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