CHAPTER 76 —JUDICIAL PROCEEDINGS
Editorial Notes
Amendments
1998—
1976—
1966—
1 Section numbers editorially supplied.
Subchapter A—Civil Actions by the United States
Editorial Notes
Amendments
2007—
2004—
1987—
1982—
1976—
§7401. Authorization
No civil action for the collection or recovery of taxes, or of any fine, penalty, or forfeiture, shall be commenced unless the Secretary authorizes or sanctions the proceedings and the Attorney General or his delegate directs that the action be commenced.
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
1976—
§7402. Jurisdiction of district courts
(a) To issue orders, processes, and judgments
The district courts of the United States at the instance of the United States shall have such jurisdiction to make and issue in civil actions, writs and orders of injunction, and of ne exeat republica, orders appointing receivers, and such other orders and processes, and to render such judgments and decrees as may be necessary or appropriate for the enforcement of the internal revenue laws. The remedies hereby provided are in addition to and not exclusive of any and all other remedies of the United States in such courts or otherwise to enforce such laws.
(b) To enforce summons
If any person is summoned under the internal revenue laws to appear, to testify, or to produce books, papers, or other data, the district court of the United States for the district in which such person resides or may be found shall have jurisdiction by appropriate process to compel such attendance, testimony, or production of books, papers, or other data.
(c) For damages to United States officers or employees
Any officer or employee of the United States acting under authority of this title, or any person acting under or by authority of any such officer or employee, receiving any injury to his person or property in the discharge of his duty shall be entitled to maintain an action for damages therefor, in the district court of the United States, in the district wherein the party doing the injury may reside or shall be found.
[(d) Repealed. Pub. L. 92–310, title II, §230(d), June 6, 1972, 86 Stat. 209 ]
(e) To quiet title
The United States district courts shall have jurisdiction of any action brought by the United States to quiet title to property if the title claimed by the United States to such property was derived from enforcement of a lien under this title.
(f) General jurisdiction
For general jurisdiction of the district courts of the United States in civil actions involving internal revenue, see
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
1972—Subsec. (d).
1966—Subsecs. (e), (f).
Statutory Notes and Related Subsidiaries
Effective Date of 1966 Amendment
Amendment by
§7403. Action to enforce lien or to subject property to payment of tax
(a) Filing
In any case where there has been a refusal or neglect to pay any tax, or to discharge any liability in respect thereof, whether or not levy has been made, the Attorney General or his delegate, at the request of the Secretary, may direct a civil action to be filed in a district court of the United States to enforce the lien of the United States under this title with respect to such tax or liability or to subject any property, of whatever nature, of the delinquent, or in which he has any right, title, or interest, to the payment of such tax or liability. For purposes of the preceding sentence, any acceleration of payment under section 6166(g) shall be treated as a neglect to pay tax.
(b) Parties
All persons having liens upon or claiming any interest in the property involved in such action shall be made parties thereto.
(c) Adjudication and decree
The court shall, after the parties have been duly notified of the action, proceed to adjudicate all matters involved therein and finally determine the merits of all claims to and liens upon the property, and, in all cases where a claim or interest of the United States therein is established, may decree a sale of such property, by the proper officer of the court, and a distribution of the proceeds of such sale according to the findings of the court in respect to the interests of the parties and of the United States. If the property is sold to satisfy a first lien held by the United States, the United States may bid at the sale such sum, not exceeding the amount of such lien with expenses of sale, as the Secretary directs.
(d) Receivership
In any such proceeding, at the instance of the United States, the court may appoint a receiver to enforce the lien, or, upon certification by the Secretary during the pendency of such proceedings that it is in the public interest, may appoint a receiver with all the powers of a receiver in equity.
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
1981—Subsec. (a).
1976—Subsec. (a).
Subsecs. (c), (d).
1966—Subsec. (c).
Statutory Notes and Related Subsidiaries
Effective Date of 1981 Amendment
Amendment by
Effective Date of 1966 Amendment
Amendment by
§7404. Authority to bring civil action for estate taxes
If the estate tax imposed by
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
1976—
§7405. Action for recovery of erroneous refunds
(a) Refunds after limitation period
Any portion of a tax imposed by this title, refund of which is erroneously made, within the meaning of section 6514, may be recovered by civil action brought in the name of the United States.
(b) Refunds otherwise erroneous
Any portion of a tax imposed by this title which has been erroneously refunded (if such refund would not be considered as erroneous under section 6514) may be recovered by civil action brought in the name of the United States.
(c) Interest
For provision relating to interest on erroneous refunds, see section 6602.
(d) Periods of limitation
For periods of limitations on actions under this section, see section 6532(b).
(Aug. 16, 1954, ch. 736,
§7406. Disposition of judgments and moneys recovered
All judgments and moneys recovered or received for taxes, costs, forfeitures, and penalties shall be paid to the Secretary as collections of internal revenue taxes.
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
1976—
§7407. Action to enjoin tax return preparers
(a) Authority to seek injunction
A civil action in the name of the United States to enjoin any person who is a tax return preparer from further engaging in any conduct described in subsection (b) or from further acting as a tax return preparer may be commenced at the request of the Secretary. Any action under this section shall be brought in the District Court of the United States for the district in which the tax return preparer resides or has his principal place of business or in which the taxpayer with respect to whose tax return the action is brought resides. The court may exercise its jurisdiction over such action (as provided in section 7402(a)) separate and apart from any other action brought by the United States against such tax return preparer or any taxpayer.
(b) Adjudication and decrees
In any action under subsection (a), if the court finds—
(1) that a tax return preparer has—
(A) engaged in any conduct subject to penalty under section 6694 or 6695, or subject to any criminal penalty provided by this title,
(B) misrepresented his eligibility to practice before the Internal Revenue Service, or otherwise misrepresented his experience or education as a tax return preparer,
(C) guaranteed the payment of any tax refund or the allowance of any tax credit, or
(D) engaged in any other fraudulent or deceptive conduct which substantially interferes with the proper administration of the Internal Revenue laws, and
(2) that injunctive relief is appropriate to prevent the recurrence of such conduct,
the court may enjoin such person from further engaging in such conduct. If the court finds that a tax return preparer has continually or repeatedly engaged in any conduct described in subparagraphs (A) through (D) of this subsection and that an injunction prohibiting such conduct would not be sufficient to prevent such person's interference with the proper administration of this title, the court may enjoin such person from acting as a tax return preparer.
(Added
Editorial Notes
Prior Provisions
A prior section 7407 was renumbered
Amendments
2007—
Subsec. (a).
Subsec. (b).
1989—Subsec. (a).
Subsec. (c).
Statutory Notes and Related Subsidiaries
Effective Date of 2007 Amendment
Amendment by
Effective Date of 1989 Amendment
Effective Date
Section applicable to documents prepared after Dec. 31, 1976, see section 1203(j) of
§7408. Actions to enjoin specified conduct related to tax shelters and reportable transactions
(a) Authority to seek injunction
A civil action in the name of the United States to enjoin any person from further engaging in specified conduct may be commenced at the request of the Secretary. Any action under this section shall be brought in the district court of the United States for the district in which such person resides, has his principal place of business, or has engaged in specified conduct. The court may exercise its jurisdiction over such action (as provided in section 7402(a)) separate and apart from any other action brought by the United States against such person.
(b) Adjudication and decree
In any action under subsection (a), if the court finds—
(1) that the person has engaged in any specified conduct, and
(2) that injunctive relief is appropriate to prevent recurrence of such conduct,
the court may enjoin such person from engaging in such conduct or in any other activity subject to penalty under this title.
(c) Specified conduct
For purposes of this section, the term "specified conduct" means any action, or failure to take action, which is—
(1) subject to penalty under section 6700, 6701, 6707, or 6708, or
(2) in violation of any requirement under regulations issued under
(d) Citizens and residents outside the United States
If any citizen or resident of the United States does not reside in, and does not have his principal place of business in, any United States judicial district, such citizen or resident shall be treated for purposes of this section as residing in the District of Columbia.
(Added
Editorial Notes
Prior Provisions
A prior section 7408 was renumbered
Amendments
2004—
Subsecs. (a) to (d).
1984—Subsec. (a).
Subsec. (b).
Statutory Notes and Related Subsidiaries
Effective Date of 2004 Amendment
Effective Date of 1984 Amendment
Amendment by
Effective Date
§7409. Action to enjoin flagrant political expenditures of section 501(c)(3) organizations
(a) Authority to seek injunction
(1) In general
If the requirements of paragraph (2) are met, a civil action in the name of the United States may be commenced at the request of the Secretary to enjoin any section 501(c)(3) organization from further making political expenditures and for such other relief as may be appropriate to ensure that the assets of such organization are preserved for charitable or other purposes specified in section 501(c)(3). Any action under this section shall be brought in the district court of the United States for the district in which such organization has its principal place of business or for any district in which it has made political expenditures. The court may exercise its jurisdiction over such action (as provided in section 7402(a)) separate and apart from any other action brought by the United States against such organization.
(2) Requirements
An action may be brought under subsection (a) only if—
(A) the Internal Revenue Service has notified the organization of its intention to seek an injunction under this section if the making of political expenditures does not immediately cease, and
(B) the Commissioner of Internal Revenue has personally determined that—
(i) such organization has flagrantly participated in, or intervened in (including the publication or distribution of statements), any political campaign on behalf of (or in opposition to) any candidate for public office, and
(ii) injunctive relief is appropriate to prevent future political expenditures.
(b) Adjudication and decree
In any action under subsection (a), if the court finds on the basis of clear and convincing evidence that—
(1) such organization has flagrantly participated in, or intervened in (including the publication or distribution of statements), any political campaign on behalf of (or in opposition to) any candidate for public office, and
(2) injunctive relief is appropriate to prevent future political expenditures,
the court may enjoin such organization from making political expenditures and may grant such other relief as may be appropriate to ensure that the assets of such organization are preserved for charitable or other purposes specified in section 501(c)(3).
(c) Definitions
For purposes of this section, the terms "section 501(c)(3) organization" and "political expenditures" have the respective meanings given to such terms by section 4955.
(Added
Editorial Notes
Prior Provisions
A prior section 7409 was renumbered
§7410. Cross references
(1) For provisions for collecting taxes in general, see
(2) For venue in a civil action for the collection of any tax, see
(3) For venue of a proceeding for the recovery of any fine, penalty, or forfeiture, see
(Aug. 16, 1954, ch. 736,
Subchapter B—Proceedings by Taxpayers and Third Parties
Editorial Notes
Amendments
2007—
2004—
1997—
1996—
1988—
1982—
1976—
1966—
§7421. Prohibition of suits to restrain assessment or collection
(a) Tax
Except as provided in sections 6015(e), 6212(a) and (c), 6213(a), 6232(c), 6330(e)(1), 6331(i), 6672(c), 6694(c), 7426(a) and (b)(1), 7429(b), and 7436, no suit for the purpose of restraining the assessment or collection of any tax shall be maintained in any court by any person, whether or not such person is the person against whom such tax was assessed.
(b) Liability of transferee or fiduciary
No suit shall be maintained in any court for the purpose of restraining the assessment or collection (pursuant to the provisions of
(1) the amount of the liability, at law or in equity, of a transferee of property of a taxpayer in respect of any internal revenue tax, or
(2) the amount of the liability of a fiduciary under
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
2018—Subsec. (b)(2).
2015—Subsec. (a).
2000—Subsec. (a).
1998—Subsec. (a).
1997—Subsec. (a).
1982—Subsec. (b)(2).
1978—Subsec. (a).
1976—Subsec. (a).
1966—Subsec. (a).
Statutory Notes and Related Subsidiaries
Effective Date of 2015 Amendment
Amendment by
Effective Date of 1998 Amendments
Amendment by
Amendment by
Effective Date of 1997 Amendment
Amendment by section 1222(b)(1) of
Amendment by section 1239(e)(3) of
Amendment by section 1454(b)(2) of
Effective Date of 1978 Amendment
Amendment by
Effective Date of 1976 Amendment
Amendment by
Effective Date of 1966 Amendment
Amendment by
Prohibition on Requests to Taxpayers To Give Up Rights To Bring Actions
"(a)
"(b)
"(1) a taxpayer waives the right described in subsection (a) knowingly and voluntarily; or
"(2) the request by the officer or employee is made in person and the taxpayer's attorney or other federally authorized tax practitioner (within the meaning of section 7525(a)(3)(A) of the Internal Revenue Code of 1986) is present, or the request is made in writing to the taxpayer's attorney or other representative."
§7422. Civil actions for refund
(a) No suit prior to filing claim for refund
No suit or proceeding shall be maintained in any court for the recovery of any internal revenue tax alleged to have been erroneously or illegally assessed or collected, or of any penalty claimed to have been collected without authority, or of any sum alleged to have been excessive or in any manner wrongfully collected, until a claim for refund or credit has been duly filed with the Secretary, according to the provisions of law in that regard, and the regulations of the Secretary established in pursuance thereof.
(b) Protest or duress
Such suit or proceeding may be maintained whether or not such tax, penalty, or sum has been paid under protest or duress.
(c) Suits against collection officer a bar
A suit against any officer or employee of the United States (or former officer or employee) or his personal representative for the recovery of any internal revenue tax alleged to have been erroneously or illegally assessed or collected, or of any penalty claimed to have been collected without authority, or of any sum alleged to have been excessive or in any manner wrongfully collected shall be treated as if the United States had been a party to such suit in applying the doctrine of res judicata in all suits in respect of any internal revenue tax, and in all proceedings in the Tax Court and on review of decisions of the Tax Court.
(d) Credit treated as payment
The credit of an overpayment of any tax in satisfaction of any tax liability shall, for the purpose of any suit for refund of such tax liability so satisfied, be deemed to be a payment in respect of such tax liability at the time such credit is allowed.
(e) Stay of proceedings
If the Secretary prior to the hearing of a suit brought by a taxpayer in a district court or the United States Court of Federal Claims for the recovery of any income tax, estate tax, gift tax, or tax imposed by
(f) Limitation on right of action for refund
(1) General rule
A suit or proceeding referred to in subsection (a) may be maintained only against the United States and not against any officer or employee of the United States (or former officer or employee) or his personal representative. Such suit or proceeding may be maintained against the United States notwithstanding the provisions of
(2) Misjoinder and change of venue
If a suit or proceeding brought in a United States district court against an officer or employee of the United States (or former officer or employee) or his personal representative is improperly brought solely by virtue of paragraph (1), the court shall order, upon such terms as are just, that the pleadings be amended to substitute the United States as a party for such officer or employee as of the time such action commenced, upon proper service of process on the United States. Such suit or proceeding shall upon request by the United States be transferred to the district or division where it should have been brought if such action initially had been brought against the United States.
(g) Special rules for certain excise taxes imposed by chapter 42 or 43
(1) Right to bring actions
(A) In general
With respect to any taxable event, payment of the full amount of the first tier tax shall constitute sufficient payment in order to maintain an action under this section with respect to the second tier tax.
(B) Definitions
For purposes of subparagraph (A), the terms "taxable event", "first tier tax", and "second tier tax" have the respective meanings given to such terms by section 4963.
(2) Limitation on suit for refund
No suit may be maintained under this section for the credit or refund of any tax imposed under section 4941, 4942, 4943, 4944, 4945, 4951, 4952, 4955, 4958, 4971, or 4975 with respect to any act (or failure to act) giving rise to liability for tax under such sections, unless no other suit has been maintained for credit or refund of, and no petition has been filed in the Tax Court with respect to a deficiency in, any other tax imposed by such sections with respect to such act (or failure to act).
(3) Final determination of issues
For purposes of this section, any suit for the credit or refund of any tax imposed under section 4941, 4942, 4943, 4944, 4945, 4951, 4952, 4955, 4958, 4971, or 4975 with respect to any act (or failure to act) giving rise to liability for tax under such sections, shall constitute a suit to determine all questions with respect to any other tax imposed with respect to such act (or failure to act) under such sections, and failure by the parties to such suit to bring any such question before the Court shall constitute a bar to such question.
[(h) Repealed. Pub. L. 114–74, title XI, §1101(f)(11), Nov. 2, 2015, 129 Stat. 638 ]
(i) Special rule for actions with respect to tax shelter promoter and understatement penalties
No action or proceeding may be brought in the United States Court of Federal Claims for any refund or credit of a penalty imposed by section 6700 (relating to penalty for promoting abusive tax shelters, etc.) or section 6701 (relating to penalties for aiding and abetting understatement of tax liability).
(j) Special rule for actions with respect to estates for which an election under section 6166 is made
(1) In general
The district courts of the United States and the United States Court of Federal Claims shall not fail to have jurisdiction over any action brought by the representative of an estate to which this subsection applies to determine the correct amount of the estate tax liability of such estate (or for any refund with respect thereto) solely because the full amount of such liability has not been paid by reason of an election under section 6166 with respect to such estate.
(2) Estates to which subsection applies
This subsection shall apply to any estate if, as of the date the action is filed—
(A) no portion of the installments payable under section 6166 have been accelerated;
(B) all such installments the due date for which is on or before the date the action is filed have been paid;
(C) there is no case pending in the Tax Court with respect to the tax imposed by section 2001 on the estate and, if a notice of deficiency under section 6212 with respect to such tax has been issued, the time for filing a petition with the Tax Court with respect to such notice has expired; and
(D) no proceeding for declaratory judgment under section 7479 is pending.
(3) Prohibition on collection of disallowed liability
If the court redetermines under paragraph (1) the estate tax liability of an estate, no part of such liability which is disallowed by a decision of such court which has become final may be collected by the Secretary, and amounts paid in excess of the installments determined by the court as currently due and payable shall be refunded.
(k) Cross references
(1) For provisions relating generally to claims for refund or credit, see
(2) For duty of United States attorneys to defend suits, see
(3) For jurisdiction of United States district courts, see
(4) For payment by the Treasury of judgments against internal revenue officers or employees, upon certificate of probable cause, see
(Aug. 16, 1954, ch. 736,
Editorial Notes
References in Text
The date of enactment of this title, referred to in subsec. (e), is Aug. 16, 1954.
Amendments
2018—Subsecs. (e), (i).
2015—Subsec. (h).
1998—Subsecs. (j), (k).
1996—Subsec. (g)(2), (3).
1988—Subsec. (e).
1987—Subsec. (g)(2), (3).
1986—Subsec. (g)(1)(B).
1984—Subsec. (h).
Subsecs. (i), (j).
1982—Subsec. (e).
Subsecs. (h), (i).
1980—Subsec. (e).
Subsec. (g).
1976—Subsec. (a).
Subsec. (c).
Subsec. (e).
1974—Subsec. (e).
Subsec. (g).
1971—Subsec. (f)(1).
1969—Subsec. (e).
Subsecs. (g), (h).
1966—Subsecs. (f), (g).
1958—Subsec. (f)(2).
Statutory Notes and Related Subsidiaries
Effective Date of 2015 Amendment
Amendment by
Effective Date of 1998 Amendment
Effective Date of 1996 Amendment
Amendment by
Effective Date of 1988 Amendment
Amendment by
Effective Date of 1987 Amendment
Amendment by
Effective Date of 1984 Amendment
Amendment by section 714(g)(1) of
Amendment by section 714(p)(2)(H) of
Effective Date of 1982 Amendment
Amendment by
Amendment by
Effective Date of 1980 Amendments
For effective date of amendment by
Amendment by
Amendment by
Effective Date of 1976 Amendment
Amendment by section 1307(d)(2)(F)(viii) of
For effective date of amendment by section 1605(b)(11) of
Amendment by section 1906(a)(44), (b)(13)(A) of
Effective Date of 1974 Amendment
Amendment by
Effective Date of 1971 Amendment
Effective Date of 1969 Amendment
Amendment by
Effective Date of 1966 Amendment
Effective Date of 1958 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
§7423. Repayments to officers or employees
The Secretary, subject to regulations prescribed by the Secretary, is authorized to repay—
(1) Collections recovered
To any officer or employee of the United States the full amount of such sums of money as may be recovered against him in any court, for any internal revenue taxes collected by him, with the cost and expense of suit; also
(2) Damages and costs
All damages and costs recovered against any officer or employee of the United States in any suit brought against him by reason of anything done in the due performance of his official duty under this title.
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
1976—
§7424. Intervention
If the United States is not a party to a civil action or suit, the United States may intervene in such action or suit to assert any lien arising under this title on the property which is the subject of such action or suit. The provisions of
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
1966—
Statutory Notes and Related Subsidiaries
Effective Date of 1966 Amendment
Amendment by
Civil Actions To Clear Title to Property Commenced Before Nov. 2, 1966
§7425. Discharge of liens
(a) Judicial proceedings
If the United States is not joined as a party, a judgment in any civil action or suit described in subsection (a) of
(1) shall be made subject to and without disturbing the lien of the United States, if notice of such lien has been filed in the place provided by law for such filing at the time such action or suit is commenced, or
(2) shall have the same effect with respect to the discharge or divestment of such lien of the United States as may be provided with respect to such matters by the local law of the place where such property is situated, if no notice of such lien has been filed in the place provided by law for such filing at the time such action or suit is commenced or if the law makes no provision for such filing.
If a judicial sale of property pursuant to a judgment in any civil action or suit to which the United States is not a party discharges a lien of the United States arising under the provisions of this title, the United States may claim, with the same priority as its lien had against the property sold, the proceeds (exclusive of costs) of such sale at any time before the distribution of such proceeds is ordered.
(b) Other sales
Notwithstanding subsection (a) a sale of property on which the United States has or claims a lien, or a title derived from enforcement of a lien, under the provisions of this title, made pursuant to an instrument creating a lien on such property, pursuant to a confession of judgment on the obligation secured by such an instrument, or pursuant to a nonjudicial sale under a statutory lien on such property—
(1) shall, except as otherwise provided, be made subject to and without disturbing such lien or title, if notice of such lien was filed or such title recorded in the place provided by law for such filing or recording more than 30 days before such sale and the United States is not given notice of such sale in the manner prescribed in subsection (c)(1); or
(2) shall have the same effect with respect to the discharge or divestment of such lien or such title of the United States, as may be provided with respect to such matters by the local law of the place where such property is situated, if—
(A) notice of such lien or such title was not filed or recorded in the place provided by law for such filing more than 30 days before such sale,
(B) the law makes no provision for such filing, or
(C) notice of such sale is given in the manner prescribed in subsection (c)(1).
(c) Special rules
(1) Notice of sale
Notice of a sale to which subsection (b) applies shall be given (in accordance with regulations prescribed by the Secretary) in writing, by registered or certified mail or by personal service, not less than 25 days prior to such sale, to the Secretary.
(2) Consent to sale
Notwithstanding the notice requirement of subsection (b)(2)(C), a sale described in subsection (b) of property shall discharge or divest such property of the lien or title of the United States if the United States consents to the sale of such property free of such lien or title.
(3) Sale of perishable goods
Notwithstanding the notice requirement of subsection (b)(2)(C), a sale described in subsection (b) of property liable to perish or become greatly reduced in price or value by keeping, or which cannot be kept without great expense, shall discharge or divest such property of the lien or title of the United States if notice of such sale is given (in accordance with regulations prescribed by the Secretary) in writing, by registered or certified mail or by personal service, to the Secretary before such sale. The proceeds (exclusive of costs) of such sale shall 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 property sold, for not less than 30 days after the date of such sale.
(4) Forfeitures of land sales contracts
For purposes of subsection (b), a sale of property includes any forfeiture of a land sales contract.
(d) Redemption by United States
(1) Right to redeem
In the case of a sale of real property to which subsection (b) applies to satisfy a lien prior to that of the United States, the Secretary may redeem such property within the period of 120 days from the date of such sale or the period allowable for redemption under local law, whichever is longer.
(2) Amount to be paid
In any case in which the United States redeems real property pursuant to paragraph (1), the amount to be paid for such property shall be the amount prescribed by subsection (d) of
(3) Certificate of redemption
(A) In general
In any case in which real property is redeemed by the United States pursuant to this subsection, the Secretary shall apply to the officer designated by local law, if any, for the documents necessary to evidence the fact of redemption and to record title to such property in the name of the United States. If no such officer is designated by local law or if such officer fails to issue such documents, the Secretary shall execute a certificate of redemption therefor.
(B) Filing
The Secretary shall, without delay, cause such documents or certificate to be duly recorded in the proper registry of deeds. If the State in which the real property redeemed by the United States is situated has not by law designated an office in which such certificate may be recorded, the Secretary shall file such certificate in the office of the clerk of the United States district court for the judicial district in which such property is situated.
(C) Effect
A certificate of redemption executed by the Secretary shall constitute prima facie evidence of the regularity of such redemption and shall, when recorded, transfer to the United States all the rights, title, and interest in and to such property acquired by the person from whom the United States redeems such property by virtue of the sale of such property.
(Added
Editorial Notes
Prior Provisions
A prior section 7425 was renumbered 7434 of this title.
Amendments
1986—Subsec. (c)(4).
1976—
Statutory Notes and Related Subsidiaries
Effective Date of 1986 Amendment
Effective Date
Section applicable after Nov. 2, 1966, regardless of when title or lien of United States arose or when lien or interest of another person was acquired, with certain exceptions, see section 114(a)–(c) of
§7426. Civil actions by persons other than taxpayers
(a) Actions permitted
(1) Wrongful levy
If a levy has been made on property or property has been sold pursuant to a levy, any person (other than the person against whom is assessed the tax out of which such levy arose) who claims an interest in or lien on such property and that such property was wrongfully levied upon may bring a civil action against the United States in a district court of the United States. Such action may be brought without regard to whether such property has been surrendered to or sold by the Secretary.
(2) Surplus proceeds
If property has been sold pursuant to a levy, any person (other than the person against whom is assessed the tax out of which such levy arose) who claims an interest in or lien on such property junior to that of the United States and to be legally entitled to the surplus proceeds of such sale may bring a civil action against the United States in a district court of the United States.
(3) Substituted sale proceeds
If property has been sold pursuant to an agreement described in section 6325(b)(3) (relating to substitution of proceeds of sale), any person who claims to be legally entitled to all or any part of the amount held as a fund pursuant to such agreement may bring a civil action against the United States in a district court of the United States.
(4) Substitution of value
If a certificate of discharge is issued to any person under section 6325(b)(4) with respect to any property, such person may, within 120 days after the day on which such certificate is issued, bring a civil action against the United States in a district court of the United States for a determination of whether the value of the interest of the United States (if any) in such property is less than the value determined by the Secretary. No other action may be brought by such person for such a determination.
(b) Adjudication
The district court shall have jurisdiction to grant only such of the following forms of relief as may be appropriate in the circumstances:
(1) Injunction
If a levy or sale would irreparably injure rights in property which the court determines to be superior to rights of the United States in such property, the court may grant an injunction to prohibit the enforcement of such levy or to prohibit such sale.
(2) Recovery of property
If the court determines that such property has been wrongfully levied upon, the court may—
(A) order the return of specific property if the United States is in possession of such property;
(B) grant a judgment for the amount of money levied upon; or
(C) if such property was sold, grant a judgment for an amount not exceeding the greater of—
(i) the amount received by the United States from the sale of such property, or
(ii) the fair market value of such property immediately before the levy.
For the purposes of subparagraph (C), if the property was 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 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.
(3) Surplus proceeds
If the court determines that the interest or lien of any party to an action under this section was transferred to the proceeds of a sale of such property, the court may grant a judgment in an amount equal to all or any part of the amount of the surplus proceeds of such sale.
(4) Substituted sale proceeds
If the court determines that a party has an interest in or lien on the amount held as a fund pursuant to an agreement described in section 6325(b)(3) (relating to substitution of proceeds of sale), the court may grant a judgment in an amount equal to all or any part of the amount of such fund.
(5) Substitution of value
If the court determines that the Secretary's determination of the value of the interest of the United States in the property for purposes of section 6325(b)(4) exceeds the actual value of such interest, the court shall grant a judgment ordering a refund of the amount deposited, and a release of the bond, to the extent that the aggregate of the amounts thereof exceeds such value determined by the court.
(c) Validity of assessment
For purposes of an adjudication under this section, the assessment of tax upon which the interest or lien of the United States is based shall be conclusively presumed to be valid.
(d) Limitation on rights of action
No action may be maintained against any officer or employee of the United States (or former officer or employee) or his personal representative with respect to any acts for which an action could be maintained under this section.
(e) Substitution of United States as party
If an action, which could be brought against the United States under this section, is improperly brought against any officer or employee of the United States (or former officer or employee) or his personal representative, the court shall order, upon such terms as are just, that the pleadings be amended to substitute the United States as a party for such officer or employee as of the time such action was commenced upon proper service of process on the United States.
(f) Provision inapplicable
The provisions of section 7422(a) (relating to prohibition of suit prior to filing claim for refund) shall not apply to actions under this section.
(g) Interest
Interest shall be allowed at the overpayment rate established under section 6621—
(1) in the case of a judgment pursuant to subsection (b)(2)(B), from the date the Secretary receives the money wrongfully levied upon to the date of payment of such judgment;
(2) in the case of a judgment pursuant to subsection (b)(2)(C), from the date of the sale of the property wrongfully levied upon to the date of payment of such judgment; and
(3) in the case of a judgment pursuant to subsection (b)(5) which orders a refund of any amount, from the date the Secretary received such amount to the date of payment of such judgment.
(h) Recovery of damages permitted in certain cases
(1) In general
Notwithstanding subsection (b), if, in any action brought under this section, there is a finding that any officer or employee of the Internal Revenue Service recklessly or intentionally, or by reason of negligence, disregarded any provision of this title the defendant shall be liable to the plaintiff in an amount equal to the lesser of $1,000,000 ($100,000 in the case of negligence) or the sum of—
(A) actual, direct economic damages sustained by the plaintiff as a proximate result of the reckless or intentional or negligent disregard of any provision of this title by the officer or employee (reduced by any amount of such damages awarded under subsection (b)); and
(B) the costs of the action.
(2) Requirement that administrative remedies be exhausted; mitigation; period
The rules of section 7433(d) shall apply for purposes of this subsection.
(3) Payment authority
Claims pursuant to this section shall be payable out of funds appropriated under
(i) Cross reference
For period of limitation, see section 6532(c).
(Added
Editorial Notes
Amendments
1998—Subsec. (a)(4).
Subsec. (b)(5).
Subsec. (g)(3).
Subsecs. (h), (i).
1986—Subsec. (g).
1982—Subsec. (b)(2)(C).
1976—
1975—Subsec. (g).
Statutory Notes and Related Subsidiaries
Effective Date of 1998 Amendment
Amendment by section 3106(b)(1), (2) of
Effective Date of 1986 Amendment
Amendment by
Effective Date of 1982 Amendment
Effective Date of 1975 Amendment
Amendment by
Effective Date
Section applicable after Nov. 2, 1966, regardless of when title or lien of United States arose or when lien or interest of another person was acquired, except in a case in which a lien or title derived from enforcement of a lien held by United States has been enforced by a civil action or suit which has become final by judgment, sale, or agreement before Nov. 2, 1966, or in a case in which section would impair a priority held by any person other than United States holding a lien or interest prior to Nov. 2, 1966, operate to increase liability of such person, or shorten time of bringing suit with respect to transactions occurring before Nov. 2, 1966, see section 114(a)–(c) of
§7427. Tax return preparers
In any proceeding involving the issue of whether or not a tax return preparer has willfully attempted in any manner to understate the liability for tax (within the meaning of section 6694(b)), the burden of proof in respect to such issue shall be upon the Secretary.
(Added
Editorial Notes
Prior Provisions
A prior section 7427 was renumbered 7437 of this title.
Amendments
2007—
Statutory Notes and Related Subsidiaries
Effective Date of 2007 Amendment
Amendment by
§7428. Declaratory judgments relating to status and classification of organizations under section 501(c)(3), etc.
(a) Creation of remedy
In a case of actual controversy involving—
(1) a determination by the Secretary—
(A) with respect to the initial qualification or continuing qualification of an organization as an organization described in section 501(c)(3) which is exempt from tax under section 501(a) or as an organization described in section 170(c)(2),
(B) with respect to the initial classification or continuing classification of an organization as a private foundation (as defined in section 509(a)),
(C) with respect to the initial classification or continuing classification of an organization as a private operating foundation (as defined in section 4942(j)(3)),
(D) with respect to the initial classification or continuing classification of a cooperative as an organization described in section 521(b) which is exempt from tax under section 521(a), or
(E) with respect to the initial qualification or continuing qualification of an organization as an organization described in section 501(c) (other than paragraph (3)) or 501(d) and exempt from tax under section 501(a), or
(2) a failure by the Secretary to make a determination with respect to an issue referred to in paragraph (1),
upon the filing of an appropriate pleading, the United States Tax Court, the United States Court of Federal Claims, or the district court of the United States for the District of Columbia may make a declaration with respect to such initial qualification or continuing qualification or with respect to such initial classification or continuing classification. Any such declaration 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. For purposes of this section, a determination with respect to a continuing qualification or continuing classification includes any revocation of or other change in a qualification or classification.
(b) Limitations
(1) Petitioner
A pleading may be filed under this section only by the organization the qualification or classification of which is at issue.
(2) Exhaustion of administrative remedies
A declaratory judgment or decree under this section shall not be issued in any proceeding unless the Tax Court, the Court of Federal Claims, or the district court of the United States for the District of Columbia determines that the organization involved has exhausted administrative remedies available to it within the Internal Revenue Service. An organization requesting the determination of an issue referred to in subsection (a)(1) shall be deemed to have exhausted its administrative remedies with respect to a failure by the Secretary to make a determination with respect to such issue at the expiration of 270 days after the date on which the request for such determination was made if the organization has taken, in a timely manner, all reasonable steps to secure such determination.
(3) Time for bringing action
If the Secretary sends by certified or registered mail notice of his determination with respect to an issue referred to in subsection (a)(1) to the organization referred to in paragraph (1), no proceeding may be initiated under this section by such organization unless the pleading is filed before the 91st day after the date of such mailing.
(4) Nonapplication for certain revocations
No action may be brought under this section with respect to any revocation of status described in section 6033(j)(1).
(c) Validation of certain contributions made during pendency of proceedings
(1) In general
If—
(A) the issue referred to in subsection (a)(1) involves the revocation of a determination that the organization is described in section 170(c)(2),
(B) a proceeding under this section is initiated within the time provided by subsection (b)(3), and
(C) either—
(i) a decision of the Tax Court has become final (within the meaning of section 7481), or
(ii) a judgment of the district court of the United States for the District of Columbia has been entered, or
(iii) a judgment of the Court of Federal Claims has been entered,
and such decision or judgment, as the case may be, determines that the organization was not described in section 170(c)(2),
then, notwithstanding such decision or judgment, such organization shall be treated as having been described in section 170(c)(2) for purposes of section 170 for the period beginning on the date on which the notice of the revocation was published and ending on the date on which the court first determined in such proceeding that the organization was not described in section 170(c)(2).
(2) Limitation
Paragraph (1) shall apply only—
(A) with respect to individuals, and only to the extent that the aggregate of the contributions made by any individual to or for the use of the organization during the period specified in paragraph (1) does not exceed $1,000 (for this purpose treating a husband and wife as one contributor), and
(B) with respect to organizations described in section 170(c)(2) which are exempt from tax under section 501(a) (for this purpose excluding any such organization with respect to which there is pending a proceeding to revoke the determination under section 170(c)(2)).
(3) Exception
This subsection shall not apply to any individual who was responsible, in whole or in part, for the activities (or failures to act) on the part of the organization which were the basis for the revocation.
(d) Subpoena power for district court for District of Columbia
In any action brought under this section in the district court of the United States for the District of Columbia, a subpoena requiring the attendance of a witness at a trial or hearing may be served at any place in the United States.
(Added
Editorial Notes
Prior Provisions
A prior section 7428 was renumbered 7437 of this title.
Amendments
2018—Subsec. (a).
Subsecs. (b)(2), (c)(1)(C)(iii).
2015—Subsec. (a)(1)(E).
2006—Subsec. (b)(4).
2004—Subsec. (a)(1)(D).
1984—Subsec. (d).
1982—Subsecs. (a), (b)(2), (c)(1)(C)(iii).
1978—Subsec. (a).
Statutory Notes and Related Subsidiaries
Effective Date of 2015 Amendment
Effective Date of 2006 Amendment
Amendment by
Effective Date of 2004 Amendment
Effective Date of 1984 Amendment
Amendment by
Effective Date of 1982 Amendment
Amendment by
Effective Date of 1978 Amendment
Amendment by
Effective Date
§7429. Review of jeopardy levy or assessment procedures
(a) Administrative review
(1) Administrative review
(A) Prior approval required
No assessment may be made under section 6851(a), 6852(a), 6861(a), or 6862, and no levy may be made under section 6331(a) less than 30 days after notice and demand for payment is made, unless the Chief Counsel for the Internal Revenue Service (or such Counsel's delegate) personally approves (in writing) such assessment or levy.
(B) Information to taxpayer
Within 5 days after the day on which such an assessment or levy is made, the Secretary shall provide the taxpayer with a written statement of the information upon which the Secretary relied in making such assessment or levy.
(2) Request for review
Within 30 days after the day on which the taxpayer is furnished the written statement described in paragraph (1), or within 30 days after the last day of the period within which such statement is required to be furnished, the taxpayer may request the Secretary to review the action taken.
(3) Redetermination by Secretary
After a request for review is made under paragraph (2), the Secretary shall determine—
(A) whether or not—
(i) the making of the assessment under section 6851, 6861, or 6862, as the case may be, is reasonable under the circumstances, and
(ii) the amount so assessed or demanded as a result of the action taken under section 6851, 6861, or 6862 is appropriate under the circumstances, or
(B) whether or not the levy described in subsection (a)(1) is reasonable under the circumstances.
(b) Judicial review
(1) Proceedings permitted
Within 90 days after the earlier of—
(A) the day the Secretary notifies the taxpayer of the Secretary's determination described in subsection (a)(3), or
(B) the 16th day after the request described in subsection (a)(2) was made,
the taxpayer may bring a civil action against the United States for a determination under this subsection in the court with jurisdiction determined under paragraph (2).
(2) Jurisdiction for determination
(A) In general
Except as provided in subparagraph (B), the district courts of the United States shall have exclusive jurisdiction over any civil action for a determination under this subsection.
(B) Tax Court
If a petition for a redetermination of a deficiency under section 6213(a) has been timely filed with the Tax Court before the making of an assessment or levy that is subject to the review procedures of this section, and 1 or more of the taxes and taxable periods before the Tax Court because of such petition is also included in the written statement that is provided to the taxpayer under subsection (a), then the Tax Court also shall have jurisdiction over any civil action for a determination under this subsection with respect to all the taxes and taxable periods included in such written statement.
(3) Determination by court
Within 20 days after a proceeding is commenced under paragraph (1), the court shall determine—
(A) whether or not—
(i) the making of the assessment under section 6851, 6861, or 6862, as the case may be, is reasonable under the circumstances, and
(ii) the amount so assessed or demanded as a result of the action taken under section 6851, 6861, or 6862 is appropriate under the circumstances, or
(B) whether or not the levy described in subsection (a)(1) is reasonable under the circumstances.
If the court determines that proper service was not made on the United States or on the Secretary, as may be appropriate, within 5 days after the date of the commencement of the proceeding, then the running of the 20-day period set forth in the preceding sentence shall not begin before the day on which proper service was made on the United States or on the Secretary, as may be appropriate.
(4) Order of court
If the court determines that the making of such levy is unreasonable, that the making of such assessment is unreasonable, or that the amount assessed or demanded is inappropriate, then the court may order the Secretary to release such levy, to abate such assessment, to redetermine (in whole or in part) the amount assessed or demanded, or to take such other action as the court finds appropriate.
(c) Extension of 20-day period where taxpayer so requests
If the taxpayer requests an extension of the 20-day period set forth in subsection (b)(2) and establishes reasonable grounds why such extension should be granted, the court may grant an extension of not more than 40 additional days.
(d) Computation of days
For purposes of this section, Saturday, Sunday, or a legal holiday in the District of Columbia shall not be counted as the last day of any period.
(e) Venue
(1) District court
A civil action in a district court under subsection (b) shall be commenced only in the judicial district described in section 1402(a)(1) or (2) of
(2) Transfer of actions
If a civil action is filed under subsection (b) with the Tax Court and such court finds that there is want of jurisdiction because of the jurisdiction provisions of subsection (b)(2), then the Tax Court shall, if such court determines it is in the interest of justice, transfer the civil action to the district court in which the action could have been brought at the time such action was filed. Any civil action so transferred shall proceed as if such action had been filed in the district court to which such action is transferred on the date on which such action was actually filed in the Tax Court from which such action is transferred.
(f) Finality of determination
Any determination made by a court under this section shall be final and conclusive and shall not be reviewed by any other court.
(g) Burden of proof
(1) Reasonableness of levy, termination, or jeopardy assessment
In a proceeding under subsection (b) involving the issue of whether the making of a levy described in subsection (a)(1) or the making of an assessment under section 6851, 6852, 6861, or 6862 is reasonable under the circumstances, the burden of proof in respect to such issue shall be upon the Secretary.
(2) Reasonableness of amount of assessment
In a proceeding under subsection (b) involving the issue of whether an amount assessed or demanded as a result of action taken under section 6851, 6852, 6861, or 6862 is appropriate under the circumstances, the Secretary shall provide a written statement which contains any information with respect to which his determination of the amount assessed was based, but the burden of proof in respect of such issue shall be upon the taxpayer.
(Added
Editorial Notes
Amendments
1998—Subsec. (a)(1).
1988—
Subsec. (a)(1).
Subsec. (a)(3).
"(A) the making of the assessment under section 6851, 6852, 6861, or 6862, as the case may be, is reasonable under the circumstances, and
"(B) the amount so assessed or demanded as a result of the action taken under section 6851, 6852, 6861, or 6862 is appropriate under the circumstances."
Subsec. (b).
Subsec. (c).
Subsec. (e).
Subsec. (f).
Subsec. (g)(1).
Subsec. (g)(2).
1987—Subsec. (a)(1).
Subsecs. (a)(3)(A), (B), (b)(2)(A), (B), (g)(1), (2).
1984—Subsec. (b)(2).
Statutory Notes and Related Subsidiaries
Effective Date of 1998 Amendment
Effective Date of 1988 Amendment
Effective Date of 1984 Amendment
Effective Date
Section applicable with respect to action taken under
§7430. Awarding of costs and certain fees
(a) In general
In any administrative or court proceeding which is brought by or against the United States in connection with the determination, collection, or refund of any tax, interest, or penalty under this title, the prevailing party may be awarded a judgment or a settlement for—
(1) reasonable administrative costs incurred in connection with such administrative proceeding within the Internal Revenue Service, and
(2) reasonable litigation costs incurred in connection with such court proceeding.
(b) Limitations
(1) Requirement that administrative remedies be exhausted
A judgment for reasonable litigation costs shall not be awarded under subsection (a) in any court proceeding unless the court determines that the prevailing party has exhausted the administrative remedies available to such party within the Internal Revenue Service. Any failure to agree to an extension of the time for the assessment of any tax shall not be taken into account for purposes of determining whether the prevailing party meets the requirements of the preceding sentence.
(2) Only costs allocable to the United States
An award under subsection (a) shall be made only for reasonable litigation and administrative costs which are allocable to the United States and not to any other party.
(3) Costs denied where party prevailing protracts proceedings
No award for reasonable litigation and administrative costs may be made under subsection (a) with respect to any portion of the administrative or court proceeding during which the prevailing party has unreasonably protracted such proceeding.
(4) Period for applying to IRS for administrative costs
An award may be made under subsection (a) by the Internal Revenue Service for reasonable administrative costs only if the prevailing party files an application with the Internal Revenue Service for such costs before the 91st day after the date on which the final decision of the Internal Revenue Service as to the determination of the tax, interest, or penalty is mailed to such party.
(c) Definitions
For purposes of this section—
(1) Reasonable litigation costs
The term "reasonable litigation costs" includes—
(A) reasonable court costs, and
(B) based upon prevailing market rates for the kind or quality of services furnished—
(i) the reasonable expenses of expert witnesses in connection with a court proceeding, except that no expert witness shall be compensated at a rate in excess of the highest rate of compensation for expert witnesses paid by the United States,
(ii) the reasonable cost of any study, analysis, engineering report, test, or project which is found by the court to be necessary for the preparation of the party's case, and
(iii) reasonable fees paid or incurred for the services of attorneys in connection with the court proceeding, except that such fees shall not be in excess of $125 per hour unless the court determines that a special factor, such as the limited availability of qualified attorneys for such proceeding, the difficulty of the issues presented in the case, or the local availability of tax expertise, justifies a higher rate.
In the case of any calendar year beginning after 1996, the dollar amount referred to in clause (iii) shall be increased by an amount equal to such dollar amount multiplied by the cost-of-living adjustment determined under section 1(f)(3) for such calendar year, by substituting "calendar year 1995" for "calendar year 2016" in subparagraph (A)(ii) thereof. If any dollar amount after being increased under the preceding sentence is not a multiple of $10, such dollar amount shall be rounded to the nearest multiple of $10.
(2) Reasonable administrative costs
The term "reasonable administrative costs" means—
(A) any administrative fees or similar charges imposed by the Internal Revenue Service, and
(B) expenses, costs, and fees described in paragraph (1)(B), except that any determination made by the court under clause (ii) or (iii) thereof shall be made by the Internal Revenue Service in cases where the determination under paragraph (4)(C) of the awarding of reasonable administrative costs is made by the Internal Revenue Service.
Such term shall only include costs incurred on or after whichever of the following is the earliest: (i) the date of the receipt by the taxpayer of the notice of the decision of the Internal Revenue Service Independent Office of Appeals; (ii) the date of the notice of deficiency; or (iii) 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.
(3) Attorneys' fees
(A) In general
For purposes of paragraphs (1) and (2), fees for the services of an individual (whether or not an attorney) who is authorized to practice before the Tax Court or before the Internal Revenue Service shall be treated as fees for the services of an attorney.
(B) Pro bono services
The court may award reasonable attorneys' fees under subsection (a) in excess of the attorneys' fees paid or incurred if such fees are less than the reasonable attorneys' fees because an individual is representing the prevailing party for no fee or for a fee which (taking into account all the facts and circumstances) is no more than a nominal fee. This subparagraph shall apply only if such award is paid to such individual or such individual's employer.
(4) Prevailing party
(A) In general
The term "prevailing party" means any party in any proceeding to which subsection (a) applies (other than the United States or any creditor of the taxpayer involved)—
(i) which—
(I) has substantially prevailed with respect to the amount in controversy, or
(II) has substantially prevailed with respect to the most significant issue or set of issues presented, and
(ii) which meets the requirements of the 1st sentence of
(B) Exception if United States establishes that its position was substantially justified
(i) General rule
A party shall not be treated as the prevailing party in a proceeding to which subsection (a) applies if the United States establishes that the position of the United States in the proceeding was substantially justified.
(ii) Presumption of no justification if Internal Revenue Service did not follow certain published guidance
For purposes of clause (i), the position of the United States shall be presumed not to be substantially justified if the Internal Revenue Service did not follow its applicable published guidance in the administrative proceeding. Such presumption may be rebutted.
(iii) Effect of losing on substantially similar issues
In determining for purposes of clause (i) whether the position of the United States was substantially justified, the court shall take into account whether the United States has lost in courts of appeal for other circuits on substantially similar issues.
(iv) Applicable published guidance
For purposes of clause (ii), the term "applicable published guidance" means—
(I) regulations, revenue rulings, revenue procedures, information releases, notices, and announcements, and
(II) any of the following which are issued to the taxpayer: private letter rulings, technical advice memoranda, and determination letters.
(C) Determination as to prevailing party
Any determination under this paragraph as to whether a party is a prevailing party shall be made by agreement of the parties or—
(i) in the case where the final determination with respect to the tax, interest, or penalty is made at the administrative level, by the Internal Revenue Service, or
(ii) in the case where such final determination is made by a court, the court.
(D) Special rules for applying net worth requirement
In applying the requirements of
(i) the net worth limitation in clause (i) of such section shall apply to—
(I) an estate but shall be determined as of the date of the decedent's death, and
(II) a trust but shall be determined as of the last day of the taxable year involved in the proceeding, and
(ii) individuals filing a joint return shall be treated as separate individuals for purposes of clause (i) of such section.
(E) Special rules where judgment less than taxpayer's offer
(i) In general
A party to a court proceeding meeting the requirements of subparagraph (A)(ii) shall be treated as the prevailing party if the liability of the taxpayer pursuant to the judgment in the proceeding (determined without regard to interest) is equal to or less than the liability of the taxpayer which would have been so determined if the United States had accepted a qualified offer of the party under subsection (g).
(ii) Exceptions
This subparagraph shall not apply to—
(I) any judgment issued pursuant to a settlement; or
(II) any proceeding in which the amount of tax liability is not in issue, including any declaratory judgment proceeding, any proceeding to enforce or quash any summons issued pursuant to this title, and any action to restrain disclosure under section 6110(f).
(iii) Special rules
If this subparagraph applies to any court proceeding—
(I) the determination under clause (i) shall be made by reference to the last qualified offer made with respect to the tax liability at issue in the proceeding; and
(II) reasonable administrative and litigation costs shall only include costs incurred on and after the date of such offer.
(iv) Coordination
This subparagraph shall not apply to a party which is a prevailing party under any other provision of this paragraph.
(5) Administrative proceedings
The term "administrative proceeding" means any procedure or other action before the Internal Revenue Service.
(6) Court proceedings
The term "court proceeding" means any civil action brought in a court of the United States (including the Tax Court and the United States Court of Federal Claims).
(7) Position of United States
The term "position of the United States" means—
(A) the position taken by the United States in a judicial proceeding to which subsection (a) applies, and
(B) the position taken in an administrative proceeding to which subsection (a) applies as of the earlier of—
(i) the date of the receipt by the taxpayer of the notice of the decision of the Internal Revenue Service Independent Office of Appeals, or
(ii) the date of the notice of deficiency.
(d) Special rules for payment of costs
(1) Reasonable administrative costs
An award for reasonable administrative costs shall be payable out of funds appropriated under
(2) Reasonable litigation costs
An award for reasonable litigation costs shall be payable in the case of the Tax Court in the same manner as such an award by a district court.
(e) Multiple actions
For purposes of this section, in the case of—
(1) multiple actions which could have been joined or consolidated, or
(2) a case or cases involving a return or returns of the same taxpayer (including joint returns of married individuals) which could have been joined in a single court proceeding in the same court,
such actions or cases shall be treated as 1 court proceeding regardless of whether such joinder or consolidation actually occurs, unless the court in which such action is brought determines, in its discretion, that it would be inappropriate to treat such actions or cases as joined or consolidated.
(f) Right of appeal
(1) Court proceedings
An order granting or denying (in whole or in part) an award for reasonable litigation or administrative costs under subsection (a) in a court proceeding, may be incorporated as a part of the decision or judgment in the court proceeding and shall be subject to appeal in the same manner as the decision or judgment.
(2) Administrative proceedings
A decision granting or denying (in whole or in part) an award for reasonable administrative costs under subsection (a) by the Internal Revenue Service shall be subject to the filing of a petition for review with the Tax Court under rules similar to the rules under section 7463 (without regard to the amount in dispute). If the Secretary sends by certified or registered mail a notice of such decision to the petitioner, no proceeding in the Tax Court may be initiated under this paragraph unless such petition is filed before the 91st day after the date of such mailing.
(3) Appeal of Tax Court decision
An order of the Tax Court disposing of a petition under paragraph (2) 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.
(g) Qualified offer
For purposes of subsection (c)(4)—
(1) In general
The term "qualified offer" means a written offer which—
(A) is made by the taxpayer to the United States during the qualified offer period;
(B) specifies the offered amount of the taxpayer's liability (determined without regard to interest);
(C) is designated at the time it is made as a qualified offer for purposes of this section; and
(D) remains open during the period beginning on the date it is made and ending on the earliest of the date the offer is rejected, the date the trial begins, or the 90th day after the date the offer is made.
(2) Qualified offer period
For purposes of this subsection, the term "qualified offer period" means the period—
(A) beginning on 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, and
(B) ending on the date which is 30 days before the date the case is first set for trial.
(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
Prior Provisions
A prior section 7430 was renumbered
Amendments
2019—
2018—Subsec. (c)(6).
2017—Subsec. (c)(1).
2000—Subsec. (c)(3).
Subsec. (c)(3)(B).
1998—Subsec. (b)(4), (5).
Subsec. (c)(1)(B)(iii).
Subsec. (c)(2).
Subsec. (c)(3).
Subsec. (c)(4)(B)(iii), (iv).
Subsec. (c)(4)(D).
Subsec. (c)(4)(E).
Subsec. (g).
1997—Subsec. (b)(5).
Subsec. (c)(4)(D).
Subsec. (f)(2).
Subsec. (f)(3).
1996—Subsec. (b)(1).
Subsec. (b)(3), (4).
"(3)
"(A)
"(B)
Subsec. (c)(1).
Subsec. (c)(1)(B)(iii).
Subsec. (c)(2)(B).
Subsec. (c)(4)(A).
Subsec. (c)(4)(B).
Subsec. (c)(4)(C).
1988—
Subsec. (c)(2)(A)(iii).
1986—Subsec. (a).
Subsec. (b).
Subsec. (c)(1)(A).
"(i) reasonable court costs,
"(ii) the reasonable expenses of expert witnesses in connection with the civil proceeding,
"(iii) the reasonable cost of any study, analysis, engineering report, test, or project which is found by the court to be necessary for the preparation of the party's case, and
"(iv) reasonable fees paid or incurred for the services of attorneys in connection with the civil proceeding."
Subsec. (c)(2)(A).
Subsec. (c)(4).
Subsec. (f).
1984—Subsec. (a)(2).
Statutory Notes and Related Subsidiaries
Effective Date of 2017 Amendment
Amendment by
Effective Date of 1998 Amendment
Amendment by sections 6012(h) and 6014(e) of
Effective Date of 1997 Amendment
Effective Date of 1996 Amendment
Amendment by section 701(a)–(c)(2) of
Effective Date of 1988 Amendment
Amendment by section 1015(i) of
Effective Date of 1986 Amendment
"(1)
"(2)
"(3)
Effective Date of 1984 Amendment
Amendment by
Effective Date
"(1)
"(2)
"(A) is commenced after December 31, 1982, or
"(B) is pending in the United States Tax Court on the day which is 120 days after the date of the enactment of the Tax Reform Act of 1984 [July 18, 1984]."
§7431. Civil damages for unauthorized inspection or disclosure of returns and return information
(a) In general
(1) Inspection or disclosure by employee of United States
If any officer or employee of the United States knowingly, or by reason of negligence, inspects or discloses any return or return information with respect to a taxpayer in violation of any provision of section 6103, such taxpayer may bring a civil action for damages against the United States in a district court of the United States.
(2) Inspection or disclosure by a person who is not an employee of United States
If any person who is not an officer or employee of the United States knowingly, or by reason of negligence, inspects or discloses any return or return information with respect to a taxpayer in violation of any provision of section 6103 or in violation of section 6104(c), such taxpayer may bring a civil action for damages against such person in a district court of the United States.
(b) Exceptions
No liability shall arise under this section with respect to any inspection or disclosure—
(1) which results from a good faith, but erroneous, interpretation of section 6103, or
(2) which is requested by the taxpayer.
(c) Damages
In any action brought under subsection (a), upon a finding of liability on the part of the defendant, the defendant shall be liable to the plaintiff in an amount equal to the sum of—
(1) the greater of—
(A) $1,000 for each act of unauthorized inspection or disclosure of a return or return information with respect to which such defendant is found liable, or
(B) the sum of—
(i) the actual damages sustained by the plaintiff as a result of such unauthorized inspection or disclosure, plus
(ii) in the case of a willful inspection or disclosure or an inspection or disclosure which is the result of gross negligence, punitive damages, plus
(2) the costs of the action, plus
(3) in the case of a plaintiff which is described in section 7430(c)(4)(A)(ii), reasonable attorneys fees, except that if the defendant is the United States, reasonable attorneys fees may be awarded only if the plaintiff is the prevailing party (as determined under section 7430(c)(4)).
(d) Period for bringing action
Notwithstanding any other provision of law, an action to enforce any liability created under this section may be brought, without regard to the amount in controversy, at any time within 2 years after the date of discovery by the plaintiff of the unauthorized inspection or disclosure.
(e) Notification of unlawful inspection and disclosure
If any person is criminally charged by indictment or information with inspection or disclosure of a taxpayer's return or return information in violation of—
(1) paragraph (1) or (2) of section 7213(a),
(2) section 7213A(a), or
(3) subparagraph (B) of
the Secretary shall notify such taxpayer as soon as practicable of such inspection or disclosure. The Secretary shall also notify such taxpayer if the Internal Revenue Service or a Federal or State agency (upon notice to the Secretary by such Federal or State agency) proposes an administrative determination as to disciplinary or adverse action against an employee arising from the employee's unauthorized inspection or disclosure of the taxpayer's return or return information. The notice described in this subsection shall include the date of the unauthorized inspection or disclosure and the rights of the taxpayer under such administrative determination.
(f) Definitions
For purposes of this section, the terms "inspect", "inspection", "return", and "return information" have the respective meanings given such terms by section 6103(b).
(g) Extension to information obtained under section 3406
For purposes of this section—
(1) any information obtained under section 3406 (including information with respect to any payee certification failure under subsection (d) thereof) shall be treated as return information, and
(2) any inspection or use of such information other than for purposes of meeting any requirement under section 3406 or (subject to the safeguards set forth in section 6103) for purposes permitted under section 6103 shall be treated as a violation of section 6103.
For purposes of subsection (b), the reference to section 6103 shall be treated as including a reference to section 3406.
(h) Special rule for information obtained under section 6103(k)(9)
For purposes of this section, any reference to section 6103 shall be treated as including a reference to section 6311(e).
(Added
Editorial Notes
Prior Provisions
A prior section 7431 was renumbered
Amendments
2019—Subsec. (e).
2006—Subsec. (a)(2).
1998—Subsec. (c)(2).
Subsec. (c)(3).
Subsecs. (g), (h).
1997—
Subsec. (a)(1), (2).
Subsec. (b).
"(b)
Subsec. (c)(1).
Subsec. (d).
Subsec. (e).
Subsec. (f).
"(f)
Subsec. (g).
1983—Subsec. (f).
Statutory Notes and Related Subsidiaries
Effective Date of 2019 Amendment
Effective Date of 2006 Amendment
Amendment by
Effective Date of 1998 Amendment
Amendment by section 3101(f) of
Amendment by section 6012(b)(3) of
Effective Date of 1997 Amendments
Amendment by
Effective Date of 1983 Amendment
Amendment by
Effective Date
§7432. Civil damages for failure to release lien
(a) In general
If any officer or employee of the Internal Revenue Service knowingly, or by reason of negligence, fails to release a lien under section 6325 on property of the taxpayer, such taxpayer may bring a civil action for damages against the United States in a district court of the United States.
(b) Damages
In any action brought under subsection (a), upon a finding of liability on the part of the defendant, the defendant shall be liable to the plaintiff in an amount equal to the sum of—
(1) actual, direct economic damages sustained by the plaintiff which, but for the actions of the defendant, would not have been sustained, plus
(2) the costs of the action.
(c) Payment authority
Claims pursuant to this section shall be payable out of funds appropriated under
(d) Limitations
(1) Requirement that administrative remedies be exhausted
A judgment for damages shall not be awarded under subsection (b) unless the court determines that the plaintiff has exhausted the administrative remedies available to such plaintiff within the Internal Revenue Service.
(2) Mitigation of damages
The amount of damages awarded under subsection (b)(1) shall be reduced by the amount of such damages which could have reasonably been mitigated by the plaintiff.
(3) Period for bringing action
Notwithstanding any other provision of law, an action to enforce liability created under this section may be brought without regard to the amount in controversy and may be brought only within 2 years after the date the right of action accrues.
(e) Notice of failure to release lien
The Secretary shall by regulation prescribe reasonable procedures for a taxpayer to notify the Secretary of the failure to release a lien under section 6325 on property of the taxpayer.
(Added
Editorial Notes
Prior Provisions
A prior section 7432 was renumbered 7437 of this title.
Statutory Notes and Related Subsidiaries
Effective Date
§7433. Civil damages for certain unauthorized collection actions
(a) In general
If, in connection with any collection of Federal tax with respect to a taxpayer, any officer or employee of the Internal Revenue Service recklessly or intentionally, or by reason of negligence, disregards any provision of this title, or any regulation promulgated under this title, such taxpayer may bring a civil action for damages against the United States in a district court of the United States. Except as provided in section 7432, such civil action shall be the exclusive remedy for recovering damages resulting from such actions.
(b) Damages
In any action brought under subsection (a) or petition filed under subsection (e), upon a finding of liability on the part of the defendant, the defendant shall be liable to the plaintiff in an amount equal to the lesser of $1,000,000 ($100,000, in the case of negligence) or the sum of—
(1) actual, direct economic damages sustained by the plaintiff as a proximate result of the reckless or intentional or negligent actions of the officer or employee, and
(2) the costs of the action.
(c) Payment authority
Claims pursuant to this section shall be payable out of funds appropriated under
(d) Limitations
(1) Requirement that administrative remedies be exhausted
A judgment for damages shall not be awarded under subsection (b) unless the court determines that the plaintiff has exhausted the administrative remedies available to such plaintiff within the Internal Revenue Service.
(2) Mitigation of damages
The amount of damages awarded under subsection (b)(1) shall be reduced by the amount of such damages which could have reasonably been mitigated by the plaintiff.
(3) Period for bringing action
Notwithstanding any other provision of law, an action to enforce liability created under this section may be brought without regard to the amount in controversy and may be brought only within 2 years after the date the right of action accrues.
(e) Actions for violations of certain bankruptcy procedures
(1) In general
If, in connection with any collection of Federal tax with respect to a taxpayer, any officer or employee of the Internal Revenue Service willfully violates any provision of section 362 (relating to automatic stay) or 524 (relating to effect of discharge) of
(2) Remedy to be exclusive
(A) In general
Except as provided in subparagraph (B), notwithstanding section 105 of such title 11, such petition shall be the exclusive remedy for recovering damages resulting from such actions.
(B) Certain other actions permitted
Subparagraph (A) shall not apply to an action under section 362(h) of such title 11 for a violation of a stay provided by section 362 of such title; except that—
(i) administrative and litigation costs in connection with such an action may only be awarded under section 7430; and
(ii) administrative costs may be awarded only if incurred on or after the date that the bankruptcy petition is filed.
(Added
Editorial Notes
Prior Provisions
A prior section 7433 was renumbered 7437 of this title.
Amendments
1998—Subsec. (a).
Subsec. (b).
Subsec. (b)(1).
Subsec. (d)(1).
Subsec. (e).
1996—Subsec. (b).
Subsec. (d)(1).
"(1)
Statutory Notes and Related Subsidiaries
Effective Date of 1998 Amendment
Amendment by
Effective Date of 1996 Amendment
§7433A. Civil damages for certain unauthorized collection actions by persons performing services under qualified tax collection contracts
(a) In general
Subject to the modifications provided by subsection (b), section 7433 shall apply to the acts and omissions of any person performing services under a qualified tax collection contract (as defined in section 6306(b)) to the same extent and in the same manner as if such person were an employee of the Internal Revenue Service.
(b) Modifications
For purposes of subsection (a):
(1) Any civil action brought under section 7433 by reason of this section shall be brought against the person who entered into the qualified tax collection contract with the Secretary and shall not be brought against the United States.
(2) Such person and not the United States shall be liable for any damages and costs determined in such civil action.
(3) Such civil action shall not be an exclusive remedy with respect to such person.
(4) Subsections (c), (d)(1), and (e) of section 7433 shall not apply.
(Added
§7434. Civil damages for fraudulent filing of information returns
(a) In general
If any person willfully files a fraudulent information return with respect to payments purported to be made to any other person, such other person may bring a civil action for damages against the person so filing such return.
(b) Damages
In any action brought under subsection (a), upon a finding of liability on the part of the defendant, the defendant shall be liable to the plaintiff in an amount equal to the greater of $5,000 or the sum of—
(1) any actual damages sustained by the plaintiff as a proximate result of the filing of the fraudulent information return (including any costs attributable to resolving deficiencies asserted as a result of such filing),
(2) the costs of the action, and
(3) in the court's discretion, reasonable attorneys' fees.
(c) Period for bringing action
Notwithstanding any other provision of law, an action to enforce the liability created under this section may be brought without regard to the amount in controversy and may be brought only within the later of—
(1) 6 years after the date of the filing of the fraudulent information return, or
(2) 1 year after the date such fraudulent information return would have been discovered by exercise of reasonable care.
(d) Copy of complaint filed with IRS
Any person bringing an action under subsection (a) shall provide a copy of the complaint to the Internal Revenue Service upon the filing of such complaint with the court.
(e) Finding of court to include correct amount of payment
The decision of the court awarding damages in an action brought under subsection (a) shall include a finding of the correct amount which should have been reported in the information return.
(f) Information return
For purposes of this section, the term "information return" means any statement described in section 6724(d)(1)(A).
(Added
Editorial Notes
Prior Provisions
A prior section 7434 was renumbered 7437 of this title.
Amendments
1998—Subsec. (b)(3).
Statutory Notes and Related Subsidiaries
Effective Date
§7435. Civil damages for unauthorized enticement of information disclosure
(a) In general
If any officer or employee of the United States intentionally compromises the determination or collection of any tax due from an attorney, certified public accountant, or enrolled agent representing a taxpayer in exchange for information conveyed by the taxpayer to the attorney, certified public accountant, or enrolled agent for purposes of obtaining advice concerning the taxpayer's tax liability, such taxpayer may bring a civil action for damages against the United States in a district court of the United States. Such civil action shall be the exclusive remedy for recovering damages resulting from such actions.
(b) Damages
In any action brought under subsection (a), upon a finding of liability on the part of the defendant, the defendant shall be liable to the plaintiff in an amount equal to the lesser of $500,000 or the sum of—
(1) actual, direct economic damages sustained by the plaintiff as a proximate result of the information disclosure, and
(2) the costs of the action.
Damages shall not include the taxpayer's liability for any civil or criminal penalties, or other losses attributable to incarceration or the imposition of other criminal sanctions.
(c) Payment authority
Claims pursuant to this section shall be payable out of funds appropriated under
(d) Period for bringing action
Notwithstanding any other provision of law, an action to enforce liability created under this section may be brought without regard to the amount in controversy and may be brought only within 2 years after the date the actions creating such liability would have been discovered by exercise of reasonable care.
(e) Mandatory stay
Upon a certification by the Commissioner or the Commissioner's delegate that there is an ongoing investigation or prosecution of the taxpayer, the district court before which an action under this section is pending shall stay all proceedings with respect to such action pending the conclusion of the investigation or prosecution.
(f) Crime-fraud exception
Subsection (a) shall not apply to information conveyed to an attorney, certified public accountant, or enrolled agent for the purpose of perpetrating a fraud or crime.
(Added
Editorial Notes
Prior Provisions
A prior section 7435 was renumbered 7437 of this title.
Statutory Notes and Related Subsidiaries
Effective Date
§7436. Proceedings for determination of employment status
(a) Creation of remedy
If, in connection with an audit of any person, there is an actual controversy involving a determination by the Secretary as part of an examination that—
(1) one or more individuals performing services for such person are employees of such person for purposes of subtitle C, or
(2) such person is not entitled to the treatment under subsection (a) of section 530 of the Revenue Act of 1978 with respect to such an individual,
upon the filing of an appropriate pleading, the Tax Court may determine whether such a determination by the Secretary is correct and the proper amount of employment tax under such determination. Any such redetermination by the Tax Court shall have the force and effect of a decision of the Tax Court and shall be reviewable as such.
(b) Limitations
(1) Petitioner
A pleading may be filed under this section only by the person for whom the services are performed.
(2) Time for filing action
If the Secretary sends by certified or registered mail notice to the petitioner of a determination by the Secretary described in subsection (a), no proceeding may be initiated under this section with respect to such determination unless the pleading is filed before the 91st day after the date of such mailing.
(3) No adverse inference from treatment while action is pending
If, during the pendency of any proceeding brought under this section, the petitioner changes his treatment for employment tax purposes of any individual whose employment status as an employee is involved in such proceeding (or of any individual holding a substantially similar position) to treatment as an employee, such change shall not be taken into account in the Tax Court's determination under this section.
(c) Small case procedures
(1) In general
At the option of the petitioner, concurred in by the Tax Court or a division thereof before the hearing of the case, proceedings under this section may (notwithstanding the provisions of section 7453) be conducted subject to the rules of evidence, practice, and procedure applicable under section 7463 if the amount of employment taxes placed in dispute is $50,000 or less for each calendar quarter involved.
(2) Finality of decisions
A decision entered in any proceeding conducted under this subsection shall not be reviewed in any other court and shall not be treated as a precedent for any other case not involving the same petitioner and the same determinations.
(3) Certain rules to apply
Rules similar to the rules of the last sentence of subsection (a), and subsections (c), (d), and (e), of section 7463 shall apply to proceedings conducted under this subsection.
(d) Special rules
(1) Restrictions on assessment and collection pending action, etc.
The principles of subsections (a), (b), (c), (d), and (f) of section 6213, section 6214(a), section 6215, section 6503(a), section 6512, and section 7481 shall apply to proceedings brought under this section in the same manner as if the Secretary's determination described in subsection (a) were a notice of deficiency.
(2) Awarding of costs and certain fees
Section 7430 shall apply to proceedings brought under this section.
(e) Employment tax
The term "employment tax" means any tax imposed by subtitle C.
(Added
Editorial Notes
References in Text
Section 530 of the Revenue Act of 1978, referred to in subsec. (a)(2), is section 530 of
Prior Provisions
A prior section 7436 was renumbered
Amendments
2000—Subsec. (a).
1998—Subsec. (c)(1).
Statutory Notes and Related Subsidiaries
Effective Date of 2000 Amendment
Amendment by
Effective Date of 1998 Amendment
§7437. Cross references
(1) For determination of amount of any tax, additions to tax, etc., in title 11 cases, see
(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 claim upon the premises involved, see
(6) For priority of lien of the United States in case of insolvency, see
(7) For interest on judgments for overpayments, see
(8) For review of a Tax Court decision, see section 7482.
(9) For statute prohibiting suits to replevy property taken under revenue laws, see
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
1982—Par. (6).
1980—Par. (1).
Par. (2).
Par. (3).
Par. (4).
1976—Par. (1).
Par. (2).
Par. (3).
Par. (4).
Statutory Notes and Related Subsidiaries
Effective Date of 1980 Amendment
Amendment by
Subchapter C—The Tax Court
Editorial Notes
Amendments
1976—
1974—
PART I—ORGANIZATION AND JURISDICTION
Editorial Notes
Amendments
2022—
2018—
2008—
2006—
1986—
1976—
1961—
§7441. Status
There is hereby established, under article I of the Constitution of the United States, a court of record to be known as the United States Tax Court. The members of the Tax Court shall be the chief judge and the judges of the Tax Court. The Tax Court is not an agency of, and shall be independent of, the executive branch of the Government.
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
2015—
1969—
Statutory Notes and Related Subsidiaries
Effective Date of 1969 Amendment
Report on Inventory of Cases in Tax Court
Continuation of Status
§7442. Jurisdiction
The Tax Court and its divisions shall have such jurisdiction as is conferred on them by this title, by chapters 1, 2, 3, and 4 of the Internal Revenue Code of 1939, by title II and title III of the Revenue Act of 1926 (
(Aug. 16, 1954, ch. 736,
Editorial Notes
References in Text
Chapters 1, 2, 3, and 4 of the Internal Revenue Code of 1939, referred to in text, were comprised of sections 1 to 482, 500 to 706, 800 to 939, and 1000 to 1031 of former Title 26, Internal Revenue Code. Chapters 1 and 2 of the Internal Revenue Code of 1939 were repealed by
The Revenue Act of 1926, referred to in text, is act Feb. 26, 1926, ch. 27,
§7443. Membership
(a) Number
The Tax Court shall be composed of 19 members.
(b) Appointment
Judges of the Tax Court shall be appointed by the President, by and with the advice and consent of the Senate, solely on the grounds of fitness to perform the duties of the office.
(c) Salary
(1) Each judge shall receive salary at the same rate and in the same installments as judges of the district courts of the United States.
(2) For rate of salary and frequency of installment see
(d) Expenses for travel and subsistence
Judges of the Tax Court shall receive necessary traveling expenses, and expenses actually incurred for subsistence while traveling on duty and away from their designated stations, subject to the same limitations in amount as are now or may hereafter be applicable to the United States Court of International Trade.
(e) Term of office
The term of office of any judge of the Tax Court shall expire 15 years after he takes office.
(f) Removal from office
Judges of the Tax Court may be removed by the President, after notice and opportunity for public hearing, for inefficiency, neglect of duty, or malfeasance in office, but for no other cause.
(g) Disbarment of removed judges
A judge of the Tax Court removed from office in accordance with subsection (f) shall not be permitted at any time to practice before the Tax Court.
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
1980—Subsec. (a).
Subsec. (b).
Subsec. (d).
1969—Subsec. (b).
Subsec. (c).
Subsec. (e).
1964—Subsec. (c).
1955—Subsec. (c). Act Mar. 2, 1955, increased salary of judges from $15,000 to $22,500.
Statutory Notes and Related Subsidiaries
Effective Date of 1980 Amendments
Amendment by
Effective Date of 1969 Amendment
"(b) The amendment made by section 952(a) [amending this section] shall apply to judges appointed after the date of enactment of this Act [Dec. 30, 1969].
"(c) The amendment made by section 952(b) [amending this section] shall take effect on the date of enactment of this Act [Dec. 30, 1969], except that—
"(1) the term of office being served by a judge of the Tax Court on that date shall expire on the date it would have expired under the law in effect on the date preceding the date of enactment of this Act [Dec. 30, 1969]; and
"(2) a judge of the Tax Court on the date of enactment of this Act [Dec. 30, 1969] may be reappointed in the same manner as a judge of the Tax Court hereafter appointed."
Amendment by section 953 of
Effective Date of 1964 Amendment
Amendment by
Effective Date of 1955 Amendment
Amendment by act Mar. 2, 1955, effective Mar. 1, 1955, see section 5 of act Mar. 2, 1955, set out as a note under
Salary Increases
1987—Salaries of judges increased to $89,500 per annum, on recommendation of the President of the United States, see note set out under
1977—Salaries of judges increased to $54,500 per annum, on recommendation of the President of the United States, see note set out under
1969—Salaries of judges increased to $40,000 per annum, on recommendation of the President of the United States, see note set out under
Certification by Judge of Travel Expenses
Provisions authorizing the travel expenses of the judges of the United States Tax Court to be paid upon the written certificate of the judge were contained in the Transportation, Treasury, Housing and Urban Development, the Judiciary, and Independent Agencies Appropriations Act, 2006,
Apr. 2, 1956, ch. 161, title III,
June 1, 1955, ch. 113, title III,
Executive Documents
Executive Order No. 12064
Ex. Ord. No. 12064, June 5, 1978, 43 F.R. 24661, which established the United States Tax Court Nominating Commission and provided for its membership, functions, etc., was revoked by Ex. Ord. No. 12305, May 5, 1981, 46 F.R. 25421, formerly set out as a note under section 14 of the Appendix to Title 5, Government Organization and Employees.
§7443A. Special trial judges
(a) Appointment
The chief judge may, from time to time, appoint special trial judges who shall proceed under such rules and regulations as may be promulgated by the Tax Court.
(b) Proceedings which may be assigned to special trial judges
The chief judge may assign—
(1) any declaratory judgment proceeding,
(2) any proceeding under section 7463,
(3) any proceeding where neither the amount of the deficiency placed in dispute (within the meaning of section 7463) nor the amount of any claimed overpayment exceeds $50,000,
(4) any proceeding under section 6320 or 6330,
(5) any proceeding under section 7436(c),
(6) any proceeding under section 7623(b)(4), and
(7) any other proceeding which the chief judge may designate,
to be heard by the special trial judges of the court.
(c) Authority to make court decision
The court may authorize a special trial judge to make the decision of the court with respect to any proceeding described in paragraph (1), (2), (3), (4), (5), or (6) of subsection (b), subject to such conditions and review as the court may provide.
(d) Salary
Each special trial judge shall receive salary—
(1) at a rate equal to 90 percent of the rate for judges of the Tax Court, and
(2) in the same installments as such judges.
(e) Expenses for travel and subsistence
Subsection (d) of section 7443 shall apply to special trial judges subject to such rules and regulations as may be promulgated by the Tax Court.
(Added
Editorial Notes
Amendments
2006—Subsec. (b)(5).
Subsec. (b)(6).
Subsec. (b)(7).
Subsec. (c).
1998—Subsec. (b)(3).
Subsec. (b)(4), (5).
Subsec. (c).
Statutory Notes and Related Subsidiaries
Effective Date of 2006 Amendment
Amendment by
Effective Date of 1998 Amendments
Amendment by
Amendment by section 3103 of
Amendment by section 3401 of
Effective Date
"(1)
"(2)
"(3)
Inconsistencies With Presidential Salary Recommendations
[§7443B. Repealed. Pub. L. 110–458, title I, §108(l), Dec. 23, 2008, 122 Stat. 5110 ]
Section, added
Statutory Notes and Related Subsidiaries
Effective Date of Repeal
Repeal effective as if included in the provisions of
Construction of Amendment by Pub. L. 109–280
§7444. Organization
(a) Seal
The Tax Court shall have a seal which shall be judicially noticed.
(b) Designation of chief judge
The Tax Court shall at least biennially designate a judge to act as chief judge.
(c) Divisions
The chief judge may from time to time divide the Tax Court into divisions of one or more judges, assign the judges of the Tax Court thereto, and in case of a division of more than one judge, designate the chief thereof. If a division, as a result of a vacancy or the absence or inability of a judge assigned thereto to serve thereon, is composed of less than the number of judges designated for the division, the chief judge may assign other judges to the division or direct the division to proceed with the transaction of business without awaiting any additional assignment of judges thereto.
(d) Quorum
A majority of the judges of the Tax Court or of any division thereof shall constitute a quorum for the transaction of the business of the Tax Court or of the division, respectively. A vacancy in the Tax Court or in any division thereof shall not impair the powers nor affect the duties of the Tax Court or division nor of the remaining judges of the Tax Court or division, respectively.
(Aug. 16, 1954, ch. 736,
§7445. Offices
The principal office of the Tax Court shall be in the District of Columbia, but the Tax Court or any of its divisions may sit at any place within the United States.
(Aug. 16, 1954, ch. 736,
§7446. Times and places of sessions
The times and places of the sessions of the Tax Court and of its divisions shall be prescribed by the chief judge with a view to securing reasonable opportunity to taxpayers to appear before the Tax Court or any of its divisions, with as little inconvenience and expense to taxpayers as is practicable.
(Aug. 16, 1954, ch. 736,
§7447. Retirement
(a) Definitions
For purposes of this section—
(1) The term "Tax Court" means the United States Tax Court.
(2) The term "judge" means the chief judge or a judge of the Tax Court; but such term does not include any individual performing judicial duties pursuant to subsection (c).
(3) In any determination of length of service as judge there shall be included all periods (whether or not consecutive) during which an individual served as judge, as judge of the Tax Court of the United States, or as a member of the Board of Tax Appeals.
(b) Retirement
(1) Any judge shall retire upon attaining the age of 70.
(2) Any judge who meets the age and service requirements set forth in the following table may retire:
| The judge has attained age: | And the years of service as a judge are at least: |
|---|---|
| 65 | 15 |
| 66 | 14 |
| 67 | 13 |
| 68 | 12 |
| 69 | 11 |
| 70 | 10. |
(3) Any judge who is not reappointed following the expiration of the term of his office may retire upon the completion of such term, if (A) he has served as a judge of the Tax Court for 15 years or more and (B) not earlier than 9 months preceding the date of the expiration of the term of his office and not later than 6 months preceding such date, he advised the President in writing that he was willing to accept reappointment to the Tax Court.
(4) Any judge who becomes permanently disabled from performing his duties shall retire.
(c) Recalling of retired judges
At or after his retirement, any individual who has elected to receive retired pay under subsection (d) may be called upon by the chief judge of the Tax Court to perform such judicial duties with the Tax Court as may be requested of him for any period or periods specified by the chief judge; except that in the case of any such individual—
(1) the aggregate of such periods in any one calendar year shall not (without his consent) exceed 90 calendar days; and
(2) he shall be relieved of performing such duties during any period in which illness or disability precludes the performance of such duties.
Any act, or failure to act, by an individual performing judicial duties pursuant to this subsection shall have the same force and effect as if it were the act (or failure to act) of a judge of the Tax Court; but any such individual shall not be counted as a judge of the Tax Court for purposes of section 7443(a). Any individual who is performing judicial duties pursuant to this subsection shall be paid the same compensation (in lieu of retired pay) and allowances for travel and other expenses as a judge.
(d) Retired pay
Any individual who—
(1) retires under paragraph (1), (2), or (3) of subsection (b) and elects under subsection (e) to receive retired pay under this subsection shall receive retired pay during any period at a rate which bears the same ratio to the rate of the salary payable to a judge during such period as the number of years he has served as judge bears to 10; except that the rate of such retired pay shall not be more than the rate of such salary for such period; or
(2) retires under paragraph (4) of subsection (b) and elects under subsection (e) to receive retired pay under this subsection shall receive retired pay during any period at a rate—
(A) equal to the rate of the salary payable to a judge during such period if before he retired he had served as a judge not less than 10 years; or
(B) one-half of the rate of the salary payable to a judge during such period if before he retired he had served as a judge less than 10 years.
Such retired pay shall begin to accrue on the day following the day on which his salary as judge ceases to accrue, and shall continue to accrue during the remainder of his life. Retired pay under this subsection shall be paid in the same manner as the salary of a judge. In computing the rate of the retired pay under paragraph (1) of this subsection for any individual who is entitled thereto, that portion of the aggregate number of years he has served as a judge which is a fractional part of 1 year shall be eliminated if it is less than 6 months, or shall be counted as a full year if it is 6 months or more. In computing the rate of the retired pay under paragraph (1) of this subsection for any individual who is entitled thereto, any period during which such individual performs services under subsection (c) on a substantially full-time basis shall be treated as a period during which he has served as a judge.
(e) Election to receive retired pay
Any judge may elect to receive retired pay under subsection (d). Such an election—
(1) may be made only while an individual is a judge (except that in the case of an individual who fails to be reappointed as judge at the expiration of a term of office, it may be made at any time before the day after the day on which his successor takes office);
(2) once made, shall be irrevocable;
(3) in the case of any judge other than the chief judge, shall be made by filing notice thereof in writing with the chief judge; and
(4) in the case of the chief judge, shall be made by filing notice thereof in writing with the Office of Personnel Management.
The chief judge shall transmit to the Office of Personnel Management a copy of each notice filed with him under this subsection.
(f) Retired pay affected in certain cases
In the case of an individual for whom an election to receive retired pay under subsection (d) is in effect—
(1) 1-year forfeiture for failure to perform judicial duties
If such individual during any calendar year fails to perform judicial duties required of him by subsection (c), such individual shall forfeit all rights to retired pay under subsection (d) for the 1-year period which begins on the 1st day on which he so fails to perform such duties.
(2) Permanent forfeiture of retired pay where certain non-Government services performed
If such individual performs (or supervises or directs the performance of) legal or accounting services in the field of Federal taxation for his client, his employer, or any of his employer's clients, such individual shall forfeit all rights to retired pay under subsection (d) for all periods beginning on or after the 1st day on which he engages in any such activity. The preceding sentence shall not apply to any civil office or employment under the Government of the United States.
(3) Suspension of retired pay during period of compensated Government service
If such individual accepts compensation for civil office or employment under the Government of the United States (other than the performance of judicial duties pursuant to subsection (c)), such individual shall forfeit all rights to retired pay under subsection (d) for the period for which such compensation is received.
(4) Forfeitures of retired pay under paragraphs (1) and (2) not to apply where individual elects to freeze amount of retired pay
(A) In general
If any individual makes an election under this paragraph—
(i) paragraphs (1) and (2) (and subsection (c)) shall not apply to such individual beginning on the date such election takes effect, and
(ii) the retired pay under subsection (d) payable to such individual for periods beginning on or after the date such election takes effect shall be equal to the retired pay to which such individual would be entitled without regard to this clause at the time of such election.
(B) Election
An election under this paragraph—
(i) may be made by an individual only if such individual meets the age and service requirements for retirement under paragraph (2) of subsection (b),
(ii) may be made only during the period during which the individual may make an election to receive retired pay or while the individual is receiving retired pay, and
(iii) shall be made in the same manner as the election to receive retired pay.
Such an election, once it takes effect, shall be irrevocable.
(C) When election takes effect
Any election under this paragraph shall take effect on the 1st day of the 1st month following the month in which the election is made.
(g) Coordination with civil service retirement
(1) General rule
Except as otherwise provided in this subsection, the provisions of the civil service retirement laws (including the provisions relating to the deduction and withholding of amounts from basic pay, salary, and compensation) shall apply in respect of service as a judge (together with other service as an officer or employee to whom such civil service retirement laws apply) as if this section had not been enacted.
(2) Effect of electing retired pay
In the case of any individual who has filed an election to receive retired pay under subsection (d)—
(A) no annuity or other payment shall be payable to any person under the civil service retirement laws with respect to any service performed by such individual (whether performed before or after such election is filed and whether performed as judge or otherwise);
(B) no deduction for purposes of the Civil Service Retirement and Disability Fund shall be made from retired pay payable to him under subsection (d) or from any other salary, pay, or compensation payable to him, for any period beginning after the day on which such election is filed; and
(C) such individual shall be paid the lump-sum credit computed under
(h) Retirement for disability
(1) Any judge who becomes permanently disabled from performing his duties shall certify to the President his disability in writing. If the chief judge retires for disability, his retirement shall not take effect until concurred in by the President. If any other judge retires for disability, he shall furnish to the President a certificate of disability signed by the chief judge.
(2) Whenever any judge who becomes permanently disabled from performing his duties does not retire and the President finds that such judge is unable to discharge efficiently all the duties of his office by reason of permanent mental or physical disability and that the appointment of an additional judge is necessary for the efficient dispatch of business, the President shall declare such judge to be retired.
(i) Revocation of election to receive retired pay
(1) In general
Notwithstanding subsection (e)(2), an individual who has filed an election to receive retired pay under subsection (d) may revoke such election at any time before the first day on which retired pay (or compensation under subsection (c) in lieu of retired pay) would (but for such revocation) begin to accrue with respect to such individual.
(2) Manner of revoking
Any revocation under this subsection shall be made by filing a notice thereof in writing with the Office of Personnel Management. The Office of Personnel Management shall transmit to the chief judge a copy of each notice filed under this subsection.
(3) Effect of revocation
In the case of any revocation under this subsection—
(A) for purposes of this section, the individual shall be treated as not having filed an election to receive retired pay under subsection (d),
(B) for purposes of section 7448—
(i) the individual shall be treated as not having filed an election under section 7448(b), and
(ii) section 7448(g) shall not apply, and the amount credited to such individual's account (together with interest at 3 percent per annum, compounded on December 31 of each year to the date on which the revocation is filed) shall be returned to such individual,
(C) no credit shall be allowed for any service as a judge of the Tax Court unless with respect to such service either there has been deducted and withheld the amount required by the civil service retirement laws or there has been deposited in the Civil Service Retirement and Disability Fund an amount equal to the amount so required, with interest,
(D) the Tax Court shall deposit in the Civil Service Retirement and Disability Fund an amount equal to the additional amount it would have contributed to such Fund but for the election under subsection (e), and
(E) if subparagraph (D) is complied with, service on the Tax Court shall be treated as service with respect to which deductions and contributions had been made during the period of service.
(j) Thrift Savings Plan
(1) Election to contribute
(A) In general
A judge of the Tax Court may elect to contribute to the Thrift Savings Fund established by
(B) Period of election
An election may be made under this paragraph only during a period provided under
(2) Applicability of title 5 provisions
Except as otherwise provided in this subsection, the provisions of subchapters III and VII of
(3) Special rules
(A) Amount contributed
The amount contributed by a judge to the Thrift Savings Fund in any pay period shall not exceed the maximum percentage of such judge's basic pay for such period as allowable under
(B) Contributions for benefit of judge
No contributions under
(C) Applicability of section 8433(b) of title 5 whether or not judge retires
(i) retires under subsection (b), or
(ii) ceases to serve as a judge of the Tax Court but does not retire under subsection (b).
Retirement under subsection (b) is a separation from service for purposes of subchapters III and VII of
(D) Applicability of section 8351(b)(5) of title 5
The provisions of
(E) Exception
Notwithstanding subparagraph (C), if any judge retires under this section, or resigns without having met the age and service requirements set forth under subsection (b)(2), and such judge's nonforfeitable account balance is less than an amount that the Executive Director of the Federal Retirement Thrift Investment Board prescribes by regulation, the Executive Director shall pay the nonforfeitable account balance to the participant in a single payment.
(F) Offset
In the case of a judge who receives a distribution from the Thrift Savings Plan and who later receives retired pay under subsection (d), the retired pay shall be offset by an amount equal to the amount of the distribution which represents the Government's contribution to the individual's Thrift Savings Account during years of service as a full-time judicial officer under the Federal Employees Retirement System, without regard to earnings attributable to such amount. Where such an offset would exceed 50 percent of the retired pay to be received in the first year, the offset may be divided equally over the first 2 years in which the individual receives the annuity.
(k) Teaching compensation of retired judges
For purposes of the limitation under section 501(a) of the Ethics in Government Act of 1978 (5 U.S.C. App.),1 any compensation for teaching approved under section 502(a)(5) of such Act shall not be treated as outside earned income when received by a judge of the United States Tax Court who has retired under subsection (b) for teaching performed during any calendar year for which such a judge has met the requirements of subsection (c), as certified by the chief judge, or has retired under subsection (b)(4).
(Aug. 16, 1954, ch. 736,
Editorial Notes
References in Text
Sections 501(a) and 502(a)(5) of the Ethics in Government Act of 1978, referred to in subsec. (k), are sections 501(a) and 502(a)(5) of
Amendments
2022—Subsec. (g)(2)(C).
Subsec. (i)(2).
Subsec. (j)(3)(B).
Subsec. (j)(3)(F).
Subsec. (k).
2014—Subsec. (i)(3)(B)(ii).
2006—Subsec. (j).
1988—Subsec. (d).
1986—Subsec. (a)(2), (3), (5).
Subsec. (b)(2).
Subsec. (e).
Subsec. (f).
"(1) accepts civil office or employment under the Government of the United States (other than the performance of judicial duties pursuant to subsection (c)); or
"(2) performs (or supervises or directs the performance of) legal or accounting services in the field of Federal taxation or in the field of the renegotiation of Federal contracts for his client, his employer, or any of his employer's clients,
shall forfeit all rights to retired pay under subsection (d) for all periods beginning on or after the first day on which he accepts such office or employment or engages in any activity described in paragraph (2). Any individual who has elected to receive retired pay under subsection (d) who thereafter during any calendar year fails to perform judicial duties required of him by subsection (c) shall forfeit all rights to retired pay under subsection (d) for the 1-year period which begins on the first day on which he so fails to perform such duties."
Subsec. (g)(2)(C).
1982—Subsec. (b).
1978—Subsec. (i).
1971—Subsec. (c).
1969—Subsec. (a)(4).
Subsec. (a)(1).
Subsec. (a)(5).
Subsec. (b).
Subsec. (d).
Subsec. (g)(1).
Subsec. (g)(2).
Subsec. (g)(3).
Subsec. (g)(4).
Subsec. (h).
1966—Subsec. (d).
Statutory Notes and Related Subsidiaries
Effective Date of 2022 Amendment
Effective Date of 2014 Amendment
Amendment by
Effective Date of 2006 Amendment
Effective Date of 1988 Amendment
Effective Date of 1986 Amendment
"(1)
"(2)
Effective Date of 1978 Amendment
Effective Date of 1971 Amendment
Effective Date of 1969 Amendment
Amendment by sections 954(c), (e) and 960(c), (d) of
"(1) all judges of the Tax Court retiring on or after the date of enactment of this Act [Dec. 30, 1969], and
"(2) all individuals performing judicial duties pursuant to section 7447(c) or receiving retired pay pursuant to section 7447(d) on the day preceding the date of enactment of this Act [Dec. 30, 1969].
Any individual who has served as a judge of the Tax Court for 18 years or more by the end of one year after the date of the enactment of this Act [Dec. 30, 1969] may retire in accordance with the provisions of section 7447 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] as in effect on the day preceding the date of the enactment of this Act. Any individual who is a judge of the Tax Court on the date of the enactment of this Act may retire under the provisions of section 7447 of such Code upon the completion of the term of his office, if he is not reappointed as a judge of the Tax Court and gives notice to the President within the time prescribed by section 7447(b) of such Code (or if his term expires within 6 months after the date of enactment of this Act, gives notice to the President before the expiration of 3 months after the date of enactment of this Act), and shall receive retired pay at a rate which bears the same ratio to the rate of the salary payable to a judge as the number of years he has served as a judge of the Tax Court bears to 15; except that the rate of such retired pay shall not exceed the rate of the salary of a judge of the Tax Court. For purposes of the preceding sentence the years of service as a judge of the Tax Court shall be determined in the manner set forth in section 7447(d) of such Code."
Effective Date of 1966 Amendment
Redepositing Funds in Civil Service Retirement and Disability Fund; Creditable Service
Executive Documents
Transfer of Functions
Functions vested by statute in United States Civil Service Commission or Chairman thereof transferred to Director of Office of Personnel Management (except as otherwise specified) by Reorg. Plan No. 2 of 1978, §102, 43 F.R. 36037,
1 See References in Text note below.
§7447A. Retirement for special trial judges
(a) In general
(1) Retirement
Any special trial judge appointed pursuant to section 7443A may retire from service as a special trial judge if the individual meets the age and service requirements set forth in the following table:
| If the special trial judge has attained age: | And the years of service as a special trial judge are at least: |
|---|---|
| 65 | 15 |
| 66 | 14 |
| 67 | 13 |
| 68 | 12 |
| 69 | 11 |
| 70 | 10. |
(2) Length of service
In making any determination of length of service as a special trial judge there shall be included all periods (whether or not consecutive) during which an individual served as a special trial judge
(b) Retirement upon disability
Any special trial judge appointed pursuant to section 7443A who becomes permanently disabled from performing such individual's duties shall retire from service as a special trial judge.
(c) Recalling of retired special trial judges
Any individual who has retired pursuant to subsection (a) may be called upon by the chief judge to perform such judicial duties with the Tax Court as may be requested of such individual for a period or periods specified by the chief judge, except that in the case of any such individual—
(1) the aggregate of such periods in any 1 calendar year shall not (without the consent of such individual) exceed 90 calendar days, and
(2) such individual shall be relieved of performing such duties during any period in which illness or disability precludes the performance of such duties.
Any act, or failure to act, by an individual performing judicial duties pursuant to this subsection shall have the same force and effect as if it were the act (or failure to act) of a special trial judge. Any individual who is performing judicial duties pursuant to this subsection shall be paid the same compensation (in lieu of retired pay) and allowances for travel and other expenses as a special trial judge.
(d) Retired pay
(1) In general
Any individual who retires pursuant to subsection (a) and elects under subsection (e) to receive retired pay under this subsection shall receive retired pay during any period of retirement from service as a special trial judge at a rate which bears the same ratio to the rate of the salary payable to a special trial judge during such period as—
(A) the number of years such individual has served as special trial judge bears to,
(B) 15,
except that the rate of such retired pay shall not be more than the rate of such salary for such period.
(2) Retirement upon disability
Any individual who retires pursuant to subsection (b) and elects under subsection (e) to receive retired pay under this subsection shall receive retired pay during any period of retirement from service as a special trial judge—
(A) at a rate equal to the rate of the salary payable to a special trial judge during such period, if the individual had at least 10 years of service as a special trial judge before retirement, and
(B) at a rate equal to ½ the rate described in subparagraph (A), if the individual had fewer than 10 years of service as a special trial judge before retirement.
(3) Beginning date and payment
Retired pay under this subsection shall begin to accrue on the day following the date on which the individual's salary as a special trial judge ceases to accrue, and shall continue to accrue during the remainder of such individual's life. Retired pay under this subsection shall be paid in the same manner as the salary of a special trial judge.
(4) Partial years
In computing the rate of the retired pay for an individual to whom paragraph (1) applies, any portion of the aggregate number of years such individual has served as a special trial judge which is a fractional part of 1 year shall be eliminated if it is less than 6 months, or shall be counted as a full year if it is 6 months or more.
(5) Recalled service
In computing the rate of the retired pay for an individual to whom paragraph (1) applies, any period during which such individual performs services under subsection (c) on a substantially full-time basis shall be treated as a period during which such individual has served as a special trial judge.
(e) Election to Receive Retired Pay
Any special trial judge may elect to receive retired pay under subsection (d). Such an election—
(1) may be made only while an individual is a special trial judge (except that in the case of an individual who fails to be reappointed as a special trial judge, such election may be made within 60 days after such individual leaves office as a special trial judge),
(2) once made, shall be irrevocable, and
(3) shall be made by filing notice thereof in writing with the chief judge.
The chief judge shall transmit to the Office of Personnel Management a copy of each notice filed with the chief judge under this subsection.
(f) Other rules made applicable
The rules of subsections (f), (g), (h)(2), (i), and (j), and the first sentence of subsection (h)(1), of section 7447 shall apply to a special trial judge in the same manner as a judge of the Tax Court. For purposes of the preceding sentence, any reference to the President in such subsections shall be applied as if it were a reference to the chief judge.
(Added
Statutory Notes and Related Subsidiaries
Effective Date
§7448. Annuities to surviving spouses and dependent children of judges and special trial judges
(a) Definitions
For purposes of this section—
(1) The term "Tax Court" means the United States Tax Court.
(2) The term "judge" means the chief judge or a judge of the Tax Court, including any individual receiving retired pay (or compensation in lieu of retired pay) under section 7447 whether or not performing judicial duties pursuant to section 7447(c).
(3) The term "chief judge" means the chief judge of the Tax Court.
(4) The term "judge's salary" means the salary of a judge received under section 7443(c), retired pay received under section 7447(d), and compensation (in lieu of retired pay) received under section 7447(c).
(5) The term "special trial judge" means a judicial officer appointed pursuant to section 7443A, including any individual receiving an annuity under
(6) The term "special trial judge's salary" means the salary of a special trial judge received under section 7443A(d), any amount received as an annuity under
(7) The term "survivors annuity fund" means the Tax Court judges survivors annuity fund established by this section.
(8) The term "surviving spouse" means a surviving spouse of an individual, who either (A) shall have been married to such individual for at least 2 years immediately preceding his death or (B) is a parent of issue by such marriage, and who has not remarried.
(9) The term "dependent child" means an unmarried child, including a dependent stepchild or an adopted child, who is under the age of 18 years or who because of physical or mental disability is incapable of self-support.
(10) The terms "assassinated" and "assassination" mean the killing of a judge or special trial judge that is motivated by the performance by the judge or special trial judge of his or her official duties.
(b) Election
(1) Judges
Any judge may by written election filed while he is a judge (except that in the case of an individual who is not reappointed following expiration of his term of office, it may be made at any time before the day after the day on which his successor takes office) bring himself within the purview of this section. In the case of any judge other than the chief judge the election shall be filed with the chief judge; in the case of the chief judge the election shall be filed as prescribed by the Tax Court.
(2) Special trial judges
Any special trial judge may by written election filed with the chief judge elect the application of this section. Such election shall be filed while such individual is a special trial judge.
(c) Survivors annuity fund
(1) Salary deductions
There shall be deducted and withheld from the salary of each judge or special trial judge electing under subsection (b) a sum equal to 3.5 percent of such judge's or special trial judge's salary. The amounts so deducted and withheld from such judge's or special trial judge's salary shall, in accordance with such procedure as may be prescribed by the Comptroller General of the United States, be deposited in the Treasury of the United States to the credit of a fund to be known as the "Tax Court judicial officers survivors annuity fund" and said fund is appropriated for the payment of annuities, refunds, and allowances as provided by this section. Each judge or special trial judge electing under subsection (b) shall be deemed thereby to consent and agree to the deductions from his salary as provided in this subsection, and payment less such deductions shall be a full and complete discharge and acquittance of all claims and demands whatsoever for all judicial services rendered by such judge or special trial judge during the period covered by such payment, except the right to the benefits to which he or his survivors shall be entitled under the provisions of this section.
(2) Appropriations where unfunded liability
(A) In general
Not later than the close of each fiscal year, there shall be deposited in the Treasury of the United States to the credit of the survivors annuity fund, in accordance with such procedures as may be prescribed by the Comptroller General of the United States, amounts required to reduce to zero the unfunded liability (if any) of such fund. Subject to appropriation Acts, such deposits shall be taken from sums available for such fiscal year for the payment of amounts described in subsection (a)(4) and section 7443A(d), and shall immediately become an integrated part of such fund.
(B) Exception
The amount required by subparagraph (A) to be deposited in any fiscal year shall not exceed an amount equal to 11 percent of the aggregate amounts described in subsection (a)(4) and (a)(6) paid during such fiscal year.
(C) Unfunded liability defined
For purposes of subparagraph (A), the term "unfunded liability" means the amount estimated by the Secretary to be equal to the excess (as of the close of the fiscal year involved) of—
(i) the present value of all benefits payable from the survivors annuity fund (determined on an annual basis in accordance with
(ii) the sum of—
(I) the present values of future deductions under subsection (c) and future deposits under subsection (d), plus
(II) the balance in such fund as of the close of such fiscal year.
(D) Amounts not credited to individual accounts
Amounts appropriated pursuant to this paragraph shall not be credited to the account of any individual for purposes of subsection (g).
(d) Deposits in survivors annuity fund
Each judge or special trial judge electing under subsection (b) shall deposit, with interest at 3 percent per annum, compounded on December 31 of each year, to the credit of the survivors annuity fund, a sum equal to 3.5 percent of his judge's or special trial judge's salary and of his basic salary, pay, or compensation for service as a Senator, Representative, Delegate, or Resident Commissioner in Congress, and for any other civilian service within the purview of
(e) Investment of survivors annuity fund
The Secretary of the Treasury shall invest from time to time, in interest-bearing securities of the United States or Federal farm loan bonds, such portions of the survivors annuity fund as in his judgment may not be immediately required for the payment of the annuities, refunds, and allowances as provided in this section. The income derived from such investments shall constitute a part of said fund for the purpose of paying annuities and of carrying out the provisions of subsections (g), (h), and (j).
(f) Crediting of deposits
The amount deposited by or deducted and withheld from the salary of each judge or special trial judge electing to bring himself within the purview of this section for credit to the survivors annuity fund shall be credited to an individual account of such judge or special trial judge.
(g) Termination
If the service of any judge or special trial judge electing under subsection (b) terminates other than pursuant to the provisions of section 7447 or if any judge or special trial judge ceases to be married after making the election under subsection (b) and revokes (in a writing filed as provided in subsection (b)) such election, the amount credited to his individual account, together with interest at 3 percent per annum, compounded on December 31 of each year, to the date of his relinquishment of office, shall be returned to him. For the purpose of this section, the service of any judge or special trial judge electing under subsection (b) who is not reappointed following expiration of his term but who, at the time of such expiration, is eligible for and elects to receive retired pay under section 7447 shall be deemed to have terminated pursuant to said section.
(h) Entitlement to annuity
(1) In general
(A) Annuity to surviving spouse
If a judge or special trial judge described in paragraph (2) is survived by a surviving spouse but not by a dependent child, there shall be paid to such surviving spouse an annuity beginning with the day of the death of the judge or special trial judge or following the surviving spouse's attainment of age 50, whichever is the later, in an amount computed as provided in subsection (m).
(B) Annuity to surviving spouse and child
If a judge or special trial judge described in paragraph (2) is survived by a surviving spouse and dependent child or children, there shall be paid to such surviving spouse an annuity, beginning on the day of the death of the judge or special trial judge, in an amount computed as provided in subsection (m), and there shall also be paid to or on behalf of each such child an immediate annuity equal to the lesser of—
(i) 10 percent of the average annual salary of such judge or special trial judge (determined in accordance with subsection (m)), or
(ii) 20 percent of such average annual salary, divided by the number of such children.
(C) Annuity to surviving dependent children
If a judge or special trial judge described in paragraph (2) leaves no surviving spouse but leaves a surviving dependent child or children, there shall be paid to or on behalf of each such child an immediate annuity equal to the lesser of—
(i) 20 percent of the average annual salary of such judge or special trial judge (determined in accordance with subsection (m)), or
(ii) 40 percent of such average annual salary divided by the number of such children.
(2) Covered judges
Paragraph (1) applies to any judge or special trial judge electing under subsection (b)—
(A) who dies while a judge or special trial judge after having rendered at least 18 months of civilian service computed as prescribed in subsection (n), for the last 18 months of which the salary deductions provided for by subsection (c)(1) or the deposits required by subsection (d) have actually been made or the salary deductions required by the civil service retirement laws have actually been made, or
(B) who dies by assassination after having rendered less than 18 months of civilian service computed as prescribed in subsection (n) if, for the period of such service, the salary deductions provided for by subsection (c)(1) or the deposits required by subsection (d) have actually been made.
(3) Termination of annuity
(A) Surviving spouse
The annuity payable to a surviving spouse under this subsection shall be terminable upon such surviving spouse's death or such surviving spouse's remarriage before attaining age 55.
(B) Surviving child
Any annuity payable to a child under this subsection shall be terminable upon the earliest of—
(i) the child's attainment of age 18,
(ii) the child's marriage, or
(iii) the child's death,
except that if such child is incapable of self-support by reason of mental or physical disability the child's annuity shall be terminable only upon death, marriage, or recovery from such disability.
(C) Dependent child after death of surviving spouse
In case of the death of a surviving spouse of a judge or special trial judge leaving a dependent child or children of the judge or special trial judge surviving such spouse, the annuity of such child or children shall be recomputed and paid as provided in paragraph (1)(C).
(D) Recomputation with respect to other dependent children
In any case in which the annuity of a dependent child is terminated under this subsection, the annuities of any remaining dependent child or children based upon the service of the same judge or special trial judge shall be recomputed and paid as though the child whose annuity was so terminated had not survived such judge.
(E) Special rule for assassinated judges
In the case of a survivor of a judge or special trial judge described in paragraph (2)(B), there shall be deducted from the annuities otherwise payable under this section an amount equal to the amount of salary deductions that would have been made if such deductions had been made for 18 months prior to the death of the judge or special trial judge.
(i) Determination by chief judge
(1) Dependency and disability
Questions of dependency and disability arising under this section shall be determined by the chief judge subject to review only by the Tax Court, the decision of which shall be final and conclusive. The chief judge may order or direct at any time such medical or other examinations as he shall deem necessary to determine the facts relative to the nature and degree of disability of any dependent child who is an annuitant or applicant for annuity under this section, and may suspend or deny any such annuity for failure to submit to any examination so ordered or directed.
(2) Assassination
The chief judge shall determine whether the killing of a judge or special trial judge was an assassination, subject to review only by the Tax Court. The head of any Federal agency that investigates the killing of a judge or special trial judge shall provide to the chief judge any information that would assist the chief judge in making such a determination.
(j) Payments in certain cases
(1) In any case in which—
(A) a judge or special trial judge electing under subsection (b) shall die while in office (whether in regular active service, retired from such service under section 7447, or receiving any annuity under
(B) the right of all persons entitled to annuity under subsection (h) based on the service of such judge or special trial judge shall terminate before a valid claim therefor shall have been established,
the total amount credited to the individual account of such judge or special trial judge, with interest at 3 percent per annum, compounded on December 31 of each year, to the date of the death of such judge or special trial judge, shall be paid, upon the establishment of a valid claim therefor, to the person or persons surviving at the date title to the payment arises, in the following order of precedence, and such payment shall be a bar to recovery by any other person:
(i) to the beneficiary or beneficiaries whom the judge or special trial judge may have designated by a writing filed prior to his death with the chief judge, except that in the case of the chief judge such designation shall be by a writing filed by him, prior to his death, as prescribed by the Tax Court;
(ii) if there be no such beneficiary, to the surviving spouse of such judge or special trial judge;
(iii) if none of the above, to the child or children of such judge or special trial judge and the descendants of any deceased children by representation;
(iv) if none of the above, to the parents of such judge or special trial judge or the survivor of them;
(v) if none of the above, to the duly appointed executor or administrator of the estate of such judge or special trial judge; and
(vi) if none of the above, to such other next of kin of such judge or special trial judge as may be determined by the chief judge to be entitled under the laws of the domicile of such judge or special trial judge at the time of his death.
Determination as to the surviving spouse, child, or parent of a judge or special trial judge for the purposes of this paragraph shall be made by the chief judge without regard to the definitions in paragraphs (8) and (9) of subsection (a).
(2) In any case in which the annuities of all persons entitled to annuity based upon the service of a judge or special trial judge shall terminate before the aggregate amount of annuity paid equals the total amount credited to the individual account of such judge or special trial judge, with interest at 3 percent per annum, compounded on December 31 of each year, to the date of the death of such judge or special trial judge, the difference shall be paid, upon establishment of a valid claim therefor, in the order of precedence prescribed in paragraph (1).
(3) Any accrued annuity remaining unpaid upon the termination (other than by death) of the annuity of any person based upon the service of a judge or special trial judge shall be paid to such person. Any accrued annuity remaining unpaid upon the death of any person receiving annuity based upon the service of a judge or special trial judge shall be paid, upon the establishment of a valid claim therefor, in the following order of precedence:
(A) to the duly appointed executor or administrator of the estate of such person;
(B) if there is no such executor or administrator payment may be made, after the expiration of thirty days from the date of the death of such person, to such individual or individuals as may appear in the judgment of the chief judge to be legally entitled thereto, and such payment shall be a bar to recovery by any other individual.
(k) Payments to persons under legal disability
Where any payment under this section is to be made to a minor, or to a person mentally incompetent or under other legal disability adjudged by a court of competent jurisdiction, such payment may be made to the person who is constituted guardian or other fiduciary by the law of the State of residence of such claimant or is otherwise legally vested with the care of the claimant or his estate. Where no guardian or other fiduciary of the person under legal disability has been appointed under the laws of the State of residence of the claimant, the chief judge shall determine the person who is otherwise legally vested with the care of the claimant or his estate.
(l) Method of payment of annuities
Annuities granted under the terms of this section shall accrue monthly and shall be due and payable in monthly installments on the first business day of the month following the month or other period for which the annuity shall have accrued. None of the moneys mentioned in this section shall be assignable, either in law or in equity, or subject to execution, levy, attachment, garnishment, or other legal process.
(m) Computation of annuities
The annuity of the surviving spouse of a judge or special trial judge electing under subsection (b) shall be an amount equal to the sum of—
(1) the product of—
(A) 1.5 percent of the average annual salary (whether judge's or special trial judge's salary or compensation for other allowable service) received by such judge or special trial judge—
(i) for judicial service (including periods in which he received retired pay under section 7447(d), section 7447A(d), or any annuity under
(ii) in the case of a judge or special trial judge who has served less than 3 years, during the total period of such service prior to such judge's or special trial judge's death, multiplied by the sum of, multiplied by 1
(B) the sum of—
(i) the judge's or special trial judge's years of such judicial service,
(ii) the judge's or special trial judge's years of prior allowable service as a Senator, Representative, Delegate, or Resident Commissioner in Congress,
(iii) the judge's or special trial judge's years of prior allowable service performed as a member of the Armed Forces of the United States, and
(iv) the judge's or special trial judge's years, not exceeding 15, of prior allowable service performed as a congressional employee (as defined in
(2) three-fourths of 1 percent of such average annual salary multiplied by the judge's years of any other prior allowable service,
except that such annuity shall not exceed an amount equal to 50 percent of such average annual salary, nor be less than an amount equal to 25 percent of such average annual salary, and shall be further reduced in accordance with subsection (d) (if applicable). In determining the period of 3 consecutive years referred to in the preceding sentence, there may not be taken into account any period for which an election under section 7447(f)(4) is in effect.
(n) Includible service
Subject to the provisions of subsection (d), the years of service of a judge or special trial judge which are allowable as the basis for calculating the amount of the annuity of his surviving spouse shall include his years of service as a member of the United States Board of Tax Appeals, as a judge or special trial judge of the Tax Court of the United States, and as a judge or special trial judge of the Tax Court, his years of service pursuant to any appointment under section 7443A, his years of service as a Senator, Representative, Delegate, or Resident Commissioner in Congress, his years of active service as a member of the Armed Forces of the United States not exceeding 5 years in the aggregate and not including any such service for which credit is allowed for the purposes of retirement or retired pay under any other provision of law, and his years of any other civilian service within the purview of
(o) Simultaneous entitlement
Nothing contained in this section shall be construed to prevent a surviving spouse eligible therefor from simultaneously receiving an annuity under this section and any annuity to which such spouse would otherwise be entitled under any other law without regard to this section, but in computing such other annuity service used in the computation of such spouse's annuity under this section shall not be credited.
(p) Estimates of expenditures
The chief judge shall submit to the President annual estimates of the expenditures and appropriations necessary for the maintenance and operation of the survivors annuity fund, and such supplemental and deficiency estimates as may be required from time to time for the same purposes, according to law. The chief judge shall cause periodic examinations of the survivors annuity fund to be made by an actuary, who may be an actuary employed by another department of the Government temporarily assigned for the purpose, and whose findings and recommendations shall be transmitted by the chief judge to the Tax Court.
(q) Transitional provision
In the case of a judge who dies within 6 months after the date of enactment of this section after having rendered at least 5 years of civilian service computed as prescribed in subsection (n), but without having made an election as provided in subsection (b), an annuity shall be paid to his surviving spouse and surviving dependents as is provided in this section, as if such judge had elected on the day of his death to bring himself within the purview of this section but had not made the deposit provided for by subsection (d). An annuity shall be payable under this section computed upon the basis of the actual length of service as a judge and other allowable service of the judge and subject to the reduction required by subsection (d) even though no deposit has been made, as required by subsection (h) with respect to any of such service.
(r) Waiver of civil service benefits
Any judge electing under subsection (b) shall, at the time of such election, waive all benefits under the civil service retirement laws. Such a waiver shall be made in the same manner and shall have the same force and effect as an election filed under section 7447(e).
(s) Increases in survivor annuities
Each time that an increase is made under
(t) Authorization of appropriation
Funds necessary to carry out the provisions of this section may be appropriated out of any money in the Treasury not otherwise appropriated.
(u) Other benefits in case of assassination
In the case of a judge or special trial judge who is assassinated, an annuity shall be paid under this section notwithstanding a survivor's eligibility for or receipt of benefits under
(Added
Editorial Notes
References in Text
The date of the enactment of this paragraph, referred to in subsec. (b)(2)(A), is the date of enactment of
Amendments
2022—Subsec. (a)(10).
Subsec. (b)(2).
"(A) 6 months after the date of the enactment of this paragraph,
"(B) the date the judge takes office, or
"(C) the date the judge marries."
Subsec. (d).
Subsec. (h).
Subsec. (i).
Subsec. (m).
Subsec. (n).
Subsec. (u).
2018—Subsec. (a)(5).
Subsec. (a)(6).
Subsec. (d).
Subsec. (j)(1)(A).
Subsec. (m).
2014—Subsec. (a)(2).
Subsec. (g).
Subsec. (j)(1), (2).
2006—
Subsec. (a)(5) to (9).
Subsec. (b).
Subsec. (c)(1).
Subsec. (c)(2)(A).
Subsec. (c)(2)(B).
Subsec. (d).
Subsecs. (f) to (h).
Subsec (j).
Subsec. (j)(1).
Subsec. (j)(1)(A).
Subsec. (m).
Subsec. (n).
Subsec. (s).
1986—Subsec. (c).
Subsec. (d).
Subsec. (g).
Subsec. (h).
Subsec. (h)(2).
"(A) 10 percent of the average annual salary of such judge (determined in accordance with subsection (m)), or
"(B) 20 percent of such average annual salary, divided by the number of such children; or" for "one-half the amount of the annuity of such surviving spouse, but not to exceed $4,644 per year divided by the number of such children or $1,548 per year, whichever is lesser; or".
Subsec. (h)(3).
"(A) 20 percent of the average annual salary of such judge (determined in accordance with subsection (m)), or
"(B) 40 percent of such average annual salary, divided by the number of such children" for "the amount of the annuity to which such surviving spouse would have been entitled under paragraph (2) of this subsection had such spouse survived, but not to exceed $5,580 per year divided by the number of such children or $1,860 per year, whichever is lesser".
Subsec. (m).
1984—Subsec. (h)(2).
Subsec. (h)(3).
Subsec. (p).
1982—Subsec. (m).
Subsecs. (s), (t).
1976—
Subsec. (a)(6).
Subsec. (d).
Subsec. (h).
Subsecs. (j), (m), (n).
Subsec. (o).
Subsec. (q).
1971—Subsec. (m).
1969—Subsec. (a)(1).
Subsec. (b).
Subsec. (d).
Subsec. (h).
Subsec. (m).
Subsec. (n).
Subsec. (r).
Statutory Notes and Related Subsidiaries
Effective Date of 2014 Amendment
Amendment by
Effective Date of 2006 Amendment
Effective Date of 1986 Amendment
Amendment by section 1557(c) of
"(1)
"(A) The amendment made by subsection (a)(1)(A) [amending this section] shall apply to amounts paid after November 1, 1986.
"(B) The amendment made by subsection (a)(1)(B) [amending this section] shall apply to service after November 1, 1986.
"(2)
"(3)
"(4)
"(A)
"(B)
"(C)
"(5)
Effective Date of 1984 Amendment
Effective Date of 1982 Amendment
"(1)
"(2)
Effective Date of 1976 Amendment
Amendment by
Effective Date of 1971 Amendment
Effective Date of 1969 Amendment
Amendment by
Savings Provision
For provisions that nothing in amendment by section 401(b)(51)–(53) of
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
Catchup for Survivors Annuities in Pay Status on October 25, 1982
[
PART II—PROCEDURE
Editorial Notes
Amendments
2021—
2015—
1998—
1984—
1980—
1978—
1972—
1969—
1 Section catchline amended by
§7451. Petitions
(a) Fees
The Tax Court is authorized to impose a fee in an amount not in excess of $60 to be fixed by the Tax Court for the filing of any petition.
(b) Tolling of time in certain cases
(1) In general
Notwithstanding any other provision of this title, in any case (including by reason of a lapse in appropriations) in which a filing location is inaccessible or otherwise unavailable to the general public on the date a petition is due, the relevant time period for filing such petition shall be tolled for the number of days within the period of inaccessibility plus an additional 14 days.
(2) Filing location
For purposes of this subsection, the term "filing location" means—
(A) the office of the clerk of the Tax Court, or
(B) any on-line portal made available by the Tax Court for electronic filing of petitions.
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
2021—
2006—
1982—
1981—
1976—
1974—
Statutory Notes and Related Subsidiaries
Effective Date of 2021 Amendment
Effective Date of 2006 Amendment
Effective Date of 1982 Amendment
Amendment by
Effective Date of 1981 Amendment
Effective Date of 1976 Amendment
Amendment by
Effective Date of 1974 Amendment
Amendment by
§7452. Representation of parties
The Secretary shall be represented by the Chief Counsel for the Internal Revenue Service or his delegate in the same manner before the Tax Court as he has heretofore been represented in proceedings before such Court. The taxpayer shall continue to be represented in accordance with the rules of practice prescribed by the Court. No qualified person shall be denied admission to practice before the Tax Court because of his failure to be a member of any profession or calling.
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
1976—
1959—
Statutory Notes and Related Subsidiaries
Effective Date of 1959 Amendment
Amendment by
§7453. Rules of practice, procedure, and evidence
Except in the case of proceedings conducted under section 7436(c) or 7463, the proceedings of the Tax Court and its divisions shall be conducted in accordance with such rules of practice and procedure (other than rules of evidence) as the Tax Court may prescribe and in accordance with the Federal Rules of Evidence.
(Aug. 16, 1954, ch. 736,
Editorial Notes
References in Text
The Federal Rules of Evidence, referred to in text, are set out in the Appendix to Title 28, Judiciary and Judicial Procedure.
Amendments
2015—
1997—
1969—
Statutory Notes and Related Subsidiaries
Effective Date of 2015 Amendment
Effective Date of 1969 Amendment
Amendment by
Tax Court Rule Making Not Affected
Authority of Tax Court to prescribe rules under this section unaffected by amendments of title IV of
§7454. Burden of proof in fraud, foundation manager, and transferee cases
(a) Fraud
In any proceeding involving the issue whether the petitioner has been guilty of fraud with intent to evade tax, the burden of proof in respect of such issue shall be upon the Secretary.
(b) Foundation managers
In any proceeding involving the issue whether a foundation manager (as defined in section 4946(b)) has "knowingly" participated in an act of self-dealing (within the meaning of section 4941), participated in an investment which jeopardizes the carrying out of exempt purposes (within the meaning of section 4944), or agreed to the making of a taxable expenditure (within the meaning of section 4945), or whether the trustee of a trust described in section 501(c)(21) has "knowingly" participated in an act of self-dealing (within the meaning of section 4951) or agreed to the making of a taxable expenditure (within the meaning of section 4952), or whether an organization manager (as defined in section 4955(f)(2)) has "knowingly" agreed to the making of a political expenditure (within the meaning of section 4955), or whether an organization manager (as defined in section 4912(d)(2)) has "knowingly" agreed to the making of disqualifying lobbying expenditures within the meaning of section 4912(b), or whether an organization manager (as defined in section 4958(f)(2)) has "knowingly" participated in an excess benefit transaction (as defined in section 4958(c)), the burden of proof in respect of such issue shall be upon the Secretary.
(c) Cross reference
For provisions relating to burden of proof as to transferee liability, see section 6902(a).
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
2018—Subsec. (b).
1996—Subsec. (b).
1987—Subsec. (b).
1980—Subsec. (b).
1978—Subsec. (b).
1976—Subsecs. (a), (b).
1969—
Subsecs (b), (c).
Statutory Notes and Related Subsidiaries
Effective Date of 1996 Amendment
Amendment by
Effective Date of 1987 Amendment
Amendment by section 10712(c)(6) of
Amendment by section 10714(b) of
Effective Date of 1980 Amendment
Amendment by
Effective Date of 1978 Amendment
Amendment by
Effective Date of 1969 Amendment
Amendment by
§7455. Service of process
The mailing by certified mail or registered mail of any pleading, decision, order, notice, or process in respect of proceedings before the Tax Court shall be held sufficient service of such pleading, decision, order, notice, or process.
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
1958—
Statutory Notes and Related Subsidiaries
Effective Date of 1958 Amendment
Amendment by
§7456. Administration of oaths and procurement of testimony
(a) In general
For the efficient administration of the functions vested in the Tax Court or any division thereof, any judge or special trial judge of the Tax Court, the clerk of the court or his deputies, as such, or any other employee of the Tax Court designated in writing for the purpose by the chief judge, may administer oaths, and any judge or special trial judge of the Tax Court may examine witnesses and require, by subpoena ordered by the Tax Court or any division thereof and signed by the judge or special trial judge (or by the clerk of the Tax Court or by any other employee of the Tax Court when acting as deputy clerk)—
(1) the attendance and testimony of witnesses, and the production of all necessary returns, books, papers, documents, correspondence, and other evidence, from any place in the United States at any designated place of hearing, or
(2) the taking of a deposition before any designated individual competent to administer oaths under this title. In the case of a deposition the testimony shall be reduced to writing by the individual taking the deposition or under his direction and shall then be subscribed by the deponent.
(b) Production of records in the case of foreign corporations, foreign trusts or estates and nonresident alien individuals
The Tax Court or any division thereof, upon motion and notice by the Secretary, and upon good cause shown therefor, shall order any foreign corporation, foreign trust or estate, or nonresident alien individual, who has filed a petition with the Tax Court, to produce, or, upon satisfactory proof to the Tax Court or any of its divisions, that the petitioner is unable to produce, to make available to the Secretary, and, in either case, to permit the inspection, copying, or photographing of, such books, records, documents, memoranda, correspondence and other papers, wherever situated, as the Tax Court or any division thereof, may deem relevant to the proceedings and which are in the possession, custody or control of the petitioner, or of any person directly or indirectly under his control or having control over him or subject to the same common control. If the petitioner fails or refuses to comply with any of the provisions of such order, after reasonable time for compliance has been afforded to him, the Tax Court or any division thereof, upon motion, shall make an order striking out pleadings or parts thereof, or dismissing the proceeding or any part thereof, or rendering a judgment by default against the petitioner. For the purpose of this subsection, the term "foreign trust or estate" includes an estate or trust, any fiduciary of which is a foreign corporation or nonresident alien individual; and the term "control" is not limited to legal control.
(c) Incidental powers
The Tax Court and each division thereof shall have power to punish by fine or imprisonment, at its discretion, such contempt of its authority, and none other, as—
(1) misbehavior of any person in its presence or so near thereto as to obstruct the administration of justice;
(2) misbehavior of any of its officers in their official transactions; or
(3) disobedience or resistance to its lawful writ, process, order, rule, decree, or command.
It shall have such assistance in the carrying out of its lawful writ, process, order, rule, decree, or command as is available to a court of the United States. The United States marshal for any district in which the Tax Court is sitting shall, when requested by the chief judge of the Tax Court, attend any session of the Tax Court in such district and may otherwise provide, when requested by the chief judge of the Tax Court, for the security of the Tax Court, including the personal protection of Tax Court judges, court officers, witnesses, and other threatened persons in the interests of justice, where criminal intimidation impedes on the functioning of the judicial process or any other official proceeding. The United States Marshals Service retains final authority regarding security requirements for the Tax Court.
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
2008—Subsec. (c).
1986—Subsec. (c).
Subsec. (d).
Subsec. (e).
1984—Subsec. (a).
Subsec. (c).
Subsec. (d).
1982—Subsec. (c).
Subsecs. (d), (e).
1980—Subsec. (c).
1978—Subsec. (a).
Subsec. (c).
1976—Subsec. (b).
1969—Subsec. (c).
Subsec. (d).
Statutory Notes and Related Subsidiaries
Effective Date of 1986 Amendment
Amendment by section 1556(b)(1) of
Effective Date of 1984 Amendment
Effective Date of 1982 Amendments
Amendment by
Amendment by
Effective Date of 1980 Amendment
Effective Date of 1978 Amendment
Amendment by section 336(b)(1) of
Amendment by section 502(c) of
Effective Date of 1969 Amendment
Amendment by
Reimbursement
References to Commissioners Deemed References to Special Trial Judges
Commissioners' Salaries Pending Changes Under Federal Salary Act
§7457. Witness fees
(a) Amount
Any witness summoned or whose deposition is taken under section 7456 shall receive the same fees and mileage as witnesses in courts of the United States.
(b) Payment
Such fees and mileage and the expenses of taking any such deposition shall be paid as follows:
(1) Witnesses for Secretary
In the case of witnesses for the Secretary, such payments shall be made by the Secretary out of any moneys appropriated for the collection of internal revenue taxes, and may be made in advance.
(2) Other Witnesses
In the case of any other witnesses, such payments shall be made, subject to rules prescribed by the Tax Court, by the party at whose instance the witness appears or the deposition is taken.
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
1976—Subsec. (b)(1).
§7458. Hearings
Notice and opportunity to be heard upon any proceeding instituted before the Tax Court shall be given to the taxpayer and the Secretary. If an opportunity to be heard upon the proceeding is given before a division of the Tax Court, neither the taxpayer nor the Secretary shall be entitled to notice and opportunity to be heard before the Tax Court upon review, except upon a specific order of the chief judge. Hearings before the Tax Court and its divisions shall be open to the public, and the testimony, and, if the Tax Court so requires, the argument, shall be stenographically reported. The Tax Court is authorized to contract (by renewal of contract or otherwise) for the reporting of such hearings, and in such contract to fix the terms and conditions under which transcripts will be supplied by the contractor to the Tax Court and to other persons and agencies.
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
1976—
§7459. Reports and decisions
(a) Requirement
A report upon any proceeding instituted before the Tax Court and a decision thereon shall be made as quickly as practicable. The decision shall be made by a judge in accordance with the report of the Tax Court, and such decision so made shall, when entered, be the decision of the Tax Court.
(b) Inclusion of findings of fact or opinions in report
It shall be the duty of the Tax Court and of each division to include in its report upon any proceeding its findings of fact or opinion or memorandum opinion. The Tax Court shall report in writing all its findings of fact, opinions, and memorandum opinions. Subject to such conditions as the Tax Court may by rule provide, the requirements of this subsection and of section 7460 are met if findings of fact or opinion are stated orally and recorded in the transcript of the proceedings.
(c) Date of decision
A decision of the Tax Court (except a decision dismissing a proceeding for lack of jurisdiction) shall be held to be rendered upon the date that an order specifying the amount of the deficiency is entered in the records of the Tax Court or, in the case of a declaratory judgment proceeding under part IV of this subchapter or under section 7428 or in the case of an action brought under section 6234, the date of the court's order entering the decision. If the Tax Court dismisses a proceeding for reasons other than lack of jurisdiction and is unable from the record to determine the amount of the deficiency determined by the Secretary, or if the Tax Court dismisses a proceeding for lack of jurisdiction, an order to that effect shall be entered in the records of the Tax Court, and the decision of the Tax Court shall be held to be rendered upon the date of such entry.
(d) Effect of decision dismissing petition
If a petition for a redetermination of a deficiency has been filed by the taxpayer, a decision of the Tax Court dismissing the proceeding shall be considered as its decision that the deficiency is the amount determined by the Secretary. An order specifying such amount shall be entered in the records of the Tax Court unless the Tax Court cannot determine such amount from the record in the proceeding, or unless the dismissal is for lack of jurisdiction.
(e) Effect of decision that tax is barred by limitation
If the assessment or collection of any tax is barred by any statute of limitations, the decision of the Tax Court to that effect shall be considered as its decision that there is no deficiency in respect of such tax.
(f) Findings of fact as evidence
The findings of the Board of Tax Appeals made in connection with any decision prior to February 26, 1926, shall, notwithstanding the enactment of the Revenue Act of 1926 (
(g) Penalty
For penalty for taxpayer instituting proceedings before Tax Court merely for delay, see section 6673.
(Aug. 16, 1954, ch. 736,
Editorial Notes
References in Text
The Revenue Act of 1926, referred to in subsec. (f), is act Feb. 26, 1926, ch. 27,
Amendments
2015—Subsec. (c).
1997—Subsec. (c).
1982—Subsec. (b).
Subsec. (c).
1976—Subsec. (c).
Subsec. (d).
1974—Subsec. (c).
Statutory Notes and Related Subsidiaries
Effective Date of 2015 Amendment
Amendment by
Effective Date of 1997 Amendment
Amendment by section 1222(b)(2) of
Amendment by section 1239(e)(1) of
Effective Date of 1982 Amendment
Amendment by
Effective Date of 1976 Amendment
Amendment by section 1306(b)(2) of
Effective Date of 1974 Amendment
Amendment by
§7460. Provisions of special application to divisions
(a) Hearings, determinations, and reports
A division shall hear, and make a determination upon, any proceeding instituted before the Tax Court and any motion in connection therewith, assigned to such division by the chief judge, and shall make a report of any such determination which constitutes its final disposition of the proceeding.
(b) Effect of action by a division
The report of the division shall become the report of the Tax Court within 30 days after such report by the division, unless within such period the chief judge has directed that such report shall be reviewed by the Tax Court. Any preliminary action by a division which does not form the basis for the entry of the final decision shall not be subject to review by the Tax Court except in accordance with such rules as the Tax Court may prescribe. The report of a division shall not be a part of the record in any case in which the chief judge directs that such report shall be reviewed by the Tax Court.
(Aug. 16, 1954, ch. 736,
§7461. Publicity of proceedings
(a) General rule
Except as provided in subsection (b), all reports of the Tax Court and all evidence received by the Tax Court and its divisions, including a transcript of the stenographic report of the hearings, shall be public records open to the inspection of the public.
(b) Exceptions
(1) Trade secrets or other confidential information
The Tax Court may make any provision which is necessary to prevent the disclosure of trade secrets or other confidential information, including a provision that any document or information be placed under seal to be opened only as directed by the court.
(2) Evidence, etc.
After the decision of the Tax Court in any proceeding has become final, the Tax Court may, upon motion of the taxpayer or the Secretary, permit the withdrawal by the party entitled thereto of originals of books, documents, and records, and of models, diagrams, and other exhibits, introduced in evidence before the Tax Court or any division; or the Tax Court may, on its own motion, make such other disposition thereof as it deems advisable.
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
1984—
1976—
Statutory Notes and Related Subsidiaries
Effective Date of 1984 Amendment
§7462. Publication of reports
The Tax Court shall provide for the publication of its reports at the Government Publishing Office in such form and manner as may be best adapted for public information and use, and such authorized publication shall be competent evidence of the reports of the Tax Court therein contained in all courts of the United States and of the several States without any further proof or authentication thereof. Such reports shall be subject to sale in the same manner and upon the same terms as other public documents.
(Aug. 16, 1954, ch. 736,
Statutory Notes and Related Subsidiaries
Change of Name
"Government Publishing Office" substituted for "Government Printing Office" in text on authority of section 1301(b) of
§7463. Disputes involving $50,000 or less
(a) In general
In the case of any petition filed with the Tax Court for a redetermination of a deficiency where neither the amount of the deficiency placed in dispute, nor the amount of any claimed overpayment, exceeds—
(1) $50,000 for any one taxable year, in the case of the taxes imposed by subtitle A,
(2) $50,000, in the case of the tax imposed by
(3) $50,000 for any one calendar year, in the case of the tax imposed by
(4) $50,000 for any 1 taxable period (or, if there is no taxable period, taxable event) in the case of any tax imposed by subtitle D which is described in section 6212(a) (relating to a notice of deficiency),
at the option of the taxpayer concurred in by the Tax Court or a division thereof before the hearing of the case, proceedings in the case shall be conducted under this section. Notwithstanding the provisions of section 7453, such proceedings shall be conducted in accordance with such rules of evidence, practice, and procedure as the Tax Court may prescribe. A decision, together with a brief summary of the reasons therefor, in any such case shall satisfy the requirements of sections 7459(b) and 7460.
(b) Finality of decisions
A decision entered in any case in which the proceedings are conducted under this section shall not be reviewed in any other court and shall not be treated as a precedent for any other case.
(c) Limitation of jurisdiction
In any case in which the proceedings are conducted under this section, notwithstanding the provisions of sections 6214(a) and 6512(b), no decision shall be entered redetermining the amount of a deficiency, or determining an overpayment, except with respect to amounts placed in dispute within the limits described in subsection (a) and with respect to amounts conceded by the parties.
(d) Discontinuance of proceedings
At any time before a decision entered in a case in which the proceedings are conducted under this section becomes final, the taxpayer or the Secretary may request that further proceedings under this section in such case be discontinued. The Tax Court, or the division thereof hearing such case, may, if it finds that (1) there are reasonable grounds for believing that the amount of the deficiency placed in dispute, or the amount of an overpayment, exceeds the applicable jurisdictional amount described in subsection (a), and (2) the amount of such excess is large enough to justify granting such request, discontinue further proceedings in such case under this section. Upon any such discontinuance, proceedings in such case shall be conducted in the same manner as cases to which the provisions of sections 6214(a) and 6512(b) apply.
(e) Amount of deficiency in dispute
For purposes of this section, the amount of any deficiency placed in dispute includes additions to the tax, additional amounts, and penalties imposed by
(f) Additional cases in which proceedings may be conducted under this section
At the option of the taxpayer concurred in by the Tax Court or a division thereof before the hearing of the case, proceedings may be conducted under this section (in the same manner as a case described in subsection (a)) in the case of—
(1) a petition to the Tax Court under section 6015(e) in which the amount of relief sought does not exceed $50,000,
(2) an appeal under section 6330(d)(1)(A) to the Tax Court of a determination in which the unpaid tax does not exceed $50,000, and
(3) a petition to the Tax Court under section 6404(h) in which the amount of the abatement sought does not exceed $50,000.
(Added
Editorial Notes
Prior Provisions
A prior section 7463 was renumbered
Amendments
2015—Subsec. (f)(3).
2000—Subsec. (f).
1998—
1990—Subsec. (f).
1984—
Subsec. (a).
1982—Section (a)(4).
1980—Subsec. (g).
1978—
Subsec. (a).
Subsec. (g).
1976—Subsec, (d).
1972—
Subsec. (a)(1), (2).
Subsec. (f).
Statutory Notes and Related Subsidiaries
Effective Date of 2015 Amendment
Effective Date of 1998 Amendment
Amendment by
Effective Date of 1984 Amendment
Effective Date of 1982 Amendment
Effective Date of 1980 Amendment
Amendment by
Effective Date of 1978 Amendment
"(1)
"(2)
Effective Date of 1972 Amendment
"(a)
"(b)
"(1) January 1, 1974, or
"(2) the first January 1 which is more than one year after the first date on which at least one State has notified the Secretary of the Treasury or his delegate of an election to enter into an agreement under section 6363 of such Code.
"(c)
Effective Date
Savings Provision
For provisions that nothing in amendment by
§7464. Intervention by trustee of debtor's estate
The trustee of the debtor's estate in any case under
(Added
Editorial Notes
Prior Provisions
A prior section 7464 was renumbered
Statutory Notes and Related Subsidiaries
Effective Date
Section effective Oct. 1, 1979, but not applicable to proceedings under Title 11, Bankruptcy, commenced before Oct. 1, 1979, see section 7(e) of
§7465. Provisions of special application to transferees
(1) For rules of burden of proof in transferee proceedings, see section 6902(a).
(2) For authority of Tax Court to prescribe rules by which a transferee of property of a taxpayer shall be entitled to examine books, records and other evidence, see section 6902(b).
(Aug. 16, 1954, ch. 736,
§7466. Judicial conduct and disability procedures
(a) In general
The Tax Court shall prescribe rules, consistent with the provisions of
(b) Judicial council
The provisions of
(c) Hearings
(1) In general
In conducting hearings pursuant to subsection (a), the Tax Court may exercise the authority provided under
(2) Reimbursement for expenses
The Tax Court shall have the power provided under section 361 of such title 28 to award reimbursement for the reasonable expenses described in that section. Reimbursements under this paragraph shall be made out of any funds appropriated for purposes of the Tax Court.
(Added
Statutory Notes and Related Subsidiaries
Effective Date
PART III—MISCELLANEOUS PROVISIONS
Editorial Notes
Amendments
2015—
1988—
§7470. Administration
Notwithstanding any other provision of law, the Tax Court may exercise, for purposes of management, administration, and expenditure of funds of the Court, the authorities provided for such purposes by any provision of law (including any limitation with respect to such provision of law) applicable to a court of the United States (as that term is defined in
(Added
§7470A. Judicial conference
(a) Judicial conference
The chief judge may summon the judges and special trial judges of the Tax Court to an annual judicial conference, at such time and place as the chief judge shall designate, for the purpose of considering the business of the Tax Court and recommending means of improving the administration of justice within the jurisdiction of the Tax Court. The Tax Court shall provide by its rules for representation and active participation at such conferences by persons admitted to practice before the Tax Court and by other persons active in the legal profession.
(b) Registration fee
The Tax Court may impose a reasonable registration fee on persons (other than judges and special trial judges of the Tax Court) participating at judicial conferences convened pursuant to subsection (a). Amounts so received by the Tax Court shall be available to the Tax Court to defray the expenses of such conferences.
(Added
§7471. Employees
(a) Appointment and compensation
(1) Clerk
The Tax Court may appoint a clerk without regard to the provisions of
(2) Judge-appointed employees
(A) In general
The judges and special trial judges of the Tax Court may appoint employees, in such numbers as the Tax Court may approve, without regard to the provisions of
(B) Exemption from Federal leave provisions
A law clerk appointed under this subsection shall be exempt from the provisions of subchapter I of
(3) Other employees
The Tax Court may appoint necessary employees without regard to the provisions of
(4) Pay
The Tax Court may fix and adjust the compensation for the clerk and other employees of the Tax Court without regard to the provisions of
(5) Programs
The Tax Court may establish programs for employee evaluations, incentive awards, flexible work schedules, premium pay, and resolution of employee grievances.
(6) Discrimination prohibited
The Tax Court shall—
(A) prohibit discrimination on the basis of race, color, religion, age, sex, national origin, political affiliation, marital status, or handicapping condition; and
(B) promulgate procedures for resolving complaints of discrimination by employees and applicants for employment.
(7) Experts and consultants
The Tax Court may procure the services of experts and consultants under
(8) Rights to certain appeals reserved
Notwithstanding any other provision of law, an individual who is an employee of the Tax Court on the day before the effective date of this subsection and who, as of that day, was entitled to—
(A) appeal a reduction in grade or removal to the Merit Systems Protection Board under
(B) appeal an adverse action to the Merit Systems Protection Board under
(C) appeal a prohibited personnel practice described under
(D) make an allegation of a prohibited personnel practice described under
(E) file an appeal with the Equal Employment Opportunity Commission under part 1614 of title 29 of the Code of Federal Regulations,
shall continue to be entitled to file such appeal or make such an allegation so long as the individual remains an employee of the Tax Court.
(9) Competitive status
Notwithstanding any other provision of law, any employee of the Tax Court who has completed at least 1 year of continuous service under a non-temporary appointment with the Tax Court acquires a competitive status for appointment to any position in the competitive service for which the employee possesses the required qualifications.
(10) Merit system principles, prohibited personnel practices, and preference eligibles
Any personnel management system of the Tax Court shall—
(A) include the principles set forth in
(B) prohibit personnel practices prohibited under
(C) in the case of any individual who would be a preference eligible in the executive branch, provide preference for that individual in a manner and to an extent consistent with preference accorded to preference eligibles in the executive branch.
(b) Expenses for travel and subsistence
The employees of the Tax Court shall receive their necessary traveling expenses, and expenses for subsistence while traveling on duty and away from their designated stations, as provided in
(c) Special trial judges
For compensation and travel and subsistence allowances of special trial judges of the Tax Court, see subsections (d) and (e) of section 7443A.
(Aug. 6, 1954, ch. 736,
Editorial Notes
References in Text
The effective date of this subsection, referred to in subsec. (a)(2)(B), (8), probably means the effective date of section 1(a) of
Amendments
2011—Subsec. (a).
1986—Subsec. (c).
1984—Subsec. (c).
1976—Subsec. (a).
Subsec. (b).
1969—Subsec. (c).
Statutory Notes and Related Subsidiaries
Effective Date of 2011 Amendment
Effective Date of 1986 Amendment
Amendment by
Effective Date of 1984 Amendment
Amendment by
Effective Date of 1976 Amendment
Amendment by
Effective Date of 1969 Amendment
Amendment by
§7472. Expenditures
The Tax Court is authorized to make such expenditures (including expenditures for personal services and rent at the seat of Government and elsewhere, and for law books, books of reference, and periodicals), as may be necessary efficiently to execute the functions vested in the Tax Court. Notwithstanding any other provision of law, the Tax Court is authorized to pay on behalf of its judges, age 65 or over, any increase in the cost of Federal Employees' Group Life Insurance imposed after April 24, 1999, that is incurred after the date of the enactment of the Pension Protection Act of 2006, including any expenses generated by such payments, as authorized by the chief judge in a manner consistent with such payments authorized by the Judicial Conference of the United States pursuant to
(Aug. 16, 1954, ch. 736,
Editorial Notes
References in Text
The date of the enactment of the Pension Protection Act of 2006, referred to in text, is the date of enactment of
Amendments
2009—
2006—
1986—
Statutory Notes and Related Subsidiaries
Effective Date of 2009 Amendment
Effective Date of 1986 Amendment
Amendment by
§7473. Disposition of fees
Except as provided in sections 7470A and 7475, all fees received by the Tax Court pursuant to this title shall be deposited into a special fund of the Treasury to be available to offset funds appropriated for the operation and maintenance of the Tax Court.
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
2015—
1986—
Statutory Notes and Related Subsidiaries
Effective Date of 1986 Amendment
Amendment by
§7474. Fee for transcript of record
The Tax Court is authorized to fix a fee, not in excess of the fee fixed by law to be charged and collected therefor by the clerks of the district courts, for comparing, or for preparing and comparing, a transcript of the record, or for copying any record, entry, or other paper and the comparison and certification thereof.
(Aug. 16, 1954, ch. 736,
§7475. Practice fee
(a) In general
The Tax Court is authorized to impose a periodic registration fee on practitioners admitted to practice before such Court. The frequency and amount of such fee shall be determined by the Tax Court, except that such amount may not exceed $30 per year.
(b) Use of fees
The fees described in subsection (a) shall be available to the Tax Court to employ independent counsel to pursue disciplinary matters and to provide services to pro se taxpayers.
(Added
Editorial Notes
Amendments
2006—Subsec. (b).
Statutory Notes and Related Subsidiaries
Effective Date of 2006 Amendment
Effective Date
PART IV—DECLARATORY JUDGMENTS
Editorial Notes
Amendments
1997—
1984—
1978—
1976—
1974—
§7476. Declaratory judgments relating to qualification of certain retirement plans
(a) Creation of remedy
In a case of actual controversy involving—
(1) a determination by the Secretary with respect to the initial qualification or continuing qualification of a retirement plan under subchapter D of
(2) a failure by the Secretary to make a determination with respect to—
(A) such initial qualification, or
(B) such continuing qualification if the controversy arises from a plan amendment or plan termination,
upon the filing of an appropriate pleading, the Tax Court may make a declaration with respect to such initial qualification or continuing qualification. Any such declaration shall have the force and effect of a decision of the Tax Court and shall be reviewable as such. For purposes of this section, a determination with respect to a continuing qualification includes any revocation of or other change in a qualification.
(b) Limitations
(1) Petitioner
A pleading may be filed under this section only by a petitioner who is the employer, the plan administrator, an employee who has qualified under regulations prescribed by the Secretary as an interested party for purposes of pursuing administrative remedies within the Internal Revenue Service, or the Pension Benefit Guaranty Corporation.
(2) Notice
For purposes of this section, the filing of a pleading by any petitioner may be held by the Tax Court to be premature, unless the petitioner establishes to the satisfaction of the court that he has complied with the requirements prescribed by regulations of the Secretary with respect to notice to other interested parties of the filing of the request for a determination referred to in subsection (a).
(3) Exhaustion of administrative remedies
The Tax Court shall not issue a declaratory judgment or decree under this section in any proceeding unless it determines that the petitioner has exhausted administrative remedies available to him within the Internal Revenue Service. A petitioner shall not be deemed to have exhausted his administrative remedies with respect to a failure by the Secretary to make a determination with respect to initial qualification or continuing qualification of a retirement plan before the expiration of 270 days after the request for such determination was made.
(4) Plan put into effect
No proceeding may be maintained under this section unless the plan (and, in the case of a controversy involving the continuing qualification of the plan because of an amendment to the plan, the amendment) with respect to which a decision of the Tax Court is sought has been put into effect before the filing of the pleading. A plan or amendment shall not be treated as not being in effect merely because under the plan the funds contributed to the plan may be refunded if the plan (or the plan as so amended) is found to be not qualified.
(5) Time for bringing action
If the Secretary sends by certified or registered mail notice of his determination with respect to the qualification of the plan to the persons referred to in paragraph (1) (or, in the case of employees referred to in paragraph (1), to any individual designated under regulations prescribed by the Secretary as a representative of such employee), no proceeding may be initiated under this section by any person unless the pleading is filed before the ninety-first day after the day after such notice is mailed to such person (or to his designated representative, in the case of an employee).
(c) Retirement plan
For purposes of this section, the term "retirement plan" means—
(1) a pension, profit-sharing, or stock bonus plan described in section 401(a) or a trust which is part of such a plan, or
(2) an annuity plan described in section 403(a).
(d) Cross reference
For provisions concerning intervention by Pension Benefit Guaranty Corporation and Secretary of Labor in actions brought under this section and right of Pension Benefit Guaranty Corporation to bring action, see section 3001(c) of subtitle A of title III of the Employee Retirement Income Security Act of 1974.
(Added
Editorial Notes
References in Text
Section 3001(c) of subtitle A of title III of the Employee Retirement Income Security Act of 1974, referred to in subsec. (d), is classified to
Amendments
1986—Subsec. (c).
1984—Subsec. (c)(3).
1978—Subsec. (a).
Subsecs. (c) to (e).
1976—
Subsec. (a).
Subsec. (b).
Subsec. (c).
Statutory Notes and Related Subsidiaries
Effective Date of 1984 Amendment
Amendment by
Effective Date of 1978 Amendment
Amendment by section 336(b)(2)(A) of
Effective Date of 1976 Amendment
Amendment by section 1042(d)(2)(C) of
Amendment by section 1306(b)(3) of
Amendment by section 1906(a)(48), (b)(13)(A) of
Effective Date
§7477. Declaratory judgments relating to value of certain gifts
(a) Creation of remedy
In a case of an actual controversy involving a determination by the Secretary of the value of any gift shown on the return of tax imposed by
(b) Limitations
(1) Petitioner
A pleading may be filed under this section only by the donor.
(2) Exhaustion of administrative remedies
The court shall not issue a declaratory judgment or decree under this section in any proceeding unless it determines that the petitioner has exhausted all available administrative remedies within the Internal Revenue Service.
(3) Time for bringing action
If the Secretary sends by certified or registered mail notice of his determination as described in subsection (a) to the petitioner, no proceeding may be initiated under this section unless the pleading is filed before the 91st day after the date of such mailing.
(Added
Editorial Notes
Prior Provisions
A prior section 7477, added
Statutory Notes and Related Subsidiaries
Effective Date
Section applicable to gifts made after Aug. 5, 1997, see section 506(e)(1) of
§7478. Declaratory judgments relating to status of certain governmental obligations
(a) Creation of remedy
In a case of actual controversy involving—
(1) a determination by the Secretary whether interest on prospective obligations will be excludable from gross income under section 103(a), or
(2) a failure by the Secretary to make a determination with respect to any matter referred to in paragraph (1),
upon the filing of an appropriate pleading, the Tax Court may make a declaration whether interest on such prospective obligations will be excludable from gross income under section 103(a). Any such declaration shall have the force and effect of a decision of the Tax Court and shall be reviewable as such.
(b) Limitations
(1) Petitioner
A pleading may be filed under this section only by the prospective issuer.
(2) Exhaustion of administrative remedies
The court shall not issue a declaratory judgment or decree under this section in any proceeding unless it determines that the petitioner has exhausted all available administrative remedies within the Internal Revenue Service. A petitioner shall be deemed to have exhausted its administrative remedies with respect to a failure of the Secretary to make a determination with respect to an issue of obligations at the expiration of 180 days after the date on which the request for such determination was made if the petitioner has taken, in a timely manner, all reasonable steps to secure such determination.
(3) Time for bringing action
If the Secretary sends by certified or registered mail notice of his determination as described in subsection (a)(1) to the petitioner, no proceeding may be initiated under this section unless the pleading is filed before the 91st day after the date of such mailing.
(Added
Editorial Notes
Amendments
1988—Subsec. (a).
Statutory Notes and Related Subsidiaries
Effective Date of 1988 Amendment
Amendment by
Effective Date
§7479. Declaratory judgments relating to eligibility of estate with respect to installment payments under section 6166
(a) Creation of remedy
In a case of actual controversy involving a determination by the Secretary of (or a failure by the Secretary to make a determination with respect to)—
(1) whether an election may be made under section 6166 (relating to extension of time for payment of estate tax where estate consists largely of interest in closely held business) with respect to an estate (or with respect to any property included therein), or
(2) whether the extension of time for payment of tax provided in section 6166(a) has ceased to apply with respect to an estate (or with respect to any property included therein),
upon the filing of an appropriate pleading, the Tax Court may make a declaration with respect to whether such election may be made or whether such extension has ceased to apply. Any such declaration shall have the force and effect of a decision of the Tax Court and shall be reviewable as such.
(b) Limitations
(1) Petitioner
A pleading may be filed under this section, with respect to any estate, only—
(A) by the executor of such estate, or
(B) by any person who has assumed an obligation to make payments under section 6166 with respect to such estate (but only if each other such person is joined as a party).
(2) Exhaustion of administrative remedies
The court shall not issue a declaratory judgment or decree under this section in any proceeding unless it determines that the petitioner has exhausted all available administrative remedies within the Internal Revenue Service. A petitioner shall be deemed to have exhausted its administrative remedies with respect to a failure of the Secretary to make a determination at the expiration of 180 days after the date on which the request for such determination was made if the petitioner has taken, in a timely manner, all reasonable steps to secure such determination.
(3) Time for bringing action
If the Secretary sends by certified or registered mail notice of his determination as described in subsection (a) to the petitioner, no proceeding may be initiated under this section unless the pleading is filed before the 91st day after the date of such mailing.
(c) Extension of time to file refund suit
The 2-year period in section 6532(a)(1) for filing suit for refund after disallowance of a claim shall be suspended during the 90-day period after the mailing of the notice referred to in subsection (b)(3) and, if a pleading has been filed with the Tax Court under this section, until the decision of the Tax Court has become final.
(Added
Editorial Notes
Amendments
1998—Subsec. (a)(1), (2).
Subsec. (c).
Statutory Notes and Related Subsidiaries
Effective Date of 1998 Amendment
Amendment by section 3104(b) of
Amendment by section 6007(d) of
Effective Date
Subchapter D—Court Review of Tax Court Decisions
Editorial Notes
Amendments
1969—
§7481. Date when Tax Court decision becomes final
(a) Reviewable decisions
Except as provided in subsections (b), (c), and (d), the decision of the Tax Court shall become final—
(1) Timely notice of appeal not filed
Upon the expiration of the time allowed for filing a notice of appeal, if no such notice has been duly filed within such time; or
(2) Decision affirmed or appeal dismissed
(A) Petition for certiorari not filed on time
Upon the expiration of the time allowed for filing a petition for certiorari, if the decision of the Tax Court has been affirmed or the appeal dismissed by the United States Court of Appeals and no petition for certiorari has been duly filed; or
(B) Petition for certiorari denied
Upon the denial of a petition for certiorari, if the decision of the Tax Court has been affirmed or the appeal dismissed by the United States Court of Appeals; or
(C) After mandate of Supreme Court
Upon the expiration of 30 days from the date of issuance of the mandate of the Supreme Court, if such Court directs that the decision of the Tax Court be affirmed or the appeal dismissed.
(3) Decision modified or reversed
(A) Upon mandate of Supreme Court
If the Supreme Court directs that the decision of the Tax Court be modified or reversed, the decision of the Tax Court rendered in accordance with the mandate of the Supreme Court shall become final upon the expiration of 30 days from the time it was rendered, unless within such 30 days either the Secretary or the taxpayer has instituted proceedings to have such decision corrected to accord with the mandate, in which event the decision of the Tax Court shall become final when so corrected.
(B) Upon mandate of the Court of Appeals
If the decision of the Tax Court is modified or reversed by the United States Court of Appeals, and if—
(i) the time allowed for filing a petition for certiorari has expired and no such petition has been duly filed, or
(ii) the petition for certiorari has been denied, or
(iii) the decision of the United States Court of Appeals has been affirmed by the Supreme Court, then the decision of the Tax Court rendered in accordance with the mandate of the United States Court of Appeals shall become final on the expiration of 30 days from the time such decision of the Tax Court was rendered, unless within such 30 days either the Secretary or the taxpayer has instituted proceedings to have such decision corrected so that it will accord with the mandate, in which event the decision of the Tax Court shall become final when so corrected.
(4) Rehearing
If the Supreme Court orders a rehearing; or if the case is remanded by the United States Court of Appeals to the Tax Court for a rehearing, and if—
(A) the time allowed for filing a petition for certiorari has expired and no such petition has been duly filed, or
(B) the petition for certiorari has been denied, or
(C) the decision of the United States Court of Appeals has been affirmed by the Supreme Court,
then the decision of the Tax Court rendered upon such rehearing shall become final in the same manner as though no prior decision of the Tax Court has been rendered.
(5) Definition of "mandate"
As used in this section, the term "mandate", in case a mandate has been recalled prior to the expiration of 30 days from the date of issuance thereof, means the final mandate.
(b) Nonreviewable decisions
The decision of the Tax Court in a proceeding conducted under section 7436(c) or 7463 shall become final upon the expiration of 90 days after the decision is entered.
(c) Jurisdiction over interest determinations
(1) In general
Notwithstanding subsection (a), if, within 1 year after the date the decision of the Tax Court becomes final under subsection (a) in a case to which this subsection applies, the taxpayer files a motion in the Tax Court for a redetermination of the amount of interest involved, then the Tax Court may reopen the case solely to determine whether the taxpayer has made an overpayment of such interest or the Secretary has made an underpayment of such interest and the amount thereof.
(2) Cases to which this subsection applies
This subsection shall apply where—
(A)(i) an assessment has been made by the Secretary under section 6215 which includes interest as imposed by this title, and
(ii) the taxpayer has paid the entire amount of the deficiency plus interest claimed by the Secretary, and
(B) the Tax Court finds under section 6512(b) that the taxpayer has made an overpayment.
(3) Special rules
If the Tax Court determines under this subsection that the taxpayer has made an overpayment of interest or that the Secretary has made an underpayment of interest, then that determination shall be treated under section 6512(b)(1) as a determination of an overpayment of tax. An order of the Tax Court redetermining interest, when entered upon the records of the court, shall be reviewable in the same manner as a decision of the Tax Court.
(d) Decisions relating to estate tax extended under section 6166
If with respect to a decedent's estate subject to a decision of the Tax Court—
(1) the time for payment of an amount of tax imposed by
(2) there is treated as an administrative expense under section 2053 either—
(A) any amount of interest which a decedent's estate pays on any portion of the tax imposed by section 2001 on such estate for which the time of payment is extended under section 6166, or
(B) interest on any estate, succession, legacy, or inheritance tax imposed by a State on such estate during the period of the extension of time for payment under section 6166,
then, upon a motion by the petitioner in such case in which such time for payment of tax has been extended under section 6166, the Tax Court may reopen the case solely to modify the Court's decision to reflect such estate's entitlement to a deduction for such administration expenses under section 2053 and may hold further trial solely with respect to the claim for such deduction if, within the discretion of the Tax Court, such a hearing is deemed necessary. An order of the Tax Court disposing of a motion 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.
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
1997—Subsec. (b).
Subsec. (c).
"(1) an assessment has been made by the Secretary under section 6215 which includes interest as imposed by this title,
"(2) the taxpayer has paid the entire amount of the deficiency plus interest claimed by the Secretary, and
"(3) within 1 year after the date the decision of the Tax Court becomes final under subsection (a), the taxpayer files a petition in the Tax Court for a determination that the amount of interest claimed by the Secretary exceeds the amount of interest imposed by this title,
then the Tax Court may reopen the case solely to determine whether the taxpayer has made an overpayment of such interest and the amount of any such overpayment. If the Tax Court determines under this subsection that the taxpayer has made an overpayment of interest, then that determination shall be treated under section 6512(b)(1) as a determination of an overpayment of tax. An order of the Tax Court redetermining the interest due, when entered upon the records of the court, shall be reviewable in the same manner as a decision of the Tax Court."
1988—Subsec. (a).
Subsec. (c).
Subsec. (d).
1976—Subsecs. (a)(3)(A), (B)(iii).
1969—
Statutory Notes and Related Subsidiaries
Effective Date of 1997 Amendment
Amendment by section 1454(b)(3) of
Effective Date of 1988 Amendment
Amendment by section 6246(a), (b)(2) of
Amendment by section 6247(a), (b)(2) of
Effective Date of 1969 Amendment
Amendment by
§7482. Courts of review
(a) Jurisdiction
(1) In general
The United States Courts of Appeals (other than the United States Court of Appeals for the Federal Circuit) shall have exclusive jurisdiction to review the decisions of the Tax Court, except as provided in
(2) Interlocutory orders
(A) In general
When any judge of the Tax Court includes in an interlocutory order a statement that a controlling question of law is involved with respect to which there is a substantial ground for difference of opinion and that an immediate appeal from that order may materially advance the ultimate termination of the litigation, the United States Court of Appeals may, in its discretion, permit an appeal to be taken from such order, if application is made to it within 10 days after the entry of such order. Neither the application for nor the granting of an appeal under this paragraph shall stay proceedings in the Tax Court, unless a stay is ordered by a judge of the Tax Court or by the United States Court of Appeals which has jurisdiction of the appeal or a judge of that court.
(B) Order treated as Tax Court decision
For purposes of subsections (b) and (c), an order described in this paragraph shall be treated as a decision of the Tax Court.
(C) Venue for review of subsequent proceedings
If a United States Court of Appeals permits an appeal to be taken from an order described in subparagraph (A), except as provided in subsection (b)(2), any subsequent review of the decision of the Tax Court in the proceeding shall be made by such Court of Appeals.
(3) Certain orders entered under section 6213(a)
An order of the Tax Court which is entered under authority of section 6213(a) and which resolves a proceeding to restrain assessment or collection shall be treated as a decision of the Tax Court for purposes of this section and shall be subject to the same review by the United States Court of Appeals as a similar order of a district court.
(b) Venue
(1) In general
Except as otherwise provided in paragraphs (2) and (3), such decisions may be reviewed by the United States court of appeals for the circuit in which is located—
(A) in the case of a petitioner seeking redetermination of tax liability other than a corporation, the legal residence of the petitioner,
(B) in the case of a corporation seeking redetermination of tax liability, the principal place of business or principal office or agency of the corporation, or, if it has no principal place of business or principal office or agency in any judicial circuit, then the office to which was made the return of the tax in respect of which the liability arises,
(C) in the case of a person seeking a declaratory decision under section 7476, the principal place of business, or principal office or agency of the employer,
(D) in the case of an organization seeking a declaratory decision under section 7428, the principal office or agency of the organization,
(E) in the case of a petition under section 6234, the principal place of business of the partnership,
(F) in the case of a petition under section 6015(e), the legal residence of the petitioner, or
(G) in the case of a petition under section 6320 or 6330—
(i) the legal residence of the petitioner if the petitioner is an individual, and
(ii) the principal place of business or principal office or agency if the petitioner is an entity other than an individual.
If for any reason no subparagraph of the preceding sentence applies, then such decisions may be reviewed by the Court of Appeals for the District of Columbia. For purposes of this paragraph, the legal residence, principal place of business, or principal office or agency referred to herein shall be determined as of the time the petition seeking redetermination of tax liability was filed with the Tax Court or as of the time the petition seeking a declaratory decision under section 7428 or 7476, or the petition under section 6234, was filed with the Tax Court.
(2) By agreement
Notwithstanding the provisions of paragraph (1), such decisions may be reviewed by any United States Court of Appeals which may be designated by the Secretary and the taxpayer by stipulation in writing.
(3) Declaratory judgment actions relating to status of certain governmental obligations
In the case of any decision of the Tax Court in a proceeding under section 7478, such decision may only be reviewed by the Court of Appeals for the District of Columbia.
(c) Powers
(1) To affirm, modify, or reverse
Upon such review, such courts shall have power to affirm or, if the decision of the Tax Court is not in accordance with law, to modify or to reverse the decision of the Tax Court, with or without remanding the case for a rehearing, as justice may require.
(2) To make rules
Rules for review of decisions of the Tax Court shall be those prescribed by the Supreme Court under
(3) To require additional security
Nothing in section 7483 shall be construed as relieving the petitioner from making or filing such undertakings as the court may require as a condition of or in connection with the review.
(4) To impose penalties
The United States Court of Appeals and the Supreme Court shall have the power to require the taxpayer to pay to the United States a penalty in any case where the decision of the Tax Court is affirmed and it appears that the appeal was instituted or maintained primarily for delay or that the taxpayer's position in the appeal is frivolous or groundless.
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
2015—Subsec. (b)(1).
Subsec. (b)(1)(E).
Subsec. (b)(1)(F).
"(i) the legal residence of the petitioner if the petitioner is not a corporation, and
"(ii) the place or office applicable under subparagraph (B) if the petitioner is a corporation."
Subsec. (b)(1)(G).
1997—Subsec. (b)(1).
Subsec. (b)(1)(E).
Subsec. (b)(1)(F).
1989—Subsec. (c)(4).
1988—Subsec. (a)(3).
1986—Subsec. (a).
Subsec. (b)(1).
Subsec. (b)(1)(E).
1984—Subsec. (b)(1)(D) to (F).
1982—Subsec. (a).
Subsec. (b)(1).
1978—Subsec. (b)(1).
Subsec. (b)(3).
1976—Subsec. (b)(1)(D).
Subsec. (b)(1)(E).
Subsec. (b)(1).
Subsec. (b)(2).
1974—Subsec. (b)(1).
1969—Subsec. (c).
1966—Subsec. (b)(1).
Statutory Notes and Related Subsidiaries
Effective Date of 2015 Amendment
"(1)
"(2)
Amendment by
Effective Date of 1997 Amendment
Amendment by section 1222(b)(3) of
Amendment by section 1239(d) of
Effective Date of 1989 Amendment
Amendment by
Effective Date of 1988 Amendment
Amendment by
Effective Date of 1986 Amendment
Amendment by section 1810(g)(2) of
Effective Date of 1984 Amendment
Amendment by
Effective Date of 1982 Amendment
Amendment by
Amendment by
Effective Date of 1978 Amendment
Amendment by
Effective Date of 1976 Amendment
Amendment by section 1042(d)(2)(A), (B) of
Amendment by section 1306(b)(4), (5) of
Effective Date of 1974 Amendment
Amendment by
Effective Date of 1969 Amendment
Amendment by
Effective Date of 1966 Amendment
Amendment by
§7483. Notice of appeal
Review of a decision of the Tax Court shall be obtained by filing a notice of appeal with the clerk of the Tax Court within 90 days after the decision of the Tax Court is entered. If a timely notice of appeal is filed by one party, any other party may take an appeal by filing a notice of appeal within 120 days after the decision of the Tax Court is entered.
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
1969—
Statutory Notes and Related Subsidiaries
Effective Date of 1969 Amendment
§7484. Change of incumbent in office
When the incumbent of the office of Secretary changes, no substitution of the name of his successor shall be required in proceedings pending before any appellate court reviewing the action of the Tax Court.
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
1976—
§7485. Bond to stay assessment and collection
(a) Upon notice of appeal
Notwithstanding any provision of law imposing restrictions on the assessment and collection of deficiencies, the review under section 7483 shall not operate as a stay of assessment or collection of any portion of the amount of the deficiency determined by the Tax Court unless a notice of appeal in respect of such portion is duly filed by the taxpayer, and then only if the taxpayer—
(1) on or before the time his notice of appeal is filed has filed with the Tax Court a bond in a sum fixed by the Tax Court not exceeding double the amount of the portion of the deficiency in respect of which the notice of appeal is filed, and with surety approved by the Tax Court, conditioned upon the payment of the deficiency as finally determined, together with any interest, additional amounts, or additions to the tax provided for by law, or
(2) has filed a jeopardy bond under the income or estate tax laws.
If as a result of a waiver of the restrictions on the assessment and collection of a deficiency any part of the amount determined by the Tax Court is paid after the filing of the appeal bond, such bond shall, at the request of the taxpayer, be proportionately reduced.
(b) Bond in case of appeal of certain partnership-related decisions
The condition of subsection (a) shall be satisfied if the partnership duly files notice of appeal from a decision under section 6234 and on or before the time the notice of appeal is filed with the Tax Court, a bond in an amount fixed by the Tax Court is filed, and with surety approved by the Tax Court, conditioned upon the payment of deficiencies attributable to the partnership-related items (as defined in section 6241) to which that decision relates as finally determined, together with any interest, penalties, additional amounts, or additions to the tax provided by law. Unless otherwise stipulated by the parties, the amount fixed by the Tax Court shall be based upon its estimate of the aggregate liability of the parties to the action.
(c) Cross references
(1) For requirement of additional security notwithstanding this section, see section 7482(c)(3).
(2) For deposit of United States bonds or notes in lieu of sureties, see
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
2018—Subsec. (b).
2015—Subsec. (b).
1997—Subsec. (b).
1982—Subsecs. (b), (c).
Subsec. (c)(2).
1969—Subsec. (a).
Statutory Notes and Related Subsidiaries
Effective Date of 2018 Amendment
Amendment by
Effective Date of 2015 Amendment
Amendment by
Effective Date of 1997 Amendment
Amendment by section 1222(b)(4) of
Effective Date of 1982 Amendment
Amendment by
Effective Date of 1969 Amendment
Amendment by
§7486. Refund, credit, or abatement of amounts disallowed
In cases where assessment or collection has not been stayed by the filing of a bond, then if the amount of the deficiency determined by the Tax Court is disallowed in whole or in part by the court of review, the amount so disallowed shall be credited or refunded to the taxpayer, without the making of claim therefor, or, if collection has not been made, shall be abated.
(Aug. 16, 1954, ch. 736,
§7487. Cross references
(1) Nonreviewability.—For nonreviewability of Tax Court decisions in small claims cases, see section 7463(b).
(2) Transcripts.—For authority of the Tax Court to fix fees for transcript of records, see section 7474.
(Aug. 16, 1954, ch. 736,
Editorial Notes
Amendments
1969—
Statutory Notes and Related Subsidiaries
Effective Date of 1969 Amendment
Amendment by
Subchapter E—Burden of Proof
§7491. Burden of proof
(a) Burden shifts where taxpayer produces credible evidence
(1) General rule
If, in any court proceeding, a taxpayer introduces credible evidence with respect to any factual issue relevant to ascertaining the liability of the taxpayer for any tax imposed by subtitle A or B, the Secretary shall have the burden of proof with respect to such issue.
(2) Limitations
Paragraph (1) shall apply with respect to an issue only if—
(A) the taxpayer has complied with the requirements under this title to substantiate any item;
(B) the taxpayer has maintained all records required under this title and has cooperated with reasonable requests by the Secretary for witnesses, information, documents, meetings, and interviews; and
(C) in the case of a partnership, corporation, or trust, the taxpayer is described in section 7430(c)(4)(A)(ii).
Subparagraph (C) shall not apply to any qualified revocable trust (as defined in section 645(b)(1)) with respect to liability for tax for any taxable year ending after the date of the decedent's death and before the applicable date (as defined in section 645(b)(2)).
(3) Coordination
Paragraph (1) shall not apply to any issue if any other provision of this title provides for a specific burden of proof with respect to such issue.
(b) Use of statistical information on unrelated taxpayers
In the case of an individual taxpayer, the Secretary shall have the burden of proof in any court proceeding with respect to any item of income which was reconstructed by the Secretary solely through the use of statistical information on unrelated taxpayers.
(c) Penalties
Notwithstanding any other provision of this title, the Secretary shall have the burden of production in any court proceeding with respect to the liability of any individual for any penalty, addition to tax, or additional amount imposed by this title.
(Added
Editorial Notes
Prior Provisions
A prior section 7491, act Aug. 16, 1954, ch. 736,
A prior section 7492, act Aug. 16, 1954, ch. 736,
A prior section 7493, act Aug. 16, 1954, ch. 736,
Amendments
1998—Subsec. (a)(2).
Statutory Notes and Related Subsidiaries
Effective Date of 1998 Amendment
Amendment by
Effective Date
"(1)
"(2)