§7623. Expenses of detection of underpayments and fraud, etc.

The Secretary, under regulations prescribed by the Secretary, is authorized to pay such sums as he deems necessary for-

(1) detecting underpayments of tax, and

(2) detecting and bringing to trial and punishment persons guilty of violating the internal revenue laws or conniving at the same,

in cases where such expenses are not otherwise provided for by law. Any amount payable under the preceding sentence shall be paid from the proceeds of amounts (other than interest) collected by reason of the information provided, and any amount so collected shall be available for such payments.

(Aug. 16, 1954, ch. 736, 68A Stat. 904 ; Pub. L. 94–455, title XIX, §1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834 ; Pub. L. 104–168, title XII, §1209(a), July 30, 1996, 110 Stat. 1473 .)

Amendments

1996-Pub. L. 104–168 substituted "of underpayments and fraud, etc." for "and punishment of frauds" in section catchline and amended text generally. Prior to amendment, text read as follows: "The Secretary, under regulations prescribed by the Secretary, is authorized to pay such sums, not exceeding in the aggregate the sum appropriated therefor, as he may deem necessary for detecting and bringing to trial and punishment persons guilty of violating the internal revenue laws, or conniving at the same, in cases where such expenses are not otherwise provided for by law."

1976-Pub. L. 94–455 struck out "or his delegate" after "Secretary" wherever appearing.

Effective Date of 1996 Amendment

Section 1209(c) of Pub. L. 104–168 provided that: "The amendments made by this section [amending this section] shall take effect on the date which is 6 months after the date of the enactment of this Act [July 30, 1996]."

Study of Payments Made for Detection of Underpayments and Fraud

Pub. L. 105–206, title III, §3804, July 22, 1998, 112 Stat. 783 , provided that: "Not later than 1 year after the date of the enactment of this Act [July 22, 1998], the Secretary of the Treasury shall conduct a study and report to Congress on the use of section 7623 of the Internal Revenue Code of 1986 including-

"(1) an analysis of the present use of such section and the results of such use; and

"(2) any legislative or administrative recommendations regarding the provisions of such section and its application."

Annual Report to Congress on Payments Made Under This Section and Resultant Collections

Section 1209(d) of Pub. L. 104–168 provided that: "The Secretary of the Treasury or his delegate shall submit an annual report to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate on the payments under section 7623 of the Internal Revenue Code of 1986 during the year and on the amounts collected for which such payments were made."

Section Referred to in Other Sections

This section is referred to in title 42 section 1395b–5.