return information.
(4) Use of certain disclosed returns and return information in judicial or administrative proceedings
(A) Returns and taxpayer return information
Except as provided in subparagraph (C), any return or taxpayer return information obtained under paragraph (1) or (7)(C) may be disclosed in any judicial or administrative proceeding pertaining to enforcement of a specifically designated Federal criminal statute or related civil forfeiture (not involving tax administration) to which the United States or a Federal agency is a party—
(i) if the court finds that such return or taxpayer return information is probative of a matter in issue relevant in establishing the commission of a crime or the guilt or liability of a party, or
(ii) to the extent required by order of the court pursuant to
(B) Return information (other than taxpayer return information)
Except as provided in subparagraph (C), any return information (other than taxpayer return information) obtained under paragraph (1), (2), (3)(A) or (C), or (7) may be disclosed in any judicial or administrative proceeding pertaining to enforcement of a specifically designated Federal criminal statute or related civil forfeiture (not involving tax administration) to which the United States or a Federal agency is a party.
(C) Confidential informant; impairment of investigations
No return or return information shall be admitted into evidence under subparagraph (A)(i) or (B) if the Secretary determines and notifies the Attorney General or his delegate or the head of the Federal agency that such admission would identify a confidential informant or seriously impair a civil or criminal tax investigation.
(D) Consideration of confidentiality policy
In ruling upon the admissibility of returns or return information, and in the issuance of an order under subparagraph (A)(ii), the court shall give due consideration to congressional policy favoring the confidentiality of returns and return information as set forth in this title.
(E) Reversible error
The admission into evidence of any return or return information contrary to the provisions of this paragraph shall not, as such, constitute reversible error upon appeal of a judgment in the proceeding.
(5) Disclosure to locate fugitives from justice
(A) In general
Except as provided in paragraph (6), the return of an individual or return information with respect to such individual shall, pursuant to and upon the grant of an ex parte order by a Federal district court judge or magistrate judge under subparagraph (B), be open (but only to the extent necessary as provided in such order) to inspection by, or disclosure to, officers and employees of any Federal agency exclusively for use in locating such individual.
(B) Application for order
Any person described in paragraph (1)(B) may authorize an application to a Federal district court judge or magistrate judge for an order referred to in subparagraph (A). Upon such application, such judge or magistrate judge may grant such order if he determines on the basis of the facts submitted by the applicant that—
(i) a Federal arrest warrant relating to the commission of a Federal felony offense has been issued for an individual who is a fugitive from justice,
(ii) the return of such individual or return information with respect to such individual is sought exclusively for use in locating such individual, and
(iii) there is reasonable cause to believe that such return or return information may be relevant in determining the location of such individual.
(6) Confidential informants; impairment of investigations
The Secretary shall not disclose any return or return information under paragraph (1), (2), (3)(A) or (C), (5), (7), or (8) if the Secretary determines (and, in the case of a request for disclosure pursuant to a court order described in paragraph (1)(B) or (5)(B), certifies to the court) that such disclosure would identify a confidential informant or seriously impair a civil or criminal tax investigation.
(7) Disclosure upon request of information relating to terrorist activities, etc.
(A) Disclosure to law enforcement agencies
(i) In general
Except as provided in paragraph (6), upon receipt by the Secretary of a written request which meets the requirements of clause (iii), the Secretary may disclose return information (other than taxpayer return information) to officers and employees of any Federal law enforcement agency who are personally and directly engaged in the response to or investigation of any terrorist incident, threat, or activity.
(ii) Disclosure to State and local law enforcement agencies
The head of any Federal law enforcement agency may disclose return information obtained under clause (i) to officers and employees of any State or local law enforcement agency but only if such agency is part of a team with the Federal law enforcement agency in such response or investigation and such information is disclosed only to officers and employees who are personally and directly engaged in such response or investigation.
(iii) Requirements
A request meets the requirements of this clause if—
(I) the request is made by the head of any Federal law enforcement agency (or his delegate) involved in the response to or investigation of any terrorist incident, threat, or activity, and
(II) the request sets forth the specific reason or reasons why such disclosure may be relevant to a terrorist incident, threat, or activity.
(iv) Limitation on use of information
Information disclosed under this subparagraph shall be solely for the use of the officers and employees to whom such information is disclosed in such response or investigation.
(v) Taxpayer identity
For purposes of this subparagraph, a taxpayer's identity shall not be treated as taxpayer return information.
(B) Disclosure to intelligence agencies
(i) In general
Except as provided in paragraph (6), upon receipt by the Secretary of a written request which meets the requirements of clause (ii), the Secretary may disclose return information (other than taxpayer return information) to those officers and employees of the Department of Justice, the Department of the Treasury, and other Federal intelligence agencies who are personally and directly engaged in the collection or analysis of intelligence and counterintelligence information or investigation concerning any terrorist incident, threat, or activity. For purposes of the preceding sentence, the information disclosed under the preceding sentence shall be solely for the use of such officers and employees in such investigation, collection, or analysis.
(ii) Requirements
A request meets the requirements of this subparagraph if the request—
(I) is made by an individual described in clause (iii), and
(II) sets forth the specific reason or reasons why such disclosure may be relevant to a terrorist incident, threat, or activity.
(iii) Requesting individuals
An individual described in this subparagraph is an individual—
(I) who is an officer or employee of the Department of Justice or the Department of the Treasury who is appointed by the President with the advice and consent of the Senate or who is the Director of the United States Secret Service, and
(II) who is responsible for the collection and analysis of intelligence and counterintelligence information concerning any terrorist incident, threat, or activity.
(iv) Taxpayer identity
For purposes of this subparagraph, a taxpayer's identity shall not be treated as taxpayer return information.
(C) Disclosure under ex parte orders
(i) In general
Except as provided in paragraph (6), any return or return information with respect to any specified taxable period or periods shall, pursuant to and upon the grant of an ex parte order by a Federal district court judge or magistrate under clause (ii), be open (but only to the extent necessary as provided in such order) to inspection by, or disclosure to, officers and employees of any Federal law enforcement agency or Federal intelligence agency who are personally and directly engaged in any investigation, response to, or analysis of intelligence and counterintelligence information concerning any terrorist incident, threat, or activity. Return or return information opened to inspection or disclosure pursuant to the preceding sentence shall be solely for the use of such officers and employees in the investigation, response, or analysis, and in any judicial, administrative, or grand jury proceedings, pertaining to such terrorist incident, threat, or activity.
(ii) Application for order
The Attorney General, the Deputy Attorney General, the Associate Attorney General, any Assistant Attorney General, or any United States attorney may authorize an application to a Federal district court judge or magistrate for the order referred to in clause (i). Upon such application, such judge or magistrate may grant such order if he determines on the basis of the facts submitted by the applicant that—
(I) there is reasonable cause to believe, based upon information believed to be reliable, that the return or return information may be relevant to a matter relating to such terrorist incident, threat, or activity, and
(II) the return or return information is sought exclusively for use in a Federal investigation, analysis, or proceeding concerning any terrorist incident, threat, or activity.
(D) Special rule for ex parte disclosure by the IRS
(i) In general
Except as provided in paragraph (6), the Secretary may authorize an application to a Federal district court judge or magistrate for the order referred to in subparagraph (C)(i). Upon such application, such judge or magistrate may grant such order if he determines on the basis of the facts submitted by the applicant that the requirements of subparagraph (C)(ii)(I) are met.
(ii) Limitation on use of information
Information disclosed under clause (i)—
(I) may be disclosed only to the extent necessary to apprise the head of the appropriate Federal law enforcement agency responsible for investigating or responding to a terrorist incident, threat, or activity, and
(II) shall be solely for use in a Federal investigation, analysis, or proceeding concerning any terrorist incident, threat, or activity.
The head of such Federal agency may disclose such information to officers and employees of such agency to the extent necessary to investigate or respond to such terrorist incident, threat, or activity.
(8) Comptroller General
(A) Returns available for inspection
Except as provided in subparagraph (C), upon written request by the Comptroller General of the United States, returns and return information shall be open to inspection by, or disclosure to, officers and employees of the Government Accountability Office for the purpose of, and to the extent necessary in, making—
(i) an audit of the Internal Revenue Service, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Department of Justice, or the Tax and Trade Bureau, Department of the Treasury, which may be required by
(ii) any audit authorized by subsection (p)(6),
except that no such officer or employee shall, except to the extent authorized by subsection (f) or (p)(6), disclose to any person, other than another officer or employee of such office whose official duties require such disclosure, any return or return information described in section 4424(a) in a form which can be associated with, or otherwise identify, directly or indirectly, a particular taxpayer, nor shall such officer or employee disclose any other return or return information, except as otherwise expressly provided by law, to any person other than such other officer or employee of such office in a form which can be associated with, or otherwise identify, directly or indirectly, a particular taxpayer.
(B) Audits of other agencies
(i) In general
Nothing in this section shall prohibit any return or return information obtained under this title by any Federal agency (other than an agency referred to in subparagraph (A)) or by a Trustee as defined in the District of Columbia Retirement Protection Act of 1997, for use in any program or activity from being open to inspection by, or disclosure to, officers and employees of the Government Accountability Office if such inspection or disclosure is—
(I) for purposes of, and to the extent necessary in, making an audit authorized by law of such program or activity, and
(II) pursuant to a written request by the Comptroller General of the United States to the head of such Federal agency.
(ii) Information from Secretary
If the Comptroller General of the United States determines that the returns or return information available under clause (i) are not sufficient for purposes of making an audit of any program or activity of a Federal agency (other than an agency referred to in subparagraph (A)), upon written request by the Comptroller General to the Secretary, returns and return information (of the type authorized by subsection (l) or (m) to be made available to the Federal agency for use in such program or activity) shall be open to inspection by, or disclosure to, officers and employees of the Government Accountability Office for the purpose of, and to the extent necessary in, making such audit.
(iii) Requirement of notification upon completion of audit
Within 90 days after the completion of an audit with respect to which returns or return information were opened to inspection or disclosed under clause (i) or (ii), the Comptroller General of the United States shall notify in writing the Joint Committee on Taxation of such completion. Such notice shall include—
(I) a description of the use of the returns and return information by the Federal agency involved,
(II) such recommendations with respect to the use of returns and return information by such Federal agency as the Comptroller General deems appropriate, and
(III) a statement on the impact of any such recommendations on confidentiality of returns and return information and the administration of this title.
(iv) Certain restrictions made applicable
The restrictions contained in subparagraph (A) on the disclosure of any returns or return information open to inspection or disclosed under such subparagraph shall also apply to returns and return information open to inspection or disclosed under this subparagraph.
(C) Disapproval by Joint Committee on Taxation
Returns and return information shall not be open to inspection or disclosed under subparagraph (A) or (B) with respect to an audit—
(i) unless the Comptroller General of the United States notifies in writing the Joint Committee on Taxation of such audit, and
(ii) if the Joint Committee on Taxation disapproves such audit by a vote of at least two-thirds of its members within the 30-day period beginning on the day the Joint Committee on Taxation receives such notice.
(j) Statistical use
(1) Department of Commerce
Upon request in writing by the Secretary of Commerce, the Secretary shall furnish—
(A) such returns, or return information reflected thereon, to officers and employees of the Bureau of the Census, and
(B) such return information reflected on returns of corporations to officers and employees of the Bureau of Economic Analysis,
as the Secretary may prescribe by regulation for the purpose of, but only to the extent necessary in, the structuring of censuses and national economic accounts and conducting related statistical activities authorized by law.
(2) Federal Trade Commission
Upon request in writing by the Chairman of the Federal Trade Commission, the Secretary shall furnish such return information reflected on any return of a corporation with respect to the tax imposed by
(3) Department of Treasury
Returns and return information shall be open to inspection by or disclosure to officers and employees of the Department of the Treasury whose official duties require such inspection or disclosure for the purpose of, but only to the extent necessary in, preparing economic or financial forecasts, projections, analyses, and statistical studies and conducting related activities. Such inspection or disclosure shall be permitted only upon written request which sets forth the specific reason or reasons why such inspection or disclosure is necessary and which is signed by the head of the bureau or office of the Department of the Treasury requesting the inspection or disclosure.
(4) Anonymous form
No person who receives a return or return information under this subsection shall disclose such return or return information to any person other than the taxpayer to whom it relates except in a form which cannot be associated with, or otherwise identify, directly or indirectly, a particular taxpayer.
(5) Department of Agriculture
Upon request in writing by the Secretary of Agriculture, the Secretary shall furnish such returns, or return information reflected thereon, as the Secretary may prescribe by regulation to officers and employees of the Department of Agriculture whose official duties require access to such returns or information for the purpose of, but only to the extent necessary in, structuring, preparing, and conducting the census of agriculture pursuant to the Census of Agriculture Act of 1997 (
(6) Congressional Budget Office
Upon written request by the Director of the Congressional Budget Office, the Secretary shall furnish to officers and employees of the Congressional Budget Office return information for the purpose of, but only to the extent necessary for, long-term models of the social security and medicare programs.
(k) Disclosure of certain returns and return information for tax administration purposes
(1) Disclosure of accepted offers-in-compromise
Return information shall be disclosed to members of the general public to the extent necessary to permit inspection of any accepted offer-in-compromise under section 7122 relating to the liability for a tax imposed by this title.
(2) Disclosure of amount of outstanding lien
If a notice of lien has been filed pursuant to section 6323(f), the amount of the outstanding obligation secured by such lien may be disclosed to any person who furnishes satisfactory written evidence that he has a right in the property subject to such lien or intends to obtain a right in such property.
(3) Disclosure of return information to correct misstatements of fact
The Secretary may, but only following approval by the Joint Committee on Taxation, disclose such return information or any other information with respect to any specific taxpayer to the extent necessary for tax administration purposes to correct a misstatement of fact published or disclosed with respect to such taxpayer's return or any transaction of the taxpayer with the Internal Revenue Service.
(4) Disclosure to competent authority under tax convention
A return or return information may be disclosed to a competent authority of a foreign government which has an income tax or gift and estate tax convention, or other convention or bilateral agreement relating to the exchange of tax information, with the United States but only to the extent provided in, and subject to the terms and conditions of, such convention or bilateral agreement.
(5) State agencies regulating tax return preparers
Taxpayer identity information with respect to any tax return preparer, and information as to whether or not any penalty has been assessed against such tax return preparer under section 6694, 6695, or 7216, may be furnished to any agency, body, or commission lawfully charged under any State or local law with the licensing, registration, or regulation of tax return preparers. Such information may be furnished only upon written request by the head of such agency, body, or commission designating the officers or employees to whom such information is to be furnished. Information may be furnished and used under this paragraph only for purposes of the licensing, registration, or regulation of tax return preparers.
(6) Disclosure by certain officers and employees for investigative purposes
An internal revenue officer or employee and an officer or employee of the Office of Treasury Inspector General for Tax Administration may, in connection with his official duties relating to any audit, collection activity, or civil or criminal tax investigation or any other offense under the internal revenue laws, disclose return information to the extent that such disclosure is necessary in obtaining information, which is not otherwise reasonably available, with respect to the correct determination of tax, liability for tax, or the amount to be collected or with respect to the enforcement of any other provision of this title. Such disclosures shall be made only in such situations and under such conditions as the Secretary may prescribe by regulation. This paragraph shall not apply to any disclosure to an individual providing information relating to any purpose described in paragraph (1) or (2) of section 7623(a) which is made under paragraph (13)(A).
(7) Disclosure of excise tax registration information
To the extent the Secretary determines that disclosure is necessary to permit the effective administration of subtitle D, the Secretary may disclose—
(A) the name, address, and registration number of each person who is registered under any provision of subtitle D (and, in the case of a registered terminal operator, the address of each terminal operated by such operator), and
(B) the registration status of any person.
(8) Levies on certain government payments
(A) Disclosure of return information in levies on Financial Management Service
In serving a notice of levy, or release of such levy, with respect to any applicable government payment, the Secretary may disclose to officers and employees of the Financial Management Service—
(i) return information, including taxpayer identity information,
(ii) the amount of any unpaid liability under this title (including penalties and interest), and
(iii) the type of tax and tax period to which such unpaid liability relates.
(B) Restriction on use of disclosed information
Return information disclosed under subparagraph (A) may be used by officers and employees of the Financial Management Service only for the purpose of, and to the extent necessary in, transferring levied funds in satisfaction of the levy, maintaining appropriate agency records in regard to such levy or the release thereof, notifying the taxpayer and the agency certifying such payment that the levy has been honored, or in the defense of any litigation ensuing from the honor of such levy.
(C) Applicable government payment
For purposes of this paragraph, the term "applicable government payment" means—
(i) any Federal payment (other than a payment for which eligibility is based on the income or assets (or both) of a payee) certified to the Financial Management Service for disbursement, and
(ii) any other payment which is certified to the Financial Management Service for disbursement and which the Secretary designates by published notice.
(9) Disclosure of information to administer section 6311
The Secretary may disclose returns or return information to financial institutions and others to the extent the Secretary deems necessary for the administration of section 6311. Disclosures of information for purposes other than to accept payments by checks or money orders shall be made only to the extent authorized by written procedures promulgated by the Secretary.
(10) Disclosure of certain returns and return information to certain prison officials
(A) In general
Under such procedures as the Secretary may prescribe, the Secretary may disclose to officers and employees of the Federal Bureau of Prisons and of any State agency charged with the responsibility for administration of prisons any returns or return information with respect to individuals incarcerated in Federal or State prison systems whom the Secretary has determined may have filed or facilitated the filing of a false or fraudulent return to the extent that the Secretary determines that such disclosure is necessary to permit effective Federal tax administration.
(B) Disclosure to contractor-run prisons
Under such procedures as the Secretary may prescribe, the disclosures authorized by subparagraph (A) may be made to contractors responsible for the operation of a Federal or State prison on behalf of such Bureau or agency.
(C) Restrictions on use of disclosed information
Any return or return information received under this paragraph shall be used only for the purposes of and to the extent necessary in taking administrative action to prevent the filing of false and fraudulent returns, including administrative actions to address possible violations of administrative rules and regulations of the prison facility and in administrative and judicial proceedings arising from such administrative actions.
(D) Restrictions on redisclosure and disclosure to legal representatives
Notwithstanding subsection (h)—
(i) Restrictions on redisclosure
Except as provided in clause (ii), any officer, employee, or contractor of the Federal Bureau of Prisons or of any State agency charged with the responsibility for administration of prisons shall not disclose any information obtained under this paragraph to any person other than an officer or employee or contractor of such Bureau or agency personally and directly engaged in the administration of prison facilities on behalf of such Bureau or agency.
(ii) Disclosure to legal representatives
The returns and return information disclosed under this paragraph may be disclosed to the duly authorized legal representative of the Federal Bureau of Prisons, State agency, or contractor charged with the responsibility for administration of prisons, or of the incarcerated individual accused of filing the false or fraudulent return who is a party to an action or proceeding described in subparagraph (C), solely in preparation for, or for use in, such action or proceeding.
(11) Disclosure of return information to Department of State for purposes of passport revocation under section 7345
(A) In general
The Secretary shall, upon receiving a certification described in section 7345, disclose to the Secretary of State return information with respect to a taxpayer who has a seriously delinquent tax debt described in such section. Such return information shall be limited to—
(i) the taxpayer identity information with respect to such taxpayer, and
(ii) the amount of such seriously delinquent tax debt.
(B) Restriction on disclosure
Return information disclosed under subparagraph (A) may be used by officers and employees of the Department of State for the purposes of, and to the extent necessary in, carrying out the requirements of section 32101 of the FAST Act.
(12) Qualified tax collection contractors
Persons providing services pursuant to a qualified tax collection contract under section 6306 may, if speaking to a person who has identified himself or herself as having the name of the taxpayer to which a tax receivable (within the meaning of such section) relates, identify themselves as contractors of the Internal Revenue Service and disclose the business name of the contractor, and the nature, subject, and reason for the contact. Disclosures under this paragraph shall be made only in such situations and under such conditions as have been approved by the Secretary.
(13) Disclosure to whistleblowers
(A) In general
The Secretary may disclose, to any individual providing information relating to any purpose described in paragraph (1) or (2) of section 7623(a), return information related to the investigation of any taxpayer with respect to whom the individual has provided such information, but only to the extent that such disclosure is necessary in obtaining information, which is not otherwise reasonably available, with respect to the correct determination of tax liability for tax, or the amount to be collected with respect to the enforcement of any other provision of this title.
(B) Updates on whistleblower investigations
The Secretary shall disclose to an individual providing information relating to any purpose described in paragraph (1) or (2) of section 7623(a) the following:
(i) Not later than 60 days after a case for which the individual has provided information has been referred for an audit or examination, a notice with respect to such referral.
(ii) Not later than 60 days after a taxpayer with respect to whom the individual has provided information has made a payment of tax with respect to tax liability to which such information relates, a notice with respect to such payment.
(iii) Subject to such requirements and conditions as are prescribed by the Secretary, upon a written request by such individual—
(I) information on the status and stage of any investigation or action related to such information, and
(II) in the case of a determination of the amount of any award under section 7623(b), the reasons for such determination.
Clause (iii) shall not apply to any information if the Secretary determines that disclosure of such information would seriously impair Federal tax administration. Information described in clauses (i), (ii), and (iii) may be disclosed to a designee of the individual providing such information in accordance with guidance provided by the Secretary.
(14) Disclosure of return information for purposes of cybersecurity and the prevention of identity theft tax refund fraud
(A) In general
Under such procedures and subject to such conditions as the Secretary may prescribe, the Secretary may disclose specified return information to specified ISAC participants to the extent that the Secretary determines such disclosure is in furtherance of effective Federal tax administration relating to the detection or prevention of identity theft tax refund fraud, validation of taxpayer identity, authentication of taxpayer returns, or detection or prevention of cybersecurity threats.
(B) Specified ISAC participants
For purposes of this paragraph—
(i) In general
The term "specified ISAC participant" means—
(I) any person designated by the Secretary as having primary responsibility for a function performed with respect to the information sharing and analysis center described in section 2003(a) of the Taxpayer First Act, and
(II) any person subject to the requirements of section 7216 and which is a participant in such information sharing and analysis center.
(ii) Information sharing agreement
Such term shall not include any person unless such person has entered into a written agreement with the Secretary setting forth the terms and conditions for the disclosure of information to such person under this paragraph, including requirements regarding the protection and safeguarding of such information by such person.
(C) Specified return information
For purposes of this paragraph, the term "specified return information" means—
(i) in the case of a return which is in connection with a case of potential identity theft refund fraud—
(I) in the case of such return filed electronically, the internet protocol address, device identification, email domain name, speed of completion, method of authentication, refund method, and such other return information related to the electronic filing characteristics of such return as the Secretary may identify for purposes of this subclause, and
(II) in the case of such return prepared by a tax return preparer, identifying information with respect to such tax return preparer, including the preparer taxpayer identification number and electronic filer identification number of such preparer,
(ii) in the case of a return which is in connection with a case of a identity theft refund fraud which has been confirmed by the Secretary (pursuant to such procedures as the Secretary may provide), the information referred to in subclauses (I) and (II) of clause (i), the name and taxpayer identification number of the taxpayer as it appears on the return, and any bank account and routing information provided for making a refund in connection with such return, and
(iii) in the case of any cybersecurity threat to the Internal Revenue Service, information similar to the information described in subclauses (I) and (II) of clause (i) with respect to such threat.
(D) Restriction on use of disclosed information
(i) Designated third parties
Any return information received by a person described in subparagraph (B)(i)(I) shall be used only for the purposes of and to the extent necessary in—
(I) performing the function such person is designated to perform under such subparagraph,
(II) facilitating disclosures authorized under subparagraph (A) to persons described in subparagraph (B)(i)(II), and
(III) facilitating disclosures authorized under subsection (d) to participants in such information sharing and analysis center.
(ii) Return preparers
Any return information received by a person described in subparagraph (B)(i)(II) shall be treated for purposes of section 7216 as information furnished to such person for, or in connection with, the preparation of a return of the tax imposed under
(E) Data protection and safeguards
Return information disclosed under this paragraph shall be subject to such protections and safeguards as the Secretary may require in regulations or other guidance or in the written agreement referred to in subparagraph (B)(ii). Such written agreement shall include a requirement that any unauthorized access to information disclosed under this paragraph, and any breach of any system in which such information is held, be reported to the Treasury Inspector General for Tax Administration.
(15) Disclosures to Social Security Administration to identify tax receivables not eligible for collection pursuant to qualified tax collection contracts
In the case of any individual involved with a tax receivable which the Secretary has identified for possible collection pursuant to a qualified tax collection contract (as defined in section 6306(b)), the Secretary may disclose the taxpayer identity and date of birth of such individual to officers, employees, and contractors of the Social Security Administration to determine if such tax receivable is not eligible for collection pursuant to such a qualified tax collection contract by reason of section 6306(d)(3)(E).
(l) Disclosure of returns and return information for purposes other than tax administration
(1) Disclosure of certain returns and return information to Social Security Administration and Railroad Retirement Board
The Secretary may, upon written request, disclose returns and return information with respect to—
(A) taxes imposed by chapters 2, 21, and 24, to the Social Security Administration for purposes of its administration of the Social Security Act;
(B) a plan to which part I of subchapter D of
(C) taxes imposed by
(2) Disclosure of returns and return information to the Department of Labor and Pension Benefit Guaranty Corporation
The Secretary may, upon written request, furnish returns and return information to the proper officers and employees of the Department of Labor and the Pension Benefit Guaranty Corporation for purposes of, but only to the extent necessary in, the administration of titles I and IV of the Employee Retirement Income Security Act of 1974.
(3) Disclosure that applicant for Federal loan has tax delinquent account
(A) In general
Upon written request, the Secretary may disclose to the head of the Federal agency administering any included Federal loan program whether or not an applicant for a loan under such program has a tax delinquent account.
(B) Restriction on disclosure
Any disclosure under subparagraph (A) shall be made only for the purpose of, and to the extent necessary in, determining the creditworthiness of the applicant for the loan in question.
(C) Included Federal loan program defined
For purposes of this paragraph, the term "included Federal loan program" means any program under which the United States or a Federal agency makes, guarantees, or insures loans.
(4) Disclosure of returns and return information for use in personnel or claimant representative matters
The Secretary may disclose returns and return information—
(A) upon written request—
(i) to an employee or former employee of the Department of the Treasury, or to the duly authorized legal representative of such employee or former employee, who is or may be a party to any administrative action or proceeding affecting the personnel rights of such employee or former employee; or
(ii) to any person, or to the duly authorized legal representative of such person, whose rights are or may be affected by an administrative action or proceeding under
solely for use in the action or proceeding, or in preparation for the action or proceeding, but only to the extent that the Secretary determines that such returns or return information is or may be relevant and material to the action or proceeding; or
(B) to officers and employees of the Department of the Treasury for use in any action or proceeding described in subparagraph (A), or in preparation for such action or proceeding, to the extent necessary to advance or protect the interests of the United States.
(5) Social Security Administration
Upon written request by the Commissioner of Social Security, the Secretary may disclose information returns filed pursuant to part III of subchapter A of
(A) carrying out, in accordance with an agreement entered into pursuant to section 232 of the Social Security Act, an effective return processing program; or
(B) providing information regarding the mortality status of individuals for epidemiological and similar research in accordance with section 1106(d) of the Social Security Act.
(6) Disclosure of return information to Federal, State, tribal, and local child support enforcement agencies
(A) Return information from Internal Revenue Service
The Secretary may, upon written request, disclose to the appropriate Federal, State, tribal, or local child support enforcement agency—
(i) available return information from the master files of the Internal Revenue Service relating to the social security account number (or numbers, if the individual involved has more than one such number), address, filing status, amounts and nature of income, and the number of dependents reported on any return filed by, or with respect to, any individual with respect to whom child support obligations are sought to be established or enforced pursuant to the provisions of part D of title IV of the Social Security Act and with respect to any individual to whom such support obligations are owing, and
(ii) available return information reflected on any return filed by, or with respect to, any individual described in clause (i) relating to the amount of such individual's gross income (as defined in section 61) or consisting of the names and addresses of payors of such income and the names of any dependents reported on such return, but only if such return information is not reasonably available from any other source.
(B) Disclosure to certain agents
The information disclosed to any child support enforcement agency under subparagraph (A) with respect to any individual with respect to whom child support obligations are sought to be established or enforced may be disclosed by such agency to any agent of such agency which is under contract with such agency to carry out the purposes described in subparagraph (C).
(C) Restriction on disclosure
Information may be disclosed under this paragraph only for purposes of, and to the extent necessary in, establishing and collecting child support obligations from, and locating, individuals owing such obligations.
(D) State, tribal, or local child support enforcement agency
For purposes of this paragraph, the following shall be treated as a State, tribal, or local child support enforcement agency:
(i) Any agency of a State or political subdivision thereof operating pursuant to a plan described in section 454 of the Social Security Act which has been approved by the Secretary of Health and Human Services under part D of title IV of such Act.
(ii) Any child support enforcement agency of an Indian tribe or tribal organization receiving a grant under section 455(f) of the Social Security Act.
(7) Disclosure of return information to Federal, State, and local agencies administering certain programs under the Social Security Act, the Food and Nutrition Act of 2008, or title 38, United States Code , or certain housing assistance programs
(A) Return information from Social Security Administration
The Commissioner of Social Security shall, upon written request, disclose return information from returns with respect to net earnings from self-employment (as defined in section 1402), wages (as defined in section 3121(a) or 3401(a)), and payments of retirement income, which have been disclosed to the Social Security Administration as provided by paragraph (1) or (5) of this subsection, to any Federal, State, or local agency administering a program listed in subparagraph (D).
(B) Return information from Internal Revenue Service
The Secretary shall, upon written request, disclose current return information from returns with respect to unearned income from the Internal Revenue Service files to any Federal, State, or local agency administering a program listed in subparagraph (D).
(C) Restriction on disclosure
The Commissioner of Social Security and the Secretary shall disclose return information under subparagraphs (A) and (B) only for purposes of, and to the extent necessary in, determining eligibility for, or the correct amount of, benefits under a program listed in subparagraph (D).
(D) Programs to which rule applies
The programs to which this paragraph applies are:
(i) a State program funded under part A of title IV of the Social Security Act;
(ii) medical assistance provided under a State plan approved under title XIX of the Social Security Act or subsidies provided under section 1860D–14 of such Act;
(iii) supplemental security income benefits provided under title XVI of the Social Security Act, and federally administered supplementary payments of the type described in section 1616(a) of such Act (including payments pursuant to an agreement entered into under section 212(a) of
(iv) any benefits provided under a State plan approved under title I, X, XIV, or XVI of the Social Security Act (as those titles apply to Puerto Rico, Guam, and the Virgin Islands);
(v) unemployment compensation provided under a State law described in
(vi) assistance provided under the Food and Nutrition Act of 2008;
(vii) State-administered supplementary payments of the type described in section 1616(a) of the Social Security Act (including payments pursuant to an agreement entered into under section 212(a) of
(viii)(I) any needs-based pension provided under
(II) parents' dependency and indemnity compensation provided under
(III) health-care services furnished under sections 1710(a)(2)(G), 1710(a)(3), and 1710(b) of such title; and
(IV) compensation paid under
(ix) any housing assistance program administered by the Department of Housing and Urban Development that involves initial and periodic review of an applicant's or participant's income, except that return information may be disclosed under this clause only on written request by the Secretary of Housing and Urban Development and only for use by officers and employees of the Department of Housing and Urban Development with respect to applicants for and participants in such programs.
Only return information from returns with respect to net earnings from self-employment and wages may be disclosed under this paragraph for use with respect to any program described in clause (viii)(IV).
(8) Disclosure of certain return information by Social Security Administration to Federal, State, tribal, and local child support enforcement agencies
(A) In general
Upon written request, the Commissioner of Social Security shall disclose directly to officers and employees of a Federal, State, tribal, or local child support enforcement agency return information from returns with respect to social security account numbers, net earnings from self-employment (as defined in section 1402), wages (as defined in section 3121(a) or 3401(a)), and payments of retirement income which have been disclosed to the Social Security Administration as provided by paragraph (1) or (5) of this subsection.
(B) Restriction on disclosure
The Commissioner of Social Security shall disclose return information under subparagraph (A) only for purposes of, and to the extent necessary in, establishing and collecting child support obligations from, and locating, individuals owing such obligations. For purposes of the preceding sentence, the term "child support obligations" only includes obligations which are being enforced pursuant to the provisions of part D of title IV of the Social Security Act. The information disclosed to any child support enforcement agency under subparagraph (A) with respect to any individual with respect to whom child support obligations are sought to be established or enforced may be disclosed by such agency to any agent of such agency which is under contract with such agency for purposes of, and to the extent necessary in, establishing and collecting child support obligations from, and locating, individuals owing such obligations.
(C) State, tribal, or local child support enforcement agency
For purposes of this paragraph, the term "State, tribal, or local child support enforcement agency" has the same meaning as when used in paragraph (6)(D).
(9) Disclosure of alcohol fuel producers to administrators of State alcohol laws
Notwithstanding any other provision of this section, the Secretary may disclose—
(A) the name and address of any person who is qualified to produce alcohol for fuel use under section 5181, and
(B) the location of any premises to be used by such person in producing alcohol for fuel,
to any State agency, body, or commission, or its legal representative, which is charged under the laws of such State with responsibility for administration of State alcohol laws solely for use in the administration of such laws.
(10) Disclosure of certain information to agencies requesting a reduction under subsection (c), (d), (e), or (f) of section 6402
(A) Return information from Internal Revenue Service
The Secretary may, upon receiving a written request, disclose to officers and employees of any agency seeking a reduction under subsection (c), (d), (e), or (f) of section 6402, to officers and employees of the Department of Labor for purposes of facilitating the exchange of data in connection with a notice submitted under subsection (f)(5)(C) of section 6402, and to officers and employees of the Department of the Treasury in connection with such reduction—
(i) taxpayer identity information with respect to the taxpayer against whom such a reduction was made or not made and with respect to any other person filing a joint return with such taxpayer,
(ii) the fact that a reduction has been made or has not been made under such subsection with respect to such taxpayer,
(iii) the amount of such reduction,
(iv) whether such taxpayer filed a joint return, and
(v) the fact that a payment was made (and the amount of the payment) to the spouse of the taxpayer on the basis of a joint return.
(B) Restriction on use of disclosed information
(i) Any officers and employees of an agency receiving return information under subparagraph (A) shall use such information only for the purposes of, and to the extent necessary in, establishing appropriate agency records, locating any person with respect to whom a reduction under subsection (c), (d), (e), or (f) of section 6402 is sought for purposes of collecting the debt with respect to which the reduction is sought, or in the defense of any litigation or administrative procedure ensuing from a reduction made under subsection (c), (d), (e), or (f) of section 6402.
(ii) Notwithstanding clause (i), return information disclosed to officers and employees of the Department of Labor may be accessed by agents who maintain and provide technological support to the Department of Labor's Interstate Connection Network (ICON) solely for the purpose of providing such maintenance and support.
(iii) The information disclosed to any child support enforcement agency under subparagraph (A) with respect to any individual with respect to whom child support obligations are sought to be established or enforced may be disclosed by such agency to any agent of such agency which is under contract with such agency for purposes of, and to the extent necessary in, establishing and collecting child support obligations from, and locating, individuals owing such obligations.
(11) Disclosure of return information to carry out Federal Employees' Retirement System
(A) In general
The Commissioner of Social Security shall, on written request, disclose to the Office of Personnel Management return information from returns with respect to net earnings from self-employment (as defined in section 1402), wages (as defined in section 3121(a) or 3401(a)), and payments of retirement income, which have been disclosed to the Social Security Administration as provided by paragraph (1) or (5).
(B) Restriction on disclosure
The Commissioner of Social Security shall disclose return information under subparagraph (A) only for purposes of, and to the extent necessary in, the administration of chapters 83 and 84 of
(12) Disclosure of certain taxpayer identity information for verification of employment status of medicare beneficiary and spouse of medicare beneficiary
(A) Return information from Internal Revenue Service
The Secretary shall, upon written request from the Commissioner of Social Security, disclose to the Commissioner available filing status and taxpayer identity information from the individual master files of the Internal Revenue Service relating to whether any medicare beneficiary identified by the Commissioner was a married individual (as defined in section 7703) for any specified year after 1986, and, if so, the name of the spouse of such individual and such spouse's TIN.
(B) Return information from Social Security Administration
The Commissioner of Social Security shall, upon written request from the Administrator of the Centers for Medicare & Medicaid Services, disclose to the Administrator the following information:
(i) The name and TIN of each medicare beneficiary who is identified as having received wages (as defined in section 3401(a)), above an amount (if any) specified by the Secretary of Health and Human Services, from a qualified employer in a previous year.
(ii) For each medicare beneficiary who was identified as married under subparagraph (A) and whose spouse is identified as having received wages, above an amount (if any) specified by the Secretary of Health and Human Services, from a qualified employer in a previous year—
(I) the name and TIN of the medicare beneficiary, and
(II) the name and TIN of the spouse.
(iii) With respect to each such qualified employer, the name, address, and TIN of the employer and the number of individuals with respect to whom written statements were furnished under section 6051 by the employer with respect to such previous year.
(C) Disclosure by Centers for Medicare & Medicaid Services
With respect to the information disclosed under subparagraph (B), the Administrator of the Centers for Medicare & Medicaid Services may disclose—
(i) to the qualified employer referred to in such subparagraph the name and TIN of each individual identified under such subparagraph as having received wages from the employer (hereinafter in this subparagraph referred to as the "employee") for purposes of determining during what period such employee or the employee's spouse may be (or have been) covered under a group health plan of the employer and what benefits are or were covered under the plan (including the name, address, and identifying number of the plan),
(ii) to any group health plan which provides or provided coverage to such an employee or spouse, the name of such employee and the employee's spouse (if the spouse is a medicare beneficiary) and the name and address of the employer, and, for the purpose of presenting a claim to the plan—
(I) the TIN of such employee if benefits were paid under title XVIII of the Social Security Act with respect to the employee during a period in which the plan was a primary plan (as defined in section 1862(b)(2)(A) of the Social Security Act), and
(II) the TIN of such spouse if benefits were paid under such title with respect to the spouse during such period, and
(iii) to any agent of such Administrator the information referred to in subparagraph (B) for purposes of carrying out clauses (i) and (ii) on behalf of such Administrator.
(D) Special rules
(i) Restrictions on disclosure
Information may be disclosed under this paragraph only for purposes of, and to the extent necessary in, determining the extent to which any medicare beneficiary is covered under any group health plan.
(ii) Timely response to requests
Any request made under subparagraph (A) or (B) shall be complied with as soon as possible but in no event later than 120 days after the date the request was made.
(E) Definitions
For purposes of this paragraph—
(i) Medicare beneficiary
The term "medicare beneficiary" means an individual entitled to benefits under part A, or enrolled under part B, of title XVIII of the Social Security Act, but does not include such an individual enrolled in part A under section 1818.
(ii) Group health plan
The term "group health plan" means any group health plan (as defined in section 5000(b)(1)).
(iii) Qualified employer
The term "qualified employer" means, for a calendar year, an employer which has furnished written statements under section 6051 with respect to at least 20 individuals for wages paid in the year.
(13) Disclosure of return information to carry out the Higher Education Act of 1965
(A) Applications and recertifications for income-contingent or income-based repayment
The Secretary shall, upon written request from the Secretary of Education, disclose to any authorized person, only for the purpose of (and to the extent necessary in) determining eligibility for, or repayment obligations under, income-contingent or income-based repayment plans under title IV of the Higher Education Act of 1965 with respect to loans under part D of such title, the following return information from returns (for any taxable year specified by the Secretary of Education as relevant to such purpose) of an individual certified by the Secretary of Education as having provided approval under section 494(a)(2) of such Act (as in effect on the date of enactment of this paragraph) for such disclosure:
(i) Taxpayer identity information.
(ii) Filing status.
(iii) Adjusted gross income.
(iv) Total number of exemptions claimed, if applicable.
(v) Number of dependents taken into account in determining the credit allowed under section 24.
(vi) If applicable, the fact that there was no return filed.
(B) Discharge of loan based on total and permanent disability
The Secretary shall, upon written request from the Secretary of Education, disclose to any authorized person, only for the purpose of (and to the extent necessary in) monitoring and reinstating loans under title IV of the Higher Education Act of 1965 that were discharged based on a total and permanent disability (within the meaning of section 437(a) of such Act), the following return information from returns (for any taxable year specified by the Secretary of Education as relevant to such purpose) of an individual certified by the Secretary of Education as having provided approval under section 494(a)(3) of such Act (as in effect on the date of enactment of this paragraph) for such disclosure:
(i) The return information described in clauses (i), (ii), and (vi) of subparagraph (A).
(ii) The return information described in subparagraph (C)(ii).
(C) Federal student financial aid
The Secretary shall, upon written request from the Secretary of Education, disclose to any authorized person, only for the purpose of (and to the extent necessary in) determining eligibility for, and amount of, Federal student financial aid under a program authorized under subpart 1 of part A, part C, or part D of title IV of the Higher Education Act of 1965 the following return information from returns (for the taxable year used for purposes of section 480(a) of such Act) of an individual certified by the Secretary of Education as having provided approval under section 494(a)(1) of such Act (as in effect on the date of enactment of this paragraph) for such disclosure:
(i) Return information described in clauses (i) through (vi) of subparagraph (A).
(ii) The amount of any net earnings from self-employment (as defined in section 1402(a)), wages (as defined in section 3121(a) or 3401(a)), and taxable income from a farming business (as defined in section 263A(e)(4)).
(iii) Amount of total income tax.
(iv) Amount of any credit allowed under section 25A.
(v) Amount of individual retirement account distributions not included in adjusted gross income.
(vi) Amount of individual retirement account contributions and payments to self-employed SEP, Keogh, and other qualified plans which were deducted from income.
(vii) Amount of tax-exempt interest received.
(viii) Amounts from retirement pensions and annuities not included in adjusted gross income.
(ix) If applicable, the fact that any of the following schedules (or equivalent successor schedules) were filed with the return:
(I) Schedule A.
(II) Schedule B.
(III) Schedule D.
(IV) Schedule E.
(V) Schedule F.
(VI) Schedule H.
(x) If applicable, the amount reported on Schedule C (or an equivalent successor schedule) as net profit or loss.
(D) Additional uses of disclosed information
(i) In general
In addition to the purposes for which information is disclosed under subparagraphs (A), (B), and (C), return information so disclosed may be used by an authorized person, with respect to income-contingent or income-based repayment plans, awards of Federal student financial aid under a program authorized under subpart 1 of part A, part C, or part D of title IV of the Higher Education Act of 1965, and discharges of loans based on a total and permanent disability (within the meaning of section 437(a) of such Act), for purposes of—
(I) reducing the net cost of improper payments under such plans, relating to such awards, or relating to such discharges,
(II) oversight activities by the Office of Inspector General of the Department of Education as authorized by the Inspector General Act of 1978, and
(III) conducting analyses and forecasts for estimating costs related to such plans, awards, or discharges.
(ii) Limitation
The purposes described in clause (i) shall not include the conduct of criminal investigations or prosecutions.
(iii) Redisclosure to institutions of higher education, State higher education agencies, and designated scholarship organizations
Authorized persons may redisclose return information received under subparagraph (C), solely for the use in the application, award, and administration of financial aid awarded by the Federal government or awarded by a person described in subclause (I), (II), or (III), to the following persons:
(I) An institution of higher education participating in a program under subpart 1 of part A, part C, or part D of title IV of the Higher Education Act of 1965.
(II) A State higher education agency.
(III) A scholarship organization which is an entity designated (prior to the date of the enactment of this clause) by the Secretary of Education under section 483(a)(3)(E) of such Act.
This clause shall only apply to the extent that the taxpayer with respect to whom the return information relates provides written consent for such redisclosure to the Secretary of Education. Under such terms and conditions as may be prescribed by the Secretary, after consultation with the Department of Education, an institution of higher education described in subclause (I) or a State higher education agency described in subclause (II) may designate a contractor of such institution or state agency to receive return information on behalf of such institution or state agency to administer aspects of the institution's or state agency's activities for the application, award, and administration of such financial aid.
(iv) Redisclosure to Office of Inspector General, independent auditors, and contractors
Any return information which is redisclosed under clause (iii)—
(I) may be further disclosed by persons described in subclauses (I), (II), or (III) of clause (iii) or persons designated in the last sentence of clause (iii) to the Office of Inspector General of the Department of Education and independent auditors conducting audits of such person's administration of the programs for which the return information was received, and
(II) may be further disclosed by persons described in subclauses (I), (II), or (III) of clause (iii) to contractors of such entities,
but only to the extent necessary in carrying out the purposes described in such clause (iii).
(v) Redisclosure to family members
In addition to the purposes for which information is disclosed and used under subparagraphs (A) and (C), or redisclosed under clause (iii), any return information so disclosed or redisclosed may be further disclosed to any individual certified by the Secretary of Education as having provided approval under paragraph (1) or (2) of section 494(a) of the Higher Education Act of 1965, as the case may be, for disclosure related to the income-contingent or income-based repayment plan under subparagraph (A) or the eligibility for, and amount of, Federal student financial aid described in subparagraph (C).
(vi) Redisclosure of FAFSA information
Return information received under subparagraph (C) may be redisclosed in accordance with subsection (c) of section 494 of the Higher Education Act of 1965 (as in effect on the date of enactment of the COVID-related Tax Relief Act of 2020) to carry out the purposes specified in such subsection.
(E) Authorized person
For purposes of this paragraph, the term "authorized person" means, with respect to information disclosed under subparagraph (A), (B), or (C), any person who—
(i) is an officer, employee, or contractor, of the Department of Education, and
(ii) is specifically authorized and designated by the Secretary of Education for purposes of such subparagraph (applied separately with respect to each such subparagraph).
(F) Joint returns
In the case of a joint return, any disclosure authorized under subparagraph (A), (B), or (C), and any redisclosure authorized under clause (iii), (iv) 2 (v), or (vi) of subparagraph (D), with respect to an individual shall be treated for purposes of this paragraph as applying with respect to the taxpayer.
(14) Disclosure of return information to United States Customs Service
The Secretary may, upon written request from the Commissioner of the United States Customs Service, disclose to officers and employees of the Department of the Treasury such return information with respect to taxes imposed by chapters 1 and 6 as the Secretary may prescribe by regulations, solely for the purpose of, and only to the extent necessary in—
(A) ascertaining the correctness of any entry in audits as provided for in section 509 of the Tariff Act of 1930 (
(B) other actions to recover any loss of revenue, or to collect duties, taxes, and fees, determined to be due and owing pursuant to such audits.
(15) Disclosure of returns filed under section 6050I
The Secretary may, upon written request, disclose to officers and employees of—
(A) any Federal agency,
(B) any agency of a State or local government, or
(C) any agency of the government of a foreign country,
information contained on returns filed under section 6050I. Any such disclosure shall be made on the same basis, and subject to the same conditions, as apply to disclosures of information on reports filed under
(16) Disclosure of return information for purposes of administering the District of Columbia Retirement Protection Act of 1997
(A) In general
Upon written request available return information (including such information disclosed to the Social Security Administration under paragraph (1) or (5) of this subsection), relating to the amount of wage income (as defined in section 3121(a) or 3401(a)), the name, address, and identifying number assigned under section 6109, of payors of wage income, taxpayer identity (as defined in section 6103(b)(6)), and the occupational status reflected on any return filed by, or with respect to, any individual with respect to whom eligibility for, or the correct amount of, benefits under the District of Columbia Retirement Protection Act of 1997, is sought to be determined, shall be disclosed by the Commissioner of Social Security, or to the extent not available from the Social Security Administration, by the Secretary, to any duly authorized officer or employee of the Department of the Treasury, or a Trustee or any designated officer or employee of a Trustee (as defined in the District of Columbia Retirement Protection Act of 1997), or any actuary engaged by a Trustee under the terms of the District of Columbia Retirement Protection Act of 1997, whose official duties require such disclosure, solely for the purpose of, and to the extent necessary in, determining an individual's eligibility for, or the correct amount of, benefits under the District of Columbia Retirement Protection Act of 1997.
(B) Disclosure for use in judicial or administrative proceedings
Return information disclosed to any person under this paragraph may be disclosed in a judicial or administrative proceeding relating to the determination of an individual's eligibility for, or the correct amount of, benefits under the District of Columbia Retirement Protection Act of 1997.
(17) Disclosure to National Archives and Records Administration
The Secretary shall, upon written request from the Archivist of the United States, disclose or authorize the disclosure of returns and return information to officers and employees of the National Archives and Records Administration for purposes of, and only to the extent necessary in, the appraisal of records for destruction or retention. No such officer or employee shall, except to the extent authorized by subsection (f), (i)(8), or (p), disclose any return or return information disclosed under the preceding sentence to any person other than to the Secretary, or to another officer or employee of the National Archives and Records Administration whose official duties require such disclosure for purposes of such appraisal.
(18) Disclosure of return information for purposes of carrying out a program for advance payment of credit for health insurance costs of eligible individuals
The Secretary may disclose to providers of health insurance for any certified individual (as defined in section 7527(c)) return information with respect to such certified individual only to the extent necessary to carry out the program established by section 7527 (relating to advance payment of credit for health insurance costs of eligible individuals).
(19) Disclosure of return information for purposes of providing transitional assistance under medicare discount card program
(A) In general
The Secretary, upon written request from the Secretary of Health and Human Services pursuant to carrying out section 1860D–31 of the Social Security Act, shall disclose to officers, employees, and contractors of the Department of Health and Human Services with respect to a taxpayer for the applicable year—
(i)(I) whether the adjusted gross income, as modified in accordance with specifications of the Secretary of Health and Human Services for purposes of carrying out such section, of such taxpayer and, if applicable, such taxpayer's spouse, for the applicable year, exceeds the amounts specified by the Secretary of Health and Human Services in order to apply the 100 and 135 percent of the poverty lines under such section, (II) whether the return was a joint return, and (III) the applicable year, or
(ii) if applicable, the fact that there is no return filed for such taxpayer for the applicable year.
(B) Definition of applicable year
For the purposes of this subsection, the term "applicable year" means the most recent taxable year for which information is available in the Internal Revenue Service's taxpayer data information systems, or, if there is no return filed for such taxpayer for such year, the prior taxable year.
(C) Restriction on use of disclosed information
Return information disclosed under this paragraph may be used only for the purposes of determining eligibility for and administering transitional assistance under section 1860D–31 of the Social Security Act.
(20) Disclosure of return information to carry out Medicare part B premium subsidy adjustment and part D base beneficiary premium increase
(A) In general
The Secretary shall, upon written request from the Commissioner of Social Security, disclose to officers, employees, and contractors of the Social Security Administration return information of a taxpayer whose premium (according to the records of the Secretary) may be subject to adjustment under section 1839(i) or increase under section 1860D–13(a)(7) of the Social Security Act. Such return information shall be limited to—
(i) taxpayer identity information with respect to such taxpayer,
(ii) the filing status of such taxpayer,
(iii) the adjusted gross income of such taxpayer,
(iv) the amounts excluded from such taxpayer's gross income under sections 135 and 911 to the extent such information is available,
(v) the interest received or accrued during the taxable year which is exempt from the tax imposed by
(vi) the amounts excluded from such taxpayer's gross income by sections 931 and 933 to the extent such information is available,
(vii) such other information relating to the liability of the taxpayer as is prescribed by the Secretary by regulation as might indicate in the case of a taxpayer who is an individual described in subsection (i)(4)(B)(iii) of section 1839 of the Social Security Act that the amount of the premium of the taxpayer under such section may be subject to adjustment under subsection (i) of such section or increase under section 1860D–13(a)(7) of such Act and the amount of such adjustment, and
(viii) the taxable year with respect to which the preceding information relates.
(B) Restriction on use of disclosed information
(i) In general
Return information disclosed under subparagraph (A) may be used by officers, employees, and contractors of the Social Security Administration only for the purposes of, and to the extent necessary in, establishing the appropriate amount of any premium adjustment under such section 1839(i) or increase under such section 1860D–13(a)(7) or for the purpose of resolving taxpayer appeals with respect to any such premium adjustment or increase.
(ii) Disclosure to other agencies
Officers, employees, and contractors of the Social Security Administration may disclose—
(I) the taxpayer identity information and the amount of the premium subsidy adjustment or premium increase with respect to a taxpayer described in subparagraph (A) to officers, employees, and contractors of the Centers for Medicare and Medicaid Services, to the extent that such disclosure is necessary for the collection of the premium subsidy amount or the increased premium amount,
(II) the taxpayer identity information and the amount of the premium subsidy adjustment or the increased premium amount with respect to a taxpayer described in subparagraph (A) to officers and employees of the Office of Personnel Management and the Railroad Retirement Board, to the extent that such disclosure is necessary for the collection of the premium subsidy amount or the increased premium amount,
(III) return information with respect to a taxpayer described in subparagraph (A) to officers and employees of the Department of Health and Human Services to the extent necessary to resolve administrative appeals of such premium subsidy adjustment or increased premium, and
(IV) return information with respect to a taxpayer described in subparagraph (A) to officers and employees of the Department of Justice for use in judicial proceedings to the extent necessary to carry out the purposes described in clause (i).
(21) Disclosure of return information to carry out eligibility requirements for certain programs
(A) In general
The Secretary, upon written request from the Secretary of Health and Human Services, shall disclose to officers, employees, and contractors of the Department of Health and Human Services return information of any taxpayer whose income is relevant in determining any premium tax credit under section 36B or any cost-sharing reduction under section 1402 of the Patient Protection and Affordable Care Act or eligibility for participation in a State medicaid program under title XIX of the Social Security Act, a State's children's health insurance program under title XXI of the Social Security Act, or a basic health program under section 1331 of Patient Protection and Affordable Care Act. Such return information shall be limited to—
(i) taxpayer identity information with respect to such taxpayer,
(ii) the filing status of such taxpayer,
(iii) the number of individuals for whom a deduction is allowed under section 151 with respect to the taxpayer (including the taxpayer and the taxpayer's spouse),
(iv) the modified adjusted gross income (as defined in section 36B) of such taxpayer and each of the other individuals included under clause (iii) who are required to file a return of tax imposed by
(v) such other information as is prescribed by the Secretary by regulation as might indicate whether the taxpayer is eligible for such credit or reduction (and the amount thereof), and
(vi) the taxable year with respect to which the preceding information relates or, if applicable, the fact that such information is not available.
(B) Information to exchange and State agencies
The Secretary of Health and Human Services may disclose to an Exchange established under the Patient Protection and Affordable Care Act or its contractors, or to a State agency administering a State program described in subparagraph (A) or its contractors, any inconsistency between the information provided by the Exchange or State agency to the Secretary and the information provided to the Secretary under subparagraph (A).
(C) Restriction on use of disclosed information
Return information disclosed under subparagraph (A) or (B) may be used by officers, employees, and contractors of the Department of Health and Human Services, an Exchange, or a State agency only for the purposes of, and to the extent necessary in—
(i) establishing eligibility for participation in the Exchange, and verifying the appropriate amount of, any credit or reduction described in subparagraph (A),
(ii) determining eligibility for participation in the State programs described in subparagraph (A).
(22) Disclosure of return information to Department of Health and Human Services for purposes of enhancing Medicare program integrity
(A) In general
The Secretary shall, upon written request from the Secretary of Health and Human Services, disclose to officers and employees of the Department of Health and Human Services return information with respect to a taxpayer who has applied to enroll, or reenroll, as a provider of services or supplier under the Medicare program under title XVIII of the Social Security Act. Such return information shall be limited to—
(i) the taxpayer identity information with respect to such taxpayer;
(ii) the amount of the delinquent tax debt owed by that taxpayer; and
(iii) the taxable year to which the delinquent tax debt pertains.
(B) Restriction on disclosure
Return information disclosed under subparagraph (A) may be used by officers and employees of the Department of Health and Human Services for the purposes of, and to the extent necessary in, establishing the taxpayer's eligibility for enrollment or reenrollment in the Medicare program, or in any administrative or judicial proceeding relating to, or arising from, a denial of such enrollment or reenrollment, or in determining the level of enhanced oversight to be applied with respect to such taxpayer pursuant to section 1866(j)(3) of the Social Security Act.
(C) Delinquent tax debt
For purposes of this paragraph, the term "delinquent tax debt" means an outstanding debt under this title for which a notice of lien has been filed pursuant to section 6323, but the term does not include a debt that is being paid in a timely manner pursuant to an agreement under section 6159 or 7122, or a debt with respect to which a collection due process hearing under section 6330 is requested, pending, or completed and no payment is required.
(m) Disclosure of taxpayer identity information
(1) Tax refunds
The Secretary may disclose taxpayer identity information to the press and other media for purposes of notifying persons entitled to tax refunds when the Secretary, after reasonable effort and lapse of time, has been unable to locate such persons.
(2) Federal claims
(A) In general
Except as provided in subparagraph (B), the Secretary may, upon written request, disclose the mailing address of a taxpayer for use by officers, employees, or agents of a Federal agency for purposes of locating such taxpayer to collect or compromise a Federal claim against the taxpayer in accordance with
(B) Special rule for consumer reporting agency
In the case of an agent of a Federal agency which is a consumer reporting agency (within the meaning of section 603(f) of the Fair Credit Reporting Act (
(3) National Institute for Occupational Safety and Health
Upon written request, the Secretary may disclose the mailing address of taxpayers to officers and employees of the National Institute for Occupational Safety and Health solely for the purpose of locating individuals who are, or may have been, exposed to occupational hazards in order to determine the status of their health or to inform them of the possible need for medical care and treatment.
(4) Individuals who owe an overpayment of Federal Pell Grants or who have defaulted on student loans administered by the Department of Education
(A) In general
Upon written request by the Secretary of Education, the Secretary may disclose the mailing address of any taxpayer—
(i) who owes an overpayment of a grant awarded to such taxpayer under subpart 1 of part A of title IV of the Higher Education Act of 1965, or
(ii) who has defaulted on a loan—
(I) made under part B, D, or E of title IV of the Higher Education Act of 1965, or
(II) made pursuant to section 3(a)(1) of the Migration and Refugee Assistance Act of 1962 to a student at an institution of higher education,
for use only by officers, employees, or agents of the Department of Education for purposes of locating such taxpayer for purposes of collecting such overpayment or loan.
(B) Disclosure to educational institutions, etc.
Any mailing address disclosed under subparagraph (A)(i) may be disclosed by the Secretary of Education to—
(i) any lender, or any State or nonprofit guarantee agency, which is participating under part B or D of title IV of the Higher Education Act of 1965, or
(ii) any educational institution with which the Secretary of Education has an agreement under subpart 1 of part A, or part D or E, of title IV of such Act,
for use only by officers, employees, or agents of such lender, guarantee agency, or institution whose duties relate to the collection of student loans for purposes of locating individuals who have defaulted on student loans made under such loan programs for purposes of collecting such loans.
(5) Individuals who have defaulted on student loans administered by the Department of Health and Human Services
(A) In general
Upon written request by the Secretary of Health and Human Services, the Secretary may disclose the mailing address of any taxpayer who has defaulted on a loan made under part C 1 of title VII of the Public Health Service Act or under subpart II of part B of title VIII of such Act, for use only by officers, employees, or agents of the Department of Health and Human Services for purposes of locating such taxpayer for purposes of collecting such loan.
(B) Disclosure to schools and eligible lenders
Any mailing address disclosed under subparagraph (A) may be disclosed by the Secretary of Health and Human Services to—
(i) any school with which the Secretary of Health and Human Services has an agreement under subpart II 1 of part C of title VII of the Public Health Service Act or subpart II 1 of part B of title VIII of such Act, or
(ii) any eligible lender (within the meaning of section 737(4) 1 of such Act) participating under subpart I 1 of part C of title VII of such Act,
for use only by officers, employees, or agents of such school or eligible lender whose duties relate to the collection of student loans for purposes of locating individuals who have defaulted on student loans made under such subparts for the purposes of collecting such loans.
(6) Blood Donor Locator Service
(A) In general
Upon written request pursuant to section 1141 of the Social Security Act, the Secretary shall disclose the mailing address of taxpayers to officers and employees of the Blood Donor Locator Service in the Department of Health and Human Services.
(B) Restriction on disclosure
The Secretary shall disclose return information under subparagraph (A) only for purposes of, and to the extent necessary in, assisting under the Blood Donor Locator Service authorized persons (as defined in section 1141(h)(1) of the Social Security Act) in locating blood donors who, as indicated by donated blood or products derived therefrom or by the history of the subsequent use of such blood or blood products, have or may have the virus for acquired immune deficiency syndrome, in order to inform such donors of the possible need for medical care and treatment.
(C) Safeguards
The Secretary shall destroy all related blood donor records (as defined in section 1141(h)(2) of the Social Security Act) in the possession of the Department of the Treasury upon completion of their use in making the disclosure required under subparagraph (A), so as to make such records undisclosable.
(7) Social security account statement furnished by Social Security Administration
Upon written request by the Commissioner of Social Security, the Secretary may disclose the mailing address of any taxpayer who is entitled to receive a social security account statement pursuant to section 1143(c) of the Social Security Act, for use only by officers, employees or agents of the Social Security Administration for purposes of mailing such statement to such taxpayer.
(n) Certain other persons
Pursuant to regulations prescribed by the Secretary, returns and return information may be disclosed to any person, including any person described in section 7513(a), to the extent necessary in connection with the processing, storage, transmission, and reproduction of such returns and return information, the programming, maintenance, repair, testing, and procurement of equipment, and the providing of other services, for purposes of tax administration.
(o) Disclosure of returns and return information with respect to certain taxes
(1) Taxes imposed by subtitle E
(A) In general
Returns and return information with respect to taxes imposed by subtitle E (relating to taxes on alcohol, tobacco, and firearms) shall be open to inspection by or disclosure to officers and employees of a Federal agency whose official duties require such inspection or disclosure.
(B) Use in certain proceedings
Returns and return information disclosed to a Federal agency under subparagraph (A) may be used in an action or proceeding (or in preparation for such action or proceeding) brought under section 625 of the American Jobs Creation Act of 2004 for the collection of any unpaid assessment or penalty arising under such Act.
(2) Taxes imposed by chapter 35
Returns and return information with respect to taxes imposed by
(3) Taxes imposed by section 4481
Returns and return information with respect to taxes imposed by section 4481 shall be open to inspection by or disclosure to officers and employees of United States Customs and Border Protection of the Department of Homeland Security whose official duties require such inspection or disclosure for purposes of administering such section.
(p) Procedure and recordkeeping
(1) Manner, time, and place of inspections
Requests for the inspection or disclosure of a return or return information and such inspection or disclosure shall be made in such manner and at such time and place as shall be prescribed by the Secretary.
(2) Procedure
(A) Reproduction of returns
A reproduction or certified reproduction of a return shall, upon written request, be furnished to any person to whom disclosure or inspection of such return is authorized under this section. A reasonable fee may be prescribed for furnishing such reproduction or certified reproduction.
(B) Disclosure of return information
Return information disclosed to any person under the provisions of this title may be provided in the form of written documents, reproductions of such documents, films or photoimpressions, or electronically produced tapes, disks, or records, or by any other mode or means which the Secretary determines necessary or appropriate. A reasonable fee may be prescribed for furnishing such return information.
(C) Use of reproductions
Any reproduction of any return, document, or other matter made in accordance with this paragraph shall have the same legal status as the original, and any such reproduction shall, if properly authenticated, be admissible in evidence in any judicial or administrative proceeding as if it were the original, whether or not the original is in existence.
(3) Records of inspection and disclosure
(A) System of recordkeeping
Except as otherwise provided by this paragraph, the Secretary shall maintain a permanent system of standardized records or accountings of all requests for inspection or disclosure of returns and return information (including the reasons for and dates of such requests) and of returns and return information inspected or disclosed under this section and section 6104(c). Notwithstanding the provisions of
(B) Report by the Secretary
The Secretary shall, within 90 days after the close of each calendar year, furnish to the Joint Committee on Taxation a report with respect to, or summary of, the records or accountings described in subparagraph (A) in such form and containing such information as such joint committee or the Chief of Staff of such joint committee may designate. Such report or summary shall not, however, include a record or accounting of any request by the President under subsection (g) for, or the disclosure in response to such request of, any return or return information with respect to any individual who, at the time of such request, was an officer or employee of the executive branch of the Federal Government. Such report or summary, or any part thereof, may be disclosed by such joint committee to such persons and for such purposes as the joint committee may, by record vote of a majority of the members of the joint committee, determine.
(C) Public report on disclosures
The Secretary shall, within 90 days after the close of each calendar year, furnish to the Joint Committee on Taxation for disclosure to the public a report with respect to the records or accountings described in subparagraph (A) which—
(i) provides with respect to each Federal agency, each agency, body, or commission described in subsection (d), (i)(3)(B)(i) or (7)(A)(ii), or (l)(6), and the Government Accountability Office the number of—
(I) requests for disclosure of returns and return information,
(II) instances in which returns and return information were disclosed pursuant to such requests or otherwise,
(III) taxpayers whose returns, or return information with respect to whom, were disclosed pursuant to such requests, and
(ii) describes the general purposes for which such requests were made.
(4) Safeguards
Any Federal agency described in subsection (h)(2), (h)(5), (i)(1), (2), (3), (5), or (7), (j)(1), (2), or (5), (k)(8), (10), (11), or (15), (l)(1), (2), (3), (5), (10), (11), (13)(A), (13)(B), (13)(C), (13)(D)(i), (14), (17), or (22), (o)(1)(A), or (o)(3), the Government Accountability Office, the Congressional Budget Office, or any agency, body, or commission described in subsection (d), (i)(1)(C), (3)(B)(i), or (7)(A)(ii), or (k)(10), (l)(6), (7), (8), (9), (12), (15), or (16), any appropriate State officer (as defined in section 6104(c)), or any other person described in subsection (k)(10) or (15), subsection (l)(6), (8), (10), (13)(A), (13)(B), (13)(C), (13)(D)(i), (16), (18), (19), or (20), or any Indian tribe or tribal organization receiving a grant under section 455(f) of the Social Security Act, or any entity described in subsection (l)(21), shall, as a condition for receiving returns or return information—
(A) establish and maintain, to the satisfaction of the Secretary, a permanent system of standardized records with respect to any request, the reason for such request, and the date of such request made by or of it and any disclosure of return or return information made by or to it;
(B) establish and maintain, to the satisfaction of the Secretary, a secure area or place in which such returns or return information shall be stored;
(C) restrict, to the satisfaction of the Secretary, access to the returns or return information only to persons whose duties or responsibilities require access and to whom disclosure may be made under the provisions of this title;
(D) provide such other safeguards which the Secretary determines (and which he prescribes in regulations) to be necessary or appropriate to protect the confidentiality of the returns or return information;
(E) furnish a report to the Secretary, at such time and containing such information as the Secretary may prescribe, which describes the procedures established and utilized by such agency, body, or commission, the Government Accountability Office, or the Congressional Budget Office for ensuring the confidentiality of returns and return information required by this paragraph; and
(F) upon completion of use of such returns or return information—
(i) in the case of an agency, body, or commission described in subsection (d), (i)(3)(B)(i), (k)(10), or (l)(6), (7), (8), (9), or (16), any appropriate State officer (as defined in section 6104(c)), or any other person described in subsection (k)(10) or (15) or subsection (l)(6), (8), (10), (13)(A), (13)(B), (13)(C), (13)(D)(i), (16), (18), (19), or (20) return to the Secretary such returns or return information (along with any copies made therefrom) or make such returns or return information undisclosable in any manner and furnish a written report to the Secretary describing such manner,
(ii) in the case of an agency described in subsection (h)(2), (h)(5), (i)(1), (2), (3), (5) or (7), (j)(1), (2), or (5), (k)(8), (10), (11), or (15), (l)(1), (2), (3), (5), (10), (11), (12), (13)(A), (13)(B), (13)(C), (13)(D)(i), (14), (15), (17), or (22),,3 (o)(1)(A), or (o)(3) or any entity described in subsection (l)(21), the Government Accountability Office, or the Congressional Budget Office, either—
(I) return to the Secretary such returns or return information (along with any copies made therefrom),
(II) otherwise make such returns or return information undisclosable, or
(III) to the extent not so returned or made undisclosable, ensure that the conditions of subparagraphs (A), (B), (C), (D), and (E) of this paragraph continue to be met with respect to such returns or return information, and
(iii) in the case of the Department of Health and Human Services for purposes of subsection (m)(6), destroy all such return information upon completion of its use in providing the notification for which the information was obtained, so as to make such information undisclosable;
except that the conditions of subparagraphs (A), (B), (C), (D), and (E) shall cease to apply with respect to any return or return information if, and to the extent that, such return or return information is disclosed in the course of any judicial or administrative proceeding and made a part of the public record thereof. If the Secretary determines that any such agency, body, or commission, including an agency, an appropriate State officer (as defined in section 6104(c)), or any other person described in subsection (k)(10) or (15) or subsection (l)(6), (8), (10), (13)(A), (13)(B), (13)(C), (13)(D)(i), (16), (18), (19), or (20), or any Indian tribe or tribal organization receiving a grant under section 455(f) of the Social Security Act, or any entity described in subsection (l)(21), or the Government Accountability Office or the Congressional Budget Office, has failed to, or does not, meet the requirements of this paragraph, he may, after any proceedings for review established under paragraph (7), take such actions as are necessary to ensure such requirements are met, including refusing to disclose returns or return information to such agency, body, or commission, including an agency, an appropriate State officer (as defined in section 6104(c)), or any other person described in subsection (k)(10) or (15) or subsection (l)(6), (8), (10), (13)(A), (13)(B), (13)(C), (13)(D)(i), (16), (18), (19), or (20), or any Indian tribe or tribal organization receiving a grant under section 455(f) of the Social Security Act, or any entity described in subsection (l)(21), or the Government Accountability Office or the Congressional Budget Office, until he determines that such requirements have been or will be met. In the case of any agency which receives any mailing address under paragraph (2), (4), (6), or (7) of subsection (m) and which discloses any such mailing address to any agent or which receives any information under paragraph (6)(A), (8), (10), (12)(B), or (16) of subsection (l) and which discloses any such information to any agent, or any person including an agent described in subsection (l)(10), (13)(A), (13)(B), (13)(C), (13)(D)(i), or (16), this paragraph shall apply to such agency and each such agent or other person (except that, in the case of an agent, or any person including an agent described in subsection (l)(10), (13)(A), (13)(B), (13)(C), (13)(D)(i), or (16), any report to the Secretary or other action with respect to the Secretary shall be made or taken through such agency). For purposes of applying this paragraph in any case to which subsection (m)(6) applies, the term "return information" includes related blood donor records (as defined in section 1141(h)(2) of the Social Security Act).
(5) Report on procedures and safeguards
After the close of each calendar year, the Secretary shall furnish to each committee described in subsection (f)(1) a report which describes the procedures and safeguards established and utilized by such agencies, bodies, or commissions, the Government Accountability Office, and the Congressional Budget Office for ensuring the confidentiality of returns and return information as required by this subsection. Such report shall also describe instances of deficiencies in, and failure to establish or utilize, such procedures.
(6) Audit of procedures and safeguards
(A) Audit by Comptroller General
The Comptroller General may audit the procedures and safeguards established by such agencies, bodies, or commissions and the Congressional Budget Office pursuant to this subsection to determine whether such safeguards and procedures meet the requirements of this subsection and ensure the confidentiality of returns and return information. The Comptroller General shall notify the Secretary before any such audit is conducted.
(B) Records of inspection and reports by the Comptroller General
The Comptroller General shall—
(i) maintain a permanent system of standardized records and accountings of returns and return information inspected by officers and employees of the Government Accountability Office under subsection (i)(8)(A)(ii) and shall, within 90 days after the close of each calendar year, furnish to the Secretary a report with respect to, or summary of, such records or accountings in such form and containing such information as the Secretary may prescribe, and
(ii) furnish an annual report to each committee described in subsection (f) and to the Secretary setting forth his findings with respect to any audit conducted pursuant to subparagraph (A).
The Secretary may disclose to the Joint Committee any report furnished to him under clause (i).
(7) Administrative review
The Secretary shall by regulations prescribe procedures which provide for administrative review of any determination under paragraph (4) that any agency, body, or commission described in subsection (d) has failed to meet the requirements of such paragraph.
(8) State law requirements
(A) Safeguards
Notwithstanding any other provision of this section, no return or return information shall be disclosed after December 31, 1978, to any officer or employee of any State which requires a taxpayer to attach to, or include in, any State tax return a copy of any portion of his Federal return, or information reflected on such Federal return, unless such State adopts provisions of law which protect the confidentiality of the copy of the Federal return (or portion thereof) attached to, or the Federal return information reflected on, such State tax return.
(B) Disclosure of returns or return information in State returns
Nothing in subparagraph (A) or paragraph (9) shall be construed to prohibit the disclosure by an officer or employee of any State of any copy of any portion of a Federal return or any information on a Federal return which is required to be attached or included in a State return to another officer or employee of such State (or political subdivision of such State) if such disclosure is specifically authorized by State law.
(9) Disclosure to contractors and other agents
Notwithstanding any other provision of this section, no return or return information shall be disclosed to any contractor or other agent of a Federal, State, tribal, or local agency unless such agency, to the satisfaction of the Secretary—
(A) has requirements in effect which require each such contractor or other agent which would have access to returns or return information to provide safeguards (within the meaning of paragraph (4)) to protect the confidentiality of such returns or return information,
(B) agrees to conduct an on-site review every 3 years (or a mid-point review in the case of contracts or agreements of less than 3 years in duration) of each contractor or other agent to determine compliance with such requirements,
(C) submits the findings of the most recent review conducted under subparagraph (B) to the Secretary as part of the report required by paragraph (4)(E), and
(D) certifies to the Secretary for the most recent annual period that such contractor or other agent is in compliance with all such requirements.
The certification required by subparagraph (D) shall include the name and address of each contractor or other agent, a description of the contract or agreement with such contractor or other agent, and the duration of such contract or agreement. The requirements of this paragraph shall not apply to disclosures pursuant to subsection (n) for purposes of Federal tax administration.
(q) Regulations
The Secretary is authorized to prescribe such other regulations as are necessary to carry out the provisions of this section.
(Aug. 16, 1954, ch. 736,
Editorial Notes
References in Text
The Federal Rules of Criminal Procedure, referred to in subsecs. (h)(4)(D) and (i)(4)(A)(ii), are set out in the Appendix to Title 18, Crimes and Criminal Procedure.
Section 403 of the Missing Children's Assistance Act, referred to in subsec. (i)(1)(C)(iii), is section 403 of title IV of
Section 111 of the Sex Offender Registration and Notification Act, referred to in subsec. (i)(1)(C)(iv), is section 111 of title I of
The District of Columbia Retirement Protection Act of 1997, referred to in subsecs. (i)(7)(B)(i) and (l)(16), is subtitle A (§§11001–11087) of title XI of
The Census of Agriculture Act of 1997, referred to in subsec. (j)(5), is
Section 32101 of the FAST Act, referred to in subsec. (k)(11)(B), is section 32101 of
Section 2003(a) of the Taxpayer First Act, referred to in subsec. (k)(14)(B)(i)(I), is section 2003(a) of
The Social Security Act, referred to in subsecs. (l)(1)(A), (B), (5), (6)(A)(i), (D), (7), (8)(B), (12)(C)(ii)(I), (E)(i), (19)(A), (C), (20)(A), (B)(i), (21)(A), (22)(A), (B), (m)(6), (7), and (p)(4), is act Aug. 14, 1935, ch. 531,
The Railroad Retirement Act, referred to in subsec. (l)(1)(C), probably means the Railroad Retirement Act of 1974, which is act Aug. 29, 1935, ch. 812, as amended generally by
The Employee Retirement Income Security Act of 1974, referred to in subsec. (l)(2), is
Section 212(a) of
The Food and Nutrition Act of 2008, referred to in subsec. (l)(7)(D)(vi), is
The Higher Education Act of 1965, referred to in subsecs. (l)(13)(A)–(D) and (m)(4)(A)(i), (ii)(I), (B)(i), (ii), is
The date of enactment of this paragraph, referred to in subsec. (l)(13)(A)–(C), and the date of the enactment of this clause, referred to in subsec. (l)(13)(D)(iii)(III), is the date of the enactment of
The Inspector General Act of 1978, referred to in subsec. (l)(13)(D)(i)(II), is
The date of enactment of the COVID-related Tax Relief Act of 2020, referred to in subsec. (l)(13)(D)(vi), means the date of enactment of subtitle B (§271 et seq.) of title II of div. N of
The Patient Protection and Affordable Care Act, referred to in subsec. (l)(21)(A), (B), is
Section 3(a)(1) of the Migration and Refugee Assistance Act of 1962, referred to in subsec. (m)(4)(A)(ii)(II), is classified to
The Public Health Service Act, referred to in subsec. (m)(5), is act July 1, 1944, ch. 373,
The American Jobs Creation Act of 2004, referred to in subsec. (o)(1)(B), is
Codification
Section 1224(b)(1) to (3) of
Amendments
2025—Subsec. (a)(2).
Subsec. (a)(3).
Subsec. (l)(6).
Subsec. (l)(6)(A).
Subsec. (l)(6)(B).
"(i) The address and social security account number (or numbers) of such individual.
"(ii) The amount of any reduction under section 6402(c) (relating to offset of past-due support against overpayments) in any overpayment otherwise payable to such individual."
Subsec. (l)(6)(D).
Subsec. (l)(8).
Subsec. (l)(8)(A).
Subsec. (l)(8)(B).
Subsec. (l)(8)(C).
Subsec. (l)(10)(B)(iii).
Subsec. (p)(4).
Subsec. (p)(4)(F)(i).
Subsec. (p)(9).
2020—Subsec. (a)(3).
Subsec. (k)(15).
Subsec. (l)(13)(C)(ii).
Subsec. (l)(13)(D)(iii).
Subsec. (l)(13)(D)(iv) to (vi).
Subsec. (l)(13)(F).
Subsec. (p)(3)(A).
Subsec. (p)(4).
2019—Subsec. (a)(3).
Subsec. (c).
Subsec. (k)(6).
Subsec. (k)(13).
Subsec. (k)(14).
Subsec. (l)(13).
Subsec. (o)(3).
Subsec. (p)(3)(A).
Subsec. (p)(4).
Subsec. (p)(8)(B).
Subsec. (p)(9).
2018—Subsec. (l)(7).
Subsec. (l)(10)(A).
Subsec. (l)(10)(B).
Subsec. (l)(16)(A).
Subsec. (p)(3)(A).
Subsec. (p)(3)(C)(ii).
Subsec. (p)(4).
Subsec. (p)(4)(F)(ii).
2016—Subsec. (a)(2).
Subsec. (i)(1)(A)(i).
Subsec. (i)(1)(A)(iii).
Subsec. (i)(1)(B)(iii).
Subsec. (i)(1)(C).
Subsec. (p)(4).
2015—Subsec. (e)(11).
Subsec. (k)(11).
Subsec. (k)(12).
Subsec. (p)(4).
2013—Subsec. (a)(3).
Subsec. (k)(10).
Subsec. (p)(4).
Subsec. (p)(4)(F)(i).
2010—Subsec. (a)(3).
Subsec. (k)(10).
Subsec. (k)(10)(A).
Subsec. (k)(10)(B).
Subsec. (l)(20).
Subsec. (l)(20)(A).
Subsec. (l)(20)(A)(vii).
Subsec. (l)(20)(B).
Subsec. (l)(21).
Subsec. (l)(21)(A)(iv).
Subsec. (l)(22).
Subsec. (p)(4).
Subsec. (p)(4)(F)(ii).
2009—Subsec. (o)(1).
Subsec. (p)(4).
Subsec. (p)(4)(F)(ii).
2008—Subsec. (a)(3).
Subsec. (i)(3)(C)(iv).
Subsec. (i)(7)(E).
Subsec. (k)(10).
Subsec. (l)(7).
Subsec. (l)(7)(D)(vi).
Subsec. (l)(7)(D)(viii)(III).
Subsec. (l)(10).
Subsec. (l)(10)(A).
Subsec. (l)(10)(B).
Subsec. (p)(4).
Subsec. (p)(4)(F)(i).
Subsec. (p)(4)(F)(ii).
2007—Subsec. (b)(5)(A)(i).
Subsec. (e)(10).
Subsec. (k)(5).
2006—Subsec. (a)(2).
Subsec. (b)(5).
"(A) any of the 50 States, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, the Canal Zone, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands, and
"(B) for purposes of subsections (a)(2), (b)(4), (d)(1), (h)(4), and (p) any municipality—
"(i) with a population in excess of 250,000 (as determined under the most recent decennial United States census data available),
"(ii) which imposes a tax on income or wages, and
"(iii) with which the Secretary (in his sole discretion) has entered into an agreement regarding disclosure."
Subsec. (d)(5)(B).
Subsec. (d)(6).
Subsec. (i)(3)(C)(iv), (7)(E).
Subsec. (l)(13)(D).
Subsec. (p)(3)(A).
Subsec. (p)(4).
Subsec. (p)(4)(F)(i).
2005—Subsec. (d)(5)(B).
Subsec. (i)(3)(C)(iv).
Subsec. (i)(7)(E).
Subsec. (i)(8)(A), (B)(i), (ii).
Subsec. (l)(13)(D).
Subsec. (l)(17).
Subsec. (p)(3)(C)(i).
Subsec. (p)(4).
Subsec. (p)(4)(F)(i).
Subsec. (p)(5), (6)(B)(i).
2004—Subsec. (d)(5).
Subsec. (e)(1)(D)(iv) to (vi).
Subsec. (i)(3)(C)(iv).
Subsec. (i)(7)(A)(v).
Subsec. (i)(7)(E).
Subsec. (l)(13)(D).
Subsec. (p)(4).
2003—Subsec. (a)(3).
Subsec. (l)(7)(D)(ii).
Subsec. (l)(12)(B).
Subsec. (l)(12)(C).
Subsec. (l)(13)(D).
Subsec. (l)(19).
Subsec. (l)(20).
Subsec. (p)(4).
2002—Subsec. (a)(2).
Subsec. (b)(11).
Subsec. (i)(3).
Subsec. (i)(3)(C).
Subsec. (i)(4)(A).
Subsec. (i)(4)(B).
Subsec. (i)(6).
Subsec. (i)(7).
Subsec. (i)(8).
Subsec. (i)(8)(A)(i).
Subsec. (l)(7)(D).
Subsec. (l)(8).
Subsec. (l)(8)(A).
Subsec. (l)(18).
Subsec. (p)(3)(A).
Subsec. (p)(3)(C)(i).
Subsec. (p)(4).
Subsec. (p)(4)(F)(ii).
Subsec. (p)(6)(B)(i).
2000—Subsec. (b)(2)(D).
Subsec. (e)(1)(D)(v).
Subsec. (j)(6).
Subsec. (k)(6).
Subsec. (p)(4).
Subsec. (p)(4)(E).
Subsec. (p)(4)(F)(ii).
Subsec. (p)(5).
Subsec. (p)(6)(A).
1999—Subsec. (b)(2)(C).
1998—Subsec. (d)(5).
Subsec. (e)(1)(A)(ii) to (iv).
Subsec. (e)(6).
Subsec. (f)(5).
Subsec. (h)(4)(A).
Subsec. (h)(5).
Subsec. (h)(6).
Subsec. (j)(5).
Subsec. (k)(8), (9).
Subsec. (l)(10).
Subsec. (l)(13)(D).
Subsec. (l)(17).
Subsec. (p)(3)(A).
Subsec. (p)(4).
Subsec. (p)(4)(F)(ii).
1997—Subsec. (a)(3).
Subsec. (d)(5).
Subsec. (e)(1)(A)(iv).
Subsec. (h)(5), (6).
Subsec. (i)(7)(B)(i).
Subsec. (k)(8).
Subsec. (l)(7)(D).
Subsec. (l)(10).
Subsec. (l)(12)(F).
"(i) any request made after September 30, 1998, and
"(ii) any request made before such date for information relating to—
"(I) 1997 or thereafter in the case of subparagraph (A), or
"(II) 1998 or thereafter in the case of subparagraph (B)."
Subsec. (l)(16).
Subsec. (p)(3)(A).
Subsec. (p)(4).
Subsec. (p)(4)(F)(i).
1996—Subsec. (a)(3).
Subsec. (c).
Subsec. (e)(1)(A)(iv).
Subsec. (e)(8).
Subsec. (e)(9).
Subsec. (i)(8).
"(8)
Subsec. (l)(3)(C).
"(i) under which the United States or a Federal agency makes, guarantees, or insures loans, and
"(ii) with respect to which there is in effect a determination by the Director of the Office of Management and Budget (which has been published in the Federal Register) that the application of this paragraph to such program will substantially prevent or reduce future delinquencies under such program."
Subsec. (l)(6)(B).
Subsec. (l)(6)(C).
Subsec. (l)(7)(D)(i).
Subsec. (l)(10).
Subsec. (l)(10)(A).
Subsec. (l)(10)(B).
Subsec. (l)(15).
Subsec. (p)(3)(A).
Subsec. (p)(4).
Subsec. (p)(4)(F)(ii).
1994—Subsec. (l)(5).
1993—Subsec. (d)(4).
Subsec. (l)(7).
Subsec. (l)(7)(D).
Subsec. (l)(7)(D)(ix).
Subsec. (l)(12)(B)(i).
Subsec. (l)(12)(B)(ii).
Subsec. (l)(12)(E)(ii).
"(I) any group health plan (as defined in section 5000(b)(1)), and
"(II) any large group health plan (as defined in section 5000(b)(2))."
Subsec. (l)(12)(F)(i).
Subsec. (l)(12)(F)(ii)(I).
Subsec. (l)(12)(F)(ii)(II).
Subsec. (l)(13).
Subsec. (l)(14).
Subsec. (m)(4).
Subsec. (m)(4)(A).
"(i) made under part B or E of title IV of the Higher Education Act of 1965, or
"(ii) made pursuant to section 3(a)(1) of the Migration and Refugee Assistance Act of 1962 to a student at an institution of higher education,
for use only by officers, employees, or agents of the Department of Education for purposes of locating such taxpayer for purposes of collecting such loan."
Subsec. (m)(4)(B)(i).
Subsec. (m)(4)(B)(ii).
Subsec. (p)(3)(A).
Subsec. (p)(4).
Subsec. (p)(4)(F)(ii).
1992—Subsec. (l)(7)(D).
Subsec. (l)(7)(D)(viii)(II), (III).
1990—Subsec. (e)(1)(A)(iv).
Subsec. (k)(7).
Subsec. (l)(7).
Subsec. (l)(12)(F).
Subsec. (m)(7).
Subsec. (n).
Subsec. (p)(4).
1989—Subsec. (a)(3).
Subsec. (d)(1).
Subsec. (l)(12).
Subsec. (p)(3)(A).
Subsec. (p)(4).
Subsec. (p)(4)(F)(ii).
1988—Subsec. (b)(5)(A).
Subsec. (b)(5)(B)(i).
Subsec. (d).
Subsec. (d)(3).
Subsec. (e)(1)(A)(iv).
Subsec. (i)(8).
Subsec. (k)(4).
Subsec. (l)(10).
"(A)
"(i) the fact that a reduction has been made or has not been made under such subsection with respect to any person;
"(ii) the amount of such reduction; and
"(iii) taxpayer identifying information of the person against whom a reduction was made or not made.
"(B)
Subsec. (l)(11), (12).
Subsec. (m)(6).
Subsec. (p)(3)(A).
Subsec. (p)(4).
Subsec. (p)(4)(F)(i).
Subsec. (p)(4)(F)(ii).
Subsec. (p)(4)(F)(iii).
1986—Subsec. (b)(5).
Subsec. (b)(10).
Subsec. (e)(1)(A)(iv).
Subsec. (l)(7)(D)(v).
Subsec. (l)(12).
Subsec. (p)(3)(A).
Subsec. (p)(4).
Subsec. (p)(5).
1985—Subsec. (m)(4).
Subsec. (m)(5).
1984—Subsec. (a)(2).
Subsec. (d)(1).
Subsec. (l)(5).
Subsec. (l)(6)(A)(i).
Subsec. (l)(7).
Subsec. (l)(8).
Subsec. (l)(8)(A).
Subsec. (l)(9).
Subsec. (l)(10).
Subsec. (l)(11).
Subsec. (p)(3)(A).
Subsec. (p)(4).
Subsec. (p)(4)(F)(i).
Subsec. (p)(4)(F)(ii).
1983—Subsec. (h)(6).
Subsec. (m)(2).
Subsec. (p)(4).
Subsec. (p)(4)(F)(ii).
1982—Subsec. (a)(3).
Subsec. (i)(1) to (5).
Subsec. (i)(6).
Subsec. (i)(7).
Subsec. (l)(3).
Subsec. (l)(4)(A)(ii).
Subsec. (m)(2).
Subsec. (p)(3)(A).
Subsec. (p)(3)(C)(i).
Subsec. (p)(3)(C)(i)(II).
Subsec. (p)(4).
Subsec. (p)(6)(B)(i).
1981—Subsec. (b)(2).
1980—Subsec. (d).
Subsec. (e)(4).
Subsec. (e)(5).
Subsec. (e)(6).
Subsec. (e)(7).
Subsec. (l)(7).
Subsec. (l)(8).
Subsec. (m)(4)(A).
Subsec. (m)(4)(B).
Subsec. (p)(3)(A).
Subsec. (p)(4).
Subsec. (p)(4)(F)(i).
1978—Subsec. (a)(3).
Subsec. (d).
Subsec. (h)(2).
Subsec. (h)(2)(A).
Subsec. (h)(4)(A).
Subsec. (i)(2), (3).
Subsec. (k)(4).
Subsec. (m).
1977—Subsec. (m).
1976—
Subsec. (g).
1974—Subsec. (g).
1966—
1965—Subsec. (a)(2).
1964—Subsec. (a)(2).
Statutory Notes and Related Subsidiaries
Change of Name
Words "magistrate judge" substituted for "magistrate" wherever appearing in subsec. (i) pursuant to section 321 of
Effective Date of 2020 Amendment
Effective Date of 2019 Amendment
Effective Date of 2016 Amendment
Effective Date of 2015 Amendment
Effective Date of 2013 Amendment
Effective Date of 2010 Amendment
Effective Date of 2009 Amendment
Except as otherwise provided, amendment by
Effective Date of 2008 Amendment
Amendment by
Amendment of this section and repeal of
Amendment by section 4002(b)(1)(B), (H), (2)(O) of
Effective Date of 2007 Amendment
Amendment by
Effective Date of 2006 Amendment
Effective Date of 2005 Amendment
Effective Date of 2004 Amendments
Amendment by
"(1)
"(2)
Effective Date of 2003 Amendment
Effective Date of 2002 Amendments
Amendment by
Effective Date of 2000 Amendment
Amendment by section 1(a)(7) [title III, §304(a)] of
Amendment by section 1(a)(7) [title III, §313(c)] of
Effective Date of 1999 Amendment
Effective Date of 1998 Amendments
Amendment by section 4002(a), (h) of
Amendment by section 1101(b) of
Amendment by section 6023(22) of
Amendment by sections 6007(f)(4), 6009(d), and 6012(b)(2), (4) of
Effective Date of 1997 Amendments
Amendment by section 1201(b)(2) of
Amendment by section 5514(a)(1), (2) of
Amendment by section 11024(b)(1)–(7) of
Effective Date of 1996 Amendments
Amendment by section 110(l)(2), (4), (5) of
For effective date of amendment by section 316(g)(4) of
Effective Date of 1994 Amendment
Amendment by section 108(h)(6) of
Effective Date of 1993 Amendments
"(1)
"(2)
"(A) under the law of such State as in effect on the date of the enactment of this Act, it is impossible for such State to enter into an agreement meeting the requirements of section 6103(d)(4)(B) of the Internal Revenue Code of 1986 (as added by subsection (a)), and
"(B) it is likely that such State will enter into such an agreement during the extension period under this paragraph."
Effective Date of 1990 Amendment
[
Amendment by section 11101(d)(6) of
Amendment by section 11212(b)(3) of
Effective Date of 1989 Amendment
Effective Date of 1988 Amendments
Amendment by section 1014(e)(4) of
"(A)
"(B)
Effective Date of 1986 Amendment
Amendment by section 1411(b) of
Effective Date of 1985 Amendment
Amendment by
Effective Date of 1984 Amendments
Amendment by section 453(a)–(b)(3), (6) of
Amendment by section 2651(k) of
Amendment by section 2653(b)(3) of
Amendment by section 2663(j)(5)(E) of
Effective Date of 1983 Amendment
Amendment by
Effective Date of 1982 Amendments
Effective Date of 1981 Amendment
Effective Date of 1980 Amendments
Amendment by
Effective Date of 1978 Amendment
"(A) Except as provided in subparagraph (B), the amendments made by this subsection [amending this section and
"(B) The amendments made by paragraph (7) [amending
Effective Date of 1976 Amendment
Effective Date of 1974 Amendment
Effective Date of 1966 Amendment
Amendment by
Effective Date of 1965 Amendment
Regulations
Construction of 2002 Amendment
Nothing in amendment by
Transfer of Functions
For transfer of the functions, personnel, assets, and obligations of the United States Secret Service, including the functions of the Secretary of the Treasury relating thereto, to the Secretary of Homeland Security, and for treatment of related references, see
For transfer of functions, personnel, assets, and liabilities of the United States Customs Service of the Department of the Treasury, including functions of the Secretary of the Treasury relating thereto, to the Secretary of Homeland Security, and for treatment of related references, see
Requirement To Designate the Inspector General of the Department of Education as an Authorized Person
Report to Treasury
"(1) regarding redisclosures of return information under subparagraph (D)(iii) of section 6103(l)(13) of the Internal Revenue Code of 1986, including the number of such redisclosures; and
"(2) regarding any unauthorized use, access, or disclosure of return information disclosed under such section."
Report to Congress
Disclosure of Taxpayer Information for Third-Party Income Verification
"(a)
"(1) is fully automated and accomplished through the internet; and
"(2) is accomplished in as close to real-time as is practicable.
"(b)
"(c)
"(d)
"(1)
"(2)
Annual Report Regarding Advance Pricing Agreements
"(1)
"(2)
"(A) Information about the structure, composition, and operation of the advance pricing agreement program office.
"(B) A copy of each model advance pricing agreement.
"(C) The number of—
"(i) applications filed during such calendar year for advance pricing agreements;
"(ii) advance pricing agreements executed cumulatively to date and during such calendar year;
"(iii) renewals of advance pricing agreements issued;
"(iv) pending requests for advance pricing agreements;
"(v) pending renewals of advance pricing agreements;
"(vi) for each of the items in clauses (ii) through (v), the number that are unilateral, bilateral, and multilateral, respectively;
"(vii) advance pricing agreements revoked or canceled, and the number of withdrawals from the advance pricing agreement program; and
"(viii) advance pricing agreements finalized or renewed by industry.
"(D) General descriptions of—
"(i) the nature of the relationships between the related organizations, trades, or businesses covered by advance pricing agreements;
"(ii) the covered transactions and the business functions performed and risks assumed by such organizations, trades, or businesses;
"(iii) the related organizations, trades, or businesses whose prices or results are tested to determine compliance with transfer pricing methodologies prescribed in advance pricing agreements;
"(iv) methodologies used to evaluate tested parties and transactions and the circumstances leading to the use of those methodologies;
"(v) critical assumptions made and sources of comparables used;
"(vi) comparable selection criteria and the rationale used in determining such criteria;
"(vii) the nature of adjustments to comparables or tested parties;
"(viii) the nature of any ranges agreed to, including information regarding when no range was used and why, when interquartile ranges were used, and when there was a statistical narrowing of the comparables;
"(ix) adjustment mechanisms provided to rectify results that fall outside of the agreed upon advance pricing agreement range;
"(x) the various term lengths for advance pricing agreements, including rollback years, and the number of advance pricing agreements with each such term length;
"(xi) the nature of documentation required; and
"(xii) approaches for sharing of currency or other risks.
"(E) Statistics regarding the amount of time taken to complete new and renewal advance pricing agreements.
"(F) A detailed description of the Secretary of the Treasury's efforts to ensure compliance with existing advance pricing agreements.
"(3)
"(A) which would not be permitted to be disclosed under section 6110(c) of such Code if such report were a written determination as defined in section 6110 of such Code; or
"(B) which can be associated with, or otherwise identify, directly or indirectly, a particular taxpayer.
"(4)
Procedures for Authorizing Disclosure Electronically
Electronic Access to Account Information
"(a)
"(b)
Confidentiality of Tax Return Information
"(1) the present protections for taxpayer privacy;
"(2) any need for third parties to use tax return information;
"(3) whether greater levels of voluntary compliance may be achieved by allowing the public to know who is legally required to file tax returns, but does not file tax returns;
"(4) the interrelationship of the taxpayer confidentiality provisions in the Internal Revenue Code of 1986 with such provisions in other Federal law, including
"(5) the impact on taxpayer privacy of the sharing of income tax return information for purposes of enforcement of State and local tax laws other than income tax laws, and including the impact on the taxpayer privacy intended to be protected at the Federal, State, and local levels under
"(6) whether the public interest would be served by greater disclosure of information relating to tax exempt organizations described in section 501 of the Internal Revenue Code of 1986."
Combined Employment Tax Reporting Demonstration Project
"(a)
"(b)
"(1) carried out between the Internal Revenue Service and the State of Montana for a period ending with the date which is 5 years after the date of the enactment of this Act [Aug. 5, 1997],
"(2) limited to the reporting of employment taxes, and
"(3) limited to the disclosure of the taxpayer identity (as defined in section 6103(b)(6) of such Code) and the signature of the taxpayer."
Procedures and Policies To Safeguard Confidentiality of Taxpayer Information
Confidentiality of Tax Return Information
"(a)
"(b)
Clarification of Congressional Intent as to Scope of Amendments by Section 2653 of Pub. L. 98–369
For provisions that nothing in amendments by section 2653 of
Plan Amendments Not Required Until January 1, 1989
For provisions directing that if any amendments made by subtitle A or subtitle C of title XI [§§1101–1147 and 1171–1177] or title XVIII [§§1800–1899A] of
Reimbursement of Costs of Supplying Information Necessary for Administration of Federal Retirement Systems
"(1) information under section 6103(l)(12) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954]; and
"(2) such other information agreed upon by the Director of the Office of Personnel Management and the Secretary of Health and Human Services, which is required in the administration of chapters 83 and 84 of
Section 1106(b) and (c) of the Social Security Act [
Taxpayer Identifying Number; Persons Applying For Loans Under Federal Loan Programs Required To Furnish
Individuals Exposed to Occupational Hazards During Military Service; Procedures Applicable for Locating
Executive Documents
Inspection of Tax Returns
The Executive orders listed below authorized inspection of returns for certain specified purposes:
| Ex. Ord. No. | Date | Federal Register |
|---|---|---|
| 10699 | Feb. 19, 1957 | 22 F.R. 1059 |
| 10701 | Mar. 14, 1957 | 22 F.R. 1629 |
| 10703 | Mar. 17, 1957 | 22 F.R. 1797 |
| 10706 | Apr. 25, 1957 | 22 F.R. 3027 |
| 10712 | May 17, 1957 | 22 F.R. 3499 |
| 10738 | Nov. 15, 1957 | 22 F.R. 9205 |
| 10801 | Jan. 21, 1959 | 24 F.R. 521 |
| 10806 | Mar. 10, 1959 | 24 F.R. 1823 |
| 10808 | Mar. 19, 1959 | 24 F.R. 2221 |
| 10815 | Apr. 29, 1959 | 24 F.R. 3474 |
| 10818 | May 8, 1959 | 24 F.R. 3799 |
| 10846 | Oct. 13, 1959 | 24 F.R. 8318 |
| 10855 | Nov. 27, 1959 | 24 F.R. 9565 |
| 10871 | Mar. 15, 1960 | 25 F.R. 2251 |
| 10876 | Apr. 22, 1960 | 25 F.R. 3569 |
| 10906 | Jan. 18, 1961 | 26 F.R. 508 |
| 10916 | Jan. 25, 1961 | 26 F.R. 781 |
| 10935 | Apr. 22, 1961 | 26 F.R. 3507 |
| 10947 | June 12, 1961 | 26 F.R. 5283 |
| 10954 | July 26, 1961 | 26 F.R. 6759 |
| 10962 | Aug. 23, 1961 | 26 F.R. 8001 |
| 10966 | Oct. 11, 1961 | 26 F.R. 9667 |
| 10981 | Dec. 28, 1961 | 26 F.R. 12749 |
| 11020 | May 8, 1962 | 27 F.R. 4407 |
| 11055 | Oct. 9, 1962 | 27 F.R. 9981 |
| 11065 | Nov. 21, 1962 | 27 F.R. 11581 |
| 11080 | Jan. 29, 1963 | 28 F.R. 903 |
| 11082 | Feb. 4, 1963 | 28 F.R. 1131 |
| 11083 | Feb. 6, 1963 | 28 F.R. 1245 |
| 11099 | Mar. 14, 1963 | 28 F.R. 2619 |
| 11102 | Apr. 4, 1963 | 28 F.R. 3373 |
| 11109 | May 28, 1963 | 28 F.R. 5351 |
| 11133 | Dec. 17, 1963 | 28 F.R. 13835 |
| 11153 | Apr. 17, 1964 | 29 F.R. 5335 |
| 11176 | Sept. 3, 1964 | 29 F.R. 12607 |
| 11192 | Jan. 13, 1965 | 30 F.R. 521 |
| 11194 | Jan. 26, 1965 | 30 F.R. 877 |
| 11201 | Mar. 4, 1965 | 30 F.R. 2921 |
| 11204 | Mar. 12, 1965 | 30 F.R. 3417 |
| 11206 | Mar. 18, 1965 | 30 F.R. 3741 |
| 11213 | Apr. 2, 1965 | 30 F.R. 4389 |
| 11217 | Apr. 24, 1965 | 30 F.R. 5819 |
| 11235 | July 21, 1965 | 30 F.R. 9199 |
| 11332 | Mar. 7, 1967 | 32 F.R. 3877 |
| 11337 | Mar. 25, 1967 | 32 F.R. 5245 |
| 11358 | June 6, 1967 | 32 F.R. 8227 |
| 11370 | Aug. 30, 1967 | 32 F.R. 12665 |
| 11383 | Nov. 30, 1967 | 32 F.R. 17421 |
| 11454 | Feb. 7, 1969 | 34 F.R. 1935 |
| 11457 | Mar. 4, 1969 | 34 F.R. 3793 |
| 11461 | Mar. 27, 1969 | 34 F.R. 5901 |
| 11465 | Apr. 10, 1969 | 34 F.R. 6415 |
| 11483 | Sept. 23, 1969 | 34 F.R. 14757 |
| 11505 | Jan. 21, 1970 | 35 F.R. 939 |
| 11535 | June 12, 1970 | 35 F.R. 9809 |
| 11584 | Mar. 3, 1971 | 36 F.R. 4365 |
| 11611 | July 26, 1971 | 36 F.R. 13889 |
| 11624 | Oct. 12, 1971 | 36 F.R. 19965 |
| 11631 | Nov. 9, 1971 | 36 F.R. 21575 |
| 11650 | Feb. 16, 1972 | 37 F.R. 3739 |
| 11655 | Mar. 14, 1972 | 37 F.R. 5477 |
| 11656 | Mar. 14, 1972 | 37 F.R. 5479 |
| 11682 | Aug. 29, 1972 | 37 F.R. 17701 |
| 11697 | Jan. 17, 1973 | 38 F.R. 1723 |
| 11706 | Mar. 8, 1973 | 38 F.R. 6663 |
| 11709 | Mar. 27, 1973 | 38 F.R. 8131 |
| 11711 | Apr. 13, 1973 | 38 F.R. 9483 |
| 11719 | May 17, 1973 | 38 F.R. 13315 |
| 11720 | May 17, 1973 | 38 F.R. 13317 |
| 11722 | June 9, 1973 | 38 F.R. 15437 |
| 11786 | June 7, 1974 | 39 F.R. 20473 |
| 11859 | May 7, 1975 | 40 F.R. 20265 |
| 11900 | Jan. 22, 1976 | 41 F.R. 3461 |
Executive Orders 10738, 10906, 10954, 10962, 11102, 11206, 11213, 11650, and 11706, listed above, were revoked by Ex. Ord. No. 12553, Feb. 25, 1986, 51 F.R. 7237.
Executive Order No. 11805
Ex. Ord. No. 11805, Sept. 20, 1974, 39 F.R. 34261, which related to inspection of tax returns by the President and certain designated employees of the White House Office, was revoked by Ex. Ord. No. 12553, Feb. 25, 1986, 51 F.R. 7237.
1 See References in Text note below.
2 So in original. Probably should be followed by a comma.
§6104. Publicity of information required from certain exempt organizations and certain trusts
(a) Inspection of applications for tax exemption or notice of status
(1) Public inspection
(A) Organizations described in section 501 or 527
If an organization described in section 501(c) or (d) is exempt from taxation under section 501(a) for any taxable year or a political organization is exempt from taxation under section 527 for any taxable year, the application filed by the organization with respect to which the Secretary made his determination that such organization was entitled to exemption under section 501(a) or notice of status filed by the organization under section 527(i), together with any papers submitted in support of such application or notice, and any letter or other document issued by the Internal Revenue Service with respect to such application or notice shall be open to public inspection at the national office of the Internal Revenue Service. In the case of any application or notice filed after the date of the enactment of this subparagraph, a copy of such application or notice and such letter or document shall be open to public inspection at the appropriate field office of the Internal Revenue Service (determined under regulations prescribed by the Secretary). Any inspection under this subparagraph may be made at such times, and in such manner, as the Secretary shall by regulations prescribe. After the application of any organization for exemption from taxation under section 501(a) has been opened to public inspection under this subparagraph, the Secretary shall, on the request of any person with respect to such organization, furnish a statement indicating the subsection and paragraph of section 501 which it has been determined describes such organization.
(B) Pension, etc., plans
The following shall be open to public inspection at such times and in such places as the Secretary may prescribe:
(i) any application filed with respect to the qualification of a pension, profit-sharing, or stock bonus plan under section 401(a) or 403(a), an individual retirement account described in section 408(a), or an individual retirement annuity described in section 408(b),
(ii) any application filed with respect to the exemption from tax under section 501(a) of an organization forming part of a plan or account referred to in clause (i),
(iii) any papers submitted in support of an application referred to in clause (i) or (ii), and
(iv) any letter or other document issued by the Internal Revenue Service and dealing with the qualification referred to in clause (i) or the exemption from tax referred to in clause (ii).
Except in the case of a plan participant, this subparagraph shall not apply to any plan referred to in clause (i) having not more than 25 participants.
(C) Certain names and compensation not to be opened to public inspection
In the case of any application, document, or other papers, referred to in subparagraph (B), information from which the compensation (including deferred compensation) of any individual may be ascertained shall not be open to public inspection under subparagraph (B).
(D) Withholding of certain other information
Upon request of the organization submitting any supporting papers described in subparagraph (A) or (B), the Secretary shall withhold from public inspection any information contained therein which he determines relates to any trade secret, patent, process, style of work, or apparatus, of the organization, if he determines that public disclosure of such information would adversely affect the organization. The Secretary shall withhold from public inspection any information contained in supporting papers described in subparagraph (A) or (B) the public disclosure of which he determines would adversely affect the national defense.
(2) Inspection by committees of Congress
Section 6103(f) shall apply with respect to—
(A) the application for exemption of any organization described in section 501(c) or (d) which is exempt from taxation under section 501(a) for any taxable year or notice of status of any political organization which is exempt from taxation under section 527 for any taxable year, and any application referred to in subparagraph (B) of subsection (a)(1) of this section, and
(B) any other papers which are in the possession of the Secretary and which relate to such application,
as if such papers constituted returns.
(3) Information available on Internet and in person
(A) In general
The Secretary shall make publicly available, on the Internet and at the offices of the Internal Revenue Service—
(i) a list of all political organizations which file a notice with the Secretary under section 527(i), and
(ii) the name, address, electronic mailing address, custodian of records, and contact person for such organization.
(B) Time to make information available
The Secretary shall make available the information required under subparagraph (A) not later than 5 business days after the Secretary receives a notice from a political organization under section 527(i).
(b) Inspection of annual returns
The information required to be furnished by sections 6033, 6034, and 6058, together with the names and addresses of such organizations and trusts, shall be made available to the public at such times and in such places as the Secretary may prescribe. Nothing in this subsection shall authorize the Secretary to disclose the name or address of any contributor to any organization or trust (other than a private foundation, as defined in section 509(a) or a political organization exempt from taxation under section 527) which is required to furnish such information. In the case of an organization described in section 501(d), this subsection shall not apply to copies referred to in section 6031(b) with respect to such organization. In the case of a trust which is required to file a return under section 6034(a), this subsection shall not apply to information regarding beneficiaries which are not organizations described in section 170(c). Any annual return which is filed under section 6011 by an organization described in section 501(c)(3) and which relates to any tax imposed by section 511 (relating to imposition of tax on unrelated business income of charitable, etc., organizations) shall be treated for purposes of this subsection in the same manner as if furnished under section 6033. Any annual return required to be filed electronically under section 6033(n) shall be made available by the Secretary to the public as soon as practicable in a machine readable format.
(c) Publication to State officials
(1) General rule for charitable organizations
In the case of any organization which is described in section 501(c)(3) and exempt from taxation under section 501(a), or has applied under section 508(a) for recognition as an organization described in section 501(c)(3), the Secretary at such times and in such manner as he may by regulations prescribe shall—
(A) notify the appropriate State officer of a refusal to recognize such organization as an organization described in section 501(c)(3), or of the operation of such organization in a manner which does not meet, or no longer meets, the requirements of its exemption,
(B) notify the appropriate State officer of the mailing of a notice of deficiency of tax imposed under section 507 or
(C) at the request of such appropriate State officer, make available for inspection and copying such returns, filed statements, records, reports, and other information, relating to a determination under subparagraph (A) or (B) as are relevant to any determination under State law.
(2) Disclosure of proposed actions related to charitable organizations
(A) Specific notifications
In the case of an organization to which paragraph (1) applies, the Secretary may disclose to the appropriate State officer—
(i) a notice of proposed refusal to recognize such organization as an organization described in section 501(c)(3) or a notice of proposed revocation of such organization's recognition as an organization exempt from taxation,
(ii) the issuance of a letter of proposed deficiency of tax imposed under section 507 or
(iii) the names, addresses, and taxpayer identification numbers of organizations which have applied for recognition as organizations described in section 501(c)(3).
(B) Additional disclosures
Returns and return information of organizations with respect to which information is disclosed under subparagraph (A) may be made available for inspection by or disclosed to an appropriate State officer.
(C) Procedures for disclosure
Information may be inspected or disclosed under subparagraph (A) or (B) only—
(i) upon written request by an appropriate State officer, and
(ii) for the purpose of, and only to the extent necessary in, the administration of State laws regulating such organizations.
Such information may only be inspected by or disclosed to a person other than the appropriate State officer if such person is an officer or employee of the State and is designated by the appropriate State officer to receive the returns or return information under this paragraph on behalf of the appropriate State officer.
(D) Disclosures other than by request
The Secretary may make available for inspection or disclose returns and return information of an organization to which paragraph (1) applies to an appropriate State officer of any State if the Secretary determines that such returns or return information may constitute evidence of noncompliance under the laws within the jurisdiction of the appropriate State officer.
(3) Disclosure with respect to certain other exempt organizations
Upon written request by an appropriate State officer, the Secretary may make available for inspection or disclosure returns and return information of any organization described in section 501(c) (other than organizations described in paragraph (1) or (3) thereof) for the purpose of, and only to the extent necessary in, the administration of State laws regulating the solicitation or administration of the charitable funds or charitable assets of such organizations. Such information may only be inspected by or disclosed to a person other than the appropriate State officer if such person is an officer or employee of the State and is designated by the appropriate State officer to receive the returns or return information under this paragraph on behalf of the appropriate State officer.
(4) Use in civil judicial and administrative proceedings
Returns and return information disclosed pursuant to this subsection may be disclosed in civil administrative and civil judicial proceedings pertaining to the enforcement of State laws regulating such organizations in a manner prescribed by the Secretary similar to that for tax administration proceedings under section 6103(h)(4).
(5) No disclosure if impairment
Returns and return information shall not be disclosed under this subsection, or in any proceeding described in paragraph (4), to the extent that the Secretary determines that such disclosure would seriously impair Federal tax administration.
(6) Definitions
For purposes of this subsection—
(A) Return and return information
The terms "return" and "return information" have the respective meanings given to such terms by section 6103(b).
(B) Appropriate State officer
The term "appropriate State officer" means—
(i) the State attorney general,
(ii) the State tax officer,
(iii) in the case of an organization to which paragraph (1) applies, any other State official charged with overseeing organizations of the type described in section 501(c)(3), and
(iv) in the case of an organization to which paragraph (3) applies, the head of an agency designated by the State attorney general as having primary responsibility for overseeing the solicitation of funds for charitable purposes.
(d) Public inspection of certain annual returns, reports, applications for exemption, and notices of status
(1) In general
In the case of an organization described in subsection (c) or (d) of section 501 and exempt from taxation under section 501(a) or an organization exempt from taxation under section 527(a)—
(A) a copy of—
(i) the annual return filed under section 6033 (relating to returns by exempt organizations) by such organization,
(ii) any annual return which is filed under section 6011 by an organization described in section 501(c)(3) and which relates to any tax imposed by section 511 (relating to imposition of tax on unrelated business income of charitable, etc., organizations),
(iii) if the organization filed an application for recognition of exemption under section 501 or notice of status under section 527(i), the exempt status application materials or any notice materials of such organization, and
(iv) the reports filed under section 527(j) (relating to required disclosure of expenditures and contributions) by such organization,
shall be made available by such organization for inspection during regular business hours by any individual at the principal office of such organization and, if such organization regularly maintains 1 or more regional or district offices having 3 or more employees, at each such regional or district office, and
(B) upon request of an individual made at such principal office or such a regional or district office, a copy of such annual return, reports, and exempt status application materials or such notice materials shall be provided to such individual without charge other than a reasonable fee for any reproduction and mailing costs.
The request described in subparagraph (B) must be made in person or in writing. If such request is made in person, such copy shall be provided immediately and, if made in writing, shall be provided within 30 days.
(2) 3-year limitation on inspection of returns
Paragraph (1) shall apply to an annual return filed under section 6011 or 6033 only during the 3-year period beginning on the last day prescribed for filing such return (determined with regard to any extension of time for filing).
(3) Exceptions from disclosure requirement
(A) Nondisclosure of contributors, etc.
In the case of an organization which is not a private foundation (within the meaning of section 509(a)) or a political organization exempt from taxation under section 527, paragraph (1) shall not require the disclosure of the name or address of any contributor to the organization. In the case of an organization described in section 501(d), paragraph (1) shall not require the disclosure of the copies referred to in section 6031(b) with respect to such organization.
(B) Nondisclosure of certain other information
Paragraph (1) shall not require the disclosure of any information if the Secretary withheld such information from public inspection under subsection (a)(1)(D).
(4) Limitation on providing copies
Paragraph (1)(B) shall not apply to any request if, in accordance with regulations promulgated by the Secretary, the organization has made the requested documents widely available, or the Secretary determines, upon application by an organization, that such request is part of a harassment campaign and that compliance with such request is not in the public interest.
(5) Exempt status application materials
For purposes of paragraph (1), the term "exempt status application materials" means the application for recognition of exemption under section 501 and any papers submitted in support of such application and any letter or other document issued by the Internal Revenue Service with respect to such application.
(6) Notice materials
For purposes of paragraph (1), the term "notice materials" means the notice of status filed under section 527(i) and any papers submitted in support of such notice and any letter or other document issued by the Internal Revenue Service with respect to such notice.
(7) Disclosure of reports by Internal Revenue Service
Any report filed by an organization under section 527(j) (relating to required disclosure of expenditures and contributions) shall be made available to the public at such times and in such places as the Secretary may prescribe.
(8) Application to nonexempt charitable trusts and nonexempt private foundations
The organizations referred to in paragraphs (1) and (2) of section 6033(d) shall comply with the requirements of this subsection relating to annual returns filed under section 6033 in the same manner as the organizations referred to in paragraph (1).
(Aug. 16, 1954, ch. 736,
Editorial Notes
References in Text
The date of enactment of this subparagraph, referred to in subsec. (a)(1)(A), is Sept. 2, 1958.
Codification
Sections 1201(b)(3), 1224(a), (b)(4), and 1225(a) of
Amendments
2019—Subsec. (b).
2014—Subsec. (d)(6) to (8).
2007—Subsec. (b).
Subsec. (d)(1)(A)(ii).
Subsec. (d)(2).
2006—Subsec. (b).
Subsec. (c)(1).
Subsec. (c)(2) to (6).
Subsec. (d)(1)(A)(ii) to (iv).
2002—Subsec. (b).
Subsec. (d)(1)(A)(i).
Subsec. (d)(2).
2000—Subsec. (a).
Subsec. (a)(1)(A).
Subsec. (a)(2)(A).
Subsec. (a)(3).
Subsec. (b).
Subsec. (d).
Subsec. (d)(1).
Subsec. (d)(1)(A)(i).
Subsec. (d)(1)(A)(ii).
Subsec. (d)(1)(A)(iii).
Subsec. (d)(1)(B).
Subsec. (d)(2).
Subsec. (d)(3)(A).
Subsec. (d)(6).
1998—Subsec. (b).
Subsec. (d).
Subsec. (e).
Subsec. (e)(1)(C).
1996—Subsec. (e)(1)(A).
Subsec. (e)(2)(A).
Subsec. (e)(3).
1987—Subsec. (e).
1984—Subsec. (a)(1)(B)(i).
Subsec. (d).
1980—Subsec. (b).
Subsec. (d).
1978—Subsec. (a)(1)(A).
Subsec. (a)(2).
Subsec. (b).
1976—Subsec. (a).
Subsec. (b).
Subsec. (c)(1).
1974—Subsec. (a)(1).
Subsec. (a)(2)(A).
Subsec. (b).
1969—Subsec. (b).
Subsecs. (c), (d).
1958—
Statutory Notes and Related Subsidiaries
Effective Date of 2019 Amendment
Amendment by
Effective Date of 2007 Amendment
Amendment by
Effective Date of 2006 Amendment
Amendment by section 1201(b)(3) of
Amendment by section 1224(a), (b)(4) of
Effective Date of 2002 Amendment
Amendment by
Effective Date of 2000 Amendments
Amendment by section 1(b) of
Amendment by section 3(b) of
Effective Date of 1998 Amendment
"(A)
"(B)
Effective Date of 1996 Amendment
Effective Date of 1987 Amendment
"(1) to returns for years beginning after December 31, 1986, and
"(2) on and after the 30th day after the date of the enactment of this Act [Dec. 22, 1987] in the case of applications submitted to the Internal Revenue Service—
"(A) after July 15, 1987, or
"(B) on or before July 15, 1987, if the organization has a copy of the application on July 15, 1987."
Effective Date of 1984 Amendment
Amendment by section 306(b) of
Amendment by section 491(d)(49) of
Effective Date of 1980 Amendment
Amendment by
Effective Date of 1978 Amendments
Amendment by
Amendment by
Amendment by
Effective Date of 1976 Amendment
Amendment by section 1307(d)(2)(B) of
Effective Date of 1974 Amendment
Effective Date of 1969 Amendment
Amendment by
Effective Date of 1958 Amendment
Effect of Amendments on Existing Disclosures
§6105. Confidentiality of information arising under treaty obligations
(a) In general
Tax convention information shall not be disclosed.
(b) Exceptions
Subsection (a) shall not apply—
(1) to the disclosure of tax convention information to persons or authorities (including courts and administrative bodies) which are entitled to such disclosure pursuant to a tax convention,
(2) to any generally applicable procedural rules regarding applications for relief under a tax convention,
(3) to the disclosure of tax convention information on the same terms as return information may be disclosed under paragraph (3)(C) or (7) of section 6103(i), except that in the case of tax convention information provided by a foreign government, no disclosure may be made under this paragraph without the written consent of the foreign government, or
(4) in any case not described in paragraph (1), (2), or (3), to the disclosure of any tax convention information not relating to a particular taxpayer if the Secretary determines, after consultation with each other party to the tax convention, that such disclosure would not impair tax administration.
(c) Definitions
For purposes of this section—
(1) Tax convention information
The term "tax convention information" means any—
(A) agreement entered into with the competent authority of one or more foreign governments pursuant to a tax convention,
(B) application for relief under a tax convention,
(C) background information related to such agreement or application,
(D) document implementing such agreement, and
(E) other information exchanged pursuant to a tax convention which is treated as confidential or secret under the tax convention.
(2) Tax convention
The term "tax convention" means—
(A) any income tax or gift and estate tax convention, or
(B) any other convention or bilateral agreement (including multilateral conventions and agreements and any agreement with a possession of the United States) providing for the avoidance of double taxation, the prevention of fiscal evasion, nondiscrimination with respect to taxes, the exchange of tax relevant information with the United States, or mutual assistance in tax matters.
(d) Cross references
For penalties for the unauthorized disclosure of tax convention information which is return or return information, see sections 7213, 7213A, and 7431.
(Added
Editorial Notes
Prior Provisions
A prior section 6105, act Aug. 16, 1954, ch. 736,
Amendments
2002—Subsec. (b)(2).
Subsec. (b)(3).
Subsec. (b)(4).
Subsec. (c)(1)(C), (E).
Statutory Notes and Related Subsidiaries
Effective Date of 2002 Amendment
Amendment by
[§6106. Repealed. Pub. L. 94–455, title XII, §1202(h)(1), Oct. 4, 1976, 90 Stat. 1688 ]
Section, act Aug. 16, 1954, ch. 736,
§6107. Tax return preparer must furnish copy of return to taxpayer and must retain a copy or list
(a) Furnishing copy to taxpayer
Any person who is a tax return preparer with respect to any return or claim for refund shall furnish a completed copy of such return or claim to the taxpayer not later than the time such return or claim is presented for such taxpayer's signature.
(b) Copy or list to be retained by tax return preparer
Any person who is a tax return preparer with respect to a return or claim for refund shall, for the period ending 3 years after the close of the return period—
(1) retain a completed copy of such return or claim, or retain, on a list, the name and taxpayer identification number of the taxpayer for whom such return or claim was prepared, and
(2) make such copy or list available for inspection upon request by the Secretary.
(c) Regulations
The Secretary shall prescribe regulations under which, in cases where 2 or more persons are tax return preparers with respect to the same return or claim for refund, compliance with the requirements of subsection (a) or (b), as the case may be, of one such person shall be deemed to be compliance with the requirements of such subsection by the other persons.
(d) Definitions
For purposes of this section, the terms "return" and "claim for refund" have the respective meanings given to such terms by section 6696(e), and the term "return period" has the meaning given to such term by section 6060(c).
(Added
Editorial Notes
Prior Provisions
A prior section 6107, acts Aug. 16, 1954, ch. 736,
Amendments
2007—
Subsec. (a).
Subsec. (b).
Subsec. (c).
Statutory Notes and Related Subsidiaries
Effective Date of 2007 Amendment
Amendment by
Effective Date
Section applicable to documents prepared after Dec. 31, 1976, see section 1203(j) of
§6108. Statistical publications and studies
(a) Publication or other disclosure of statistics of income
The Secretary shall prepare and publish not less than annually statistics reasonably available with respect to the operations of the internal revenue laws, including classifications of taxpayers and of income, the amounts claimed or allowed as deductions, exemptions, and credits, and any other facts deemed pertinent and valuable.
(b) Special statistical studies
The Secretary may, upon written request by any party or parties, make special statistical studies and compilations involving return information (as defined in section 6103(b)(2)) and furnish to such party or parties transcripts of any such special statistical study or compilation. A reasonable fee may be prescribed for the cost of the work or services performed for such party or parties.
(c) Anonymous form
No publication or other disclosure of statistics or other information required or authorized by subsection (a) or special statistical study authorized by subsection (b) shall in any manner permit the statistics, study, or any information so published, furnished, or otherwise disclosed to be associated with, or otherwise identify, directly or indirectly, a particular taxpayer.
(d) Statistical support for National Taxpayer Advocate
Upon request of the National Taxpayer Advocate, the Secretary shall, to the extent practicable, provide the National Taxpayer Advocate with statistical support in connection with the preparation by the National Taxpayer Advocate of the annual report described in section 7803(c)(2)(B)(ii). Such statistical support shall include statistical studies, compilations, and the review of information provided by the National Taxpayer Advocate for statistical validity and sound statistical methodology.
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
2019—Subsec. (d).
1976—
Statutory Notes and Related Subsidiaries
Effective Date of 2019 Amendment
"(1)
"(2)
Effective Date of 1976 Amendment
Amendment by
§6109. Identifying numbers
(a) Supplying of identifying numbers
When required by regulations prescribed by the Secretary:
(1) Inclusion in returns
Any person required under the authority of this title to make a return, statement, or other document shall include in such return, statement, or other document such identifying number as may be prescribed for securing proper identification of such person.
(2) Furnishing number to other persons
Any person with respect to whom a return, statement, or other document is required under the authority of this title to be made by another person or whose identifying number is required to be shown on a return of another person shall furnish to such other person such identifying number as may be prescribed for securing his proper identification.
(3) Furnishing number of another person
Any person required under the authority of this title to make a return, statement, or other document with respect to another person shall request from such other person, and shall include in any such return, statement, or other document, such identifying number as may be prescribed for securing proper identification of such other person.
(4) Furnishing identifying number of tax return preparer
Any return or claim for refund prepared by a tax return preparer shall bear such identifying number for securing proper identification of such preparer, his employer, or both, as may be prescribed. For purposes of this paragraph, the terms "return" and "claim for refund" have the respective meanings given to such terms by section 6696(e).
For purposes of paragraphs (1), (2), and (3), the identifying number of an individual (or his estate) shall be such individual's social security account number.
(b) Limitation
(1) Except as provided in paragraph (2), a return of any person with respect to his liability for tax, or any statement or other document in support thereof, shall not be considered for purposes of paragraphs (2) and (3) of subsection (a) as a return, statement, or other document with respect to another person.
(2) For purposes of paragraphs (2) and (3) of subsection (a), a return of an estate or trust with respect to its liability for tax, and any statement or other document in support thereof, shall be considered as a return, statement, or other document with respect to each beneficiary of such estate or trust.
(c) Requirement of information
For purposes of this section, the Secretary is authorized to require such information as may be necessary to assign an identifying number to any person.
(d) Use of social security account number
The social security account number issued to an individual for purposes of section 205(c)(2)(A) of the Social Security Act shall, except as shall otherwise be specified under regulations of the Secretary, be used as the identifying number for such individual for purposes of this title.
[(e) Repealed. Pub. L. 104–188, title I, §1615(a)(2)(A), Aug. 20, 1996, 110 Stat. 1853 ]
(f) Access to employer identification numbers by Secretary of Agriculture for purposes of Food and Nutrition Act of 2008
(1) In general
In the administration of section 9 of the Food and Nutrition Act of 2008 (
(2) Sharing of information and safeguards
(A) Sharing of information
The Secretary of Agriculture may share any information contained in any list referred to in paragraph (1) with any other agency or instrumentality of the United States which otherwise has access to employer identification numbers in accordance with this section or other applicable Federal law, except that the Secretary of Agriculture may share such information only to the extent that such Secretary determines such sharing would assist in verifying and matching such information against information maintained by such other agency or instrumentality. Any such information shared pursuant to this subparagraph may be used by such other agency or instrumentality only for the purpose of effective administration and enforcement of the Food and Nutrition Act of 2008 or for the purpose of investigation of violations of other Federal laws or enforcement of such laws.
(B) Safeguards
The Secretary of Agriculture, and the head of any other agency or instrumentality referred to in subparagraph (A), shall restrict, to the satisfaction of the Secretary of the Treasury, access to employer identification numbers obtained pursuant to this subsection only to officers and employees of the United States whose duties or responsibilities require access for the purposes described in subparagraph (A). The Secretary of Agriculture, and the head of any agency or instrumentality with which information is shared pursuant to subparagraph (A), shall provide such other safeguards as the Secretary of the Treasury determines to be necessary or appropriate to protect the confidentiality of the employer identification numbers.
(3) Confidentiality and nondisclosure rules
Employer identification numbers that are obtained or maintained pursuant to this subsection by the Secretary of Agriculture or the head of any agency or instrumentality with which information is shared pursuant to paragraph (2) shall be confidential, and no officer or employee of the United States who has or had access to the employer identification numbers shall disclose any such employer identification number obtained thereby in any manner. For purposes of this paragraph, the term "officer or employee" includes a former officer or employee.
(4) Sanctions
Paragraphs (1), (2), and (3) of section 7213(a) shall apply with respect to the unauthorized willful disclosure to any person of employer identification numbers maintained pursuant to this subsection by the Secretary of Agriculture or any agency or instrumentality with which information is shared pursuant to paragraph (2) in the same manner and to the same extent as such paragraphs apply with respect to unauthorized disclosures of return and return information described in such paragraphs. Paragraph (4) of section 7213(a) shall apply with respect to the willful offer of any item of material value in exchange for any such employer identification number in the same manner and to the same extent as such paragraph applies with respect to offers (in exchange for any return or return information) described in such paragraph.
(g) Access to employer identification numbers by Federal Crop Insurance Corporation for purposes of the Federal Crop Insurance Act
(1) In general
In the administration of section 506 of the Federal Crop Insurance Act, the Federal Crop Insurance Corporation may require each policyholder and each reinsured company to furnish to the insurer or to the Corporation the employer identification number of such policyholder, subject to the requirements of this paragraph. No officer or employee of the Federal Crop Insurance Corporation, or authorized person shall have access to any such number for any purpose other than the establishment of a system of records necessary to the effective administration of such Act. The Manager of the Corporation may require each policyholder to provide to the Manager or authorized person, at such times and in such manner as prescribed by the Manager, the employer identification number of each entity that holds or acquires a substantial beneficial interest in the policyholder. For purposes of this subclause, the term "substantial beneficial interest" means not less than 5 percent of all beneficial interest in the policyholder. The Secretary of Agriculture shall restrict, to the satisfaction of the Secretary of the Treasury, access to employer identification numbers obtained pursuant to this paragraph only to officers and employees of the United States or authorized persons whose duties or responsibilities require access for the administration of the Federal Crop Insurance Act.
(2) Confidentiality and nondisclosure rules
Employer identification numbers maintained by the Secretary of Agriculture or the Federal Crop Insurance Corporation pursuant to this subsection shall be confidential, and except as authorized by this subsection, no officer or employee of the United States or authorized person who has or had access to such employer identification numbers shall disclose any such employer identification number obtained thereby in any manner. For purposes of this paragraph, the term "officer or employee" includes a former officer or employee. For purposes of this subsection, the term "authorized person" means an officer or employee of an insurer whom the Manager of the Corporation designates by rule, subject to appropriate safeguards including a prohibition against the release of such social security account numbers (other than to the Corporations) by such person.
(3) Sanctions
Paragraphs (1), (2), and (3) of section 7213(a) shall apply with respect to the unauthorized willful disclosure to any person of employer identification numbers maintained by the Secretary of Agriculture or the Federal Crop Insurance Corporation pursuant to this subsection in the same manner and to the same extent as such paragraphs apply with respect to unauthorized disclosures of return and return information described in such paragraphs. Paragraph (4) of section 7213(a) shall apply with respect to the willful offer of any item of material value in exchange for any such employer identification number in the same manner and to the same extent as such paragraph applies with respect to offers (in exchange for any return or return information) described in such paragraph.
(h) Identifying information required with respect to certain seller-provided financing
(1) Payor
If any taxpayer claims a deduction under section 163 for qualified residence interest on any seller-provided financing, such taxpayer shall include on the return claiming such deduction the name, address, and TIN of the person to whom such interest is paid or accrued.
(2) Recipient
If any person receives or accrues interest referred to in paragraph (1), such person shall include on the return for the taxable year in which such interest is so received or accrued the name, address, and TIN of the person liable for such interest.
(3) Furnishing of information between payor and recipient
If any person is required to include the TIN of another person on a return under paragraph (1) or (2), such other person shall furnish his TIN to such person.
(4) Seller-provided financing
For purposes of this subsection, the term "seller-provided financing" means any indebtedness incurred in acquiring any residence if the person to whom such indebtedness is owed is the person from whom such residence was acquired.
(i) Special rules relating to the issuance of ITINs
(1) In general
The Secretary is authorized to issue an individual taxpayer identification number to an individual only if the applicant submits an application, using such form as the Secretary may require and including the required documentation—
(A) in the case of an applicant not described in subparagraph (B)—
(i) in person to an employee of the Internal Revenue Service or a community-based certifying acceptance agent approved by the Secretary, or
(ii) by mail, pursuant to rules prescribed by the Secretary, or
(B) in the case of an applicant who resides outside of the United States, by mail or in person to an employee of the Internal Revenue Service, a community-based certifying acceptance agent approved by the Secretary, or a designee of the Secretary at a United States diplomatic mission or consular post.
(2) Required documentation
For purposes of this subsection—
(A) In general
The term "required documentation" includes such documentation as the Secretary may require that proves the individual's identity, foreign status, and residency.
(B) Validity of documents
The Secretary may accept only original documents or certified copies meeting the requirements of the Secretary.
(3) Term of ITIN
(A) In general
An individual taxpayer identification number issued after December 31, 2012, shall remain in effect unless the individual to whom such number is issued does not file a return of tax (or is not included as a dependent on the return of tax of another taxpayer) for 3 consecutive taxable years ending after the issuance of such number. In the case of an individual described in the preceding sentence, such number shall expire on the day after the due date for the return of tax for such third consecutive taxable year.
(B) Special rule for existing ITINs
In the case of an individual with respect to whom an individual taxpayer identification number was issued before January 1, 2013, such number shall remain in effect until the earlier of—
(i) the applicable date, or
(ii) if the individual does not file a return of tax (or is not included as a dependent on the return of tax of another taxpayer) for 3 consecutive taxable years at least one of which ends after December 18, 2015, the due date for the return of tax for such third consecutive taxable year.
(C) Applicable date
For purposes of subparagraph (B), the term "applicable date" means—
(i) January 1, 2017, in the case of an individual taxpayer identification number issued before January 1, 2008,
(ii) January 1, 2018, in the case of an individual taxpayer identification number issued in 2008,
(iii) January 1, 2019, in the case of an individual taxpayer identification number issued in 2009 or 2010, and
(iv) January 1, 2020, in the case of an individual taxpayer identification number issued in 2011 or 2012.
(4) Distinguishing ITINs issued solely for purposes of treaty benefits
The Secretary shall implement a system that ensures that individual taxpayer identification numbers issued solely for purposes of claiming tax treaty benefits are used only for such purposes, by distinguishing such numbers from other individual taxpayer identification numbers issued.
(Added
Editorial Notes
References in Text
Section 205 of the Social Security Act, referred to in subsec. (d), is classified to
The Food and Nutrition Act of 2008, referred to in subsec. (f), is
The Federal Crop Insurance Act, referred to in subsec. (g), is subtitle A of title V of act Feb. 16, 1938, ch. 30,
Codification
Prior Provisions
A prior section 6109 was renumbered
Amendments
2018—Subsec. (f).
Subsec. (i)(1)(A)(i).
Subsec. (i)(1)(B).
Subsec. (i)(3)(A).
Subsec. (i)(3)(B)(ii).
"(I) the last day of such third consecutive taxable year, or
"(II) the last day of the taxable year that includes the date of the enactment of this subsection."
2015—Subsec. (i).
2008—Subsec. (f).
Subsec. (f)(1), (2)(A).
2007—Subsec. (a)(4).
1998—Subsec. (a).
1996—Subsec. (e).
"(e)
Subsecs. (f), (g).
1994—Subsec. (e).
"(1) any taxpayer claims an exemption under section 151 for any dependent on a return for any taxable year, and
"(2) such dependent has attained the age of 1 year before the close of such taxable year,
such taxpayer shall include on such return the identifying number (for purposes of this title) of such dependent."
Subsec. (f)(2).
Subsec. (f)(3).
Subsec. (f)(4).
1992—Subsec. (h).
1990—Subsec. (e)(2).
Subsec. (f).
1988—Subsec. (a).
Subsec. (e)(2).
1986—Subsec. (e).
1976—Subsec. (a).
Subsec. (d).
Statutory Notes and Related Subsidiaries
Effective Date of 2018 Amendment
Amendment by section 101(g)(1)–(3) of
Effective Date of 2015 Amendment
Effective Date of 2008 Amendment
Amendment of this section and repeal of
Amendment by section 4002(b)(1)(B), (G), (2)(O) of
Effective Date of 2007 Amendment
Amendment by
Effective Date of 1998 Amendment
Effective Date of 1996 Amendment
Amendment by section 1615(a)(2)(A) of
Effective Date of 1994 Amendment
Amendment by
Effective Date of 1992 Amendment
Effective Date of 1990 Amendments
Amendment by section 1735(c) of
Effective Date of 1988 Amendment
Amendment by section 703(c)(3) of
Effective Date of 1986 Amendment
Effective Date
Identity Protection Personal Identification Numbers
"(a)
"(b)
"(1)
"(2)
Audit by TIGTA
Community-Based Certifying Acceptance Agents
"(1) financial institutions (as defined in section 265(b)(5) of such Code and the regulations thereunder),
"(2) colleges and universities which are described in section 501(c)(3) of such Code and exempt from taxation under section 501(a) of such Code,
"(3) Federal agencies (as defined in section 6402(h) of such Code),
"(4) State and local governments, including agencies responsible for vital records,
"(5) community-based organizations which are described in subsection (c)(3) or (d) of section 501 of such Code and exempt from taxation under section 501(a) of such Code,
"(6) persons that provide assistance to taxpayers in the preparation of their tax returns, and
"(7) other persons or categories of persons as authorized by regulations or other guidance of the Secretary of the Treasury."
ITIN Study
"(1)
"(2)
"(A) Possible administrative and legislative recommendations to reduce fraud and improper payments through the use of individual taxpayer identification numbers (hereinafter referred to as 'ITINs').
"(B) If data supports an in-person initial review of ITIN applications to reduce fraud and improper payments, the administrative and legislative steps needed to implement such an in-person initial review of ITIN applications, in conjunction with an expansion of the community-based certified acceptance agent program under subsection (c) [set out as a note above], with a goal of transitioning to such a program by 2020.
"(C) Strategies for more efficient processing of ITIN applications.
"(D) The acceptance agent program as in existence on the date of the enactment of this Act [Dec. 18, 2015] and ways to expand the geographic availability of agents through the community-based certified acceptance agent program under subsection (c).
"(E) Strategies for the Internal Revenue Service to work with other Federal agencies, State and local governments, and other organizations and persons described in subsection (c) to encourage participation in the community-based certified acceptance agent program under subsection (c) to facilitate in-person initial review of ITIN applications.
"(F) Typical characteristics (derived from Form W–7 and other sources) of mail applications for ITINs as compared with typical characteristics of in-person applications.
"(G) Typical characteristics (derived from 17 [sic] Form W–7 and other sources) of ITIN applications before the Internal Revenue Service revised its application procedures in 2012 as compared with typical characteristics of ITIN applications made after such revisions went into effect.
"(3)
"(4)
§6110. Public inspection of written determinations
(a) General rule
Except as otherwise provided in this section, the text of any written determination and any background file document relating to such written determination shall be open to public inspection at such place as the Secretary may by regulations prescribe.
(b) Definitions
For purposes of this section—
(1) Written determination
(A) In general
The term "written determination" means a ruling, determination letter, technical advice memorandum, or Chief Counsel advice.
(B) Exceptions
Such term shall not include any matter referred to in subparagraph (C) or (D) of section 6103(b)(2).
(2) Background file document
The term "background file document" with respect to a written determination includes the request for that written determination, any written material submitted in support of the request, and any communication (written or otherwise) between the Internal Revenue Service and persons outside the Internal Revenue Service in connection with such written determination (other than any communication between the Department of Justice and the Internal Revenue Service relating to a pending civil or criminal case or investigation) received before issuance of the written determination.
(3) Reference and general written determinations
(A) Reference written determination
The term "reference written determination" means any written determination which has been determined by the Secretary to have significant reference value.
(B) General written determination
The term "general written determination" means any written determination other than a reference written determination.
(c) Exemptions from disclosure
Before making any written determination or background file document open or available to public inspection under subsection (a), the Secretary shall delete—
(1) the names, addresses, and other identifying details of the person to whom the written determination pertains and of any other person, other than a person with respect to whom a notation is made under subsection (d)(1), identified in the written determination or any background file document;
(2) information specifically authorized under criteria established by an Executive order to be kept secret in the interest of national defense or foreign policy, and which is in fact properly classified pursuant to such Executive order;
(3) information specifically exempted from disclosure by any statute (other than this title) which is applicable to the Internal Revenue Service;
(4) trade secrets and commercial or financial information obtained from a person and privileged or confidential;
(5) information the disclosure of which would constitute a clearly unwarranted invasion of personal privacy;
(6) information contained in or related to examination, operating, or condition reports prepared by, or on behalf of, or for use of an agency responsible for the regulation or supervision of financial institutions; and
(7) geological and geophysical information and data, including maps, concerning wells.
The Secretary shall determine the appropriate extent of such deletions and, except in the case of intentional or willful disregard of this subsection, shall not be required to make such deletions (nor be liable for failure to make deletions) unless the Secretary has agreed to such deletions or has been ordered by a court (in a proceeding under subsection (f)(3)) to make such deletions.
(d) Procedures with regard to third party contacts
(1) Notations
If, before the issuance of a written determination, the Internal Revenue Service receives any communication (written or otherwise) concerning such written determination, any request for such determination, or any other matter involving such written determination from a person other than an employee of the Internal Revenue Service or the person to whom such written determination pertains (or his authorized representative with regard to such written determination), the Internal Revenue Service shall indicate, on the written determination open to public inspection, the category of the person making such communication and the date of such communication.
(2) Exception
Paragraph (1) shall not apply to any communication made by the Chief of Staff of the Joint Committee on Taxation.
(3) Disclosure of identity
In the case of any written determination to which paragraph (1) applies, any person may file a petition in the United States Tax Court or file a complaint in the United States District Court for the District of Columbia for an order requiring that the identity of any person to whom the written determination pertains be disclosed. The court shall order disclosure of such identity if there is evidence in the record from which one could reasonably conclude that an impropriety occurred or undue influence was exercised with respect to such written determination by or on behalf of such person. The court may also direct the Secretary to disclose any portion of any other deletions made in accordance with subsection (c) where such disclosure is in the public interest. If a proceeding is commenced under this paragraph, the person whose identity is subject to being disclosed and the person about whom a notation is made under paragraph (1) shall be notified of the proceeding in accordance with the procedures described in subsection (f)(4)(B) and shall have the right to intervene in the proceeding (anonymously, if appropriate).
(4) Period in which to bring action
No proceeding shall be commenced under paragraph (3) unless a petition is filed before the expiration of 36 months after the first day that the written determination is open to public inspection.
(e) Background file documents
Whenever the Secretary makes a written determination open to public inspection under this section, he shall also make available to any person, but only upon the written request of that person, any background file document relating to the written determination.
(f) Resolution of disputes relating to disclosure
(1) Notice of intention to disclose
Except as otherwise provided by subsection (i), the Secretary shall upon issuance of any written determination, or upon receipt of a request for a background file document, mail a notice of intention to disclose such determination or document to any person to whom the written determination pertains (or a successor in interest, executor, or other person authorized by law to act for or on behalf of such person).
(2) Administrative remedies
The Secretary shall prescribe regulations establishing administrative remedies with respect to—
(A) requests for additional disclosure of any written determination of any background file document, and
(B) requests to restrain disclosure.
(3) Action to restrain disclosure
(A) Creation of remedy
Any person—
(i) to whom a written determination pertains (or a successor in interest, executor, or other person authorized by law to act for or on behalf of such person), or who has a direct interest in maintaining the confidentiality of any such written determination or background file document (or portion thereof),
(ii) who disagrees with any failure to make a deletion with respect to that portion of any written determination or any background file document which is to be open or available to public inspection, and
(iii) who has exhausted his administrative remedies as prescribed pursuant to paragraph (2),
may, within 60 days after the mailing by the Secretary of a notice of intention to disclose any written determination or background file document under paragraph (1), together with the proposed deletions, file a petition in the United States Tax Court (anonymously, if appropriate) for a determination with respect to that portion of such written determination or background file document which is to be open to public inspection.
(B) Notice to certain persons
The Secretary shall notify any person to whom a written determination pertains (unless such person is the petitioner) of the filing of a petition under this paragraph with respect to such written determination or related background file document, and any such person may intervene (anonymously, if appropriate) in any proceeding conducted pursuant to this paragraph. The Secretary shall send such notice by registered or certified mail to the last known address of such person within 15 days after such petition is served on the Secretary. No person who has received such a notice may thereafter file any petition under this paragraph with respect to such written determination or background file document with respect to which such notice was received.
(4) Action to obtain additional disclosure
(A) Creation of remedy
Any person who has exhausted the administrative remedies prescribed pursuant to paragraph (2) with respect to a request for disclosure may file a petition in the United States Tax Court or a complaint in the United States District Court for the District of Columbia for an order requiring that any written determination or background file document (or portion thereof) be made open or available to public inspection. Except where inconsistent with subparagraph (B), the provisions of subparagraphs (C), (D), (E), (F), and (G) of
(B) Intervention
If a proceeding is commenced under this paragraph with respect to any written determination or background file document, the Secretary shall, within 15 days after notice of the petition filed under subparagraph (A) is served on him, send notice of the commencement of such proceeding to all persons who are identified by name and address in such written determination or background file document. The Secretary shall send such notice by registered or certified mail to the last known address of such person. Any person to whom such determination or background file document pertains may intervene in the proceeding (anonymously, if appropriate). If such notice is sent, the Secretary shall not be required to defend the action and shall not be liable for public disclosure of the written determination or background file document (or any portion thereof) in accordance with the final decision of the court.
(5) Expedition of determination
The Tax Court shall make a decision with respect to any petition described in paragraph (3) at the earliest practicable date.
(6) Publicity of Tax Court proceedings
Notwithstanding sections 7458 and 7461, the Tax Court may, in order to preserve the anonymity, privacy, or confidentiality of any person under this section, provide by rules adopted under section 7453 that portions of hearings, testimony, evidence, and reports in connection with proceedings under this section may be closed to the public or to inspection by the public.
(g) Time for disclosure
(1) In general
Except as otherwise provided in this section, the text of any written determination or any background file document (as modified under subsection (c)) shall be open or available to public inspection—
(A) no earlier than 75 days, and no later than 90 days, after the notice provided in subsection (f)(1) is mailed, or, if later,
(B) within 30 days after the date on which a court decision under subsection (f)(3) becomes final.
(2) Postponement by order of court
The court may extend the period referred to in paragraph (1)(B) for such time as the court finds necessary to allow the Secretary to comply with its decision.
(3) Postponement of disclosure for up to 90 days
At the written request of the person by whom or on whose behalf the request for the written determination was made, the period referred to in paragraph (1)(A) shall be extended (for not to exceed an additional 90 days) until the day which is 15 days after the date of the Secretary's determination that the transaction set forth in the written determination has been completed.
(4) Additional 180 days
If—
(A) the transaction set forth in the written determination is not completed during the period set forth in paragraph (3), and
(B) the person by whom or on whose behalf the request for the written determination was made establishes to the satisfaction of the Secretary that good cause exists for additional delay in opening the written determination to public inspection,
the period referred to in paragraph (3) shall be further extended (for not to exceed an additional 180 days) until the day which is 15 days after the date of the Secretary's determination that the transaction set forth in the written determination has been completed.
(5) Special rules for certain written determinations, etc.
Notwithstanding the provisions of paragraph (1), the Secretary shall not be required to make available to the public—
(A) any technical advice memorandum, any Chief Counsel advice, and any related background file document involving any matter which is the subject of a civil fraud or criminal investigation or jeopardy or termination assessment until after any action relating to such investigation or assessment is completed, or
(B) any general written determination and any related background file document that relates solely to approval of the Secretary of any adoption or change of—
(i) the funding method or plan year of a plan under section 412,
(ii) a taxpayer's annual accounting period under section 442,
(iii) a taxpayer's method of accounting under section 446(e), or
(iv) a partnership's or partner's taxable year under section 706,
but the Secretary shall make any such written determination and related background file document available upon the written request of any person after the date on which (except for this subparagraph) such determination would be open to public inspection.
(h) Disclosure of prior written determinations and related background file documents
(1) In general
Except as otherwise provided in this subsection, a written determination issued pursuant to a request made before November 1, 1976, and any background file document relating to such written determination shall be open or available to public inspection in accordance with this section.
(2) Time for disclosure
In the case of any written determination or background file document which is to be made open or available to public inspection under paragraph (1)—
(A) subsection (g) shall not apply, but
(B) such written determination or background file document shall be made open or available to public inspection at the earliest practicable date after funds for that purpose have been appropriated and made available to the Internal Revenue Service.
(3) Order of release
Any written determination or background file document described in paragraph (1) shall be open or available to public inspection in the following order starting with the most recent written determination in each category:
(A) reference written determinations issued under this title;
(B) general written determinations issued after July 4, 1967; and
(C) reference written determinations issued under the Internal Revenue Code of 1939 or corresponding provisions of prior law.
General written determinations not described in subparagraph (B) shall be open to public inspection on written request, but not until after the written determinations referred to in subparagraphs (A), (B), and (C) are open to public inspection.
(4) Notice that prior written determinations are open to public inspection
Notwithstanding the provisions of subsections (f)(1) and (f)(3)(A), not less than 90 days before making any portion of a written determination described in this subsection open to public inspection, the Secretary shall issue public notice in the Federal Register that such written determination is to be made open to public inspection. The person who received a written determination may, within 75 days after the date of publication of notice under this paragraph, file a petition in the United States Tax Court (anonymously, if appropriate) for a determination with respect to that portion of such written determination which is to be made open to public inspection. The provisions of subsections (f)(3)(B), (5), and (6) shall apply if such a petition is filed. If no petition is filed, the text of any written determination shall be open to public inspection no earlier than 90 days, and no later than 120 days, after notice is published in the Federal Register.
(5) Exclusion
Subsection (d) shall not apply to any written determination described in paragraph (1).
(i) Special rules for disclosure of Chief Counsel advice
(1) Chief Counsel advice defined
(A) In general
For purposes of this section, the term "Chief Counsel advice" means written advice or instruction, under whatever name or designation, prepared by any national office component of the Office of Chief Counsel which—
(i) is issued to field or service center employees of the Service or regional or district employees of the Office of Chief Counsel; and
(ii) conveys—
(I) any legal interpretation of a revenue provision;
(II) any Internal Revenue Service or Office of Chief Counsel position or policy concerning a revenue provision; or
(III) any legal interpretation of State law, foreign law, or other Federal law relating to the assessment or collection of any liability under a revenue provision.
(B) Revenue provision defined
For purposes of subparagraph (A), the term "revenue provision" means any existing or former internal revenue law, regulation, revenue ruling, revenue procedure, other published or unpublished guidance, or tax treaty, either in general or as applied to specific taxpayers or groups of specific taxpayers.
(2) Additional documents treated as Chief Counsel advice
The Secretary may by regulation provide that this section shall apply to any advice or instruction prepared and issued by the Office of Chief Counsel which is not described in paragraph (1).
(3) Deletions for Chief Counsel advice
In the case of Chief Counsel advice and related background file documents open to public inspection pursuant to this section—
(A) paragraphs (2) through (7) of subsection (c) shall not apply, but
(B) the Secretary may make deletions of material in accordance with subsections (b) and (c) of
(4) Notice of intention to disclose
(A) Nontaxpayer-specific Chief Counsel advice
In the case of Chief Counsel advice which is written without reference to a specific taxpayer or group of specific taxpayers—
(i) subsection (f)(1) shall not apply; and
(ii) the Secretary shall, within 60 days after the issuance of the Chief Counsel advice, complete any deletions described in subsection (c)(1) or paragraph (3) and make the Chief Counsel advice, as so edited, open for public inspection.
(B) Taxpayer-specific Chief Counsel advice
In the case of Chief Counsel advice which is written with respect to a specific taxpayer or group of specific taxpayers, the Secretary shall, within 60 days after the issuance of the Chief Counsel advice, mail the notice required by subsection (f)(1) to each such taxpayer. The notice shall include a copy of the Chief Counsel advice on which is indicated the information that the Secretary proposes to delete pursuant to subsection (c)(1). The Secretary may also delete from the copy of the text of the Chief Counsel advice any of the information described in paragraph (3), and shall delete the names, addresses, and other identifying details of taxpayers other than the person to whom the advice pertains, except that the Secretary shall not delete from the copy of the Chief Counsel advice that is furnished to the taxpayer any information of which that taxpayer was the source.
(j) Civil remedies
(1) Civil action
Whenever the Secretary—
(A) fails to make deletions required in accordance with subsection (c), or
(B) fails to follow the procedures in subsection (g) or (i)(4)(B),
the recipient of the written determination or any person identified in the written determination shall have as an exclusive civil remedy an action against the Secretary in the United States Court of Federal Claims, which shall have jurisdiction to hear any action under this paragraph.
(2) Damages
In any suit brought under the provisions of paragraph (1)(A) in which the Court determines that an employee of the Internal Revenue Service intentionally or willfully failed to delete in accordance with subsection (c), or in any suit brought under subparagraph (1)(B) in which the Court determines that an employee intentionally or willfully failed to act in accordance with subsection (g) or (i)(4)(B), the United States shall be liable to the person in an amount equal to the sum of—
(A) actual damages sustained by the person but in no case shall a person be entitled to receive less than the sum of $1,000, and
(B) the costs of the action together with reasonable attorney's fees as determined by the Court.
(k) Special provisions
(1) Fees
The Secretary is authorized to assess actual costs—
(A) for duplication of any written determination or background file document made open or available to the public under this section, and
(B) incurred in searching for and making deletions required under subsection (c)(1) or (i)(3) from any written determination or background file document which is available to public inspection only upon written request.
The Secretary shall furnish any written determination or background file document without charge or at a reduced charge if he determines that waiver or reduction of the fee is in the public interest because furnishing such determination or background file document can be considered as primarily benefiting the general public.
(2) Records disposal procedures
Nothing in this section shall prevent the Secretary from disposing of any general written determination or background file document described in subsection (b) in accordance with established records disposition procedures, but such disposal shall, except as provided in the following sentence, occur not earlier than 3 years after such written determination is first made open to public inspection. In the case of any general written determination described in subsection (h), the Secretary may dispose of such determination and any related background file document in accordance with such procedures but such disposal shall not occur earlier than 3 years after such written determination is first made open to public inspection if funds are appropriated for such purpose before January 20, 1979, or not earlier than January 20, 1979, if funds are not appropriated before such date. The Secretary shall not dispose of any reference written determinations and related background file documents.
(3) Precedential status
Unless the Secretary otherwise establishes by regulations, a written determination may not be used or cited as precedent. The preceding sentence shall not apply to change the precedential status (if any) of written determinations with regard to taxes imposed by subtitle D of this title.
(l) Section not to apply
This section shall not apply to—
(1) any matter to which section 6104 or 6105 applies, or
(2) any—
(A) written determination issued pursuant to a request made before November 1, 1976, with respect to the exempt status under section 501(a) of an organization described in section 501(c) or (d), the status of an organization as a private foundation under section 509(a), or the status of an organization as an operating foundation under section 4942(j)(3),
(B) written determination described in subsection (g)(5)(B) issued pursuant to a request made before November 1, 1976,
(C) determination letter not otherwise described in subparagraph (A), (B), or (E) issued pursuant to a request made before November 1, 1976,
(D) background file document relating to any general written determination issued before July 5, 1967, or
(E) letter or other document described in section 6104(a)(1)(B)(iv) issued before September 2, 1974 .
(m) Exclusive remedy
Except as otherwise provided in this title, or with respect to a discovery order made in connection with a judicial proceeding, the Secretary shall not be required by any Court to make any written determination or background file document open or available to public inspection, or to refrain from disclosure of any such documents.
(Added
Editorial Notes
References in Text
The Internal Revenue Code of 1939, referred to in subsec. (h)(3)(C), is act Feb. 10, 1939, ch. 2,
Prior Provisions
A prior section 6110 was renumbered 6116 of this title.
Amendments
2018—Subsec. (j)(1).
2007—Subsec. (i)(3).
2000—Subsec. (b)(1).
Subsec. (g)(5)(A).
Subsec. (l)(1).
1999—Subsec. (b)(1).
1998—Subsec. (b)(1).
Subsec. (f)(1).
Subsec. (i).
Subsec. (j).
Subsec. (j)(1)(B), (2).
Subsec. (k).
Subsec. (k)(1)(B).
Subsecs. (l), (m).
1984—Subsec. (f)(5).
1982—Subsec. (i)(1).
Statutory Notes and Related Subsidiaries
Effective Date of 2007 Amendment
Effective Date of 2000 Amendment
Amendment by section 1(a)(7) [title III, §313(e)] of
Effective Date of 1998 Amendment
"(1)
"(2)
"(A) One year after the date of the enactment of this Act [July 22, 1998], in the case of all litigation guideline memoranda, service center advice, tax litigation bulletins, criminal tax bulletins, and general litigation bulletins.
"(B) Eighteen months after such date of enactment, in the case of field service advice and technical assistance to the field issued on or after January 1, 1994.
"(C) Three years after such date of enactment, in the case of field service advice and technical assistance to the field issued on or after January 1, 1992, and before January 1, 1994.
"(D) Six years after such date of enactment, in the case of any other Chief Counsel advice issued after December 31, 1985.
"(3)
"(4)
Effective Date of 1984 Amendment
Amendment by
Effective Date of 1982 Amendment
Amendment by
Effective Date
Pending Requests
§6111. Disclosure of reportable transactions
(a) In general
Each material advisor with respect to any reportable transaction shall make a return (in such form as the Secretary may prescribe) setting forth—
(1) information identifying and describing the transaction,
(2) information describing any potential tax benefits expected to result from the transaction, and
(3) such other information as the Secretary may prescribe.
Such return shall be filed not later than the date specified by the Secretary.
(b) Definitions
For purposes of this section:
(1) Material advisor
(A) In general
The term "material advisor" means any person—
(i) who provides any material aid, assistance, or advice with respect to organizing, managing, promoting, selling, implementing, insuring, or carrying out any reportable transaction, and
(ii) who directly or indirectly derives gross income in excess of the threshold amount (or such other amount as may be prescribed by the Secretary) for such aid, assistance, or advice.
(B) Threshold amount
For purposes of subparagraph (A), the threshold amount is—
(i) $50,000 in the case of a reportable transaction substantially all of the tax benefits from which are provided to natural persons, and
(ii) $250,000 in any other case.
(2) Reportable transaction
The term "reportable transaction" has the meaning given to such term by section 6707A(c).
(c) Regulations
The Secretary may prescribe regulations which provide—
(1) that only 1 person shall be required to meet the requirements of subsection (a) in cases in which 2 or more persons would otherwise be required to meet such requirements,
(2) exemptions from the requirements of this section, and
(3) such rules as may be necessary or appropriate to carry out the purposes of this section.
(Added
Editorial Notes
Prior Provisions
A prior section 6111 was renumbered 6116 of this title.
Amendments
2005—Subsec. (b)(1)(A)(ii).
2004—
1997—Subsecs. (d) to (f).
1986—Subsec. (c)(2)(A).
Subsec. (c)(3)(B)(ii).
Subsec. (d)(1)(B).
Statutory Notes and Related Subsidiaries
Effective Date of 2004 Amendment
Effective Date of 1997 Amendment
"(1)
"(2)
Effective Date of 1986 Amendment
Amendment by section 201(d)(13) of
Amendment by section 201(d)(13) of
Effective Date
"(1)
"(2)
"(3)
§6112. Material advisors of reportable transactions must keep lists of advisees, etc.
(a) In general
Each material advisor (as defined in section 6111) with respect to any reportable transaction (as defined in section 6707A(c)) shall (whether or not required to file a return under section 6111 with respect to such transaction) maintain (in such manner as the Secretary may by regulations prescribe) a list—
(1) identifying each person with respect to whom such advisor acted as a material advisor with respect to such transaction, and
(2) containing such other information as the Secretary may by regulations require.
(b) Special rules
(1) Availability for inspection; retention of information on list
Any person who is required to maintain a list under subsection (a) (or was required to maintain a list under subsection (a) as in effect before the enactment of the American Jobs Creation Act of 2004)—
(A) shall make such list available to the Secretary for inspection upon written request by the Secretary, and
(B) except as otherwise provided under regulations prescribed by the Secretary, shall retain any information which is required to be included on such list for 7 years.
(2) Lists which would be required to be maintained by 2 or more persons
The Secretary may prescribe regulations which provide that, in cases in which 2 or more persons are required under subsection (a) to maintain the same list (or portion thereof), only 1 person shall be required to maintain such list (or portion).
(Added
Editorial Notes
References in Text
Enactment of the American Jobs Creation Act of 2004, referred to in subsec. (b)(1), means enactment of
Prior Provisions
A prior section 6112 was renumbered 6116 of this title.
Amendments
2005—Subsec. (b)(1).
2004—
Subsec. (a).
Subsec. (b).
Subsec. (b)(1)(A).
Subsec. (b)(2).
Subsec. (c).
Statutory Notes and Related Subsidiaries
Effective Date of 2005 Amendment
Amendment by
Effective Date of 2004 Amendment
Amendment by
Effective Date
§6113. Disclosure of nondeductibility of contributions
(a) General rule
Each fundraising solicitation by (or on behalf of) an organization to which this section applies shall contain an express statement (in a conspicuous and easily recognizable format) that contributions or gifts to such organization are not deductible as charitable contributions for Federal income tax purposes.
(b) Organizations to which section applies
(1) In general
Except as otherwise provided in this subsection, this section shall apply to any organization which is not described in section 170(c) and which—
(A) is described in subsection (c) (other than paragraph (1) thereof) or (d) of section 501 and exempt from taxation under section 501(a),
(B) is a political organization (as defined in section 527(e)), or
(C) was an organization described in subparagraph (A) or (B) at any time during the 5-year period ending on the date of the fundraising solicitation or is a successor to an organization so described at any time during such 5-year period.
(2) Exception for small organizations
(A) Annual gross receipts do not exceed $100,000
This section shall not apply to any organization the gross receipts of which in each taxable year are normally not more than $100,000.
(B) Multiple organization rule
The Secretary may treat any group of 2 or more organizations as 1 organization for purposes of subparagraph (A) where necessary or appropriate to prevent the avoidance of this section through the use of multiple organizations.
(3) Special rule for certain fraternal organizations
For purposes of paragraph (1), an organization described in section 170(c)(4) shall be treated as described in section 170(c) only with respect to solicitations for contributions or gifts which are to be used exclusively for purposes referred to in section 170(c)(4).
(c) Fundraising solicitation
For purposes of this section—
(1) In general
Except as provided in paragraph (2), the term "fundraising solicitation" means any solicitation of contributions or gifts which is made—
(A) in written or printed form,
(B) by television or radio, or
(C) by telephone.
(2) Exception for certain letters or calls
The term "fundraising solicitation" shall not include any letter or telephone call if such letter or call is not part of a coordinated fundraising campaign soliciting more than 10 persons during the calendar year.
(Added
Editorial Notes
Prior Provisions
A prior section 6113 was renumbered 6116 of this title.
Statutory Notes and Related Subsidiaries
Effective Date
§6114. Treaty-based return positions
(a) In general
Each taxpayer who, with respect to any tax imposed by this title, takes the position that a treaty of the United States overrules (or otherwise modifies) an internal revenue law of the United States shall disclose (in such manner as the Secretary may prescribe) such position—
(1) on the return of tax for such tax (or any statement attached to such return), or
(2) if no return of tax is required to be filed, in such form as the Secretary may prescribe.
(b) Waiver authority
The Secretary may waive the requirements of subsection (a) with respect to classes of cases for which the Secretary determines that the waiver will not impede the assessment and collection of tax.
(Added
Editorial Notes
Prior Provisions
A prior section 6114 was renumbered 6116 of this title.
Amendments
1990—Subsec. (b).
Statutory Notes and Related Subsidiaries
Effective Date of 1990 Amendment
Amendment by
Effective Date
§6115. Disclosure related to quid pro quo contributions
(a) Disclosure requirement
If an organization described in section 170(c) (other than paragraph (1) thereof) receives a quid pro quo contribution in excess of $75, the organization shall, in connection with the solicitation or receipt of the contribution, provide a written statement which—
(1) informs the donor that the amount of the contribution that is deductible for Federal income tax purposes is limited to the excess of the amount of any money and the value of any property other than money contributed by the donor over the value of the goods or services provided by the organization, and
(2) provides the donor with a good faith estimate of the value of such goods or services.
(b) Quid pro quo contribution
For purposes of this section, the term "quid pro quo contribution" means a payment made partly as a contribution and partly in consideration for goods or services provided to the payor by the donee organization. A quid pro quo contribution does not include any payment made to an organization, organized exclusively for religious purposes, in return for which the taxpayer receives solely an intangible religious benefit that generally is not sold in a commercial transaction outside the donative context.
(Added
Editorial Notes
Prior Provisions
A prior section 6115 was renumbered
Statutory Notes and Related Subsidiaries
Effective Date
§6116. Requirement for prisons located in United States to provide information for tax administration
(a) In general
Not later than September 15, 2012, and annually thereafter, the head of the Federal Bureau of Prisons and the head of any State agency charged with the responsibility for administration of prisons shall provide to the Secretary in electronic format a list with the information described in subsection (b) of all the inmates incarcerated within the prison system for any part of the prior 2 calendar years or the current calendar year through August 31.
(b) Information
The information with respect to each inmate is—
(1) first, middle, and last name,
(2) date of birth,
(3) institution of current incarceration or, for released inmates, most recent incarceration,
(4) prison assigned inmate number,
(5) the date of incarceration,
(6) the date of release or anticipated date of release,
(7) the date of work release,
(8) taxpayer identification number and whether the prison has verified such number,
(9) last known address, and
(10) any additional information as the Secretary may request.
(c) Format
The Secretary shall determine the electronic format of the information described in subsection (b).
(Added
Editorial Notes
Prior Provisions
A prior section 6116 was renumbered
§6117. Cross reference
For inspection of records, returns, etc., concerning gasoline or lubricating oils, see section 4102.
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
1976—
CHAPTER 62 —TIME AND PLACE FOR PAYING TAX
1 Section numbers editorially supplied.
Subchapter A—Place and Due Date for Payment of Tax
Editorial Notes
Amendments
2004—
1990—
1988—
1987—
1986—
1984—
1982—
1976—
1970—
1969—
1961—
§6151. Time and place for paying tax shown on returns
(a) General rule
Except as otherwise provided in this subchapter, when a return of tax is required under this title or regulations, the person required to make such return shall, without assessment or notice and demand from the Secretary, pay such tax to the internal revenue officer with whom the return is filed, and shall pay such tax at the time and place fixed for filing the return (determined without regard to any extension of time for filing the return).
(b) Exceptions
(1) Income tax not computed by taxpayer
If the taxpayer elects under section 6014 not to show the tax on the return, the amount determined by the Secretary as payable shall be paid within 30 days after the mailing by the Secretary to the taxpayer of a notice stating such amount and making demand therefor.
(2) Use of government depositaries
For authority of the Secretary to require payments to Government depositaries, see section 6302(c).
(c) Date fixed for payment of tax
In any case in which a tax is required to be paid on or before a certain date, or within a certain period, any reference in this title to the date fixed for payment of such tax shall be deemed a reference to the last day fixed for such payment (determined without regard to any extension of time for paying the tax).
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
1976—
Subsec. (a).
1966—Subsec. (a).
Statutory Notes and Related Subsidiaries
Effective Date of 1976 Amendment
"(1)
"(2)
"(3)
"(A)
"(B)
"(i) the date on which application for refund or credit of such overpayment is filed,
"(ii) the due date prescribed by law (determined without extensions) for filing the return of tax under
"(iii) the date of the enactment of this Act [Oct. 2, 1976].
"(C)
Effective Date of 1966 Amendment
Amendment by
[§6152. Repealed. Pub. L. 99–514, title XIV, §1404(c)(1), Oct. 22, 1986, 100 Stat. 2714 ]
Section, acts Aug. 16, 1954, ch. 736,
Statutory Notes and Related Subsidiaries
Effective Date of Repeal
Repeal applicable to taxable years beginning after Dec. 31, 1986, see section 1404(d) of
[§6153. Repealed. Pub. L. 98–369, div. A, title IV, §412(a)(3), July 18, 1984, 98 Stat. 792 ]
Section, acts Aug. 16, 1954, ch. 736,
Statutory Notes and Related Subsidiaries
Effective Date of Repeal
Repeal applicable with respect to taxable years beginning after Dec. 31, 1984, see section 414(a)(1) of
[§6154. Repealed. Pub. L. 100–203, title X, §10301(b)(1), Dec. 22, 1987, 101 Stat. 1330–429 ]
Section, acts Aug. 16, 1954, ch. 736,
Statutory Notes and Related Subsidiaries
Effective Date of Repeal
Repeal applicable to taxable years beginning after Dec. 31, 1987, see section 10301(c) of
§6155. Payment on notice and demand
(a) General rule
Upon receipt of notice and demand from the Secretary, there shall be paid at the place and time stated in such notice the amount of any tax (including any interest, additional amounts, additions to tax, and assessable penalties) stated in such notice and demand.
(b) Cross references
(1) For restrictions on assessment and collection of deficiency assessments of taxes subject to the jurisdiction of the Tax Court, see sections 6212 and 6213.
(2) For provisions relating to assessment of claims allowed in a receivership proceeding, see section 6873.
(3) For provisions relating to jeopardy assessments, see subchapter A of
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
1980—Subsec. (b)(2).
1976—
Statutory Notes and Related Subsidiaries
Effective Date of 1980 Amendment
Amendment by
[§6156. Repealed. Pub. L. 108–357, title VIII, §867(b)(1), Oct. 22, 2004, 118 Stat. 1622 ]
Section, added
A prior section 6156 was renumbered
Statutory Notes and Related Subsidiaries
Effective Date of Repeal
Repeal applicable to taxable periods beginning after Oct. 22, 2004, see section 867(e) of
§6157. Payment of Federal unemployment tax on quarterly or other time period basis
(a) General rule
Every person who for the calendar year is an employer (as defined in section 3306(a)) shall—
(1) if the person is such an employer for the preceding calendar year (determined by only taking into account wages paid and employment during such preceding calendar year), compute the tax imposed by section 3301 for each of the first 3 calendar quarters in the calendar year on wages paid for services with respect to which the person is such an employer for such preceding calendar year (as so determined), and
(2) if the person is not such an employer for the preceding calendar year with respect to any services (as so determined), compute the tax imposed by section 3301 on wages paid for services with respect to which the person is not such an employer for the preceding calendar year (as so determined)—
(A) for the period beginning with the first day of the calendar year and ending with the last day of the calendar quarter (excluding the last calendar quarter) in which such person becomes such an employer with respect to such services, and
(B) for the third calendar quarter of such year, if the period specified in subparagraph (A) includes only the first two calendar quarters of the calendar year.
The tax for any calendar quarter or other period shall be computed as provided in subsection (b) and the tax as so computed shall, except as otherwise provided in subsection (c), be paid in such manner and at such time as may be provided in regulations prescribed by the Secretary.
(b) Computation of tax
The tax for any calendar quarter or other period referred to in paragraph (1) or (2) of subsection (a) shall be computed by multiplying the amount of wages (as defined in section 3306(b)) paid in such calendar quarter or other period by 0.6 percent. In the case of wages paid in any calendar quarter or other period during a calendar year to which paragraph (1) of section 3301 applies, the amount of such wages shall be multiplied by 0.8 percent in lieu of 0.6 percent.
(c) Special rule where accumulated amount does not exceed $100
Nothing in this section shall require the payment of tax with respect to any calendar quarter or other period if the tax under section 3301 for such period, plus any unpaid amounts for prior periods in the calendar year, does not exceed $100.
(Added
Editorial Notes
Prior Provisions
A prior section 6157, act Aug. 16, 1954, ch. 736,
Amendments
1989—Subsec. (a).
1988—Subsec. (d).
1983—Subsec. (d).
1982—Subsec. (b).
1976—Subsec. (a).
Subsec. (b).
Subsecs. (c), (d).
1972—Subsec. (b).
1970—Subsec. (a)(1).
Subsec. (b).
Statutory Notes and Related Subsidiaries
Effective Date of 1988 Amendment
Amendment by
Effective Date of 1983 Amendment
Amendment by
Effective Date of 1982 Amendment
Amendment by section 271(b)(2)(C) of
Amendment by section 271(c)(3)(C) of
Effective Date of 1976 Amendment
Amendment by section 114(b) of
Amendment by section 211(e)(3) of
Effective Date of 1970 Amendment
Amendment by section 101(b)(1) of
Effective Date
Extension of Time for Payment of Additional FUTA Taxes
"(a)
"(b)
"(c)
"(1)
"(A) in a State which has been declared a credit reduction State for taxable years beginning in 1991, and
"(B) who did not receive notice of such credit reduction before December 1, 1991 from either the State unemployment compensation agency or the Internal Revenue Service.
"(2)
"(d)
Wages Paid in 1970 Calendar Quarters Ending Before August 10, 1970
[§6158. Repealed. Pub. L. 101–508, title XI, §11801(a)(44), Nov. 5, 1990, 104 Stat. 1388–521 ]
Section, added
Statutory Notes and Related Subsidiaries
Savings Provision
For provisions that nothing in repeal by
§6159. Agreements for payment of tax liability in installments
(a) Authorization of agreements
The Secretary is authorized to enter into written agreements with any taxpayer under which such taxpayer is allowed to make payment on any tax in installment payments if the Secretary determines that such agreement will facilitate full or partial collection of such liability.
(b) Extent to which agreements remain in effect
(1) In general
Except as otherwise provided in this subsection, any agreement entered into by the Secretary under subsection (a) shall remain in effect for the term of the agreement.
(2) Inadequate information or jeopardy
The Secretary may terminate any agreement entered into by the Secretary under subsection (a) if—
(A) information which the taxpayer provided to the Secretary prior to the date such agreement was entered into was inaccurate or incomplete, or
(B) the Secretary believes that collection of any tax to which an agreement under this section relates is in jeopardy.
(3) Subsequent change in financial conditions
If the Secretary makes a determination that the financial condition of a taxpayer with whom the Secretary has entered into an agreement under subsection (a) has significantly changed, the Secretary may alter, modify, or terminate such agreement.
(4) Failure to pay an installment or any other tax liability when due or to provide requested financial information
The Secretary may alter, modify, or terminate an agreement entered into by the Secretary under subsection (a) in the case of the failure of the taxpayer—
(A) to pay any installment at the time such installment payment is due under such agreement,
(B) to pay any other tax liability at the time such liability is due, or
(C) to provide a financial condition update as requested by the Secretary.
(5) Notice requirements
The Secretary may not take any action under paragraph (2), (3), or (4) unless—
(A) a notice of such action is provided to the taxpayer not later than the day 30 days before the date of such action, and
(B) such notice includes an explanation why the Secretary intends to take such action.
The preceding sentence shall not apply in any case in which the Secretary believes that collection of any tax to which an agreement under this section relates is in jeopardy.
(c) Secretary required to enter into installment agreements in certain cases
In the case of a liability for tax of an individual under subtitle A, the Secretary shall enter into an agreement to accept the full payment of such tax in installments if, as of the date the individual offers to enter into the agreement—
(1) the aggregate amount of such liability (determined without regard to interest, penalties, additions to the tax, and additional amounts) does not exceed $10,000;
(2) the taxpayer (and, if such liability relates to a joint return, the taxpayer's spouse) has not, during any of the preceding 5 taxable years—
(A) failed to file any return of tax imposed by subtitle A;
(B) failed to pay any tax required to be shown on any such return; or
(C) entered into an installment agreement under this section for payment of any tax imposed by subtitle A,
(3) the Secretary determines that the taxpayer is financially unable to pay such liability in full when due (and the taxpayer submits such information as the Secretary may require to make such determination);
(4) the agreement requires full payment of such liability within 3 years; and
(5) the taxpayer agrees to comply with the provisions of this title for the period such agreement is in effect.
(d) Secretary required to review installment agreements for partial collection every two years
In the case of an agreement entered into by the Secretary under subsection (a) for partial collection of a tax liability, the Secretary shall review the agreement at least once every 2 years.
(e) Administrative review
The Secretary shall establish procedures for an independent administrative review of terminations of installment agreements under this section for taxpayers who request such a review.
(f) Installment agreement fees
(1) Limitation on fee amount
The amount of any fee imposed on an installment agreement under this section may not exceed the amount of such fee as in effect on the date of the enactment of this subsection.
(2) Waiver or reimbursement
In the case of any taxpayer with an adjusted gross income, as determined for the most recent year for which such information is available, which does not exceed 250 percent of the applicable poverty level (as determined by the Secretary)—
(A) if the taxpayer has agreed to make payments under the installment agreement by electronic payment through a debit instrument, no fee shall be imposed on an installment agreement under this section, and
(B) if the taxpayer is unable to make payments under the installment agreement by electronic payment through a debit instrument, the Secretary shall, upon completion of the installment agreement, pay the taxpayer an amount equal to any such fees imposed.
(g) Cross reference
For rights to administrative review and appeal, see section 7122(e).
(Added
Editorial Notes
References in Text
The date of the enactment of this subsection, referred to in subsec. (f)(1), is the date of enactment of
Amendments
2018—Subsecs. (f), (g).
2006—Subsec. (f).
2004—Subsec. (a).
Subsec. (c).
Subsec. (d) to (f).
1998—Subsec. (c).
Subsec. (d).
Subsec. (e).
1996—Subsec. (b)(3).
"(A)
"(B)
"(i) notice of such determination is provided to the taxpayer no later than 30 days prior to the date of such action, and
"(ii) such notice includes the reasons why the Secretary believes a significant change in the financial condition of the taxpayer has occurred."
Subsec. (b)(5).
Subsec. (c).
Statutory Notes and Related Subsidiaries
Effective Date of 2018 Amendment
Effective Date of 2006 Amendment
Effective Date of 2004 Amendment
Effective Date of 1998 Amendments
Amendment by
Amendment by section 3462(c)(2) of
Effective Date of 1996 Amendment
Effective Date
Statements Regarding Installment Agreements
Subchapter B—Extensions of Time for Payment
Editorial Notes
Amendments
1981—
1976—
1966—
1958—
§6161. Extension of time for paying tax
(a) Amount determined by taxpayer on return
(1) General rule
The Secretary, except as otherwise provided in this title, may extend the time for payment of the amount of the tax shown, or required to be shown, on any return or declaration required under authority of this title (or any installment thereof), for a reasonable period not to exceed 6 months (12 months in the case of estate tax) from the date fixed for payment thereof. Such extension may exceed 6 months in the case of a taxpayer who is abroad.
(2) Estate tax
The Secretary may, for reasonable cause, extend the time for payment of—
(A) any part of the amount determined by the executor as the tax imposed by
(B) any part of any installment under section 6166 (including any part of a deficiency prorated to any installment under such section).
for a reasonable period not in excess of 10 years from the date prescribed by section 6151(a) for payment of the tax (or, in the case of an amount referred to in subparagraph (B), if later, not beyond the date which is 12 months after the due date for the last installment).
(b) Amount determined as deficiency
(1) Income, gift, and certain other taxes
Under regulations prescribed by the Secretary, the Secretary may extend the time for the payment of the amount determined as a deficiency of a tax imposed by
(2) Estate tax
Under regulations prescribed by the Secretary, the Secretary may, for reasonable cause, extend the time for the payment of any deficiency of a tax imposed by
(3) No extension for certain deficiencies
No extension shall be granted under this subsection for any deficiency if the deficiency is due to negligence, to intentional disregard of rules and regulations, or to fraud with intent to evade tax.
(c) Claims in cases under title 11 of the United States Code or in receivership proceedings
Extensions of time for payment of any portion of a claim for tax under
(d) Cross references
(1) Period of limitation
For extension of the period of limitation in case of an extension under subsection (a)(2) or subsection (b)(2), see section 6503(d).
(2) Security
For authority of the Secretary to require security in case of an extension under subsection (a)(2) or subsection (b), see section 6165.
(3) Postponement of certain acts
For time for performing certain acts postponed by reason of war, see section 7508, and by reason of Presidentially declared disaster or terroristic or military action, see section 7508A.
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
2002—Subsec. (d)(3).
1988—Subsec. (b)(1).
1981—Subsec. (a)(2)(B).
1980—Subsec. (b)(1).
Subsec. (c).
1976—Subsec. (a)(1).
Subsec. (a)(2).
Subsec. (b).
Subsec. (d)(2).
1974—Subsec. (b).
1970—Subsec. (a)(1).
1969—Subsec. (b).
1958—Subsec. (a)(2).
Statutory Notes and Related Subsidiaries
Effective Date of 2002 Amendment
Amendment by
Effective Date of 1988 Amendment
Amendment by
Effective Date of 1981 Amendment
Amendment by
Effective Date of 1980 Amendments
Amendment by
"(1)
"(2)
Effective Date of 1976 Amendment
Amendment by section 1307(d)(2)(C) of
For effective date of amendment by section 1605(b)(3) of
Amendment by section 2004(c)(1), (2) of
Effective Date of 1974 Amendment
Amendment by
Effective Date of 1970 Amendment
Amendment by
Effective Date of 1969 Amendment
Amendment by
Effective Date of 1958 Amendment
[§6162. Repealed. Pub. L. 94–455, title XIX, §1906(a)(12), Oct. 4, 1976, 90 Stat. 1825 ]
Section, act Aug. 16, 1954, ch. 736,
Statutory Notes and Related Subsidiaries
Effective Date of Repeal
Repeal effective on first day of month which begins more than 90 days after Oct. 4, 1976, see section 1906(d)(1) of
§6163. Extension of time for payment of estate tax on value of reversionary or remainder interest in property
(a) Extension permitted
If the value of a reversionary or remainder interest in property is included under
(b) Extension for reasonable cause
At the expiration of the period of postponement provided for in subsection (a), the Secretary may, for reasonable cause, extend the time for payment for a reasonable period or periods not in excess of 3 years from the expiration of the period of postponement provided in subsection (a).
(c) Cross reference
For authority of the Secretary to require security in the case of an extension under this section, see section 6165.
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
1976—Subsec. (a).
Subsec. (b).
Subsec. (c).
1975—Subsec. (c).
1964—Subsec. (b).
1958—Subsecs. (b), (c).
Statutory Notes and Related Subsidiaries
Effective Date of 1976 Amendment
Amendment by section 2004(c)(3) of
Effective Date of 1975 Amendment
Amendment by
Effective Date of 1964 Amendment
"(1) The amendment made by subsection (a) [amending this section] shall apply in the case of any reversionary or remainder interest only if the time for payment of the tax under
"(2) The amendment made by subsection (b) [amending section 925 of I.R.C. 1939] shall apply in the case of any reversionary or remainder interest only if the time for payment of the tax under
Effective Date of 1958 Amendment
§6164. Extension of time for payment of taxes by corporations expecting carrybacks
(a) In general
If a corporation, in any taxable year, files with the Secretary a statement, as provided in subsection (b), with respect to an expected net operating loss carryback from such taxable year, the time for payment of all or part of any tax imposed by subtitle A for the taxable year immediately preceding such taxable year shall be extended, to the extent and subject to the conditions and limitations hereinafter provided in this section.
(b) Contents of statement
The statement shall be filed at such time and in such manner and form as the Secretary may by regulations prescribe. Such statement shall set forth that the corporation expects to have a net operating loss carryback, as provided in section 172(b), from the taxable year in which such statement is made, and shall set forth, in such detail and with such supporting data and explanation as such regulations shall require—
(1) the estimated amount of the expected net operating loss;
(2) the reasons, facts, and circumstances which cause the corporation to expect such net operating loss;
(3) the amount of the reduction of the tax previously determined attributable to the expected carryback, such tax previously determined being ascertained in accordance with the method prescribed in section 1314(a); and such reduction being determined by applying the expected carryback in the manner provided by law to the items on the basis of which such tax was determined;
(4) the tax and the part thereof the time for payment of which is to be extended; and
(5) such other information for purposes of carrying out the provisions of this section as may be required by such regulations.
The Secretary shall, upon request, furnish a receipt for any statement filed, which shall set forth the date of such filing.
(c) Amount to which extension relates and installment payments
The amount the time for payment of which may be extended under subsection (a) with respect to any tax shall not exceed the amount of such tax shown on the return, increased by any amount assessed as a deficiency (or as interest or addition to the tax) prior to the date of filing the statement and decreased by any amount paid or required to be paid prior to the date of such filing, and the total amount of the tax the time for payment of which may be extended shall not exceed the amount stated under subsection (b)(3). For purposes of this subsection, an amount shall not be considered as required to be paid unless shown on the return or assessed as a deficiency (or as interest or addition to the tax), and an amount assessed as a deficiency (or as interest or addition to the tax) shall be considered to be required to be paid prior to the date of filing of the statement if the 10th day after notice and demand for its payment occurs prior to such date. If an extension of time under this section relates to only a part of the tax, the time for payment of the remainder shall be the date on which payment would have been required if such remainder had been the tax.
(d) Period of extension
The extension of time for payment provided in this section shall expire—
(1) on the last day of the month in which falls the last date prescribed by law (including any extension of time granted the taxpayer) for the filing of the return for the taxable year of the expected net operating loss, or
(2) if an application for tentative carryback adjustment provided in section 6411 with respect to such loss is filed before the expiration of the period prescribed in paragraph (1), on the date on which notice is mailed by certified mail or registered mail by the Secretary to the taxpayer that such application is allowed or disallowed in whole or in part.
(e) Revised statements
Each statement filed under subsection (a) with respect to any taxable year shall be in lieu of the last statement previously filed with respect to such year. If the amount the time for payment of which is extended under a statement filed is less than the amount under the last statement previously filed, the extension of time shall be terminated as to the difference between the two amounts.
(f) Termination
The Secretary is not required to make any examination of the statement, but he may make such examination thereof as he deems necessary and practicable. The Secretary shall terminate the extension as to any part of the amount to which it relates which he deems should be terminated because, upon such examination, he believes that, as of the time such examination is made, all or any part of the statement clearly is in a material respect erroneous or unreasonable.
(g) Payments on termination
If an extension of time is terminated under subsection (e) or (f) with respect to any amount, then—
(1) no further extension of time shall be made under this section with respect to such amount, and
(2) the time for payment of such amount shall be considered to be the date on which payment would have been required if there had been no extension with respect to such amount.
(h) Jeopardy
If the Secretary believes that collection of the amount to which an extension under this section relates is in jeopardy, he shall immediately terminate such extension, and notice and demand shall be made by him for payment of such amount.
(i) Consolidated returns
If the corporation seeking an extension of time under this section made or was required to make a consolidated return, either for the taxable year within which the net operating loss arises or for the preceding taxable year affected by such loss, the provisions of such section shall apply only to such extent and subject to such conditions, limitations, and exceptions as the Secretary may by regulations prescribe.
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
1982—Subsec. (c).
Subsec. (g)(2).
1976—Subsecs. (a), (b), (d), (f), (h), (i).
1958—Subsec. (d)(2).
Statutory Notes and Related Subsidiaries
Effective Date of 1982 Amendment
Amendment by
Effective Date of 1958 Amendment
Amendment by
§6165. Bonds where time to pay tax or deficiency has been extended
In the event the Secretary grants any extension of time within which to pay any tax or any deficiency therein, the Secretary may require the taxpayer to furnish a bond in such amount (not exceeding double the amount with respect to which the extension is granted) conditioned upon the payment of the amount extended in accordance with the terms of such extension.
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
1976—
§6166. Extension of time for payment of estate tax where estate consists largely of interest in closely held business
(a) 5-year deferral; 10-year installment payment
(1) In general
If the value of an interest in a closely held business which is included in determining the gross estate of a decedent who was (at the date of his death) a citizen or resident of the United States exceeds 35 percent of the adjusted gross estate, the executor may elect to pay part or all of the tax imposed by section 2001 in 2 or more (but not exceeding 10) equal installments.
(2) Limitation
The maximum amount of tax which may be paid in installments under this subsection shall be an amount which bears the same ratio to the tax imposed by section 2001 (reduced by the credits against such tax) as—
(A) the closely held business amount, bears to
(B) the amount of the adjusted gross estate.
(3) Date for payment of installments
If an election is made under paragraph (1), the first installment shall be paid on or before the date selected by the executor which is not more than 5 years after the date prescribed by section 6151(a) for payment of the tax, and each succeeding installment shall be paid on or before the date which is 1 year after the date prescribed by this paragraph for payment of the preceding installment.
(b) Definitions and special rules
(1) Interest in closely held business
For purposes of this section, the term "interest in a closely held business" means—
(A) an interest as a proprietor in a trade or business carried on as a proprietorship;
(B) an interest as a partner in a partnership carrying on a trade or business, if—
(i) 20 percent or more of the total capital interest in such partnership is included in determining the gross estate of the decedent, or
(ii) such partnership had 45 or fewer partners; or
(C) stock in a corporation carrying on a trade or business if—
(i) 20 percent or more in value of the voting stock of such corporation is included in determining the gross estate of the decedent, or
(ii) such corporation had 45 or fewer shareholders.
(2) Rules for applying paragraph (1)
For purposes of paragraph (1)—
(A) Time for testing
Determinations shall be made as of the time immediately before the decedent's death.
(B) Certain interests held by husband and wife
Stock or a partnership interest which—
(i) is community property of a husband and wife (or the income from which is community income) under the applicable community property law of a State, or
(ii) is held by a husband and wife as joint tenants, tenants by the entirety, or tenants in common,
shall be treated as owned by one shareholder or one partner, as the case may be.
(C) Indirect ownership
Property owned, directly or indirectly, by or for a corporation, partnership, estate, or trust shall be considered as being owned proportionately by or for its shareholders, partners, or beneficiaries. For purposes of the preceding sentence, a person shall be treated as a beneficiary of any trust only if such person has a present interest in the trust.
(D) Certain interests held by members of decedent's family
All stock and all partnership interests held by the decedent or by any member of his family (within the meaning of section 267(c)(4)) shall be treated as owned by the decedent.
(3) Farmhouses and certain other structures taken into account
For purposes of the 35-percent requirement of subsection (a)(1), an interest in a closely held business which is the business of farming includes an interest in residential buildings and related improvements on the farm which are occupied on a regular basis by the owner or lessee of the farm or by persons employed by such owner or lessee for purposes of operating or maintaining the farm.
(4) Value
For purposes of this section, value shall be value determined for purposes of
(5) Closely held business amount
For purposes of this section, the term "closely held business amount" means the value of the interest in a closely held business which qualifies under subsection (a)(1).
(6) Adjusted gross estate
For purposes of this section, the term, "adjusted gross estate" means the value of the gross estate reduced by the sum of the amounts allowable as a deduction under section 2053 or 2054. Such sum shall be determined on the basis of the facts and circumstances in existence on the date (including extensions) for filing the return of tax imposed by section 2001 (or, if earlier, the date on which such return is filed).
(7) Partnership interests and stock which is not readily tradable
(A) In general
If the executor elects the benefits of this paragraph (at such time and in such manner as the Secretary shall by regulations prescribe), then—
(i) for purposes of paragraph (1)(B)(i) or (1)(C)(i) (whichever is appropriate) and for purposes of subsection (c), any capital interest in a partnership and any non-readily-tradable stock which (after the application of paragraph (2)) is treated as owned by the decedent shall be treated as included in determining the value of the decedent's gross estate,
(ii) the executor shall be treated as having selected under subsection (a)(3) the date prescribed by section 6151(a), and
(iii) for purposes of applying section 6601(j), the 2-percent portion (as defined in such section) shall be treated as being zero.
(B) Non-readily-tradable stock defined
For purposes of this paragraph, the term "non-readily-tradable stock" means stock for which, at the time of the decedent's death, there was no market on a stock exchange or in an over-the-counter market.
(8) Stock in holding company treated as business company stock in certain cases
(A) In general
If the executor elects the benefits of this paragraph, then—
(i) Holding company stock treated as business company stock
For purposes of this section, the portion of the stock of any holding company which represents direct ownership (or indirect ownership through 1 or more other holding companies) by such company in a business company shall be deemed to be stock in such business company.
(ii) 5-year deferral for principal not to apply
The executor shall be treated as having selected under subsection (a)(3) the date prescribed by section 6151(a).
(iii) 2-percent interest rate not to apply
For purposes of applying section 6601(j), the 2-percent portion (as defined in such section) shall be treated as being zero.
(B) All stock must be non-readily-tradable stock
(i) In general
No stock shall be taken into account for purposes of applying this paragraph unless it is non-readily-tradable stock (within the meaning of paragraph (7)(B)).
(ii) Special application where only holding company stock is non-readily-tradable stock
If the requirements of clause (i) are not met, but all of the stock of each holding company taken into account is non-readily-tradable, then this paragraph shall apply, but subsection (a)(1) shall be applied by substituting "5" for "10".
(C) Application of voting stock requirement of paragraph (1)(C)(i)
For purposes of clause (i) of paragraph (1)(C), the deemed stock resulting from the application of subparagraph (A) shall be treated as voting stock to the extent that voting stock in the holding company owns directly (or through the voting stock of 1 or more other holding companies) voting stock in the business company.
(D) Definitions
For purposes of this paragraph—
(i) Holding company
The term "holding company" means any corporation holding stock in another corporation.
(ii) Business company
The term "business company" means any corporation carrying on a trade or business.
(9) Deferral not available for passive assets
(A) In general
For purposes of subsection (a)(1) and determining the closely held business amount (but not for purposes of subsection (g)), the value of any interest in a closely held business shall not include the value of that portion of such interest which is attributable to passive assets held by the business.
(B) Passive asset defined
For purposes of this paragraph—
(i) In general
The term "passive asset" means any asset other than an asset used in carrying on a trade or business.
(ii) Stock treated as passive asset
The term "passive asset" includes any stock in another corporation unless—
(I) such stock is treated as held by the decedent by reason of an election under paragraph (8), and
(II) such stock qualified under subsection (a)(1).
(iii) Exception for active corporations
If—
(I) a corporation owns 20 percent or more in value of the voting stock of another corporation, or such other corporation has 45 or fewer shareholders, and
(II) 80 percent or more of the value of the assets of each such corporation is attributable to assets used in carrying on a trade or business,
then such corporations shall be treated as 1 corporation for purposes of clause (ii). For purposes of applying subclause (II) to the corporation holding the stock of the other corporation, such stock shall not be taken into account.
(10) Stock in qualifying lending and finance business treated as stock in an active trade or business company
(A) In general
If the executor elects the benefits of this paragraph, then—
(i) Stock in qualifying lending and finance business treated as stock in an active trade or business company
For purposes of this section, any asset used in a qualifying lending and finance business shall be treated as an asset which is used in carrying on a trade or business.
(ii) 5-year deferral for principal not to apply
The executor shall be treated as having selected under subsection (a)(3) the date prescribed by section 6151(a).
(iii) 5 equal installments allowed
For purposes of applying subsection (a)(1), "5" shall be substituted for "10".
(B) Definitions
For purposes of this paragraph—
(i) Qualifying lending and finance business
The term "qualifying lending and finance business" means a lending and finance business, if—
(I) based on all the facts and circumstances immediately before the date of the decedent's death, there was substantial activity with respect to the lending and finance business, or
(II) during at least 3 of the 5 taxable years ending before the date of the decedent's death, such business had at least 1 full-time employee substantially all of whose services were the active management of such business, 10 full-time, nonowner employees substantially all of whose services were directly related to such business, and $5,000,000 in gross receipts from activities described in clause (ii).
(ii) Lending and finance business
The term "lending and finance business" means a trade or business of—
(I) making loans,
(II) purchasing or discounting accounts receivable, notes, or installment obligations,
(III) engaging in rental and leasing of real and tangible personal property, including entering into leases and purchasing, servicing, and disposing of leases and leased assets,
(IV) rendering services or making facilities available in the ordinary course of a lending or finance business, and
(V) rendering services or making facilities available in connection with activities described in subclauses (I) through (IV) carried on by the corporation rendering services or making facilities available, or another corporation which is a member of the same affiliated group (as defined in section 1504 without regard to section 1504(b)(3)).
(iii) Limitation
The term "qualifying lending and finance business" shall not include any interest in an entity, if the stock or debt of such entity or a controlled group (as defined in section 267(f)(1)) of which such entity was a member was readily tradable on an established securities market or secondary market (as defined by the Secretary) at any time within 3 years before the date of the decedent's death.
(c) Special rule for interest in 2 or more closely held businesses
For purposes of this section, interest in 2 or more closely held businesses, with respect to each of which there is included in determining the value of the decedent's gross estate 20 percent or more of the total value of each such business, shall be treated as an interest in a single closely held business. For purposes of the 20-percent requirement of the preceding sentence, an interest in a closely held business which represents the surviving spouse's interest in property held by the decedent and the surviving spouse as community property or as joint tenants, tenants by the entirety, or tenants in common shall be treated as having been included in determining the value of the decedent's gross estate.
(d) Election
Any election under subsection (a) shall be made not later than the time prescribed by section 6075(a) for filing the return of tax imposed by section 2001 (including extensions thereof), and shall be made in such manner as the Secretary shall by regulations prescribe. If an election under subsection (a) is made, the provisions of this subtitle shall apply as though the Secretary were extending the time for payment of the tax.
(e) Proration of deficiency to installments
If an election is made under subsection (a) to pay any part of the tax imposed by section 2001 in installments and a deficiency has been assessed, the deficiency shall (subject to the limitation provided by subsection (a)(2)) be prorated to the installments payable under subsection (a). The part of the deficiency so prorated to any installment the date for payment of which has not arrived shall be collected at the same time as, and as a part of, such installment. The part of the deficiency so prorated to any installment the date for payment of which has arrived shall be paid upon notice and demand from the Secretary. This subsection shall not apply if the deficiency is due to negligence, to intentional disregard of rules and regulations, or to fraud with intent to evade tax.
(f) Time for payment of interest
If the time for payment of any amount of tax has been extended under this section—
(1) Interest for first 5 years
Interest payable under section 6601 of any unpaid portion of such amount attributable to the first 5 years after the date prescribed by section 6151(a) for payment of the tax shall be paid annually.
(2) Interest for periods after first 5 years
Interest payable under section 6601 on any unpaid portion of such amount attributable to any period after the 5-year period referred to in paragraph (1) shall be paid annually at the same time as, and as a part of, each installment payment of the tax.
(3) Interest in the case of certain deficiencies
In the case of a deficiency to which subsection (e) applies which is assessed after the close of the 5-year period referred to in paragraph (1), interest attributable to such 5-year period, and interest assigned under paragraph (2) to any installment the date for payment of which has arrived on or before the date of the assessment of the deficiency, shall be paid upon notice and demand from the Secretary.
(4) Selection of shorter period
If the executor has selected a period shorter than 5 years under subsection (a)(3), such shorter period shall be substituted for 5 years in paragraphs (1), (2), and (3) of this subsection.
(g) Acceleration of payment
(1) Disposition of interest; withdrawal of funds from business
(A) If—
(i)(I) any portion of an interest in a closely held business which qualifies under subsection (a)(1) is distributed, sold, exchanged, or otherwise disposed of, or
(II) money and other property attributable to such an interest is withdrawn from such trade or business, and
(ii) the aggregate of such distributions, sales, exchanges, or other dispositions and withdrawals equals or exceeds 50 percent of the value of such interest,
then the extension of time for payment of tax provided in subsection (a) shall cease to apply, and the unpaid portion of the tax payable in installments shall be paid upon notice and demand from the Secretary.
(B) In the case of a distribution in redemption of stock to which section 303 (or so much of section 304 as relates to section 303) applies—
(i) the redemption of such stock, and the withdrawal of money and other property distributed in such redemption, shall not be treated as a distribution or withdrawal for purposes of subparagraph (A), and
(ii) for purposes of subparagraph (A), the value of the interest in the closely held business shall be considered to be such value reduced by the value of the stock redeemed.
This subparagraph shall apply only if, on or before the date prescribed by subsection (a)(3) for the payment of the first installment which becomes due after the date of the distribution (or, if earlier, on or before the day which is 1 year after the date of the distribution), there is paid an amount of the tax imposed by section 2001 not less than the amount of money and other property distributed.
(C) Subparagraph (A)(i) does not apply to an exchange of stock pursuant to a plan of reorganization described in subparagraph (D), (E), or (F) of section 368(a)(1) nor to an exchange to which section 355 (or so much of section 356 as relates to section 355) applies; but any stock received in such an exchange shall be treated for purposes of subparagraph (A)(i) as an interest qualifying under subsection (a)(1).
(D) Subparagraph (A)(i) does not apply to a transfer of property of the decedent to a person entitled by reason of the decedent's death to receive such property under the decedent's will, the applicable law of descent and distribution, or a trust created by the decedent. A similar rule shall apply in the case of a series of subsequent transfers of the property by reason of death so long as each transfer is to a member of the family (within the meaning of section 267(c)(4)) of the transferor in such transfer.
(E) Changes in interest in holding company
If any stock in a holding company is treated as stock in a business company by reason of subsection (b)(8)(A)—
(i) any disposition of any interest in such stock in such holding company which was included in determining the gross estate of the decedent, or
(ii) any withdrawal of any money or other property from such holding company attributable to any interest included in determining the gross estate of the decedent,
shall be treated for purposes of subparagraph (A) as a disposition of (or a withdrawal with respect to) the stock qualifying under subsection (a)(1).
(F) Changes in interest in business company
If any stock in a holding company is treated as stock in a business company by reason of subsection (b)(8)(A)—
(i) any disposition of any interest in such stock in the business company by such holding company, or
(ii) any withdrawal of any money or other property from such business company attributable to such stock by such holding company owning such stock,
shall be treated for purposes of subparagraph (A) as a disposition of (or a withdrawal with respect to) the stock qualifying under subsection (a)(1).
(2) Undistributed income of estate
(A) If an election is made under this section and the estate has undistributed net income for any taxable year ending on or after the due date for the first installment, the executor shall, on or before the date prescribed by law for filing the income tax return for such taxable year (including extensions thereof), pay an amount equal to such undistributed net income in liquidation of the unpaid portion of the tax payable in installments.
(B) For purposes of subparagraph (A), the undistributed net income of the estate for any taxable year is the amount by which the distributable net income of the estate for such taxable year (as defined in section 643) exceeds the sum of—
(i) the amounts for such taxable year specified in paragraphs (1) and (2) of section 661(a) (relating to deductions for distributions, etc.);
(ii) the amount of tax imposed for the taxable year on the estate under
(iii) the amount of the tax imposed by section 2001 (including interest) paid by the executor during the taxable year (other than any amount paid pursuant to this paragraph).
(C) For purposes of this paragraph, if any stock in a corporation is treated as stock in another corporation by reason of subsection (b)(8)(A), any dividends paid by such other corporation to the corporation shall be treated as paid to the estate of the decedent to the extent attributable to the stock qualifying under subsection (a)(1).
(3) Failure to make payment of principal or interest
(A) In general
Except as provided in subparagraph (B), if any payment of principal or interest under this section is not paid on or before the date fixed for its payment by this section (including any extension of time), the unpaid portion of the tax payable in installments shall be paid upon notice and demand from the Secretary.
(B) Payment within 6 months
If any payment of principal or interest under this section is not paid on or before the date determined under subparagraph (A) but is paid within 6 months of such date—
(i) the provisions of subparagraph (A) shall not apply with respect to such payment,
(ii) the provisions of section 6601(j) shall not apply with respect to the determination of interest on such payment, and
(iii) there is imposed a penalty in an amount equal to the product of—
(I) 5 percent of the amount of such payment, multiplied by
(II) the number of months (or fractions thereof) after such date and before payment is made.
The penalty imposed under clause (iii) shall be treated in the same manner as a penalty imposed under subchapter B of
(h) Election in case of certain deficiencies
(1) In general
If—
(A) a deficiency in the tax imposed by section 2001 is assessed,
(B) the estate qualifies under subsection (a)(1), and
(C) the executor has not made an election under subsection (a),
the executor may elect to pay the deficiency in installments. This subsection shall not apply if the deficiency is due to negligence, to intentional disregard of rules and regulations, or to fraud with intent to evade tax.
(2) Time of election
An election under this subsection shall be made not later than 60 days after issuance of notice and demand by the Secretary for the payment of the deficiency, and shall be made in such manner as the Secretary shall by regulations prescribe.
(3) Effect of election on payment
If an election is made under this subsection, the deficiency shall (subject to the limitation provided by subsection (a)(2)) be prorated to the installments which would have been due if an election had been timely made under subsection (a) at the time the estate tax return was filed. The part of the deficiency so prorated to any installment the date for payment of which would have arrived shall be paid at the time of the making of the election under this subsection. The portion of the deficiency so prorated to installments the date for payment of which would not have so arrived shall be paid at the time such installments would have been due if such an election had been made.
(i) Special rule for certain direct skips
To the extent that an interest in a closely held business is the subject of a direct skip (within the meaning of section 2612(c)) occurring at the same time as and as a result of the decedent's death, then for purposes of this section any tax imposed by section 2601 on the transfer of such interest shall be treated as if it were additional tax imposed by section 2001.
(j) Regulations
The Secretary shall prescribe such regulations as may be necessary to the application of this section.
(k) Cross references
(1) Security
For authority of the Secretary to require security in the case of an extension under this section, see section 6165.
(2) Lien
For special lien (in lieu of bond) in the case of an extension under this section, see section 6324A.
(3) Period of limitation
For extension of the period of limitation in the case of an extension under this section, see section 6503(d).
(4) Interest
For provisions relating to interest on tax payable in installments under this section, see subsection (j) of section 6601.
(5) Transfers within 3 years of death
For special rule for qualifying an estate under this section where property has been transferred within 3 years of decedent's death, see section 2035(c)(2).
(Added
Editorial Notes
Prior Provisions
A prior section 6166 was renumbered
Amendments
2001—Subsec. (b)(1)(B)(ii), (C)(ii).
Subsec. (b)(8)(B).
Subsec. (b)(9)(B)(iii)(I).
Subsec. (b)(10).
2000—Subsec. (k)(5).
1998—Subsec. (b)(7)(A)(iii).
Subsec. (b)(8)(A)(iii).
1997—Subsec. (b)(7)(A)(iii).
Subsec. (b)(8)(A)(iii).
1996—Subsec. (k)(6).
1986—Subsecs. (i) to (k).
1984—Subsec. (b)(8).
Subsec. (b)(9).
Subsec. (g)(1)(E), (F).
Subsec. (g)(2)(C).
Subsec. (j)(6).
1983—Subsec. (b)(3).
Subsec. (g)(1)(B)(i).
Subsec. (g)(1)(B)(ii).
Subsec. (j)(5).
1981—
Subsec. (a).
Subsec. (c).
Subsec. (g)(1)(A).
Subsec. (g)(1)(D).
Subsec. (g)(3).
1978—Subsec. (b)(2)(D).
Subsec. (b)(7).
Statutory Notes and Related Subsidiaries
Effective Date of 2001 Amendment
Effective Date of 1998 Amendment
Amendment by
Effective Date of 1997 Amendment
Amendment by
Effective Date of 1986 Amendment
Amendment by
Effective Date of 1984 Amendment
Amendment by section 544(b)(4) of
"(1)
"(2)
"(A)
"(i) a corporation has 15 or fewer shareholders on June 22, 1984, and at all times thereafter before the date of the decedent's death, and
"(ii) stock of such corporation is included in the gross estate of the decedent,
then all other corporations all of the stock of which is owned directly or indirectly by the corporation described in clauses (i) and (ii) shall be treated as one corporation for purposes of section 6166 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954].
"(B)
Effective Date of 1983 Amendment
Amendment by
Effective Date of 1981 Amendment
"(1)
"(2)
Effective Date of 1978 Amendment
Effective Date
Land Diverted Under 1983 Payment-in-Kind Program
Land diverted from production of agricultural commodities under a 1983 payment-in-kind program to be treated, for purposes of this section, as used during the 1983 crop year by qualified taxpayers in the active conduct of the trade or business of farming, with qualified taxpayers who materially participate in the diversion and devotion to conservation uses under a 1983 payment-in-kind program to be treated as materially participating in the operation of such land during the 1983 crop year, see section 3 of
[§6166A. Repealed. Pub. L. 97–34, title IV, §422(d), Aug. 13, 1981, 95 Stat. 315 ]
Section, added
Statutory Notes and Related Subsidiaries
Effective Date of Repeal
Repeal applicable to estates of decedents dying after Dec. 31, 1981, see section 422(f)(1) of
§6167. Extension of time for payment of tax attributable to recovery of foreign expropriation losses
(a) Extension allowed by election
If—
(1) a corporation has a recovery of a foreign expropriation loss to which section 1351 applies, and
(2) the portion of the recovery received in money is less than 25 percent of the amount of such recovery (as defined in section 1351(c)) and is not greater than the tax attributable to such recovery,
the tax attributable to such recovery shall, at the election of the taxpayer, be payable in 10 equal installments on the 15th day of the fourth month of each of the taxable years following the taxable year of the recovery. Such election shall be made at such time and in such manner as the Secretary may prescribe by regulations. If an election is made under this subsection, the provisions of this subtitle shall apply as though the Secretary were extending the time for payment of such tax.
(b) Extension permitted by Secretary
If a corporation has a recovery of a foreign expropriation loss to which section 1351 applies and if an election is not made under subsection (a), the Secretary may, upon finding that the payment of the tax attributable to such recovery at the time otherwise provided in this subtitle would result in undue hardship, extend the time for payment of such tax for a reasonable period or periods not in excess of 9 years from the date on which such tax is otherwise payable.
(c) Acceleration of payments
If—
(1) an election is made under subsection (a),
(2) during any taxable year before the tax attributable to such recovery is paid in full—
(A) any property (other than money) received on such recovery is sold or exchanged, or
(B) any property (other than money) received on any sale or exchange described in subparagraph (A) is sold or exchanged, and
(3) the amount of money received on such sale or exchange (reduced by the amount of the tax imposed under
(A) received on such recovery, and
(B) received on previous sales or exchanges described in subparagraphs (A) and (B) of paragraph (2) (as so reduced),
exceeds the amount of money which may be received under subsection (a)(2),
an amount of the tax attributable to such recovery equal to such excess shall be payable on the 15th day of the fourth month of the taxable year following the taxable year in which such sale or exchange occurs. The amount of such tax so paid shall be treated, for purposes of this section, as a payment of the first unpaid installment or installments (or portion thereof) which become payable under subsection (a) following such taxable year.
(d) Proration of deficiency to installments
If an election is made under subsection (a), and a deficiency attributable to the recovery of a foreign expropriation loss has been assessed, the deficiency shall be prorated to such installments. The part of the deficiency so prorated to any installment the date for payment of which has not arrived shall be collected at the same time as, and as part of, such installment. The part of the deficiency so prorated to any installment the date for payment of which has arrived shall be paid upon notice and demand from the Secretary. This subsection shall not apply if the deficiency is due to negligence, to intentional disregard of rules and regulations, or to fraud with intent to evade tax.
(e) Time for payment of interest
If the time for payment for any amount of tax has been extended under this section, interest payable under section 6601 on any unpaid portion of such amount shall be paid annually at the same time as, and as part of, each installment payment of the tax. Interest, on that part of a deficiency prorated under this section to any installment the date for payment of which has not arrived, for the period before the date fixed for the last installment preceding the assessment of the deficiency, shall be paid upon notice and demand from the Secretary.
(f) Tax attributable to recovery of foreign expropriation loss
For purposes of this section, the tax attributable to a recovery of a foreign expropriation loss is the sum of—
(1) the additional tax imposed by section 1351(d)(1) on such recovery, and
(2) the amount by which the tax imposed under subtitle A is increased by reason of the gain on such recovery which under section 1351(e) is considered as gain on the involuntary conversion of property.
(g) Failure to pay installment
If any installment under this section is not paid on or before the date fixed for its payment by this section (including any extension of time for the payment of such installment), the unpaid portion of the tax payable in installments shall be paid upon notice and demand from the Secretary.
(h) Cross-references
(1) Security.—For authority of the Secretary to require security in the case of an extension under this section, see section 6165.
(2) Period of limitation.—For extension of the period of limitation in the case of an extension under this section, see section 6503(e).
(Added
Editorial Notes
Amendments
2015—Subsecs. (a), (c).
1976—Subsecs. (a), (b), (d), (e), (g).
Subsec. (h).
1975—Subsec. (e).
Subsec. (h).
Statutory Notes and Related Subsidiaries
Effective Date of 2015 Amendment
Amendment by
Effective Date of 1976 Amendment
Amendment by section 1902(b)(2)(B) of
Effective Date of 1975 Amendment
Amendment by
Effective Date
Section applicable with respect to amounts received after Dec. 31, 1964, in respect of foreign expropriation losses (as defined in
CHAPTER 63 —ASSESSMENT
Editorial Notes
Amendments
2015—
1997—
1996—
1982—
1969—
1 Section numbers editorially supplied.
Subchapter A—In General
Editorial Notes
Amendments
2005—
1983—
1970—
1965—
1956—Act June 29, 1956, ch. 462, title II, §208(e)(3),
Act Apr. 2, 1956, ch. 160, §4(b)(2),
§6201. Assessment authority
(a) Authority of Secretary
The Secretary is authorized and required to make the inquiries, determinations, and assessments of all taxes (including interest, additional amounts, additions to the tax, and assessable penalties) imposed by this title, or accruing under any former internal revenue law, which have not been duly paid by stamp at the time and in the manner provided by law. Such authority shall extend to and include the following:
(1) Taxes shown on return
The Secretary shall assess all taxes determined by the taxpayer or by the Secretary as to which returns or lists (or payments under section 6225(c)(2)(B)(i)) are made under this title.
(2) Unpaid taxes payable by stamp
(A) Omitted stamps
Whenever any article upon which a tax is required to be paid by means of a stamp is sold or removed for sale or use by the manufacturer thereof or whenever any transaction or act upon which a tax is required to be paid by means of a stamp occurs without the use of the proper stamp, it shall be the duty of the Secretary, upon such information as he can obtain, to estimate the amount of tax which has been omitted to be paid and to make assessment therefor upon the person or persons the Secretary determines to be liable for such tax.
(B) Check or money order not duly paid
In any case in which a check or money order received under authority of section 6311 as payment for stamps is not duly paid, the unpaid amount may be immediately assessed as if it were a tax imposed by this title, due at the time of such receipt, from the person who tendered such check or money order.
(3) Erroneous income tax prepayment credits
If on any return or claim for refund of income taxes under subtitle A there is an overstatement of the credit for income tax withheld at the source, or of the amount paid as estimated income tax, the amount so overstated which is allowed against the tax shown on the return or which is allowed as a credit or refund may be assessed by the Secretary in the same manner as in the case of a mathematical or clerical error appearing upon the return, except that the provisions of section 6213(b)(2) (relating to abatement of mathematical or clerical error assessments) shall not apply with regard to any assessment under this paragraph.
(4) Certain orders of criminal restitution
(A) In general
The Secretary shall assess and collect the amount of restitution under an order pursuant to
(B) Time of assessment
An assessment of an amount of restitution under an order described in subparagraph (A) shall not be made before all appeals of such order are concluded and the right to make all such appeals has expired.
(C) Restriction on challenge of assessment
The amount of such restitution may not be challenged by the person against whom assessed on the basis of the existence or amount of the underlying tax liability in any proceeding authorized under this title (including in any suit or proceeding in court permitted under section 7422).
(b) Amount not to be assessed
(1) Estimated income tax
No unpaid amount of estimated income tax required to be paid under section 6654 or 6655 shall be assessed.
(2) Federal unemployment tax
No unpaid amount of Federal unemployment tax for any calendar quarter or other period of a calendar year, computed as provided in section 6157, shall be assessed.
(c) Compensation of child
Any income tax under
(d) Required reasonable verification of information returns
In any court proceeding, if a taxpayer asserts a reasonable dispute with respect to any item of income reported on an information return filed with the Secretary under subpart B or C of part III of subchapter A of
(e) Deficiency proceedings
For special rules applicable to deficiencies of income, estate, gift, and certain excise taxes, see subchapter B.
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
2018—Subsec. (a)(1).
2010—Subsec. (a)(4).
1996—Subsecs. (d), (e).
1988—Subsec. (a)(4).
Subsec. (b)(2).
1987—Subsec. (b)(1).
1984—Subsec. (a)(4).
Subsec. (b)(1).
1983—Subsec. (a)(4).
Subsec. (b)(2).
1976—Subsec. (a).
Subsec. (a)(3), (4).
Subsec. (d).
1975—Subsec. (a)(4).
1974—Subsec. (d).
1970—Subsec. (a)(4).
1969—Subsec. (b).
Subsec. (d).
1965—Subsec. (a)(4).
Statutory Notes and Related Subsidiaries
Effective Date of 2018 Amendment
Amendment by
Effective Date of 2010 Amendment
Effective Date of 1996 Amendment
Effective Date of 1988 Amendment
Amendment by section 7106(c)(2) of
Effective Date of 1987 Amendment
Amendment by
Effective Date of 1984 Amendment
Amendment by section 412(b)(5) of
Amendment by section 474(r)(32) of
Effective Date of 1983 Amendment
Amendment by
Amendment by
Effective Date of 1976 Amendment
Amendment by section 1206(c)(2) of
Amendment by section 1307(d)(2)(D) of
Effective Date of 1975 Amendment
Amendment by
Effective Date of 1974 Amendment
Amendment by
Effective Date of 1970 Amendment
Amendment by
Effective Date of 1969 Amendments
Amendment by
Amendment by
Effective Date of 1965 Amendment
Amendment by
§6202. Establishment by regulations of mode or time of assessment
If the mode or time for the assessment of any internal revenue tax (including interest, additional amounts, additions to the tax, and assessable penalties) is not otherwise provided for, the Secretary may establish the same by regulations.
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
1976—
§6203. Method of assessment
The assessment shall be made by recording the liability of the taxpayer in the office of the Secretary in accordance with rules or regulations prescribed by the Secretary. Upon request of the taxpayer, the Secretary shall furnish the taxpayer a copy of the record of the assessment.
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
1976—
§6204. Supplemental assessments
(a) General rule
The Secretary may, at any time within the period prescribed for assessment, make a supplemental assessment whenever it is ascertained that any assessment is imperfect or incomplete in any material respect.
(b) Restrictions on assessment
For restrictions on assessment of deficiencies in income, estate, gift, and certain excise taxes, see section 6213.
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
1976—Subsec. (a).
1974—Subsec. (b).
Statutory Notes and Related Subsidiaries
Effective Date of 1974 Amendment
Amendment by
§6205. Special rules applicable to certain employment taxes
(a) Adjustment of tax
(1) General rule
If less than the correct amount of tax imposed by section 3101, 3111, 3201, 3221, or 3402 is paid with respect to any payment of wages or compensation, proper adjustments, with respect to both the tax and the amount to be deducted, shall be made, without interest, in such manner and at such times as the Secretary may by regulations prescribe.
(2) United States as employer
For purposes of this subsection, in the case of remuneration received from the United States or a wholly-owned instrumentality thereof during any calendar year, each head of a Federal agency or instrumentality who makes a return pursuant to section 3122 and each agent, designated by the head of a Federal agency or instrumentality, who makes a return pursuant to such section shall be deemed a separate employer.
(3) Guam or American Samoa as employer
For purposes of this subsection, in the case of remuneration received during any calendar year from the Government of Guam, the Government of American Samoa, a political subdivision of either, or any instrumentality of any one or more of the foregoing which is wholly owned thereby, the Governor of Guam, the Governor of American Samoa, and each agent designated by either who makes a return pursuant to section 3125 shall be deemed a separate employer.
(4) District of Columbia as employer
For purposes of this subsection, in the case of remuneration received during any calendar year from the District of Columbia or any instrumentality which is wholly owned thereby, the Mayor of the District of Columbia and each agent designated by him who makes a return pursuant to section 3125 shall be deemed a separate employer.
(5) States and political subdivisions as employer
For purposes of this subsection, in the case of remuneration received from a State or any political subdivision thereof (or any instrumentality of any one or more of the foregoing which is wholly owned thereby) during any calendar year, each head of an agency or instrumentality, and each agent designated by either, who makes a return pursuant to section 3125 shall be deemed a separate employer.
(b) Underpayments
If less than the correct amount of tax imposed by section 3101, 3111, 3201, 3221, or 3402 is paid or deducted with respect to any payment of wages or compensation and the underpayment cannot be adjusted under subsection (a) of this section, the amount of the underpayment shall be assessed and collected in such manner and at such times (subject to the statute of limitations properly applicable thereto) as the Secretary may by regulations prescribe.
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
1986—Subsec. (a)(5).
1976—Subsec. (a)(1).
Subsec. (a)(4).
Subsec. (b).
1965—Subsec. (a)(4).
1960—Subsec. (a)(3).
Statutory Notes and Related Subsidiaries
Effective Date of 1986 Amendment
Amendment by
Effective Date of 1976 Amendment
Amendment by
Effective Date of 1965 Amendment
Amendment by
Effective Date of 1960 Amendment
Amendment by
§6206. Special rules applicable to excessive claims under certain sections
Any portion of a refund made under section 6416(a)(4) and any portion of a payment made under section 6420, 6421, or 6427 which constitutes an excessive amount (as defined in section 6675(b)), and any civil penalty provided by section 6675, may be assessed and collected as if it were a tax imposed by section 4081 (with respect to refunds under section 6416(a)(4) and payments under sections 6420 and 6421), or 4041 or 4081 (with respect to payments under section 6427) and as if the person who made the claim were liable for such tax. The period for assessing any such portion, and for assessing any such penalty, shall be 3 years from the last day prescribed for the filing of the claim under section 6416(a)(4), 6420, 6421, or 6427, as the case may be.
(Added Apr. 2, 1956, ch. 160, §4(b)(1),
Editorial Notes
Prior Provisions
A prior section 6206 was renumbered 6207 of this title.
Amendments
2005—
2004—
1993—
1987—
1983—
1970—
1965—
1956—Act June 29, 1956, inserted reference to excessive claims under section 6421 in section catchline and text.
Statutory Notes and Related Subsidiaries
Effective Date of 2005 Amendment
Amendment by
Effective Date of 2004 Amendment
Amendment by
Effective Date of 1993 Amendment
Amendment by
Effective Date of 1987 Amendment
Amendment by
Effective Date of 1983 Amendment
Amendment by
Effective Date of 1970 Amendment
Amendment by
Effective Date of 1965 Amendment
Amendment by
Effective Date of 1956 Amendment
Amendment by act June 29, 1956, effective June 29, 1956, see section 211 of act June 29, 1956, set out as a note under
§6207. Cross references
(1) For prohibition of suits to restrain assessment of any tax, see section 7421.
(2) For prohibition of assessment of taxes against insolvent banks, see section 7507.
(3) For assessment where property subject to tax has been sold in a distraint proceeding without the tax having been assessed prior to such sale, see section 6342.
(4) For assessment with respect to taxes required to be paid by
(5) For assessment in case of distilled spirits removed from place where distilled and not deposited in bonded warehouse, see section 5006(c).
(6) For period of limitation upon assessment, see
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
1976—Par. (7).
1958—Par. (4).
Pars. (6) to (9).
Statutory Notes and Related Subsidiaries
Effective Date of 1958 Amendment
Amendment by
Subchapter B—Deficiency Procedures in the Case of Income, Estate, Gift, and Certain Excise Taxes
Editorial Notes
Amendments
1969—
§6211. Definition of a deficiency
(a) In general
For purposes of this title in the case of income, estate, and gift taxes imposed by subtitles A and B and excise taxes imposed by chapters 41, 42, 43, and 44 the term "deficiency" means the amount by which the tax imposed by subtitle A or B, or
(1) the sum of
(A) the amount shown as the tax by the taxpayer upon his return, if a return was made by the taxpayer and an amount was shown as the tax by the taxpayer thereon, plus
(B) the amounts previously assessed (or collected without assessment) as a deficiency, over—
(2) the amount of rebates, as defined in subsection (b)(2), made.
(b) Rules for application of subsection (a)
For purposes of this section—
(1) The tax imposed by subtitle A and the tax shown on the return shall both be determined without regard to payments on account of estimated tax, without regard to the credit under section 31, without regard to the credit under section 33, and without regard to any credits resulting from the collection of amounts assessed under section 6851 or 6852 (relating to termination assessments).
(2) The term "rebate" means so much of an abatement, credit, refund, or other repayment, as was made on the ground that the tax imposed by subtitle A or B or
(3) The computation by the Secretary, pursuant to section 6014, of the tax imposed by
(4) For purposes of subsection (a)—
(A) any excess of the sum of the credits allowable under sections 21 by reason of subsection (g) thereof, 24 by reason of subsections (d) and (i)(1) thereof, 25A by reason of subsection (i) thereof, 32, 34, 35, 36, 36B, 6428, 6428A, 6428B, and 7527A over the tax imposed by subtitle A (determined without regard to such credits), and
(B) any excess of the sum of such credits as shown by the taxpayer on his return over the amount shown as the tax by the taxpayer on such return (determined without regard to such credits),
shall be taken into account as negative amounts of tax.
(c) Coordination with subchapter C
In determining the amount of any deficiency for purposes of this subchapter, adjustments to partnership-related items shall be made only as provided in subchapter C.
(Aug. 16, 1954, ch. 736,
Amendment of Subsection (b)(4)
Editorial Notes
Amendments
2022—Subsec. (b)(4)(A).
2021—Subsec. (b)(4)(A).
2020—Subsec. (b)(4)(A).
2018—Subsec. (b)(4)(A).
Subsec. (c).
2017—Subsec. (b)(4)(A).
2014—Subsec. (b)(4)(A).
2010—Subsec. (b)(4)(A).
2009—Subsec. (b)(4)(A).
2008—Subsec. (b)(4)(A).
2007—Subsec. (b)(4)(A).
2006—Subsec. (b)(4)(A).
2000—Subsec. (b)(4)(A).
1998—Subsec. (c).
1997—Subsec. (c).
1988—Subsec. (a).
Subsec. (b)(2).
Subsec. (b)(4).
Subsec. (b)(5), (6).
"(5) The amount withheld under section 4995(a) from amounts payable to any producer for crude oil removed during any taxable period (as defined in section 4996(b)(7)) which is not otherwise shown on a return by such producer shall be treated as tax shown by the producer on a return for the taxable period.
"(6) Any liability to pay amounts required to be withheld under section 4995(a) shall not be treated as a tax imposed by
1987—Subsec. (b)(1).
1984—Subsec. (b)(1).
Subsec. (b)(4).
1980—Subsec. (a).
Subsec. (b)(2).
Subsec. (b)(5), (6).
1976—Subsec. (a).
Subsec. (b)(1).
Subsec. (b)(2).
Subsec. (b)(3).
1974—Subsec. (a).
Subsec. (b)(2).
1969—Subsec. (a).
Subsec. (b)(2).
1966—Subsec. (b)(1).
1965—Subsec. (b)(4).
Statutory Notes and Related Subsidiaries
Effective Date of 2022 Amendment
Amendment by
Effective Date of 2021 Amendment
Amendment by section 9611(b)(4)(B) of
Amendment by section 9631(c)(1) of
Effective Date of 2018 Amendment
Amendment by section 101(l)(17) of
Amendment by section 201(c)(1) of
Effective Date of 2017 Amendment
Amendment by
Effective Date of 2014 Amendment
Amendment by
Effective and Termination Dates of 2010 Amendment
Amendment by section 1401(d)(3) of
Amendment by section 10909(b)(2)(N) of
Amendment by section 10909(b)(2)(N) of
Effective Date of 2009 Amendment
Amendment by section 1004(b)(7) of
Amendment by section 1201(a)(3)(B), (b)(2) of
Effective Date of 2008 Amendment
Amendment by
Effective Date of 2006 Amendment
Amendment by
Effective Date of 2000 Amendment
Amendment by
Effective Date of 1998 Amendment
Amendment by
Effective Date of 1997 Amendment
Effective Date of 1988 Amendments
Amendment by
Amendment by
Effective Date of 1984 Amendment
Amendment by
Effective Date of 1980 Amendment
Amendment by
Effective Date of 1976 Amendment
Amendment by section 1204(c)(4) of
Amendment by section 1307(d)(2)(E), (F)(i) of
For effective date of amendment by section 1605(b)(4) of
Effective Date of 1974 Amendment
Amendment by
Effective Date of 1969 Amendment
Amendment by
Effective Date of 1966 Amendment
Amendment by
Effective Date of 1965 Amendment
Amendment by
§6212. Notice of deficiency
(a) In general
If the Secretary determines that there is a deficiency in respect of any tax imposed by subtitles A or B or
(b) Address for notice of deficiency
(1) Income and gift taxes and certain excise taxes
In the absence of notice to the Secretary under section 6903 of the existence of a fiduciary relationship, notice of a deficiency in respect of a tax imposed by subtitle A,
(2) Joint income tax return
In the case of a joint income tax return filed by husband and wife, such notice of deficiency may be a single joint notice, except that if the Secretary has been notified by either spouse that separate residences have been established, then, in lieu of the single joint notice, a duplicate original of the joint notice shall be sent by certified mail or registered mail to each spouse at his last known address.
(3) Estate tax
In the absence of notice to the Secretary under section 6903 of the existence of a fiduciary relationship, notice of a deficiency in respect of a tax imposed by
(c) Further deficiency letters restricted
(1) General rule
If the Secretary has mailed to the taxpayer a notice of deficiency as provided in subsection (a), and the taxpayer files a petition with the Tax Court within the time prescribed in section 6213(a), the Secretary shall have no right to determine any additional deficiency of income tax for the same taxable year, of gift tax for the same calendar year, of estate tax in respect of the taxable estate of the same decedent, of
(2) Cross references
For assessment as a deficiency notwithstanding the prohibition of further deficiency letters, in the case of—
(A) Deficiency attributable to change of treatment with respect to itemized deductions, see section 63(e)(3).
(B) Deficiency attributable to gain on involuntary conversion, see section 1033(a)(2)(C) and (D).
(C) Deficiency attributable to activities not engaged in for profit, see section 183(e)(4).
For provisions allowing determination of tax in title 11 cases, see
(d) Authority to rescind notice of deficiency with taxpayer's consent
The Secretary may, with the consent of the taxpayer, rescind any notice of deficiency mailed to the taxpayer. Any notice so rescinded shall not be treated as a notice of deficiency for purposes of subsection (c)(1) (relating to further deficiency letters restricted), section 6213(a) (relating to restrictions applicable to deficiencies; petition to Tax Court), and section 6512(a) (relating to limitations in case of petition to Tax Court), and the taxpayer shall have no right to file a petition with the Tax Court based on such notice. Nothing in this subsection shall affect any suspension of the running of any period of limitations during any period during which the rescinded notice was outstanding.
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
1998—Subsec. (a).
1997—Subsec. (c)(2)(C) to (E).
1988—Subsec. (a).
Subsec. (b)(1).
Subsec. (c)(1).
Subsec. (d).
1987—Subsec. (c)(1).
1986—Subsec. (c)(2)(A).
Subsec. (d).
1981—Subsec. (c)(1).
1980—Subsec. (a).
Subsec. (b)(1).
Subsec. (c)(1).
Subsec. (c)(2).
1978—Subsec. (c)(1).
Subsec. (c)(2)(C).
1977—Subsec. (c)(2)(A).
1976—Subsec. (a).
Subsec. (b)(1).
Subsec. (c)(1).
Subsec. (c)(2)(B).
Subsec. (c)(2)(D).
Subsec. (c)(2)(E).
1974—Subsec. (a).
Subsec. (b)(1).
Subsec. (c)(1).
1970—Subsec. (c)(1).
1969—Subsec. (a).
Subsec. (b)(1).
Subsec. (c)(1).
1964—Subsec. (c)(2)(A).
1958—Subsec. (a).
Subsec. (b)(1).
Subsec. (b)(2).
Statutory Notes and Related Subsidiaries
Effective Date of 1997 Amendment
Amendment by
Effective Date of 1988 Amendments
Amendment by
Amendment by
Effective Date of 1986 Amendment
Amendment by section 104(b)(17) of
Effective Date of 1981 Amendment
Amendment by
Effective Date of 1980 Amendments
Amendment by
Amendment by
Effective Date of 1978 Amendment
Amendment by section 405(c)(5) of
Amendment by section 701(t)(3)(C) of
Effective Date of 1977 Amendment
Amendment by
Effective Date of 1976 Amendment
Amendment by section 214(b) of
Amendment by section 1204(c)(5) of
Amendment by section 1206(c)(3) of
Amendment by section 1307(d)(2)(F)(ii), (G) of
For effective date of amendment by section 1605(b)(5) of
Amendment by section 1901(b)(31)(C), (37)(C) of
Effective Date of 1974 Amendment
Amendment by
Effective Date of 1970 Amendment
Amendment by
Effective Date of 1969 Amendment
Amendment by
Effective Date of 1964 Amendment
Amendment by
Effective Date of 1958 Amendment
Amendment by section 76 of
Amendment by section 89(b) of
Notice of Deficiency To Specify Deadlines for Filing Tax Court Petition
[Section 3463(a) of
Explanations of Appeals and Collection Process
§6213. Restrictions applicable to deficiencies; petition to Tax Court
(a) Time for filing petition and restriction on assessment
Within 90 days, or 150 days if the notice is addressed to a person outside the United States, after the notice of deficiency authorized in section 6212 is mailed (not counting Saturday, Sunday, or a legal holiday in the District of Columbia as the last day), the taxpayer may file a petition with the Tax Court for a redetermination of the deficiency. Except as otherwise provided in section 6851, 6852, or 6861 no assessment of a deficiency in respect of any tax imposed by subtitle A, or B,
(b) Exceptions to restrictions on assessment
(1) Assessments arising out of mathematical or clerical errors
If the taxpayer is notified that, on account of a mathematical or clerical error appearing on the return, an amount of tax in excess of that shown on the return is due, and that an assessment of the tax has been or will be made on the basis of what would have been the correct amount of tax but for the mathematical or clerical error, such notice shall not be considered as a notice of deficiency for the purposes of subsection (a) (prohibiting assessment and collection until notice of the deficiency has been mailed), or of section 6212(c)(1) (restricting further deficiency letters), or of section 6512(a) (prohibiting credits or refunds after petition to the Tax Court), and the taxpayer shall have no right to file a petition with the Tax Court based on such notice, nor shall such assessment or collection be prohibited by the provisions of subsection (a) of this section. Each notice under this paragraph shall set forth the error alleged and an explanation thereof.
(2) Abatement of assessment of mathematical or clerical errors
(A) Request for abatement
Notwithstanding section 6404(b), a taxpayer may file with the Secretary within 60 days after notice is sent under paragraph (1) a request for an abatement of any assessment specified in such notice, and upon receipt of such request, the Secretary shall abate the assessment. Any reassessment of the tax with respect to which an abatement is made under this subparagraph shall be subject to the deficiency procedures prescribed by this subchapter.
(B) Stay of collection
In the case of any assessment referred to in paragraph (1), notwithstanding paragraph (1), no levy or proceeding in court for the collection of such assessment shall be made, begun, or prosecuted during the period in which such assessment may be abated under this paragraph.
(3) Assessments arising out of tentative carryback or refund adjustments
If the Secretary determines that the amount applied, credited, or refunded under section 6411 is in excess of the overassessment attributable to the carryback or the amount described in section 1341(b)(1) with respect to which such amount was applied, credited, or refunded, he may assess without regard to the provisions of paragraph (2) the amount of the excess as a deficiency as if it were due to a mathematical or clerical error appearing on the return.
(4) Assessment of amount paid
Any amount paid as a tax or in respect of a tax may be assessed upon the receipt of such payment notwithstanding the provisions of subsection (a). In any case where such amount is paid after the mailing of a notice of deficiency under section 6212, such payment shall not deprive the Tax Court of jurisdiction over such deficiency determined under section 6211 without regard to such assessment.
(5) Certain orders of criminal restitution
If the taxpayer is notified that an assessment has been or will be made pursuant to section 6201(a)(4)—
(A) such notice shall not be considered as a notice of deficiency for the purposes of subsection (a) (prohibiting assessment and collection until notice of the deficiency has been mailed), section 6212(c)(1) (restricting further deficiency letters), or section 6512(a) (prohibiting credits or refunds after petition to the Tax Court), and
(B) subsection (a) shall not apply with respect to the amount of such assessment.
(c) Failure to file petition
If the taxpayer does not file a petition with the Tax Court within the time prescribed in subsection (a), the deficiency, notice of which has been mailed to the taxpayer, shall be assessed, and shall be paid upon notice and demand from the Secretary.
(d) Waiver of restrictions
The taxpayer shall at any time (whether or not a notice of deficiency has been issued) have the right, by a signed notice in writing filed with the Secretary, to waive the restrictions provided in subsection (a) on the assessment and collection of the whole or any part of the deficiency.
(e) Suspension of filing period for certain excise taxes
The running of the time prescribed by subsection (a) for filing a petition in the Tax Court with respect to the taxes imposed by section 4941 (relating to taxes on self-dealing), 4942 (relating to taxes on failure to distribute income), 4943 (relating to taxes on excess business holdings), 4944 (relating to investments which jeopardize charitable purpose), 4945 (relating to taxes on taxable expenditures), 4951 (relating to taxes on self-dealing), or 4952 (relating to taxes on taxable expenditures), 4955 (relating to taxes on political expenditures), 4958 (relating to private excess benefit), 4971 (relating to excise taxes on failure to meet minimum funding standard), 4975 (relating to excise taxes on prohibited transactions) shall be suspended for any period during which the Secretary has extended the time allowed for making correction under section 4963(e).
(f) Coordination with title 11
(1) Suspension of running of period for filing petition in title 11 cases
In any case under
(2) Certain action not taken into account
For purposes of the second and third sentences of subsection (a), the filing of a proof of claim or request for payment (or the taking of any other action) in a case under
(g) Definitions
For purposes of this section—
(1) Return
The term "return" includes any return, statement, schedule, or list, and any amendment or supplement thereto, filed with respect to any tax imposed by subtitle A or B, or
(2) Mathematical or clerical error
The term "mathematical or clerical error" means—
(A) an error in addition, subtraction, multiplication, or division shown on any return,
(B) an incorrect use of any table provided by the Internal Revenue Service with respect to any return if such incorrect use is apparent from the existence of other information on the return,
(C) an entry on a return of an item which is inconsistent with another entry of the same or another item on such return,
(D) an omission of information which is required to be supplied on the return to substantiate an entry on the return,
(E) an entry on a return of a deduction or credit in an amount which exceeds a statutory limit imposed by subtitle A or B, or
(i) as a specified monetary amount, or
(ii) as a percentage, ratio, or fraction,
and if the items entering into the application of such limit appear on such return,
(F) an omission of a correct taxpayer identification number required under section 32 (relating to the earned income credit) to be included on a return,
(G) an entry on a return claiming the credit under section 32 with respect to net earnings from self-employment described in section 32(c)(2)(A) to the extent the tax imposed by section 1401 (relating to self-employment tax) on such net earnings has not been paid,
(H) an omission of a correct TIN required under section 21 (relating to expenses for household and dependent care services necessary for gainful employment) or section 151 (relating to allowance of deductions for personal exemptions),
(I) an omission of a correct TIN required under section 24(e) (relating to child tax credit) to be included on a return,
(J) an omission of a correct TIN required under section 25A(g)(1) (relating to higher education tuition and related expenses) to be included on a return,
(K) an omission of information required by section 32(k)(2) (relating to taxpayers making improper prior claims of earned income credit) or an entry on the return claiming the credit under section 32 for a taxable year for which the credit is disallowed under subsection (k)(1) thereof,
(L) the inclusion on a return of a TIN required to be included on the return under section 21, 24, 32, 6428, or 6428A if—
(i) such TIN is of an individual whose age affects the amount of the credit under such section, and
(ii) the computation of the credit on the return reflects the treatment of such individual as being of an age different from the individual's age based on such TIN,
(M) the entry on the return claiming the credit under section 32 with respect to a child if, according to the Federal Case Registry of Child Support Orders established under section 453(h) of the Social Security Act, the taxpayer is a noncustodial parent of such child,
(N) an omission of any increase required under section 36(f) with respect to the recapture of a credit allowed under section 36,
(O) the inclusion on a return of an individual taxpayer identification number issued under section 6109(i) which has expired, been revoked by the Secretary, or is otherwise invalid,
(P) an omission of information required by section 24(g)(2) or an entry on the return claiming the credit under section 24 for a taxable year for which the credit is disallowed under subsection (g)(1) thereof,
(Q) an omission of information required by section 25A(b)(4)(B) or an entry on the return claiming the American Opportunity Tax Credit for a taxable year for which such credit is disallowed under section 25A(b)(4)(A),
(R) an omission of information or documentation required under section 25C(b)(6)(B) (relating to home energy audits) to be included on a return,
(S) 1 an omission of a correct product identification number required under section 25C(h) (relating to credit for nonbusiness energy property) to be included on a return,
(T) an omission of a correct vehicle identification number required under section 30D(f)(9) (relating to credit for new clean vehicles) to be included on a return,
(U) an omission of a correct vehicle identification number required under section 25E(d) (relating to credit for previously-owned clean vehicles) to be included on a return, and
(V) an omission of a correct vehicle identification number required under section 45W(e) (relating to commercial clean vehicle credit) to be included on a return.
A taxpayer shall be treated as having omitted a correct TIN for purposes of the preceding sentence if information provided by the taxpayer on the return with respect to the individual whose TIN was provided differs from the information the Secretary obtains from the person issuing the TIN.
(h) Cross references
(1) For assessment as if a mathematical error on the return, in the case of erroneous claims for income tax prepayment credits, see section 6201(a)(3).
(2) For assessments without regard to restrictions imposed by this section in the case of—
(A) Recovery of foreign income taxes, see section 905(c).
(B) Recovery of foreign estate tax, see section 2016.
(3) For provisions relating to application of this subchapter in the case of certain partnership items, etc., see section 6230(a).2
(Aug. 16, 1954, ch. 736,
Applicability of Amendment
Subsec. (g)(2)(S) of this section, as added by section 13301(g)(2) of
Editorial Notes
References in Text
Section 453(h) of the Social Security Act, referred to in subsec. (g)(2)(M), is classified to
Section 6230, referred to in subsec. (h)(3), was repealed by
Codification
Amendments
2022—Subsec. (g)(2)(R).
Subsec. (g)(2)(S).
Subsec. (g)(2)(T).
Subsec. (g)(2)(U).
Subsec. (g)(2)(V).
2020—Subsec. (g)(2)(L).
2018—Subsec. (g)(2)(O).
Subsec. (g)(2)(P).
Subsec. (g)(2)(Q).
2015—Subsec. (g)(2)(K).
Subsec. (g)(2)(O).
Subsec. (g)(2)(P), (Q).
2014—Subsec. (g)(2)(L).
Subsec. (g)(2)(M).
Subsec. (g)(2)(N).
Subsec. (g)(2)(O).
Subsec. (g)(2)(P).
"(i) the Secretary obtains information from the person issuing the TIN of the taxpayer that indicates that the taxpayer does not meet the age requirement of section 36(b)(4),
"(ii) information provided to the Secretary by the taxpayer on an income tax return for at least one of the 2 preceding taxable years is inconsistent with eligibility for such credit, or
"(iii) the taxpayer fails to attach to the return the form described in section 36(d)(4), and".
Subsec. (g)(2)(Q).
2010—Subsec. (b)(5).
2009—Subsec. (g)(2)(N).
Subsec. (g)(2)(O).
Subsec. (g)(2)(P).
2008—Subsec. (g)(2)(L).
2001—Subsec. (g)(2)(M).
1998—Subsec. (a).
Subsec. (g)(2).
Subsec. (g)(2)(K).
Subsec. (g)(2)(L).
1997—Subsec. (g)(2)(I).
Subsec. (g)(2)(J).
Subsec. (g)(2)(K).
1996—Subsec. (e).
Subsec. (g)(2)(F), (G).
Subsec. (g)(2)(H).
1989—Subsec. (h)(3), (4).
1988—Subsec. (a).
Subsec. (g)(1), (2)(E).
Subsec. (h)(3), (4).
1987—Subsec. (a).
Subsec. (e).
1986—Subsec. (h)(4).
1984—Subsec. (e).
Subsec. (h)(3).
1982—Subsec. (h)(4).
1980—Subsec. (a).
Subsec. (e).
Subsec. (f).
Subsec. (f)(1), (2)(E).
Subsecs. (g), (h).
1978—Subsec. (b)(3).
Subsec. (e).
Subsec. (f).
1976—Subsec. (a).
Subsec. (b)(1).
Subsec. (b)(2).
Subsec. (b)(3).
Subsec. (b)(4).
Subsecs. (c) to (e).
Subsecs. (f), (g).
1974—Subsec. (a).
Subsec. (e).
1969—Subsec. (a).
Subsecs. (e), (f).
1965—Subsec. (e)(3).
Statutory Notes and Related Subsidiaries
Effective Date of 2022 Amendment
Amendment by section 13301(f)(4) of
Amendment by section 13301(g)(2) of
Amendment by section 13401(i)(4) of
Amendment by section 13402(c) of
Amendment by section 13403(b)(2) of
Effective Date of 2018 Amendment
Amendment by section 101(l)(18) of
Effective Date of 2015 Amendment
Amendment by section 203(e) of
Amendment by section 208(b) of
Effective Date of 2014 Amendment
Amendment by section 214(a) of
Amendment by section 221(a)(4), (5)(C), 112(C) of
Effective Date of 2010 Amendment
Amendment by
Effective Date of 2009 Amendment
Amendment by section 12(d) of
Amendment by
Effective Date of 2001 Amendment
Amendment by
Effective Date of 1998 Amendments
Amendment by section 6010(p)(3) of
Effective Date of 1997 Amendment
Amendment by section 101(d)(2) of
Amendment by section 201(b) of
Amendment by section 1085(a)(3) of
Effective Date of 1996 Amendments
Amendment by
Amendment by
Amendment by
Effective Date of 1989 Amendment
Amendment by
Effective Date of 1988 Amendments
Amendment by section 1015(r)(3) of
Amendment by
Effective Date of 1987 Amendment
Amendment by section 10712(c)(1) of
Effective Date of 1986 Amendment
Effective Date of 1984 Amendment
Amendment by section 305(b)(4) of
Amendment by section 474(r)(34) of
Effective Date of 1982 Amendment
Amendment by
Effective Date of 1980 Amendments
For effective date of amendment by
Amendment by
Amendment by
Effective Date of 1978 Amendments
Amendment by
Amendment by
Effective Date of 1976 Amendment
Amendment by section 1204(c)(6) of
Amendment by section 1307(d)(2)(F)(iii) of
For effective date of amendment by section 1605(b)(6) of
Amendment by section 1906(a)(15), (b)(13)(A) of
Effective Date of 1974 Amendment
Amendment by
Effective Date of 1969 Amendment
Amendment by
Effective Date of 1965 Amendment
Amendment by
Plan Amendments Not Required Until January 1, 1989
For provisions directing that if any amendments made by subtitle A or subtitle C of title XI [§§1101–1147 and 1171–1177] or title XVIII [§§1800–1899A] of
1 See Applicability of Amendment note below.
2 See References in Text note below.
§6214. Determinations by Tax Court
(a) Jurisdiction as to increase of deficiency, additional amounts, or additions to the tax
Except as provided by section 7463, the Tax Court shall have jurisdiction to redetermine the correct amount of the deficiency even if the amount so redetermined is greater than the amount of the deficiency, notice of which has been mailed to the taxpayer, and to determine whether any additional amount, or any addition to the tax should be assessed, if claim therefor is asserted by the Secretary at or before the hearing or a rehearing.
(b) Jurisdiction over other years and quarters
The Tax Court in redetermining a deficiency of income tax for any taxable year or of gift tax for any calendar year or calendar quarter shall consider such facts with relation to the taxes for other years or calendar quarters as may be necessary correctly to redetermine the amount of such deficiency, but in so doing shall have no jurisdiction to determine whether or not the tax for any other year or calendar quarter has been overpaid or underpaid. Notwithstanding the preceding sentence, the Tax Court may apply the doctrine of equitable recoupment to the same extent that it is available in civil tax cases before the district courts of the United States and the United States Court of Federal Claims.
(c) Taxes imposed by section 507 or chapter 41 , 42, 43, or 44
The Tax Court, in redetermining a deficiency of any tax imposed by section 507 or
(d) Final decisions of Tax Court
For purposes of this chapter,
(e) Cross reference
For provision giving Tax Court jurisdiction to order a refund of an overpayment and to award sanctions, see section 6512(b)(2).
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
2006—Subsec. (b).
1996—Subsec. (e).
1988—Subsec. (c).
Subsec. (d).
Subsec. (e).
1986—Subsec. (a).
Subsec. (c).
Subsec. (e).
1984—Subsec. (e).
1980—Subsec. (c).
Subsec. (d).
1976—Subsec. (a).
Subsec. (c).
Subsec. (d).
1974—Subsec. (c).
Subsec. (d).
1970—Subsec. (b).
1969—Subsec. (a).
Subsecs. (c), (d).
Statutory Notes and Related Subsidiaries
Effective Date of 2006 Amendment
Effective Date of 1988 Amendments
Amendment by
Effective Date of 1986 Amendment
Amendment by section 1511(c)(8) of
Amendment by section 1833 of
Effective Date of 1984 Amendment
Amendment by
Effective Date of 1980 Amendments
For effective date of amendment by
Amendment by
Effective Date of 1976 Amendment
Amendment by section 1307(d)(2)(F)(iv), (H) of
For effective date of amendment by section 1605(b)(7) of
Effective Date of 1974 Amendment
Amendment by
Effective Date of 1970 Amendment
Amendment by
Effective Date of 1969 Amendment
Amendment by section 101(j)(43), (44) of
Amendment by section 960(a) of
Plan Amendments Not Required Until January 1, 1989
For provisions directing that if any amendments made by subtitle A or subtitle C of title XI [§§1101–1147 and 1171–1177] or title XVIII [§§1800–1899A] of
§6215. Assessment of deficiency found by Tax Court
(a) General rule
If the taxpayer files a petition with the Tax Court, the entire amount redetermined as the deficiency by the decision of the Tax Court which has become final shall be assessed and shall be paid upon notice and demand from the Secretary. No part of the amount determined as a deficiency by the Secretary but disallowed as such by the decision of the Tax Court which has become final shall be assessed or be collected by levy or by proceeding in court with or without assessment.
(b) Cross references
(1) For assessment or collection of the amount of the deficiency determined by the Tax Court pending appellate court review, see section 7485.
(2) For dismissal of petition by Tax Court as affirmation of deficiency as determined by the Secretary, see section 7459(d).
(3) For decision of Tax Court that tax is barred by limitation as its decision that there is no deficiency, see section 7459(e).
(4) For assessment of damages awarded by Tax Court for instituting proceedings merely for delay, see section 6673.
(5) For rules applicable to Tax Court proceedings, see generally subchapter C of
(6) For extension of time for paying amount determined as deficiency, see section 6161(b).
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
2018—Subsec. (b)(5) to (7).
1986—Subsec. (b)(7), (8).
1976—
Subsec. (b)(5).
Statutory Notes and Related Subsidiaries
Effective Date of 1986 Amendment
Amendment by
Savings Provision
For provisions that nothing in amendment by
§6216. Cross references
(1) For procedures relating to receivership proceedings, see subchapter B of
(2) For procedures relating to jeopardy assessments, see subchapter A of
(3) For procedures relating to claims against transferees and fiduciaries, see
(4) For procedures relating to partnership items, see subchapter C.
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
1982—Par. (4).
1980—Par. (1).
Statutory Notes and Related Subsidiaries
Effective Date of 1982 Amendment
Amendment by
Effective Date of 1980 Amendment
Amendment by
Subchapter C—Treatment of Partnerships
Editorial Notes
Prior Provisions
A prior subchapter C, added
PART I—IN GENERAL
Editorial Notes
Amendments
2018—
1 So in original. Does not conform to section catchline.
§6221. Determination at partnership level
(a) In general
Any adjustment to a partnership-related item shall be determined, and any tax attributable thereto shall be assessed and collected, and the applicability of any penalty, addition to tax, or additional amount which relates to an adjustment to any such item shall be determined, at the partnership level, except to the extent otherwise provided in this subchapter.
(b) Election out for certain partnerships with 100 or fewer partners, etc.
(1) In general
This subchapter shall not apply with respect to any partnership for any taxable year if—
(A) the partnership elects the application of this subsection for such taxable year,
(B) for such taxable year the partnership is required to furnish 100 or fewer statements under section 6031(b) with respect to its partners,
(C) each of the partners of such partnership is an individual, a C corporation, any foreign entity that would be treated as a C corporation were it domestic, an S corporation, or an estate of a deceased partner,
(D) the election—
(i) is made with a timely filed return for such taxable year, and
(ii) includes (in the manner prescribed by the Secretary) a disclosure of the name and taxpayer identification number of each partner of such partnership, and
(E) the partnership notifies each such partner of such election in the manner prescribed by the Secretary.
(2) Special rules relating to certain partners
(A) S corporation partners
In the case of a partner that is an S corporation—
(i) the partnership shall only be treated as meeting the requirements of paragraph (1)(C) with respect to such partner if such partnership includes (in the manner prescribed by the Secretary) a disclosure of the name and taxpayer identification number of each person with respect to whom such S corporation is required to furnish a statement under section 6037(b) for the taxable year of the S corporation ending with or within the partnership taxable year for which the application of this subsection is elected, and
(ii) the statements such S corporation is required to so furnish shall be treated as statements furnished by the partnership for purposes of paragraph (1)(B).
(B) Foreign partners
For purposes of paragraph (1)(D)(ii), the Secretary may provide for alternative identification of any foreign partners.
(C) Other partners
The Secretary may by regulation or other guidance prescribe rules similar to the rules of subparagraph (A) with respect to any partners not described in such subparagraph or paragraph (1)(C).
(Added
Editorial Notes
Prior Provisions
A prior section 6221, added
Amendments
2018—Subsec. (a).
Statutory Notes and Related Subsidiaries
Effective Date of 2018 Amendment
Amendment by
Effective Date
"(1)
"(2)
"(3)
"(4)
§6222. Partner's return must be consistent with partnership return
(a) In general
A partner shall, on the partner's return, treat any partnership-related item in a manner which is consistent with the treatment of such item on the partnership return.
(b) Underpayment due to inconsistent treatment assessed as math error
Any underpayment of tax by a partner by reason of failing to comply with the requirements of subsection (a) shall be assessed and collected in the same manner as if such underpayment were on account of a mathematical or clerical error appearing on the partner's return. Paragraph (2) of section 6213(b) shall not apply to any assessment of an underpayment referred to in the preceding sentence.
(c) Exception for notification of inconsistent treatment
(1) In general
In the case of any item referred to in subsection (a), if—
(A)(i) the partnership has filed a return but the partner's treatment on the partner's return is (or may be) inconsistent with the treatment of the item on the partnership return, or
(ii) the partnership has not filed a return, and
(B) the partner files with the Secretary a statement identifying the inconsistency,
subsections (a) and (b) shall not apply to such item.
(2) Partner receiving incorrect information
A partner shall be treated as having complied with subparagraph (B) of paragraph (1) with respect to an item if the partner—
(A) demonstrates to the satisfaction of the Secretary that the treatment of the item on the partner's return is consistent with the treatment of the item on the statement furnished to the partner by the partnership, and
(B) elects to have this paragraph apply with respect to that item.
(d) Final decision on certain positions not binding on partnership
Any final decision with respect to an inconsistent position identified under subsection (c) in a proceeding to which the partnership is not a party shall not be binding on the partnership.
(e) Addition to tax for failure to comply with section
For addition to tax in the case of a partner's disregard of the requirements of this section, see part II of subchapter A of
(Added
Editorial Notes
Prior Provisions
A prior section 6222, added
Amendments
2018—Subsec. (a).
Statutory Notes and Related Subsidiaries
Effective Date of 2018 Amendment
Amendment by
Effective Date
Section applicable to returns filed for partnership taxable years beginning after Dec. 31, 2017, with certain exceptions, see section 1101(g) of
§6223. Partners bound by actions of partnership
(a) Designation of partnership representative
Each partnership shall designate (in the manner prescribed by the Secretary) a partner (or other person) with a substantial presence in the United States as the partnership representative who shall have the sole authority to act on behalf of the partnership under this subchapter. In any case in which such a designation is not in effect, the Secretary may select any person as the partnership representative.
(b) Binding effect
A partnership and all partners of such partnership shall be bound—
(1) by actions taken under this subchapter by the partnership, and
(2) by any final decision in a proceeding brought under this subchapter with respect to the partnership.
(Added
Editorial Notes
Prior Provisions
Prior sections 6223 and 6224 were repealed by
Section 6223, added
Section 6224, added
Statutory Notes and Related Subsidiaries
Effective Date
Section applicable to returns filed for partnership taxable years beginning after Dec. 31, 2017, with certain exceptions, see section 1101(g) of
PART II—PARTNERSHIP ADJUSTMENTS
Editorial Notes
Amendments
2018—
§6225. Partnership adjustment by Secretary
(a) In general
In the case of any adjustments by the Secretary to any partnership-related items with respect to any reviewed year of a partnership—
(1) if such adjustments result in an imputed underpayment, the partnership shall pay an amount equal to such imputed underpayment in the adjustment year as provided in section 6232, and
(2) if such adjustments do not result in an imputed underpayment, such adjustments shall be taken into account by the partnership in the adjustment year.
(b) Determination of imputed underpayments
For purposes of this subchapter—
(1) In general
Except as otherwise provided in this section, any imputed underpayment with respect to any reviewed year shall be determined by the Secretary by—
(A) appropriately netting all partnership adjustments with respect to such reviewed year, and
(B) applying the highest rate of tax in effect for the reviewed year under section 1 or 11.
(2) Adjustments to distributive shares of partners not netted
In the case of any adjustment which reallocates the distributive share of any item from one partner to another, such adjustment shall be taken into account by disregarding so much of such adjustment as results in a decrease in the amount of the imputed underpayment.
(3) Adjustments separately netted by category
For purposes of paragraph (1)(A), partnership adjustments for any reviewed year shall first be separately determined (and netted as appropriate) within each category of items that are required to be taken into account separately under section 702(a) or other provision of this title.
(4) Limitation on adjustments that may be taken into account
If any adjustment would (but for this paragraph)—
(A) result in a decrease in the amount of the imputed underpayment, and
(B) could be subject to any additional limitation under the provisions of this title (or not allowed, in whole or in part, against ordinary income) if such adjustment were taken into account by any person,
such adjustment shall not be taken into account under paragraph (1)(A) except to the extent otherwise provided by the Secretary.
(c) Modification of imputed underpayments
(1) In general
The Secretary shall establish procedures under which the imputed underpayment amount may be modified consistent with the requirements of this subsection.
(2) Procedures for partners to take adjustments into account
(A) Amended returns of partners
Such procedures shall provide that if—
(i) one or more partners file returns for the taxable year of the partners which includes the end of the reviewed year of the partnership (and for any taxable year with respect to which any tax attribute is affected by reason of any adjustment referred to in clause (ii)),
(ii) such returns take into account all adjustments under subsection (a) properly allocable to such partners (and the effect of such adjustments on any tax attributes), and
(iii) payment of any tax due is included with such returns,
then the imputed underpayment amount shall be determined without regard to the portion of the adjustments so taken into account.
(B) Alternative procedure to filing amended returns
Such procedures shall provide that, with respect to any partner referred to in subparagraph (A), the requirements of subparagraph (A) shall be treated as satisfied with respect to adjustments properly allocable to such partner if, in lieu of filing the returns described in such subparagraph—
(i) the amounts described in subparagraph (A)(iii) are paid by the partner,
(ii) the partner agrees to take into account, in the form and manner prescribed by the Secretary, the adjustments to the tax attributes of such partner referred to in subparagraph (A)(ii), and
(iii) such partner provides, in the form and manner specified by the Secretary (including, if the Secretary so specifies, in the same form as on an amended return), such information as the Secretary may require to carry out this subparagraph.
(C) Reallocation of distributive share
In the case of any adjustment which reallocates the distributive share of any item from one partner to another, this paragraph shall apply with respect to any such partner only if the requirements of subparagraph (A) or (B) are satisfied with respect to all partners affected by such adjustment.
(D) Application of statute of limitations
In the case of adjustments referred to in subparagraph (A)(ii), sections 6501 and 6511 shall not apply with respect to any return filed for purposes of subparagraph (A)(i) or any amount paid under subparagraph (A)(iii) or (B)(i).
(E) Adjustments to tax attributes binding for affected taxable years of partner
The adjustments to the tax attributes of any partner provided for in subparagraph (A)(ii) or (B)(ii) shall be binding with respect to the taxable year of the partner which includes the end of the reviewed year of the partnership and any taxable years for which any tax attribute is affected by such adjustment. Any failure to so treat any such tax attribute shall be treated for purposes of this title in the same manner as a failure to treat a partnership-related item in a manner which is consistent with the treatment of such item on the partnership return within the meaning of section 6222.
(F) 1 Application to partnerships and S corporations in tiered structures
(i) In general
In the case of any partnership any partner of which is a partnership, subparagraph (A) or (B) may apply with respect to any partner (hereafter in this subparagraph referred to as the "relevant partner") in the chain of ownership of such partnerships if—
(I) such information as the Secretary may require is furnished to the Secretary for purposes of carrying out this paragraph with respect to such partnerships (including any information the Secretary may require with respect to any chain of ownership of the relevant partner), and
(II) to such extent as the Secretary may require, each partnership in the chain of ownership between the relevant partner and the audited partnership satisfies the requirements of subparagraph (A) or (B).
(ii) Treatment of S corporations
For purposes of clause (i), an S corporation and its shareholders shall be treated in the same manner as a partnership and its partners.
(F) 1 Adjustments not treated as amended return
An administrative adjustment request under section 6227 and a partnership adjustment tracking report under section 6226(b)(4)(A) shall not be treated as a return for purposes of this paragraph.
(3) Tax-exempt partners
Such procedures shall provide for determining the imputed underpayment without regard to the portion of the adjustment that the partnership demonstrates is allocable to a partner that would not owe tax by reason of its status as a tax-exempt entity (as defined in section 168(h)(2)).
(4) Modification of applicable highest tax rates
(A) In general
Such procedures shall provide for taking into account a rate of tax lower than the rate of tax described in subsection (b)(1)(A) with respect to any portion of the adjustment that the partnership demonstrates is allocable to a partner which—
(i) is a C corporation, or
(ii) in the case of a capital gain or qualified dividend, is an individual.
In no event shall the lower rate determined under the preceding sentence be less than the highest rate in effect with respect to the income and taxpayer described in clause (i) or clause (ii), as the case may be. For purposes of clause (ii), an S corporation shall be treated as an individual.
(B) Portion of imputed underpayment to which lower rate applies
(i) In general
Except as provided in clause (ii), the portion of the imputed underpayment to which the lower rate applies with respect to a partner under subparagraph (A) shall be determined by reference to the partners' distributive share of items to which the imputed underpayment relates.
(ii) Rule in case of varied treatment of items among partners
If the imputed underpayment is attributable to the adjustment of more than 1 item, and any partner's distributive share of such items is not the same with respect to all such items, then the portion of the imputed underpayment to which the lower rate applies with respect to a partner under subparagraph (A) shall be determined by reference to the amount which would have been the partner's distributive share of net gain or loss if the partnership had sold all of its assets at their fair market value as of the close of the reviewed year of the partnership.
(5) Certain passive losses of publicly traded partnerships
(A) In general
In the case of a publicly traded partnership (as defined in section 469(k)(2)), such procedures shall provide—
(i) for determining the imputed underpayment without regard to the portion of the adjustment that the partnership demonstrates is attributable to a net decrease in a specified passive activity loss which is allocable to a specified partner, and
(ii) for the partnership to take such net decrease into account as an adjustment in the adjustment year with respect to the specified partners to which such net decrease relates.
(B) Specified passive activity loss
For purposes of this paragraph, the term "specified passive activity loss" means, with respect to any specified partner of such publicly traded partnership, the lesser of—
(i) the passive activity loss of such partner which is separately determined with respect to such partnership under section 469(k) with respect to such partner's taxable year in which or with which the reviewed year of such partnership ends, or
(ii) such passive activity loss so determined with respect to such partner's taxable year in which or with which the adjustment year of such partnership ends.
(C) Specified partner
For purposes of this paragraph, the term "specified partner" means any person if such person—
(i) is a partner of the publicly traded partnership referred to in subparagraph (A),
(ii) is described in section 469(a)(2), and
(iii) has a specified passive activity loss with respect to such publicly traded partnership,
with respect to each taxable year of such person which is during the period beginning with the taxable year of such person in which or with which the reviewed year of such publicly traded partnership ends and ending with the taxable year of such person in which or with which the adjustment year of such publicly traded partnership ends.
(6) Other procedures for modification of imputed underpayment
The Secretary may by regulations or guidance provide for additional procedures to modify imputed underpayment amounts on the basis of such other factors as the Secretary determines are necessary or appropriate to carry out the purposes of this subsection.
(7) Year and day for submission to Secretary
Anything required to be filed or submitted under this subsection shall be submitted to the Secretary not later than the close of the 270-day period beginning on the date on which the notice of a proposed partnership adjustment is mailed under section 6231 unless such period is extended with the consent of the Secretary.
(8) Decision of Secretary
Any modification of the imputed underpayment amount under this subsection shall be made only upon approval of such modification by the Secretary.
(9) Modification of adjustments not resulting in an imputed underpayment
The Secretary shall establish procedures under which the adjustments described in subsection (a)(2) may be modified in such manner as the Secretary determines appropriate.
(d) Definitions
For purposes of this subchapter—
(1) Reviewed year
The term "reviewed year" means the partnership taxable year to which the item being adjusted relates.
(2) Adjustment year
The term "adjustment year" means the partnership taxable year in which—
(A) in the case of an adjustment pursuant to the decision of a court in a proceeding brought under section 6234, such decision becomes final,
(B) in the case of an administrative adjustment request under section 6227, such administrative adjustment request is made, or
(C) in any other case, notice of the final partnership adjustment is mailed under section 6231.
(Added
Editorial Notes
Prior Provisions
A prior section 6225, added
Amendments
2018—Subsec. (a).
Subsec. (b).
Subsec. (c)(2).
Subsec. (c)(2)(F).
Subsec. (c)(3).
Subsec. (c)(4)(A).
Subsec. (c)(5)(A)(i).
Subsec. (c)(7).
Subsec. (c)(9).
2015—Subsec. (c)(4)(A)(i).
Subsec. (c)(5) to (8).
Statutory Notes and Related Subsidiaries
Effective Date of 2018 Amendment
Amendment by
Effective Date of 2015 Amendment
Amendment by
Effective Date
Section applicable to returns filed for partnership taxable years beginning after Dec. 31, 2017, with certain exceptions, see section 1101(g) of
1 So in original. Two subpars. (F) have been enacted.
§6226. Alternative to payment of imputed underpayment by partnership
(a) In general
If the partnership—
(1) not later than 45 days after the date of the notice of final partnership adjustment, elects the application of this section with respect to an imputed underpayment, and
(2) at such time and in such manner as the Secretary may provide, furnishes to each partner of the partnership for the reviewed year and to the Secretary a statement of the partner's share of any adjustment to a partnership-related item (as determined in the notice of final partnership adjustment),
section 6225 shall not apply with respect to such underpayment (and no assessment of tax, levy, or proceeding in any court for the collection of such underpayment shall be made against such partnership) and each such partner shall take such adjustment into account as provided in subsection (b). The election under paragraph (1) shall be made in such manner as the Secretary may provide and, once made, shall be revocable only with the consent of the Secretary.
(b) Adjustments taken into account by partner
(1) Tax imposed in year of statement
Except as provided in paragraph (4), each partner's tax imposed by
(2) Correction amounts
The correction amounts determined under this paragraph are—
(A) in the case of the taxable year of the partner which includes the end of the reviewed year, the amount by which the tax imposed under
(B) in the case of any taxable year after the taxable year referred to in subparagraph (A) and before the taxable year referred to in paragraph (1), the amount by which the tax imposed under
(3) Adjustment of tax attributes
Any tax attribute which would have been affected if the adjustments described in subsection (a) were taken into account for the taxable year referred to in paragraph (2)(A) shall—
(A) in the case of any taxable year referred to in paragraph (2)(B), be appropriately adjusted for purposes of applying such paragraph, and
(B) in the case of any subsequent taxable year, be appropriately adjusted.
(4) Treatment of partnerships and S corporations in tiered structures
(A) In general
If a partner which receives a statement under subsection (a)(2) is a partnership or an S corporation, such partner shall, with respect to the partner's share of the adjustment—
(i) file with the Secretary a partnership adjustment tracking report which includes such information as the Secretary may require, and
(ii)(I) furnish statements under rules similar to the rules of subsection (a)(2), or
(II) if no such statements are furnished, compute and pay an imputed underpayment under rules similar to the rules of section 6225 (other than paragraphs (2), (7), and (9) of subsection (c) thereof).
(B) Due date
For purposes of subparagraph (A), with respect to a partner's share of the adjustment, the partnership adjustment tracking report shall be filed, and the imputed underpayment shall be paid or statements shall be furnished, not later than the due date for the return for the adjustment year of the audited partnership.
(C) Partnership payment of tax if elected out of subchapter
In the case of a partnership which has elected the application of section 6221(b) with respect to the taxable year of the partnership which includes the end of the reviewed year of the audited partnership, this paragraph shall apply notwithstanding such election.
(D) Audited partnership
For purposes of this paragraph, the term "audited partnership" means, with respect to any partner described in subparagraph (A), the partnership in the chain of ownership originally electing the application of this section.
(E) Treatment of trusts
The Secretary shall prescribe such rules as may be necessary with respect to trusts which receive a statement under subsection (a)(2).
(c) Penalties and interest
(1) Penalties
Notwithstanding subsections (a) and (b), any penalties, additions to tax, or additional amount shall be determined as provided under section 6221 and the partners of the partnership for the reviewed year shall be liable for any such penalty, addition to tax, or additional amount.
(2) Interest
In the case of an imputed underpayment with respect to which the application of this section is elected, or which is described in subsection (b)(4)(A)(ii)(I), interest shall be determined—
(A) at the partner level,
(B) from the due date of the return for the taxable year to which the increase is attributable (determined by taking into account any increases attributable to a change in tax attributes for a taxable year under subsection (b)(2)), and
(C) at the underpayment rate under section 6621(a)(2), determined by substituting "5 percentage points" for "3 percentage points" in subparagraph (B) thereof.
(d) Judicial review
For the time period within which a partnership may file a petition for a readjustment, see section 6234(a).
(Added
Editorial Notes
Prior Provisions
A prior section 6226, added
Amendments
2018—Subsec. (a).
Subsec. (a)(2).
Subsec. (b)(1).
Subsec. (b)(2).
Subsec. (b)(2)(A).
Subsec. (b)(4).
Subsec. (c)(2).
2015—Subsec. (d).
Statutory Notes and Related Subsidiaries
Effective Date of 2018 Amendment
Amendment by
Effective Date of 2015 Amendment
Amendment by
Effective Date
Section applicable to returns filed for partnership taxable years beginning after Dec. 31, 2017, with certain exceptions, see section 1101(g) of
§6227. Administrative adjustment request by partnership
(a) In general
A partnership may file a request for an administrative adjustment in the amount of one or more partnership-related items for any partnership taxable year.
(b) Adjustment
Any such adjustment under subsection (a) shall be determined and taken into account for the partnership taxable year in which the administrative adjustment request is filed—
(1) by the partnership under rules similar to the rules of section 6225 (other than paragraphs (2), (7), and (9) of subsection (c) thereof) for the partnership taxable year in which the administrative adjustment request is filed, or
(2) by the partnership and partners under rules similar to the rules of section 6226 (determined without regard to the substitution described in subsection (c)(2)(C) thereof).
In the case of an adjustment that would not result in an imputed underpayment, paragraph (1) shall not apply and paragraph (2) shall apply with appropriate adjustments.
(c) Period of limitations
A partnership may not file such a request more than 3 years after the later of—
(1) the date on which the partnership return for such year is filed, or
(2) the last day for filing the partnership return for such year (determined without regard to extensions).
In no event may a partnership file such a request after a notice of an administrative proceeding with respect to the taxable year is mailed under section 6231.
(d) Coordination with adjustments related to foreign tax credits
The Secretary shall issue regulations or other guidance which provide for the proper coordination of this section and section 905(c).
(Added
Editorial Notes
Prior Provisions
Prior sections 6227 to 6230 were repealed by
Section 6227, added
Section 6228, added
Section 6229, added
Section 6230, added
Amendments
2018—Subsec. (a).
Subsec. (b).
Subsec. (b)(1).
Subsec. (d).
Statutory Notes and Related Subsidiaries
Effective Date of 2018 Amendment
Amendment by
Effective Date
Section applicable to returns filed for partnership taxable years beginning after Dec. 31, 2017, with certain exceptions, see section 1101(g) of
PART III—PROCEDURE
Editorial Notes
Amendments
2018—
§6231. Notice of proceedings and adjustment
(a) In general
The Secretary shall mail to the partnership and the partnership representative—
(1) notice of any administrative proceeding initiated at the partnership level with respect to an adjustment of any partnership-related item for any partnership taxable year, or any partner's distributive share thereof,
(2) notice of any proposed partnership adjustment resulting from such proceeding, and
(3) notice of any final partnership adjustment resulting from such proceeding.
Any notice of a final partnership adjustment shall be sufficient if mailed to the last known address of the partnership representative or the partnership (even if the partnership has terminated its existence). The first sentence shall apply to any proceeding with respect to an administrative adjustment request filed by a partnership under section 6227.
(b) Timing of notices
(1) Notice of proposed partnership adjustment
Any notice of a proposed partnership adjustment shall not be mailed later than the date determined under section 6235 (determined without regard to paragraphs (2) and (3) of subsection (a) thereof).
(2) Notice of final partnership adjustment
(A) In general
Except to the extent that the partnership elects to waive the application of this subparagraph, any notice of a final partnership adjustment shall not be mailed earlier than 270 days after the date on which the notice of the proposed partnership adjustment is mailed.
(B) Statute of limitations on adjustment
For the period of limitations on making adjustments, see section 6235.
(c) Further notices restricted
If the Secretary mails a notice of a final partnership adjustment to any partnership for any partnership taxable year and the partnership files a petition under section 6234 with respect to such notice, in the absence of a showing of fraud, malfeasance, or misrepresentation of a material fact, the Secretary shall not mail another such notice to such partnership with respect to such taxable year.
(d) Authority to rescind notice with partnership consent
The Secretary may, with the consent of the partnership, rescind any notice of a partnership adjustment mailed to such partnership. Any notice so rescinded shall not be treated as a notice of a partnership adjustment for purposes of this subchapter, and the taxpayer shall have no right to bring a proceeding under section 6234 with respect to such notice.
(Added
Editorial Notes
Prior Provisions
A prior section 6231, added
Amendments
2018—Subsec. (a).
Subsec. (a)(1).
Subsecs. (b) to (d).
Statutory Notes and Related Subsidiaries
Effective Date of 2018 Amendment
Amendment by
Effective Date
Section applicable to returns filed for partnership taxable years beginning after Dec. 31, 2017, with certain exceptions, see section 1101(g) of
Special Rule for Certain International Satellite Partnerships
§6232. Assessment, collection, and payment
(a) In general
Any imputed underpayment shall be assessed and collected in the same manner as if it were a tax imposed for the adjustment year by subtitle A, except that—
(1) subchapter B of
(2) in the case of an administrative adjustment request to which section 6227(b)(1) applies, the underpayment shall be paid and may be assessed when the request is filed.
(b) Limitation on assessment
Except as otherwise provided in this subtitle (other than subchapter B of this chapter), no assessment of an imputed underpayment may be made (and no levy or proceeding in any court for the collection of any amount resulting from such adjustment may be made, begun or prosecuted) before—
(1) the close of the 90th day after the day on which a notice of a final partnership adjustment was mailed, and
(2) if a petition is filed under section 6234 with respect to such notice, the decision of the court has become final.
The preceding sentence shall not apply in the case of a specified similar amount (as defined in subsection (f)(2)).
(c) Premature action may be enjoined
Notwithstanding section 7421(a), any action which violates subsection (b) may be enjoined in the proper court, including the Tax Court. The Tax Court shall have no jurisdiction to enjoin any action under this subsection unless a timely petition has been filed under section 6234 and then only in respect of the adjustments that are the subject of such petition.
(d) Exceptions to restrictions on adjustments
(1) Adjustments arising out of math or clerical errors
(A) In general
If the partnership is notified that, on account of a mathematical or clerical error appearing on the partnership return, an adjustment to an item is required, rules similar to the rules of paragraphs (1) and (2) of section 6213(b) shall apply to such adjustment.
(B) Special rule
If a partnership is a partner in another partnership, any adjustment on account of such partnership's failure to comply with the requirements of section 6222(a) with respect to its interest in such other partnership shall be treated as an adjustment referred to in subparagraph (A), except that paragraph (2) of section 6213(b) shall not apply to such adjustment.
(2) Partnership may waive restrictions
The partnership may at any time (whether or not any notice of partnership adjustment has been issued), by a signed notice in writing filed with the Secretary, waive the restrictions provided in subsection (b) on the making of any partnership adjustment.
(e) Limit where no proceeding begun
If no proceeding under section 6234 is begun with respect to any notice of a final partnership adjustment during the 90-day period described in subsection (b), the amount for which the partnership is liable under section 6225 shall not exceed the amount determined in accordance with such notice.
(f) Failure to pay imputed underpayment
(1) In general
If any amount of any imputed underpayment to which section 6225 applies or any specified similar amount (or any interest or penalties with respect to any such amount) has not been paid by the date which is 10 days after the date on which the Secretary provides notice and demand for such payment—
(A) section 6621(a)(2)(B) shall be applied by substituting "5 percentage points" for "3 percentage points" with respect to such amount, and
(B) the Secretary may assess upon each partner of the partnership (determined as of the close of the adjustment year or, if the partnership has ceased to exist as of such time, the former partners of the partnership as determined for purposes of section 6241(7)) a tax equal to such partner's proportionate share of such amount (including any such interest or penalties, determined after application of subparagraph (A)).
(2) Specified similar amount
For purposes of this subsection, the term "specified similar amount" means—
(A) the amount described in subclause (II) of section 6226(b)(4)(A)(ii) (including any failure to satisfy the requirement of subclause (I) of such section which is treated as a failure to pay such amount under section 6651(i)), and
(B) any amount assessed under paragraph (1)(B) upon a partner which is a partnership.
(3) Proportionate share
For purposes of paragraph (1), a partner's proportionate share is such percentage as the Secretary may determine on the basis of such partner's distributive share. The Secretary shall make determinations under the preceding sentence such that the aggregate proportionate shares so determined total 100 percent.
(4) Coordination with partnership liability
The liability of the partnership for any amount with respect to which a partner is made liable under paragraph (1) shall be reduced upon payment by the partner of such amount. Paragraph (1)(B) shall not apply with respect to any amount after the date on which such amount is paid by the partnership.
(5) S corporations
For purposes of this subsection, an S corporation and its shareholders shall be treated in the same manner as a partnership and its partners.
(6) Rules related to assessment and collection
(A) Deficiency procedures not applicable
Subchapter B shall not apply to any assessment or collection under this paragraph.
(B) Limitation on assessment
Except as otherwise provided in this subtitle, no assessment may be made (or proceeding in court begun without assessment) with respect to any partner with respect to an amount under paragraph (1) after the date which is 2 years after the date on which the Secretary provides the notice and demand referred to in paragraph (1) with respect to such amount.
(Added
Editorial Notes
Prior Provisions
A prior section 6232, added
Amendments
2018—Subsec. (a).
Subsec. (b).
Subsec. (d)(1)(A).
Subsec. (e).
Subsec. (f).
Statutory Notes and Related Subsidiaries
Effective Date of 2018 Amendment
Amendment by
Effective Date
Section applicable to returns filed for partnership taxable years beginning after Dec. 31, 2017, with certain exceptions, see section 1101(g) of
§6233. Interest and penalties
(a) Interest and penalties determined from reviewed year
(1) In general
Except to the extent provided in section 6226(c), in the case of a partnership adjustment for a reviewed year—
(A) interest shall be computed under paragraph (2), and
(B) the partnership shall be liable for any penalty, addition to tax, or additional amount as provided in paragraph (3).
(2) Determination of amount of interest
The interest computed under this paragraph with respect to any partnership adjustment is the interest which would be determined under
(3) Penalties
Any penalty, addition to tax, or additional amount shall be determined at the partnership level as if such partnership had been an individual subject to tax under
(b) Interest and penalties with respect to adjustment year return
(1) In general
In the case of any failure to pay an imputed underpayment on the date prescribed therefor, the partnership shall be liable—
(A) for interest as determined under paragraph (2), and
(B) for any penalty, addition to tax, or additional amount as determined under paragraph (3).
(2) Interest
Interest determined under this paragraph is the interest that would be determined by treating the imputed underpayment as an underpayment of tax imposed in the adjustment year.
(3) Penalties
Penalties, additions to tax, or additional amounts determined under this paragraph are the penalties, additions to tax, or additional amounts that would be determined—
(A) by applying section 6651(a)(2) to such failure to pay, and
(B) by treating the imputed underpayment as an underpayment of tax for purposes of part II of subchapter A of
(c) Deposit to suspend interest
For rules allowing deposits to suspend running of interest on potential underpayments, see section 6603.
(Added
Editorial Notes
Prior Provisions
A prior section 6233, added
Amendments
2018—Subsec. (c).
Statutory Notes and Related Subsidiaries
Effective Date of 2018 Amendment
Amendment by
Effective Date
Section applicable to returns filed for partnership taxable years beginning after Dec. 31, 2017, with certain exceptions, see section 1101(g) of
§6234. Judicial review of partnership adjustment
(a) In general
Within 90 days after the date on which a notice of a final partnership adjustment is mailed under section 6231 with respect to any partnership taxable year, the partnership may file a petition for a readjustment for such taxable year with—
(1) the Tax Court,
(2) the district court of the United States for the district in which the partnership's principal place of business is located, or
(3) the Court of Federal Claims.
(b) Jurisdictional requirement for bringing action in district court or Court of Federal Claims
(1) In general
A readjustment petition under this section may be filed in a district court of the United States or the Court of Federal Claims only if the partnership filing the petition deposits with the Secretary, on or before the date the petition is filed, the amount of (as of the date of the filing of the petition) the imputed underpayment, penalties, additions to tax, and additional amounts with respect to such imputed underpayment if the partnership adjustment was made as provided by the notice of final partnership adjustment. The court may by order provide that the jurisdictional requirements of this paragraph are satisfied where there has been a good faith attempt to satisfy such requirement and any shortfall of the amount required to be deposited is timely corrected.
(2) Interest payable
Any amount deposited under paragraph (1), while deposited, shall not be treated as a payment of tax for purposes of this title (other than
(c) Scope of judicial review
A court with which a petition is filed in accordance with this section shall have jurisdiction to determine all partnership-related items for the partnership taxable year to which the notice of final partnership adjustment relates, the proper allocation of such items among the partners, and the applicability of any penalty, addition to tax, or additional amount for which the partnership may be liable under this subchapter.
(d) Determination of court reviewable
Any determination by a court under this section shall have the force and effect of a decision of the Tax Court or a final judgment or decree of the district court or the Court of Federal Claims, as the case may be, and shall be reviewable as such. The date of any such determination shall be treated as being the date of the court's order entering the decision.
(e) Effect of decision dismissing action
If an action brought under this section is dismissed other than by reason of a rescission under section 6231(c),1 the decision of the court dismissing the action shall be considered as its decision that the notice of final partnership adjustment is correct, and an appropriate order shall be entered in the records of the court.
(Added
Editorial Notes
References in Text
Section 6231(c), referred to in subsec. (e), was redesignated section 6231(d) by
Prior Provisions
A prior section 6234, added
Amendments
2018—Subsec. (b)(1).
Subsec. (c).
2015—
Statutory Notes and Related Subsidiaries
Effective Date of 2018 Amendment
Amendment by
Effective Date of 2015 Amendment
Amendment by
Effective Date
Section applicable to returns filed for partnership taxable years beginning after Dec. 31, 2017, with certain exceptions, see section 1101(g) of
1 See References in Text note below.
§6235. Period of limitations on making adjustments
(a) In general
Except as otherwise provided in this section or section 905(c), no adjustment under this subchapter for any partnership taxable year may be made after the later of—
(1) the date which is 3 years after the latest of—
(A) the date on which the partnership return for such taxable year was filed,
(B) the return due date for the taxable year, or
(C) the date on which the partnership filed an administrative adjustment request with respect to such year under section 6227, or
(2) in the case of any modification of an imputed underpayment under section 6225(c), the date that is 270 days (plus the number of days of any extension consented to by the Secretary under paragraph (7) thereof) after the date on which everything required to be submitted to the Secretary pursuant to such section is so submitted, or
(3) in the case of any notice of a proposed partnership adjustment under section 6231(a)(2), the date that is 330 days (plus the number of days of any extension consented to by the Secretary under section 6225(c)(7)) after the date of such notice.
(b) Extension by agreement
The period described in subsection (a) (including an extension period under this subsection) may be extended by an agreement entered into by the Secretary and the partnership before the expiration of such period.
(c) Special rule in case of fraud, etc.
(1) False return
In the case of a false or fraudulent partnership return with intent to evade tax, the adjustment may be made at any time.
(2) Substantial omission of income
If any partnership omits from gross income an amount properly includible therein and such amount is described in subparagraph (A) or (C) of section 6501(e)(1), subsection (a) shall be applied by substituting "6 years" for "3 years".
(3) No return
In the case of a failure by a partnership to file a return for any taxable year, the adjustment may be made at any time.
(4) Return filed by Secretary
For purposes of this section, a return executed by the Secretary under subsection (b) of section 6020 on behalf of the partnership shall not be treated as a return of the partnership.
(5) Information required to be reported
In the case of a partnership that is required to report any information described in section 6501(c)(8), the time for making any adjustment under this subchapter with respect to any tax return, event, or period to which such information relates shall not expire before the date that is determined under section 6501(c)(8).
(6) Listed transactions
If a partnership fails to include on any return or statement any information with respect to a listed transaction as described in section 6501(c)(10), the time for making any adjustment under this subchapter with respect to such transaction shall not expire before the date that is determined under section 6501(c)(10).
(Added
Editorial Notes
Amendments
2018—Subsec. (a).
Subsec. (a)(3).
Subsec. (c)(2).
Subsec. (c)(5), (6).
Subsec. (d).
"(1) for the period during which an action may be brought under section 6234 (and, if a petition is filed under such section with respect to such notice, until the decision of the court becomes final), and
"(2) for 1 year thereafter."
2015—Subsec. (a)(2).
Subsec. (a)(3).
Statutory Notes and Related Subsidiaries
Effective Date of 2018 Amendment
Amendment by
Effective Date of 2015 Amendment
Amendment by
Effective Date
Section applicable to returns filed for partnership taxable years beginning after Dec. 31, 2017, with certain exceptions, see section 1101(g) of
PART IV—DEFINITIONS AND SPECIAL RULES
Editorial Notes
Prior Provisions
A prior subchapter D, Treatment of Electing Large Partnerships, consisted of sections 6240 to 6255, prior to repeal by
Section 6240, added
Another prior subchapter D, Tax Treatment of Subchapter S Items, consisted of sections 6241 to 6245, prior to repeal by
Amendments
2018—
§6241. Definitions and special rules
For purposes of this subchapter—
(1) Partnership
The term "partnership" means any partnership required to file a return under section 6031(a).
(2) Partnership adjustment
(A) In general
The term "partnership adjustment" means any adjustment to a partnership-related item.
(B) Partnership-related item
The term "partnership-related item" means—
(i) any item or amount with respect to the partnership (without regard to whether or not such item or amount appears on the partnership's return and including an imputed underpayment and any item or amount relating to any transaction with, basis in, or liability of, the partnership) which is relevant (determined without regard to this subchapter) in determining the tax liability of any person under
(ii) any partner's distributive share of any item or amount described in clause (i).
(3) Return due date
The term "return due date" means, with respect to the taxable year, the date prescribed for filing the partnership return for such taxable year (determined without regard to extensions).
(4) Payments nondeductible
No deduction shall be allowed under subtitle A for any payment required to be made by a partnership under this subchapter.
(5) Partnerships having principal place of business outside United States
For purposes of section 6234, a principal place of business located outside the United States shall be treated as located in the District of Columbia.
(6) Partnerships in cases under title 11 of United States Code
(A) Suspension of period of limitations on making adjustment, assessment, or collection
The running of any period of limitations provided in this subchapter on making a partnership adjustment (or provided by section 6501 or 6502 on the assessment or collection of any imputed underpayment determined under this subchapter) shall, in a case under
(i) for adjustment or assessment, 60 days thereafter, and
(ii) for collection, 6 months thereafter.
A rule similar to the rule of section 6213(f)(2) shall apply for purposes of section 6232(b).
(B) Suspension of period of limitation for filing for judicial review
The running of the period specified in section 6234 shall, in a case under
(7) Treatment where partnership ceases to exist
If a partnership ceases to exist before a partnership adjustment under this subchapter takes effect, such adjustment shall be taken into account by the former partners of such partnership under regulations prescribed by the Secretary.
(8) Extension to entities filing partnership return
If a partnership return is filed by an entity for a taxable year but it is determined that the entity is not a partnership (or that there is no entity) for such year, then, to the extent provided in regulations, the provisions of this subchapter are hereby extended in respect of such year to such entity and its items and to persons holding an interest in such entity.
(9) Coordination with other chapters
(A) In general
This subchapter shall not apply with respect to any tax imposed (including any amount required to be deducted or withheld) under
(B) Timing of withholding
In the case of any tax imposed (including any amount required to be deducted or withheld) under
(i) shall be so determined with respect to the reviewed year, and
(ii) shall be so imposed (or so required to be deducted or withheld) with respect to the adjustment year.
(C) Statute of limitation on assessment
For special rule with respect to limitation on assessment of taxes under
(10) Authority to require electronic filing
Notwithstanding section 6011(e), the Secretary may require that anything required to be filed or submitted under section 6225(c), or to be furnished to or filed with the Secretary under section 6226, be so filed, submitted, or furnished by magnetic media or in other machine-readable form.
(11) Treatment of special enforcement matters
(A) In general
In the case of partnership-related items which involve special enforcement matters, the Secretary may prescribe regulations pursuant to which—
(i) this subchapter (or any portion thereof) does not apply to such items, and
(ii) such items are subject to such special rules (including rules related to assessment and collection) as the Secretary determines to be necessary for the effective and efficient enforcement of this title.
(B) Special enforcement matters
For purposes of subparagraph (A), the term "special enforcement matters" means—
(i) failure to comply with the requirements of section 6226(b)(4)(A)(ii),
(ii) assessments under section 6851 (relating to termination assessments of income tax) or section 6861 (relating to jeopardy assessments of income, estate, gift, and certain excise taxes),
(iii) criminal investigations,
(iv) indirect methods of proof of income,
(v) foreign partners or partnerships, and
(vi) other matters that the Secretary determines by regulation present special enforcement considerations.
(12) United States shareholders and certain other persons treated as partners
(A) In general
Except as otherwise provided by the Secretary, in the case of any controlled foreign corporation (as defined in section 957 or 953(c)(1)) which is a partner of a partnership, each United States shareholder (as defined in section 951(b) or 953(c)(1)) with respect to such controlled foreign corporation shall be treated for purposes of this subchapter as a partner of such partnership. For purposes of the preceding sentence, any distributive share of any such United States shareholder with respect to such partnership shall, except as otherwise provided by the Secretary, be equal to such United States shareholder's pro rata share with respect to such controlled foreign corporation (determined under rules similar to the rules of section 951(a)(2)).
(B) Passive foreign investment companies
For purposes of subparagraph (A), in the case of a passive foreign investment company (as defined in section 1297), each taxpayer that makes an election under section 1295 with respect to such company shall be treated in the same manner as United States shareholders under subparagraph (A), except that such taxpayer's pro rata share with respect to the passive foreign investment company shall be determined under rules similar to the rules of section 1293(b).
(C) Regulations or other guidance
The Secretary shall issue such regulations or other guidance as is necessary or appropriate to carry out the purposes of this paragraph, including regulations which apply the rules of subparagraph (A) in similar circumstances or with respect to similarly situated persons.
(Added
Editorial Notes
Prior Provisions
A prior section 6241, added
Another prior section 6241, added
A prior section 6242, added
Another prior section 6242, added
A prior section 6243, added
A prior section 6244, added
A prior section 6245, added
Another prior section 6245, added
Prior sections 6246 to 6255 were repealed by
Section 6246, added
Section 6247, added
Section 6248, added
Section 6251, added
Section 6252, added
Section 6255, added
Amendments
2018—Par. (2).
Par. (5).
Par. (9).
Par. (10).
Par. (11).
Par. (12).
Statutory Notes and Related Subsidiaries
Effective Date of 2018 Amendment
Amendment by
Effective Date
Section applicable to returns filed for partnership taxable years beginning after Dec. 31, 2017, with certain exceptions, see section 1101(g) of
CHAPTER 64 —COLLECTION
Editorial Notes
Amendments
1990—
1972—
1 Section numbers editorially supplied.
Subchapter A—General Provisions
Editorial Notes
Amendments
2015—
2004—
1998—
1976—
1975—
§6301. Collection authority
The Secretary shall collect the taxes imposed by the internal revenue laws.
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
1976—
Statutory Notes and Related Subsidiaries
Approval Process for Liens, Levies, and Seizures
"(a)
"(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)
"(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)
"(1)
"(2)
§6302. Mode or time of collection
(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
(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 recreational equipment
The taxes imposed by subchapter D of
(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 section 4251, 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.
(2) Taxes on ozone depleting chemicals
If any person is required under regulations to make deposits of taxes under subchapter D of
(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) 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.
(3) Coordination with other electronic fund transfer requirements
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.
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
2018—Subsec. (e)(2)(A).
2014—Subsec. (e)(2).
"(i) section 4251, or
"(ii) effective on January 1, 1997, section 4261 or 4271,
with respect to".
Subsec. (f)(1).
Subsec. (h)(2).
Subsec. (h)(3), (4).
"(A)
"(B)
2010—Subsec. (d).
Subsec. (i).
1996—Subsec. (b).
Subsec. (g).
1994—Subsec. (e).
Subsec. (f).
"(1)
"(2)
1993—Subsec. (f).
Subsecs. (h), (i).
1990—Subsec. (b).
Subsec. (e).
Subsec. (g).
1989—Subsec. (e).
Subsec. (f).
Subsec. (g).
Subsec. (h).
1988—Subsec. (d).
Subsec. (e).
1984—Subsecs. (d), (e).
1980—Subsec. (d).
1978—Subsec. (d).
1977—Subsec. (c).
1976—Subsec. (a).
Subsec. (b).
Subsec. (c).
1956—Subsec. (b). Act June 29, 1956, inserted reference to
Statutory Notes and Related Subsidiaries
Effective Date of 2014 Amendment
Amendment by
Effective Date of 2010 Amendment
Amendment by
Effective Date of 1996 Amendment
Amendment by section 1702(c)(3) of
Effective Date of 1994 Amendment
Amendment by
Effective Date of 1993 Amendments
Amendment by
Effective Date of 1990 Amendment
Effective Date of 1989 Amendment
"(1)
"[(2) Repealed.
Effective Date of 1988 Amendments
Amendment by
Effective Date of 1984 Amendment
Amendment by
Effective Date of 1980 Amendment
Amendment by
Effective Date of 1978 Amendment
Amendment by
Effective Date of 1977 Amendment
Regulations
Savings Provision
For provisions that nothing in amendment by section 11801(c)(22)(A) of
Delayed Deposits of Highway Motor Fuel Tax Revenues
Waiver of Penalty Through June 30, 1998, on Small Businesses Failing To Make Electronic Fund Transfers of Taxes
"(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
"(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
Depositary Schedules
§6303. Notice and demand for tax
(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.
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
1976—
§6304. Fair tax collection practices
(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 (
(c) Civil action for violations of section
For civil action for violations of this section, see section 7433.
(Added
Editorial Notes
Prior Provisions
A prior section 6304, act Aug. 16, 1954, ch. 736,
Statutory Notes and Related Subsidiaries
Effective Date
§6305. Collection of certain liability
(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.
(Added
Editorial Notes
References in Text
Section 452(b) of the Social Security Act, referred to in subsec. (a), is classified to
Amendments
1996—Subsec. (a).
Subsec. (a)(5).
1981—Subsec. (a)(4).
1976—Subsecs. (a), (b).
Statutory Notes and Related Subsidiaries
Effective Date of 1996 Amendment
For provisions relating to effective date of title III of
Effective Date of 1981 Amendment
Amendment by
Effective Date
Section effective Aug. 1, 1975, see section 101(f) of
§6306. Qualified tax collection contracts
(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 7 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) Collection of inactive tax receivables
(1) In general
Notwithstanding any other provision of law, the Secretary shall enter into one or more qualified tax collection contracts for the collection of all outstanding inactive tax receivables.
(2) Inactive tax receivables
For purposes of this section—
(A) In general
The term "inactive tax receivable" means any tax receivable if—
(i) at any time after assessment, the Internal Revenue Service removes such receivable from the active inventory for lack of resources or inability to locate the taxpayer,
(ii) more than 2 years has passed since assessment and such receivable has not been assigned for collection to any employee of the Internal Revenue Service, or
(iii) in the case of a receivable which has been assigned for collection, more than 365 days have passed without interaction with the taxpayer or a third party for purposes of furthering the collection of such receivable.
(B) Tax receivable
The term "tax receivable" means any outstanding assessment which the Internal Revenue Service includes in potentially collectible inventory.
(d) Certain tax receivables not eligible for collection under qualified tax collections contracts
A tax receivable shall not be eligible for collection pursuant to a qualified tax collection contract if such receivable—
(1) is subject to a pending or active offer-in-compromise or installment agreement,
(2) is classified as an innocent spouse case,
(3) involves a taxpayer identified by the Secretary as being—
(A) deceased,
(B) under the age of 18,
(C) in a designated combat zone,
(D) a victim of tax-related identity theft,
(E) a taxpayer substantially all of whose income consists of disability insurance benefits under section 223 of the Social Security Act or supplemental security income benefits under title XVI of the Social Security Act (including supplemental security income benefits of the type described in section 1616 of such Act or section 212 of
(F) a taxpayer who is an individual with adjusted gross income, as determined for the most recent taxable year for which such information is available, which does not exceed 200 percent of the applicable poverty level (as determined by the Secretary),
(4) is currently under examination, litigation, criminal investigation, or levy, or
(5) is currently subject to a proper exercise of a right of appeal under this title.
(e) 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 to fund the special compliance personnel program account under section 6307.
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.
(f) 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.
(g) Application of Fair Debt Collection Practices Act
The provisions of the Fair Debt Collection Practices Act (
(h) Contracting priority
In contracting for the services of any person under this section, the Secretary shall utilize private collection contractors and debt collection centers on the schedule required under
(i) Taxpayers in presidentially declared disaster areas
The Secretary may prescribe procedures under which a taxpayer determined to be affected by a Federally declared disaster (as defined by section 165(i)(5)) may request—
(1) relief from immediate collection measures by contractors under this section, and
(2) a return of the inactive tax receivable to the inventory of the Internal Revenue Service to be collected by an employee thereof.
(j) Report to Congress
Not later than 90 days after the last day of each fiscal year (beginning with the first such fiscal year ending after the date of the enactment of this subsection), the Secretary shall submit to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate a report with respect to qualified tax collection contracts under this section which shall include—
(1) annually, with respect to such fiscal year—
(A) the total number and amount of tax receivables provided to each contractor for collection under this section,
(B) the total amounts collected (and amounts of installment agreements entered into under subsection (b)(1)(B)) with respect to each contractor and the collection costs incurred (directly and indirectly) by the Internal Revenue Service with respect to such amounts,
(C) 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,
(D) the amount of fees retained by the Secretary under subsection (e) and a description of the use of such funds, and
(E) a disclosure safeguard report in a form similar to that required under section 6103(p)(5), and
(2) biannually (beginning with the second report submitted under this subsection)—
(A) an independent evaluation of contractor performance, and
(B) a measurement plan that includes a comparison of the best practices used by the private collectors to the collection techniques used by the Internal Revenue Service and mechanisms to identify and capture information on successful collection techniques used by the contractors that could be adopted by the Internal Revenue Service.
(k) 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).
(Added
Editorial Notes
References in Text
The Social Security Act, referred to in subsec. (d)(3)(E), is act Aug. 14, 1935, ch. 531,
Section 212 of
The Fair Debt Collection Practices Act, referred to in subsec. (e), is title VIII of
Amendments
2019—Subsec. (b)(1)(B).
Subsec. (c)(2)(A)(ii).
Subsec. (d)(3)(E), (F).
2018—Subsec. (e)(2).
2015—Subsec. (c).
Subsec. (d).
Subsec. (e).
Subsec. (e)(2).
Subsec. (f).
Subsec. (g).
Subsec. (h).
Subsec. (i).
Subsec. (j).
Subsec. (k).
Statutory Notes and Related Subsidiaries
Effective Date of 2019 Amendment
"(1)
"(2)
"(3)
Effective Date of 2015 Amendment
"(1)
"(2)
Effective Date
Biennial Report
§6307. Special compliance personnel program account
(a) Establishment of a special compliance personnel program account
The Secretary shall establish an account within the Department for carrying out a program consisting of the hiring, training, and employment of special compliance personnel, and shall transfer to such account from time to time amounts retained by the Secretary under section 6306(e)(2).
(b) Restrictions
The program described in subsection (a) shall be subject to the following restrictions:
(1) No funds shall be transferred to such account except as described in subsection (a).
(2) No other funds from any other source shall be expended for special compliance personnel employed under such program.
(3) Notwithstanding any other authority, the Secretary is prohibited from spending funds out of such account for other than program costs.
(c) Reporting
Not later than March of each year, the Commissioner of Internal Revenue shall submit a report to the Committees on Finance and Appropriations of the Senate and the Committees on Ways and Means and Appropriations of the House of Representatives consisting of the following:
(1) For the preceding fiscal year, all funds received in the account established under subsection (a), administrative and program costs for the program described in such subsection, the number of special compliance personnel hired and employed under the program, and the amount of revenue actually collected by such personnel.
(2) For the current fiscal year, all actual and estimated funds received or to be received in the account, all actual and estimated administrative and program costs, the number of all actual and estimated special compliance personnel hired and employed under the program, and the actual and estimated revenue actually collected or to be collected by such personnel.
(3) For the following fiscal year, an estimate of all funds to be received in the account, all estimated administrative and program costs, the estimated number of special compliance personnel hired and employed under the program, and the estimated revenue to be collected by such personnel.
(d) Definitions
For purposes of this section—
(1) Special compliance personnel
The term "special compliance personnel" means individuals employed by the Internal Revenue Service as field function collection officers or in a similar position, or employed to collect taxes using the automated collection system or an equivalent replacement system.
(2) Program costs
The term "program costs" means—
(A) total salaries (including locality pay and bonuses), benefits, and employment taxes for special compliance personnel employed or trained under the program described in subsection (a),
(B) direct overhead costs, salaries, benefits, and employment taxes relating to support staff, rental payments, office equipment and furniture, travel, data processing services, vehicle costs, utilities, communications, software, technology, postage, printing and reproduction, supplies and materials, lands and structures, insurance claims, and indemnities for special compliance personnel hired and employed under this section, and
(C) reimbursement of the Internal Revenue Service or other government agencies for the cost of administering the qualified tax collection program under section 6306.
For purposes of subparagraph (B), the cost of management and supervision of special compliance personnel shall be taken into account as direct overhead costs to the extent such costs, when included in total program costs under this paragraph, do not represent more than 10 percent of such total costs.
(Added
Editorial Notes
Amendments
2019—Subsec. (b)(2).
Subsec. (b)(3).
Subsec. (d)(2)(B).
Subsec. (d)(2)(C).
Statutory Notes and Related Subsidiaries
Effective Date of 2019 Amendment
Amendment by
Subchapter B—Receipt of Payment
Editorial Notes
Amendments
1997—
1971—
1969—
Statutory Notes and Related Subsidiaries
Repeals
§6311. Payment of tax by commercially acceptable means
(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
(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 (
(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 (
(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 (
(D) the term "creditor" under section 103(g) of the Truth in Lending Act (
(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 (
(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.
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
2019—Subsec. (d)(2).
2018—Subsec. (d)(3)(D).
1998—Subsec. (d)(2).
Subsec. (e)(1).
1997—
1984—Subsec. (b)(2).
1976—Subsec. (a).
Statutory Notes and Related Subsidiaries
Effective Date of 1998 Amendments
Amendment by
Amendment by
Effective Date of 1997 Amendment
Amendment by
Effective Date of 1984 Amendment
Regulations
Required Notice of Certain Payments
[§6312. Repealed. Pub. L. 92–5, title I, §4(a)(2), Mar. 17, 1971, 85 Stat. 5 ]
Section, act Aug. 16, 1954, ch. 736,
Statutory Notes and Related Subsidiaries
Effective Date of Repeal
Repeals
§6313. Fractional parts of a cent
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.
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
1976—
§6314. Receipt for taxes
(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
(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.
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
1976—
1970—Subsec. (c)(2).
Statutory Notes and Related Subsidiaries
Effective Date of 1970 Amendment
Amendment by
§6315. Payments of estimated income tax
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.
(Aug. 16, 1954, ch. 736,
§6316. Payment by foreign currency
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.
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
1976—
§6317. Payments of Federal unemployment tax for calendar quarter
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
(Added
Editorial Notes
Amendments
1988—
1983—
Statutory Notes and Related Subsidiaries
Effective Date of 1988 Amendment
Amendment by
Effective Date of 1983 Amendment
Amendment by
Effective Date
Section applicable with respect to calendar years beginning after Dec. 31, 1969, see section 4(a) of
Subchapter C—Lien for Taxes
Editorial Notes
Amendments
1998—
PART I—DUE PROCESS FOR LIENS
Editorial Notes
Amendments
1998—
§6320. Notice and opportunity for hearing upon filing of notice of lien
(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;
(D) the provisions of this title and procedures relating to the release of liens on property; and
(E) the provisions of section 7345 relating to the certification of seriously delinquent tax debts and the denial, revocation, or limitation of passports of individuals with such debts pursuant to section 32101 of the FAST Act.
(b) Right to fair hearing
(1) In general
If the person requests a hearing in writing under subsection (a)(3)(B) and states the grounds for the requested hearing, such hearing shall be held by the Internal Revenue Service Independent 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 (3)(B) thereof), (e), and (g) of section 6330 shall apply.
(Added
Editorial Notes
References in Text
Section 32101 of the FAST Act, referred to in subsec. (a)(3)(E), is section 32101 of
Amendments
2019—Subsec. (b)(1).
2015—Subsec. (a)(3)(E).
Subsec. (c).
2006—Subsec. (b)(1).
Subsec. (c).
Statutory Notes and Related Subsidiaries
Effective Date of 2006 Amendment
Effective Date
PART II—LIENS
Editorial Notes
Amendments
1998—
1988—
1981—
1976—
1966—
§6321. Lien for taxes
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.
(Aug. 16, 1954, ch. 736,
Statutory Notes and Related Subsidiaries
Short Title
§6322. Period of lien
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.
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
1966—
Statutory Notes and Related Subsidiaries
Effective Date of 1966 Amendment
Amendment by
§6323. Validity and priority against certain persons
(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 2016" in subparagraph (A)(ii) 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.
(Aug. 16, 1954, ch. 736,
Inflation Adjusted Items for Certain Years
For inflation adjustment of certain items in this section, see Revenue Procedures listed in a table under
Editorial Notes
Amendments
2017—Subsec. (i)(4)(B).
1998—Subsec. (b)(4).
Subsec. (b)(7).
Subsec. (b)(10).
Subsec. (i)(4).
Subsec. (j)(1)(D).
1996—Subsec. (j).
1990—Subsec. (a).
Subsec. (g)(3).
1988—Subsec. (f)(1)(A)(ii).
Subsec. (f)(5).
1986—Subsec. (i)(3).
1978—Subsec. (f)(4).
Subsec. (g)(2)(A).
1976—Subsecs. (a), (b).
Subsec. (f)(2).
Subsec. (f)(3).
Subsec. (f)(4).
Subsec. (g)(2)(A), (B).
Subsec. (i)(3).
1966—Subsec. (a).
Subsec. (a)(3).
Subsec. (b)(1).
Subsec. (b)(2).
Subsec. (b)(3) to (10).
Subsecs. (c) to (e).
Subsec. (f)(1).
Subsec. (f)(2).
Subsec. (f)(3).
Subsec. (g).
Subsec. (h)(1), (2).
Subsec. (h)(3).
Subsec. (h)(4).
Subsec. (h)(5), (6).
Subsec. (i)(1), (2).
Subsec. (i)(3).
1964—Subsec. (a).
Subsecs. (d), (e).
Statutory Notes and Related Subsidiaries
Effective Date of 2017 Amendment
Amendment by
Effective Date of 1998 Amendment
Amendment by section 1102(d)(1)(A) of
Effective Date of 1996 Amendment
Effective Date of 1990 Amendment
"(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
Effective Date of 1988 Amendment
Effective Date of 1986 Amendment
Effective Date of 1978 Amendment
"(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
"(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
"(a)
"(b)
"(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)
"(1) The amendments made by section 105(a) (relating to effect on third parties) [adding
"(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."
Effective Date of 1964 Amendment
§6324. Special liens for estate and gift taxes
(a) Liens for estate tax
Except as otherwise provided in subsection (c)—
(1) Upon gross estate
Unless the estate tax imposed by
(2) Liability of transferees and others
If the estate tax imposed by
(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
(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.
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
1970—Subsec. (a)(3).
Subsec. (b).
1966—Subsec. (a)(1).
Subsec. (a)(2).
Subsec. (a)(3).
Subsec. (b).
Subsec. (c).
Subsec. (d).
1964—Subsecs. (a), (b).
Subsec. (d).
Statutory Notes and Related Subsidiaries
Effective Date of 1970 Amendment
Amendment by section 101(d)(2) of
Amendment by section 102(d)(7) of
Effective Date of 1966 Amendment
Amendment by
Effective Date of 1964 Amendment
Amendment by
§6324A. Special lien for estate tax deferred under section 6166
(a) General rule
In the case of any estate with respect to which an election has been made under section 6166, if the executor makes an election under this section (at such time and in such manner as the Secretary shall by regulations prescribe) and files the agreement referred to in subsection (c), the deferred amount (plus any interest, additional amount, addition to tax, assessable penalty, and costs attributable to the deferred amount) shall be a lien in favor of the United States on the section 6166 lien property.
(b) Section 6166 lien property
(1) In general
For purposes of this section, the term "section 6166 lien property" means interests in real and other property to the extent such interests—
(A) can be expected to survive the deferral period, and
(B) are designated in the agreement referred to in subsection (c).
(2) Maximum value of required property
The maximum value of the property which the Secretary may require as section 6166 lien property with respect to any estate shall be a value which is not greater than the sum of—
(A) the deferred amount, and
(B) the required interest amount.
For purposes of the preceding sentence, the value of any property shall be determined as of the date prescribed by section 6151(a) for payment of the tax imposed by
(3) Partial substitution of bond for lien
If the value required as section 6166 lien property pursuant to paragraph (2) exceeds the value of the interests in property covered by the agreement referred to in subsection (c), the Secretary may accept bond in an amount equal to such excess conditioned on the payment of the amount extended in accordance with the terms of such extension.
(c) Agreement
The agreement referred to in this subsection is a written agreement signed by each person in being who has an interest (whether or not in possession) in any property designated in such agreement—
(1) consenting to the creation of the lien under this section with respect to such property, and
(2) designating a responsible person who shall be the agent for the beneficiaries of the estate and for the persons who have consented to the creation of the lien in dealings with the Secretary on matters arising under section 6166 or this section.
(d) Special rules
(1) Requirement that lien be filed
The lien imposed by this section shall not be valid as against any purchaser, holder of a security interest, mechanic's lien, or judgment lien creditor until notice thereof which meets the requirements of section 6323(f) has been filed by the Secretary. Such notice shall not be required to be refiled.
(2) Period of lien
The lien imposed by this section shall arise at the time the executor is discharged from liability under section 2204 (or, if earlier, at the time notice is filed pursuant to paragraph (1)) and shall continue until the liability for the deferred amount is satisfied or becomes unenforceable by reason of lapse of time.
(3) Priorities
Even though notice of a lien imposed by this section has been filed as provided in paragraph (1), such lien shall not be valid—
(A) Real property tax and special assessment liens
To the extent provided in section 6323(b)(6).
(B) Real property subject to a mechanic's lien for repairs and improvement
In the case of any real property subject to a lien for repair or improvement, as against a mechanic's lienor.
(C) Real property construction or improvement financing agreement
As against any security interest set forth in paragraph (3) of section 6323(c) (whether such security interest came into existence before or after tax lien filing).
Subparagraphs (B) and (C) shall not apply to any security interest which came into existence after the date on which the Secretary filed notice (in a manner similar to notice filed under section 6323(f)) that payment of the deferred amount has been accelerated under section 6166(g).
(4) Lien to be in lieu of section 6324 lien
If there is a lien under this section on any property with respect to any estate, there shall not be any lien under section 6324 on such property with respect to the same estate.
(5) Additional lien property required in certain cases
If at any time the value of the property covered by the agreement is less than the unpaid portion of the deferred amount and the required interest amount, the Secretary may require the addition of property to the agreement (but he may not require under this paragraph that the value of the property covered by the agreement exceed such unpaid portion). If property having the required value is not added to the property covered by the agreement (or if other security equal to the required value is not furnished) within 90 days after notice and demand therefor by the Secretary, the failure to comply with the preceding sentence shall be treated as an act accelerating payment of the installments under section 6166(g).
(6) Lien to be in lieu of bond
The Secretary may not require under section 6165 the furnishing of any bond for the payment of any tax to which an agreement which meets the requirements of subsection (c) applies.
(e) Definitions
For purposes of this section—
(1) Deferred amount
The term "deferred amount" means the aggregate amount deferred under section 6166 (determined as of the date prescribed by section 6151(a) for payment of the tax imposed by
(2) Required interest amount
The term "required interest amount" means the aggregate amount of interest which will be payable over the first 4 years of the deferral period with respect to the deferred amount (determined as of the date prescribed by section 6151(a) for the payment of the tax imposed by
(3) Deferral period
The term "deferral period" means the period for which the payment of tax is deferred pursuant to the election under section 6166.
(4) Application of definitions in case of deficiencies
In the case of a deficiency, a separate deferred amount, required interest amount, and deferral period shall be determined as of the due date of the first installment after the deficiency is prorated to installments under section 6166.
(Added
Editorial Notes
Amendments
1981—
Subsecs. (a), (c)(2).
Subsec. (d)(3), (5).
Subsec. (e)(1), (3), (4).
1978—Subsec. (b)(2)(B).
Subsec. (d)(5).
Subsec. (e)(2).
Subsec. (e)(4).
Statutory Notes and Related Subsidiaries
Effective Date of 1981 Amendment
Amendment by
Effective Date of 1978 Amendment
§6324B. Special lien for additional estate tax attributable to farm, etc., valuation
(a) General rule
In the case of any interest in qualified real property (within the meaning of section 2032A(b)), an amount equal to the adjusted tax difference attributable to such interest (within the meaning of section 2032A(c)(2)(B)) shall be a lien in favor of the United States on the property in which such interest exists.
(b) Period of lien
The lien imposed by this section shall arise at the time an election is filed under section 2032A and shall continue with respect to any interest in the qualified real property—
(1) until the liability for tax under subsection (c) of section 2032A with respect to such interest has been satisfied or has become unenforceable by reason of lapse of time, or
(2) until it is established to the satisfaction of the Secretary that no further tax liability may arise under section 2032A(c) with respect to such interest.
(c) Certain rules and definitions made applicable
(1) In general
The rule set forth in paragraphs (1), (3), and (4) of section 6324A(d) shall apply with respect to the lien imposed by this section as if it were a lien imposed by section 6324A.
(2) Qualified real property
For purposes of this section, the term "qualified real property" includes qualified replacement property (within the meaning of section 2032A(h)(3)(B)) and qualified exchange property (within the meaning of section 2032A(i)(3)).
(d) Substitution of security for lien
To the extent provided in regulations prescribed by the Secretary, the furnishing of security may be substituted for the lien imposed by this section.
(Added
Editorial Notes
Amendments
1981—Subsec. (c)(2).
1980—Subsec. (c).
1978—Subsec. (b).
Statutory Notes and Related Subsidiaries
Effective Date of 1981 Amendment
Amendment by
Effective Date of 1980 Amendment
Amendment by
Effective Date of 1978 Amendment
Amendment by
§6325. Release of lien or discharge of property
(a) Release of lien
Subject to such regulations as the Secretary may prescribe, the Secretary shall issue a certificate of release of any lien imposed with respect to any internal revenue tax not later than 30 days after the day on which—
(1) Liability satisfied or unenforceable
The Secretary finds that the liability for the amount assessed, together with all interest in respect thereof, has been fully satisfied or has become legally unenforceable; or
(2) Bond accepted
There is furnished to the Secretary and accepted by him a bond that is conditioned upon the payment of the amount assessed, together with all interest in respect thereof, within the time prescribed by law (including any extension of such time), and that is in accordance with such requirements relating to terms, conditions, and form of the bond and sureties thereon, as may be specified by such regulations.
(b) Discharge of property
(1) Property double the amount of the liability
Subject to such regulations as the Secretary may prescribe, the Secretary may issue a certificate of discharge of any part of the property subject to any lien imposed under this chapter if the Secretary finds that the fair market value of that part of such property remaining subject to the lien is at least double the amount of the unsatisfied liability secured by such lien and the amount of all other liens upon such property which have priority over such lien.
(2) Part payment; interest of United States valueless
Subject to such regulations as the Secretary may prescribe, the Secretary may issue a certificate of discharge of any part of the property subject to the lien if—
(A) there is paid over to the Secretary in partial satisfaction of the liability secured by the lien an amount determined by the Secretary, which shall not be less than the value, as determined by the Secretary, of the interest of the United States in the part to be so discharged, or
(B) the Secretary determines at any time that the interest of the United States in the part to be so discharged has no value.
In determining the value of the interest of the United States in the part to be so discharged, the Secretary shall give consideration to the value of such part and to such liens thereon as have priority over the lien of the United States.
(3) Substitution of proceeds of sale
Subject to such regulations as the Secretary may prescribe, the Secretary may issue a certificate of discharge of any part of the property subject to the lien if such part of the property is sold and, pursuant to an agreement with the Secretary, the proceeds of such sale are to be held, as a fund subject to the liens and claims of the United States, in the same manner and with the same priority as such liens and claims had with respect to the discharged property.
(4) Right of substitution of value
(A) In general
At the request of the owner of any property subject to any lien imposed by this chapter, the Secretary shall issue a certificate of discharge of such property if such owner—
(i) deposits with the Secretary an amount of money equal to the value of the interest of the United States (as determined by the Secretary) in the property; or
(ii) furnishes a bond acceptable to the Secretary in a like amount.
(B) Refund of deposit with interest and release of bond
The Secretary shall refund the amount so deposited (and shall pay interest at the overpayment rate under section 6621), and shall release such bond, to the extent that the Secretary determines that—
(i) the unsatisfied liability giving rise to the lien can be satisfied from a source other than such property; or
(ii) the value of the interest of the United States in the property is less than the Secretary's prior determination of such value.
(C) Use of deposit, etc., if action to contest lien not filed
If no action is filed under section 7426(a)(4) within the period prescribed therefor, the Secretary shall, within 60 days after the expiration of such period—
(i) apply the amount deposited, or collect on such bond, to the extent necessary to satisfy the unsatisfied liability secured by the lien; and
(ii) refund (with interest as described in subparagraph (B)) any portion of the amount deposited which is not used to satisfy such liability.
(D) Exception
Subparagraph (A) shall not apply if the owner of the property is the person whose unsatisfied liability gave rise to the lien.
(c) Estate or gift tax
Subject to such regulations as the Secretary may prescribe, the Secretary may issue a certificate of discharge of any or all of the property subject to any lien imposed by section 6324 if the Secretary finds that the liability secured by such lien has been fully satisfied or provided for.
(d) Subordination of lien
Subject to such regulations as the Secretary may prescribe, the Secretary may issue a certificate of subordination of any lien imposed by this chapter upon any part of the property subject to such lien if—
(1) there is paid over to the Secretary an amount equal to the amount of the lien or interest to which the certificate subordinates the lien of the United States,
(2) the Secretary believes that the amount realizable by the United States from the property to which the certificate relates, or from any other property subject to the lien, will ultimately be increased by reason of the issuance of such certificate and that the ultimate collection of the tax liability will be facilitated by such subordination, or
(3) in the case of any lien imposed by section 6324B, if the Secretary determines that the United States will be adequately secured after such subordination.
(e) Nonattachment of lien
If the Secretary determines that, because of confusion of names or otherwise, any person (other than the person against whom the tax was assessed) is or may be injured by the appearance that a notice of lien filed under section 6323 refers to such person, the Secretary may issue a certificate that the lien does not attach to the property of such person.
(f) Effect of certificate
(1) Conclusiveness
Except as provided in paragraphs (2) and (3), if a certificate is issued pursuant to this section by the Secretary and is filed in the same office as the notice of lien to which it relates (if such notice of lien has been filed) such certificate shall have the following effect:
(A) in the case of a certificate of release, such certificate shall be conclusive that the lien referred to in such certificate is extinguished;
(B) in the case of a certificate of discharge, such certificate shall be conclusive that the property covered by such certificate is discharged from the lien;
(C) in the case of a certificate of subordination, such certificate shall be conclusive that the lien or interest to which the lien of the United States is subordinated is superior to the lien of the United States; and
(D) in the case of a certificate of nonattachment, such certificate shall be conclusive that the lien of the United States does not attach to the property of the person referred to in such certificate.
(2) Revocation of certificate of release or nonattachment
If the Secretary determines that a certificate of release or nonattachment of a lien imposed by section 6321 was issued erroneously or improvidently, or if a certificate of release of such lien was issued pursuant to a collateral agreement entered into in connection with a compromise under section 7122 which has been breached, and if the period of limitation on collection after assessment has not expired, the Secretary may revoke such certificate and reinstate the lien—
(A) by mailing notice of such revocation to the person against whom the tax was assessed at his last known address, and
(B) by filing notice of such revocation in the same office in which the notice of lien to which it relates was filed (if such notice of lien had been filed).
Such reinstated lien (i) shall be effective on the date notice of revocation is mailed to the taxpayer in accordance with the provisions of subparagraph (A), but not earlier than the date on which any required filing of notice of revocation is filed in accordance with the provisions of subparagraph (B), and (ii) shall have the same force and effect (as of such date), until the expiration of the period of limitation on collection after assessment, as a lien imposed by section 6321 (relating to lien for taxes).
(3) Certificates void under certain conditions
Notwithstanding any other provision of this subtitle, any lien imposed by this chapter shall attach to any property with respect to which a certificate of discharge has been issued if the person liable for the tax reacquires such property after such certificate has been issued.
(g) Filing of certificates and notices
If a certificate or notice issued pursuant to this section may not be filed in the office designated by State law in which the notice of lien imposed by section 6321 is filed, such certificate or notice shall be effective if filed in the office of the clerk of the United States district court for the judicial district in which such office is situated.
(h) Cross reference
For provisions relating to bonds, see
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
1998—Subsec. (b)(4).
1982—Subsec. (a).
1978—Subsec. (d)(3).
1976—
1966—Subsec. (b)(3).
Subsecs. (d), (e).
Subsec. (f).
Subsec. (g).
Subsec. (h).
1958—Subsec. (a)(1).
Subsec. (c).
Subsec. (d).
Subsec. (e).
Statutory Notes and Related Subsidiaries
Effective Date of 1998 Amendment
Effective Date of 1982 Amendment
"(1) which are filed after December 31, 1982,
"(2) which are satisfied after December 31, 1982, or
"(3) with respect to which the taxpayer after December 31, 1982, requests the Secretary of the Treasury or his delegate to issue a certificate of release on the grounds that the liability was satisfied or legally unenforceable."
Effective Date of 1978 Amendment
Effective Date of 1966 Amendment
Amendment by
Effective Date of 1958 Amendment
Amendment by
§6326. Administrative appeal of liens
(a) In general
In such form and at such time as the Secretary shall prescribe by regulations, any person shall be allowed to appeal to the Secretary after the filing of a notice of a lien under this subchapter on the property or the rights to property of such person for a release of such lien alleging an error in the filing of the notice of such lien.
(b) Certificate of release
If the Secretary determines that the filing of the notice of any lien was erroneous, the Secretary shall expeditiously (and, to the extent practicable, within 14 days after such determination) issue a certificate of release of such lien and shall include in such certificate a statement that such filing was erroneous.
(Added
Editorial Notes
Prior Provisions
A prior section 6326 was renumbered 6327 of this title.
Statutory Notes and Related Subsidiaries
Effective Date
Regulations
§6327. Cross references
(1) For lien in case of tax on distilled spirits, see section 5004.
(2) For exclusion of tax liability from discharge in cases under
(3) For recognition of tax liens in cases under
(4) For collection of taxes in connection with plans for individuals with regular income in cases under
(5) For provisions permitting the United States to be made party defendant in a proceeding in a State court for the foreclosure of a lien upon real estate where the United States may have a claim upon the premises involved, see
(6) For priority of lien of the United States in case of insolvency, see
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
1982—Par. (6).
1980—Par. (2).
Par. (3).
Par. (4).
Pars. (5) to (7).
1976—Pars. (2) to (5).
Statutory Notes and Related Subsidiaries
Effective Date of 1980 Amendment
Amendment by
Subchapter D—Seizure of Property for Collection of Taxes
Statutory Notes and Related Subsidiaries
Amendments
1998—
PART I—DUE PROCESS FOR COLLECTIONS
Statutory Notes and Related Subsidiaries
Amendments
1998—
§6330. Notice and opportunity for hearing before levy
(a) Requirement of notice before levy
(1) In general
No levy may be made on any property or right to property of any person unless the Secretary has notified such person in writing of their right to a hearing under this section before such levy is made. Such notice shall be required only once for the taxable period to which the unpaid tax specified in paragraph (3)(A) relates.
(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, return receipt requested, to such person's last known address;
not less than 30 days before the day of the first levy with respect to the amount of the unpaid tax for the taxable period.
(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 under paragraph (2); and
(C) the proposed action by the Secretary and the rights of the person with respect to such action, including a brief statement which sets forth—
(i) the provisions of this title relating to levy and sale of property;
(ii) the procedures applicable to the levy and sale of property under this title;
(iii) the administrative appeals available to the taxpayer with respect to such levy and sale and the procedures relating to such appeals;
(iv) the alternatives available to taxpayers which could prevent levy on property (including installment agreements under section 6159); and
(v) the provisions of this title and procedures relating to redemption of property and release of liens on property.
(b) Right to fair hearing
(1) In general
If the person requests a hearing in writing under subsection (a)(3)(B) and states the grounds for the requested hearing, such hearing shall be held by the Internal Revenue Service Independent 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 6320. A taxpayer may waive the requirement of this paragraph.
(c) Matters considered at hearing
In the case of any hearing conducted under this section—
(1) Requirement of investigation
The appeals officer shall at the hearing obtain verification from the Secretary that the requirements of any applicable law or administrative procedure have been met.
(2) Issues at hearing
(A) In general
The person may raise at the hearing any relevant issue relating to the unpaid tax or the proposed levy, including—
(i) appropriate spousal defenses;
(ii) challenges to the appropriateness of collection actions; and
(iii) offers of collection alternatives, which may include the posting of a bond, the substitution of other assets, an installment agreement, or an offer-in-compromise.
(B) Underlying liability
The person may also raise at the hearing challenges to the existence or amount of the underlying tax liability for any tax period if the person did not receive any statutory notice of deficiency for such tax liability or did not otherwise have an opportunity to dispute such tax liability.
(3) Basis for the determination
The determination by an appeals officer under this subsection shall take into consideration—
(A) the verification presented under paragraph (1);
(B) the issues raised under paragraph (2); and
(C) whether any proposed collection action balances the need for the efficient collection of taxes with the legitimate concern of the person that any collection action be no more intrusive than necessary.
(4) Certain issues precluded
An issue may not be raised at the hearing if—
(A)(i) the issue was raised and considered at a previous hearing under section 6320 or in any other previous administrative or judicial proceeding; and
(ii) the person seeking to raise the issue participated meaningfully in such hearing or proceeding;
(B) the issue meets the requirement of clause (i) or (ii) of section 6702(b)(2)(A); or
(C) a final determination has been made with respect to such issue in a proceeding brought under subchapter C of
This paragraph shall not apply to any issue with respect to which subsection (d)(3)(B) applies.
(d) Proceeding after hearing
(1) Petition for review by Tax Court
The person may, within 30 days of a determination under this section, petition the Tax Court for review of such determination (and the Tax Court shall have jurisdiction with respect to such matter).
(2) Suspension of running of period for filing petition in title 11 cases
In the case of a person who is prohibited by reason of a case under
(3) Jurisdiction retained at IRS Independent Office of Appeals
The Internal Revenue Service Independent Office of Appeals shall retain jurisdiction with respect to any determination made under this section, including subsequent hearings requested by the person who requested the original hearing on issues regarding—
(A) collection actions taken or proposed with respect to such determination; and
(B) after the person has exhausted all administrative remedies, a change in circumstances with respect to such person which affects such determination.
(e) Suspension of collections and statute of limitations
(1) In general
Except as provided in paragraph (2), if a hearing is requested under subsection (a)(3)(B), the levy actions which are the subject of the requested hearing and the running of any period of limitations under section 6502 (relating to collection after assessment), section 6531 (relating to criminal prosecutions), or section 6532 (relating to other suits) shall be suspended for the period during which such hearing, and appeals therein, are pending. In no event shall any such period expire before the 90th day after the day on which there is a final determination in such hearing. Notwithstanding the provisions of section 7421(a), the beginning of a levy or proceeding during the time the suspension under this paragraph is in force may be enjoined by a proceeding in the proper court, including the Tax Court. The Tax Court shall have no jurisdiction under this paragraph to enjoin any action or proceeding unless a timely appeal has been filed under subsection (d)(1) and then only in respect of the unpaid tax or proposed levy to which the determination being appealed relates.
(2) Levy upon appeal
Paragraph (1) shall not apply to a levy action while an appeal is pending if the underlying tax liability is not at issue in the appeal and the court determines that the Secretary has shown good cause not to suspend the levy.
(f) Exceptions
If—
(1) the Secretary has made a finding under the last sentence of section 6331(a) that the collection of tax is in jeopardy,
(2) the Secretary has served a levy on a State to collect a Federal tax liability from a State tax refund,
(3) the Secretary has served a disqualified employment tax levy, or
(4) the Secretary has served a Federal contractor levy,
this section shall not apply, except that the taxpayer shall be given the opportunity for the hearing described in this section within a reasonable period of time after the levy.
(g) Frivolous requests for hearing, etc.
Notwithstanding any other provision of this section, if the Secretary determines that any portion of a request for a hearing under this section or section 6320 meets the requirement of clause (i) or (ii) of section 6702(b)(2)(A), then the Secretary may treat such portion as if it were never submitted and such portion shall not be subject to any further administrative or judicial review.
(h) Definitions related to exceptions
For purposes of subsection (f)—
(1) Disqualified employment tax levy
A disqualified employment tax levy is any levy in connection with the collection of employment taxes for any taxable period if the person subject to the levy (or any predecessor thereof) requested a hearing under this section with respect to unpaid employment taxes arising in the most recent 2-year period before the beginning of the taxable period with respect to which the levy is served. For purposes of the preceding sentence, the term "employment taxes" means any taxes under
(2) Federal contractor levy
A Federal contractor levy is any levy if the person whose property is subject to the levy (or any predecessor thereof) is a Federal contractor.
(Added
Editorial Notes
Amendments
2019—Subsec. (b)(1).
Subsec. (d)(3).
2018—Subsec. (c)(4).
Subsec. (d)(2).
2015—Subsec. (c)(4)(C).
Subsec. (d)(1).
Subsec. (d)(2), (3).
2010—Subsec. (f).
Subsec. (f)(4).
Subsec. (h).
2007—Subsec. (f)(3).
Subsec. (h).
2006—Subsec. (b)(1).
Subsec. (c)(4)(A), (B).
Subsec. (d)(1).
"(A) to the Tax Court (and the Tax Court shall have jurisdiction with respect to such matter); or
"(B) if the Tax Court does not have jurisdiction of the underlying tax liability, to a district court of the United States.
If a court determines that the appeal was to an incorrect court, a person shall have 30 days after the court determination to file such appeal with the correct court."
Subsec. (g).
2000—Subsec. (d)(1)(A).
Subsec. (e)(1).
Statutory Notes and Related Subsidiaries
Effective Date of 2015 Amendment
Amendment by
Effective Date of 2010 Amendment
Effective Date of 2007 Amendment
Effective Date of 2006 Amendment
Amendment by
Effective Date of 2000 Amendment
Amendment by section 1(a)(7) [title III, §313(b)(2)(A)] of
Effective Date
Section applicable to collection actions initiated after the date which is 180 days after July 22, 1998, see section 3401(d) of
PART II—LEVY
Editorial Notes
Amendments
1998—
1966—
§6331. Levy and distraint
(a) Authority of Secretary
If any person liable to pay any tax neglects or refuses to pay the same within 10 days after notice and demand, it shall be lawful for the Secretary to collect such tax (and such further sum as shall be sufficient to cover the expenses of the levy) by levy upon all property and rights to property (except such property as is exempt under section 6334) belonging to such person or on which there is a lien provided in this chapter for the payment of such tax. Levy may be made upon the accrued salary or wages of any officer, employee, or elected official, of the United States, the District of Columbia, or any agency or instrumentality of the United States or the District of Columbia, by serving a notice of levy on the employer (as defined in section 3401(d)) of such officer, employee, or elected official. If the Secretary makes a finding that the collection of such tax is in jeopardy, notice and demand for immediate payment of such tax may be made by the Secretary and, upon failure or refusal to pay such tax, collection thereof by levy shall be lawful without regard to the 10-day period provided in this section.
(b) Seizure and sale of property
The term "levy" as used in this title includes the power of distraint and seizure by any means. Except as otherwise provided in subsection (e), a levy shall extend only to property possessed and obligations existing at the time thereof. In any case in which the Secretary may levy upon property or rights to property, he may seize and sell such property or rights to property (whether real or personal, tangible or intangible).
(c) Successive seizures
Whenever any property or right to property upon which levy has been made by virtue of subsection (a) is not sufficient to satisfy the claim of the United States for which levy is made, the Secretary may, thereafter, and as often as may be necessary, proceed to levy in like manner upon any other property liable to levy of the person against whom such claim exists, until the amount due from him, together with all expenses, is fully paid.
(d) Requirement of notice before levy
(1) In general
Levy may be made under subsection (a) upon the salary or wages or other property of any person with respect to any unpaid tax only after the Secretary has notified such person in writing of his intention to make such levy.
(2) 30-day requirement
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 persons's last known address,
no less than 30 days before the day of the levy.
(3) Jeopardy
Paragraph (1) shall not apply to a levy if the Secretary has made a finding under the last sentence of subsection (a) that the collection of tax is in jeopardy.
(4) Information included with notice
The notice required under paragraph (1) shall include a brief statement which sets forth in simple and nontechnical terms—
(A) the provisions of this title relating to levy and sale of property,
(B) the procedures applicable to the levy and sale of property under this title,
(C) the administrative appeals available to the taxpayer with respect to such levy and sale and the procedures relating to such appeals,
(D) the alternatives available to taxpayers which could prevent levy on the property (including installment agreements under section 6159),
(E) the provisions of this title relating to redemption of property and release of liens on property,
(F) the procedures applicable to the redemption of property and the release of a lien on property under this title, and
(G) the provisions of section 7345 relating to the certification of seriously delinquent tax debts and the denial, revocation, or limitation of passports of individuals with such debts pursuant to section 32101 of the FAST Act.
(e) Continuing levy on salary and wages
The effect of a levy on salary or wages payable to or received by a taxpayer shall be continuous from the date such levy is first made until such levy is released under section 6343.
(f) Uneconomical levy
No levy may be made on any property if the amount of the expenses which the Secretary estimates (at the time of levy) would be incurred by the Secretary with respect to the levy and sale of such property exceeds the fair market value of such property at the time of levy.
(g) Levy on appearance date of summons
(1) In general
No levy may be made on the property of any person on any day on which such person (or officer or employee of such person) is required to appear in response to a summons issued by the Secretary for the purpose of collecting any underpayment of tax.
(2) No application in case of jeopardy
This subsection shall not apply if the Secretary finds that the collection of tax is in jeopardy.
(h) Continuing levy on certain payments
(1) In general
If the Secretary approves a levy under this subsection, the effect of such levy on specified payments to or received by a taxpayer shall be continuous from the date such levy is first made until such levy is released. Notwithstanding section 6334, such continuous levy shall attach to up to 15 percent of any specified payment due to the taxpayer.
(2) Specified payment
For the purposes of paragraph (1), the term "specified payment" means—
(A) any Federal payment other than a payment for which eligibility is based on the income or assets (or both) of a payee,
(B) any payment described in paragraph (4), (7), (9), or (11) of section 6334(a), and
(C) any annuity or pension payment under the Railroad Retirement Act or benefit under the Railroad Unemployment Insurance Act.
(3) Increase in levy for certain payments
Paragraph (1) shall be applied by substituting "100 percent" for "15 percent" in the case of any specified payment due to a vendor of property, goods, or services sold or leased to the Federal Government and by substituting "100 percent" for "15 percent" in the case of any specified payment due to a Medicare provider or supplier under title XVIII of the Social Security Act.
(i) No levy during pendency of proceedings for refund of divisible tax
(1) In general
No levy may be made under subsection (a) on the property or rights to property of any person with respect to any unpaid divisible tax during the pendency of any proceeding brought by such person in a proper Federal trial court for the recovery of any portion of such divisible tax which was paid by such person if—
(A) the decision in such proceeding would be res judicata with respect to such unpaid tax; or
(B) such person would be collaterally estopped from contesting such unpaid tax by reason of such proceeding.
(2) Divisible tax
For purposes of paragraph (1), the term "divisible tax" means—
(A) any tax imposed by subtitle C; and
(B) the penalty imposed by section 6672 with respect to any such tax.
(3) Exceptions
(A) Certain unpaid taxes
This subsection shall not apply with respect to any unpaid tax if—
(i) the taxpayer files a written notice with the Secretary which waives the restriction imposed by this subsection on levy with respect to such tax; or
(ii) the Secretary finds that the collection of such tax is in jeopardy.
(B) Certain levies
This subsection shall not apply to—
(i) any levy to carry out an offset under section 6402; and
(ii) any levy which was first made before the date that the applicable proceeding under this subsection commenced.
(4) Limitation on collection activity; authority to enjoin collection
(A) Limitation on collection
No proceeding in court for the collection of any unpaid tax to which paragraph (1) applies shall be begun by the Secretary during the pendency of a proceeding under such paragraph. This subparagraph shall not apply to—
(i) any counterclaim in a proceeding under such paragraph; or
(ii) any proceeding relating to a proceeding under such paragraph.
(B) Authority to enjoin
Notwithstanding section 7421(a), a levy or collection proceeding prohibited by this subsection may be enjoined (during the period such prohibition is in force) by the court in which the proceeding under paragraph (1) is brought.
(5) Suspension of statute of limitations on collection
The period of limitations under section 6502 shall be suspended for the period during which the Secretary is prohibited under this subsection from making a levy.
(6) Pendency of proceeding
For purposes of this subsection, a proceeding is pending beginning on the date such proceeding commences and ending on the date that a final order or judgment from which an appeal may be taken is entered in such proceeding.
(j) No levy before investigation of status of property
(1) In general
For purposes of applying the provisions of this subchapter, no levy may be made on any property or right to property which is to be sold under section 6335 until a thorough investigation of the status of such property has been completed.
(2) Elements in investigation
For purposes of paragraph (1), an investigation of the status of any property shall include—
(A) a verification of the taxpayer's liability;
(B) the completion of an analysis under subsection (f);
(C) the determination that the equity in such property is sufficient to yield net proceeds from the sale of such property to apply to such liability; and
(D) a thorough consideration of alternative collection methods.
(k) No levy while certain offers pending or installment agreement pending or in effect
(1) Offer-in-compromise pending
No levy may be made under subsection (a) on the property or rights to property of any person with respect to any unpaid tax—
(A) during the period that an offer-in-compromise by such person under section 7122 of such unpaid tax is pending with the Secretary; and
(B) if such offer is rejected by the Secretary, during the 30 days thereafter (and, if an appeal of such rejection is filed within such 30 days, during the period that such appeal is pending).
For purposes of subparagraph (A), an offer is pending beginning on the date the Secretary accepts such offer for processing.
(2) Installment agreements
No levy may be made under subsection (a) on the property or rights to property of any person with respect to any unpaid tax—
(A) during the period that an offer by such person for an installment agreement under section 6159 for payment of such unpaid tax is pending with the Secretary;
(B) if such offer is rejected by the Secretary, during the 30 days thereafter (and, if an appeal of such rejection is filed within such 30 days, during the period that such appeal is pending);
(C) during the period that such an installment agreement for payment of such unpaid tax is in effect; and
(D) if such agreement is terminated by the Secretary, during the 30 days thereafter (and, if an appeal of such termination is filed within such 30 days, during the period that such appeal is pending).
(3) Certain rules to apply
Rules similar to the rules of—
(A) paragraphs (3) and (4) of subsection (i), and
(B) except in the case of paragraph (2)(C), paragraph (5) of subsection (i),
shall apply for purposes of this subsection.
(l) Cross references
(1) For provisions relating to jeopardy, see subchapter A of
(2) For proceedings applicable to sale of seized property see section 6335.
(3) For release and notice of release of levy, see section 6343.
(Aug. 16, 1954, ch. 736,
Editorial Notes
References in Text
Section 32101 of the FAST Act, referred to in subsec. (d)(4)(G), is section 32101 of
The Railroad Retirement Act, referred to in subsec. (h)(2)(C), is act Aug. 29, 1935, ch. 812, as amended generally by
The Railroad Unemployment Insurance Act, referred to in subsec. (h)(2)(C), is act June 25, 1938, ch. 680,
The Social Security Act, referred to in subsec. (h)(3), is act Aug. 14, 1935, ch. 531,
Amendments
2015—Subsec. (d)(4)(G).
Subsec. (h)(3).
2014—Subsec. (h)(3).
2011—Subsec. (h)(3).
2004—Subsec. (h)(3).
2002—Subsec. (k)(3).
2000—Subsec. (k)(3).
1998—Subsec. (h)(1).
Subsec. (i).
Subsec. (j).
Subsec. (k).
Subsec. (l).
1997—Subsecs. (h), (i).
1988—Subsec. (d)(2).
Subsec. (d)(4).
Subsec. (e).
Subsecs. (f), (g).
Subsec. (h).
1984—Subsec. (b).
1982—Subsec. (d).
Subsec. (e).
Subsec. (f).
1976—Subsec. (a).
Subsec. (b).
Subsec. (c).
Subsec. (d)(1).
Subsec. (d)(2).
Subsec. (d)(3).
1971—Subsecs. (d), (e).
1966—Subsec. (b).
Statutory Notes and Related Subsidiaries
Effective Date of 2015 Amendment
Effective Date of 2014 Amendment
Effective Date of 2011 Amendment
Effective Date of 2004 Amendment
Effective Date of 2002 Amendment
Effective Date of 1998 Amendment
"(1)
"(2)
Amendment by section 6010(f) of
Effective Date of 1997 Amendment
Effective Date of 1988 Amendment
"(1)
"(2)
Effective Date of 1984 Amendment
Amendment by
Effective Date of 1982 Amendment
Effective Date of 1976 Amendment
Amendment by section 1209(d)(1), (2), (4) of
Effective Date of 1971 Amendment
Effective Date of 1966 Amendment
Amendment by
§6332. Surrender of property subject to levy
(a) Requirement
Except as otherwise provided in this section, any person in possession of (or obligated with respect to) property or rights to property subject to levy upon which a levy has been made shall, upon demand of the Secretary, surrender such property or rights (or discharge such obligation) to the Secretary, except such part of the property or rights as is, at the time of such demand, subject to an attachment or execution under any judicial process.
(b) Special rule for life insurance and endowment contracts
(1) In general
A levy on an organization with respect to a life insurance or endowment contract issued by such organization shall, without necessity for the surrender of the contract document, constitute a demand by the Secretary for payment of the amount described in paragraph (2) and the exercise of the right of the person against whom the tax is assessed to the advance of such amount. Such organization shall pay over such amount 90 days after service of notice of levy. Such notice shall include a certification by the Secretary that a copy of such notice has been mailed to the person against whom the tax is assessed at his last known address.
(2) Satisfaction of levy
Such levy shall be deemed to be satisfied if such organization pays over to the Secretary the amount which the person against whom the tax is assessed could have had advanced to him by such organization on the date prescribed in paragraph (1) for the satisfaction of such levy, increased by the amount of any advance (including contractual interest thereon) made to such person on or after the date such organization had actual notice or knowledge (within the meaning of section 6323(i)(1)) of the existence of the lien with respect to which such levy is made, other than an advance (including contractual interest thereon) made automatically to maintain such contract in force under an agreement entered into before such organization had such notice or knowledge.
(3) Enforcement proceedings
The satisfaction of a levy under paragraph (2) shall be without prejudice to any civil action for the enforcement of any lien imposed by this title with respect to such contract.
(c) Special rule for banks
Any bank (as defined in section 408(n)) shall surrender (subject to an attachment or execution under judicial process) any deposits (including interest thereon) in such bank only after 21 days after service of levy.
(d) Enforcement of levy
(1) Extent of personal liability
Any person who fails or refuses to surrender any property or rights to property, subject to levy, upon demand by the Secretary, shall be liable in his own person and estate to the United States in a sum equal to the value of the property or rights not so surrendered, but not exceeding the amount of taxes for the collection of which such levy has been made, together with costs and interest on such sum at the underpayment rate established under section 6621 from the date of such levy (or, in the case of a levy described in section 6331(d)(3), from the date such person would otherwise have been obligated to pay over such amounts to the taxpayer). Any amount (other than costs) recovered under this paragraph shall be credited against the tax liability for the collection of which such levy was made.
(2) Penalty for violation
In addition to the personal liability imposed by paragraph (1), if any person required to surrender property or rights to property fails or refuses to surrender such property or rights to property without reasonable cause, such person shall be liable for a penalty equal to 50 percent of the amount recoverable under paragraph (1). No part of such penalty shall be credited against the tax liability for the collection of which such levy was made.
(e) Effect of honoring levy
Any person in possession of (or obligated with respect to) property or rights to property subject to levy upon which a levy has been made who, upon demand by the Secretary, surrenders such property or rights to property (or discharges such obligation) to the Secretary (or who pays a liability under subsection (d)(1)) shall be discharged from any obligation or liability to the delinquent taxpayer and any other person with respect to such property or rights to property arising from such surrender or payment.
(f) Person defined
The term "person," as used in subsection (a), includes an officer or employee of a corporation or a member or employee of a partnership, who as such officer, employee, or member is under a duty to surrender the property or rights to property, or to discharge the obligation.
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
1990—Subsec. (a).
1988—Subsec. (a).
Subsec. (c).
Subsec. (d).
Subsec. (e).
Subsec. (f).
1986—Subsec. (c)(1).
1976—Subsecs. (a), (b).
Subsec. (c)(1).
Subsec. (d).
1975—Subsec. (c)(1).
1966—Subsec. (a).
Subsec. (b).
Subsec. (c).
Subsec. (d).
Subsec. (e).
Statutory Notes and Related Subsidiaries
Effective Date of 1988 Amendment
Amendment by section 6236(e) of
Effective Date of 1986 Amendment
Amendment by
Effective Date of 1976 Amendment
Amendment by section 1209(d)(3) of
Effective Date of 1975 Amendment
Amendment by
Effective Date of 1966 Amendment
Amendment by
§6333. Production of books
If a levy has been made or is about to be made on any property, or right to property, any person having custody or control of any books or records, containing evidence or statements relating to the property or right to property subject to levy, shall, upon demand of the Secretary, exhibit such books or records to the Secretary.
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
1976—
§6334. Property exempt from levy
(a) Enumeration
There shall be exempt from levy—
(1) Wearing apparel and school books
Such items of wearing apparel and such school books as are necessary for the taxpayer or for members of his family;
(2) Fuel, provisions, furniture, and personal effects
So much of the fuel, provisions, furniture, and personal effects in the taxpayer's household, and of the arms for personal use, livestock, and poultry of the taxpayer, as does not exceed $6,250 in value;
(3) Books and tools of a trade, business, or profession
So many of the books and tools necessary for the trade, business, or profession of the taxpayer as do not exceed in the aggregate $3,125 in value.
(4) Unemployment benefits
Any amount payable to an individual with respect to his unemployment (including any portion thereof payable with respect to dependents) under an unemployment compensation law of the United States, of any State, or of the District of Columbia or of the Commonwealth of Puerto Rico.
(5) Undelivered mail
Mail, addressed to any person, which has not been delivered to the addressee.
(6) Certain annuity and pension payments
Annuity or pension payments under the Railroad Retirement Act, benefits under the Railroad Unemployment Insurance Act, special pension payments received by a person whose name has been entered on the Army, Navy, Air Force, and Coast Guard Medal of Honor roll (
(7) Workmen's compensation
Any amount payable to an individual as workmen's compensation (including any portion thereof payable with respect to dependents) under a workmen's compensation law of the United States, any State, the District of Columbia, or the Commonwealth of Puerto Rico.
(8) Judgments for support of minor children
If the taxpayer is required by judgment of a court of competent jurisdiction, entered prior to the date of levy, to contribute to the support of his minor children, so much of his salary, wages, or other income as is necessary to comply with such judgment.
(9) Minimum exemption for wages, salary, and other income
Any amount payable to or received by an individual as wages or salary for personal services, or as income derived from other sources, during any period, to the extent that the total of such amounts payable to or received by him during such period does not exceed the applicable exempt amount determined under subsection (d).
(10) Certain service-connected disability payments
Any amount payable to an individual as a service-connected (within the meaning of
(A) subchapter II, III, IV, V, or VI of
(B)
(11) Certain public assistance payments
Any amount payable to an individual as a recipient of public assistance under—
(A) title IV or title XVI (relating to supplemental security income for the aged, blind, and disabled) of the Social Security Act, or
(B) State or local government public assistance or public welfare programs for which eligibility is determined by a needs or income test.
(12) Assistance under Job Training Partnership Act
Any amount payable to a participant under the Job Training Partnership Act (
(13) Residences exempt in small deficiency cases and principal residences and certain business assets exempt in absence of certain approval or jeopardy
(A) Residences in small deficiency cases
If the amount of the levy does not exceed $5,000—
(i) any real property used as a residence by the taxpayer; or
(ii) any real property of the taxpayer (other than real property which is rented) used by any other individual as a residence.
(B) Principal residences and certain business assets
Except to the extent provided in subsection (e)—
(i) the principal residence of the taxpayer (within the meaning of section 121); and
(ii) tangible personal property or real property (other than real property which is rented) used in the trade or business of an individual taxpayer.
(b) Appraisal
The officer seizing property of the type described in subsection (a) shall appraise and set aside to the owner the amount of such property declared to be exempt. If the taxpayer objects at the time of the seizure to the valuation fixed by the officer making the seizure, the Secretary shall summon three disinterested individuals who shall make the valuation.
(c) No other property exempt
Notwithstanding any other law of the United States (including section 207 of the Social Security Act), no property or rights to property shall be exempt from levy other than the property specifically made exempt by subsection (a).
(d) Exempt amount of wages, salary, or other income
(1) Individuals on weekly basis
In the case of an individual who is paid or receives all of his wages, salary, and other income on a weekly basis, the amount of the wages, salary, and other income payable to or received by him during any week which is exempt from levy under subsection (a)(9) shall be the exempt amount.
(2) Exempt amount
For purposes of paragraph (1), the term "exempt amount" means an amount equal to—
(A) the sum of—
(i) the standard deduction, and
(ii) the aggregate amount of the deductions for personal exemptions allowed the taxpayer under section 151 in the taxable year in which such levy occurs, divided by
(B) 52.
Unless the taxpayer submits to the Secretary a written and properly verified statement specifying the facts necessary to determine the proper amount under subparagraph (A), subparagraph (A) shall be applied as if the taxpayer were a married individual filing a separate return with only 1 personal exemption.
(3) Individuals on basis other than weekly
In the case of any individual not described in paragraph (1), the amount of the wages, salary, and other income payable to or received by him during any applicable pay period or other fiscal period (as determined under regulations prescribed by the Secretary) which is exempt from levy under subsection (a)(9) shall be an amount (determined under such regulations) which as nearly as possible will result in the same total exemption from levy for such individual over a period of time as he would have under paragraph (1) if (during such period of time) he were paid or received such wages, salary, and other income on a regular weekly basis.
(4) Years when personal exemption amount is zero
(A) In general
In the case of any taxable year in which the exemption amount under section 151(d) is zero, paragraph (2) shall not apply and for purposes of paragraph (1) the term "exempt amount" means an amount equal to—
(i) the sum of the amount determined under subparagraph (B) and the standard deduction, divided by
(ii) 52.
(B) Amount determined
For purposes of subparagraph (A), the amount determined under this subparagraph is $4,150 multiplied by the number of the taxpayer's dependents for the taxable year in which the levy occurs.
(C) Inflation adjustment
In the case of any taxable year beginning in a calendar year after 2018, the $4,150 amount in subparagraph (B) shall be increased by an amount equal to—
(i) such dollar amount, multiplied by
(ii) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting "2017" for "2016" in subparagraph (A)(ii) thereof.
If any increase determined under the preceding sentence is not a multiple of $100, such increase shall be rounded to the next lowest multiple of $100.
(D) Verified statement
Unless the taxpayer submits to the Secretary a written and properly verified statement specifying the facts necessary to determine the proper amount under subparagraph (A), subparagraph (A) shall be applied as if the taxpayer were a married individual filing a separate return with no dependents.
(e) Levy allowed on principal residences and certain business assets in certain circumstances
(1) Principal residences
(A) Approval required
A principal residence shall not be exempt from levy if a judge or magistrate of a district court of the United States approves (in writing) the levy of such residence.
(B) Jurisdiction
The district courts of the United States shall have exclusive jurisdiction to approve a levy under subparagraph (A).
(2) Certain business assets
Property (other than a principal residence) described in subsection (a)(13)(B) shall not be exempt from levy if—
(A) a district director or assistant district director of the Internal Revenue Service personally approves (in writing) the levy of such property; or
(B) the Secretary finds that the collection of tax is in jeopardy.
An official may not approve a levy under subparagraph (A) unless the official determines that the taxpayer's other assets subject to collection are insufficient to pay the amount due, together with expenses of the proceedings.
(f) Levy allowed on certain specified payments
Any payment described in subparagraph (B) or (C) of section 6331(h)(2) shall not be exempt from levy if the Secretary approves the levy thereon under section 6331(h).
(g) Inflation adjustment
(1) In general
In the case of any calendar year beginning after 1999, each dollar amount referred to in paragraphs (2) and (3) of subsection (a) 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 such calendar year, by substituting "calendar year 1998" for "calendar year 2016" in subparagraph (A)(ii) thereof.
(2) Rounding
If any dollar amount after being increased under paragraph (1) is not a multiple of $10, such dollar amount shall be rounded to the nearest multiple of $10.
(Aug. 16, 1954, ch. 736,
Inflation Adjusted Items for Certain Years
For inflation adjustment of certain items in this section, see Revenue Procedures listed in a table under
Editorial Notes
References in Text
The Railroad Retirement Act, referred to in subsec. (a)(6), is act Aug. 29, 1935, ch. 812, as amended generally by
The Railroad Unemployment Insurance Act, referred to in subsec. (a)(6), is act June 25, 1938, ch. 680,
The Social Security Act, referred to in subsecs. (a)(11)(A) and (c), is act Aug. 14, 1935, ch. 531,
The Job Training Partnership Act, referred to in subsec. (a)(12), is
Amendments
2018—Subsec. (a)(10)(A).
2017—Subsec. (d)(4).
Subsec. (g)(1)(B).
1998—Subsec. (a)(2).
Subsec. (a)(3).
Subsec. (a)(13).
Subsec. (e).
"(1) a district director or assistant district director of the Internal Revenue Service personally approves (in writing) the levy of such property, or
"(2) the Secretary finds that the collection of tax is in jeopardy."
Subsec. (g)(1).
Subsec. (g)(1)(B).
1997—Subsec. (a)(11)(A).
Subsec. (a)(13).
Subsecs. (f), (g).
1996—Subsec. (a)(2).
Subsec. (a)(3).
Subsec. (a)(11)(A).
Subsec. (f).
1991—Subsec. (a)(6).
1988—Subsec. (a)(2).
Subsec. (a)(3).
Subsec. (a)(10)(A).
Subsec. (a)(10)(B), (C).
Subsec. (a)(11) to (13).
Subsec. (d)(1).
"(A) $75, plus
"(B) $25 for each individual who is specified in a written statement which is submitted to the person on whom notice of levy is served and which is verified in such manner as the Secretary shall prescribe by regulations and—
"(i) over half of whose support for the payroll period was received from the taxpayer,
"(ii) who is the spouse of the taxpayer, or who bears a relationship to the taxpayer specified in paragraphs (1) through (9) of section 152(a) (relating to definition of dependents), and
"(iii) who is not a minor child of the taxpayer with respect to whom amounts are exempt from levy under subsection (a)(8) for the payroll period.
For purposes of subparagraph (B)(ii) of the preceding sentence, 'payroll period' shall be substituted for 'taxable year' each place it appears in paragraph (9) of section 152(a)."
Subsec. (d)(2), (3).
Subsec. (e).
1986—Subsec. (a)(10).
1984—Subsec. (c).
1982—Subsec. (a)(2).
Subsec. (a)(3).
Subsec. (d)(1)(A).
Subsec. (d)(1)(B).
1976—Subsec. (a)(8).
Subsec. (a)(9).
Subsec. (b).
Subsec. (d).
1969—Subsec. (a)(8).
1966—Subsec. (a)(4).
Subsec. (a)(6), (7).
1965—Subsec. (a)(5).
1958—Subsec. (a)(4).
Statutory Notes and Related Subsidiaries
Change of Name
Reference to United States magistrate or to magistrate deemed to refer to United States magistrate judge pursuant to section 321 of
Effective Date of 2017 Amendment
Amendment by section 11002(d)(1)(II) of
Amendment by section 11041(d) of
Effective Date of 1998 Amendment
Effective Date of 1997 Amendments
Amendment by section 312(d)(1) of
Amendment by
Effective Date of 1996 Amendments
Amendment by section 110(l)(3) of
Effective Date of 1988 Amendment
Amendment by section 6236(c) of
Effective Date of 1986 Amendment
Effective Date of 1984 Amendment
Amendment by
Effective Date of 1982 Amendment
Effective Date of 1976 Amendment
Effective Date of 1969 Amendment
Effective Date of 1966 Amendment
Amendment by
Effective Date of 1965 Amendment
Transfer of Functions
For transfer of authorities, functions, personnel, and assets of the Coast Guard, including the authorities and functions of the Secretary of Transportation relating thereto, to the Department of Homeland Security, and for treatment of related references, see
State Fish and Wildlife Permits
"(1)
"(2)
§6335. Sale of seized property
(a) Notice of seizure
As soon as practicable after seizure of property, notice in writing shall be given by the Secretary to the owner of the property (or, in the case of personal property, the possessor thereof), or shall be left at his usual place of abode or business if he has such within the internal revenue district where the seizure is made. If the owner cannot be readily located, or has no dwelling or place of business within such district, the notice may be mailed to his last known address. Such notice shall specify the sum demanded and shall contain, in the case of personal property, an account of the property seized and, in the case of real property, a description with reasonable certainty of the property seized.
(b) Notice of sale
The Secretary shall as soon as practicable after the seizure of the property give notice to the owner, in the manner prescribed in subsection (a), and shall cause a notification to be published in some newspaper published or generally circulated within the county wherein such seizure is made, or if there be no newspaper published or generally circulated in such county, shall post such notice at the post office nearest the place where the seizure is made, and in not less than two other public places. Such notice shall specify the property to be sold, and the time, place, manner, and conditions of the sale thereof. Whenever levy is made without regard to the 10-day period provided in section 6331(a), public notice of sale of the property seized shall not be made within such 10-day period unless section 6336 (relating to sale of perishable goods) is applicable.
(c) Sale of indivisible property
If any property liable to levy is not divisible, so as to enable the Secretary by sale of a part thereof to raise the whole amount of the tax and expenses, the whole of such property shall be sold.
(d) Time and place of sale
The time of sale shall not be less than 10 days nor more than 40 days from the time of giving public notice under subsection (b). The place of sale shall be within the county in which the property is seized, except by special order of the Secretary.
(e) Manner and conditions of sale
(1) In general
(A) Determinations relating to minimum price
Before the sale of property seized by levy, the Secretary shall determine—
(i) a minimum price below which such property shall not be sold (taking into account the expense of making the levy and conducting the sale), and
(ii) whether, on the basis of criteria prescribed by the Secretary, the purchase of such property by the United States at such minimum price would be in the best interest of the United States.
(B) Sale to highest bidder at or above minimum price
If, at the sale, one or more persons offer to purchase such property for not less than the amount of the minimum price, the property shall be declared sold to the highest bidder.
(C) Property deemed sold to United States at minimum price in certain cases
If no person offers the amount of the minimum price for such property at the sale and the Secretary has determined that the purchase of such property by the United States would be in the best interest of the United States, the property shall be declared to be sold to the United States at such minimum price.
(D) Release to owner in other cases
If, at the sale, the property is not declared sold under subparagraph (B) or (C), the property shall be released to the owner thereof and the expense of the levy and sale shall be added to the amount of tax for the collection of which the levy was made. Any property released under this subparagraph shall remain subject to any lien imposed by subchapter C.
(2) Additional rules applicable to sale
The Secretary shall by regulations prescribe the manner and other conditions of the sale of property seized by levy. If one or more alternative methods or conditions are permitted by regulations, the Secretary shall select the alternatives applicable to the sale. Such regulations shall provide:
(A) That the sale shall not be conducted in any manner other than—
(i) by public auction, or
(ii) by public sale under sealed bids.
(B) In the case of the seizure of several items of property, whether such items shall be offered separately, in groups, or in the aggregate; and whether such property shall be offered both separately (or in groups) and in the aggregate, and sold under whichever method produces the highest aggregate amount.
(C) Whether the announcement of the minimum price determined by the Secretary may be delayed until the receipt of the highest bid.
(D) Whether payment in full shall be required at the time of acceptance of a bid, or whether a part of such payment may be deferred for such period (not to exceed 1 month) as may be determined by the Secretary to be appropriate.
(E) The extent to which methods (including advertising) in addition to those prescribed in subsection (b) may be used in giving notice of the sale.
(F) Under what circumstances the Secretary may adjourn the sale from time to time (but such adjournments shall not be for a period to exceed in all 1 month).
(3) Payment of amount bid
If payment in full is required at the time of acceptance of a bid and is not then and there paid, the Secretary shall forthwith proceed to again sell the property in the manner provided in this subsection. If the conditions of the sale permit part of the payment to be deferred, and if such part is not paid within the prescribed period, suit may be instituted against the purchaser for the purchase price or such part thereof as has not been paid, together with interest at the rate of 6 percent per annum from the date of the sale; or, in the discretion of the Secretary, the sale may be declared by the Secretary to be null and void for failure to make full payment of the purchase price and the property may again be advertised and sold as provided in subsections (b) and (c) and this subsection. In the event of such readvertisement and sale any new purchaser shall receive such property or rights to property, free and clear of any claim or right of the former defaulting purchaser, of any nature whatsoever, and the amount paid upon the bid price by such defaulting purchaser shall be forfeited.
(4) Cross reference
For provision providing for civil damages for violation of paragraph (1)(A)(i), see section 7433.
(f) Right to request sale of seized property within 60 days
The owner of any property seized by levy may request that the Secretary sell such property within 60 days after such request (or within such longer period as may be specified by the owner). The Secretary shall comply with such request unless the Secretary determines (and notifies the owner within such period) that such compliance would not be in the best interests of the United States.
(g) Stay of sale of seized property pending Tax Court decision
For restrictions on sale of seized property pending Tax Court decision, see section 6863(b)(3).
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
1998—Subsec. (e)(1)(A)(i).
Subsec. (e)(4).
1988—Subsecs. (f), (g).
1986—Subsec. (e)(1).
1976—
1966—Subsec. (b).
Statutory Notes and Related Subsidiaries
Effective Date of 1998 Amendment
Effective Date of 1988 Amendment
Amendment by
Effective Date of 1986 Amendment
"(1) property seized after the date of the enactment of this Act [Oct. 22, 1986], and
"(2) property seized on or before such date which is held by the United States on such date."
Effective Date of 1966 Amendment
Amendment by
Uniform Asset Disposal Mechanism
§6336. Sale of perishable goods
If the Secretary determines that any property seized is liable to perish, he shall appraise the value of such property and—
(1) Return to owner
If the owner of the property can be readily found, the Secretary shall give him notice of such determination of the appraised value of the property. The property shall be returned to the owner if, within such time as may be specified in the notice, the owner—
(A) Pays to the Secretary an amount equal to the appraised value, or
(B) Gives bond in such form, with such sureties, and in such amount as the Secretary shall prescribe, to pay the appraised amount at such time as the Secretary determines to be appropriate in the circumstances.
(2) Immediate sale
If the owner does not pay such amount or furnish such bond in accordance with this section, the Secretary shall as soon as practicable make public sale of the property in accordance with such regulations as may be prescribed by the Secretary.
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
2019—
1976—
Statutory Notes and Related Subsidiaries
Effective Date of 2019 Amendment
§6337. Redemption of property
(a) Before sale
Any person whose property has been levied upon shall have the right to pay the amount due, together with the expenses of the proceeding, if any, to the Secretary at any time prior to the sale thereof, and upon such payment the Secretary shall restore such property to him, and all further proceedings in connection with the levy on such property shall cease from the time of such payment.
(b) Redemption of real estate after sale
(1) Period
The owners of any real property sold as provided in section 6335, their heirs, executors, or administrators, or any person having any interest therein, or a lien thereon, or any person in their behalf, shall be permitted to redeem the property sold, or any particular tract of such property, at any time within 180 days after the sale thereof.
(2) Price
Such property or tract of property shall be permitted to be redeemed upon payment to the purchaser, or in case he cannot be found in the county in which the property to be redeemed is situated, then to the Secretary, for the use of the purchaser, his heirs, or assigns, the amount paid by such purchaser and interest thereon at the rate of 20 percent per annum.
(c) Record
When any lands sold are redeemed as provided in this section, the Secretary shall cause entry of the fact to be made upon the record mentioned in section 6340, and such entry shall be evidence of such redemption.
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
1982—Subsec. (b)(1).
1976—
1966—Subsec. (b)(1).
Statutory Notes and Related Subsidiaries
Effective Date of 1982 Amendment
Effective Date of 1966 Amendment
Amendment by
§6338. Certificate of sale; deed of real property
(a) Certificate of sale
In the case of property sold as provided in section 6335, the Secretary shall give to the purchaser a certificate of sale upon payment in full of the purchase price. In the case of real property, such certificate shall set forth the real property purchased, for whose taxes the same was sold, the name of the purchaser, and the price paid therefor.
(b) Deed to real property
In the case of any real property sold as provided in section 6335 and not redeemed in the manner and within the time provided in section 6337, the Secretary shall execute (in accordance with the laws of the State in which such real property is situated pertaining to sales of real property under execution) to the purchaser of such real property at such sale, upon his surrender of the certificate of sale, a deed of the real property so purchased by him, reciting the facts set forth in the certificate.
(c) Real property purchased by United States
If real property is declared purchased by the United States at a sale pursuant to section 6335, the Secretary shall at the proper time execute a deed therefor; and without delay cause such deed to be duly recorded in the proper registry of deeds.
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
1976—
1966—Subsec. (c).
1958—Subsec. (c).
Statutory Notes and Related Subsidiaries
Effective Date of 1966 Amendment
Amendment by
Effective Date of 1958 Amendment
Amendment by
§6339. Legal effect of certificate of sale of personal property and deed of real property
(a) Certificate of sale of property other than real property
In all cases of sale pursuant to section 6335 of property (other than real property), the certificate of such sale—
(1) As evidence
Shall be prima facie evidence of the right of the officer to make such sale, and conclusive evidence of the regularity of his proceedings in making the sale; and
(2) As conveyances
Shall transfer to the purchaser all right, title, and interest of the party delinquent in and to the property sold; and
(3) As authority for transfer of corporate stock
If such property consists of stocks, shall be notice, when received, to any corporation, company, or association of such transfer, and shall be authority to such corporation, company, or association to record the transfer on its books and records in the same manner as if the stocks were transferred or assigned by the party holding the same, in lieu of any original or prior certificate, which shall be void, whether canceled or not; and
(4) As receipts
If the subject of sale is securities or other evidences of debt, shall be a good and valid receipt to the person holding the same, as against any person holding or claiming to hold possession of such securities or other evidences of debt; and
(5) As authority for transfer of title to motor vehicle
If such property consists of a motor vehicle, shall be notice, when received, to any public official charged with the registration of title to motor vehicles, of such transfer and shall be authority to such official to record the transfer on his books and records in the same manner as if the certificate of title to such motor vehicle were transferred or assigned by the party holding the same, in lieu of any original or prior certificate, which shall be void, whether canceled or not.
(b) Deed of real property
In the case of the sale of real property pursuant to section 6335—
(1) Deed as evidence
The deed of sale given pursuant to section 6338 shall be prima facie evidence of the facts therein stated; and
(2) Deed as conveyance of title
If the proceedings of the Secretary as set forth have been substantially in accordance with the provisions of law, such deed shall be considered and operate as a conveyance of all the right, title, and interest the party delinquent had in and to the real property thus sold at the time the lien of the United States attached thereto.
(c) Effect of junior encumbrances
A certificate of sale of personal property given or a deed to real property executed pursuant to section 6338 shall discharge such property from all liens, encumbrances, and titles over which the lien of the United States with respect to which the levy was made had priority.
(d) Cross references
(1) For distribution of surplus proceeds, see section 6342(b).
(2) For judicial procedure with respect to surplus proceeds, see section 7426(a)(2).
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
1976—Subsec. (b)(2).
1966—Subsecs. (c), (d).
1958—Subsec. (b)(2).
Statutory Notes and Related Subsidiaries
Effective Date of 1966 Amendment
Amendment by
Effective Date of 1958 Amendment
Amendment by
§6340. Records of sale
(a) Requirement
The Secretary shall, for each internal revenue district, keep a record of all sales of property under section 6335 and of redemptions of such property. The record shall set forth the tax for which any such sale was made, the dates of seizure and sale, the name of the party assessed and all proceedings in making such sale, the amount of expenses, the names of the purchasers, and the date of the deed or certificate of sale of personal property.
(b) Copy as evidence
A copy of such record, or any part thereof, certified by the Secretary shall be evidence in any court of the truth of the facts therein stated.
(c) Accounting to taxpayer
The taxpayer with respect to whose liability the sale was conducted or who redeemed the property shall be furnished—
(1) the record under subsection (a) (other than the names of the purchasers);
(2) the amount from such sale applied to the taxpayer's liability; and
(3) the remaining balance of such liability.
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
1998—Subsec. (a).
Subsec. (c).
1976—
Statutory Notes and Related Subsidiaries
Effective Date of 1998 Amendment
§6341. Expense of levy and sale
The Secretary shall determine the expenses to be allowed in all cases of levy and sale.
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
1976—
§6342. Application of proceeds of levy
(a) Collection of liability
Any money realized by proceedings under this subchapter (whether by seizure, by surrender under section 6332 (except pursuant to subsection (d)(2) thereof), or by sale of seized property) or by sale of property redeemed by the United States (if the interest of the United States in such property was a lien arising under the provisions of this title) shall be applied as follows:
(1) Expense of levy and sale
First, against the expenses of the proceedings;
(2) Specific tax liability on seized property
If the property seized and sold is subject to a tax imposed by any internal revenue law which has not been paid, the amount remaining after applying paragraph (1) shall then be applied against such tax liability (and, if such tax was not previously assessed, it shall then be assessed);
(3) Liability of delinquent taxpayer
The amount, if any, remaining after applying paragraphs (1) and (2) shall then be applied against the liability in respect of which the levy was made or the sale was conducted.
(b) Surplus proceeds
Any surplus proceeds remaining after the application of subsection (a) shall, upon application and satisfactory proof in support thereof, be credited or refunded by the Secretary to the person or persons legally entitled thereto.
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
2018—Subsec. (a).
1976—
1966—Subsec. (a).
Statutory Notes and Related Subsidiaries
Effective Date of 1966 Amendment
Amendment by
§6343. Authority to release levy and return property
(a) Release of levy and notice of release
(1) In general
Under regulations prescribed by the Secretary, the Secretary shall release the levy upon all, or part of, the property or rights to property levied upon and shall promptly notify the person upon whom such levy was made (if any) that such levy has been released if—
(A) the liability for which such levy was made is satisfied or becomes unenforceable by reason of lapse of time,
(B) release of such levy will facilitate the collection of such liability,
(C) the taxpayer has entered into an agreement under section 6159 to satisfy such liability by means of installment payments, unless such agreement provides otherwise,
(D) the Secretary has determined that such levy is creating an economic hardship due to the financial condition of the taxpayer, or
(E) the fair market value of the property exceeds such liability and release of the levy on a part of such property could be made without hindering the collection of such liability.
For purposes of subparagraph (C), the Secretary is not required to release such levy if such release would jeopardize the secured creditor status of the Secretary.
(2) Expedited determination on certain business property
In the case of any tangible personal property essential in carrying on the trade or business of the taxpayer, the Secretary shall provide for an expedited determination under paragraph (1) if levy on such tangible personal property would prevent the taxpayer from carrying on such trade or business.
(3) Subsequent levy
The release of levy on any property under paragraph (1) shall not prevent any subsequent levy on such property.
(b) Return of property
If the Secretary determines that property has been wrongfully levied upon, it shall be lawful for the Secretary to return—
(1) the specific property levied upon,
(2) an amount of money equal to the amount of money levied upon, or
(3) an amount of money equal to the amount of money received by the United States from a sale of such property.
Property may be returned at any time. An amount equal to the amount of money levied upon or received from such sale may be returned at any time before the expiration of 2 years from the date of such levy. For purposes of paragraph (3), if property is declared purchased by the United States at a sale pursuant to section 6335(e) (relating to manner and conditions of sale), the United States shall be treated as having received an amount of money equal to the minimum price determined pursuant to such section or (if larger) the amount received by the United States from the resale of such property.
(c) Interest
Interest shall be allowed and paid at the overpayment rate established under section 6621—
(1) in a case described in subsection (b)(2), from the date the Secretary receives the money to a date (to be determined by the Secretary) preceding the date of return by not more than 30 days, or
(2) in a case described in subsection (b)(3), from the date of the sale of the property to a date (to be determined by the Secretary) preceding the date of return by not more than 30 days.
(d) Return of property in certain cases
If—
(1) any property has been levied upon, and
(2) the Secretary determines that—
(A) the levy on such property 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 levy was imposed by means of installment payments, unless such agreement provides otherwise,
(C) the return of such property will facilitate the collection of the tax liability, or
(D) with the consent of the taxpayer or the National Taxpayer Advocate, the return of such property would be in the best interests of the taxpayer (as determined by the National Taxpayer Advocate) and the United States,
the provisions of subsection (b) shall apply in the same manner as if such property had been wrongly levied upon, except that no interest shall be allowed under subsection (c).
(e) Release of levy upon agreement that amount is not collectible
In the case of a levy on the salary or wages payable to or received by the taxpayer, upon agreement with the taxpayer that the tax is not collectible, the Secretary shall release such levy as soon as practicable.
(f) Individuals held harmless on wrongful levy, etc.1 on retirement plan
(1) In general
If the Secretary determines that an individual's account or benefit under an eligible retirement plan (as defined in section 402(c)(8)(B)) has been levied upon in a case to which subsection (b) or (d)(2)(A) applies and property or an amount of money is returned to the individual—
(A) the individual may contribute such property or an amount equal to the sum of—
(i) the amount of money so returned by the Secretary, and
(ii) interest paid under subsection (c) on such amount of money,
into such eligible retirement plan if such contribution is permitted by the plan, or into an individual retirement plan (other than an endowment contract) to which a rollover contribution of a distribution from such eligible retirement plan is permitted, but only if such contribution is made not later than the due date (not including extensions) for filing the return of tax for the taxable year in which such property or amount of money is returned, and
(B) the Secretary shall, at the time such property or amount of money is returned, notify such individual that a contribution described in subparagraph (A) may be made.
(2) Treatment as rollover
The distribution on account of the levy and any contribution under paragraph (1) with respect to the return of such distribution shall be treated for purposes of this title as if such distribution and contribution were described in section 402(c), 402A(c)(3), 403(a)(4), 403(b)(8), 408(d)(3), 408A(d)(3), or 457(e)(16), whichever is applicable; except that—
(A) the contribution shall be treated as having been made for the taxable year in which the distribution on account of the levy occurred, and the interest paid under subsection (c) shall be treated as earnings within the plan after the contribution and shall not be included in gross income, and
(B) such contribution shall not be taken into account under section 408(d)(3)(B).
(3) Refund, etc., of income tax on levy
(A) In general
If any amount is includible in gross income for a taxable year by reason of a distribution on account of a levy referred to in paragraph (1) and any portion of such amount is treated as a rollover contribution under paragraph (2), any tax imposed by
(B) Exception
Subparagraph (A) shall not apply to a rollover contribution under this subsection which is made from an eligible retirement plan which is not a Roth IRA or a designated Roth account (within the meaning of section 402A) to a Roth IRA or a designated Roth account under an eligible retirement plan.
(4) Interest
Notwithstanding subsection (d), interest shall be allowed under subsection (c) in a case in which the Secretary makes a determination described in subsection (d)(2)(A) with respect to a levy upon an individual retirement plan.
(5) Treatment of inherited accounts
For purposes of paragraph (1)(A), section 408(d)(3)(C) shall be disregarded in determining whether an individual retirement plan is a plan to which a rollover contribution of a distribution from the plan levied upon is permitted.
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
2018—Subsec. (f).
2017—Subsec. (b).
1998—Subsec. (d)(2)(D).
Subsec. (e).
1996—Subsec. (d).
1988—Subsec. (a).
1986—Subsec. (c).
1979—Subsec. (c).
1976—
1966—
Statutory Notes and Related Subsidiaries
Effective Date of 2018 Amendment
Effective Date of 2017 Amendment
"(1) levies made after the date of the enactment of this Act [Dec. 22, 2017], and
"(2) levies made on or before such date if the 9-month period has not expired under section 6343(b) of the Internal Revenue Code of 1986 (without regard to this section) as of such date."
Effective Date of 1998 Amendment
Amendment by section 1102 of
Effective Date of 1988 Amendment
Amendment by
Effective Date of 1986 Amendment
Amendment by
Effective Date of 1979 Amendment
Effective Date of 1966 Amendment
Amendment by
1 So in original. Probably should be followed by a comma.
§6344. Cross references
(a) Length of period
For period within which levy may be begun in case of—
(1) Income, estate, and gift taxes, and taxes imposed by
(2) Employment and miscellaneous excise taxes, see section 6502(a).
(b) Delinquent collection officers
For distraint proceedings against delinquent internal revenue officers, see section 7804(c).
(c) Other references
For provisions relating to—
(1) Stamps, marks and brands, see section 6807.
(2) Administration of real estate acquired by the United States, see section 7506.
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
1998—Subsec. (b).
1988—Subsec. (a)(1).
1980—Subsec. (a)(1).
1976—Subsec. (a)(1).
1974—Subsec. (a)(1).
1969—Subsec. (a)(1).
Statutory Notes and Related Subsidiaries
Effective Date of 1988 Amendment
Amendment by
Effective Date of 1980 Amendment
Amendment by
Effective Date of 1976 Amendment
Amendment by section 1307(d)(2)(F)(v) of
Effective Date of 1974 Amendment
Amendment by
Effective Date of 1969 Amendment
Amendment by
[Subchapter E—Repealed]
[§§6361 to 6365. Repealed. Pub. L. 101–508, title XI, §11801(a)(45), Nov. 5, 1990, 104 Stat. 1388–522 ]
Section 6361, added
Section 6362, added
Section 6363, added
Section 6364, added
Section 6365, added
Statutory Notes and Related Subsidiaries
Savings Provision
For provisions that nothing in repeal by
CHAPTER 65 —ABATEMENTS, CREDITS, AND REFUNDS
1 Section numbers editorially supplied.
Subchapter A—Procedure in General
Editorial Notes
Amendments
2010—
1987—
§6401. Amounts treated as overpayments
(a) Assessment and collection after limitation period.
The term "overpayment" includes that part of the amount of the payment of any internal revenue tax which is assessed or collected after the expiration of the period of limitation properly applicable thereto.
(b) Excessive credits
(1) In general
If the amount allowable as credits under subpart C of part IV of subchapter A of
(2) Special rule for credit under section 33
For purposes of paragraph (1), any credit allowed under section 33 (relating to withholding of tax on nonresident aliens and on foreign corporations) for any taxable year shall be treated as a credit allowable under subpart C of part IV of subchapter A of
(c) Rule where no tax liability
An amount paid as tax shall not be considered not to constitute an overpayment solely by reason of the fact that there was no tax liability in respect of which such amount was paid.
(Aug. 16, 1954, ch. 736,
Editorial Notes
Codification
Amendments
2017—Subsec. (b)(1).
2009—Subsec. (b)(1).
2008—Subsec. (b)(1).
2005—Subsec. (b)(1).
1998—Subsec. (b)(1).
1988—Subsec. (b)(2).
1986—Subsec. (b)(2).
1984—Subsec. (b).
1983—Subsec. (b).
1982—Subsec. (b).
1980—Subsec. (d).
1978—Subsec. (b).
Subsec. (d).
1976—Subsec. (b).
1975—Subsec. (b).
1970—Subsec. (b).
1969—Subsec. (b).
1965—Subsec. (b).
Statutory Notes and Related Subsidiaries
Effective Date of 2017 Amendment
Amendment by
Effective Date of 2009 Amendment
Amendment by
Effective Date of 2008 Amendment
Amendment of this section and repeal of
Amendment by section 15316(c)(3) of
Effective Date of 2005 Amendment
Amendment by
Effective Date of 1998 Amendment
Effective Date of 1988 Amendment
Amendment by
Effective Date of 1986 Amendment
Amendment by
Effective Date of 1984 Amendment
Amendment by section 474(r)(36) of
Amendment by section 735(c)(16) of
Effective Date of 1980 Amendments
Amendment by
Amendment by
Effective Date of 1978 Amendment
Amendment by
Effective Date of 1976 Amendment
Amendment by
Effective Date of 1975 Amendment
Amendment by
Effective Date of 1970 Amendment
Amendment by
Effective Date of 1969 Amendment
Amendment by
Effective Date of 1965 Amendment
Amendment by
§6402. Authority to make credits or refunds
(a) General rule
In the case of any overpayment, the Secretary, within the applicable period of limitations, may credit the amount of such overpayment, including any interest allowed thereon, against any liability in respect of an internal revenue tax on the part of the person who made the overpayment and shall, subject to subsections (c), (d), (e), and (f), refund any balance to such person.
(b) Credits against estimated tax
The Secretary is authorized to prescribe regulations providing for the crediting against the estimated income tax for any taxable year of the amount determined by the taxpayer or the Secretary to be an overpayment of the income tax for a preceding taxable year.
(c) Offset of past-due support against overpayments
The amount of any overpayment to be refunded to the person making the overpayment shall be reduced by the amount of any past-due support (as defined in section 464(c) of the Social Security Act) owed by that person of which the Secretary has been notified by a State in accordance with section 464 of such Act. The Secretary shall remit the amount by which the overpayment is so reduced to the State collecting such support and notify the person making the overpayment that so much of the overpayment as was necessary to satisfy his obligation for past-due support has been paid to the State. The Secretary shall apply a reduction under this subsection first to an amount certified by the State as past due support under section 464 of the Social Security Act before any other reductions allowed by law. This subsection shall be applied to an overpayment prior to its being credited to a person's future liability for an internal revenue tax. For purposes of this subsection, any reference to a State shall include a reference to any Indian tribe or tribal organization receiving a grant under section 455(f) of the Social Security Act.
(d) Collection of debts owed to Federal agencies
(1) In general
Upon receiving notice from any Federal agency that a named person owes a past-due legally enforceable debt (other than past-due support subject to the provisions of subsection (c)) to such agency, the Secretary shall—
(A) reduce the amount of any overpayment payable to such person by the amount of such debt;
(B) pay the amount by which such overpayment is reduced under subparagraph (A) to such agency; and
(C) notify the person making such overpayment that such overpayment has been reduced by an amount necessary to satisfy such debt.
(2) Priorities for offset
Any overpayment by a person shall be reduced pursuant to this subsection after such overpayment is reduced pursuant to subsection (c) with respect to past-due support collected pursuant to an assignment under section 408(a)(3) of the Social Security Act (
(3) Treatment of OASDI overpayments
(A) Requirements
Paragraph (1) shall apply with respect to an OASDI overpayment only if the requirements of paragraphs (1) and (2) of
(B) Notice; protection of other persons filing joint return
(i) Notice
In the case of a debt consisting of an OASDI overpayment, if the Secretary determines upon receipt of the notice referred to in paragraph (1) that the refund from which the reduction described in paragraph (1)(A) would be made is based upon a joint return, the Secretary shall—
(I) notify each taxpayer filing such joint return that the reduction is being made from a refund based upon such return, and
(II) include in such notification a description of the procedures to be followed, in the case of a joint return, to protect the share of the refund which may be payable to another person.
(ii) Adjustments based on protections given to other taxpayers on joint return
If the other person filing a joint return with the person owing the OASDI overpayment takes appropriate action to secure his or her proper share of the refund subject to reduction under this subsection, the Secretary shall pay such share to such other person. The Secretary shall deduct the amount of such payment from amounts which are derived from subsequent reductions in refunds under this subsection and are payable to a trust fund referred to in subparagraph (C).
(C) Deposit of amount of reduction into appropriate trust fund
In lieu of payment, pursuant to paragraph (1)(B), of the amount of any reduction under this subsection to the Commissioner of Social Security, the Secretary shall deposit such amount in the Federal Old-Age and Survivors Insurance Trust Fund or the Federal Disability Insurance Trust Fund, whichever is certified to the Secretary as appropriate by the Commissioner of Social Security.
(D) OASDI overpayment
For purposes of this paragraph, the term "OASDI overpayment" means any overpayment of benefits made to an individual under title II of the Social Security Act.
(e) Collection of past-due, legally enforceable State income tax obligations
(1) In general
Upon receiving notice from any State that a named person owes a past-due, legally enforceable State income tax obligation to such State, the Secretary shall, under such conditions as may be prescribed by the Secretary—
(A) reduce the amount of any overpayment payable to such person by the amount of such State income tax obligation;
(B) pay the amount by which such overpayment is reduced under subparagraph (A) to such State and notify such State of such person's name, taxpayer identification number, address, and the amount collected; and
(C) notify the person making such overpayment that the overpayment has been reduced by an amount necessary to satisfy a past-due, legally enforceable State income tax obligation.
If an offset is made pursuant to a joint return, the notice under subparagraph (B) shall include the names, taxpayer identification numbers, and addresses of each person filing such return.
(2) Offset permitted only against residents of State seeking offset
Paragraph (1) shall apply to an overpayment by any person for a taxable year only if the address shown on the Federal return for such taxable year of the overpayment is an address within the State seeking the offset.
(3) Priorities for offset
Any overpayment by a person shall be reduced pursuant to this subsection—
(A) after such overpayment is reduced pursuant to—
(i) subsection (a) with respect to any liability for any internal revenue tax on the part of the person who made the overpayment;
(ii) subsection (c) with respect to past-due support; and
(iii) subsection (d) with respect to any past-due, legally enforceable debt owed to a Federal agency; and
(B) before such overpayment is credited to the future liability for any Federal internal revenue tax of such person pursuant to subsection (b).
If the Secretary receives notice from one or more agencies of the State of more than one debt subject to paragraph (1) or subsection (f) that is owed by such person to such an agency, any overpayment by such person shall be applied against such debts in the order in which such debts accrued.
(4) Notice; consideration of evidence
No State may take action under this subsection until such State—
(A) notifies by certified mail with return receipt the person owing the past-due State income tax liability that the State proposes to take action pursuant to this section;
(B) gives such person at least 60 days to present evidence that all or part of such liability is not past-due or not legally enforceable;
(C) considers any evidence presented by such person and determines that an amount of such debt is past-due and legally enforceable; and
(D) satisfies such other conditions as the Secretary may prescribe to ensure that the determination made under subparagraph (C) is valid and that the State has made reasonable efforts to obtain payment of such State income tax obligation.
(5) Past-due, legally enforceable State income tax obligation
For purposes of this subsection, the term "past-due, legally enforceable State income tax obligation" means a debt—
(A)(i) which resulted from—
(I) a judgment rendered by a court of competent jurisdiction which has determined an amount of State income tax to be due; or
(II) a determination after an administrative hearing which has determined an amount of State income tax to be due; and
(ii) which is no longer subject to judicial review; or
(B) which resulted from a State income tax which has been assessed but not collected, the time for redetermination of which has expired, and which has not been delinquent for more than 10 years.
For purposes of this paragraph, the term "State income tax" includes any local income tax administered by the chief tax administration agency of the State.
(6) Regulations
The Secretary shall issue regulations prescribing the time and manner in which States must submit notices of past-due, legally enforceable State income tax obligations and the necessary information that must be contained in or accompany such notices. The regulations shall specify the types of State income taxes and the minimum amount of debt to which the reduction procedure established by paragraph (1) may be applied. The regulations may require States to pay a fee to reimburse the Secretary for the cost of applying such procedure. Any fee paid to the Secretary pursuant to the preceding sentence shall be used to reimburse appropriations which bore all or part of the cost of applying such procedure.
(7) Erroneous payment to State
Any State receiving notice from the Secretary that an erroneous payment has been made to such State under paragraph (1) shall pay promptly to the Secretary, in accordance with such regulations as the Secretary may prescribe, an amount equal to the amount of such erroneous payment (without regard to whether any other amounts payable to such State under such paragraph have been paid to such State).
(f) Collection of unemployment compensation debts
(1) In general
Upon receiving notice from any State that a named person owes a covered unemployment compensation debt to such State, the Secretary shall, under such conditions as may be prescribed by the Secretary—
(A) reduce the amount of any overpayment payable to such person by the amount of such covered unemployment compensation debt;
(B) pay the amount by which such overpayment is reduced under subparagraph (A) to such State and notify such State of such person's name, taxpayer identification number, address, and the amount collected; and
(C) notify the person making such overpayment that the overpayment has been reduced by an amount necessary to satisfy a covered unemployment compensation debt.
If an offset is made pursuant to a joint return, the notice under subparagraph (C) shall include information related to the rights of a spouse of a person subject to such an offset.
(2) Priorities for offset
Any overpayment by a person shall be reduced pursuant to this subsection—
(A) after such overpayment is reduced pursuant to—
(i) subsection (a) with respect to any liability for any internal revenue tax on the part of the person who made the overpayment;
(ii) subsection (c) with respect to past-due support; and
(iii) subsection (d) with respect to any past-due, legally enforceable debt owed to a Federal agency; and
(B) before such overpayment is credited to the future liability for any Federal internal revenue tax of such person pursuant to subsection (b).
If the Secretary receives notice from a State or States of more than one debt subject to paragraph (1) or subsection (e) that is owed by a person to such State or States, any overpayment by such person shall be applied against such debts in the order in which such debts accrued.
(3) Notice; consideration of evidence
No State may take action under this subsection until such State—
(A) notifies the person owing the covered unemployment compensation debt that the State proposes to take action pursuant to this section;
(B) provides such person at least 60 days to present evidence that all or part of such liability is not legally enforceable or is not a covered unemployment compensation debt;
(C) considers any evidence presented by such person and determines that an amount of such debt is legally enforceable and is a covered unemployment compensation debt; and
(D) satisfies such other conditions as the Secretary may prescribe to ensure that the determination made under subparagraph (C) is valid and that the State has made reasonable efforts to obtain payment of such covered unemployment compensation debt.
(4) Covered unemployment compensation debt
For purposes of this subsection, the term "covered unemployment compensation debt" means—
(A) a past-due debt for erroneous payment of unemployment compensation due to fraud or the person's failure to report earnings which has become final under the law of a State certified by the Secretary of Labor pursuant to section 3304 and which remains uncollected;
(B) contributions due to the unemployment fund of a State for which the State has determined the person to be liable and which remain uncollected; and
(C) any penalties and interest assessed on such debt.
(5) Regulations
(A) In general
The Secretary may issue regulations prescribing the time and manner in which States must submit notices of covered unemployment compensation debt and the necessary information that must be contained in or accompany such notices. The regulations may specify the minimum amount of debt to which the reduction procedure established by paragraph (1) may be applied.
(B) Fee payable to Secretary
The regulations may require States to pay a fee to the Secretary, which may be deducted from amounts collected, to reimburse the Secretary for the cost of applying such procedure. Any fee paid to the Secretary pursuant to the preceding sentence shall be used to reimburse appropriations which bore all or part of the cost of applying such procedure.
(C) Submission of notices through Secretary of Labor
The regulations may include a requirement that States submit notices of covered unemployment compensation debt to the Secretary via the Secretary of Labor in accordance with procedures established by the Secretary of Labor. Such procedures may require States to pay a fee to the Secretary of Labor to reimburse the Secretary of Labor for the costs of applying this subsection. Any such fee shall be established in consultation with the Secretary of the Treasury. Any fee paid to the Secretary of Labor may be deducted from amounts collected and shall be used to reimburse the appropriation account which bore all or part of the cost of applying this subsection.
(6) Erroneous payment to State
Any State receiving notice from the Secretary that an erroneous payment has been made to such State under paragraph (1) shall pay promptly to the Secretary, in accordance with such regulations as the Secretary may prescribe, an amount equal to the amount of such erroneous payment (without regard to whether any other amounts payable to such State under such paragraph have been paid to such State).
(g) Review of reductions
No court of the United States shall have jurisdiction to hear any action, whether legal or equitable, brought to restrain or review a reduction authorized by subsection (c), (d), (e), or (f). No such reduction shall be subject to review by the Secretary in an administrative proceeding. No action brought against the United States to recover the amount of any such reduction shall be considered to be a suit for refund of tax. This subsection does not preclude any legal, equitable, or administrative action against the Federal agency or State to which the amount of such reduction was paid or any such action against the Commissioner of Social Security which is otherwise available with respect to recoveries of overpayments of benefits under section 204 of the Social Security Act.
(h) Federal agency
For purposes of this section, the term "Federal agency" means a department, agency, or instrumentality of the United States, and includes a Government corporation (as such term is defined in
(i) Treatment of payments to States
The Secretary may provide that, for purposes of determining interest, the payment of any amount withheld under subsection (c), (e), or (f) to a State shall be treated as a payment to the person or persons making the overpayment.
(j) Cross reference
For procedures relating to agency notification of the Secretary, see
(k) Refunds to certain fiduciaries of insolvent members of affiliated groups
Notwithstanding any other provision of law, in the case of an insolvent corporation which is a member of an affiliated group of corporations filing a consolidated return for any taxable year and which is subject to a statutory or court-appointed fiduciary, the Secretary may by regulation provide that any refund for such taxable year may be paid on behalf of such insolvent corporation to such fiduciary to the extent that the Secretary determines that the refund is attributable to losses or credits of such insolvent corporation.
(l) Explanation of reason for refund disallowance
In the case of a disallowance of a claim for refund, the Secretary shall provide the taxpayer with an explanation for such disallowance.
(m) Earliest date for certain refunds
No credit or refund of an overpayment for a taxable year shall be made to a taxpayer before the 15th day of the second month following the close of such taxable year if a credit is allowed to such taxpayer under section 24 (by reason of subsection (d) thereof) or 32 for such taxable year.
(n) Misdirected direct deposit refund
Not later than the date which is 6 months after the date of the enactment of the Taxpayer First Act, the Secretary shall prescribe regulations to establish procedures to allow for—
(1) taxpayers to report instances in which a refund made by the Secretary by electronic funds transfer was not transferred to the account of the taxpayer;
(2) coordination with financial institutions for the purpose of—
(A) identifying the accounts to which transfers described in paragraph (1) were made; and
(B) recovery of the amounts so transferred; and
(3) the refund to be delivered to the correct account of the taxpayer.
(Aug. 6, 1954, ch. 736,
Editorial Notes
References in Text
The Social Security Act, referred to in subsecs. (c), (d)(3)(D), and (g), is act Aug. 14, 1935, ch. 531,
The date of the enactment of the Taxpayer First Act, referred to in subsec. (n), is the date of enactment of
Amendments
2025—Subsec. (c).
2019—Subsec. (n).
2018—Subsec. (a).
Subsec. (c).
Subsec. (d)(2).
2015—Subsec. (m).
2010—Subsec. (f).
Subsec. (f)(3).
Subsec. (f)(3)(A).
Subsec. (f)(3)(B).
Subsec. (f)(3)(C).
Subsec. (f)(4).
Subsec. (f)(4)(A).
Subsec. (f)(4)(B).
Subsec. (f)(5) to (8).
2008—Subsec. (a).
Subsec. (d)(2).
Subsec. (e)(3).
Subsec. (f).
Subsec. (g).
Subsec. (h).
Subsec. (i).
Subsecs. (j) to (l).
2006—Subsec. (c).
1998—Subsec. (a).
Subsec. (d)(2).
Subsec. (e).
Subsec. (f).
Subsec. (g).
Subsec. (h).
Subsec. (i).
Subsec. (j).
Subsec. (k).
1997—Subsecs. (a), (e) to (j).
1996—Subsec. (a).
Subsec. (e).
Subsec. (f).
Subsecs. (g) to (j).
1994—Subsecs. (d)(3)(C), (e).
1990—Subsec. (d)(1).
Subsec. (d)(3).
Subsec. (e).
1988—Subsec. (i).
1984—Subsec. (a).
Subsec. (c).
Subsecs. (d) to (f).
Subsec. (g).
Subsec. (h).
1981—Subsec. (a).
Subsec. (c).
1976—
Statutory Notes and Related Subsidiaries
Effective Date of 2015 Amendment
Amendment by
Effective Date of 2010 Amendment
Effective Date of 2008 Amendment
Amendment by
Effective Date of 2006 Amendment
Amendment by
Effective Date of 1998 Amendment
Amendment by section 3711 of
Effective Date of 1997 Amendment
Amendment by
Effective Date of 1996 Amendment
Amendment by
Effective Date of 1994 Amendment
Amendment by
Effective Date of 1990 Amendment
"(1) shall take effect January 1, 1991, and
"(2) shall not apply to refunds to which the amendments made by section 2653 of the Deficit Reduction Act of 1984 (
Effective Date of 1984 Amendments
Amendment by
[
Effective Date of 1981 Amendment
Amendment by
Organ and Tissue Donation Information Included With Income Tax Refund Payments
"(a)
"(b)
"(1) encourages organ and tissue donation;
"(2) includes a detachable organ and tissue donor card; and
"(3) urges recipients to—
"(A) sign the organ and tissue donor card;
"(B) discuss organ and tissue donation with family members and tell family members about the recipient's desire to be an organ and tissue donor if the occasion arises; and
"(C) encourage family members to request or authorize organ and tissue donation if the occasion arises."
Clarification of Congressional Intent as to Scope of Amendments by Section 2653 of Pub. L. 98–369
"(1) Nothing in the amendments made by section 2653 of the Deficit Reduction Act of 1984 [enacting
"(2) It is the intent of the Congress that, to the extent practicable, the amendments made by section 2653 of the Deficit Reduction Act of 1984 shall extend to all Federal agencies (as defined in the amendments made by such section).
"(3) The Secretary of the Treasury shall issue regulations to carry out the purposes of this subsection."
Study by General Accounting Office of Operation and Effectiveness of Amendments by Section 2653 of Pub. L. 98–369
§6403. Overpayment of installment
In the case of a tax payable in installments, if the taxpayer has paid as an installment of the tax more than the amount determined to be the correct amount of such installment, the overpayment shall be credited against the unpaid installments, if any. If the amount already paid, whether or not on the basis of installments, exceeds the amount determined to be the correct amount of the tax, the overpayment shall be credited or refunded as provided in section 6402.
(Aug. 16, 1954, ch. 736,
§6404. Abatements
(a) General rule
The Secretary is authorized to abate the unpaid portion of the assessment of any tax or any liability in respect thereof, which—
(1) is excessive in amount, or
(2) is assessed after the expiration of the period of limitation properly applicable thereto, or
(3) is erroneously or illegally assessed.
(b) No claim for abatement of income, estate, and gift taxes
No claim for abatement shall be filed by a taxpayer in respect of an assessment of any tax imposed under subtitle A or B.
(c) Small tax balances
The Secretary is authorized to abate the unpaid portion of the assessment of any tax, or any liability in respect thereof, if the Secretary determines under uniform rules prescribed by the Secretary that the administration and collection costs involved would not warrant collection of the amount due.
(d) Assessments attributable to certain mathematical errors by Internal Revenue Service
In the case of an assessment of any tax imposed by
(e) Abatement of interest attributable to unreasonable errors and delays by Internal Revenue Service
(1) In general
In the case of any assessment of interest on—
(A) any deficiency attributable in whole or in part to any unreasonable error or delay by an officer or employee of the Internal Revenue Service (acting in his official capacity) in performing a ministerial or managerial act, or
(B) any payment of any tax described in section 6212(a) to the extent that any unreasonable error or delay in such payment is attributable to such an officer or employee being erroneous or dilatory in performing a ministerial or managerial act,
the Secretary may abate the assessment of all or any part of such interest for any period. For purposes of the preceding sentence, an error or delay shall be taken into account only if no significant aspect of such error or delay can be attributed to the taxpayer involved, and after the Internal Revenue Service has contacted the taxpayer in writing with respect to such deficiency or payment.
(2) Interest abated with respect to erroneous refund check
The Secretary shall abate the assessment of all interest on any erroneous refund under section 6602 until the date demand for repayment is made, unless—
(A) the taxpayer (or a related party) has in any way caused such erroneous refund, or
(B) such erroneous refund exceeds $50,000.
(f) Abatement of any penalty or addition to tax attributable to erroneous written advice by the Internal Revenue Service
(1) In general
The Secretary shall abate any portion of any penalty or addition to tax attributable to erroneous advice furnished to the taxpayer in writing by an officer or employee of the Internal Revenue Service, acting in such officer's or employee's official capacity.
(2) Limitations
Paragraph (1) shall apply only if—
(A) the written advice was reasonably relied upon by the taxpayer and was in response to a specific written request of the taxpayer, and
(B) the portion of the penalty or addition to tax did not result from a failure by the taxpayer to provide adequate or accurate information.
(g) Suspension of interest and certain penalties where Secretary fails to contact taxpayer
(1) Suspension
(A) In general
In the case of an individual who files a return of tax imposed by subtitle A for a taxable year on or before the due date for the return (including extensions), if the Secretary does not provide a notice to the taxpayer specifically stating the taxpayer's liability and the basis for the liability before the close of the 36-month period beginning on the later of—
(i) the date on which the return is filed; or
(ii) the due date of the return without regard to extensions,
the Secretary shall suspend the imposition of any interest, penalty, addition to tax, or additional amount with respect to any failure relating to the return which is computed by reference to the period of time the failure continues to exist and which is properly allocable to the suspension period.
(B) Separate application
This paragraph shall be applied separately with respect to each item or adjustment.
If, after the return for a taxable year is filed, the taxpayer provides to the Secretary 1 or more signed written documents showing that the taxpayer owes an additional amount of tax for the taxable year, clause (i) shall be applied by substituting the date the last of the documents was provided for the date on which the return is filed.
(2) Exceptions
Paragraph (1) shall not apply to—
(A) any penalty imposed by section 6651;
(B) any interest, penalty, addition to tax, or additional amount in a case involving fraud;
(C) any interest, penalty, addition to tax, or additional amount with respect to any tax liability shown on the return;
(D) any interest, penalty, addition to tax, or additional amount with respect to any gross misstatement;
(E) any interest, penalty, addition to tax, or additional amount with respect to any reportable transaction with respect to which the requirement of section 6664(d)(3)(A) is not met and any listed transaction (as defined in 6707A(c)); or
(F) any criminal penalty.
(3) Suspension period
For purposes of this subsection, the term "suspension period" means the period—
(A) beginning on the day after the close of the 36-month period under paragraph (1); and
(B) ending on the date which is 21 days after the date on which notice described in paragraph (1)(A) is provided by the Secretary.
(h) Judicial review of request for abatement of interest
(1) In general
The Tax Court shall have jurisdiction over any action brought by a taxpayer who meets the requirements referred to in section 7430(c)(4)(A)(ii) to determine whether the Secretary's failure to abate interest under this section was an abuse of discretion, and may order an abatement, if such action is brought—
(A) at any time after the earlier of—
(i) the date of the mailing of the Secretary's final determination not to abate such interest, or
(ii) the date which is 180 days after the date of the filing with the Secretary (in such form as the Secretary may prescribe) of a claim for abatement under this section, and
(B) not later than the date which is 180 days after the date described in subparagraph (A)(i).
(2) Special rules
(A) Date of mailing
Rules similar to the rules of section 6213 shall apply for purposes of determining the date of the mailing referred to in paragraph (1).
(B) Relief
Rules similar to the rules of section 6512(b) shall apply for purposes of this subsection.
(C) Review
An order of the Tax Court under this subsection shall be reviewable in the same manner as a decision of the Tax Court, but only with respect to the matters determined in such order.
(i) Cross reference
For authority to suspend running of interest, etc. by reason of Presidentially declared disaster or terroristic or military action, see section 7508A.
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
2018—Subsec. (g)(2)(E).
2015—Subsec. (h).
Subsec. (h)(1).
2014—Subsec. (f)(3).
2007—Subsec. (g)(1)(A), (3)(A).
2005—Subsec. (g)(1).
2004—Subsec. (g)(1)(A).
Subsec. (g)(2)(D).
Subsec. (g)(2)(E).
Subsec. (g)(2)(F).
Subsec. (g)(3)(A).
2002—Subsecs. (h), (i).
1998—Subsec. (g).
Subsec. (h).
Subsec. (h)(2).
Subsec. (i).
1996—Subsec. (e).
Subsec. (e)(1)(A), (B).
Subsec. (g).
Subsec. (g)(1).
1988—Subsec. (e)(1)(B).
Subsec. (f).
1986—Subsec. (e).
1980—Subsec. (d).
1976—Subsecs. (a), (c).
Subsec. (d).
Statutory Notes and Related Subsidiaries
Effective Date of 2015 Amendment
Effective Date of 2014 Amendment
Amendment by
Effective Date of 2007 Amendment
Effective Date of 2005 Amendment
Effective Date of 2004 Amendment
"(1)
"(2)
"(A)
"(B)
"(i)
"(ii)
"(I) the taxpayer is participating in a settlement initiative described in Internal Revenue Service Announcement 2005–80 with respect to such transaction, or
"(II) the taxpayer has entered into a settlement agreement pursuant to such an initiative.
Subclause (I) shall not apply to any taxpayer if, after January 23, 2006, the taxpayer withdraws from, or terminates, participation in the initiative or the Secretary of the Treasury or the Secretary's delegate determines that a settlement agreement will not be reached pursuant to the initiative within a reasonable period of time.
"(iii)
"(iv)
"(I) the assessment of all Federal income taxes for the taxable year in which the tax liability to which the interest relates arose is prevented by the operation of any law or rule of law, or
"(II) a closing agreement under section 7121 has been entered into with respect to the tax liability arising in connection with the transaction."
[
[
Effective Date of 2002 Amendment
Amendment by
Effective Date of 1998 Amendments
Amendment by
"(b)
"(c)
"(1) For the purposes of section 252(e) of the Balanced Budget and Emergency Deficit Control Act [
"(2) The amendments made by subsections (a) and (b) of this section [amending this section] shall only take effect upon the transmittal by the President to the Congress of a message designating the provisions of subsections (a) and (b) as an emergency requirement pursuant to section 252(e) of the Balanced Budget and Emergency Deficit Control Act."
[For message of the President dated July 22, 1998, designating the provisions of section 3309(a), (b) of
Effective Date of 1996 Amendment
Effective Date of 1988 Amendment
Amendment by section 1015(n) of
Effective Date of 1986 Amendment
"(1)
"(2)
Effective Date of 1980 Amendment
Amendment by
Effective Date of 1976 Amendment
§6405. Reports of refunds and credits
(a) By Treasury to Joint Committee
No refund or credit of any income, war profits, excess profits, estate, or gift tax, or any tax imposed with respect to public charities, private foundations, operators' trust funds, pension plans, or real estate investment trusts under
(b) Tentative adjustments
Any credit or refund allowed or made under section 6411 shall be made without regard to the provisions of subsection (a) of this section. In any such case, if the credit or refund, reduced by any deficiency in such tax thereafter assessed and by deficiencies in any other tax resulting from adjustments reflected in the determination of the credit or refund, is in excess of $2,000,000 ($5,000,000 in the case of a C corporation), there shall be submitted to such committee a report containing the matter specified in subsection (a) at such time after the making of the credit or refund as the Secretary shall determine the correct amount of the tax.
(c) Refunds attributable to certain disaster losses
If any refund or credit of income taxes is attributable to the taxpayer's election under section 165(i) to deduct a disaster loss for the taxable year immediately preceding the taxable year in which the disaster occurred, the Secretary is authorized in his discretion to make the refund or credit, to the extent attributable to such election, without regard to the provisions of subsection (a) of this section. If such refund or credit is made without regard to subsection (a), there shall thereafter be submitted to such Joint Committee a report containing the matter specified in subsection (a) as soon as the Secretary shall determine the correct amount of the tax for the taxable year for which the refund or credit is made.
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
2014—Subsecs. (a), (b).
2000—Subsecs. (a), (b).
1990—Subsecs. (a), (b).
Subsec. (d).
1986—Subsecs. (b) to (e).
1984—Subsec. (d).
1978—Subsec. (a).
1976—Subsec. (a).
Subsec. (c).
Subsec. (d).
1972—Subsec. (d).
Subsec. (e).
Statutory Notes and Related Subsidiaries
Effective Date of 2014 Amendment
Effective Date of 2000 Amendment
Effective Date of 1990 Amendment
Effective Date of 1986 Amendment
Amendment by
Effective Date of 1984 Amendment
Amendment by
Effective Date of 1978 Amendment
Amendment by
Effective Date of 1976 Amendment
Effective Date of 1972 Amendment
Savings Provision
For provisions that nothing in amendment by section 11801(c)(21)(A) of
Plan Amendments Not Required Until January 1, 1989
For provisions directing that if any amendments made by subtitle A or subtitle C of title XI [§§1101–1147 and 1171–1177] or title XVIII [§§1800–1899A] of
§6406. Prohibition of administrative review of decisions
In the absence of fraud or mistake in mathematical calculation, the findings of fact in and the decision of the Secretary upon the merits of any claim presented under or authorized by the internal revenue laws and the allowance or non-allowance by the Secretary of interest on any credit or refund under the internal revenue laws shall not, except as provided in subchapters C and D of
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
1976—
§6407. Date of allowance of refund or credit
The date on which the Secretary first authorizes the scheduling of an overassessment in respect of any internal revenue tax shall be considered as the date of allowance of refund or credit in respect of such tax.
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
1976—
§6408. State escheat laws not to apply
No overpayment of any tax imposed by this title shall be refunded (and no interest with respect to any such overpayment shall be paid) if the amount of such refund (or interest) would escheat to a State or would otherwise become the property of a State under any law relating to the disposition of unclaimed or abandoned property. No refund (or payment of interest) shall be made to the estate of any decedent unless it is affirmatively shown that such amount will not escheat to a State or otherwise become the property of a State under such a law.
(Added
Statutory Notes and Related Subsidiaries
Effective Date
§6409. Refunds disregarded in the administration of Federal programs and federally assisted programs
Notwithstanding any other provision of law, any refund (or advance payment with respect to a refundable credit) made to any individual under this title shall not be taken into account as income, and shall not be taken into account as resources for a period of 12 months from receipt, for purposes of determining the eligibility of such individual (or any other individual) for benefits or assistance (or the amount or extent of benefits or assistance) under any Federal program or under any State or local program financed in whole or in part with Federal funds.
(Added
Editorial Notes
Amendments
2013—
Statutory Notes and Related Subsidiaries
Effective Date of 2013 Amendment
Amendment by
Effective Date
Subchapter B—Rules of Special Application
Editorial Notes
Amendments
2022—
2021—
2020—
2018—
2017—
2014—
2009—
2008—
2005—
2004—
2003—
2001—
1990—
1988—
1986—
1983—
1982—
1981—
1980—
1978—
1976—
1975—
1970—
1968—
1958—
1956—Act June 29, 1956, ch. 462, title II, §208(e)(4),
Act Apr. 2, 1956, ch. 160, §4(c),
§6411. Tentative carryback and refund adjustments
(a) Application for adjustment
A taxpayer may file an application for a tentative carryback adjustment of the tax for the prior taxable year affected by a net operating loss carryback provided in section 172(b), by a business credit carryback provided in section 39, or by a capital loss carryback provided in subsection (a)(1) or (c) of section 1212, from any taxable year. The application shall be verified in the manner prescribed by section 6065 in the case of a return of such taxpayer and shall be filed, on or after the date of filing for the return for the taxable year of the net operating loss, net capital loss, or unused business credit from which the carryback results and within a period of 12 months after such taxable year or, with respect to any portion of a business credit carryback attributable to a net operating loss carryback or a net capital loss carryback from a subsequent taxable year, in the manner and form required by regulations prescribed by the Secretary. The applications shall set forth in such detail and with such supporting data and explanation as such regulations shall require—
(1) The amount of the net operating loss, net capital loss, or unused business credit;
(2) The amount of the tax previously determined for the prior taxable year affected by such carryback, the tax previously determined being ascertained in accordance with the method prescribed in section 1314(a);
(3) The amount of decrease in such tax, attributable to such carryback, such decrease being determined by applying the carryback in the manner provided by law to the items on the basis of which such tax was determined;
(4) The unpaid amount of such tax, not including any amount required to be shown under paragraph (5);
(5) The amount, with respect to the tax for the taxable year immediately preceding the taxable year from which the carryback is made, as to which an extension of time for payment under section 6164 is in effect; and
(6) Such other information for purposes of carrying out the provisions of this section as may be required by such regulations.
Except for purposes of applying section 6611(f)(4)(B), an application under this subsection shall not constitute a claim for credit or refund.
(b) Allowance of adjustments
Within a period of 90 days from the date on which an application for a tentative carryback adjustment is filed under subsection (a), or from the last day of the month in which falls the last date prescribed by law (including any extension of time granted the taxpayer) for filing the return for the taxable year of the net operating loss, net capital loss, or unused business credit from which such carryback results, whichever is the later, the Secretary shall make, to the extent he deems practicable in such period, a limited examination of the application, to discover omissions and errors of computation therein, and shall determine the amount of the decrease in the tax attributable to such carryback upon the basis of the application and the examination, except that the Secretary may disallow, without further action, any application which he finds contains errors of computation which he deems cannot be corrected by him within such 90-day period or material omissions. Such decrease shall be applied against any unpaid amount of the tax decreased (including any amount of such tax as to which an extension of time under section 6164 is in effect) and any remainder shall be credited against any unsatisfied amount of any tax for the taxable year immediately preceding the taxable year of the net operating loss, net capital loss, or unused business credit the time for payment of which tax is extended under section 6164. Any remainder shall, within such 90-day period, be either credited against any tax or installment thereof then due from the taxpayer, or refunded to the taxpayer.
(c) Consolidated returns
If the corporation seeking a tentative carryback adjustment under this section, made or was required to make a consolidated return, either for the taxable year within which the net operating loss, net capital loss, or unused business credit arises, or for the preceding taxable year affected by such loss or credit, the provisions of this section shall apply only to such extent and subject to such conditions, limitations, and exceptions as the Secretary may by regulations prescribe.
(d) Tentative refund of tax under claim of right adjustment
(1) Application
A taxpayer may file an application for a tentative refund of any amount treated as an overpayment of tax for the taxable year under section 1341(b)(1). Such application shall be in such manner and form as the Secretary may prescribe by regulation and shall—
(A) be verified in the same manner as an application under subsection (a),
(B) be filed during the period beginning on the date of filing the return for such taxable year and ending on the date 12 months from the last day of such taxable year, and
(C) set forth in such detail and with such supporting data such regulations prescribe—
(i) the amount of the tax for such taxable year computed without regard to the deduction described in section 1341(a)(2),
(ii) the amount of the tax for all prior taxable years for which the decrease in tax provided in section 1341(a)(5)(B) was computed,
(iii) the amount determined under section 1341(a)(5)(B),
(iv) the amount of the overpayment determined under section 1341(b)(1); and
(v) such other information as the Secretary may require.
(2) Allowance of adjustments
Within a period of 90 days from the date on which an application is filed under paragraph (1) or from the date of the overpayment (determined under section 1341(b)(1)), whichever is later, the Secretary shall—
(A) review the application,
(B) determine the amount of the overpayment, and
(C) apply, credit, or refund such overpayment,
in a manner similar to the manner provided in subsection (b).
(3) Consolidated returns
The provisions of subsection (c) shall apply to an adjustment under this subsection to the same extent and manner as the Secretary may by regulations provide.
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
2005—Subsec. (a).
2000—Subsec. (a).
1988—Subsec. (c).
1986—Subsec. (a).
Subsec. (b).
1984—Subsec. (a).
Subsec. (a)(1).
Subsecs. (b), (c).
1981—Subsec. (a).
Subsec. (b).
Subsec. (c).
1980—Subsec. (a).
Subsec. (d)(2).
1978—
Subsec. (d).
1977—Subsec. (a).
Subsecs. (b), (c).
1976—Subsec. (a).
Subsecs. (b), (c).
1971—
Subsec. (a).
1969—Subsec. (a).
Subsec. (b).
Subsec. (c).
1967—Subsec. (a).
1966—Subsec. (a).
Subsec. (b).
Subsec. (c).
Statutory Notes and Related Subsidiaries
Effective Date of 2005 Amendment
Amendment by
Effective Date of 2000 Amendment
Effective Date of 1988 Amendment
Amendment by
Effective Date of 1986 Amendment
Amendment by section 231(d)(3)(H) of
Amendment by section 1847(b)(10) of
Effective Date of 1984 Amendment
Amendment by section 474(r)(37) of
Amendment by section 714(n)(2)(B) of
Notwithstanding section 715 of
Effective Date of 1981 Amendment
Amendment by section 221(b)(2)(B) of
Amendment by section 331(d)(2)(B) of
Effective Date of 1980 Amendment
Amendment by
Effective Date of 1978 Amendment
Effective Date of 1977 Amendment
Amendment by
Effective Date of 1971 Amendment
Amendment by
Effective Date of 1969 Amendment
Amendment by
Effective Date of 1967 Amendment
Amendment by
Effective Date of 1966 Amendment
Plan Amendments Not Required Until January 1, 1989
For provisions directing that if any amendments made by subtitle A or subtitle C of title XI [§§1101–1147 and 1171–1177] or title XVIII [§§1800–1899A] of
§6412. Floor stocks refunds
(a) In general
(1) Tires and taxable fuel
Where before October 1, 2028, any article subject to the tax imposed by section 4071 or 4081 has been sold by the manufacturer, producer, or importer and on such date is held by a dealer and has not been used and is intended for sale, there shall be credited or refunded (without interest) to the manufacturer, producer, or importer an amount equal to the difference between the tax paid by such manufacturer, producer, or importer on his sale of the article and the amount of tax made applicable to such article on and after October 1, 2028, if claim for such credit or refund is filed with the Secretary on or before March 31, 2029, based upon a request submitted to the manufacturer, producer, or importer before January 1, 2029, by the dealer who held the article in respect of which the credit or refund is claimed, and, on or before March 31, 2029, reimbursement has been made to such dealer by such manufacturer, producer, or importer for the tax reduction on such article or written consent has been obtained from such dealer to allowance of such credit or refund. No credit or refund shall be allowable under this paragraph with respect to taxable fuel in retail stocks held at the place where intended to be sold at retail, nor with respect to taxable fuel held for sale by a producer or importer of taxable fuel.
(2) Definitions
For purposes of this section—
(A) The term "dealer" includes a wholesaler, jobber, distributor, or retailer.
(B) An article shall be considered as "held by a dealer" if title thereto has passed to such dealer (whether or not delivery to him has been made), and if for purposes of consumption title to such article or possession thereof has not at any time been transferred to any person other than a dealer.
(b) Limitation on eligibility for credit or refund
No manufacturer, producer, or importer shall be entitled to credit or refund under subsection (a) unless he has in his possession such evidence of the inventories with respect to which the credit or refund is claimed as may be required by regulations prescribed under this section.
(c) Other laws applicable
All provisions of law, including penalties, applicable in respect of the taxes imposed by sections 4071 and 4081 shall, insofar as applicable and not inconsistent with subsections (a) and (b) of this section, apply in respect of the credits and refunds provided for in subsection (a) to the same extent as if such credits or refunds constituted overpayments of such taxes.
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
2021—Subsec. (a)(1).
2015—Subsec. (a)(1).
2012—Subsec. (a)(1).
2011—Subsec. (a)(1).
2005—Subsec. (a)(1).
1998—Subsec. (a)(1).
1993—Subsec. (a)(1).
1991—Subsec. (a)(1).
1990—Subsec. (a)(1).
1987—Subsec. (a)(1).
1984—Subsec. (a)(1).
Subsec. (a)(2)(A).
Subsec. (c).
1983—Subsec. (a)(1).
1978—Subsec. (a)(1).
1976—Subsec. (a)(1).
Subsec. (a)(2).
Subsec. (a)(4).
1971—Subsec. (a)(1).
1970—Subsec. (a)(1).
Subsec. (a)(2).
1969—Subsec. (a)(1).
1968—Subsec. (a)(1).
1966—Subsec. (a)(1).
1965—Subsec. (a)(1).
Subsec. (e).
1964—Subsec. (a)(1).
1963—Subsec. (a)(1).
1962—Subsec. (a)(1).
Subsec. (d).
1961—Subsec. (a)(1).
Subsec. (a)(2).
Subsec. (a)(3).
Subsec. (d).
1960—Subsec. (a)(1).
Subsec. (d).
1959—Subsec. (a)(1).
Subsec. (a)(3), (4).
1958—Subsec. (a)(1).
Subsec. (d).
1957—Subsec. (a)(1).
1956—Subsec. (a). Act June 29, 1956, in par. (1), substituted "April 1, 1957" for "April 1, 1956" in two places, "section 4061(a)(2)" for "section 4061 (a) or (b)", and inserted provisions requiring claims for refund to be made on or before August 10, 1957, inserted provisions relating to trucks and buses, tires, tread rubber, and gasoline as par. (2), defined "dealer" in the case of tread rubber subject to tax under
Act Mar. 29, 1956, substituted "April 1, 1957" for "April 1, 1956" in two places, and "July 1, 1957" for "July 1, 1956".
Subsec. (b). Act June 29, 1956, redesignated par. (5) of subsec. (a) as subsec. (b) and substituted "manufacturer, producer, or importer" for "person", and struck out provisions that required claims for credit or refund to be filed before July 1, 1956. Former subsec. (b) was covered by par. (2) of subsec. (a).
Act Mar. 29, 1956, substituted "April 1, 1957" for "April 1, 1956" in three places, and "July 1, 1957" for "July 1, 1956".
Subsec. (c). Act June 29, 1956, included taxes imposed by
Subsec. (d). Act May 29, 1956, substituted "1961" for "1957".
1955—Subsecs. (a), (b). Act Mar. 30, 1955, substituted "April 1, 1956" for "April 1, 1955" and "July 1, 1956" for "July 1, 1955" wherever appearing.
Statutory Notes and Related Subsidiaries
Effective Date of 2021 Amendment
Amendment by
Effective Date of 2015 Amendment
Amendment by
Effective and Termination Dates of 2012 Amendment
Amendment by
Amendment by
Amendment by
Amendment by
Effective Date of 2011 Amendment
Amendment by
Effective Date of 1993 Amendment
Amendment by
Effective Date of 1984 Amendment
Amendment by
Effective Date of 1978 Amendment
Amendment by
Effective Date of 1971 Amendment
Amendment by
Effective Date of 1968 Amendments
Effective Date of 1965 Amendment
Amendment by
Effective Date of 1962 Amendments
Amendment by
Amendment by
Effective Date of 1961 Amendment
Amendment by
Effective Date of 1958 Amendment
Amendment by
Effective Date of 1956 Amendments
Amendment by act June 29, 1956, effective June 29, 1956, see section 211 of act June 29, 1956, set out as a note under
Amendment by act May 29, 1956, effective as of Jan. 1, 1956, see section 22 of act May 29, 1956, ch. 342,
Floor Stock Refunds
Extension of Time for Filing Claims for Floor Stocks Refunds
Refunds Respecting Consumer Purchases
§6413. Special rules applicable to certain employment taxes
(a) Adjustment of tax
(1) General rule
If more than the correct amount of tax imposed by section 3101, 3111, 3201, 3221, or 3402 is paid with respect to any payment of remuneration, proper adjustments, with respect to both the tax and the amount to be deducted, shall be made, without interest, in such manner and at such times as the Secretary may by regulations prescribe.
(2) United States as employer
For purposes of this subsection, in the case of remuneration received from the United States or a wholly-owned instrumentality thereof during any calendar year, each head of a Federal agency or instrumentality who makes a return pursuant to section 3122 and each agent, designated by the head of a Federal agency or instrumentality, who makes a return pursuant to such section shall be deemed a separate employer.
(3) Guam or American Samoa as employer
For purposes of this subsection, in the case of remuneration received during any calendar year from the Government of Guam, the Government of American Samoa, a political subdivision of either, or any instrumentality of any one or more of the foregoing which is wholly owned thereby, the Governor of Guam, the Governor of American Samoa, and each agent designated by either who makes a return pursuant to section 3125 shall be deemed a separate employer.
(4) District of Columbia as employer
For purposes of this subsection, in the case of remuneration received during any calendar year from the District of Columbia or any instrumentality which is wholly owned thereby, the Mayor of the District of Columbia and each agent designated by him who makes a return pursuant to section 3125 shall be deemed a separate employer.
(5) States and political subdivisions as employer
For purposes of this subsection, in the case of remuneration received from a State or any political subdivision thereof (or any instrumentality of any one or more of the foregoing which is wholly owned thereby) during any calendar year, each head of an agency or instrumentality, and each agent designated by either, who makes a return pursuant to section 3125 shall be deemed a separate employer.
(b) Overpayments of certain employment taxes
If more than the correct amount of tax imposed by section 3101, 3111, 3201, 3221, or 3402 is paid or deducted with respect to any payment of remuneration and the overpayment cannot be adjusted under subsection (a) of this section, the amount of the overpayment shall be refunded in such manner and at such times (subject to the statute of limitations properly applicable thereto) as the Secretary may by regulations prescribe.
(c) Special refunds
(1) In general
If by reason of an employee receiving wages from more than one employer during a calendar year the wages received by him during such year exceed the contribution and benefit base (as determined under section 230 of the Social Security Act) which is effective with respect to such year, the employee shall be entitled (subject to the provisions of section 31(b)) to a credit or refund of any amount of tax, with respect to such wages, imposed by section 3101(a) or section 3201(a) (to the extent of so much of the rate applicable under section 3201(a) as does not exceed the rate of tax in effect under section 3101(a)), or by both such sections, and deducted from the employee's wages (whether or not paid to the Secretary), which exceeds the tax with respect to the amount of such wages received in such year which is equal to such contribution and benefit base. The term "wages" as used in this paragraph shall, for purposes of this paragraph, include "compensation" as defined in section 3231(e).
(2) Applicability in case of Federal and State employees, employees of certain foreign affiliates, and governmental employees in Guam, American Samoa, and the District of Columbia
(A) Federal employees
In the case of remuneration received from the United States or a wholly-owned instrumentality thereof during any calendar year, each head of a Federal agency or instrumentality who makes a return pursuant to section 3122 and each agent, designated by the head of a Federal agency or instrumentality, who makes a return pursuant to such section shall, for purposes of this subsection, be deemed a separate employer; and the term "wages" includes for purposes of this subsection the amount, not to exceed an amount equal to the contribution and benefit base (as determined under section 230 of the Social Security Act) for any calendar year with respect to which such contribution and benefit base is effective, determined by each such head or agent as constituting wages paid to an employee.
(B) State employees
For purposes of this subsection, in the case of remuneration received during any calendar year, the term "wages" includes such remuneration for services covered by an agreement made pursuant to section 218 of the Social Security Act as would be wages if such services constituted employment; the term "employer" includes a State or any political subdivision thereof, or any instrumentality of any one or more of the foregoing; the term "tax" or "tax imposed by section 3101(a)" includes, in the case of services covered by an agreement made pursuant to section 218 of the Social Security Act, an amount equivalent to the tax which would be imposed by section 3101(a), if such services constituted employment as defined in section 3121; and the provisions of this subsection shall apply whether or not any amount deducted from the employee's remuneration as a result of an agreement made pursuant to section 218 of the Social Security Act has been paid to the Secretary.
(C) Employees of certain foreign affiliates
For purposes of paragraph (1) of this subsection, the term "wages" includes such remuneration for services covered by an agreement made pursuant to section 3121(l) as would be wages if such services constituted employment; the term "employer" includes any American employer which has entered into an agreement pursuant to section 3121(l); the term "tax" or "tax imposed by section 3101(a)," includes, in the case of services covered by an agreement entered into pursuant to section 3121(l), an amount equivalent to the tax which would be imposed by section 3101(a), if such services constituted employment as defined in section 3121; and the provisions of paragraph (1) of this subsection shall apply whether or not any amount deducted from the employee's remuneration as a result of the agreement entered into pursuant to section 3121(l) has been paid to the Secretary.
(D) Governmental employees in Guam
In the case of remuneration received from the Government of Guam or any political subdivision thereof or from any instrumentality of any one or more of the foregoing which is wholly owned thereby, during any calendar year, the Governor of Guam and each agent designated by him who makes a return pursuant to section 3125(b) shall, for purposes of this subsection, be deemed a separate employer.
(E) Governmental employees in American Samoa
In the case of remuneration received from the Government of American Samoa or any political subdivision thereof or from any instrumentality of any one or more of the foregoing which is wholly owned thereby, during any calendar year, the Governor of American Samoa and each agent designated by him who makes a return pursuant to section 3125(c) shall, for purposes of this subsection, be deemed a separate employer.
(F) Governmental employees in the District of Columbia
In the case of remuneration received from the District of Columbia or any instrumentality wholly owned thereby, during any calendar year, the Mayor of the District of Columbia and each agent designated by him who makes a return pursuant to section 3125(d) shall, for purposes of this subsection, be deemed a separate employer.
(G) Employees of States and political subdivisions
In the case of remuneration received from a State or any political subdivision thereof (or any instrumentality of any one or more of the foregoing which is wholly owned thereby) during any calendar year, each head of an agency or instrumentality, and each agent designated by either, who makes a return pursuant to section 3125(a) shall, for purposes of this subsection, be deemed a separate employer.
(d) Refund or credit of Federal unemployment tax
Any credit allowable under section 3302, to the extent not previously allowed, shall be considered an overpayment, but no interest shall be allowed or paid with respect to such overpayment.
(Aug. 16, 1954, ch. 736,
Editorial Notes
References in Text
Section 230 of the Social Security Act, referred to in subsec. (c)(1), (2)(A), is classified to
Section 218 of the Social Security Act, referred to in subsec. (c)(2)(B), is classified to
Amendments
1993—Subsec. (c)(1).
Subsec. (c)(2)(B), (C).
Subsec. (c)(3).
"(A) the tax imposed by section 3101(b) (or any amount equivalent to such tax), and
"(B) so much of the tax imposed by section 3201 as is determined at a rate not greater than the rate in effect under section 3101(b),
the applicable contribution base determined under section 3121(x)(2) for any calendar year shall be substituted for 'contribution and benefit base (as determined under section 230 of the Social Security Act)' each place it appears."
1990—Subsec. (c)(3).
1986—Subsec. (a)(5).
Subsec. (c)(2)(D) to (F).
Subsec. (c)(2)(G).
1983—
Subsec. (c)(2).
Subsec. (c)(2)(C).
1982—Catchline and subsecs. (a)(1), (b), (c)(1).
1976—Subsec. (a)(1).
Subsec. (a)(4).
Subsec. (b).
Subsec. (c)(1).
| Amount | After Calendar Year | Prior to Calendar Year |
|---|---|---|
| $3,600 | 1950 | 1955 |
| $4,200 | 1954 | 1959 |
| $4,800 | 1958 | 1966 |
| $6,600 | 1965 | 1968 |
| $7,800 | 1967 | 1972 |
| $9,000 | 1971 | 1973 |
| $10,800 | 1972 | 1974 |
| $13,200 | 1973 | 1975 |
and amount equal to the contribution and benefit base determined under section 230 of the Social Security Act and effective with respect to calendar year after calendar year 1974, and thereafter.
Subsec. (c)(2)(A).
Subsec. (c)(2)(C).
Subsec. (c)(2)(F).
Subsec. (c)(3).
1974—Subsec. (c)(1).
1973—Subsec. (c)(1).
Subsec. (c)(2)(A).
1972—Subsec. (c)(1).
Subsec. (c)(2)(A).
1971—Subsec. (c)(1).
Subsec. (c)(2)(A).
1968—Subsec. (c)(1).
Subsec. (c)(2)(A).
Subsec. (c)(3).
1965—Subsec. (a)(4).
Subsec. (c)(1).
Subsec. (c)(2)(A).
Subsec. (c)(2)(F).
1960—Subsec. (a)(3).
Subsec. (c)(2).
1958—Subsec. (c)(1).
Subsec. (c)(2)(A).
1954—Subsec. (c)(1). Act Sept. 1, 1954, §202(a)(1), conformed the special-refund provisions to the increase made by said act Sept. 1, 1954, in the limitation on wages from $3,600 to $4,200 for calendar years after 1954.
Subsec. (c)(2). Act Sept. 1, 1954, §202(b)(1), inserted "and employees of certain foreign corporations" in heading.
Subsec. (c)(2)(A). Act Sept. 1, 1954, §202(b)(2), substituted "$3,600 for the calendar year 1951, 1952, 1953, or 1954, or $4,200 for any calendar year after 1954" for '$3,600".
Subsec. (c)(2)(C). Act Sept. 1, 1954, §202(b)(3), added subpar. (C).
Statutory Notes and Related Subsidiaries
Effective Date of 1993 Amendment
Amendment by
Effective Date of 1990 Amendment
Amendment by
Effective Date of 1986 Amendment
Amendment by
Effective Date of 1983 Amendment
Amendment by
Effective Date of 1976 Amendment
Amendment by section 1906(a)(23)(A), (C), (D), (b)(13)(A) of
Effective Date of 1974 Amendment
Amendment by
Effective Date of 1973 Amendments
Amendment by
Amendment by
Effective Date of 1972 Amendment
Amendment by
Effective Date of 1971 Amendment
Amendment by
Effective Date of 1968 Amendment
Amendment by section 108(b)(5), (6) of
Effective Date of 1965 Amendment
Amendment by section 317(e), (f) of
Amendment by section 320(b)(5), (6) of
Effective Date of 1960 Amendment
Amendment by
Effective Date of 1954 Amendment
Amendment by act Sept. 1, 1954, applicable only with respect to remuneration paid after 1954, see section 202(d) of act Sept. 1, 1954, set out as a note under
§6414. Income tax withheld
In the case of an overpayment of tax imposed by
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
2010—
Statutory Notes and Related Subsidiaries
Effective Date of 2010 Amendment
Amendment by
§6415. Credits or refunds to persons who collected certain taxes
(a) Allowance of credits or refunds
Credit or refund of any overpayment of tax imposed by section 4251, 4261, or 4271 may be allowed to the person who collected the tax and paid it to the Secretary if such person establishes, under such regulations as the Secretary may prescribe, that he has repaid the amount of such tax to the person from whom he collected it, or obtains the consent of such person to the allowance of such credit or refund.
(b) Credit on returns
Any person entitled to a refund of tax imposed by section 4251, 4261, or 4271 paid, or collected and paid, to the Secretary by him may, instead of filing a claim for refund, take credit therefor against taxes imposed by such section due upon any subsequent return.
(c) Refund of overcollections
In case any person required under section 4251, 4261, or 4271 to collect any tax shall make an overcollection of such tax, such person shall, upon proper application, refund such overcollection to the person entitled thereto.
(d) Refund of taxable payment
Any person making a refund of any payment on which tax imposed by section 4251, 4261, or 4271 has been collected may repay therewith the amount of tax collected on such payment.
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
1976—Subsecs. (a), (b).
1970—
1965—Subsec. (a).
Subsecs. (b) to (d).
1958—Subsec. (a).
Subsecs. (a) to (d).
Statutory Notes and Related Subsidiaries
Effective Date of 1970 Amendment
Amendment by
Effective Date of 1965 Amendment
Amendment by
Effective Date of 1958 Amendments
"(1) Except as provided in paragraph (2), the repeals and amendments made by subsections (a) and (b) [repealing
"(2) In the case of transportation with respect to which the second sentence of section 4281 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] applies, the repeals and amendments made by subsections (a) and (b) [repealing
§6416. Certain taxes on sales and services
(a) Condition to allowance
(1) General rule
No credit or refund of any overpayment of tax imposed by
(A) has not included the tax in the price of the article with respect to which it was imposed and has not collected the amount of the tax from the person who purchased such article;
(B) has repaid the amount of the tax to the ultimate purchaser of the article;
(C) in the case of an overpayment under subsection (b)(2) of this section—
(i) has repaid or agreed to repay the amount of the tax to the ultimate vendor of the article, or
(ii) has obtained the written consent of such ultimate vendor to the allowance of the credit or the making of the refund; or
(D) has filed with the Secretary the written consent of the person referred to in subparagraph (B) to the allowance of the credit or the making of the refund.
(2) Exceptions
This subsection shall not apply to—
(A) the tax imposed by section 4041 (relating to tax on special fuels) on the use of any liquid, and
(B) an overpayment of tax under paragraph (1), (3)(A), (4), (5), or (6) of subsection (b) of this section.
(3) Special rule
For purposes of this subsection, in any case in which the Secretary determines that an article is not taxable, the term "ultimate purchaser" (when used in paragraph (1)(B) of this subsection) includes a wholesaler, jobber, distributor, or retailer who, on the 15th day after the date of such determination, holds such article for sale; but only if claim for credit or refund by reason of this paragraph is filed on or before the date for filing the return with respect to the taxes imposed under
(4) Registered ultimate vendor or credit card issuer to administer credits and refunds of gasoline tax
(A) In general
For purposes of this subsection, except as provided in subparagraph (B), if an ultimate vendor purchases any gasoline on which tax imposed by section 4081 has been paid and sells such gasoline to an ultimate purchaser described in subparagraph (C) or (D) of subsection (b)(2) (and such gasoline is for a use described in such subparagraph), such ultimate vendor shall be treated as the person (and the only person) who paid such tax, but only if such ultimate vendor is registered under section 4101.
(B) Credit card issuer
For purposes of this subsection, if the purchase of gasoline described in subparagraph (A) (determined without regard to the registration status of the ultimate vendor) is made by means of a credit card issued to the ultimate purchaser, paragraph (1) shall not apply and the person extending the credit to the ultimate purchaser shall be treated as the person (and the only person) who paid the tax, but only if such person—
(i) is registered under section 4101,
(ii) has established, under regulations prescribed by the Secretary, that such person—
(I) has not collected the amount of the tax from the person who purchased such article, or
(II) has obtained the written consent from the ultimate purchaser to the allowance of the credit or refund, and
(iii) has so established that such person—
(I) has repaid or agreed to repay the amount of the tax to the ultimate vendor,
(II) has obtained the written consent of the ultimate vendor to the allowance of the credit or refund, or
(III) has otherwise made arrangements which directly or indirectly provides the ultimate vendor with reimbursement of such tax.
If clause (i), (ii), or (iii) is not met by such person extending the credit to the ultimate purchaser, then such person shall collect an amount equal to the tax from the ultimate purchaser and only such ultimate purchaser may claim such credit or payment.
(C) Timing of claims
The procedure and timing of any claim under subparagraph (A) or (B) shall be the same as for claims under section 6427(i)(4), except that the rules of section 6427(i)(3)(B) regarding electronic claims shall not apply unless the ultimate vendor or credit card issuer has certified to the Secretary for the most recent quarter of the taxable year that all ultimate purchasers of the vendor or credit card issuer are certified and entitled to a refund under subparagraph (C) or (D) of subsection (b)(2).
(b) Special cases in which tax payments considered overpayments
Under regulations prescribed by the Secretary, credit or refund (without interest) shall be allowed or made in respect of the overpayments determined under the following paragraphs:
(1) Price readjustments
(A) In general
Except as provided in subparagraph (B) or (C), if the price of any article in respect of which a tax, based on such price, is imposed by
(B) Further manufacture
Subparagraph (A) shall not apply in the case of an article in respect of which tax was computed under section 4223(b)(2); but if the price for which such article was sold is readjusted by reason of the return or repossession of the article, the part of the tax proportionate to the part of such price repaid or credited to the purchaser shall be deemed to be an overpayment.
(C) Adjustment of tire price
No credit or refund of any tax imposed by subsection (a) or (b) of section 4071 shall be allowed or made by reason of an adjustment of a tire pursuant to a warranty or guarantee.
(2) Specified uses and resales
The tax paid under
(A) exported;
(B) used or sold for use as supplies for vessels or aircraft;
(C) sold to a State or local government for the exclusive use of a State or local government;
(D) sold to a nonprofit educational organization for its exclusive use;
(E) sold to a qualified blood collector organization (as defined in section 7701(a)(49)) for such organization's exclusive use in the collection, storage, or transportation of blood;
(F) in the case of any tire taxable under section 4071(a), sold to any person for use as described in section 4221(e)(3); or
(G) in the case of gasoline, used or sold for use in the production of special fuels referred to in section 4041.
Subparagraphs (C), (D), and (E) shall not apply in the case of any tax paid under section 4064. In the case of the tax imposed by section 4131, subparagraphs (B), (C), (D), and (E) shall not apply and subparagraph (A) shall apply only if the use of the exported vaccine meets such requirements as the Secretary may by regulations prescribe. This paragraph shall not apply in the case of any tax imposed under section 4041(a)(1) or 4081 on diesel fuel or kerosene and any tax paid under section 4121. Subparagraphs (C) and (D) shall not apply in the case of any tax imposed on gasoline under section 4081 if the requirements of subsection (a)(4) are not met. In the case of taxes imposed by subchapter C or D of
(3) Tax-paid articles used for further manufacture, etc.
If the tax imposed by
(A) in the case of any article other than any fuel taxable under section 4081, such article is used by the subsequent manufacturer or producer as material in the manufacture or production of, or as a component part of—
(i) another article taxable under
(ii) an automobile bus chassis or an automobile bus body,
manufactured or produced by him; or
(B) in the case of any fuel taxable under section 4081, such fuel is used by the subsequent manufacturer or producer, for nonfuel purposes, as a material in the manufacture or production of any other article manufactured or produced by him.
(4) Tires
If—
(A) the tax imposed by section 4071 has been paid with respect to the sale of any tire by the manufacturer, producer, or importer thereof, and
(B) such tire is sold by any person on or in connection with, or with the sale of, any other article, such tax shall be deemed to be an overpayment by such person if such other article is—
(i) an automobile bus chassis or an automobile bus body,
(ii) by such person exported, sold to a State or local government for the exclusive use of a State or local government, sold to a nonprofit educational organization for its exclusive use, or used or sold for use as supplies for vessels or aircraft, or
(iii) sold to a qualified blood collector organization for its exclusive use in connection with a vehicle the organization certifies will be primarily used in the collection, storage, or transportation of blood.
(5) Return of certain installment accounts
If—
(A) tax was paid under section 4216(d)(1) in respect of any installment account,
(B) such account is, under the agreement under which the account was sold, returned to the person who sold such account, and
(C) the consideration is readjusted as provided in such agreement,
the part of the tax paid under section 4216(d)(1) allocable to the part of the consideration repaid or credited to the purchaser of such account shall be deemed to be an overpayment.
(6) Truck chassis, bodies, and semitrailers used for further manufacture
If—
(A) the tax imposed by section 4051 has been paid with respect to the sale of any article, and
(B) before any other use, such article is by any person used as a component part of another article taxable under section 4051 manufactured or produced by him,
such tax shall be deemed to be an overpayment by such person. For purposes of the preceding sentence, an article shall be treated as having been used as a component part of another article if, had it not been broken or rendered useless in the manufacture or production of such other article, it would have been so used.
This subsection shall apply in respect of an article only if the exportation or use referred to in the applicable provision of this subsection occurs before any other use, or, in the case of a sale or resale, the use referred to in the applicable provision of this subsection is to occur before any other use.
(c) Refund to exporter or shipper
Under regulations prescribed by the Secretary the amount of any tax imposed by
(d) Credit on returns
Any person entitled to a refund of tax imposed by
(e) Accounting procedures for like articles
Under regulations prescribed by the Secretary, if any person uses or resells like articles, then for purposes of this section the manufacturer, producer, or importer of any such article may be identified, and the amount of tax paid under
(1) on a first-in-first-out basis,
(2) on a last-in-first-out basis, or
(3) in accordance with any other consistent method approved by the Secretary.
(f) Meaning of terms
For purposes of this section, any term used in this section has the same meaning as when used in
(Aug. 16, 1954, ch. 736,
Editorial Notes
Codification
Section 1207(e) of
Amendments
2019—Subsec. (b)(2).
2010—Subsec. (b)(2).
2007—Subsec. (a)(4)(C).
2006—Subsec. (b)(2).
Subsec. (b)(2)(E) to (G).
Subsec. (b)(4)(B)(iii).
2005—Subsec. (a)(4).
Subsec. (a)(4)(A).
Subsec. (a)(4)(B).
Subsec. (a)(4)(C).
Subsec. (b)(2).
2004—Subsec. (a)(4).
Subsec. (b)(2).
Subsec. (b)(3).
Subsec. (d).
1998—Subsec. (b)(5).
1997—Subsec. (a)(4)(B).
Subsec. (b)(2).
Subsec. (d).
1996—Subsec. (b)(1)(A).
1993—Subsec. (a)(4)(A).
Subsec. (a)(4)(B).
Subsec. (b)(2).
Subsec. (b)(3)(A).
Subsec. (b)(3)(B).
1990—Subsec. (d).
1988—Subsec. (a)(4).
Subsec. (b)(2).
1987—Subsec. (b)(2).
Subsec. (b)(3)(A).
Subsec. (b)(3)(B).
1986—Subsec. (b)(2).
1984—Subsec. (a)(1)(C).
Subsec. (a)(2)(B).
Subsec. (a)(3).
Subsec. (b)(1)(A).
Subsec. (b)(1)(C).
Subsec. (b)(2).
Subsec. (b)(2)(A).
Subsec. (b)(2)(E).
Subsec. (b)(2)(F).
Subsec. (b)(2)(G) to (M).
Subsec. (b)(3).
Subsec. (b)(3)(A).
Subsec. (b)(3)(B).
Subsec. (b)(3)(C).
Subsec. (b)(3)(D) to (F).
Subsec. (b)(4)(A).
Subsec. (b)(6).
Subsec. (c).
Subsecs. (d) to (f).
Subsec. (g).
Subsecs. (h), (i).
1983—Subsec. (a)(1).
Subsec. (b)(2).
1980—Subsec. (a)(1)(C).
Subsec. (b)(1).
Subsec. (b)(2).
Subsec. (b)(2)(E).
Subsec. (b)(2)(G).
Subsec. (b)(3)(A).
Subsec. (b)(3)(C).
Subsec. (b)(3)(D).
Subsec. (b)(4)(A).
Subsec. (b)(4)(B).
1978—Subsec. (b)(2).
Subsec. (b)(3).
1976—Subsec. (a)(1).
Subsec. (a)(3).
Subsec. (b).
Subsec. (b)(1).
Subsec. (b)(2)(E).
Subsec. (b)(2)(F).
Subsec. (b)(2)(G).
Subsec. (b)(2)(H).
Subsec. (b)(2)(I).
Subsec. (b)(2)(J).
Subsec. (b)(2)(K).
Subsec. (b)(2)(L), (M).
Subsec. (b)(2)(R), (S).
Subsec. (b)(2)(T).
Subsec. (c).
Subsec. (e).
Subsecs. (g), (h).
1971—Subsec. (b)(2)(R).
Subsec. (b)(2)(S).
Subsec. (g).
1970—Subsec. (a)(2)(A).
Subsec. (b)(2)(E).
Subsec. (b)(2)(G).
Subsec. (b)(2)(H).
Subsec. (b)(2)(I), (J).
Subsec. (b)(2)(M).
Subsec. (b)(3).
Subsec. (b)(3)(A) to (C), (E), (F).
Subsec. (c).
1965—Subsec. (a)(1).
Subsec. (a)(1)(A).
Subsec. (a)(1)(B).
Subsec. (a)(1)(C).
Subsec. (a)(1)(D).
Subsec. (a)(3)(A), (B).
Subsec. (a)(3)(C).
Subsec. (a)(3)(D).
Subsec. (b)(1).
Subsec. (b)(2)(F).
Subsec. (b)(2)(N) to (Q).
Subsec. (b)(2)(R).
Subsec. (b)(3)(A).
Subsec. (b)(3)(B).
Subsec. (b)(3)(C).
Subsec. (b)(3)(D).
Subsec. (b)(4).
Subsec. (b)(5).
Subsec. (c).
Subsec. (d).
Subsec. (g).
1962—Subsec. (b)(2)(H).
1961—Subsec. (b)(2)(E).
Subsec. (b)(3)(F).
1960—Subsec. (b)(1).
Subsec. (b)(2)(E).
Subsec. (b)(3)(A).
Subsec. (b)(3)(E).
1959—Subsec. (b)(2)(H).
Subsec. (b)(2)(I), (J).
1958—Subsec. (a) amended generally by
Subsec. (a).
Subsec. (b)(1).
Subsec. (b)(2) amended generally by
Subsec. (b)(3) amended generally by
Subsec. (b)(4), (5).
Subsec. (c).
Subsec. (f).
Subsecs. (g) to (i).
1956—Subsec. (b)(2)(C). Act Apr. 2, 1956, included liquid used on a farm for farming purposes.
Subsec. (b)(2)(J) to (M). Act June 29, 1956, added subpars. (J) to (M).
1955—Subsec. (b)(2)(G). Act Aug. 11, 1955, ch. 805, §2(b), repealed subpar. (G) relating to credit for communication, detection, and navigation receivers when sold to the United States Government.
Subsec. (b)(2)(I). Act Aug. 11, 1955, ch. 793, added subpar. (I).
Subsec. (b)(3)(A). Act Aug. 11, 1955, ch. 805, §1(h), inserted "and other than an automobile part or accessory taxable under section 4061(b), a refrigerator component taxable under section 4111, a radio or television component taxable under section 4141, or a camera lens taxable under section 4171" after "section 4141".
Subsec. (b)(3)(B). Act Aug. 11, 1955, ch. 805, §1(i), substituted provisions allowing a credit for automobile parts or accessories, refrigerator, radio, or television components, or camera lenses taxable under sections 4061(b), 4111, 4141, or 4171, respectively, of this title, for provisions allowing a credit for radio and television components purchased and used by a producer in the manufacture of communication, detection, or navigation receivers in commercial, military, or marine installations if such receivers were sold to the United States.
Statutory Notes and Related Subsidiaries
Effective Date of 2019 Amendment
Amendment by
Effective Date of 2010 Amendment
Amendment by
Effective Date of 2007 Amendment
Effective Date of 2006 Amendment
Amendment by
Effective Date of 2005 Amendment
Amendment by
Effective Date of 2004 Amendment
Amendment by section 853(d)(2)(G)–(I) of
Effective Date of 1997 Amendment
Amendment by section 1032(e)(6) of
Effective Date of 1996 Amendment
Amendment by
Effective Date of 1993 Amendment
Amendment by
Effective Date of 1990 Amendment
Amendment by
Effective Date of 1988 Amendment
Amendment by section 2001(d)(1)(B) of
Effective Date of 1987 Amendment
Amendment by section 9201(b)(2) of
Amendment by section 10502(d)(6)–(8) of
Effective Date of 1986 Amendment
Amendment by
Effective Date of 1984 Amendment
Amendment by
Effective Date of 1983 Amendment
Amendment by section 511(g)(2)(A) of
Amendment by section 512(b)(2)(C), (D) of
Amendment by section 515(b)(4) of
Effective Date of 1980 Amendments
Amendment by
Amendment by
Effective Date of 1978 Amendments
Amendment by section 201(c)(3) of
Amendment by section 232(b) of
Amendment by section 233(c)(3) of
Amendment by
Effective Date of 1976 Amendment
Amendment by section 1904(b)(1), (2) of
Amendment by section 1906(a)(24)(A), (b)(13)(A) of
Effective Date of 1971 Amendment
Amendment by
Effective Date of 1970 Amendments
Amendment by
Effective Date of 1965 Amendment
Amendment by section 207(c) of
Amendment by section 601(c) of
Amendment by section 801(d)(2) applicable with respect to articles sold on or after June 22, 1965, see section 801(e) of
Effective Date of 1962 Amendment
Effective Date of 1961 Amendment
Amendment by
Effective Date of 1960 Amendments
Amendment by
Amendment by
Effective Date of 1958 Amendments
For effective date of amendment by
Effective Date of 1956 Amendments
Amendment by act June 29, 1956, effective June 29, 1956, see section 211 of act June 29, 1956, set out as a note under
Act Apr. 2, 1956, ch. 160, §2(b)(2),
Effective Date of 1955 Amendments
Act Aug. 11, 1955, ch. 805, §3,
"(1) the repeal of section 6416(b)(2)(G) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] shall apply only with respect to articles sold by the manufacturer, producer, or importer on or after the first day of the first month which begins more than 10 days after the date of the enactment of this Act [Aug. 11, 1955], and
"(2) section 6416(b)(3)(B) of the Internal Revenue Code of 1986, as amended by subsection (i) of the first section of this Act [Aug. 11, 1955], shall apply with respect to articles used on or after such first day by the manufacturer or producer as material in the manufacture of, production of, or as a component part of, another article."
Act Aug. 11, 1955, ch. 793, §3,
Overpayment of Tax on Certain Radio Receiving Sets and Radio and Television Components
"(1) a radio receiving set, an automobile radio receiving set, or a radio or television component was (before any other use) used as a component part of any other article, and
"(2) such other article was (before any other use) by any person exported, or sold to a State or local government for the exclusive use of a State or local government,
then any tax imposed by
§6417. Elective payment of applicable credits
(a) In general
In the case of an applicable entity making an election (at such time and in such manner as the Secretary may provide) under this section with respect to any applicable credit determined with respect to such entity, such entity shall be treated as making a payment against the tax imposed by subtitle A (for the taxable year with respect to which such credit was determined) equal to the amount of such credit.
(b) Applicable credit
The term "applicable credit" means each of the following:
(1) So much of the credit for alternative fuel vehicle refueling property allowed under section 30C which, pursuant to subsection (d)(1) of such section, is treated as a credit listed in section 38(b).
(2) So much of the renewable electricity production credit determined under section 45(a) as is attributable to qualified facilities which are originally placed in service after December 31, 2022.
(3) So much of the credit for carbon oxide sequestration determined under section 45Q(a) as is attributable to carbon capture equipment which is originally placed in service after December 31, 2022.
(4) The zero-emission nuclear power production credit determined under section 45U(a).
(5) So much of the credit for production of clean hydrogen determined under section 45V(a) as is attributable to qualified clean hydrogen production facilities which are originally placed in service after December 31, 2012.
(6) In the case of a tax-exempt entity described in clause (i), (ii), or (iv) of section 168(h)(2)(A), the credit for qualified commercial vehicles determined under section 45W by reason of subsection (d)(3) thereof.
(7) The credit for advanced manufacturing production under section 45X(a).
(8) The clean electricity production credit determined under section 45Y(a).
(9) The clean fuel production credit determined under section 45Z(a).
(10) The energy credit determined under section 48.
(11) The qualifying advanced energy project credit determined under section 48C.
(12) The clean electricity investment credit determined under section 48E.
(c) Application to partnerships and S corporations
(1) In general
In the case of any applicable credit determined with respect to any facility or property held directly by a partnership or S corporation, any election under subsection (a) shall be made by such partnership or S corporation. If such partnership or S corporation makes an election under such subsection (in such manner as the Secretary may provide) with respect to such credit—
(A) the Secretary shall make a payment to such partnership or S corporation equal to the amount of such credit,
(B) subsection (e) shall be applied with respect to such credit before determining any partner's distributive share, or shareholder's pro rata share, of such credit,
(C) any amount with respect to which the election in subsection (a) is made shall be treated as tax exempt income for purposes of sections 705 and 1366, and
(D) a partner's distributive share of such tax exempt income shall be based on such partner's distributive share of the otherwise applicable credit for each taxable year.
(2) Coordination with application at partner or shareholder level
In the case of any facility or property held directly by a partnership or S corporation, no election by any partner or shareholder shall be allowed under subsection (a) with respect to any applicable credit determined with respect to such facility or property.
(3) Treatment of payments to partnerships and S corporations
For purposes of
(d) Special rules
For purposes of this section—
(1) Applicable entity
(A) In general
The term "applicable entity" means—
(i) any organization exempt from the tax imposed by subtitle A,
(ii) any State or political subdivision thereof,
(iii) the Tennessee Valley Authority,
(iv) an Indian tribal government (as defined in section 30D(g)(9)),
(v) any Alaska Native Corporation (as defined in section 3 of the Alaska Native Claims Settlement Act (
(vi) any corporation operating on a cooperative basis which is engaged in furnishing electric energy to persons in rural areas.
(B) Election with respect to credit for production of clean hydrogen
If a taxpayer other than an entity described in subparagraph (A) makes an election under this subparagraph with respect to any taxable year in which such taxpayer has placed in service a qualified clean hydrogen production facility (as defined in section 45V(c)(3)), such taxpayer shall be treated as an applicable entity for purposes of this section for such taxable year, but only with respect to the credit described in subsection (b)(5).
(C) Election with respect to credit for carbon oxide sequestration
If a taxpayer other than an entity described in subparagraph (A) makes an election under this subparagraph with respect to any taxable year in which such taxpayer has, after December 31, 2022, placed in service carbon capture equipment at a qualified facility (as defined in section 45Q(d)), such taxpayer shall be treated as an applicable entity for purposes of this section for such taxable year, but only with respect to the credit described in subsection (b)(3).
(D) Election with respect to advanced manufacturing production credit
(i) In general
If a taxpayer other than an entity described in subparagraph (A) makes an election under this subparagraph with respect to any taxable year in which such taxpayer has, after December 31, 2022, produced eligible components (as defined in section 45X(c)(1)), such taxpayer shall be treated as an applicable entity for purposes of this section for such taxable year, but only with respect to the credit described in subsection (b)(7).
(ii) Limitation
(I) In general
Except as provided in subclause (II), if a taxpayer makes an election under this subparagraph with respect to any taxable year, such taxpayer shall be treated as having made such election for each of the 4 succeeding taxable years ending before January 1, 2033.
(II) Exception
A taxpayer may elect to revoke the application of the election made under this subparagraph to any taxable year described in subclause (I). Any such election, if made, shall apply to the applicable year specified in such election and each subsequent taxable year within the period described in subclause (I). Any election under this subclause may not be subsequently revoked.
(iii) Prohibition on transfer
For any taxable year described in clause (ii)(I), no election may be made by the taxpayer under section 6418(a) for such taxable year with respect to eligible components for purposes of the credit described in subsection (b)(7).
(E) Other rules
(i) In general
An election made under subparagraph (B), (C), or (D) shall be made at such time and in such manner as the Secretary may provide.
(ii) Limitation
No election may be made under subparagraph (B), (C), or (D) with respect to any taxable year beginning after December 31, 2032.
(2) Application
In the case of any applicable entity which makes the election described in subsection (a), any applicable credit shall be determined—
(A) without regard to paragraphs (3) and (4)(A)(i) of section 50(b), and
(B) by treating any property with respect to which such credit is determined as used in a trade or business of the applicable entity.
(3) Elections
(A) In general
(i) Due date
Any election under subsection (a) shall be made not later than—
(I) in the case of any government, or political subdivision, described in paragraph (1) and for which no return is required under section 6011 or 6033(a), such date as is determined appropriate by the Secretary, or
(II) in any other case, the due date (including extensions of time) for the return of tax for the taxable year for which the election is made, but in no event earlier than 180 days after the date of the enactment of this section.
(ii) Additional rules
Any election under subsection (a), once made, shall be irrevocable and shall apply (except as otherwise provided in this paragraph) with respect to any credit for the taxable year for which the election is made.
(B) Renewable electricity production credit
In the case of the credit described in subsection (b)(2), any election under subsection (a) shall—
(i) apply separately with respect to each qualified facility,
(ii) be made for the taxable year in which such qualified facility is originally placed in service, and
(iii) shall apply to such taxable year and to any subsequent taxable year which is within the period described in subsection (a)(2)(A)(ii) of section 45 with respect to such qualified facility.
(C) Credit for carbon oxide sequestration
(i) In general
In the case of the credit described in subsection (b)(3), any election under subsection (a) shall—
(I) apply separately with respect to the carbon capture equipment originally placed in service by the applicable entity during a taxable year, and
(II)(aa) in the case of a taxpayer who makes an election described in paragraph (1)(C), apply to the taxable year in which such equipment is placed in service and the 4 subsequent taxable years with respect to such equipment which end before January 1, 2033, and
(bb) in any other case, apply to such taxable year and to any subsequent taxable year which is within the period described in paragraph (3)(A) or (4)(A) of section 45Q(a) with respect to such equipment.
(ii) Prohibition on transfer
For any taxable year described in clause (i)(II)(aa) with respect to carbon capture equipment, no election may be made by the taxpayer under section 6418(a) for such taxable year with respect to such equipment for purposes of the credit described in subsection (b)(3).
(iii) Revocation of election
In the case of a taxpayer who makes an election described in paragraph (1)(C) with respect to carbon capture equipment, such taxpayer may, at any time during the period described in clause (i)(II)(aa), revoke the application of such election with respect to such equipment for any subsequent taxable years during such period. Any such election, if made, shall apply to the applicable year specified in such election and each subsequent taxable year within the period described in clause (i)(II)(aa). Any election under this subclause may not be subsequently revoked.
(D) Credit for production of clean hydrogen
(i) In general
In the case of the credit described in subsection (b)(5), any election under subsection (a) shall—
(I) apply separately with respect to each qualified clean hydrogen production facility,
(II) be made for the taxable year in which such facility is placed in service (or within the 1-year period subsequent to the date of enactment of this section in the case of facilities placed in service before December 31, 2022), and
(III)(aa) in the case of a taxpayer who makes an election described in paragraph (1)(B), apply to such taxable year and the 4 subsequent taxable years with respect to such facility which end before January 1, 2033, and
(bb) in any other case, apply to such taxable year and all subsequent taxable years with respect to such facility.
(ii) Prohibition on transfer
For any taxable year described in clause (i)(III)(aa) with respect to a qualified clean hydrogen production facility, no election may be made by the taxpayer under section 6418(a) for such taxable year with respect to such facility for purposes of the credit described in subsection (b)(5).
(iii) Revocation of election
In the case of a taxpayer who makes an election described in paragraph (1)(B) with respect to a qualified clean hydrogen production facility, such taxpayer may, at any time during the period described in clause (i)(III)(aa), revoke the application of such election with respect to such facility for any subsequent taxable years during such period. Any such election, if made, shall apply to the applicable year specified in such election and each subsequent taxable year within the period described in clause (i)(II)(aa). Any election under this subclause may not be subsequently revoked.
(E) Clean electricity production credit
In the case of the credit described in subsection (b)(8), any election under subsection (a) shall—
(i) apply separately with respect to each qualified facility,
(ii) be made for the taxable year in which such facility is placed in service, and
(iii) shall apply to such taxable year and to any subsequent taxable year which is within the period described in subsection (b)(1)(B) of section 45Y with respect to such facility.
(4) Timing
The payment described in subsection (a) shall be treated as made on—
(A) in the case of any government, or political subdivision, described in paragraph (1) and for which no return is required under section 6011 or 6033(a), the later of the date that a return would be due under section 6033(a) if such government or subdivision were described in that section or the date on which such government or subdivision submits a claim for credit or refund (at such time and in such manner as the Secretary shall provide), and
(B) in any other case, the later of the due date (determined without regard to extensions) of the return of tax for the taxable year or the date on which such return is filed.
(5) Additional information
As a condition of, and prior to, any amount being treated as a payment which is made by an applicable entity under subsection (a), the Secretary may require such information or registration as the Secretary deems necessary for purposes of preventing duplication, fraud, improper payments, or excessive payments under this section.
(6) Excessive payment
(A) In general
In the case of any amount treated as a payment which is made by the applicable entity under subsection (a), or the amount of the payment made pursuant to subsection (c), which the Secretary determines constitutes an excessive payment, the tax imposed on such entity by
(i) the amount of such excessive payment, plus
(ii) an amount equal to 20 percent of such excessive payment.
(B) Reasonable cause
Subparagraph (A)(ii) shall not apply if the applicable entity demonstrates to the satisfaction of the Secretary that the excessive payment resulted from reasonable cause.
(C) Excessive payment defined
For purposes of this paragraph, the term "excessive payment" means, with respect to a facility or property for which an election is made under this section for any taxable year, an amount equal to the excess of—
(i) the amount treated as a payment which is made by the applicable entity under subsection (a), or the amount of the payment made pursuant to subsection (c), with respect to such facility or property for such taxable year, over
(ii) the amount of the credit which, without application of this section, would be otherwise allowable (as determined pursuant to paragraph (2) and without regard to section 38(c)) under this title with respect to such facility or property for such taxable year.
(e) Denial of double benefit
In the case of an applicable entity making an election under this section with respect to an applicable credit, such credit shall be reduced to zero and shall, for any other purposes under this title, be deemed to have been allowed to such entity for such taxable year.
(f) Mirror code possessions
In the case of any possession of the United States with a mirror code tax system (as defined in section 24(k)), this section shall not be treated as part of the income tax laws of the United States for purposes of determining the income tax law of such possession unless such possession elects to have this section be so treated.
(g) Basis reduction and recapture
Except as otherwise provided in subsection (c)(2)(A), rules similar to the rules of section 50 shall apply for purposes of this section.
(h) Regulations
The Secretary shall issue such regulations or other guidance as may be necessary to carry out the purposes of this section, including guidance to ensure that the amount of the payment or deemed payment made under this section is commensurate with the amount of the credit that would be otherwise allowable (determined without regard to section 38(c)).
(Added
Editorial Notes
References in Text
The date of the enactment of this section, referred to in subsec. (d)(3)(A)(i)(II), (D)(i)(II), is the date of enactment of
Prior Provisions
A prior section 6417, act Aug. 16, 1954, ch. 736,
Statutory Notes and Related Subsidiaries
Effective Date
Gross-Up of Direct Spending
§6418. Transfer of certain credits
(a) In general
In the case of an eligible taxpayer which elects to transfer all (or any portion specified in the election) of an eligible credit determined with respect to such taxpayer for any taxable year to a taxpayer (referred to in this section as the "transferee taxpayer") which is not related (within the meaning of section 267(b) or 707(b)(1)) to the eligible taxpayer, the transferee taxpayer specified in such election (and not the eligible taxpayer) shall be treated as the taxpayer for purposes of this title with respect to such credit (or such portion thereof).
(b) Treatment of payments made in connection with transfer
With respect to any amount paid by a transferee taxpayer to an eligible taxpayer as consideration for a transfer described in subsection (a), such consideration—
(1) shall be required to be paid in cash,
(2) shall not be includible in gross income of the eligible taxpayer, and
(3) with respect to the transferee taxpayer, shall not be deductible under this title.
(c) Application to partnerships and S corporations
(1) In general
In the case of any eligible credit determined with respect to any facility or property held directly by a partnership or S corporation, if such partnership or S corporation makes an election under subsection (a) (in such manner as the Secretary may provide) with respect to such credit—
(A) any amount received as consideration for a transfer described in such subsection shall be treated as tax exempt income for purposes of sections 705 and 1366, and
(B) a partner's distributive share of such tax exempt income shall be based on such partner's distributive share of the otherwise eligible credit for each taxable year.
(2) Coordination with application at partner or shareholder level
In the case of any facility or property held directly by a partnership or S corporation, no election by any partner or shareholder shall be allowed under subsection (a) with respect to any eligible credit determined with respect to such facility or property.
(d) Taxable year in which credit taken into account
In the case of any credit (or portion thereof) with respect to which an election is made under subsection (a), such credit shall be taken into account in the first taxable year of the transferee taxpayer ending with, or after, the taxable year of the eligible taxpayer with respect to which the credit was determined.
(e) Limitations on election
(1) Time for election
An election under subsection (a) to transfer any portion of an eligible credit shall be made not later than the due date (including extensions of time) for the return of tax for the taxable year for which the credit is determined, but in no event earlier than 180 days after the date of the enactment of this section. Any such election, once made, shall be irrevocable.
(2) No additional transfers
No election may be made under subsection (a) by a transferee taxpayer with respect to any portion of an eligible credit which has been previously transferred to such taxpayer pursuant to this section.
(f) Definitions
For purposes of this section—
(1) Eligible credit
(A) In general
The term "eligible credit" means each of the following:
(i) So much of the credit for alternative fuel vehicle refueling property allowed under section 30C which, pursuant to subsection (d)(1) of such section, is treated as a credit listed in section 38(b).
(ii) The renewable electricity production credit determined under section 45(a).
(iii) The credit for carbon oxide sequestration determined under section 45Q(a).
(iv) The zero-emission nuclear power production credit determined under section 45U(a).
(v) The clean hydrogen production credit determined under section 45V(a).
(vi) The advanced manufacturing production credit determined under section 45X(a).
(vii) The clean electricity production credit determined under section 45Y(a).
(viii) The clean fuel production credit determined under section 45Z(a).
(ix) The energy credit determined under section 48.
(x) The qualifying advanced energy project credit determined under section 48C.
(xi) The clean electricity investment credit determined under section 48E.
(B) Election for certain credits
In the case of any eligible credit described in clause (ii), (iii), (v), or (vii) of subparagraph (A), an election under subsection (a) shall be made—
(i) separately with respect to each facility for which such credit is determined, and
(ii) for each taxable year during the 10-year period beginning on the date such facility was originally placed in service (or, in the case of the credit described in clause (iii), for each year during the 12-year period beginning on the date the carbon capture equipment was originally placed in service at such facility).
(C) Exception for business credit carryforwards or carrybacks
The term "eligible credit" shall not include any business credit carryforward or business credit carryback determined under section 39.
(2) Eligible taxpayer
The term "eligible taxpayer" means any taxpayer which is not described in section 6417(d)(1)(A).
(g) Special rules
For purposes of this section—
(1) Additional information
As a condition of, and prior to, any transfer of any portion of an eligible credit pursuant to subsection (a), the Secretary may require such information (including, in such form or manner as is determined appropriate by the Secretary, such information returns) or registration as the Secretary deems necessary for purposes of preventing duplication, fraud, improper payments, or excessive payments under this section.
(2) Excessive credit transfer
(A) In general
In the case of any portion of an eligible credit which is transferred to a transferee taxpayer pursuant to subsection (a) which the Secretary determines constitutes an excessive credit transfer, the tax imposed on the transferee taxpayer by
(i) the amount of such excessive credit transfer, plus
(ii) an amount equal to 20 percent of such excessive credit transfer.
(B) Reasonable cause
Subparagraph (A)(ii) shall not apply if the transferee taxpayer demonstrates to the satisfaction of the Secretary that the excessive credit transfer resulted from reasonable cause.
(C) Excessive credit transfer defined
For purposes of this paragraph, the term "excessive credit transfer" means, with respect to a facility or property for which an election is made under subsection (a) for any taxable year, an amount equal to the excess of—
(i) the amount of the eligible credit claimed by the transferee taxpayer with respect to such facility or property for such taxable year, over
(ii) the amount of such credit which, without application of this section, would be otherwise allowable under this title with respect to such facility or property for such taxable year.
(3) Basis reduction; notification of recapture
In the case of any election under subsection (a) with respect to any portion of an eligible credit described in clauses (ix) through (xi) of subsection (f)(1)(A)—
(A) subsection (c) of section 50 shall apply to the applicable investment credit property (as defined in subsection (a)(5) of such section) as if such eligible credit was allowed to the eligible taxpayer, and
(B) if, during any taxable year, the applicable investment credit property (as defined in subsection (a)(5) of section 50) is disposed of, or otherwise ceases to be investment credit property with respect to the eligible taxpayer, before the close of the recapture period (as described in subsection (a)(1) of such section)—
(i) such eligible taxpayer shall provide notice of such occurrence to the transferee taxpayer (in such form and manner as the Secretary shall prescribe), and
(ii) the transferee taxpayer shall provide notice of the recapture amount (as defined in subsection (c)(2) of such section), if any, to the eligible taxpayer (in such form and manner as the Secretary shall prescribe).
(4) Prohibition on election or transfer with respect to progress expenditures
This section shall not apply with respect to any amount of an eligible credit which is allowed pursuant to rules similar to the rules of subsections (c)(4) and (d) of section 46 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990).
(h) Regulations
The Secretary shall issue such regulations or other guidance as may be necessary to carry out the purposes of this section, including regulations or other guidance providing rules for determining a partner's distributive share of the tax exempt income described in subsection (c)(1).
(Added
Editorial Notes
References in Text
The date of the enactment of this section, referred to in subsec. (e)(1), is the date of enactment of
The date of the enactment of the Revenue Reconciliation Act of 1990, referred to in subsec. (g)(4), is the date of enactment of title XI of
Prior Provisions
A prior section 6418, acts Aug. 16, 1954, ch. 736,
Statutory Notes and Related Subsidiaries
Effective Date
Section applicable to taxable years beginning after Dec. 31, 2022, see section 13801(g) of
§6419. Excise tax on wagering
(a) Credit or refund generally
No overpayment of tax imposed by
(b) Credit or refund on wagers laid-off by taxpayer
Where any taxpayer lays off part or all of a wager with another person who is liable for tax imposed by
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
1976—Subsecs. (a), (b).
§6420. Gasoline used on farms
(a) Gasoline
Except as provided in subsection (g), if gasoline is used on a farm for farming purposes, the Secretary shall pay (without interest) to the ultimate purchaser of such gasoline the amount determined by multiplying—
(1) the number of gallons so used, by
(2) the rate of tax on gasoline under section 4081 which applied on the date he purchased such gasoline.
(b) Time for filing claims; period covered
Not more than one claim may be filed under this section by any person with respect to gasoline used during his taxable year, and no claim shall be allowed under this section with respect to gasoline used during any taxable year unless filed by such person not later than the time prescribed by law for filing a claim for credit or refund of overpayment of income tax for such taxable year. For purposes of this subsection, a person's taxable year shall be his taxable year for purposes of subtitle A.
(c) Meaning of terms
For purposes of this section—
(1) Use on a farm for farming purposes
Gasoline shall be treated as used on a farm for farming purposes only if used (A) in carrying on a trade or business, (B) on a farm situated in the United States, and (C) for farming purposes.
(2) Farm
The term "farm" includes stock, dairy, poultry, fruit, fur-bearing animal, and truck farms, plantations, ranches, nurseries, ranges, greenhouses or other similar structures used primarily for the raising of agricultural or horticultural commodities, and orchards.
(3) Farming purposes
Gasoline shall be treated as used for farming purposes only if used—
(A) by the owner, tenant, or operator of a farm, in connection with cultivating the soil, or in connection with raising or harvesting any agricultural or horticultural commodity, including the raising, shearing, feeding, caring for, training, and management of livestock, bees, poultry, and fur-bearing animals and wildlife, on a farm of which he is the owner, tenant, or operator;
(B) by the owner, tenant, or operator of a farm, in handling, drying, packing, grading, or storing any agricultural or horticultural commodity in its unmanufactured state; but only if such owner, tenant or operator produced more than one-half of the commodity which he so treated during the period with respect to which claim is filed;
(C) by the owner, tenant, or operator of a farm, in connection with—
(i) the planting, cultivating, caring for, or cutting of trees, or
(ii) the preparation (other than milling) of trees for market,
incidental to farming operations; or
(D) by the owner, tenant, or operator of a farm, in connection with the operation, management, conservation, improvement, or maintenance of such farm and its tools and equipment.
(4) Certain farming use other than by owner, etc.
In applying paragraph (3)(A) to a use on a farm for any purpose described in paragraph (3)(A) by any person other than the owner, tenant, or operator of such farm—
(A) the owner, tenant, or operator of such farm shall be treated as the user and ultimate purchaser of the gasoline, except that
(B) if the person so using the gasoline is an aerial or other applicator of fertilizers or other substances and is the ultimate purchaser of the gasoline, then subparagraph (A) of this paragraph shall not apply and the aerial or other applicator shall be treated as having used such gasoline on a farm for farming purposes.
In the case of an aerial applicator, gasoline shall be treated as used on a farm for farming purposes if the gasoline is used for the direct flight between the airfield and one or more farms.
(5) Gasoline
The term "gasoline" has the meaning given to such term by section 4083(a).
(d) Exempt sales; other payments or refunds available
No amount shall be payable under this section with respect to any gasoline which the Secretary determines was exempt from the tax imposed by section 4081. The amount which (but for this sentence) would be payable under this section with respect to any gasoline shall be reduced by any other amount which the Secretary determines is payable under this section, or is refundable under any provision of this title, to any person with respect to such gasoline.
(e) Applicable laws
(1) In general
All provisions of law, including penalties, applicable in respect of the tax imposed by section 4081 shall, insofar as applicable and not inconsistent with this section, apply in respect of the payments provided for in this section to the same extent as if such payments constituted refunds of overpayments of the tax so imposed.
(2) Examination of books and witnesses
For the purpose of ascertaining the correctness of any claim made under this section, or the correctness of any payment made in respect of any such claim, the Secretary shall have the authority granted by paragraphs (1), (2), and (3) of section 7602(a) (relating to examination of books and witnesses) as if the claimant were the person liable for tax.
(3) Fractional parts of a dollar
Section 7504 (granting the Secretary discretion with respect to fractional parts of a dollar) shall not apply.
(f) Regulations
The Secretary may by regulations prescribe the conditions, not inconsistent with the provisions of this section, under which payments may by made under this section.
(g) Income tax credit in lieu of payment
(1) Persons not subject to income tax
Payment shall be made under subsection (a), only to—
(A) the United States or an agency or instrumentality thereof, a State, a political subdivision of a State, or an agency or instrumentality of one or more States or political subdivisions, or
(B) an organization exempt from tax under section 501(a) (other than an organization required to make a return of the tax imposed under subtitle A for its taxable year).
(2) Allowance of credit against income tax
For allowance of credit against the tax imposed by subtitle A, see section 34.
[(h) Repealed. Pub. L. 103–66, title XIII, §13241(f)(5), Aug. 10, 1993, 107 Stat. 512 ]
(i) Cross references
(1) For exemption from tax in case of special fuels used on a farm for farming purposes, see section 4041(f).
(2) For civil penalty for excessive claim under this section, see section 6675.
(3) For fraud penalties, etc., see
(4) For treatment of an Indian tribal government as a State (and a subdivision of an Indian tribal government as a political subdivision of a State), see section 7871.
(Added Apr. 2, 1956, ch. 160, §1,
Editorial Notes
Prior Provisions
A prior section 6420 was renumbered
Amendments
2018—Subsec. (i)(4).
2005—Subsec. (c)(4).
Subsec. (c)(4)(B).
"(i) the person so using the gasoline is an aerial or other applicator of fertilizers or other substances and is the ultimate purchaser of the gasoline, and
"(ii) the person described in subparagraph (A) waives (at such time and in such form and manner as the Secretary shall prescribe) his right to be treated as the user and ultimate purchaser of the gasoline,
then subparagraph (A) of this paragraph shall not apply and the aerial or other applicator shall be treated as having used such gasoline on a farm for farming purposes."
1993—Subsec. (c)(5).
Subsec. (h).
1991—Subsec. (h).
1990—Subsec. (h).
1989—Subsec. (e)(2).
1987—Subsec. (h).
1986—Subsec. (h).
1984—Subsec. (g)(2).
1983—Subsec. (c)(4)(B).
Subsec. (h).
Subsec. (h)(4).
Subsec. (i).
Subsec. (i)(4).
1978—Subsec. (c)(3)(A).
Subsec. (c)(4), (5).
1976—Subsec. (a).
Subsec. (b).
Subsec. (c)(3)(A).
Subsec. (d).
Subsec. (e)(1).
Subsecs. (e)(2), (f).
Subsec. (g).
Subsecs. (h), (i).
1970—Subsec. (b)(2)(B).
Subsec. (i)(1).
1965—Subsec. (a).
Subsec. (b).
Subsec. (d).
Subsecs. (h), (i).
1958—Subsec. (c)(3)(A).
Statutory Notes and Related Subsidiaries
Effective Date of 2005 Amendment
Amendment by
Effective Date of 1993 Amendment
Amendment by section 13241(f)(5) of
Amendment by section 13242(d)(20) of
Effective Date of 1986 Amendment
Amendment by
Effective Date of 1984 Amendment
Amendment by
Effective Date of 1983 Amendments
For effective date of amendment by
Amendment by section 511(f) of
Effective Date of 1978 Amendment
Effective Date of 1976 Amendment
Amendment by section 1906(a)(26), (b)(13)(A) of
Effective Date of 1970 Amendment
Amendment by
Effective Date of 1965 Amendment
Effective Date of 1958 Amendment
Amendment by
§6421. Gasoline used for certain nonhighway purposes, used by local transit systems, or sold for certain exempt purposes
(a) Nonhighway uses
Except as provided in subsection (i), if gasoline is used in an off-highway business use, the Secretary shall pay (without interest) to the ultimate purchaser of such gasoline an amount equal to the amount determined by multiplying the number of gallons so used by the rate at which tax was imposed on such gasoline under section 4081. Except as provided in paragraph (2) of subsection (f) of this section, in the case of gasoline used as a fuel in an aircraft, the Secretary shall pay (without interest) to the ultimate purchaser of such gasoline an amount equal to the amount determined by multiplying the number of gallons of gasoline so used by the rate at which tax was imposed on such gasoline under section 4081.
(b) Intercity, local, or school buses
(1) Allowance
Except as provided in paragraph (2) and subsection (i), if gasoline is used in an automobile bus while engaged in—
(A) furnishing (for compensation) passenger land transportation available to the general public, or
(B) the transportation of students and employees of schools (as defined in the last sentence of section 4221(d)(7)(C)),
the Secretary shall pay (without interest) to the ultimate purchaser of such gasoline an amount equal to the product of the number of gallons of gasoline so used multiplied by the rate at which tax was imposed on such gasoline by section 4081.
(2) Limitation in case of nonscheduled intercity or local buses
Paragraph (1)(A) shall not apply in respect of gasoline used in any automobile bus while engaged in furnishing transportation which is not scheduled and not along regular routes unless the seating capacity of such bus is at least 20 adults (not including the driver).
(c) Exempt purposes
If gasoline is sold to any person for any purpose described in paragraph (2), (3), (4), (5), or (6) of section 4221(a), the Secretary shall pay (without interest) to such person an amount equal to the product of the number of gallons of gasoline so sold multiplied by the rate at which tax was imposed on such gasoline by section 4081. The preceding sentence shall apply notwithstanding paragraphs (2) and (3) of subsection (f). Subsection (a) shall not apply to gasoline to which this subsection applies.
(d) Time for filing claims; period covered
(1) In general
Except as provided in paragraph (2), not more than one claim may be filed under subsection (a), not more than one claim may be filed under subsection (b), and not more than one claim may be filed under subsection (c), by any person with respect to gasoline used during his taxable year; and no claim shall be allowed under this paragraph with respect to gasoline used during any taxable year unless filed by such person not later than the time prescribed by law for filing a claim for credit or refund of overpayment of income tax for such taxable year. For purposes of this subsection, a person's taxable year shall be his taxable year for purposes of subtitle A.
(2) Exception
For payments per quarter based on aggregate amounts payable under this section and section 6427, see section 6427(i)(2).
(3) Application to sales under subsection (c)
For purposes of this subsection, gasoline shall be treated as used for a purpose referred to in subsection (c) when it is sold for such a purpose.
(e) Definitions
For purposes of this section—
(1) Gasoline
The term "gasoline" has the meaning given to such term by section 4083(a).
(2) Off-highway business use
(A) In general
The term "off-highway business use" means any use by a person in a trade or business of such person or in an activity of such person described in section 212 (relating to production of income) otherwise than as a fuel in a highway vehicle—
(i) which (at the time of such use), is registered, or is required to be registered, for highway use under the laws of any State or foreign country, or
(ii) which, in the case of a highway vehicle owned by the United States, is used on the highway.
(B) Uses in boats
(i) In general
Except as otherwise provided in this subparagraph, the term "off-highway business use" does not include any use in a motorboat.
(ii) Fisheries and whaling
The term "off-highway business use" shall include any use in a vessel employed in the fisheries or in the whaling business.
(C) Uses in mobile machinery
(i) In general
The term "off-highway business use" shall include any use in a vehicle which meets the requirements described in clause (ii).
(ii) Requirements for mobile machinery
The requirements described in this clause are—
(I) the design-based test, and
(II) the use-based test.
(iii) Design-based test
For purposes of clause (ii)(I), the design-based test is met if the vehicle consists of a chassis—
(I) to which there has been permanently mounted (by welding, bolting, riveting, or other means) machinery or equipment to perform a construction, manufacturing, processing, farming, mining, drilling, timbering, or similar operation if the operation of the machinery or equipment is unrelated to transportation on or off the public highways,
(II) which has been specially designed to serve only as a mobile carriage and mount (and a power source, where applicable) for the particular machinery or equipment involved, whether or not such machinery or equipment is in operation, and
(III) which, by reason of such special design, could not, without substantial structural modification, be used as a component of a vehicle designed to perform a function of transporting any load other than that particular machinery or equipment or similar machinery or equipment requiring such a specially designed chassis.
(iv) Use-based test
For purposes of clause (ii)(II), the use-based test is met if the use of the vehicle on public highways was less than 7,500 miles during the taxpayer's taxable year. This clause shall be applied without regard to use of the vehicle by any organization which is described in section 501(c) and exempt from tax under section 501(a).
(f) Exempt sales; other payments or refunds available
(1) Gasoline used on farms
This section shall not apply in respect of gasoline which was (within the meaning of paragraphs (1), (2), and (3) of section 6420(c)) used on a farm for farming purposes.
(2) Gasoline used in aviation
This section shall not apply in respect of gasoline which is used as a fuel in an aircraft—
(A) in aviation which is not commercial aviation (as defined in section 4083(b)), or
(B) in commercial aviation (as so defined) with respect to the tax imposed by section 4081 at the Leaking Underground Storage Tank Trust Fund financing rate and, in the case of fuel purchased after September 30, 1995, at so much of the rate specified in section 4081(a)(2)(A) as does not exceed 4.3 cents per gallon.
(3) Gasoline used in trains
In the case of gasoline used as a fuel in a train, this section shall not apply with respect to—
(A) the Leaking Underground Storage Tank Trust Fund financing rate under section 4081, and
(B) so much of the rate specified in section 4081(a)(2)(A) as does not exceed the rate applicable under section 4041(a)(1)(C)(ii).
(g) Applicable laws
(1) In general
All provisions of law, including penalties, applicable in respect to the tax imposed by section 4081 shall, insofar as applicable and not inconsistent with this section, apply in respect of the payments provided for in this section to the same extent as if such payments constituted refunds of overpayments of the tax so imposed.
(2) Examination of books and witnesses
For the purpose of ascertaining the correctness of any claim made under this section, or the correctness of any payment made in respect of any such claim, the Secretary shall have the authority granted by paragraphs (1), (2), and (3) of section 7602(a) (relating to examination of books and witnesses) as if the claimant were the person liable for tax.
(h) Regulations
The Secretary may by regulations prescribe the conditions, not inconsistent with the provisions of this section, under which payments may be made under this section.
(i) Income tax credit in lieu of payment
(1) Persons not subject to income tax
Payment shall be made under subsections (a) and (b) only to—
(A) the United States or any agency or instrumentality thereof, a State, a political subdivision of a State, or any agency or instrumentality of one or more States or political subdivisions, or
(B) an organization exempt from tax under section 501(a) (other than an organization required to make a return of the tax imposed under subtitle A for its taxable year).
(2) Exception
Paragraph (1) shall not apply to a payment of a claim filed under subsection (d)(2).
(3) Allowance of credit against income tax
For allowance of credit against the tax imposed by subtitle A, see section 34.
(j) Cross references
(1) For civil penalty for excessive claims under this section, see section 6675.
(2) For fraud penalties, etc., see
(3) For treatment of an Indian tribal government as a State (and a subdivision of an Indian tribal government as a political subdivision of a State), see section 7871.
(Added June 29, 1956, ch. 462, title II, §208(c),
Editorial Notes
Prior Provisions
A prior section 6421 was renumbered
Amendments
2018—Subsec. (c).
Subsec. (j)(3).
2006—Subsec. (c).
2005—Subsec. (f)(2)(A).
Subsec. (f)(2)(B).
2004—Subsec. (e)(2)(C).
Subsec. (f)(3)(B).
"(i) 6.8 cents per gallon after September 30, 1993, and before October 1, 1995,
"(ii) 5.55 cents per gallon after September 30, 1995, and before November 1, 1998, and
"(iii) 4.3 cents per gallon after October 31, 1998."
1998—Subsecs. (a), (b)(1).
Subsec. (c).
Subsec. (d)(2).
Subsec. (f)(3)(B)(ii).
Subsec. (f)(3)(B)(iii).
Subsecs. (i) to (k).
1997—Subsec. (e)(2)(B)(iii), (iv).
"(iii)
"(I) a trade or business of commercial fishing or transporting persons or property for compensation or hire, and
"(II) except as provided in clause (iv), any other trade or business.
"(iv)
"(I) the taxes under sections 4041(a)(1) and 4081 for the period after December 31, 1993, and before January 1, 2000, and
"(II) so much of the tax under sections 4041(a)(1) and 4081 as does not exceed 4.3 cents per gallon for the period after December 31, 1999."
1996—Subsec. (f)(2)(A).
1993—Subsec. (c).
Subsec. (e)(1).
Subsec. (e)(2)(B).
Subsec. (f)(2)(B).
Subsec. (f)(3).
Subsec. (i).
1991—Subsec. (i).
1990—Subsec. (i).
1989—Subsec. (g)(2).
1988—Subsec. (a).
Subsec. (b)(1).
Subsec. (d)(3).
Subsec. (f)(2).
Subsec. (f)(3).
Subsec. (f)(4).
Subsec. (i).
Subsec. (j).
Subsec. (k).
1987—Subsec. (e)(2)(C).
Subsec. (i).
Subsec. (j).
1986—
Subsec. (c).
Subsec. (d).
Subsec. (e).
Subsec. (e)(4).
Subsec. (f).
Subsec. (g).
Subsec. (h).
Subsec. (i).
1984—Subsec. (i)(3).
1983—Subsec. (a).
Subsec. (d)(2).
Subsec. (d)(2)(C).
Subsec. (h).
Subsec. (j)(4).
1980—Subsec. (d)(2)(B).
1978—Subsec. (a).
Subsec. (b).
Subsec. (d)(2).
Subsec. (d)(3).
Subsec. (h).
1976—Subsec. (a).
Subsec. (b)(1).
Subsec. (c).
Subsec. (e)(1).
Subsec. (e)(3).
Subsecs. (f), (g).
Subsec. (h).
Subsec. (i)(1).
Subsec. (i)(2).
Subsec. (i)(3).
1970—Subsec. (a).
Subsec. (c)(3)(A)(ii).
Subsec. (e)(3).
Subsec. (h).
Subsec. (j)(1).
Subsec. (j)(2).
Subsec. (j)(3).
Subsec. (j)(4), (5).
1965—Subsec. (a).
Subsec. (b).
Subsec. (c)(1).
Subsec. (c)(2).
Subsec. (c)(3).
Subsec. (e)(1).
Subsecs. (i), (j).
1962—Subsec. (b)(1)(B), (2).
Subsec. (d)(2).
1961—Subsec. (h).
1959—Subsec. (a).
Subsec. (b)(1)(A).
1958—Subsec. (c).
Subsec. (i)(2), (3).
1956—Subsec. (d)(2). Act July 25, 1956, substituted "4263(a)" for "4262(b)".
Statutory Notes and Related Subsidiaries
Effective Date of 2006 Amendment
Amendment by
Effective Date of 2005 Amendment
Amendment by
Effective Date of 2004 Amendment
Amendment by section 241(a)(2)(C) of
Amendment by section 851(d)(1) of
Effective Date of 1998 Amendments
Amendment by section 6023(24)(A), (C) of
Amendment by section 6010(g)(3) of
Effective Date of 1997 Amendment
Amendment by
Effective Date of 1996 Amendment
Amendment by
Effective Date of 1993 Amendment
Amendment by section 13163(b) of
Amendment by section 13241(f)(6), (7) of
Amendment by section 13242(d)(20), (22)–(24) of
Effective Date of 1988 Amendment
Amendment by section 1017(c)(6)–(8), (15) of
Amendment by section 2001(d)(3)(E), (F) of
Effective Date of 1987 Amendment
Amendment by
Effective Date of 1986 Amendments
Amendment by
Amendment by
Effective Date of 1984 Amendment
Amendment by
Effective Date of 1983 Amendments
For effective date of amendment by
Amendment by section 511(c)(1), (3) of
Amendment by section 515(b)(7) of
Effective Date of 1980 Amendment
Amendment by
Effective Date of 1978 Amendment
Amendment by section 222(a)(1) of
Amendment by section 233(a)(1), (3)(A) of
Effective Date of 1976 Amendment
Amendment by section 1906(a)(27)(B)–(D), (b)(13)(A) of
Effective Date of 1970 Amendment
Amendment by section 205(b)(1), (c)(8) of
Effective Date of 1965 Amendment
Amendment by
Effective Date of 1962 Amendment
Effective Date of 1961 Amendment
Amendment by
Effective Date of 1958 Amendment
Amendment by section 163(d)(3) of
Effective Date of 1956 Amendment
Amendment by act July 25, 1956, applicable to amounts paid on or after first day of first month which begins more than sixty days after July 25, 1956, for transportation commencing on or after such first day, see section 6 of act July 25, 1956, set out as a note under
§6422. Cross references
(1) For limitations on credits and refunds, see subchapter B of
(2) For overpayment in case of adjustments to accrued foreign taxes, see section 905(c).
(3) For credit or refund in case of deficiency dividends paid by a personal holding company, see section 547.
(4) For refund, credit, or abatement of amounts disallowed by courts upon review of Tax Court decision, see section 7486.
(5) For refund or redemption of stamps, see
(6) For abatement, credit, or refund in case of jeopardy assessments, see
(7) For restrictions on transfers and assignments of claims against the United States, see
(8) For set-off of claims against amounts due the United States, see
(9) For special provisions relating to alcohol and tobacco taxes, see subtitle E.
(10) For credit or refund in case of deficiency dividends paid by a regulated investment company or real estate investment trust, see section 860.
(Aug. 16, 1954, ch. 736,
Editorial Notes
References in Text
Section 9 of the Merchant Ship Sales Act of 1946 (
Amendments
2018—Pars. (7) to (9).
Pars. (10), (11).
Par. (12).
2015—Par. (12).
1997—Pars. (5) to (13).
1990—
1982—Par. (10).
Par. (11).
Par. (15).
1978—Par. (14).
1976—Par. (2).
Pars. (3) to (8).
Par. (9).
Par. (10).
Par. (11).
Pars. (12), (13).
Par. (14).
1963—Pars. (7) to (14).
1958—
Statutory Notes and Related Subsidiaries
Effective Date of 2015 Amendment
Amendment by
Effective Date of 1982 Amendment
Amendment by
Effective Date of 1978 Amendment
Amendment by
Effective Date of 1976 Amendment
For effective date of amendment by section 1601(f)(1) of
Amendment by section 1901(b)(36)(B) of
Amendment by section 1906(a)(28) of
Effective Date of 1963 Amendment
Amendment by
Effective Date of 1958 Amendment
Amendment by
Savings Provision
For provisions that nothing in amendment by
§6423. Conditions to allowance in the case of alcohol and tobacco taxes
(a) Conditions
No credit or refund shall be allowed or made, in pursuance of a court decision or otherwise, of any amount paid or collected as an alcohol or tobacco tax unless the claimant establishes (under regulations prescribed by the Secretary)—
(1) that he bore the ultimate burden of the amount claimed; or
(2) that he has unconditionally repaid the amount claimed to the person who bore the ultimate burden of such amount; or
(3) that (A) the owner of the commodity furnished him the amount claimed for payment of the tax, (B) he has filed with the Secretary the written consent of such owner to the allowance to the claimant of the credit or refund, and (C) such owner satisfies the requirements of paragraph (1) or (2).
(b) Filing of claims
No credit or refund of any amount to which subsection (a) applies shall be allowed or made unless a claim therefor has been filed by the person who paid the amount claimed, and unless such claim is filed within the time prescribed by law and in accordance with regulations prescribed by the Secretary. All evidence relied upon in support of such claim shall be clearly set forth and submitted with the claim.
(c) Application of section
This section shall apply only if the credit or refund is claimed on the grounds that an amount of alcohol or tobacco tax was assessed or collected erroneously, illegally, without authority, or in any manner wrongfully, or on the grounds that such amount was excessive. This section shall not apply to—
(1) any claim for drawback, and
(2) any claim made in accordance with any law expressly providing for credit or refund where a commodity is withdrawn from the market, returned to bond, or lost or destroyed.
(d) Meaning of terms
For purposes of this section—
(1) Alcohol or tobacco tax
The term "alcohol or tobacco tax" means—
(A) any tax imposed by
(B) in the case of any commodity of a kind subject to a tax described in subparagraph (A), any tax equal to any such tax, any additional tax, or any floor stocks tax.
(2) Tax
The term "tax" includes a tax and an exaction denominated a "tax", and any penalty, addition to tax, additional amount, or interest applicable to any such tax.
(3) Ultimate burden
The claimant shall be treated as having borne the ultimate burden of an amount of an alcohol or tobacco tax for purposes of subsection (a)(1), and the owner referred to in subsection (a)(3) shall be treated as having borne such burden for purposes of such subsection, only if—
(A) he has not, directly or indirectly, been relieved of such burden or shifted such burden to any other person,
(B) no understanding or agreement exists for any such relief or shifting, and
(C) if he has neither sold nor contracted to sell the commodities involved in such claim, he agrees that there will be no such relief or shifting, and furnishes such bond as the Secretary may require to insure faithful compliance with his agreement.
(Added
Editorial Notes
Amendments
1976—Subsec. (a).
Subsec. (b).
Subsec. (c).
Subsecs. (d), (e).
Statutory Notes and Related Subsidiaries
Effective Date of 1976 Amendment
Amendment by
Effective Date
[§6424. Repealed. Pub. L. 97–424, title V, §515(b)(5), Jan. 6, 1983, 96 Stat. 2181 ]
Section, added
Statutory Notes and Related Subsidiaries
Effective Date of Repeal
Repeal applicable with respect to articles sold after Jan. 6, 1983, see section 515(c) of
§6425. Adjustment of overpayment of estimated income tax by corporation
(a) Application of adjustment
(1) Time for filing
A corporation may, after the close of the taxable year and on or before the 15th day of the fourth month thereafter, and before the day on which it files a return for such taxable year, file an application for an adjustment of an overpayment by it of estimated income tax for such taxable year. An application under this subsection shall not constitute a claim for credit or refund.
(2) Form of application, etc.
An application under this subsection shall be verified in the manner prescribed by section 6065 in the case of a return of the taxpayer, and shall be filed in the manner and form required by regulations prescribed by the Secretary. The application shall set forth—
(A) the estimated income tax paid by the corporation during the taxable year,
(B) the amount which, at the time of filing the application, the corporation estimates as its income tax liability for the taxable year,
(C) the amount of the adjustment, and
(D) such other information for purposes of carrying out the provisions of this section as may be required by such regulations.
(b) Allowance of adjustment
(1) Limited examination of application
Within a period of 45 days from the date on which an application for an adjustment is filed under subsection (a), the Secretary shall make, to the extent he deems practicable in such period, a limited examination of the application to discover omissions and errors therein, and shall determine the amount of the adjustment upon the basis of the application and the examination; except that the Secretary may disallow, without further action, any application which he finds contains material omissions or errors which he deems cannot be corrected within such 45 days.
(2) Adjustment credited or refunded
The Secretary, within the 45-day period referred to in paragraph (1), may credit the amount of the adjustment against any liability in respect of an internal revenue tax on the part of the corporation and shall refund the remainder to the corporation.
(3) Limitation
No application under this section shall be allowed unless the amount of the adjustment equals or exceeds (A) 10 percent of the amount estimated by the corporation on its application as its income tax liability for the taxable year, and (B) $500.
(4) Effect of adjustment
For purposes of this title (other than section 6655), any adjustment under this section shall be treated as a reduction, in the estimated income tax paid, made on the day the credit is allowed or the refund is paid.
(c) Definitions
For purposes of this section and section 6655(h) (relating to excessive adjustment)—
(1) The term "income tax liability" means the excess of—
(A) the sum of—
(i) the tax imposed by section 11 or subchapter L of
(ii) the tax imposed by section 55, plus
(iii) the tax imposed by section 59A, over
(B) the credits against tax provided by part IV of subchapter A of
(2) The amount of an adjustment under this section is equal to the excess of—
(A) the estimated income tax paid by the corporation during the taxable year, over
(B) the amount which, at the time of filing the application, the corporation estimates as its income tax liability for the taxable year.
(d) Consolidated returns
If the corporation seeking an adjustment under this section paid its estimated income tax on a consolidated basis or expects to make a consolidated return for the taxable year, this section shall apply only to such extent and subject to such conditions, limitations, and exceptions as the Secretary may by regulations prescribe.
(Added
Editorial Notes
Amendments
2022—Subsec. (c)(1)(A).
"(A) the sum of—
"(i) the tax imposed by section 11, or subchapter L of
"(ii) the tax imposed by section 59A, over".
2018—Subsec. (c)(1)(A).
2017—Subsec. (c)(1)(A).
"(i) the tax imposed by section 11 or 1201(a), or subchapter L of
"(ii) the tax imposed by section 55, over".
2015—Subsec. (a)(1).
2014—Subsec. (c)(1)(A).
1987—Subsec. (c).
1986—Subsec. (c)(1)(A).
1976—Subsecs. (a), (b), (d).
Statutory Notes and Related Subsidiaries
Effective Date of 2022 Amendment
Amendment by
Effective Date of 2017 Amendment
Amendment by section 12001(b)(17) of
Amendment by section 13001(b)(2)(P) of
Amendment by section 14401(d)(3) of
Effective Date of 2015 Amendment
Amendment by
Effective Date of 2014 Amendment
Amendment by
Effective Date of 1987 Amendment
Amendment by
Effective Date of 1986 Amendments
Amendment by
Amendment by
Effective Date
Section applicable with respect to taxable years beginning after Dec. 31, 1967, except as provided by section 104 of
Applicability of Certain Amendments by Pub. L. 99–514 in Relation to Treaty Obligations of United States
For applicability of amendment by
§6426. Credit for alcohol fuel, biodiesel, and alternative fuel mixtures
(a) Allowance of credits
There shall be allowed as a credit—
(1) against the tax imposed by section 4081 an amount equal to the sum of the credits described in subsections (b), (c), (e), and (k), and
(2) against the tax imposed by section 4041 an amount equal to the sum of the credits described in subsection (d).
No credit shall be allowed in the case of the credits described in subsections (d) and (e) unless the taxpayer is registered under section 4101.
(b) Alcohol fuel mixture credit
(1) In general
For purposes of this section, the alcohol fuel mixture credit is the product of the applicable amount and the number of gallons of alcohol used by the taxpayer in producing any alcohol fuel mixture for sale or use in a trade or business of the taxpayer.
(2) Applicable amount
For purposes of this subsection—
(A) In general
Except as provided in subparagraphs (B) and (C), the applicable amount is—
(i) in the case of calendar years beginning before 2009, 51 cents, and
(ii) in the case of calendar years beginning after 2008, 45 cents.
(B) Mixtures not containing ethanol
In the case of an alcohol fuel mixture in which none of the alcohol consists of ethanol, the applicable amount is 60 cents.
(C) Reduction delayed until annual production or importation of 7,500,000,000 gallons
In the case of any calendar year beginning after 2008, if the Secretary makes a determination described in section 40(h)(3)(B) with respect to all preceding calendar years beginning after 2007, subparagraph (A)(ii) shall be applied by substituting "51 cents" for "45 cents".
(3) Alcohol fuel mixture
For purposes of this subsection, the term "alcohol fuel mixture" means a mixture of alcohol and a taxable fuel which—
(A) is sold by the taxpayer producing such mixture to any person for use as a fuel, or
(B) is used as a fuel by the taxpayer producing such mixture.
For purposes of subparagraph (A), a mixture produced by any person at a refinery prior to a taxable event which includes ethyl tertiary butyl ether or other ethers produced from alcohol shall be treated as sold at the time of its removal from the refinery (and only at such time) to another person for use as a fuel.
(4) Other definitions
For purposes of this subsection—
(A) Alcohol
The term "alcohol" includes methanol and ethanol but does not include—
(i) alcohol produced from petroleum, natural gas, or coal (including peat), or
(ii) alcohol with a proof of less than 190 (determined without regard to any added denaturants).
Such term also includes an alcohol gallon equivalent of ethyl tertiary butyl ether or other ethers produced from such alcohol.
(B) Taxable fuel
The term "taxable fuel" has the meaning given such term by section 4083(a)(1).
(5) Volume of alcohol
For purposes of determining under subsection (a) the number of gallons of alcohol with respect to which a credit is allowable under subsection (a), the volume of alcohol shall include the volume of any denaturant (including gasoline) which is added under any formulas approved by the Secretary to the extent that such denaturants do not exceed 2 percent of the volume of such alcohol (including denaturants).
(6) Termination
This subsection shall not apply to any sale, use, or removal for any period after December 31, 2011.
(c) Biodiesel mixture credit
(1) In general
For purposes of this section, the biodiesel mixture credit is the product of the applicable amount and the number of gallons of biodiesel used by the taxpayer in producing any biodiesel mixture for sale or use in a trade or business of the taxpayer.
(2) Applicable amount
For purposes of this subsection, the applicable amount is $1.00.
(3) Biodiesel mixture
For purposes of this section, the term "biodiesel mixture" means a mixture of biodiesel and diesel fuel (as defined in section 4083(a)(3)), determined without regard to any use of kerosene, which—
(A) is sold by the taxpayer producing such mixture to any person for use as a fuel, or
(B) is used as a fuel by the taxpayer producing such mixture.
(4) Certification for biodiesel
No credit shall be allowed under this subsection unless the taxpayer obtains a certification (in such form and manner as prescribed by the Secretary) from the producer of the biodiesel which identifies the product produced and the percentage of biodiesel and agri-biodiesel in the product.
(5) Other definitions
Any term used in this subsection which is also used in section 40A shall have the meaning given such term by section 40A.
(6) Termination
This subsection shall not apply to any sale, use, or removal for any period after December 31, 2024.
(d) Alternative fuel credit
(1) In general
For purposes of this section, the alternative fuel credit is the product of 50 cents and the number of gallons of an alternative fuel or gasoline gallon equivalents of a nonliquid alternative fuel sold by the taxpayer for use as a fuel in a motor vehicle or motorboat, sold by the taxpayer for use as a fuel in aviation, or so used by the taxpayer.
(2) Alternative fuel
For purposes of this section, the term "alternative fuel" means—
(A) liquefied petroleum gas,
(B) P Series Fuels (as defined by the Secretary of Energy under
(C) compressed or liquefied natural gas,
(D) any liquid fuel which meets the requirements of paragraph (4) and which is derived from coal (including peat) through the Fischer-Tropsch process,
(E) compressed or liquefied gas derived from biomass (as defined in section 45K(c)(3)), and
(F) liquid fuel derived from biomass (as defined in section 45K(c)(3)).
Such term does not include ethanol, methanol, biodiesel, or any fuel (including lignin, wood residues, or spent pulping liquors) derived from the production of paper or pulp.
(3) Gasoline gallon equivalent
For purposes of this subsection, the term "gasoline gallon equivalent" means, with respect to any nonliquid alternative fuel, the amount of such fuel having a Btu content of 124,800 (higher heating value).
(4) Carbon capture requirement
(A) In general
The requirements of this paragraph are met if the fuel is certified, under such procedures as required by the Secretary, as having been derived from coal produced at a gasification facility which separates and sequesters not less than the applicable percentage of such facility's total carbon dioxide emissions.
(B) Applicable percentage
For purposes of subparagraph (A), the applicable percentage is—
(i) 50 percent in the case of fuel produced after September 30, 2009, and on or before December 30, 2009, and
(ii) 75 percent in the case of fuel produced after December 30, 2009.
(5) Termination
This subsection shall not apply to any sale or use for any period after December 31, 2024.
(e) Alternative fuel mixture credit
(1) In general
For purposes of this section, the alternative fuel mixture credit is the product of 50 cents and the number of gallons of alternative fuel used by the taxpayer in producing any alternative fuel mixture for sale or use in a trade or business of the taxpayer.
(2) Alternative fuel mixture
For purposes of this section, the term "alternative fuel mixture" means a mixture of alternative fuel (other than a fuel described in subparagraph (A), (C), or (E) of subsection (d)(2)) and taxable fuel (as defined in subparagraph (A), (B), or (C) of section 4083(a)(1)) which—
(A) is sold by the taxpayer producing such mixture to any person for use as fuel, or
(B) is used as a fuel by the taxpayer producing such mixture.
(3) Termination
This subsection shall not apply to any sale or use for any period after December 31, 2024.
(f) Mixture not used as a fuel, etc.
(1) Imposition of tax
If—
(A) any credit was determined under this section with respect to alcohol or biodiesel used in the production of any alcohol fuel mixture or biodiesel mixture, respectively, and
(B) any person—
(i) separates the alcohol or biodiesel from the mixture, or
(ii) without separation, uses the mixture other than as a fuel,
then there is hereby imposed on such person a tax equal to the product of the applicable amount and the number of gallons of such alcohol or biodiesel.
(2) Applicable laws
All provisions of law, including penalties, shall, insofar as applicable and not inconsistent with this section, apply in respect of any tax imposed under paragraph (1) as if such tax were imposed by section 4081 and not by this section.
(g) Coordination with exemption from excise tax
Rules similar to the rules under section 40(c) shall apply for purposes of this section.
(h) Denial of double benefit
No credit shall be determined under subsection (d) or (e) with respect to any fuel with respect to which credit may be determined under subsection (b) or (c) or under section 40, 40A, or 40B.
(i) Limitation to fuels with connection to the United States
(1) Alcohol
No credit shall be determined under this section with respect to any alcohol which is produced outside the United States for use as a fuel outside the United States.
(2) Biodiesel and alternative fuels
No credit shall be determined under this section with respect to any biodiesel or alternative fuel which is produced outside the United States for use as a fuel outside the United States.
For purposes of this subsection, the term "United States" includes any possession of the United States.
(j) Energy equivalency determinations for liquefied petroleum gas and liquefied natural gas
For purposes of determining any credit under this section, any reference to the number of gallons of an alternative fuel or the gasoline gallon equivalent of such a fuel shall be treated as a reference to—
(1) in the case of liquefied petroleum gas, the energy equivalent of a gallon of gasoline, as defined in section 4041(a)(2)(C), and
(2) in the case of liquefied natural gas, the energy equivalent of a gallon of diesel, as defined in section 4041(a)(2)(D).
(k) Sustainable aviation fuel credit
(1) In general
For purposes of this section, the sustainable aviation fuel credit for the taxable year is, with respect to any sale or use of a qualified mixture, an amount equal to the product of—
(A) the number of gallons of sustainable aviation fuel in such mixture, multiplied by
(B) the sum of—
(i) $1.25, plus
(ii) the applicable supplementary amount with respect to such sustainable aviation fuel.
(2) Definitions
Any term used in this subsection which is also used in section 40B shall have the meaning given such term by section 40B.
(3) Registration requirement
For purposes of this subsection, rules similar to the rules of section 40B(f) shall apply.
(Added
Editorial Notes
Codification
Prior Provisions
A prior section 6426, added
Amendments
2022—Subsec. (a)(1).
Subsec. (c)(6).
Subsec. (d)(2)(D) to (G).
Subsec. (d)(5).
Subsec. (e)(2).
Subsec. (e)(3).
Subsec. (h).
Subsec. (k).
2020—Subsecs. (d)(5), (e)(3).
2019—Subsec. (c)(6).
Subsec. (d)(5).
Subsec. (e)(2).
Subsec. (e)(3).
2018—Subsec. (b)(2)(A)(ii).
Subsec. (c)(6).
Subsecs. (d)(5), (e)(3).
2015—Subsec. (c)(6).
Subsecs. (d)(5), (e)(3).
Subsec. (j).
2014—Subsec. (c)(6).
Subsecs. (d)(5), (e)(3).
2013—Subsec. (c)(6).
Subsecs. (d)(5), (e)(3).
2010—Subsec. (b)(6).
Subsec. (c)(6).
Subsec. (d)(2).
Subsecs. (d)(5), (e)(3).
2008—Subsec. (b)(2)(A).
Subsec. (b)(2)(C).
Subsec. (b)(5), (6).
Subsec. (c)(2).
"(A)
"(B)
Subsec. (c)(6).
Subsec. (d)(1).
Subsec. (d)(2)(E).
Subsec. (d)(2)(F), (G).
Subsec. (d)(4).
Subsec. (d)(5).
Subsec. (e)(3).
Subsec. (i).
2007—Subsec. (d)(2)(F).
Subsec. (h).
2005—
Subsec. (a).
"(1) the alcohol fuel mixture credit, plus
"(2) the biodiesel mixture credit."
Subsec. (c)(6).
Subsec. (d).
Subsec. (d)(2)(F).
Subsecs. (e) to (g).
Statutory Notes and Related Subsidiaries
Effective Date of 2022 Amendment
Amendment by section 13201(b)(1), (c), (d) of
Amendment by section 13203(d)(1), (2)(A) of
Effective Date of 2020 Amendment
Effective Date of 2019 Amendment
"(A) fuel sold or used on or after the date of the enactment of this Act [Dec. 20, 2019], and
"(B) fuel sold or used before such date of enactment, but only to the extent that claims for the credit under section 6426(e) of the Internal Revenue Code of 1986 with respect to such sale or use—
"(i) have not been paid or allowed as of such date, and
"(ii) were made on or after January 8, 2018."
Effective Date of 2018 Amendment
Effective Date of 2015 Amendment
Effective Date of 2014 Amendment
"(1)
"(2)
Effective Date of 2013 Amendment
Amendment by section 405(b)(1) of
Effective Date of 2010 Amendment
Amendment by section 701(b)(1) of
Effective Date of 2008 Amendment
Amendment by section 202(a), (b)(2) of
Amendment by section 203(c)(1) of
Amendment of this section and repeal of
Amendment by section 15331(b) of
Amendment by section 15332(b) of
Effective Date of 2007 Amendment
Effective Date of 2005 Amendment
Amendment by section 11113(b)(1)–(3)(A) of
Amendment by section 11151(e)(2) of
Effective Date
Section applicable to fuel sold or used after Dec. 31, 2004, see section 301(d)(1) of
Special Rule for 2022
Special Rules for 2018 and 2019
No Inference
Special Rules for 2017
Special Rules for 2015
Special Rule for Certain Periods During 2014
"(1) any biodiesel mixture credit properly determined under section 6426(c) of the Internal Revenue Code of 1986 for periods after December 31, 2013, and before the date of the enactment of this Act [Dec. 19, 2014], and
"(2) any alternative fuel credit properly determined under section 6426(d) of such Code for such periods,
such credit shall be allowed, and any refund or payment attributable to such credit (including any payment under section 6427(e) of such Code) shall be made, only in such manner as the Secretary of the Treasury (or the Secretary's delegate) shall provide. Such Secretary shall issue guidance within 30 days after the date of the enactment of this Act [Dec. 19, 2014] providing for a one-time submission of claims covering periods described in the preceding sentence. Such guidance shall provide for a 180-day period for the submission of such claims (in such manner as prescribed by such Secretary) to begin not later than 30 days after such guidance is issued. Such claims shall be paid by such Secretary not later than 60 days after receipt. If such Secretary has not paid pursuant to a claim filed under this subsection within 60 days after the date of the filing of such claim, the claim shall be paid with interest from such date determined by using the overpayment rate and method under section 6621 of such Code."
Special Rules for 2010
§6427. Fuels not used for taxable purposes
(a) Nontaxable uses
Except as provided in subsection (k), if tax has been imposed under paragraph (2) or (3) of section 4041(a) or section 4041(c) on the sale of any fuel and the purchaser uses such fuel other than for the use for which sold, or resells such fuel, the Secretary shall pay (without interest) to him an amount equal to—
(1) the amount of tax imposed on the sale of the fuel to him, reduced by
(2) if he uses the fuel, the amount of tax which would have been imposed under section 4041 on such use if no tax under section 4041 had been imposed on the sale of the fuel.
(b) Intercity, local, or school buses
(1) Allowance
Except as otherwise provided in this subsection and subsection (k), if any fuel other than gasoline (as defined in section 4083(a)) on the sale of which tax was imposed by section 4041(a) or 4081 is used in an automobile bus while engaged in—
(A) furnishing (for compensation) passenger land transportation available to the general public, or
(B) the transportation of students and employees of schools (as defined in the last sentence of section 4221(d)(7)(C)),
the Secretary shall pay (without interest) to the ultimate purchaser of such fuel an amount equal to the product of the number of gallons of such fuel so used multiplied by the rate at which tax was imposed on such fuel by section 4041(a) or 4081, as the case may be.
(2) Reduction in refund in certain cases
(A) In general
Except as provided in subparagraphs (B) and (C), the rate of tax taken into account under paragraph (1) shall be 7.4 cents per gallon less than the aggregate rate at which tax was imposed on such fuel by section 4041(a) or 4081, as the case may be.
(B) Exception for school bus transportation
Subparagraph (A) shall not apply to fuel used in an automobile bus while engaged in the transportation described in paragraph (1)(B).
(C) Exception for certain intracity transportation
Subparagraph (A) shall not apply to fuel used in any automobile bus while engaged in furnishing (for compensation) intracity passenger land transportation—
(i) which is available to the general public, and
(ii) which is scheduled and along regular routes,
but only if such bus is a qualified local bus.
(D) Qualified local bus
For purposes of this paragraph, the term "qualified local bus" means any local bus—
(i) which has a seating capacity of at least 20 adults (not including the driver), and
(ii) which is under contract (or is receiving more than a nominal subsidy) from any State or local government (as defined in section 4221(d)) to furnish such transportation.
(3) Limitation in case of nonscheduled intercity or local buses
Paragraph (1)(A) shall not apply in respect of fuel used in any automobile bus while engaged in furnishing transportation which is not scheduled and not along regular routes unless the seating capacity of such bus is at least 20 adults (not including the driver).
(4) Refunds for use of diesel fuel in certain intercity buses
With respect to any fuel to which paragraph (2)(A) applies, if the ultimate purchaser of such fuel waives (at such time and in such form and manner as the Secretary shall prescribe) the right to payment under paragraph (1) and assigns such right to the ultimate vendor, then the Secretary shall pay the amount which would be paid under paragraph (1) to such ultimate vendor, but only if such ultimate vendor—
(A) is registered under section 4101, and
(B) meets the requirements of subparagraph (A), (B), or (D) of section 6416(a)(1).
(c) Use for farming purposes
Except as provided in subsection (k), if any fuel on the sale of which tax was imposed under paragraph (2) or (3) of section 4041(a) or section 4041(c) is used on a farm for farming purposes (within the meaning of section 6420(c)), the Secretary shall pay (without interest) to the purchaser an amount equal to the amount of the tax imposed on the sale of the fuel. For purposes of this subsection, if fuel is used on a farm by any person other than the owner, tenant, or operator of such farm, the rules of paragraph (4) of section 6420(c) shall be applied (except that "liquid taxable under section 4041" shall be substituted for "gasoline" each place it appears in such paragraph (4)).
(d) Use by certain aircraft museums or in certain other aircraft uses
Except as provided in subsection (k), if—
(1) any gasoline on which tax was imposed by section 4081, or
(2) any fuel on the sale of which tax was imposed under section 4041,
is used by an aircraft museum (as defined in section 4041(h)(2)) in an aircraft or vehicle owned by such museum and used exclusively for purposes set forth in section 4041(h)(2)(C), or is used in a helicopter or a fixed-wing aircraft for a purpose described in section 4041(l), the Secretary shall pay (without interest) to the ultimate purchaser of such gasoline or fuel an amount equal to the aggregate amount of the tax imposed on such gasoline or fuel.
(e) Alcohol, biodiesel, alternative fuel, or sustainable aviation fuel
Except as provided in subsection (k)—
(1) Used to produce a mixture
If any person produces a mixture described in section 6426 in such person's trade or business, the Secretary shall pay (without interest) to such person an amount equal to the alcohol fuel mixture credit or the biodiesel mixture credit or the alternative fuel mixture credit or the sustainable aviation fuel mixture credit with respect to such mixture.
(2) Alternative fuel
If any person sells or uses an alternative fuel (as defined in section 6426(d)(2)) for a purpose described in section 6426(d)(1) in such person's trade or business, the Secretary shall pay (without interest) to such person an amount equal to the alternative fuel credit with respect to such fuel.
(3) Coordination with other repayment provisions
No amount shall be payable under paragraph (1) or (2) with respect to any mixture or alternative fuel with respect to which an amount is allowed as a credit under section 6426.
(4) Registration requirement for alternative fuels
The Secretary shall not make any payment under this subsection to any person with respect to any alternative fuel credit or alternative fuel mixture credit unless the person is registered under section 4101.
(5) Limitation to fuels with connection to the United States
No amount shall be payable under paragraph (1) or (2) with respect to any mixture or alternative fuel if credit is not allowed with respect to such mixture or alternative fuel by reason of section 6426(i).
(6) Termination
This subsection shall not apply with respect to—
(A) any alcohol fuel mixture (as defined in section 6426(b)(3)) sold or used after December 31, 2011,
(B) any biodiesel mixture (as defined in section 6426(c)(3)) sold or used after December 31, 2024,
(C) any alternative fuel (as defined in section 6426(d)(2)) sold or used after December 31, 2024,
(D) any alternative fuel mixture (as defined in section 6426(e)(2)) sold or used after December 31, 2011, and
(E) any qualified mixture of sustainable aviation fuel (as defined in section 6426(k)(3)) 1 sold or used after December 31, 2024.
[(f) Repealed. Pub. L. 109–59, title XI, §11151(a)(1), Aug. 10, 2005, 119 Stat. 1968 ]
[(g) Repealed. Pub. L. 104–188, title I, §1606(a), Aug. 20, 1996, 110 Stat. 1839 ]
(h) Blend stocks not used for producing taxable fuel
(1) Gasoline blend stocks or additives not used for producing gasoline
Except as provided in subsection (k), if any gasoline blend stock or additive (within the meaning of section 4083(a)(2)) is not used by any person to produce gasoline and such person establishes that the ultimate use of such gasoline blend stock or additive is not to produce gasoline, the Secretary shall pay (without interest) to such person an amount equal to the aggregate amount of the tax imposed on such person with respect to such gasoline blend stock or additive.
(2) Diesel fuel blend stocks or additives not used for producing diesel
Except as provided in subsection (k), if any diesel fuel blend stock is not used by any person to produce diesel fuel and such person establishes that the ultimate use of such diesel fuel blend stock is not to produce diesel fuel, the Secretary shall pay (without interest) to such person an amount equal to the aggregate amount of the tax imposed on such person with respect to such diesel fuel blend stock.
(i) Time for filing claims; period covered
(1) General rule
Except as otherwise provided in this subsection, not more than one claim may be filed under subsection (a), (b), (c), (d), (h), (l), (m), or (o) by any person with respect to fuel used during his taxable year; and no claim shall be allowed under this paragraph with respect to fuel used during any taxable year unless filed by the purchaser not later than the time prescribed by law for filing a claim for credit or refund of overpayment of income tax for such taxable year. For purposes of this paragraph, a person's taxable year shall be his taxable year for purposes of subtitle A.
(2) Exceptions
(A) In general
If, at the close of any quarter of the taxable year of any person, at least $750 is payable in the aggregate under subsections (a), (b), (d), (h), (l), (m), and (o) of this section and section 6421 to such person with respect to fuel used during—
(i) such quarter, or
(ii) any prior quarter (for which no other claim has been filed) during such taxable year,
a claim may be filed under this section with respect to such fuel.
(B) Time for filing claim
No claim filed under this paragraph shall be allowed unless filed during the first quarter following the last quarter included in the claim.
(C) Nonapplication of paragraph
This paragraph shall not apply to any fuel used solely in any off-highway business use described in section 6421(e)(2)(C).
(3) Special rule for mixture credits and the alternative fuel credit
(A) In general
A claim may be filed under subsection (e)(1) by any person with respect to a mixture described in section 6426 or under subsection (e)(2) by any person with respect to an alternative fuel (as defined in section 6426(d)(2)) for any period—
(i) for which $200 or more is payable under such subsection (e)(1) or (e)(2), and
(ii) which is not less than 1 week.
In the case of an electronic claim, this subparagraph shall be applied without regard to clause (i).
(B) Payment of claim
Notwithstanding subsection (e)(1) or (e)(2), if the Secretary has not paid pursuant to a claim filed under this section within 45 days of the date of the filing of such claim (20 days in the case of an electronic claim), the claim shall be paid with interest from such date determined by using the overpayment rate and method under section 6621.
(C) Time for filing claim
No claim filed under this paragraph shall be allowed unless filed on or before the last day of the first quarter following the earliest quarter included in the claim.
(4) Special rule for vendor refunds
(A) In general
A claim may be filed under paragraph (4)(C) or (5) of subsection (l) by any person with respect to fuel sold by such person for any period—
(i) for which $200 or more ($100 or more in the case of kerosene) is payable under paragraph (4)(C) or (5) of subsection (l), and
(ii) which is not less than 1 week.
Notwithstanding subsection (l)(1), paragraph (3)(B) shall apply to claims filed under subsections (b)(4), (l)(4)(C)(ii), and (l)(5).
(B) Time for filing claim
No claim filed under this paragraph shall be allowed unless filed on or before the last day of the first quarter following the earliest quarter included in the claim.
(j) Applicable laws
(1) In general
All provisions of law, including penalties, applicable in respect of the taxes imposed by sections 4041 and 4081 shall, insofar as applicable and not inconsistent with this section, apply in respect of the payments provided for in this section to the same extent as if such payments constituted refunds of overpayments of the tax so imposed.
(2) Examination of books and witnesses
For the purpose of ascertaining the correctness of any claim made under this section, or the correctness of any payment made in respect of any such claim, the Secretary shall have the authority granted by paragraphs (1), (2), and (3) of section 7602(a) (relating to examination of books and witnesses) as if the claimant were the person liable for tax.
(k) Income tax credit in lieu of payment
(1) Persons not subject to income tax
Payment shall be made under this section only to—
(A) the United States or an agency or instrumentality thereof, a State, a political subdivision of a State, or any agency or instrumentality of one or more States or political subdivisions, or
(B) an organization exempt from tax under section 501(a) (other than an organization required to make a return of the tax imposed under subtitle A for its taxable year).
(2) Exception
Paragraph (1) shall not apply to a payment of a claim filed under paragraph (2), (3), or (4) of subsection (i).
(3) Allowance of credit against income tax
For allowances of credit against the income tax imposed by subtitle A for fuel used or resold by the purchaser, see section 34.
(l) Nontaxable uses of diesel fuel and kerosene
(1) In general
Except as otherwise provided in this subsection and in subsection (k), if any diesel fuel or kerosene on which tax has been imposed by section 4041 or 4081 is used by any person in a nontaxable use, the Secretary shall pay (without interest) to the ultimate purchaser of such fuel an amount equal to the aggregate amount of tax imposed on such fuel under section 4041 or 4081, as the case may be, reduced by any payment made to the ultimate vendor under paragraph (4)(C)(i).
(2) Nontaxable use
For purposes of this subsection, the term "nontaxable use" means any use which is exempt from the tax imposed by section 4041(a)(1) other than by reason of a prior imposition of tax.
(3) Refund of certain taxes on fuel used in diesel-powered trains
For purposes of this subsection, the term "nontaxable use" includes fuel used in a diesel-powered train. The preceding sentence shall not apply with respect to—
(A) the Leaking Underground Storage Tank Trust Fund financing rate under sections 4041 and 4081, and
(B) so much of the rate specified in section 4081(a)(2)(A) as does not exceed the rate applicable under section 4041(a)(1)(C)(ii).
The preceding sentence shall not apply in the case of fuel sold for exclusive use by a State or any political subdivision thereof.
(4) Refunds for kerosene used in aviation
(A) Kerosene used in commercial aviation
In the case of kerosene used in commercial aviation (as defined in section 4083(b)) (other than supplies for vessels or aircraft within the meaning of section 4221(d)(3)), paragraph (1) shall not apply to so much of the tax imposed by section 4041 or 4081, as the case may be, as is attributable to—
(i) the Leaking Underground Storage Tank Trust Fund financing rate imposed by such section, and
(ii) so much of the rate of tax specified in section 4041(c) or 4081(a)(2)(A)(iii), as the case may be, as does not exceed 4.3 cents per gallon.
(B) Kerosene used in noncommercial aviation
In the case of kerosene used in aviation that is not commercial aviation (as so defined) (other than any use which is exempt from the tax imposed by section 4041(c) other than by reason of a prior imposition of tax), paragraph (1) shall not apply to—
(i) any tax imposed by subsection (c) or (d)(2) of section 4041, and
(ii) so much of the tax imposed by section 4081 as is attributable to—
(I) the Leaking Underground Storage Tank Trust Fund financing rate imposed by such section, and
(II) so much of the rate of tax specified in section 4081(a)(2)(A)(iii) as does not exceed the rate specified in section 4081(a)(2)(C)(ii).
(C) Payments to ultimate, registered vendor
(i) In general
With respect to any kerosene used in aviation (other than kerosene described in clause (ii) or kerosene to which paragraph (5) applies), if the ultimate purchaser of such kerosene waives (at such time and in such form and manner as the Secretary shall prescribe) the right to payment under paragraph (1) and assigns such right to the ultimate vendor, then the Secretary shall pay the amount which would be paid under paragraph (1) to such ultimate vendor, but only if such ultimate vendor—
(I) is registered under section 4101, and
(II) meets the requirements of subparagraph (A), (B), or (D) of section 6416(a)(1).
(ii) Payments for kerosene used in noncommercial aviation
The amount which would be paid under paragraph (1) with respect to any kerosene to which subparagraph (B) applies shall be paid only to the ultimate vendor of such kerosene. A payment shall be made to such vendor if such vendor—
(I) is registered under section 4101, and
(II) meets the requirements of subparagraph (A), (B), or (D) of section 6416(a)(1).
(5) Registered vendors to administer claims for refund of diesel fuel or kerosene sold to State and local governments
(A) In general
Paragraph (1) shall not apply to diesel fuel or kerosene used by a State or local government.
(B) Sales of kerosene not for use in motor fuel
Paragraph (1) shall not apply to kerosene (other than kerosene used in aviation) sold by a vendor—
(i) for any use if such sale is from a pump which (as determined under regulations prescribed by the Secretary) is not suitable for use in fueling any diesel-powered highway vehicle or train, or
(ii) to the extent provided by the Secretary, for blending with heating oil to be used during periods of extreme or unseasonable cold.
(C) Payment to ultimate, registered vendor
Except as provided in subparagraph (D), the amount which would (but for subparagraph (A) or (B)) have been paid under paragraph (1) with respect to any fuel shall be paid to the ultimate vendor of such fuel, if such vendor—
(i) is registered under section 4101, and
(ii) meets the requirements of subparagraph (A), (B), or (D) of section 6416(a)(1).
(D) Credit card issuer
For purposes of this paragraph, if the purchase of any fuel described in subparagraph (A) (determined without regard to the registration status of the ultimate vendor) is made by means of a credit card issued to the ultimate purchaser, the Secretary shall pay to the person extending the credit to the ultimate purchaser the amount which would have been paid under paragraph (1) (but for subparagraph (A)), but only if such person meets the requirements of clauses (i), (ii), and (iii) of section 6416(a)(4)(B). If such clause (i), (ii), or (iii) is not met by such person extending the credit to the ultimate purchaser, then such person shall collect an amount equal to the tax from the ultimate purchaser and only such ultimate purchaser may claim such amount.
(m) Diesel fuel used to produce emulsion
(1) In general
Except as provided in subsection (k), if any diesel fuel on which tax was imposed by section 4081 at the regular tax rate is used by any person in producing an emulsion described in section 4081(a)(2)(D) which is sold or used in such person's trade or business, the Secretary shall pay (without interest) to such person an amount equal to the excess of the regular tax rate over the incentive tax rate with respect to such fuel.
(2) Definitions
For purposes of paragraph (1)—
(A) Regular tax rate
The term "regular tax rate" means the aggregate rate of tax imposed by section 4081 determined without regard to section 4081(a)(2)(D).
(B) Incentive tax rate
The term "incentive tax rate" means the aggregate rate of tax imposed by section 4081 determined with regard to section 4081(a)(2)(D).
(n) Regulations
The Secretary may by regulations prescribe the conditions, not inconsistent with the provisions of this section, under which payments may be made under this section.
(o) Payments for taxes imposed by section 4041(d)
For purposes of subsections (a), (b), and (c), the taxes imposed by section 4041(d) shall be treated as imposed by section 4041(a).
(p) Cross references
(1) For civil penalty for excessive claims under this section, see section 6675.
(2) For fraud penalties, etc., see
(3) For treatment of an Indian tribal government as a State (and a subdivision of an Indian tribal government as a political subdivision of a State), see section 7871.
(Added
Editorial Notes
References in Text
Section 6426(k)(3), referred to in subsec. (e)(6)(E), probably should be a reference to
Section 4081(c), referred to in subsec. (f)(1), was repealed by
Section 4091, referred to in subsec. (f)(1), (2)(A)(ii), (B)(ii), was repealed by
Amendments
2022—Subsec. (e).
Subsec. (e)(1).
Subsec. (e)(6)(B).
Subsec. (e)(6)(C).
Subsec. (e)(6)(E).
2020—Subsec. (e)(6)(C).
2019—Subsec. (e)(6)(B).
Subsec. (e)(6)(C).
2018—Subsec. (e)(6)(B).
Subsec. (e)(6)(C).
2015—Subsec. (e)(6)(B).
Subsec. (e)(6)(C).
2014—Subsec. (e)(6)(B).
Subsec. (e)(6)(C).
Subsec. (e)(6)(D), (E).
2013—Subsec. (e)(6)(B).
Subsec. (e)(6)(C).
Subsec. (e)(6)(D).
Subsec. (e)(6)(E).
2010—Subsec. (e)(6)(A).
Subsec. (e)(6)(B).
Subsec. (e)(6)(C).
2008—Subsec. (e)(5).
Subsec. (e)(5)(B).
Subsec. (e)(6).
Subsec. (e)(6)(C).
2007—Subsec. (e)(3).
Subsec. (e)(5).
Subsec. (e)(5)(B).
Subsec. (i)(3).
Subsec. (i)(3)(A).
Subsec. (i)(3)(A)(i), (B).
Subsec. (l)(4)(A)(ii).
Subsecs. (p), (q).
"(1) any tax is imposed by section 4081 at a rate determined under subsection (c) thereof on gasohol (as defined in such subsection), and
"(2) such gasohol is used as a fuel in any aircraft in noncommercial aviation (as defined in section 4041(c)(2),
the Secretary shall pay (without interest) to the ultimate purchaser of such gasohol an amount equal to 1.4 cents (2 cents in the case of a mixture none of the alcohol in which consists of ethanol) multiplied by the number of gallons of gasohol so used."
2006—Subsec. (i)(4)(A).
Subsec. (l)(1).
Subsec. (l)(4).
Subsec. (l)(5), (6).
2005—Subsec. (e).
Subsec. (e)(1).
Subsec. (e)(2).
Subsec. (e)(3).
Subsec. (e)(4).
Subsec. (e)(4)(B).
Subsec. (e)(5).
Subsec. (e)(5)(C), (D).
Subsec. (f).
Subsec. (i)(1), (2)(A).
Subsec. (i)(4)(A).
Subsec. (l).
Subsec. (l)(2).
"(A) in the case of diesel fuel or kerosene, any use which is exempt from the tax imposed by section 4041(a)(1) other than by reason of a prior imposition of tax, and
"(B) in the case of aviation-grade kerosene—
"(i) any use which is exempt from the tax imposed by section 4041(c) other than by reason of a prior imposition of tax, or
"(ii) any use in commercial aviation (within the meaning of section 4083(b))."
Subsec. (l)(4).
Subsec. (l)(4)(A).
Subsec. (l)(4)(A)(ii).
Subsec. (l)(4)(B).
Subsec. (l)(5).
Subsec. (l)(6).
Subsec. (l)(6)(A).
"(i) on a farm for farming purposes (within the meaning of section 6420(c)), or
"(ii) by a State or local government."
Subsec. (l)(6)(B).
Subsec. (l)(6)(C).
Subsec. (l)(6)(D).
Subsecs. (m), (n).
Subsec. (o).
Subsec. (p).
Subsec. (q).
2004—Subsec. (b)(4).
Subsec. (e).
Subsec. (h).
Subsec. (i)(2)(C).
Subsec. (i)(3).
Subsec. (i)(3)(A).
Subsec. (i)(3)(B).
Subsec. (i)(4)(A).
Subsec. (j)(1).
Subsec. (l)(1).
"(A) any diesel fuel or kerosene on which tax has been imposed by section 4041 or 4081, or
"(B) any aviation fuel on which tax has been imposed by section 4091,
is used by any person in a nontaxable use, the Secretary shall pay (without interest) to the ultimate purchaser of such fuel an amount equal to the aggregate amount of tax imposed on such fuel under section 4041, 4081, or 4091, as the case may be."
Subsec. (l)(2)(B).
Subsec. (l)(3)(B).
"(i) 6.8 cents per gallon after September 30, 1993, and before October 1, 1995,
"(ii) 5.55 cents per gallon after September 30, 1995, and before November 1, 1998, and
"(iii) 4.3 cents per gallon after October 31, 1998."
Subsec. (l)(4).
"(A) the Leaking Underground Storage Tank Trust Fund financing rate imposed by such section, and
"(B) in the case of fuel purchased after September 30, 1995, so much of the rate of tax specified in section 4091(b)(1) as does not exceed 4.3 cents per gallon."
Subsec. (l)(5)(B).
1998—Subsec. (d).
Subsec. (f)(3).
Subsec. (f)(4).
Subsec. (i)(1).
Subsec. (i)(2)(A).
Subsec. (i)(2)(B).
Subsec. (i)(4), (5).
"(4)
"(A)
"(B)
Subsec. (k)(2).
Subsec. (l)(3)(B)(ii).
Subsec. (l)(3)(B)(iii).
Subsecs. (m) to (p).
Subsec. (q).
Subsec. (q)(2).
Subsec. (r).
1997—Subsec. (f).
Subsec. (f)(2)(A)(i), (B)(i).
Subsec. (f)(3).
Subsec. (i)(3)(A).
Subsec. (i)(4).
Subsec. (i)(5)(A)(i).
Subsec. (l).
Subsec. (l)(1)(A), (2)(A).
Subsec. (l)(5).
Subsec. (l)(5)(A).
Subsec. (l)(5)(B).
Subsec. (l)(5)(C).
1996—Subsec. (f)(4).
Subsec. (g).
Subsec. (i)(1), (2)(A).
Subsec. (l)(4).
1993—Subsec. (a).
Subsec. (b)(1).
Subsec. (b)(2).
Subsec. (b)(2)(A).
Subsec. (c).
Subsec. (f)(1).
Subsec. (f)(2).
"(A)
"(i) in the case of gasoline, the aggregate rate of tax imposed by section 4081 determined without regard to subsection (c) thereof,
"(ii) in the case of diesel fuel, the aggregate rate of tax imposed by section 4091 on such fuel determined without regard to subsection (c) thereof, and
"(iii) in the case of aviation fuel, the aggregate rate of tax imposed by section 4091 on such fuel determined without regard to subsection (d) thereof.
"(B)
"(i) in the case of gasoline, the aggregate rate of tax imposed by section 4081 with respect to fuel described in subsection (c)(1) thereof,
"(ii) in the case of diesel fuel, the aggregate rate of tax imposed by section 4091 with respect to fuel described in subsection (c)(1)(B) thereof, and
"(iii) in the case of aviation fuel, the aggregate rate of tax imposed by section 4091 with respect to fuel described in subsection (d)(1)(B) thereof."
Subsec. (h).
Subsec. (i)(1).
Subsec. (i)(3).
Subsec. (i)(3)(A).
Subsec. (i)(3)(C).
Subsec. (i)(4).
Subsec. (i)(5).
Subsec. (j)(1).
Subsec. (k)(2).
Subsec. (l).
"(1)
"(2)
"(3)
"(4)
"(3)
"(A) fuel used in a diesel-powered train, and
"(B) fuel used in any aircraft (except as supplies for vessels or aircraft within the meaning of section 4221(d)(3)).
"(4)
Subsec. (l)(5).
Subsec. (m).
"(1) on which tax was imposed under section 4041(c)(2),
"(2) on which tax was not imposed under section 4081, and
"(3) which was not used as an off-highway business use (within the meaning of section 6421(e)(2)),
the amount of the payment under subsection (a) shall be an amount equal to the amount of gasoline used as described in subsection (a) or resold multiplied by the rate equal to the excess of the rate of tax imposed by section 4041(c)(2) over the rate of tax imposed by section 4081."
Subsec. (o).
1991—Subsecs. (g)(5), (o).
1990—Subsec. (b)(2)(A).
Subsec. (e).
Subsec. (f).
Subsec. (g)(5).
Subsec. (i)(1).
Subsec. (i)(2)(A).
"(i) $1,000 or more is payable under subsections (a), (b), (d), (e), (g), (h), and (q), or
"(ii) $50 or more is payable under subsection (e),
to any person with respect to fuel used (or a qualified diesel powered highway vehicle purchased) during any of the first three quarters of his taxable year, a claim may be filed under this section by the purchaser with respect to fuel used (or a qualified diesel powered highway vehicle purchased) during such quarter."
Subsec. (i)(2)(B), (C).
Subsec. (l)(1).
Subsec. (l)(4).
Subsec. (o).
Subsec. (q).
"(1) any tax is imposed by section 4081 on any gasoline,
"(2) such gasoline is used during 1991 as a fuel in any aircraft in noncommercial aviation (as defined in section 4041(c)(4)), and
"(3) no tax is imposed by section 4041(c)(2) on taxable events occurring during 1991 by reason of section 4283,
the Secretary shall pay (without interest) to the ultimate purchaser of such gasoline an amount equal to the excess of the aggregate amount of tax paid under section 4081 on the gasoline so used over an amount equal to 6 cents multiplied by the number of gallons of gasoline so used."
1989—Subsec. (f)(1)(B).
Subsec. (i)(1).
Subsec. (i)(2)(A)(i).
Subsec. (i)(2)(B).
Subsec. (j)(2).
Subsec. (p).
Subsec. (q).
1988—Subsec. (f)(1)(A).
Subsec. (f)(1)(B).
Subsec. (i)(1).
Subsec. (i)(2)(A)(i).
Subsec. (i)(4).
Subsec. (k)(2).
Subsec. (l)(2).
Subsec. (l)(3)(B).
Subsec. (m)(3).
Subsecs. (p), (q).
Subsec. (r).
1987—Subsec. (b)(1).
Subsec. (e)(1)(B).
Subsec. (f).
Subsec. (g)(5).
Subsec. (i)(1).
Subsec. (i)(2)(A)(i).
Subsecs. (l) to (n).
Subsec. (o).
Subsec. (p).
Subsec. (q).
1986—Subsec. (a).
Subsec. (b)(1).
Subsec. (b)(2)(A).
Subsec. (b)(2)(B).
Subsec. (b)(2)(C).
Subsec. (b)(2)(D).
Subsecs. (c), (d), (e)(1).
Subsec. (e)(3).
Subsec. (f)(1).
Subsec. (g)(1).
Subsec. (h).
Subsec. (i).
Subsec. (i)(1).
Subsec. (i)(2)(A).
Subsec. (i)(2)(A)(i).
Subsec. (i)(2)(B).
Subsec. (i)(3).
Subsec. (j).
Subsec. (k).
Subsec. (k)(2).
Subsec. (l).
Subsec. (m).
Subsec. (n).
Subsec. (o).
Subsec. (p).
1984—Subsecs. (a), (b)(1).
Subsec. (b)(2), (3).
Subsecs. (c), (d), (e)(1).
Subsec. (e)(3).
Subsec. (f)(1).
Subsec. (g).
Subsec. (h).
Subsec. (h)(1).
Subsec. (h)(2)(A).
Subsec. (i).
Subsec. (i)(3).
Subsec. (j).
Subsec. (j)(2).
Subsec. (k).
Subsec. (l).
Subsec. (m).
Subsec. (n).
1983—Subsec. (a).
Subsec. (b)(1).
Subsec. (c).
Subsec. (e)(1).
Subsec. (e)(2)(A)(ii).
Subsec. (e)(3).
Subsec. (f)(1).
Subsec. (f)(2).
Subsec. (k).
Subsec. (k)(3).
Subsec. (l).
Subsec. (l)(3).
1982—Subsec. (d).
1980—Subsecs. (a), (b)(1), (c), (d), (e)(1).
Subsec. (e)(3).
Subsecs. (f), (g).
Subsec. (h).
Subsec. (i).
Subsecs. (j), (k).
1978—Subsec. (a).
Subsec. (b).
Subsec. (c).
Subsec. (d).
Subsec. (e).
Subsec. (f).
Subsec. (g).
Subsec. (h).
Subsecs. (i), (j).
1976—Subsec. (a).
Subsec. (b)(1).
Subsec. (c).
Subsec. (d).
Subsec. (e)(1).
Subsec. (e)(2).
Subsec. (f).
Subsec. (g).
Subsecs. (h), (i).
Subsec. (h).
Statutory Notes and Related Subsidiaries
Effective Date of 2022 Amendment
Amendment by section 13201(b)(2), (e) of
Amendment by section 13203(d)(2)(B) of
Effective Date of 2020 Amendment
Amendment by
Effective Date of 2019 Amendment
Amendment by section 121(b)(1)(B) of
Amendment by section 133(a)(2) of
Effective Date of 2018 Amendment
Amendment by section 40407(b)(2) of
Amendment by section 40415(a)(2) of
Effective Date of 2015 Amendment
Amendment by section 185(b)(2) of
Amendment by section 192(a)(2) of
Effective Date of 2014 Amendment
Amendment by section 160(a)(2), (b)(2) of
Amendment by section 160(c)(2) of
Effective Date of 2013 Amendment
Amendment by section 405(b)(2) of
Amendment by section 412(b) of
Effective Date of 2010 Amendment
Amendment by section 701(b)(2) of
Amendment by section 704(a) of
Effective Date of 2008 Amendment
Amendment by section 202(a) of
Amendment by section 203(c)(2) of
Amendment by section 204(a)(3) of
Effective and Termination Dates of 2007 Amendment
Amendment by section 5(a)(1) of
Amendment by section 11(e)(1) of
Effective Date of 2006 Amendment
"(1)
"(2)
Effective Date of 2005 Amendments
Amendment by section 11113(b)(3)(C) of
Amendment by section 11151(a) of
Amendment by section 11161(b)(2), (3)(B), (D)–(F) of
Amendment by section 11163(c) of
Amendment by section 1343(b)(1), (3) of
Effective Date of 2004 Amendment
Amendment by section 241(a)(2)(D) of
Amendment by section 301(c)(9), (10) of
Amendment by section 851(d)(3) of
Amendment by section 853(c), (d)(2)(J), (K) of
Amendment by section 857(b), (c) of
Amendment by section 870(b) of
Effective Date of 1998 Amendments
Amendment by section 6023(16), (25), and (26) of
Amendment by section 6016(b) of
Amendment by section 9009(a)–(b)(2) of
Effective Date of 1997 Amendment
Amendment by
Effective Date of 1996 Amendment
Amendment by section 1606(a), (b)(2) of
Amendment by section 1702(b)(2)(B) of
Amendment by section 1703(k) of
Effective Date of 1993 Amendment
Amendment by section 13241(f)(8)–(10) of
Amendment by section 13242(c), (d)(21), (25)–(31) of
Effective Date of 1990 Amendment
Amendment by section 11211(b)(4)(B), (5), (6)(E)(ii) of
Amendment by section 11213(b)(3) of
Effective Date of 1989 Amendment
Amendment by section 7812(a) of
Amendment by section 7822(b)(1)–(4) of
Effective Date of 1988 Amendment
Amendment by section 1017(c)(3), (10) of
Amendment by section 2004(s)(2), (3) of
Effective Date of 1987 Amendment
Amendment by
Effective Date of 1986 Amendments
Amendment by section 1703(d), (e)(1), (2)(A)–(E) of
Amendment by section 1877(b) of
Amendment by
Effective Date of 1984 Amendment
Amendment by section 474(r)(38) of
Amendment by section 732(a)(3) of
Amendment by section 734(c)(2) of
Amendment by section 912(d) of
Effective and Termination Dates of 1983 Amendments
For effective date of amendment by
Amendment by section 511 of
Effective Date of 1982 Amendment
Amendment by
Effective Date of 1980 Amendment
"(A)
"(B)
Effective Date of 1978 Amendments
Amendment by
Amendment by
Amendment by
Effective Date of 1976 Amendments
Amendment by
Effective Date
Section applicable with respect to taxable years ending after June 30, 1970, see section 211(b) of
Savings Provision
For provisions that nothing in amendment by section 11801(a)(46), (c)(23) of
Construction of Amendment by Pub. L. 109–59
Special Rule for Kerosene Used in Aviation on a Farm for Farming Purposes
"(1)
"(2)
"(3)
"(4)
"(5)
Format for Filing
Extension of Period for Claiming Refunds for Alcohol Fuels
Treatment of Amendment by Section 10502(c)(4) of Pub. L. 100–203
Plan Amendments Not Required Until January 1, 1989
For provisions directing that if any amendments made by subtitle A or subtitle C of title XI [§§1101–1147 and 1171–1177] or title XVIII [§§1800–1899A] of
Study of Taxicab Fuel Rates
1 See References in Text note below.
§6428. 2020 recovery rebates for individuals
(a) In general
In the case of an eligible individual, there shall be allowed as a credit against the tax imposed by subtitle A for the first taxable year beginning in 2020 an amount equal to the sum of—
(1) $1,200 ($2,400 in the case of eligible individuals filing a joint return), plus
(2) an amount equal to the product of $500 multiplied by the number of qualifying children (within the meaning of section 24(c)) of the taxpayer.
(b) Treatment of credit
The credit allowed by subsection (a) shall be treated as allowed by subpart C of part IV of subchapter A of
(c) Limitation based on adjusted gross income
The amount of the credit allowed by subsection (a) (determined without regard to this subsection and subsection (e)) shall be reduced (but not below zero) by 5 percent of so much of the taxpayer's adjusted gross income as exceeds—
(1) $150,000 in the case of a joint return or a surviving spouse (as defined in section 2(a)),
(2) $112,500 in the case of a head of household, and
(3) $75,000 in the case of a taxpayer not described in paragraph (1) or (2).
(d) Eligible individual
For purposes of this section, the term "eligible individual" means any individual other than—
(1) any nonresident alien individual,
(2) any individual with respect to whom a deduction under section 151 is allowable to another taxpayer for a taxable year beginning in the calendar year in which the individual's taxable year begins, and
(3) an estate or trust.
(e) Coordination with advance refunds of credit
(1) In general
The amount of credit which would (but for this paragraph) be allowable under this section shall be reduced (but not below zero) by the aggregate refunds and credits made or allowed to the taxpayer under subsection (f). Any failure to so reduce the credit shall be treated as arising out of a mathematical or clerical error and assessed according to section 6213(b)(1).
(2) Joint returns
In the case of a refund or credit made or allowed under subsection (f) with respect to a joint return, half of such refund or credit shall be treated as having been made or allowed to each individual filing such return.
(f) Advance refunds and credits
(1) In general
Subject to paragraph (5), each individual who was an eligible individual for such individual's first taxable year beginning in 2019 shall be treated as having made a payment against the tax imposed by
(2) Advance refund amount
For purposes of paragraph (1), the advance refund amount is the amount that would have been allowed as a credit under this section for such taxable year if this section (other than subsection (e) and this subsection) had applied to such taxable year.
(3) Timing and manner of payments
(A) Timing
The Secretary shall, subject to the provisions of this title, refund or credit any overpayment attributable to this subsection as rapidly as possible. No refund or credit shall be made or allowed under this subsection after December 31, 2020.
(B) Delivery of payments
Notwithstanding any other provision of law, the Secretary may certify and disburse refunds payable under this subsection electronically to any account to which the payee authorized, on or after January 1, 2018, the delivery of a refund of taxes under this title or of a Federal payment (as defined in
(C) Waiver of certain rules
Notwithstanding
(4) No interest
No interest shall be allowed on any overpayment attributable to this subsection.
(5) Alternate taxable year
In the case of an individual who, at the time of any determination made pursuant to paragraph (3), has not filed a tax return for the year described in paragraph (1), the Secretary may—
(A) apply such paragraph by substituting "2018" for "2019", and
(B) if the individual has not filed a tax return for such individual's first taxable year beginning in 2018, use information with respect to such individual for calendar year 2019 provided in—
(i) Form SSA–1099, Social Security Benefit Statement, or
(ii) Form RRB–1099, Social Security Equivalent Benefit Statement.
(6) Payment to representative payees and fiduciaries
(A) In general
In the case of any individual for which payment information is provided to the Secretary by the Commissioner of Social Security, the Railroad Retirement Board, or the Secretary of Veterans Affairs, the payment by the Secretary under paragraph (3) with respect to such individual may be made to such individual's representative payee or fiduciary and the entire payment shall be—
(i) provided to the individual who is entitled to the payment, or
(ii) used only for the benefit of the individual who is entitled to the payment.
(B) Application of enforcement provisions
(i) In the case of a payment described in subparagraph (A) which is made with respect to a social security beneficiary or a supplemental security income recipient, section 1129(a)(3) of the Social Security Act (
(ii) In the case of a payment described in subparagraph (A) which is made with respect to a railroad retirement beneficiary, section 13 of the Railroad Retirement Act (
(iii) In the case of a payment described in subparagraph (A) which is made with respect to a veterans beneficiary,
(7) Notice to taxpayer
Not later than 15 days after the date on which the Secretary distributed any payment to an eligible taxpayer pursuant to this subsection, notice shall be sent by mail to such taxpayer's last known address. Such notice shall indicate the method by which such payment was made, the amount of such payment, and a phone number for the appropriate point of contact at the Internal Revenue Service to report any failure to receive such payment.
(g) Identification number requirement
(1) Requirements for credit
Subject to paragraph (2), with respect to the credit allowed under subsection (a), the following provisions shall apply:
(A) In general
In the case of a return other than a joint return, the $1,200 amount in subsection (a)(1) shall be treated as being zero unless the taxpayer includes the valid identification number of the taxpayer on the return of tax for the taxable year.
(B) Joint returns
In the case of a joint return, the $2,400 amount in subsection (a)(1) shall be treated as being—
(i) $1,200 if the valid identification number of only 1 spouse is included on the return of tax for the taxable year, and
(ii) zero if the valid identification number of neither spouse is so included.
(C) Qualifying child
A qualifying child of a taxpayer shall not be taken into account under subsection (a)(2) unless—
(i) the taxpayer includes the valid identification number of such taxpayer (or, in the case of a joint return, the valid identification number of at least 1 spouse) on the return of tax for the taxable year, and
(ii) the valid identification number of such qualifying child is included on the return of tax for the taxable year.
(2) Requirements for advance refunds
No refund shall be payable under subsection (f) to an eligible individual who does not include on the return of tax for the taxable year—
(A) such individual's valid identification number,
(B) in the case of a joint return, the valid identification number of such individual's spouse, and
(C) in the case of any qualifying child taken into account under subsection (a)(2), the valid identification number of such qualifying child.
(3) Valid identification number
(A) In general
For purposes of this subsection, the term "valid identification number" means a social security number (as such term is defined in section 24(h)(7)).
(B) Adoption taxpayer identification number
For purposes of paragraphs (1)(C) and (2)(C), in the case of a qualifying child who is adopted or placed for adoption, the term "valid identification number" shall include the adoption taxpayer identification number of such child.
(4) Special rule for members of the Armed Forces
Paragraphs (1)(B) and (2)(B) shall not apply in the case where at least 1 spouse was a member of the Armed Forces of the United States at any time during the taxable year and the valid identification number of at least 1 spouse is included on the return of tax for the taxable year.
(5) Mathematical or clerical error authority
Any omission of a correct valid identification number required under this subsection shall be treated as a mathematical or clerical error for purposes of applying section 6213(g)(2) to such omission.
(h) Regulations
The Secretary shall prescribe such regulations or other guidance as may be necessary to carry out the purposes of this section, including any such measures as are deemed appropriate to avoid allowing multiple credits or rebates to a taxpayer.
(Added
Editorial Notes
References in Text
The Social Security Act, referred to in subsec. (f)(6)(B)(i), is act Aug. 14, 1935, ch. 531,
The Railroad Retirement Act, referred to in subsec. (f)(6)(B)(ii), probably means the Railroad Retirement Act of 1974, act Aug. 29, 1935, ch. 812, as amended generally by
Prior Provisions
A prior section 6428, added
Another prior section 6428, added
Amendments
2020—Subsec. (c)(1).
Subsec. (f)(3)(A).
Subsec. (f)(4).
Subsec. (f)(6), (7).
Subsec. (g).
Statutory Notes and Related Subsidiaries
Effective Date of 2020 Amendment
Treatment of Possessions
"(1)
"(A)
"(B)
"(2)
"(A) to whom a credit is allowed against taxes imposed by the possession by reason of the amendments made by this section, or
"(B) who is eligible for a payment under a plan described in paragraph (1)(B).
"(3)
"(A)
"(B)
"(C)
Exception From Reduction or Offset
"(1) subject to reduction or offset pursuant to
"(2) subject to reduction or offset pursuant to subsection (d), (e), or (f) of section 6402 of the Internal Revenue Code of 1986, or
"(3) reduced or offset by other assessed Federal taxes that would otherwise be subject to levy or collection."
Public Awareness Campaign
Economic Recovery Payment to Recipients of Social Security, Supplemental Security Income, Railroad Retirement Benefits, and Veterans Disability Compensation or Pension Benefits
Special Credit for Certain Government Retirees
"(a)
"(b)
"(1)
"(A) who receives during the first taxable year beginning in 2009 any amount as a pension or annuity for service performed in the employ of the United States or any State, political subdivision of a State, or any instrumentality thereof, which is not considered employment for purposes of
"(B) who does not receive a payment under section 2201 [set out above] during such taxable year.
"(2)
"(A) such individual's social security account number, and
"(B) in the case of a joint return, the social security account number of one of the taxpayers on such return.
For purposes of the preceding sentence, the social security account number shall not include a TIN (as defined in section 7701(a)(41) of the Internal Revenue Code of 1986) issued by the Internal Revenue Service. Any omission of a correct social security account number required under this subparagraph [probably should be "this paragraph"] shall be treated as a mathematical or clerical error for purposes of applying section 6213(g)(2) of such Code to such omission.
"(c)
"(1)
"(A)
"(B)
"(2)
"(d)
"(e)
"(1)
"(2)
"(3)
"(A)
"(B)
"(C)
§6428A. Additional 2020 recovery rebates for individuals
(a) In general
In addition to the credit allowed under section 6428, in the case of an eligible individual, there shall be allowed as a credit against the tax imposed by subtitle A for the first taxable year beginning in 2020 an amount equal to the sum of—
(1) $600 ($1,200 in the case of eligible individuals filing a joint return), plus
(2) an amount equal to the product of $600 multiplied by the number of qualifying children (within the meaning of section 24(c)) of the taxpayer.
(b) Treatment of credit
The credit allowed by subsection (a) shall be treated as allowed by subpart C of part IV of subchapter A of
(c) Limitation based on adjusted gross income
The amount of the credit allowed by subsection (a) (determined without regard to this subsection and subsection (e)) shall be reduced (but not below zero) by 5 percent of so much of the taxpayer's adjusted gross income as exceeds—
(1) $150,000 in the case of a joint return or a surviving spouse (as defined in section 2(a)),
(2) $112,500 in the case of a head of household (as defined in section 2(b)), and
(3) $75,000 in the case of a taxpayer not described in paragraph (1) or (2).
(d) Eligible individual
For purposes of this section, the term "eligible individual" means any individual other than—
(1) any nonresident alien individual,
(2) any individual with respect to whom a deduction under section 151 is allowable to another taxpayer for a taxable year beginning in the calendar year in which the individual's taxable year begins, and
(3) an estate or trust.
(e) Coordination with advance refunds of credit
(1) In general
The amount of the credit which would (but for this paragraph) be allowable under this section shall be reduced (but not below zero) by the aggregate refunds and credits made or allowed to the taxpayer under subsection (f). Any failure to so reduce the credit shall be treated as arising out of a mathematical or clerical error and assessed according to section 6213(b)(1).
(2) Joint returns
Except as otherwise provided by the Secretary, in the case of a refund or credit made or allowed under subsection (f) with respect to a joint return, half of such refund or credit shall be treated as having been made or allowed to each individual filing such return.
(f) Advance refunds and credits
(1) In general
Each individual who was an eligible individual for such individual's first taxable year beginning in 2019 shall be treated as having made a payment against the tax imposed by
(2) Advance refund amount
For purposes of paragraph (1), the advance refund amount is the amount that would have been allowed as a credit under this section for such taxable year if this section (other than subsection (e) and this subsection) had applied to such taxable year. For purposes of determining the advance refund amount with respect to such taxable year—
(A) any individual who was deceased before January 1, 2020, shall be treated for purposes of applying subsection (g) in the same manner as if the valid identification number of such person was not included on the return of tax for such taxable year, and
(B) no amount shall be determined under this subsection with respect to any qualifying child of the taxpayer if—
(i) the taxpayer was deceased before January 1, 2020, or
(ii) in the case of a joint return, both taxpayers were deceased before January 1, 2020.
(3) Timing and manner of payments
(A) Timing
(i) In general
The Secretary shall, subject to the provisions of this title, refund or credit any overpayment attributable to this subsection as rapidly as possible.
(ii) Deadline
(I) In general
Except as provided in subclause (II), no refund or credit shall be made or allowed under this subsection after January 15, 2021.
(II) Exception for mirror code possessions
In the case of a possession of the United States which has a mirror code tax system (as such terms are defined in section 272(c) of the COVID-related Tax Relief Act of 2020), no refund or credit shall be made or allowed under this subsection after the earlier of—
(aa) such date as is determined appropriate by the Secretary, or
(bb) September 30, 2021.
(B) Delivery of payments
Notwithstanding any other provision of law, the Secretary may certify and disburse refunds payable under this subsection electronically to—
(i) any account to which the payee authorized, on or after January 1, 2019, the delivery of a refund of taxes under this title or of a Federal payment (as defined in
(ii) any account belonging to a payee from which that individual, on or after January 1, 2019, made a payment of taxes under this title, or
(iii) any Treasury-sponsored account (as defined in section 208.2 of title 31, Code of Federal Regulations).
(C) Waiver of certain rules
Notwithstanding
(4) No interest
No interest shall be allowed on any overpayment attributable to this subsection.
(5) Application to certain individuals who do not file a return of tax for 2019
(A) In general
In the case of a specified individual who, at the time of any determination made pursuant to paragraph (3), has not filed a tax return for the year described in paragraph (1), the Secretary may use information with respect to such individual which is provided by—
(i) in the case of a specified social security beneficiary or a specified supplemental security income recipient, the Commissioner of Social Security,
(ii) in the case of a specified railroad retirement beneficiary, the Railroad Retirement Board, and
(iii) in the case of a specified veterans beneficiary, the Secretary of Veterans Affairs (in coordination with, and with the assistance of, the Commissioner of Social Security if appropriate).
(B) Specified individual
For purposes of this paragraph, the term "specified individual" means any individual who is—
(i) a specified social security beneficiary,
(ii) a specified supplemental security income recipient,
(iii) a specified railroad retirement beneficiary, or
(iv) a specified veterans beneficiary.
(C) Specified social security beneficiary
(i) In general
For purposes of this paragraph, the term "specified social security beneficiary" means any individual who, for the last month for which the Secretary has available information as of the date of enactment of this section, is entitled to any monthly insurance benefit payable under title II of the Social Security Act (
(ii) Exception
For purposes of this paragraph, the term "specified social security beneficiary" shall not include any individual if such benefit is not payable for such month by reason of section 202(x)(1)(A) of the Social Security Act (
(D) Specified supplemental security income recipient
(i) In general
For purposes of this paragraph, the term "specified supplemental security income recipient" means any individual who, for the last month for which the Secretary has available information as of the date of enactment of this section, is eligible for a monthly benefit payable under title XVI of the Social Security Act (
(I) payments made pursuant to section 1614(a)(3)(C) of such Act (
(II) payments made pursuant to section 1619(a) (
(III) State supplementary payments of the type referred to in section 1616(a) of such Act (
(ii) Exception
For purposes of this paragraph, the term "specified supplemental security income recipient" shall not include any individual if such monthly benefit is not payable for such month by reason of section 1611(e)(1)(A) of the Social Security Act (
(E) Specified railroad retirement beneficiary
For purposes of this paragraph, the term "specified railroad retirement beneficiary" means any individual who, for the last month for which the Secretary has available information as of the date of enactment of this section, is entitled to a monthly annuity or pension payment payable (without regard to section 5(a)(ii) of the Railroad Retirement Act of 1974 (
(i) section 2(a)(1) of such Act (
(ii) section 2(c) of such Act (
(iii) section 2(d)(1) of such Act (
(iv) section 7(b)(2) of such Act (
(F) Specified veterans beneficiary
(i) In general
For purposes of this paragraph, the term "specified veterans beneficiary" means any individual who, for the last month for which the Secretary has available information as of the date of enactment of this section, is entitled to a compensation or pension payment payable under—
(I)
(II)
(III)
(IV)
to a veteran, surviving spouse, child, or parent as described in paragraph (2), (3), (4)(A)(ii), or (5) of
(ii) Exception
For purposes of this paragraph, the term "specified veterans beneficiary" shall not include any individual if such compensation or pension payment is not payable, or was reduced, for such month by reason of
(G) Subsequent determinations and redeterminations not taken into account
For purposes of this section, any individual's status as a specified social security beneficiary, a specified supplemental security income recipient, a specified railroad retirement beneficiary, or a specified veterans beneficiary shall be unaffected by any determination or redetermination of any entitlement to, or eligibility for, any benefit, payment, or compensation, if such determination or redetermination occurs after the last month for which the Secretary has available information as of the date of enactment of this section.
(H) Payment to representative payees and fiduciaries
(i) In general
If the benefit, payment, or compensation referred to in subparagraph (C)(i), (D)(i), (E), or (F)(i) with respect to any specified individual is paid to a representative payee or fiduciary, payment by the Secretary under paragraph (3) with respect to such specified individual shall be made to such individual's representative payee or fiduciary and the entire payment shall be used only for the benefit of the individual who is entitled to the payment.
(ii) Application of enforcement provisions
(I) In the case of a payment described in clause (i) which is made with respect to a specified social security beneficiary or a specified supplemental security income recipient, section 1129(a)(3) of the Social Security Act (
(II) In the case of a payment described in clause (i) which is made with respect to a specified railroad retirement beneficiary, section 13 of the Railroad Retirement Act (
(III) In the case of a payment described in clause (i) which is made with respect to a specified veterans beneficiary,
(I) Ineligibility for special rule not to be interpreted as general ineligibility
An individual shall not fail to be treated as an eligible individual for purposes of this subsection or subsection (a) merely because such individual is not a specified individual (including by reason of subparagraph (C)(ii), (D)(ii), or (F)(ii)).
(6) Notice to taxpayer
As soon as practicable after the date on which the Secretary distributed any payment to an eligible taxpayer pursuant to this subsection, the Secretary shall send notice by mail to such taxpayer's last known address. Such notice shall indicate the method by which such payment was made, the amount of such payment, and a phone number for the appropriate point of contact at the Internal Revenue Service to report any failure to receive such payment.
(g) Identification number requirement
(1) In general
In the case of a return other than a joint return, the $600 amount in subsection (a)(1) shall be treated as being zero unless the taxpayer includes the valid identification number of the taxpayer on the return of tax for the taxable year.
(2) Joint returns
In the case of a joint return, the $1,200 amount in subsection (a)(1) shall be treated as being—
(A) $600 if the valid identification number of only 1 spouse is included on the return of tax for the taxable year, and
(B) zero if the valid identification number of neither spouse is so included.
(3) Qualifying child
A qualifying child of a taxpayer shall not be taken into account under subsection (a)(2) unless—
(A) the taxpayer includes the valid identification number of such taxpayer (or, in the case of a joint return, the valid identification number of at least 1 spouse) on the return of tax for the taxable year, and
(B) the valid identification number of such qualifying child is included on the return of tax for the taxable year.
(4) Valid identification number
(A) In general
For purposes of this subsection, the term "valid identification number" means a social security number (as such term is defined in section 24(h)(7)).
(B) Adoption taxpayer identification number
For purposes of paragraph (3)(B), in the case of a qualifying child who is adopted or placed for adoption, the term "valid identification number" shall include the adoption taxpayer identification number of such child.
(5) Special rule for members of the Armed Forces
Paragraph (2) shall not apply in the case where at least 1 spouse was a member of the Armed Forces of the United States at any time during the taxable year and the valid identification number of at least 1 spouse is included on the return of tax for the taxable year.
(6) Coordination with certain advance payments
In the case of any payment under subsection (f) which is based on information provided under paragraph (5) of such subsection, a valid identification number shall be treated for purposes of this subsection as included on the taxpayer's return of tax if such valid identification number is provided pursuant to subsection (f)(5).
(7) Mathematical or clerical error authority
Any omission of a correct valid identification number required under this subsection shall be treated as a mathematical or clerical error for purposes of applying section 6213(g)(2) to such omission.
(h) Regulations
The Secretary shall prescribe such regulations or other guidance as may be necessary to carry out the purposes of this section, including any such measures as are deemed appropriate to avoid allowing multiple credits or rebates to a taxpayer.
(Added
Editorial Notes
References in Text
Section 272(c) of the COVID-related Tax Relief Act of 2020, referred to in subsec. (f)(3)(A)(ii)(II), is section 272(c) of title II of div. N of
The date of enactment of this section, referred to in subsec. (f)(5)(C) to (G), means the date of enactment of
The Social Security Act, referred to in subsec. (f)(5)(C), (D), (H)(ii)(I), is act Aug. 14, 1935, ch. 531,
Section 212(a) of
The Railroad Retirement Act, referred to in subsec. (f)(5)(H)(ii)(II), probably means the Railroad Retirement Act of 1974, act Aug. 29, 1935, ch. 812, as amended generally by
Statutory Notes and Related Subsidiaries
Treatment of United States Possessions
"(1)
"(A)
"(B)
"(2)
"(A) to whom a credit is allowed against taxes imposed by the possession by reason of the amendments made by this section, or
"(B) who is eligible for a payment under a plan described in paragraph (1)(B).
"(3)
"(A)
"(B)
"(C)
Administrative Provisions
"(1)
"(A) subject to reduction or offset pursuant to
"(B) subject to reduction or offset pursuant to subsection (c), (d), (e), or (f) of section 6402 of the Internal Revenue Code of 1986, or
"(C) reduced or offset by other assessed Federal taxes that would otherwise be subject to levy or collection.
"(2)
"(A)
"(B)
"(i) issue the payment using a unique identifier that is reasonably sufficient to allow a financial institution to identify the payment as an applicable payment, and
"(ii) further encode the payment pursuant to the same specifications as required for a benefit payment defined in section 212.3 of title 31, Code of Federal Regulations.
"(C)
"(i)
"(I) notwithstanding section 212.4 of title 31, Code of Federal Regulations (and except as provided in subclause (II)), a financial institution shall not fail to follow the procedures of sections 212.5 and 212.6 of such title with respect to a garnishment order merely because such order has attached, or includes, a notice of right to garnish federal benefits issued by a State child support enforcement agency, and
"(II) a financial institution shall not, with regard to any applicable payment, be required to provide the notice referenced in sections 212.6 and 212.7 of title 31, Code of Federal Regulations.
"(ii)
"(iii)
"(D)
"(E)
"(i)
"(ii)
"(iii)
"(I) any advance refund amount paid pursuant to section 6428A(f) of Internal Revenue Code of 1986 (as added by this section),
"(II) any payment made by a possession of the United States with a mirror code tax system (as defined in subsection (c) of this section) pursuant to such subsection which corresponds to a payment described in subclause (I), and
"(III) any payment made by a possession of the United States without a mirror code tax system (as so defined) pursuant to subsection (c) of this section.
"(iv)
"(v)
"(vi)
"(3)
"(A)
"(i) making payments under section 6428A(f) of the Internal Revenue Code of 1986 to individuals described in paragraph (5)(A) thereof, or
"(ii) providing administrative assistance to a possession of the United States (as defined in subsection (c)(3)(A)[set out above]) to allow such possession to promptly distribute payments under subsection (c) to its residents.
"(B)
Public Awareness Campaign
§6428B. 2021 recovery rebates to individuals
(a) In general
In the case of an eligible individual, there shall be allowed as a credit against the tax imposed by subtitle A for the first taxable year beginning in 2021 an amount equal to the 2021 rebate amount determined for such taxable year.
(b) 2021 rebate amount
For purposes of this section, the term "2021 rebate amount" means, with respect to any taxpayer for any taxable year, the sum of—
(1) $1,400 ($2,800 in the case of a joint return), plus
(2) $1,400 multiplied by the number of dependents of the taxpayer for such taxable year.
(c) Eligible individual
For purposes of this section, the term "eligible individual" means any individual other than—
(1) any nonresident alien individual,
(2) any individual who is a dependent of another taxpayer for a taxable year beginning in the calendar year in which the individual's taxable year begins, and
(3) an estate or trust.
(d) Limitation based on adjusted gross income
(1) In general
The amount of the credit allowed by subsection (a) (determined without regard to this subsection and subsection (f)) shall be reduced (but not below zero) by the amount which bears the same ratio to such credit (as so determined) as—
(A) the excess of—
(i) the taxpayer's adjusted gross income for such taxable year, over
(ii) $75,000, bears to
(B) $5,000.
(2) Special rules
(A) Joint return or surviving spouse
In the case of a joint return or a surviving spouse (as defined in section 2(a)), paragraph (1) shall be applied by substituting "$150,000" for "$75,000" and "$10,000" for "$5,000".
(B) Head of household
In the case of a head of household (as defined in section 2(b)), paragraph (1) shall be applied by substituting "$112,500" for "$75,000" and "$7,500" for "$5,000".
(e) Definitions and special rules
(1) Dependent defined
For purposes of this section, the term "dependent" has the meaning given such term by section 152.
(2) Identification number requirement
(A) In general
In the case of a return other than a joint return, the $1,400 amount in subsection (b)(1) shall be treated as being zero unless the taxpayer includes the valid identification number of the taxpayer on the return of tax for the taxable year.
(B) Joint returns
In the case of a joint return, the $2,800 amount in subsection (b)(1) shall be treated as being—
(i) $1,400 if the valid identification number of only 1 spouse is included on the return of tax for the taxable year, and
(ii) zero if the valid identification number of neither spouse is so included.
(C) Dependents
A dependent shall not be taken into account under subsection (b)(2) unless the valid identification number of such dependent is included on the return of tax for the taxable year.
(D) Valid identification number
(i) In general
For purposes of this paragraph, the term "valid identification number" means a social security number issued to an individual by the Social Security Administration on or before the due date for filing the return for the taxable year.
(ii) Adoption taxpayer identification number
For purposes of subparagraph (C), in the case of a dependent who is adopted or placed for adoption, the term "valid identification number" shall include the adoption taxpayer identification number of such dependent.
(E) Special rule for members of the Armed Forces
Subparagraph (B) shall not apply in the case where at least 1 spouse was a member of the Armed Forces of the United States at any time during the taxable year and the valid identification number of at least 1 spouse is included on the return of tax for the taxable year.
(F) Coordination with certain advance payments
In the case of any payment determined pursuant to subsection (g)(6), a valid identification number shall be treated for purposes of this paragraph as included on the taxpayer's return of tax if such valid identification number is available to the Secretary as described in such subsection.
(G) Mathematical or clerical error authority
Any omission of a correct valid identification number required under this paragraph shall be treated as a mathematical or clerical error for purposes of applying section 6213(g)(2) to such omission.
(3) Credit treated as refundable
The credit allowed by subsection (a) shall be treated as allowed by subpart C of part IV of subchapter A of
(f) Coordination with advance refunds of credit
(1) Reduction of refundable credit
The amount of the credit which would (but for this paragraph) be allowable under subsection (a) shall be reduced (but not below zero) by the aggregate refunds and credits made or allowed to the taxpayer (or, except as otherwise provided by the Secretary, any dependent of the taxpayer) under subsection (g). Any failure to so reduce the credit shall be treated as arising out of a mathematical or clerical error and assessed according to section 6213(b)(1).
(2) Joint returns
Except as otherwise provided by the Secretary, in the case of a refund or credit made or allowed under subsection (g) with respect to a joint return, half of such refund or credit shall be treated as having been made or allowed to each individual filing such return.
(g) Advance refunds and credits
(1) In general
Subject to paragraphs (5) and (6), each individual who was an eligible individual for such individual's first taxable year beginning in 2019 shall be treated as having made a payment against the tax imposed by
(2) Advance refund amount
(A) In general
For purposes of paragraph (1), the advance refund amount is the amount that would have been allowed as a credit under this section for such taxable year if this section (other than subsection (f) and this subsection) had applied to such taxable year.
(B) Treatment of deceased individuals
For purposes of determining the advance refund amount with respect to such taxable year—
(i) any individual who was deceased before January 1, 2021, shall be treated for purposes of applying subsection (e)(2) in the same manner as if the valid identification number of such person was not included on the return of tax for such taxable year (except that subparagraph (E) thereof shall not apply),
(ii) notwithstanding clause (i), in the case of a joint return with respect to which only 1 spouse is deceased before January 1, 2021, such deceased spouse was a member of the Armed Forces of the United States at any time during the taxable year, and the valid identification number of such deceased spouse is included on the return of tax for the taxable year, the valid identification number of 1 (and only 1) spouse shall be treated as included on the return of tax for the taxable year for purposes of applying subsection (e)(2)(B) with respect to such joint return, and
(iii) no amount shall be determined under subsection (e)(2) with respect to any dependent of the taxpayer if the taxpayer (both spouses in the case of a joint return) was deceased before January 1, 2021.
(3) Timing and manner of payments
The Secretary shall, subject to the provisions of this title and consistent with rules similar to the rules of subparagraphs (B) and (C) of section 6428A(f)(3), refund or credit any overpayment attributable to this subsection as rapidly as possible, consistent with a rapid effort to make payments attributable to such overpayments electronically if appropriate. No refund or credit shall be made or allowed under this subsection after December 31, 2021.
(4) No interest
No interest shall be allowed on any overpayment attributable to this subsection.
(5) Application to individuals who have filed a return of tax for 2020
(A) Application to 2020 returns filed at time of initial determination
If, at the time of any determination made pursuant to paragraph (3), the individual referred to in paragraph (1) has filed a return of tax for the individual's first taxable year beginning in 2020, paragraph (1) shall be applied with respect to such individual by substituting "2020" for "2019".
(B) Additional payment
(i) In general
In the case of any individual who files, before the additional payment determination date, a return of tax for such individual's first taxable year beginning in 2020, the Secretary shall make a payment (in addition to any payment made under paragraph (1)) to such individual equal to the excess (if any) of—
(I) the amount which would be determined under paragraph (1) (after the application of subparagraph (A)) by applying paragraph (1) as of the additional payment determination date, over
(II) the amount of any payment made with respect to such individual under paragraph (1).
(ii) Additional payment determination date
The term "additional payment determination date" means the earlier of—
(I) the date which is 90 days after the 2020 calendar year filing deadline, or
(II) September 1, 2021.
(iii) 2020 calendar year filing deadline
The term "2020 calendar year filing deadline" means the date specified in section 6072(a) with respect to returns for calendar year 2020. Such date shall be determined after taking into account any period disregarded under section 7508A if such disregard applies to substantially all returns for calendar year 2020 to which section 6072(a) applies.
(6) Application to certain individuals who have not filed a return of tax for 2019 or 2020 at time of determination
In the case of any individual who, at the time of any determination made pursuant to paragraph (3), has filed a tax return for neither the year described in paragraph (1) nor for the year described in paragraph (5)(A), the Secretary shall, consistent with rules similar to the rules of section 6428A(f)(5)(H)(i), apply paragraph (1) on the basis of information available to the Secretary and shall, on the basis of such information, determine the advance refund amount with respect to such individual without regard to subsection (d) unless the Secretary has reason to know that such amount would otherwise be reduced by reason of such subsection.
(7) Special rule related to time of filing return
Solely for purposes of this subsection, a return of tax shall not be treated as filed until such return has been processed by the Internal Revenue Service.
(8) Restriction on use of certain previously issued prepaid debit cards
Payments made by the Secretary to individuals under this section shall not be in the form of an increase in the balance of any previously issued prepaid debit card if, as of the time of the issuance of such card, such card was issued solely for purposes of making payments under section 6428 or 6428A.
(h) Regulations
The Secretary shall prescribe such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section, including—
(1) regulations or other guidance providing taxpayers the opportunity to provide the Secretary information sufficient to allow the Secretary to make payments to such taxpayers under subsection (g) (including the determination of the amount of such payment) if such information is not otherwise available to the Secretary, and
(2) regulations or other guidance to ensure to the maximum extent administratively practicable that, in determining the amount of any credit under subsection (a) and any credit or refund under subsection (g), an individual is not taken into account more than once, including by different taxpayers and including by reason of a change in joint return status or dependent status between the taxable year for which an advance refund amount is determined and the taxable year for which a credit under subsection (a) is determined.
(i) Outreach
The Secretary shall carry out a robust and comprehensive outreach program to ensure that all taxpayers described in subsection (h)(1) learn of their eligibility for the advance refunds and credits under subsection (g); are advised of the opportunity to receive such advance refunds and credits as provided under subsection (h)(1); and are provided assistance in applying for such advance refunds and credits.
(Added
Statutory Notes and Related Subsidiaries
Treatment of Certain Possessions
"(1)
"(2)
"(3)
"(A) the increase (if any) of the administrative expenses of such possession—
"(i) in the case of a possession described in paragraph (1), by reason of the amendments made by this section, and
"(ii) in the case of a possession described in paragraph (2), by reason of carrying out the plan described in such paragraph, or
"(B) $500,000 ($10,000,000 in the case of Puerto Rico).
The amount described in subparagraph (A) shall be determined by the Secretary of the Treasury based on information provided by the government of the respective possession.
"(4)
"(A) to whom a credit is allowed against taxes imposed by the possession by reason of the amendments made by this section, or
"(B) who is eligible for a payment under a plan described in paragraph (2).
"(5)
"(6)
Exception From Reduction or Offset
"(A) subject to reduction or offset pursuant to subsection (c), (d), (e), or (f) of section 6402 of the Internal Revenue Code of 1986 or any similar authority permitting offset, or
"(B) reduced or offset by other assessed Federal taxes that would otherwise be subject to levy or collection."
[§6429. Repealed. Pub. L. 113–295, div. A, title II, §221(a)(113), Dec. 19, 2014, 128 Stat. 4054 ]
Section, added
A prior section 6429, added
Statutory Notes and Related Subsidiaries
Effective Date of Repeal
Repeal effective Dec. 19, 2014, subject to a savings provision, see section 221(b) of
§6430. Treatment of tax imposed at Leaking Underground Storage Tank Trust Fund financing rate
No refunds, credits, or payments shall be made under this subchapter for any tax imposed at the Leaking Underground Storage Tank Trust Fund financing rate, except in the case of fuels—
(1) which are exempt from tax under section 4081(a) by reason of section 4082(f)(2),
(2) which are exempt from tax under section 4041(d) by reason of the last sentence of paragraph (5) thereof, or
(3) with respect to which the rate increase under section 4081(a)(2)(B) is zero by reason of section 4082(e)(2).
(Added
Editorial Notes
Prior Provisions
A prior section 6430, added
Amendments
2007—
Statutory Notes and Related Subsidiaries
Effective Date of 2007 Amendment
Amendment by
Effective Date
Section effective Oct. 1, 2005, and applicable to fuel entered, removed, or sold after Sept. 30, 2005, see section 1362(d) of
Refund Authorized for Certain Taxes
[§6431. Repealed. Pub. L. 115–97, title I, §13404(b), Dec. 22, 2017, 131 Stat. 2138 ]
Section, added
Statutory Notes and Related Subsidiaries
Effective Date of Repeal
Repeal by
§6432. Continuation coverage premium assistance
(a) In general
The person to whom premiums are payable for continuation coverage under section 9501(a)(1) of the American Rescue Plan Act of 2021 shall be allowed as a credit against the tax imposed by section 3111(b), or so much of the taxes imposed under section 3221(a) as are attributable to the rate in effect under section 3111(b), for each calendar quarter an amount equal to the premiums not paid by assistance eligible individuals for such coverage by reason of such section 9501(a)(1) with respect to such calendar quarter.
(b) Person to whom premiums are payable
For purposes of subsection (a), except as otherwise provided by the Secretary, the person to whom premiums are payable under such continuation coverage shall be treated as being—
(1) in the case of any group health plan which is a multiemployer plan (as defined in section 3(37) of the Employee Retirement Income Security Act of 1974), the plan,
(2) in the case of any group health plan not described in paragraph (1)—
(A) which is subject to the COBRA continuation provisions contained in—
(i) the Internal Revenue Code of 1986,
(ii) the Employee Retirement Income Security Act of 1974, or
(iii) the Public Health Service Act, or
(B) under which some or all of the coverage is not provided by insurance,
the employer maintaining the plan, and
(3) in the case of any group health plan not described in paragraph (1) or (2), the insurer providing the coverage under the group health plan.
(c) Limitations and refundability
(1) Credit limited to certain employment taxes
The credit allowed by subsection (a) with respect to any calendar quarter shall not exceed the tax imposed by section 3111(b), or so much of the taxes imposed under section 3221(a) as are attributable to the rate in effect under section 3111(b), for such calendar quarter (reduced by any credits allowed against such taxes under sections 3131, 3132, and 3134) on the wages paid with respect to the employment of all employees of the employer.
(2) Refundability of excess credit
(A) Credit is refundable
If the amount of the credit under subsection (a) exceeds the limitation of paragraph (1) for any calendar quarter, such excess shall be treated as an overpayment that shall be refunded under sections 6402(a) and 6413(b).
(B) Credit may be advanced
In anticipation of the credit, including the refundable portion under subparagraph (A), the credit may be advanced, according to forms and instructions provided by the Secretary, up to an amount calculated under subsection (a) through the end of the most recent payroll period in the quarter.
(C) Treatment of deposits
The Secretary shall waive any penalty under section 6656 for any failure to make a deposit of the tax imposed by section 3111(b), or so much of the taxes imposed under section 3221(a) as are attributable to the rate in effect under section 3111(b), if the Secretary determines that such failure was due to the anticipation of the credit allowed under this section.
(D) Treatment of payments
For purposes of
(3) Overstatements
Any overstatement of the credit to which a person is entitled under this section (and any amount paid by the Secretary as a result of such overstatement) shall be treated as an underpayment by such person of the taxes described in paragraph (1) and may be assessed and collected by the Secretary in the same manner as such taxes.
(d) Governmental entities
For purposes of this section, the term "person" includes the government of any State or political subdivision thereof, any Indian tribal government (as defined in section 139E(c)(1)), any agency or instrumentality of any of the foregoing, and any agency or instrumentality of the Government of the United States that is described in section 501(c)(1) and exempt from taxation under section 501(a).
(e) Denial of double benefit
For purposes of
(f) Extension of limitation on assessment
Notwithstanding section 6501, the limitation on the time period for the assessment of any amount attributable to a credit claimed under this section shall not expire before the date that is 5 years after the later of—
(1) the date on which the original return which includes the calendar quarter with respect to which such credit is determined is filed, or
(2) the date on which such return is treated as filed under section 6501(b)(2).
(g) Regulations
The Secretary shall issue such regulations, or other guidance, forms, instructions, and publications, as may be necessary or appropriate to carry out this section, including—
(1) the requirement to report information or the establishment of other methods for verifying the correct amounts of reimbursements under this section,
(2) the application of this section to group health plans that are multiemployer plans (as defined in section 3(37) of the Employee Retirement Income Security Act of 1974),
(3) to allow the advance payment of the credit determined under subsection (a), subject to the limitations provided in this section, based on such information as the Secretary shall require,
(4) to provide for the reconciliation of such advance payment with the amount of the credit at the time of filing the return of tax for the applicable quarter or taxable year, and
(5) allowing the credit to third party payors (including professional employer organizations, certified professional employer organizations, or agents under section 3504).
(Added
Editorial Notes
References in Text
Section 9501(a)(1) of the American Rescue Plan Act of 2021, referred to in subsec. (a)(1), is section 9501(a)(1) of title IX of
The Employee Retirement Income Security Act of 1974, referred to in subsecs. (b)(2)(A)(ii), is
The Public Health Service Act, referred to in subsec. (b)(2)(A)(iii), is act July 1, 1944, ch. 373,
Section 2301 of the CARES Act, referred to in subsec. (e), is section 2301 of title II of div. A of
Sections 7001(d) and 7003(d) of the Families First Coronavirus Response Act, referred to in subsec. (e), are sections 7001(d) and 7003(d) of div. G of
Prior Provisions
A prior section 6432, added
Statutory Notes and Related Subsidiaries
Effective Date
Premium Assistance for COBRA Benefits
§6433. Saver's Match
(a) In general
(1) Allowance of match
Any eligible individual who makes qualified retirement savings contributions for the taxable year shall be allowed a matching contribution for such taxable year in an amount equal to the applicable percentage of so much of the qualified retirement savings contributions made by such eligible individual for the taxable year as does not exceed $2,000.
(2) Payment of match
(A) In general
Except as provided in subparagraph (B), the matching contribution under this section shall be allowed as a credit which shall be payable by the Secretary as a contribution (as soon as practicable after the eligible individual has filed a tax return making a claim for such matching contribution for the taxable year) to the applicable retirement savings vehicle of the eligible individual.
(B) Exception
In the case of an eligible individual who elects the application of this subparagraph and with respect to whom the matching contribution determined under paragraph (1) is greater than zero but less than $100 for the taxable year, subparagraph (A) shall not apply and such matching contribution shall be treated as a credit allowed by subpart C of part IV of subchapter A of
(b) Applicable percentage
For purposes of this section—
(1) In general
Except as provided in paragraph (2), the applicable percentage is 50 percent.
(2) Phaseout
The percentage under paragraph (1) shall be reduced (but not below zero) by the number of percentage points which bears the same ratio to 50 percentage points as—
(A) the excess of—
(i) the taxpayer's modified adjusted gross income for such taxable year, over
(ii) the applicable dollar amount, bears to
(B) the phaseout range.
If any reduction determined under this paragraph is not a whole percentage point, such reduction shall be rounded to the next lowest whole percentage point.
(3) Applicable dollar amount; phaseout range
(A) Joint returns and surviving spouses
Except as provided in subparagraph (B)—
(i) the applicable dollar amount is $41,000, and
(ii) the phaseout range is $30,000.
(B) Other returns
In the case of—
(i) a head of a household (as defined in section 2(b)), the applicable dollar amount and the phaseout range shall be ¾ of the amounts applicable under subparagraph (A) (as adjusted under subsection (h)), and
(ii) any taxpayer who is not filing a joint return, who is not a head of a household (as so defined), and who is not a surviving spouse (as defined in section 2(a)), the applicable dollar amount and the phaseout range shall be ½ of the amounts applicable under subparagraph (A) (as so adjusted).
(c) Eligible individual
For purposes of this section—
(1) In general
The term "eligible individual" means any individual if such individual has attained the age of 18 as of the close of the taxable year.
(2) Dependents and full-time students not eligible
The term "eligible individual" shall not include—
(A) any individual with respect to whom a deduction under section 151 is allowed to another taxpayer for a taxable year beginning in the calendar year in which such individual's taxable year begins, and
(B) any individual who is a student (as defined in section 152(f)(2)).
(3) Nonresident aliens not eligible
The term "eligible individual" shall not include any individual who is a nonresident alien individual for any portion of the taxable year unless such individual is treated for such taxable year as a resident of the United States for purposes of
(d) Qualified retirement savings contributions
For purposes of this section—
(1) In general
The term "qualified retirement savings contributions" means, with respect to any taxable year, the sum of—
(A) the amount of the qualified retirement contributions (as defined in section 219(e)) made by the eligible individual,
(B) the amount of—
(i) any elective deferrals (as defined in section 402(g)(3)) of such individual, and
(ii) any elective deferral of compensation by such individual under an eligible deferred compensation plan (as defined in section 457(b)) of an eligible employer described in section 457(e)(1)(A), and
(C) the amount of voluntary employee contributions by such individual to any qualified retirement plan (as defined in section 4974(c)).
Such term shall not include any amount attributable to a payment under subsection (a)(2).
(2) Reduction for certain distributions
(A) In general
The qualified retirement savings contributions determined under paragraph (1) for a taxable year shall be reduced (but not below zero) by the aggregate distributions received by the individual during the testing period from any entity of a type to which contributions under paragraph (1) may be made.
(B) Testing period
For purposes of subparagraph (A), the testing period, with respect to a taxable year, is the period which includes—
(i) such taxable year,
(ii) the 2 preceding taxable years, and
(iii) the period after such taxable year and before the due date (including extensions) for filing the return of tax for such taxable year.
(C) Excepted distributions
There shall not be taken into account under subparagraph (A)—
(i) any distribution referred to in section 72(p), 401(k)(8), 401(m)(6), 402(g)(2), 404(k), or 408(d)(4),
(ii) any distribution to which section 408(d)(3) or 408A(d)(3) applies, and
(iii) any portion of a distribution if such portion is transferred or paid in a rollover contribution (as defined in section 402(c), 403(a)(4), 403(b)(8), 408A(e), or 457(e)(16)) to an account or plan to which qualified retirement savings contributions can be made.
(D) Treatment of distributions received by spouse of individual
For purposes of determining distributions received by an individual under subparagraph (A) for any taxable year, any distribution received by the spouse of such individual shall be treated as received by such individual if such individual and spouse file a joint return for such taxable year and for the taxable year during which the spouse receives the distribution.
(e) Applicable retirement savings vehicle
(1) In general
The term "applicable retirement savings vehicle" means an account or plan elected by the eligible individual under paragraph (2).
(2) Election
Any such election to have contributed the amount determined under subsection (a) shall be to an account or plan which—
(A) is—
(i) the portion of a plan which—
(I) is described in clause (v) of section 402(c)(8)(B), is a qualified cash or deferred arrangement (within the meaning of section 401(k)), or is an annuity contract described in section 403(b) which is purchased under a salary reduction agreement, and
(II) does not consist of a qualified Roth contribution program (as defined in section 402A(b)), or
(ii) an individual retirement plan which is not a Roth IRA,
(B) is for the benefit of the eligible individual,
(C) accepts contributions made under this section, and
(D) is designated by such individual (in such form and manner as the Secretary may provide).
(f) Other definitions and special rules
(1) Modified adjusted gross income
For purposes of this section, the term "modified adjusted gross income" means adjusted gross income—
(A) determined without regard to sections 911, 931, and 933, and
(B) determined without regard to any exclusion or deduction allowed for any qualified retirement savings contribution made during the taxable year.
(2) Treatment of contributions
In the case of any contribution under subsection (a)(2)—
(A) except as otherwise provided in this section or by the Secretary under regulations, such contribution shall be treated as—
(i) an elective deferral made by the individual, if contributed to an applicable retirement savings vehicle described in subsection (e)(2)(A)(i), or
(ii) as an individual retirement plan contribution made by such individual, if contributed to such a plan,
(B) such contribution shall not be taken into account with respect to any applicable limitation under sections 402(g)(1), 403(b), 408(a)(1), 408(b)(2)(B), 408A(c)(2), 414(v)(2), 415(c), or 457(b)(2), and shall be disregarded for purposes of sections 401(a)(4), 401(k)(3), 401(k)(11)(B)(i)(III), and 416, and
(C) such contribution shall not be treated as an amount that may be paid, made available, or distributable to the participant under section 401(k)(2)(B)(i)(IV), 403(b)(7)(A)(i)(V), or 457(d)(1)(A)(iii).
(3) Treatment of qualified plans, etc.
A plan or arrangement to which a contribution is made under this section shall not be treated as violating any requirement under section 401, 403, 408, or 457 solely by reason of accepting such contribution.
(4) Erroneous matching contributions
(A) In general
If any contribution is erroneously paid under subsection (a)(2), including a payment that is not made to an applicable retirement savings vehicle, the amount of such erroneous payment shall be treated as an underpayment of tax (other than for purposes of part II of subchapter A of
(B) Distribution of erroneous matching contributions
In the case of a contribution to which subparagraph (A) applies—
(i) section 402(a), 403(a)(1), 403(b)(1), 408(d)(1), or 457(a)(1), whichever is applicable, shall not apply to any distribution of such contribution, and section 72(t) shall not apply to the distribution of such contribution or any income attributable thereto, if such distribution is received not later than the day prescribed by law (including extensions of time) for filing the individual's return for such taxable year, and
(ii) any plan or arrangement from which such a distribution is made under this subparagraph shall not be treated as violating any requirement under section 401, 403, or 457 solely by reason of making such distribution.
(5) Exception from reduction or offset
Any payment made to any individual under this section shall not be—
(A) subject to reduction or offset pursuant to subsection (c), (d), (e), or (f) of section 6402 or any similar authority permitting offset, or
(B) reduced or offset by other assessed Federal taxes that would otherwise be subject to levy or collection.
(6) Saver's match recovery payments
(A) In general
In the case of an applicable retirement savings vehicle to which contributions have been made under subsection (a)(2), and from which a specified early distribution has been made during the taxable year, if the aggregate amount of such contributions exceeds the account balance of such savings vehicle at the end of the such taxable year, the tax imposed by
(B) Specified early distribution
For purposes of this paragraph, the term "specified early distribution" means any portion of a distribution—
(i) which is from such applicable retirement savings vehicle to which a contribution has been made under subsection (a)(2),
(ii) which is includible in gross income, and
(iii) to which 72(t)(1) applies.
(C) Excess may be repaid
(i) In general
The increase in tax for any taxable year under subparagraph (A) shall be reduced (but not below zero) by so much of such specified early distribution as the individual elects to contribute to an applicable retirement savings vehicle not later than the day prescribed by law (including extensions of time) for filing such individual's return for such taxable year.
(ii) Contribution of excess
Any individual who elects to contribute an amount under clause (i) may make one or more contributions in an aggregate amount not to exceed the amount of the specified early distribution to which the election relates to an applicable retirement savings vehicle and to which a rollover contribution of such distribution could be made under section 402(c), 403(b)(8), 408(d)(3), or 457(e)(16), as the case may be.
(iii) Limitation on contributions to applicable retirement savings vehicle other than IRAs
The aggregate amount of contributions made by an individual under clause (ii) to any applicable savings retirement vehicle which is not an individual retirement plan shall not exceed the aggregate amount of specified early retirement distributions which are made from such savings retirement vehicle to such individual. Clause (ii) shall not apply to contributions to any applicable retirement savings vehicle which is not an individual retirement plan unless the individual is eligible to make contributions (other than those described in clause (ii)) to such retirement savings vehicle.
(iv) Treatment of repayments of distributions from applicable eligible retirement plans other than IRAs
If a contribution is made under clause (ii) with respect to a specified early distribution from an applicable savings retirement vehicle other than an individual retirement plan, then the taxpayer shall, to the extent of the amount of the contribution, be treated as having received such distribution in an eligible rollover distribution (as defined in section 402(c)(4)) and as having transferred the amount to the savings retirement vehicle in a direct trustee to trustee transfer within 60 days of the distribution.
(v) Treatment of repayments for distributions from IRAs
If a contribution is made under clause (ii) with respect to a specified early distribution from an individual retirement plan, then, to the extent of the amount of the contribution, such distribution shall be treated as a distribution described in section 408(d)(3) and as having been transferred to the applicable retirement savings vehicle in a direct trustee to trustee transfer within 60 days of the distribution.
(D) Rules to account for investment loss
The Secretary shall prescribe such rules as may be appropriate to reduce any increase in tax otherwise made under subparagraph (A) to properly account for the extent to which any portion of the excess described in such subparagraph is allocable to investment loss in the retirement savings vehicle.
(g) Provision by Secretary of information relating to contributions
In the case of an amount elected by an eligible individual to be contributed to an account or plan under subsection (e)(2), the Secretary shall provide general guidance applicable to the custodian of the account or the plan sponsor, as the case may be, detailing the treatment of such contribution under subsection (f)(2) and the reporting requirements with respect to such contribution under section 6058, particularly as such requirements are modified pursuant to section 102(c)(2) 1 of the SECURE 2.0 Act of 2022.
(h) Inflation adjustments
(1) In general
In the case of any taxable year beginning in a calendar year after 2027, the $41,000 amount in subsection (b)(3)(A)(i) 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 in which the taxable year begins, determined by substituting "calendar year 2026" for "calendar year 2016" in subparagraph (A)(ii) thereof.
(2) Rounding
Any increase determined under paragraph (1) shall be rounded to the nearest multiple of $1,000.
(Added
Editorial Notes
References in Text
Section 102(c)(2) of the SECURE 2.0 Act of 2022, referred to in subsec. (g), probably means section 103(c)(2) of div. T of
Statutory Notes and Related Subsidiaries
Effective Date
Treatment of Certain Possessions
"(1)
"(2)
"(3)
"(A) to whom a matching contribution is paid by the possession by reason of the amendments made by this section, or
"(B) who is eligible for a payment under a plan described in paragraph (2).
"(4)
"(5)
Promotion of Saver's Match
1 See References in Text note below.
CHAPTER 66 —LIMITATIONS
1 Section numbers editorially supplied.
Subchapter A—Limitations on Assessment and Collection
§6501. Limitations on assessment and collection
(a) General rule
Except as otherwise provided in this section, the amount of any tax imposed by this title shall be assessed within 3 years after the return was filed (whether or not such return was filed on or after the date prescribed) or, if the tax is payable by stamp, at any time after such tax became due and before the expiration of 3 years after the date on which any part of such tax was paid, and no proceeding in court without assessment for the collection of such tax shall be begun after the expiration of such period. For purposes of this chapter, the term "return" means the return required to be filed by the taxpayer (and does not include a return of any person from whom the taxpayer has received an item of income, gain, loss, deduction, or credit).
(b) Time return deemed filed
(1) Early return
For purposes of this section, a return of tax imposed by this title, except tax imposed by
(2) Return of certain employment and withholding taxes
For purposes of this section, if a return of tax imposed by
(3) Return executed by Secretary
Notwithstanding the provisions of paragraph (2) of section 6020(b), the execution of a return by the Secretary pursuant to the authority conferred by such section shall not start the running of the period of limitations on assessment and collection.
(4) Return of excise taxes
For purposes of this section, the filing of a return for a specified period on which an entry has been made with respect to a tax imposed under a provision of subtitle D (including a return on which an entry has been made showing no liability for such tax for such period) shall constitute the filing of a return of all amounts of such tax which, if properly paid, would be required to be reported on such return for such period.
(c) Exceptions
(1) False return
In the case of a false or fraudulent return with the intent to evade tax, the tax may be assessed, or a proceeding in court for collection of such tax may be begun without assessment, at any time.
(2) Willful attempt to evade tax
In case of a willful attempt in any manner to defeat or evade tax imposed by this title (other than tax imposed by subtitle A or B), the tax may be assessed, or a proceeding in court for the collection of such tax may be begun without assessment, at any time.
(3) No return
In the case of failure to file a return, the tax may be assessed, or a proceeding in court for the collection of such tax may be begun without assessment, at any time.
(4) Extension by agreement
(A) In general
Where, before the expiration of the time prescribed for the assessment of any tax imposed by this title, except the estate tax provided in
(B) Notice to taxpayer of right to refuse or limit extension
The Secretary shall notify the taxpayer of the taxpayer's right to refuse to extend the period of limitations, or to limit such extension to particular issues or to a particular period of time, on each occasion when the taxpayer is requested to provide such consent.
(5) Tax resulting from changes in certain income tax or estate tax credits
For special rules applicable in cases where the adjustment of certain taxes allowed as a credit against income taxes or estate taxes results in additional tax, see section 905(c) (relating to the foreign tax credit for income tax purposes) and section 2016 (relating to taxes of foreign countries, States, etc., claimed as credit against estate taxes).
(6) Termination of private foundation status
In the case of a tax on termination of private foundation status under section 507, such tax may be assessed, or a proceeding in court for the collection of such tax may be begun without assessment, at any time.
(7) Special rule for certain amended returns
Where, within the 60-day period ending on the day on which the time prescribed in this section for the assessment of any tax imposed by subtitle A for any taxable year would otherwise expire, the Secretary receives a written document signed by the taxpayer showing that the taxpayer owes an additional amount of such tax for such taxable year, the period for the assessment of such additional amount shall not expire before the day 60 days after the day on which the Secretary receives such document.
(8) Failure to notify Secretary of certain foreign transfers
(A) In general
In the case of any information which is required to be reported to the Secretary pursuant to an election under section 1295(b) or under section 1298(f), 6038, 6038A, 6038B, 6038D, 6046, 6046A, or 6048, the time for assessment of any tax imposed by this title with respect to any tax return, event, or period to which such information relates shall not expire before the date which is 3 years after the date on which the Secretary is furnished the information required to be reported under such section.
(B) Application to failures due to reasonable cause
If the failure to furnish the information referred to in subparagraph (A) is due to reasonable cause and not willful neglect, subparagraph (A) shall apply only to the item or items related to such failure.
(9) Gift tax on certain gifts not shown on return
If any gift of property the value of which (or any increase in taxable gifts required under section 2701(d) which) is required to be shown on a return of tax imposed by
(10) Listed transactions
If a taxpayer fails to include on any return or statement for any taxable year any information with respect to a listed transaction (as defined in section 6707A(c)(2)) which is required under section 6011 to be included with such return or statement, the time for assessment of any tax imposed by this title with respect to such transaction shall not expire before the date which is 1 year after the earlier of—
(A) the date on which the Secretary is furnished the information so required, or
(B) the date that a material advisor meets the requirements of section 6112 with respect to a request by the Secretary under section 6112(b) relating to such transaction with respect to such taxpayer.
(11) Certain orders of criminal restitution
In the case of any amount described in section 6201(a)(4), such amount may be assessed, or a proceeding in court for the collection of such amount may be begun without assessment, at any time.
(12) Certain taxes attributable to partnership adjustments
In the case of any partnership adjustment determined under subchapter C of
(A) in the case of an adjustment pursuant to the decision of a court in a proceeding brought under section 6234, such decision becomes final, or
(B) in any other case, 90 days after the date on which the notice of the final partnership adjustment is mailed under section 6231.
(d) Request for prompt assessment
Except as otherwise provided in subsection (c), (e), or (f), in the case of any tax (other than the tax imposed by
(1)(A) such written request notifies the Secretary that the corporation contemplates dissolution at or before the expiration of such 18-month period, (B) the dissolution is in good faith begun before the expiration of such 18-month period, and (C) the dissolution is completed;
(2)(A) such written request notifies the Secretary that a dissolution has in good faith been begun, and (B) the dissolution is completed; or
(3) a dissolution has been completed at the time such written request is made.
(e) Substantial omission of items
Except as otherwise provided in subsection (c)—
(1) Income taxes
In the case of any tax imposed by subtitle A—
(A) General rule
If the taxpayer omits from gross income an amount properly includible therein and—
(i) such amount is in excess of 25 percent of the amount of gross income stated in the return, or
(ii) such amount—
(I) is attributable to one or more assets with respect to which information is required to be reported under section 6038D (or would be so required if such section were applied without regard to the dollar threshold specified in subsection (a) thereof and without regard to any exceptions provided pursuant to subsection (h)(1) thereof), and
(II) is in excess of $5,000,
the tax may be assessed, or a proceeding in court for collection of such tax may be begun without assessment, at any time within 6 years after the return was filed.
(B) Determination of gross income
For purposes of subparagraph (A)—
(i) In the case of a trade or business, the term "gross income" means the total of the amounts received or accrued from the sale of goods or services (if such amounts are required to be shown on the return) prior to diminution by the cost of such sales or services;
(ii) An understatement of gross income by reason of an overstatement of unrecovered cost or other basis is an omission from gross income; and
(iii) In determining the amount omitted from gross income (other than in the case of an overstatement of unrecovered cost or other basis), there shall not be taken into account any amount which is omitted from gross income stated in the return if such amount is disclosed in the return, or in a statement attached to the return, in a manner adequate to apprise the Secretary of the nature and amount of such item.
(C) Constructive dividends
If the taxpayer omits from gross income an amount properly includible therein under section 951(a), the tax may be assessed, or a proceeding in court for the collection of such tax may be done without assessing, at any time within 6 years after the return was filed.
(2) Estate and gift taxes
In the case of a return of estate tax under
(3) Excise taxes
In the case of a return of a tax imposed under a provision of subtitle D, if the return omits an amount of such tax properly includible thereon which exceeds 25 percent of the amount of such tax reported thereon, the tax may be assessed, or a proceeding in court for the collection of such tax may be begun without assessment, at any time within 6 years after the return is filed. In determining the amount of tax omitted on a return, there shall not be taken into account any amount of tax imposed by
(f) Personal holding company tax
If a corporation which is a personal holding company for any taxable year fails to file with its return under
(1) the items of gross income and adjusted ordinary gross income, described in section 543, received by the corporation during such year, and
(2) the names and addresses of the individuals who owned, within the meaning of section 544 (relating to rules for determining stock ownership), at any time during the last half of such year more than 50 percent in value of the outstanding capital stock of the corporation,
the personal holding company tax for such year may be assessed, or a proceeding in court for the collection of such tax may be begun without assessment, at any time within 6 years after the return for such year was filed.
(g) Certain income tax returns of corporations
(1) Trusts or partnerships
If a taxpayer determines in good faith that it is a trust or partnership and files a return as such under subtitle A, and if such taxpayer is thereafter held to be a corporation for the taxable year for which the return is filed, such return shall be deemed the return of the corporation for purposes of this section.
(2) Exempt organizations
If a taxpayer determines in good faith that it is an exempt organization and files a return as such under section 6033, and if such taxpayer is thereafter held to be a taxable organization for the taxable year for which the return is filed, such return shall be deemed the return of the organization for purposes of this section.
(3) DISC
If a corporation determines in good faith that it is a DISC (as defined in section 992(a)) and files a return as such under section 6011(c)(2) and if such corporation is thereafter held to be a corporation which is not a DISC for the taxable year for which the return is filed, such return shall be deemed the return of a corporation which is not a DISC for purposes of this section.
(h) Net operating loss or capital loss carrybacks
In the case of a deficiency attributable to the application to the taxpayer of a net operating loss carryback or a capital loss carryback (including deficiencies which may be assessed pursuant to the provisions of section 6213(b)(3)), such deficiency may be assessed at any time before the expiration of the period within which a deficiency for the taxable year of the net operating loss or net capital loss which results in such carryback may be assessed.
(i) Foreign tax carrybacks
In the case of a deficiency attributable to the application to the taxpayer of a carryback under section 904(c) (relating to carryback and carryover of excess foreign taxes) or under section 907(f) (relating to carryback and carryover of disallowed foreign oil and gas taxes), such deficiency may be assessed at any time before the expiration of one year after the expiration of the period within which a deficiency may be assessed for the taxable year of the excess taxes described in section 904(c) or 907(f) which result in such carryback.
(j) Certain credit carrybacks
(1) In general
In the case of a deficiency attributable to the application to the taxpayer of a credit carryback (including deficiencies which may be assessed pursuant to the provisions of section 6213(b)(3)), such deficiency may be assessed at any time before the expiration of the period within which a deficiency for the taxable year of the unused credit which results in such carryback may be assessed, or with respect to any portion of a credit carryback from a taxable year attributable to a net operating loss carryback, capital loss carryback, or other credit carryback from a subsequent taxable year, at any time before the expiration of the period within which a deficiency for such subsequent taxable year may be assessed.
(2) Credit carryback defined
For purposes of this subsection, the term "credit carryback" has the meaning given such term by section 6511(d)(4)(C).
(k) Tentative carryback adjustment assessment period
In a case where an amount has been applied, credited, or refunded under section 6411 (relating to tentative carryback and refund adjustments) by reason of a net operating loss carryback, a capital loss carryback, or a credit carryback (as defined in section 6511(d)(4)(C)) to a prior taxable year, the period described in subsection (a) of this section for assessing a deficiency for such prior taxable year shall be extended to include the period described in subsection (h) or (j), whichever is applicable; except that the amount which may be assessed solely by reason of this subsection shall not exceed the amount so applied, credited, or refunded under section 6411, reduced by any amount which may be assessed solely by reason of subsection (h) or (j), as the case may be.
(l) Special rule for chapter 42 and similar taxes
(1) In general
For purposes of any tax imposed by section 4912, by
(2) Certain contributions to section 501(c)(3) organizations
In the case of a deficiency of tax of a private foundation making a contribution in the manner provided in section 4942(g)(3) (relating to certain contributions to section 501(c)(3) organizations) attributable to the failure of a section 501(c)(3) organization to make the distribution prescribed by section 4942(g)(3), such deficiency may be assessed at any time before the expiration of one year after the expiration of the period within which a deficiency may be assessed for the taxable year with respect to which the contribution was made.
(3) Certain set-asides described in section 4942(g)(2)
In the case of a deficiency attributable to the failure of an amount set aside by a private foundation for a specific project to be treated as a qualifying distribution under the provisions of section 4942(g)(2)(B)(ii), such deficiency may be assessed at any time before the expiration of 2 years after the expiration of the period within which a deficiency may be assessed for the taxable year to which the amount set aside relates.
(4) Individual retirement plans
(A) In general
For purposes of any tax imposed by section 4973 or 4974 in connection with an individual retirement plan, the return referred to in this section shall include the income tax return filed by the person on whom the tax under such section is imposed for the year in which the act (or failure to act) giving rise to the liability for such tax occurred.
(B) Rule in case of individuals not required to file return
In the case of a person who is not required to file an income tax return for such year—
(i) the return referred to in this section shall be the income tax return that such person would have been required to file but for the fact that such person was not required to file such return, and
(ii) the 3-year period referred to in subsection (a) with respect to the return shall be deemed to begin on the date by which the return would have been required to be filed (excluding any extension thereof).
(C) Period for assessment in case of income tax return
In any case in which the return with respect to a tax imposed by section 4973 is the individual's income tax return for purposes of this section, subsection (a) shall be applied by substituting a 6-year period in lieu of the 3-year period otherwise referred to in such subsection.
(D) Exception for certain acquisitions of property
In the case of any tax imposed by section 4973 that is attributable to acquiring property for less than fair market value, subparagraph (A) shall not apply.
(m) Deficiencies attributable to election of certain credits
The period for assessing a deficiency attributable to any election under section 30B(h)(9), 30C(e)(4), 30D(f)(6), 35(g)(11), 40(f), 43, 45B, 45C(d)(4), 45H(g), or 51(j) (or any revocation thereof) shall not expire before the date 1 year after the date on which the Secretary is notified of such election (or revocation).
(n) Assessable payment of employer shared responsibility
In the case of any assessable payment under section 4980H, the period for assessment shall expire at the end of the 6-year period beginning on the due date for filing the return under section 6056 (or, if later, the date such return was filed) for the calendar year with respect to which such payment is determined.
(o) Cross reference
For period of limitations for assessment and collection in the case of a joint income return filed after separate returns have been filed, see section 6013(b)(3) and (4).
(Aug. 16, 1954, ch. 736,