§ 6864. Termination of extended period for payment in case of carryback. For termination of extensions of time for payment of income tax granted to corporations expecting carrybacks in case of jeopardy, see section 6164 (h). (Aug. 16, 1954, ch. 736, 68A Stat. 837.) Subchapter B.-Bankruptcy and Receiverships Sec. 6871. Claims for income, estate, and gift taxes in bankruptcy and receivership proceedings. 6872. Suspension of period on assessment. 6873. Unpaid claims. § 6871. Claims for income, estate, and gift taxes in bankruptcy and receivership proceedings. (a) Immediate assessment. Upon the adjudication of bankruptcy of any taxpayer in any liquidating proceeding, the filing or (where approval is required by the Bankruptcy Act) the approval of a petition of, or the approval of a petition against, any taxpayer in any other bankruptcy proceeding, or the appointment of a receiver for any taxpayer in any receivership proceeding before any court of the United States or of any State or Territory or of the District of Columbia, any deficiency (together with all interest, additional amcunts, or additions to the tax provided by law) determined by the Secretary or his delegate in respect of a tax imposed by subtitle A or B upon such taxpayer shall, despite the restrictions imposed by section 6213 (a) upon assessments, be immediately assessed if such deficiency has not theretofore been assessed in accordance with law. (b) Claim filed despite pendency of Tax Court proceedings. In the case of a tax imposed by subtitle A or B claims for the deficiency and such interest, additional amounts, and additions to the tax may be presented, for adjudication in accordance with law, to the court before which the bankruptcy or receivership proceeding is pending, despite the pendency of proceedings for the redetermination of the deficiency in pursuance of a petition to the Tax Court; but no petition for any such redetermination shall be filed with the Tax Court after the adjudication of backruptcy, the filing or (where approval is required by the Bankruptcy Act) the approval of a petition of, or the approval of a petition against, any taxpayer in any other bankruptcy proceeding, or the appointment of the receiver. (Aug. 16, 1954, ch. 736, 68A Stat. 838; Sept. 2, 1958, Pub. L. 85-866, title I, § 88, 72 Stat. 1665.) REFERENCES IN TEXT The Bankruptcy Act, referred to in subsecs. (a) and (b), is classified generally to Title 11, Bankruptcy. AMENDMENTS 1958 Subsec. (a). Pub. L. 85-866, § 88(a), substituted "the filing or (where approval is required by the Bankruptcy Act) the approval of a petition of, or the approval of a petition against, any taxpayer" for "the approval of a petition of, or against, any taxpayer". Subsec. (b). Pub. L. 85–866, § 88(b), substituted "the filing or (where approval is required by the Bankruptcy Act) the approval of a petition of, or the approval of a petition against, any taxpayer" for "approval of the petition". EFFECTIVE DATE OF 1958 AMENDMENT Amendment of subsecs. (a) and (b) of this section by Pub. L. 85-866 effective Aug. 17, 1954, see section 1(c) of Pub. L. 85-866, set out as a note under section 165 of this title. § 6872. Suspension of period on assessment. If the regulations issued pursuant to section 6036 require the giving of notice by any fiduciary in any proceeding under the Bankruptcy Act, or by a receiver in any other court proceeding, to the Secretary or his delegate of his qualification as such, the running of the period of limitations on the making of assessments shall be suspended for the period from the date of the institution of the proceeding to a date 30 days after the date upon which the notice from the receiver or other fiduciary is received by the Secretary or his delegate; but the suspension under this sentence shall in no case be for a period in excess of 2 years. (Aug. 16, 1954, ch. 736, 68A Stat. 838.) The amounts of the following liabilities shall, except as hereinafter in this section provided, be assessed, paid, and collected in the same manner and subject to the same provisions and limitations as in the case of the taxes with respect to which the liabilities were incurred: (1) Income, estate, and gift taxes. (A) Transferees. The liability, at law or in equity, of a transferee of property (i) of a taxpayer in the case of a tax imposed by subtitle A (relating to income taxes), (ii) of a decedent in the case of a tax imposed by chapter 11 (relating to estate taxes), or (iii) of a donor in the case of a tax imposed by chapter 12 (relating to gift taxes), in respect of the tax imposed by subtitle A or B. (B) Fiduciaries. The liability of a fiduciary under section 3467 of the Revised Statutes (31 U. S. C. 192) in respect of the payment of any tax described in subparagraph (A) from the estate of the taxpayer, the decedent, or the donor, as the case may be. (2) Other taxes. The liability, at law or in equity of a transferee of property of any person liable in respect of any tax imposed by this title (other than a tax imposed by subtitle A or B), but only if such liability arises on the liquidation of a partnership or corporation, or on a reorganization within the meaning of section 368 (a). (b) Liability. Any liability referred to in subsection (a) may be either as to the amount of tax shown on a return or as to any deficiency or underpayment of any tax. (c) Period of limitations. The period of limitations for assessment of any such liability of a transferee or a fiduciary shall be as follows: (1) Initial transferee. In the case of the liability of an initial transferee, within 1 year after the expiration of the period of limitation for assessment against the transferor; (2) Transferee of transferee. In the case of the liability of a transferee of a transferee, within 1 year after the expiration of the period of limitation for assessment against the preceding transferee, but not more than 3 years after the expiration of the period of limitation for assessment against the initial transferor; except that if, before the expiration of the period of limitation for the assessment of the liability of the transferee, a court proceeding for the collection of the tax or liability in respect thereof has been begun against the initial transferor or the last preceding transferee, respectively, then the period of limitation for assessment of the liability of the transferee shall expire 1 year after the return of execution in the court proceeding. (3) Fiduciary. In the case of the liability of a fiduciary, not later than 1 year after the liability arises or not later than the expiration of the period for collection of the tax in respect of which such liability arises, whichever is the later. (d) Extension by agreement. (1) Extension of time for assessment. If before the expiration of the time prescribed in subsection (c) for the assessment of the liability, the Secretary or his delegate and the transferee or fiduciary have both consented in writing to its assessment after such time, the liability may be assessed at any time prior to the expiration of the period agreed upon. The period so agreed upon may be extended by subsequent agreements in writing made before the expiration of the period previously agreed upon. For the purpose of determining the period of limitation on credit or refund to the transferee or fiduciary of overpayments of tax made by such transferee or fiduciary or overpayments of tax made by the transferor of which the transferee or fiduciary is legally entitled to credit or refund, such agreement and any extension thereof shall be deemed an agreement and extension thereof referred to in section 6511 (c). (2) Extension of time for credit or refund. If the agreement is executed after the expiration of the period of limitation for assessment against the taxpayer with reference to whom the liability of such transferee or fiduciary arises, then in applying the limitations under section 6511 (c) on the amount of the credit or refund, the periods specified in section 6511 (b) (2) shall be increased by the period from the date of such expiration to the date of the agreement. (e) Period for assessment against transferor. For purposes of this section, if any person is deceased, or is a corporation which has terminated its existence, the period of limitation for assessment against such person shall be the period that would be in effect had death or termination of existence not occurred. (f) Suspension of running of period of limitations. The running of the period of limitations upon the assessment of the liability of a transferee or fiduciary shall, after the mailing to the transferee or fiduciary of the notice provided for in section 6212 (relating to income, estate, and gift taxes), be suspended for the period during which the Secretary or his delegate is prohibited from making the assessment in respect of the liability of the transferee or fiduciary (and in any event, if a proceeding in respect of the liability is placed on the docket of the Tax Court, until the decision of the Tax Court becomes final), and for 60 days thereafter. (g) Address for notice of liability. In the absence of notice to the Secretary or his delegate under section 6903 of the existence of a fiduciary relationship, any notice of liability enforceable under this section required to be mailed to such person, shall, if mailed to the person subject to the liability at his last known address, be sufficient for purposes of this title, even if such person is deceased, or is under a legal disability, or, in the case of a corporation, has terminated its existence. (h) Definition of transferee. As used in this section, the term "transferee" includes donee, heir, legatee, devisee, and distributee, and with respect to estate taxes, also includes any person who, under section 6324 (a) (2), is personally liable for any part of such tax. (i) Extension of time. For extensions of time by reason of armed service in a combat zone, see section 7508. (Aug. 16, 1954, ch. 736, 68A Stat. 841.) CROSS REFERENCES Gifts for reduction of public debt subject to gift or inheritance tax payments, see section 903 of Title 31, Money and Finance. Prohibition of suits to restrain assessment or collection. see section 7421 of this title. Suspension of running of period of limitation, see section 6503 of this title. Time for performing certain acts postponed by reason of war, see section 7508 of this title. § 6902. Provisions of special application to transferees. (a) Burden of proof. In proceedings before the Tax Court the burden of proof shall be upon the Secretary or his delegate to show that a petitioner is liable as a transferee of property of a taxpayer, but not to show that the taxpayer was liable for the tax. (b) Evidence. Upon application to the Tax Court, a transferee of property of a taxpayer shall be entitled, under rules prescribed by the Tax Court, to a preliminary examination of books, papers, documents, correspondence, and other evidence of the taxpayer or a preceding transferee of the taxpayer's property, if the transferee making the application is a petitioner before the Tax Court for the redetermination of his liability in respect of the tax (including interest, additional amounts, and additions to the tax provided by law) imposed upon the taxpayer. Upon such application, the Tax Court may require by subpoena, ordered by the Tax Court or any division thereof and signed by a judge, the production of all such books, papers, documents, correspondence, and other evidence within the United States the production of which, in the opinion of the Tax Court or division thereof, is necessary to enable the transferee to ascertain the liability of the taxpayer or preceding transferee and will not result in undue hardship to the taxpayer or preceding transferee. Such examination shall be had at such time and place as may be designated in the subpoena. (Aug. 16, 1954, ch. 736, 68A Stat. 843.) CROSS REFERENCES Burden of proof in fraud cases, see section 7454 of this title. RULES OF PRACTICE IN THE TAX COURT Burden of proof, see rule 32, Appendix to this title. Subpoenas, see rule 44, Appendix to this title. § 6903. Notice of fiduciary relationship. (a) Rights and obligations of fiduciary. Upon notice to the Secretary or his delegate that any person is acting for another person in a fiduciary capacity, such fiduciary shall assume the powers, rights, duties, and privileges of such other person in respect of a tax imposed by this title (except as otherwise specifically provided and except that the tax shall be collected from the estate of such other person), until notice is given that the fiduciary capacity has terminated. (b) Manner of notice. Notice under this section shall be given in accordance with regulations prescribed by the Secretary or his delegate. (Aug. 16, 1954, ch. 736, 68A Stat. 843.) CROSS REFERENCES Address for notice of Deficiency, see section 6212 of this title. Notice of qualification as executor or receiver, see section 6036 of this title. § 6904. Prohibition of injunctions. For prohibition of suits to restrain enforcement of liability of transferee, or fiduciary, see section 7421 (b). (Aug. 16, 1954, ch. 736, 68A Stat. 843.) 36-500 0-65-vol. 665 7001. Collection of foreign items. § 7001. Collection of foreign items. (a) License. All persons undertaking as a matter of business or for profit the collection of foreign payments of interest or dividends by means of coupons, checks, or bills of exchange shall obtain a license from the Secretary or his delegate and shall be subject to such regulations enabling the Government to obtain the information required under subtitle A (relating to income taxes) as the Secretary or his delegate shall prescribe. (b) Penalty for failure to obtain license. For penalty for failure to obtain the license provided for in this section, see section 7231. (Aug. 16, 1954, ch. 736, 68A Stat. 845.) 7011. Registration-persons paying a special tax. 7012. Cross references. § 7011. Registration-persons paying a special tax. (a) Requirement. Every person engaged in any trade or business on which a special tax is imposed by law shall register with the Secretary or his delegate his name or style, place of residence, trade or business, and the place where such trade or business is to be carried on. In case of a firm or company, the names of the several persons constituting the same, and the places of residence, shall be so registered. (b) Registration in case of death or change of location. Any person exempted under the provisions of section 4905 from the payment of a special tax, shall register with the Secretary or his delegate in accordance with regulations prescribed by the Secretary (Aug. 16, 1954, ch. 736, 68A Stat. 845.) CROSS REFERENCES Death or change of location, see section 5144 of this title. Penalty for failure to register, see section 7272 of this title. § 7012. Cross references. (a) Narcotic Drugs.-For provisions relating to registration in relation to narcotic drugs, see section 4722. (b) Marihuana. For provisions relating to registration in relation to marihuana, see section 4753. (c) Firearms.-For provisions relating to registration in connection with firearms, see sections 5802, 5841, and 5854. (d) For provisions relating to registration in relation to the manufacture of playing cards, see section 4455. (e) For provisions relating to registration in relation to the manufacture of white phosphorus matches, see section 4804 (d). (f) For special rules with respect to registration by persons engaged in receiving wagers, see section 4412. (g) For provisions relating to registration in relation to the production or importation of gasoline, see section 4101. (h) For provisions relating to registration in relation to the manufacture or production of lubricating oils, see section 4101. § 7102. Single bond in lieu of multiple bonds. In any case in which two or more bonds are required or authorized, the Secretary or his delegate may provide for the acceptance of a single bond complying with the requirements for which the several bonds are required or authorized. (Aug. 16, 1954, ch. 736, 68A Stat. 847.) § 7103. Cross references-other provisions for bonds. (a) Extensions of time. (1) For bond where time to pay tax or deficiency has been extended, see section 6165. (2) For bond to stay collection of a jeopardy assessment, see section 6863. (3) For bond to stay assessment and collection prior to review of a Tax Court decision, see section 7485. (4) For furnishing of bond where taxable year is closed by the Secretary or his delegate, see section 6851 (e). (5) For bond in case of an election to postpone payment of estate tax where the value of a reversionary or remainder interest is included in the gross estate, see section 6165. (b) Release of lien or seized property. (1) For the release of the lien provided for in section 6325 by furnishing the Secretary or his delegate a bond, see section 6325 (a) (2). (2) For bond to obtain release of perishable goods which have been seized under forfeiture proceeding, see section 7324 (3). (3) For bond to release perishable goods under levy, see section 6336. (4) For bond executed by claimant of seized goods valued at $1000 or less, see section 7325 (3). (c) Miscellaneous. (1) For bond as a condition precedent to the allowance of the credit for accrued foreign taxes, see section 905 (c). (2) For bonds relating to alcohol and tobacco taxes, see generally subtitle E. (d) Bonds required with respect to certain products. (1) For bond in case of articles taxable under subchapter B of chapter 37 processed for exportation without payment of the tax provided therein, see section 4513 (c). (2) For bond in case of oleomargarine removed from the place of manufacture for exportation to a foreign country, see section 4593 (b). (3) For requirement of bonds with respect to certain industries see (A) section 4596 relating to a manufacturer of oleomargarine; (B) section 4814 (c) relating to a manufacturer of process or renovated butter or adulterated butter; (C) section 4833 (c) relating to a manufacturer of filled cheese; (D) section 4713 (b) relating to a manufacturer of opium suitable for smoking purposes; (E) section 4804 (c) relating to a manufacturer of white phosphorus matches; (F) section 4101 relating to a producer or importer of gasoline or a manufacturer or producer of lubricating oils subject to tax under chapter 32. (e) Personnel bonds. (1) For bonds of internal revenue personnel to insure faithful performance of duties, see section 7803 (e). (2) For jurisdiction of United States district courts, concurrently with the courts of the several States, in an action on the official bond of any internal revenue officer or employee, see section 7402 (d). (3) For bonds of postmasters to whom stamps have been furnished under section 6802 (1), see section 6803 (a) (1). (4) For bonds in cases coming within the provisions of section 6802 (2) or (3), relating to stamps furnished a designated depositary of the United States or State agent, see section 6803 (b) (1). (Aug. 16, 1954, ch. 736, 68A Stat. 847.) REFERENCES IN TEXT Section 4513(c), referred to in par. (1) of subsec. (d), was repealed by Pub. L. 87-456, title III, § 302(d), May 24, 1962, 76 Stat. 77. Chapter 74.-CLOSING AGREEMENTS AND COMPROMISES Sec. § 7121. Closing agreements. The Secretary or his delegate is authorized to enter into an agreement in writing with any person relating to the liability of such person (or of the person or estate for whom he acts) in respect of any internal revenue tax for any taxable period. (b) Finality. If such agreement is approved by the Secretary or his delegate (within such time as may be stated in such agreement, or later agreed to) such agreement shall be final and conclusive, and, except upon a showing of fraud or malfeasance, or misrepresentation of a material fact (1) the case shall not be reopened as to the matters agreed upon or the agreement modified by any officer, employee, or agent of the United States, and (2) in any suit, action, or proceeding, such agreement, or any determination, assessment, collection, payment, abatement, refund, or credit made in accordance therewith, shall not be annulled, modified, set aside, or disregarded. (Aug. 16, 1954, ch. 736, 68A Stat. 849.) CROSS REFERENCES Deduction for deficiency dividends, see section 547 of this title. Fraud and false statements, see section 7206 of this title. Joint returns of income tax by husband and wife, see section 6013 of this title. Mitigation of effect of limitations and other provisions, see section 1313 of this title. § 7122. Compromises. (a) Authorization. The Secretary or his delegate may compromise any civil or criminal case arising under the internal revenue laws prior to reference to the Department of Justice for prosecution or defense; and the Attorney General or his delegate may compromise any such case after reference to the Department of Justice for prosecution or defense. (b) Record. Whenever a compromise is made by the Secretary or his delegate in any case, there shall be placed on file in the office of the Secretary or his delegate the opinion of the General Counsel for the Department of the Treasury or his delegate, with his reasons therefor, with a statement of— (1) The amount of tax assessed, (2) The amount of interest, additional amount, addition to the tax, or assessable penalty, imposed by law on the person against whom the tax is assessed, and (3) The amount actually paid in accordance with the terms of the compromise. Notwithstanding the foregoing provisions of this subsection, no such opinion shall be required with respect to the compromise of any civil case in which the unpaid amount of tax assessed (including any interest, additional amount, addition to the tax, or assessable penalty) is less than $500. (Aug. 16, 1954, ch. 736, 68A Stat. 849.) Sec. PART I.-GENERAL PROVISIONS 7201. Attempt to evade or defeat tax. 7202. Willful failure to collect or pay over tax. 7203. Willful failure to file return, supply information, or pay tax. 7204. Fraudulent statement or failure to make statement to employees. 7205. Fraudulent withholding exemption certificate or failure to supply information. 7206. Fraud and false statements. 7207. Fraudulent returns, statements, or other documents. 7208. Offenses relating to stamps. 7209. Unauthorized use or sale of stamps. 7210. Failure to obey summons. 7211. False statements to purchasers or lessees relating to tax. 7212. Attempts to interfere with administration of internal revenue laws. 7213. Unauthorized disclosure of information. 7214. Offenses by officers and employees of the United States. 7215. Offenses with respect to collected taxes. AMENDMENTS 1958-Pub. L. 85-321, § 3(b), Feb. 11, 1958, 72 Stat. 6 added item 7215. § 7201. Attempt to evade or defeat tax. Any person who willfully attempts in any manner to evade or defeat any tax imposed by this title or the payment thereof shall, in addition to other penalties provided by law, be guilty of a felony and, upon conviction thereof, shall be fined not more than $10,000, or imprisoned not more than 5 years, or both, together with the costs of prosecution. (Aug. 16, 1954, ch. 736, 68A Stat. 851.) CROSS REFERENCES Costs in criminal proceedings, see section 1918 (b) of Title 28, Judiciary and Judicial Procedure. Definition of person, see section 7343 of this title. Effective date of this chapter, see section 7851 (a) (6) (C) (11) of this title. Failure to pay, or attempt to evade payment of, tax on cotton futures, see section 7233 of this title. Penalty for Delivery or disclosure of false or fraudulent return, statement or other document, see section 7207 of this title. Making or subscribing false return, see section 7206 (1) of this title. Period of limitation Criminal prosecutions arising under internal revenue § 7202. Willful failure to collect or pay over tax. Any person required under this title to collect, account for, and pay over any tax imposed by this title who willfully fails to collect or truthfully account for and pay over such tax shall, in addition to other penalties provided by law, be guilty of a felony and, upon conviction thereof, shall be fined not more than $10,000, or imprisoned not more than 5 years, or both, together with the costs of prosecution. (Aug. 16, 1954, ch. 736, 68A Stat. 851.) CROSS REFERENCES Costs in criminal proceedings, see section 1918 (b) of Title 28, Judiciary and Judicial Procedure. Effective date of this chapter, see section 7851 (a) (6) (C) (ii) of this title. Felony defined, see section 1 of Title 18, Crimes and Criminal Procedure. Period of limitation on criminal prosecutions, see section 6531 of this title. |