-CITE-

26 USC Sec. 7429 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 76 - JUDICIAL PROCEEDINGS

Subchapter B - Proceedings by Taxpayers and Third Parties

-HEAD-

Sec. 7429. Review of jeopardy levy or assessment procedures

-STATUTE-

(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 title 28, United States Code.

(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.

-SOURCE-

(Added Pub. L. 94-455, title XII, Sec. 1204(a), Oct. 4, 1976, 90

Stat. 1695; amended Pub. L. 98-369, div. A, title IV, Sec. 446(a),

July 18, 1984, 98 Stat. 817; Pub. L. 100-203, title X, Sec.

10713(b)(2)(F), Dec. 22, 1987, 101 Stat. 1330-470; Pub. L. 100-647,

title VI, Sec. 6237(a)-(e)(3), Nov. 10, 1988, 102 Stat. 3741-3743;

Pub. L. 105-206, title III, Sec. 3434(a), July 22, 1998, 112 Stat.

760.)

-MISC1-

AMENDMENTS

1998 - Subsec. (a)(1). Pub. L. 105-206 substituted

"Administrative review" for "Information to taxpayer" in heading

and amended text of par. (1) generally. Prior to amendment, text

read as follows: "Within 5 days after the day on which an

assessment is made under section 6851(a), 6852(a), 6861(a), or

6862, or levy is made under section 6331(a) less than 30 days after

notice and demand for payment is made under section 6331(a), the

Secretary shall provide the taxpayer with a written statement of

the information upon which the Secretary relies in making such

assessment or levy."

1988 - Pub. L. 100-647, Sec. 6237(e)(3), inserted "levy or" after

"jeopardy" in section catchline.

Subsec. (a)(1). Pub. L. 100-647, Sec. 6237(a), inserted "or levy

is made under section 6331(a) less than 30 days after notice and

demand for payment is made under section 6331(a)," after "6862,"

and "or levy" after "such assessment".

Subsec. (a)(3). Pub. L. 100-647, Sec. 6237(b), amended par. (3)

generally. Prior to amendment, par. (3) read as follows: "After a

request for review is made under paragraph (2), the Secretary shall

determine whether or not -

"(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). Pub. L. 100-647, Sec. 6237(c), amended subsec. (b)

generally, substituting provisions of pars. (1) to (4) for

provisions of former pars. (1) to (3) relating to actions

permitted, determination by district court, and order of district

court.

Subsec. (c). Pub. L. 100-647, Sec. 6237(e)(1), struck out

"district" before "court".

Subsec. (e). Pub. L. 100-647, Sec. 6237(d), amended subsec. (e)

generally. Prior to amendment, subsec. (e) read as follows: "A

civil action under subsection (b) shall be commenced only in the

judicial district described in section 1402(a)(1) or (2) of title

28, United States Code."

Subsec. (f). Pub. L. 100-647, Sec. 6237(e)(1), struck out

"district" after "made by a".

Subsec. (g)(1). Pub. L. 100-647, Sec. 6237(e)(2), in heading

substituted "levy, termination," for "termination" and in text

substituted "a proceeding" for "an action" and inserted "the making

of a levy described in subsection (a)(1) or" after "whether".

Subsec. (g)(2). Pub. L. 100-647, Sec. 6237(e)(2)(C), substituted

"a proceeding" for "an action".

1987 - Subsec. (a)(1). Pub. L. 100-203, Sec. 10713(b)(2)(F)(i),

substituted "6851(a), 6852(a)" for "6851(a),".

Subsecs. (a)(3)(A), (B), (b)(2)(A), (B), (g)(1), (2). Pub. L.

100-203, Sec. 10713(b)(2)(F)(ii), substituted "6851, 6852," for

"6851," wherever appearing.

1984 - Subsec. (b)(2). Pub. L. 98-369 inserted provision that if

the court determines that proper service was not made on the United

States within 5 days after the date of the commencement of the

action, the running of the 20-day period shall not begin before the

day on which proper service was made on the United States.

EFFECTIVE DATE OF 1998 AMENDMENT

Pub. L. 105-206, title III, Sec. 3434(b), July 22, 1998, 112

Stat. 760, provided that: "The amendment made by this section

[amending this section] shall apply to taxes assessed and levies

made after the date of the enactment of this Act [July 22, 1998]."

EFFECTIVE DATE OF 1988 AMENDMENT

Section 6237(f) of Pub. L. 100-647 provided that: "The amendments

made by this section [amending this section] shall apply to

jeopardy levies issued and assessments made on or after July 1,

1989."

EFFECTIVE DATE OF 1984 AMENDMENT

Section 446(b) of Pub. L. 98-369 provided that: "The amendment

made by subsection (a) [amending this section] shall apply to

actions commenced after the date of the enactment of this Act [July

18, 1984]."

EFFECTIVE DATE

Section applicable with respect to action taken under section

6851, 6861, or 6862 of this title where notice and demand takes

place after Feb. 28, 1977, see section 1204(d) of Pub. L. 94-455,

as amended, set out as a note under section 6851 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 6851, 6863, 6867 of this

title; title 28 section 1346.

-End-

-CITE-

26 USC Sec. 7430 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 76 - JUDICIAL PROCEEDINGS

Subchapter B - Proceedings by Taxpayers and Third Parties

-HEAD-

Sec. 7430. Awarding of costs and certain fees

-STATUTE-

(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 1992" in subparagraph (B) 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 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 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

section 2412(d)(1)(B) of title 28, United States Code (as in

effect on October 22, 1986) except to the extent differing

procedures are established by rule of court and meets the

requirements of section 2412(d)(2)(B) of such title 28 (as so

in effect).

(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 section 2412(d)(2)(B) of

title 28, United States Code, for purposes of subparagraph

(A)(ii) of this paragraph -

(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 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 section 1304 of title 31, United

States Code.

(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

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.

-SOURCE-

(Added Pub. L. 97-248, title II, Sec. 292(a), Sept. 3, 1982, 96

Stat. 572; amended Pub. L. 98-369, div. A, title VII, Sec. 714(c),

July 18, 1984, 98 Stat. 961; Pub. L. 99-514, title XV, Sec.

1551(a)-(g), Oct. 22, 1986, 100 Stat. 2752, 2753; Pub. L. 100-647,

title I, Sec. 1015(i), title VI, Sec. 6239(a), Nov. 10, 1988, 102

Stat. 3571, 3743; Pub. L. 102-572, title IX, Sec. 902(b)(1), Oct.

29, 1992, 106 Stat. 4516; Pub. L. 104-168, title VII, Secs.

701(a)-(c)(2), 702(a), 703(a), 704(a), July 30, 1996, 110 Stat.

1463, 1464; Pub. L. 105-34, title XII, Sec. 1285(a)-(c), title XIV,

Sec. 1453(a), Aug. 5, 1997, 111 Stat. 1038, 1055; Pub. L. 105-206,

title III, Sec. 3101(a)-(e), title VI, Secs. 6012(h), 6014(e), July

22, 1998, 112 Stat. 727, 728, 819, 820; Pub. L. 106-554, Sec.

1(a)(7) [title III, Sec. 319(25)], Dec. 21, 2000, 114 Stat. 2763,

2763A-647.)

-STATAMEND-

ADJUSTMENT OF HOURLY LIMIT ON ATTORNEY FEES AWARDED FOR CALENDAR

YEAR 2003

For adjustment of the hourly limit on attorney fees awarded under

this section for calendar year 2003, see section 3.32 of Revenue

Procedure 2002-70, set out as a note under section 1 of this title.

-MISC1-

PRIOR PROVISIONS

A prior section 7430 was renumbered section 7437 of this title.

AMENDMENTS

2000 - Subsec. (c)(3). Pub. L. 106-554, Sec. 1(a)(7) [title III,

Sec. 319(25)(A)], substituted "Attorneys' " for "Attorneys" in

heading.

Subsec. (c)(3)(B). Pub. L. 106-554, Sec. 1(a)(7) [title III, Sec.

319(25)(B)], substituted "attorneys' fees" for "attorneys fees"

wherever appearing.

1998 - Subsec. (b)(4), (5). Pub. L. 105-206, Sec. 6012(h),

redesignated par. (5) as (4).

Subsec. (c)(1)(B)(iii). Pub. L. 105-206, Sec. 3101(a),

substituted "$125" for "$110" and inserted "the difficulty of the

issues presented in the case, or the local availability of tax

expertise," before "justifies a higher rate".

Subsec. (c)(2). Pub. L. 105-206, Sec. 3101(b), added concluding

provisions and struck out former concluding provisions which read

as follows: "Such term shall only include costs incurred on or

after the earlier of (i) the date of the receipt by the taxpayer of

the notice of the decision of the Internal Revenue Service Office

of Appeals, or (ii) the date of the notice of deficiency."

Subsec. (c)(3). Pub. L. 105-206, Sec. 3101(c), substituted

"attorneys" for "attorney's" in heading and amended text of par.

(3) generally. Prior to amendment, text read as follows: "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."

Subsec. (c)(4)(B)(iii), (iv). Pub. L. 105-206, Sec. 3101(d),

added cl. (iii) and redesignated former cl. (iii) as (iv).

Subsec. (c)(4)(D). Pub. L. 105-206, Sec. 6014(e), substituted

"subparagraph (A)(ii)" for "subparagraph (A)(iii)" in introductory

provisions.

Subsec. (c)(4)(E). Pub. L. 105-206, Sec. 3101(e)(1), added

subpar. (E).

Subsec. (g). Pub. L. 105-206, Sec. 3101(e)(2), added subsec. (g).

1997 - Subsec. (b)(5). Pub. L. 105-34, Sec. 1285(b), added par.

(5).

Subsec. (c)(4)(D). Pub. L. 105-34, Sec. 1453(a), added subpar.

(D).

Subsec. (f)(2). Pub. L. 105-34, Sec. 1285(c), substituted "the

filing of a petition for review with" for "appeal to" and inserted

at end "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."

Subsec. (f)(3). Pub. L. 105-34, Sec. 1285(a), added par. (3).

1996 - Subsec. (b)(1). Pub. L. 104-168, Sec. 703(a), inserted at

end "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."

Subsec. (b)(3), (4). Pub. L. 104-168, Sec. 704(a), redesignated

par. (4) as (3) and struck out former par. (3) which read as

follows:

"(3) Exclusion of declaratory judgment proceedings. -

"(A) In general. - No award for reasonable litigation costs may

be made under subsection (a) with respect to any declaratory

judgment proceeding.

"(B) Exception for section 501(c)(3) determination revocation

proceedings. - Subparagraph (A) shall not apply to any proceeding

which involves the revocation of a determination that the

organization is described in section 501(c)(3)."

Subsec. (c)(1). Pub. L. 104-168, Sec. 702(a)(3), inserted closing

provisions "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 1992' in subparagraph (B) 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."

Subsec. (c)(1)(B)(iii). Pub. L. 104-168, Sec. 702(a)(1), (2),

substituted "$110" for "$75" and struck out "an increase in the

cost of living or" before "a special factor,".

Subsec. (c)(2)(B). Pub. L. 104-168, Sec. 701(c)(1), substituted

"paragraph (4)(C)" for "paragraph (4)(B)".

Subsec. (c)(4)(A). Pub. L. 104-168, Sec. 701(a), redesignated

cls. (ii) and (iii) as (i) and (ii), respectively, and struck out

former cl. (i) which read as follows: "which establishes that the

position of the United States in the proceeding was not

substantially justified,".

Subsec. (c)(4)(B). Pub. L. 104-168, Sec. 701(b), added subpar.

(B). Former subpar. (B) redesignated (C).

Subsec. (c)(4)(C). Pub. L. 104-168, Sec. 701(c)(2), substituted

"Any determination under this paragraph" for "Any determination

under subparagraph (A)".

Pub. L. 104-168, Sec. 701(b), redesignated subpar. (B) as (C).

1992 - Subsec. (c)(6). Pub. L. 102-572 substituted "United States

Court of Federal Claims" for "United States Claims Court".

1988 - Pub. L. 100-647, Sec. 6239(a), substituted "costs" for

"court costs" in section catchline and amended text generally,

revising and restating provisions so as to include costs and fees

in administrative proceedings.

Subsec. (c)(2)(A)(iii). Pub. L. 100-647, Sec. 1015(i), amended

cl. (iii) generally. Prior to amendment, cl. (iii) read as follows:

"meets the requirements of section 504(b)(1)(B) of title 5, United

States Code (as in effect on the date of the enactment of the Tax

Reform Act of 1986 and applied by taking into account the

commencement of the proceeding described in subsection (a) in lieu

of the initiation of the adjudication referred to in such

section)."

1986 - Subsec. (a). Pub. L. 99-514, Sec. 1551(f), inserted

"(payable in the case of the Tax Court in the same manner as such

an award by a district court)" in concluding provisions.

Subsec. (b). Pub. L. 99-514, Sec. 1551(a), (b), redesignated

pars. (2) to (4) as (1) to (3), respectively, added par. (4), and

struck out former par. (1), maximum dollar amount, which read as

follows: "The amount of reasonable litigation costs which may be

awarded under subsection (a) with respect to any prevailing party

in any civil proceeding shall not exceed $25,000."

Subsec. (c)(1)(A). Pub. L. 99-514, Sec. 1551(c), amended subpar.

(A) generally. Prior to amendment, subpar. (A) read as follows:

"The term 'reasonable litigation costs' includes -

"(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). Pub. L. 99-514, Sec. 1551(d), substituted "was

not substantially justified" for "was unreasonable" in cl. (i), and

added cl. (iii).

Subsec. (c)(4). Pub. L. 99-514, Sec. 1551(e), added par. (4).

Subsec. (f). Pub. L. 99-514, Sec. 1551(g), struck out subsec.

(f), termination, which read as follows: "This section shall not

apply to any proceeding commenced after December 31, 1985."

1984 - Subsec. (a)(2). Pub. L. 98-369 inserted reference to

United States Claims Court.

EFFECTIVE DATE OF 1998 AMENDMENT

Pub. L. 105-206, title III, Sec. 3101(g), July 22, 1998, 112

Stat. 729, provided that: "The amendments made by this section

[amending this section and section 7431 of this title] shall apply

to costs incurred (and, in the case of the amendment made by

subsection (c) [amending this section], services performed) more

than 180 days after the date of the enactment of this Act [July 22,

1998]."

Amendment by sections 6012(h) and 6014(e) of Pub. L. 105-206

effective, except as otherwise provided, as if included in the

provisions of the Taxpayer Relief Act of 1997, Pub. L. 105-34, to

which such amendment relates, see section 6024 of Pub. L. 105-206,

set out as a note under section 1 of this title.

EFFECTIVE DATE OF 1997 AMENDMENT

Section 1285(d) of Pub. L. 105-34 provided that: "The amendments

made by this section [amending this section] shall apply to civil

actions or proceedings commenced after the date of the enactment of

this Act [Aug. 5, 1997]."

Section 1453(b) of Pub. L. 105-34 provided that: "The amendment

made by this section [amending this section] shall apply to

proceedings commenced after the date of the enactment of this Act

[Aug. 5, 1997]."

EFFECTIVE DATE OF 1996 AMENDMENT

Amendment by section 701(a)-(c)(2) of Pub. L. 104-168 applicable

in case of proceedings commenced after July 30, 1996, see section

701(d) of Pub. L. 104-168, set out as a note under section 6404 of

this title.

Section 702(b) of Pub. L. 104-168 provided that: "The amendment

made by this section [amending this section] shall apply in the

case of proceedings commenced after the date of the enactment of

this Act [July 30, 1996]."

Section 703(b) of Pub. L. 104-168 provided that: "The amendment

made by this section [amending this section] shall apply in the

case of proceedings commenced after the date of the enactment of

this Act [July 30, 1996]."

Section 704(b) of Pub. L. 104-168 provided that: "The amendment

made by this section [amending this section] shall apply in the

case of proceedings commenced after the date of the enactment of

this Act [July 30, 1996]."

EFFECTIVE DATE OF 1992 AMENDMENT

Amendment by Pub. L. 102-572 effective Oct. 29, 1992, see section

911 of Pub. L. 102-572, set out as a note under section 171 of

Title 28, Judiciary and Judicial Procedure.

EFFECTIVE DATE OF 1988 AMENDMENT

Amendment by section 1015(i) of Pub. L. 100-647 effective, except

as otherwise provided, as if included in the provision of the Tax

Reform Act of 1986, Pub. L. 99-514, to which such amendment

relates, see section 1019(a) of Pub. L. 100-647, set out as a note

under section 1 of this title.

Section 6239(d) of Pub. L. 100-647 provided that: "The amendments

made by this section [amending this section and section 504 of

Title 5, Government Organization and Employees] shall apply to

proceedings commencing after the date of the enactment of this Act

[Nov. 10, 1988]."

EFFECTIVE DATE OF 1986 AMENDMENT

Section 1551(h) of Pub. L. 99-514 provided that:

"(1) General rule. - Except as provided in paragraph (2), the

amendments made by this section [amending this section] shall apply

to amounts paid after September 30, 1986, in civil actions or

proceedings, commenced after December 31, 1985.

"(2) Subsection (f). - The amendment made by subsection (f)

[amending this section] shall take effect as if included in the

amendments made by section 292 of the Tax Equity and Fiscal

Responsibility Act of 1982 [see Effective Date note below].

"(3) Applicability of amendments to certain prior cases. - The

amendments made by this section shall apply to any case commenced

after December 31, 1985, and finally disposed of before the date of

the enactment of this Act [Oct. 22, 1986], except that in any such

case, the 30-day period referred to in section 2412(d)(1)(B) of

title 28, United States Code, or Rule 231 of the Tax Court [26 App.

U.S.C. Rule 231], as the case may be, shall be deemed to commence

on the date of the enactment of this Act [Oct. 22, 1986]."

EFFECTIVE DATE OF 1984 AMENDMENT

Amendment by Pub. L. 98-369 effective as if included in the

provision of the Tax Equity and Fiscal Responsibility Act of 1982,

Pub. L. 97-248, to which such amendment relates, see section 715 of

Pub. L. 98-369, set out as a note under section 31 of this title.

EFFECTIVE DATE

Section 292(e) of Pub. L. 97-248, as amended by Pub. L. 98-369,

div. A, title I, Sec. 160, July 18, 1984, 98 Stat. 696, provided

that:

"(1) In general. - The amendments made by this section [enacting

this section and amending section 6673 of this title and section

2412 of Title 28, Judiciary and Judicial Procedure] shall apply to

civil actions or proceedings commenced after February 28, 1983.

"(2) Penalty. - The amendments made by subsections (b) and (d)(2)

[amending section 6673 of this title] shall apply to any action or

proceeding in the United States Tax Court which -

"(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]."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 6404, 6512, 6656, 7431,

7433, 7436, 7491, 7611 of this title; title 5 section 504; title 28

section 2412.

-End-

-CITE-

26 USC Sec. 7431 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 76 - JUDICIAL PROCEEDINGS

Subchapter B - Proceedings by Taxpayers and Third Parties

-HEAD-

Sec. 7431. Civil damages for unauthorized inspection or disclosure

of returns and return information

-STATUTE-

(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, 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 section 1030(a)(2) of title 18, United

States Code,

the Secretary shall notify such taxpayer as soon as practicable of

such inspection or disclosure.

(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).

-SOURCE-

(Added Pub. L. 97-248, title III, Sec. 357(a), Sept. 3, 1982, 96

Stat. 645; amended Pub. L. 98-67, title I, Sec. 104(b), Aug. 5,

1983, 97 Stat. 379; Pub. L. 105-34, title XII, Sec. 1205(c)(2),

Aug. 5, 1997, 111 Stat. 998; Pub. L. 105-35, Sec. 3(a)-(d)(4), (6),

Aug. 5, 1997, 111 Stat. 1105, 1106; Pub. L. 105-206, title III,

Sec. 3101(f), title VI, Sec. 6012(b)(3), July 22, 1998, 112 Stat.

729, 819.)

-MISC1-

PRIOR PROVISIONS

A prior section 7431 was renumbered section 7437 of this title.

AMENDMENTS

1998 - Subsec. (c)(2). Pub. L. 105-206, Sec. 3101(f), substituted

", plus" for the period at end.

Subsec. (c)(3). Pub. L. 105-206, Sec. 3101(f), added par. (3).

Subsecs. (g), (h). Pub. L. 105-206, Sec. 6012(b)(3), redesignated

subsec. (g), relating to special rule for information obtained

under section 6103(k)(8), as (h), and substituted "(9)" for "(8)"

in heading.

1997 - Pub. L. 105-35, Sec. 3(d)(4), inserted "inspection or"

before "disclosure" in section catchline.

Subsec. (a)(1), (2). Pub. L. 105-35, Sec. 3(a)(1), (2),

substituted "Inspection or disclosure" for "Disclosure" in headings

and "inspects or discloses" for "discloses" in text.

Subsec. (b). Pub. L. 105-35, Sec. 3(c), amended subsec. (b)

generally. Prior to amendment, subsec. (b) read as follows:

"(b) No Liability for Good Faith but Erroneous Interpretation. -

No liability shall arise under this section with respect to any

disclosure which results from a good faith, but erroneous,

interpretation of section 6103."

Subsec. (c)(1). Pub. L. 105-35, Sec. 3(d)(1), (2), inserted

"inspection or" before "disclosure" in subpars. (A) and (B)(i) and

substituted "willful inspection or disclosure or an inspection or

disclosure" for "willful disclosure or a disclosure" in subpar.

(B)(ii).

Subsec. (d). Pub. L. 105-35, Sec. 3(d)(1), inserted "inspection

or" before "disclosure".

Subsec. (e). Pub. L. 105-35, Sec. 3(b), added subsec. (e). Former

subsec. (e) redesignated (f).

Subsec. (f). Pub. L. 105-35, Sec. 3(b), (d)(3), redesignated

subsec. (e) as (f) and amended it generally. Prior to amendment,

subsec. (f) read as follows:

"(f) Return; Return Information. - For purposes of this section,

the terms 'return' and 'return information' have the respective

meanings given such terms in section 6103(b)."

Subsec. (g). Pub. L. 105-35, Sec. 3(b), (d)(6), redesignated

subsec. (f) as (g) and substituted "any inspection or use" for "any

use" in par. (2).

Pub. L. 105-34, Sec. 1205(c)(2), added subsec. (g) relating to

special rule for information obtained under section 6103(k)(8).

1983 - Subsec. (f). Pub. L. 98-67 added subsec. (f).

EFFECTIVE DATE OF 1998 AMENDMENT

Amendment by section 3101(f) of Pub. L. 105-206 applicable to

costs incurred more than 180 days after July 22, 1998, see section

3101(g) of Pub. L. 105-206, set out as a note under section 7430 of

this title.

Amendment by section 6012(b)(3) of Pub. L. 105-206 effective,

except as otherwise provided, as if included in the provisions of

the Taxpayer Relief Act of 1997, Pub. L. 105-34, to which such

amendment relates, see section 6024 of Pub. L. 105-206, set out as

a note under section 1 of this title.

EFFECTIVE DATE OF 1997 AMENDMENTS

Section 3(e) of Pub. L. 105-35 provided that: "The amendments

made by this section [amending this section] shall apply to

inspections and disclosures occurring on and after the date of the

enactment of this Act [Aug. 5, 1997]."

Amendment by Pub. L. 105-34 effective on the day 9 months after

Aug. 5, 1997, see section 1205(d) of Pub. L. 105-34, set out as a

note under section 6103 of this title.

EFFECTIVE DATE OF 1983 AMENDMENT

Amendment by Pub. L. 98-67 effective Aug. 5, 1983, see section

110(c) of Pub. L. 98-67, set out as a note under section 31 of this

title.

EFFECTIVE DATE

Section 357(c) of Pub. L. 97-248 provided that: "The amendments

made by this section [enacting this section and repealing section

7217 of this title] shall apply with respect to disclosures made

after the date of enactment of this Act [Sept. 3, 1982]."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 3406, 6105, 6311 of this

title; title 5 section 3111.

-End-

-CITE-

26 USC Sec. 7432 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 76 - JUDICIAL PROCEEDINGS

Subchapter B - Proceedings by Taxpayers and Third Parties

-HEAD-

Sec. 7432. Civil damages for failure to release lien

-STATUTE-

(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 section 1304 of title 31, United States Code.

(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.

-SOURCE-

(Added Pub. L. 100-647, title VI, Sec. 6240(a), Nov. 10, 1988, 102

Stat. 3746.)

-MISC1-

PRIOR PROVISIONS

A prior section 7432 was renumbered 7437 of this title.

EFFECTIVE DATE

Section 6240(c) of Pub. L. 100-647 provided that: "The amendments

made by this section [enacting this section] shall apply to notices

provided by the taxpayer of the failure to release a lien, and

damages arising, after December 31, 1988."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 7433 of this title.

-End-

-CITE-

26 USC Sec. 7433 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 76 - JUDICIAL PROCEEDINGS

Subchapter B - Proceedings by Taxpayers and Third Parties

-HEAD-

Sec. 7433. Civil damages for certain unauthorized collection

actions

-STATUTE-

(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 section 1304 of title 31, United States Code.

(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 title 11, United States Code (or any successor

provision), or any regulation promulgated under such provision,

such taxpayer may petition the bankruptcy court to recover

damages against the United States.

(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.

-SOURCE-

(Added Pub. L. 100-647, title VI, Sec. 6241(a), Nov. 10, 1988, 102

Stat. 3747; amended Pub. L. 104-168, title VIII, Secs. 801(a),

802(a), July 30, 1996, 110 Stat. 1465; Pub. L. 105-206, title III,

Sec. 3102(a), (c), July 22, 1998, 112 Stat. 730.)

-MISC1-

PRIOR PROVISIONS

A prior section 7433 was renumbered 7437 of this title.

AMENDMENTS

1998 - Subsec. (a). Pub. L. 105-206, Sec. 3102(a)(1)(A), inserted

", or by reason of negligence," after "recklessly or

intentionally".

Subsec. (b). Pub. L. 105-206, Sec. 3102(a)(1)(B)(i), (c)(2), in

introductory provisions, inserted "or petition filed under

subsection (e)" after "subsection (a)" and inserted "($100,000, in

the case of negligence)" after "$1,000,000".

Subsec. (b)(1). Pub. L. 105-206, Sec. 3102(a)(1)(B)(ii), inserted

"or negligent" after "reckless or intentional".

Subsec. (d)(1). Pub. L. 105-206, Sec. 3102(a)(2), substituted

"Requirement that administrative remedies be exhausted" for "Award

for damages may be reduced if administrative remedies not

exhausted" in heading and amended text of par. (1) generally. Prior

to amendment, text read as follows: "The amount of damages awarded

under subsection (b) may be reduced if the court determines that

the plaintiff has not exhausted the administrative remedies

available to such plaintiff within the Internal Revenue Service."

Subsec. (e). Pub. L. 105-206, Sec. 3102(c)(1), added subsec. (e).

1996 - Subsec. (b). Pub. L. 104-168, Sec. 801(a), substituted

"$1,000,000" for "$100,000".

Subsec. (d)(1). Pub. L. 104-168, Sec. 802(a), amended par. (1)

generally. Prior to amendment, par. (1) read as follows:

"(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."

EFFECTIVE DATE OF 1998 AMENDMENT

Amendment by Pub. L. 105-206 applicable to actions of officers or

employees of Internal Revenue Service after July 22, 1998, see

section 3102(d) of Pub. L. 105-206, set out as a note under section

7426 of this title.

EFFECTIVE DATE OF 1996 AMENDMENT

Section 801(b) of Pub. L. 104-168 provided that: "The amendment

made by subsection (a) [amending this section] shall apply to

actions by officers or employees of the Internal Revenue Service

after the date of the enactment of this Act [July 30, 1996]."

Section 802(b) of Pub. L. 104-168 provided that: "The amendment

made by this section [amending this section] shall apply in the

case of proceedings commenced after the date of the enactment of

this Act [July 30, 1996]."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 6304, 6335, 6673, 7426 of

this title.

-End-

-CITE-

26 USC Sec. 7434 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 76 - JUDICIAL PROCEEDINGS

Subchapter B - Proceedings by Taxpayers and Third Parties

-HEAD-

Sec. 7434. Civil damages for fraudulent filing of information

returns

-STATUTE-

(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).

-SOURCE-

(Added Pub. L. 104-168, title VI, Sec. 601(a), July 30, 1996, 110

Stat. 1462; amended Pub. L. 105-206, title VI, Sec. 6023(29), July

22, 1998, 112 Stat. 826.)

-MISC1-

PRIOR PROVISIONS

A prior section 7434 was renumbered 7437 of this title.

AMENDMENTS

1998 - Subsec. (b)(3). Pub. L. 105-206 substituted "attorneys'

fees" for "attorneys fees".

EFFECTIVE DATE

Section 601(c) of Pub. L. 104-168 provided that: "The amendments

made by this section [enacting this section and renumbering former

section 7434 as 7435 of this title] shall apply to fraudulent

information returns filed after the date of the enactment of this

Act [July 30, 1996]."

-End-

-CITE-

26 USC Sec. 7435 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 76 - JUDICIAL PROCEEDINGS

Subchapter B - Proceedings by Taxpayers and Third Parties

-HEAD-

Sec. 7435. Civil damages for unauthorized enticement of information

disclosure

-STATUTE-

(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 section 1304 of title 31, United States Code.

(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.

-SOURCE-

(Added Pub. L. 104-168, title XII, Sec. 1203(a), July 30, 1996, 110

Stat. 1470.)

-MISC1-

PRIOR PROVISIONS

A prior section 7435 was renumbered 7437 of this title.

EFFECTIVE DATE

Section 1203(c) of Pub. L. 104-168 provided that: "The amendments

made by this section [enacting this section and renumbering former

section 7435 as 7436 of this title] shall apply to actions after

the date of the enactment of this Act [July 30, 1996]."

-End-

-CITE-

26 USC Sec. 7436 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 76 - JUDICIAL PROCEEDINGS

Subchapter B - Proceedings by Taxpayers and Third Parties

-HEAD-

Sec. 7436. Proceedings for determination of employment status

-STATUTE-

(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.

-SOURCE-

(Added Pub. L. 105-34, title XIV, Sec. 1454(a), Aug. 5, 1997, 111

Stat. 1055; amended Pub. L. 105-206, title III, Sec. 3103(b)(1),

July 22, 1998, 112 Stat. 731; Pub. L. 106-554, Sec. 1(a)(7) [title

III, Sec. 314(f)], Dec. 21, 2000, 114 Stat. 2763, 2763A-643.)

-REFTEXT-

REFERENCES IN TEXT

Section 530 of the Revenue Act of 1978, referred to in subsec.

(a)(2), is section 530 of Pub. L. 95-600, which is set out as a

note under section 3401 of this title.

-MISC1-

PRIOR PROVISIONS

A prior section 7436 was renumbered section 7437 of this title.

AMENDMENTS

2000 - Subsec. (a). Pub. L. 106-554 inserted "and the proper

amount of employment tax under such determination" before period at

end of first sentence.

1998 - Subsec. (c)(1). Pub. L. 105-206 substituted "$50,000" for

"$10,000".

EFFECTIVE DATE OF 2000 AMENDMENT

Amendment by Pub. L. 106-554 effective as if included in the

provisions of the Taxpayer Relief Act of 1997, Pub. L. 105-34, to

which such amendment relates, see section 1(a)(7) [title III, Sec.

314(g)] of Pub. L. 106-554, set out as a note under section 56 of

this title.

EFFECTIVE DATE OF 1998 AMENDMENT

Pub. L. 105-206, title III, Sec. 3103(c), July 22, 1998, 112

Stat. 731, provided that: "The amendments made by this section

[amending this section and sections 7443A and 7463 of this title]

shall apply to proceedings commenced after the date of the

enactment of this Act [July 22, 1998]."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 6511, 7421, 7453, 7481 of

this title.

-End-

-CITE-

26 USC Sec. 7437 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 76 - JUDICIAL PROCEEDINGS

Subchapter B - Proceedings by Taxpayers and Third Parties

-HEAD-

Sec. 7437. Cross references

-STATUTE-

(1) For determination of amount of any tax, additions to tax,

etc., in title 11 cases, see section 505 of title 11 of the

United States Code.

(2) For exclusion of tax liability from discharge in cases

under title 11 of the United States Code, see section 523 of

such title 11.

(3) For recognition of tax liens in cases under title 11 of

the United States Code, see sections 545 and 724 of such title

11.

(4) For collection of taxes in connection with plans for

individuals with regular income in cases under title 11 of the

United States Code, see section 1328 of such title 11.

(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 section 2410 of

Title 28 of the United States Code.

(6) For priority of lien of the United States in case of

insolvency, see section 3713(a) of title 31, United States

Code.

(7) For interest on judgments for overpayments, see section

2411(a) of Title 28 of the United States Code.

(8) For review of a Tax Court decision, see section 7482.

(9) For statute prohibiting suits to replevy property taken

under revenue laws, see section 2463 of Title 28 of the United

States Code.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 878, Sec. 7425; renumbered Sec.

7427, Pub. L. 89-719, title I, Sec. 109, Nov. 2, 1966, 80 Stat.

1141; renumbered Sec. 7428, and amended Pub. L. 94-455, title XII,

Sec. 1203(b)(2)(A), title XIX, Sec. 1906(a)(45), Oct. 4, 1976, 90

Stat. 1690, 1830; renumbered Sec. 7430, Pub. L. 94-455, title XIII,

Sec. 1306(a), Oct. 4, 1976, 90 Stat. 1717; Pub. L. 96-589, Sec.

6(d)(1), (i)(13), Dec. 24, 1980, 94 Stat. 3408, 3411; renumbered

Sec. 7431, Pub. L. 97-248, title II, Sec. 292(a), Sept. 3, 1982, 96

Stat. 572; renumbered Sec. 7432, Pub. L. 97-248, title III, Sec.

357(a), Sept. 3, 1982, 96 Stat. 645; Pub. L. 97-258, Sec. 3(f)(14),

Sept. 13, 1982, 96 Stat. 1065; renumbered Sec. 7434, Pub. L.

100-647, title VI, Secs. 6240(a), 6241(a), Nov. 10, 1988, 102 Stat.

3746, 3747; renumbered Sec. 7435, Pub. L. 104-168, title VI, Sec.

601(a), July 30, 1996, 110 Stat. 1462; renumbered Sec. 7436, Pub.

L. 104-168, title XII, Sec. 1203(a), July 30, 1996, 110 Stat. 1470;

renumbered Sec. 7437, Pub. L. 105-34, title XIV, Sec. 1454(a), Aug.

5, 1997, 111 Stat. 1055.)

-MISC1-

AMENDMENTS

1982 - Par. (6). Pub. L. 97-258 substituted "section 3713(a) of

title 31, United States Code" for "R.S. 3466 (31 U.S.C. 191)".

Notwithstanding the directory language that amendment be made to

section 7430, the amendment was executed to this section to reflect

the probable intent of Congress and the intervening renumbering of

section 7430 as 7432 by Pub. L. 97-248.

1980 - Par. (1). Pub. L. 96-589, Sec. 6(d)(1), added par. (1).

Former par. (1), which provided cross reference to former section

35 of title 11 for exclusion of tax liability from discharge in

bankruptcy, was struck out.

Par. (2). Pub. L. 96-589, Sec. 6(d)(1), (i)(13), added par. (2).

Former par. (2), which provided cross reference to former section

93 of title 11 for limit on amount allowed in bankruptcy

proceedings on debts owing to the United States, was struck out.

Par. (3). Pub. L. 96-589, Sec. 6(d)(1), (i)(13), added par. (3).

Former par. (3), which provided cross reference to former section

107 of title 11 for recognition of tax liens in proceedings under

the Bankruptcy Act, was struck out.

Par. (4). Pub. L. 96-589, Sec. 6(d)(1), (i)(13), added par. (4).

Former par. (4), which provided for cross reference to former

section 1080 of title 11 for collection of taxes in connection with

wage earners' plans in bankruptcy courts, was struck out.

1976 - Par. (1). Pub. L. 94-455, Sec. 1906(a)(45)(A), struck out

"52 Stat. 851;" before "11 U.S.C. 35".

Par. (2). Pub. L. 94-455, Sec. 1906(a)(45)(B), struck out "52

Stat. 867;" before "11 U.S.C. 93".

Par. (3). Pub. L. 94-455, Sec. 1906(a)(45)(C), struck out "52

Stat. 876-877;" before "11 U.S.C. 107".

Par. (4). Pub. L. 94-455, Sec. 1906(a)(45)(D), struck out "52

Stat. 938;" before "11 U.S.C. 1080".

EFFECTIVE DATE OF 1980 AMENDMENT

Amendment by Pub. L. 96-589 effective Oct. 1, 1979, but not

applicable to proceedings under Title 11, Bankruptcy, commenced

before Oct. 1, 1979, see section 7(e) of Pub. L. 96-589, set out as

a note under section 108 of this title.

-End-

-CITE-

26 USC Subchapter C - The Tax Court 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 76 - JUDICIAL PROCEEDINGS

Subchapter C - The Tax Court

-HEAD-

SUBCHAPTER C - THE TAX COURT

-MISC1-

Part

I. Organization and jurisdiction.

II. Procedure.

III. Miscellaneous provisions.

IV. Declaratory judgments.

AMENDMENTS

1976 - Pub. L. 94-455, title X, Sec. 1042(d)(2)(F), Oct. 4, 1976,

90 Stat. 1639, struck out in item relating to part IV "relating to

qualification of certain retirement plans" after "Declaratory

judgments".

1974 - Pub. L. 93-406, title II, Sec. 1041(c), Sept. 2, 1974, 88

Stat. 951, inserted item relating to part IV.

-SECREF-

SUBCHAPTER REFERRED TO IN OTHER SECTIONS

This subchapter is referred to in sections 6215, 6406 of this

title.

-End-

-CITE-

26 USC PART I - ORGANIZATION AND JURISDICTION 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 76 - JUDICIAL PROCEEDINGS

Subchapter C - The Tax Court

PART I - ORGANIZATION AND JURISDICTION

-HEAD-

PART I - ORGANIZATION AND JURISDICTION

-MISC1-

Sec.

7441. Status.

7442. Jurisdiction.

7443. Membership.

7443A. Special trial judges.

7444. Organization.

7445. Offices.

7446. Times and places of sessions.

7447. Retirement.

7448. Annuities of surviving spouses and dependent

children.(!1)

AMENDMENTS

1986 - Pub. L. 99-514, title XV, Sec. 1556(b)(3), Oct. 22, 1986,

100 Stat. 2755, added item 7443A.

1976 - Pub. L. 94-455, title XIX, Sec. 1906(b)(10), Oct. 4, 1976,

90 Stat. 1834, substituted "Annuities of surviving spouses and

dependent children" for "Annuities to widows and dependent children

of judges" in item 7448.

1961 - Pub. L. 87-370, Sec. 2, Oct. 4, 1961, 75 Stat. 801, added

item 7448.

-FOOTNOTE-

(!1) So in original. Does not conform to section catchline.

-End-

-CITE-

26 USC Sec. 7441 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 76 - JUDICIAL PROCEEDINGS

Subchapter C - The Tax Court

PART I - ORGANIZATION AND JURISDICTION

-HEAD-

Sec. 7441. Status

-STATUTE-

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.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 879; Pub. L. 91-172, title IX,

Sec. 951, Dec. 30, 1969, 83 Stat. 730.)

-MISC1-

AMENDMENTS

1969 - Pub. L. 91-172 substituted provisions establishing Tax

Court as a Constitutional court, and enumerating the members that

comprise its bench, for provisions continuing the Board of Tax

Appeals, known as the Tax Court, as an independent agency in the

Executive Branch of Government and enumerating the members that

comprise its bench.

EFFECTIVE DATE OF 1969 AMENDMENT

Section 962(a) of Pub. L. 91-172 provided that: "The amendments

made by sections 951, 953, 954(c) and (e), 955, 956, 958, and

960(c), (d), (e), (g), and (j) [amending this section and sections

7443, 7447, 7448, 7456, 7471, and 7701 of this title] shall take

effect on the date of enactment of this Act [Dec. 30, 1969]."

REPORT ON INVENTORY OF CASES IN TAX COURT

Pub. L. 99-514, title XV, Sec. 1552(c), Oct. 22, 1986, 100 Stat.

2753, provided that: "The Secretary of the Treasury or his delegate

and the Tax Court shall each prepare a report for 1987 and for each

2-calendar year period thereafter on the inventory of cases in the

Tax Court and the measures to close cases more efficiently. Such

reports shall be submitted to the Committee on Ways and Means of

the House of Representatives and the Committee on Finance of the

Senate."

CONTINUATION OF STATUS

Section 961 of Pub. L. 91-172 provided that: "The United States

Tax Court established under the amendment made by section 951

[amending this section] is a continuation of the Tax Court of the

United States as it existed prior to the date of enactment of this

Act [Dec. 30, 1969], the judges of the Tax Court of the United

States immediately prior to the date of enactment of this Act [Dec.

30, 1969] shall become the judges of the United States Tax Court

upon the enactment of this Act, and no loss of rights or powers,

interruption of jurisdiction, or prejudice to matters pending in

the Tax Court of the United States before the date of enactment of

this Act [Dec. 30, 1969] shall result from the enactment of this

Act."

-End-

-CITE-

26 USC Sec. 7442 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 76 - JUDICIAL PROCEEDINGS

Subchapter C - The Tax Court

PART I - ORGANIZATION AND JURISDICTION

-HEAD-

Sec. 7442. Jurisdiction

-STATUTE-

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 (44 Stat. 10-87), or by laws enacted subsequent

to February 26, 1926.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 879.)

-REFTEXT-

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 section 7851(a)(1)(A) of this title, and chapters

3 and 4 of the Internal Revenue Code of 1939 were repealed by

section 7851(a)(2)(A) of this title. For table of comparisons of

the 1939 Code to the 1986 Code, see Table I preceding section 1 of

this title. See also section 7851(e) of this title for provision

that references in the 1986 Code to a provision of the 1939 Code,

not then applicable, shall be deemed a reference to the

corresponding provision of the 1986 Code, which is then applicable.

The Revenue Act of 1926, referred to in text, is act Feb. 26,

1926, ch. 27, 44 Stat. 9. For complete classification of this Act

to the Code, see Tables.

-End-

-CITE-

26 USC Sec. 7443 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 76 - JUDICIAL PROCEEDINGS

Subchapter C - The Tax Court

PART I - ORGANIZATION AND JURISDICTION

-HEAD-

Sec. 7443. Membership

-STATUTE-

(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 section

135, title 28, United States Code, and section 5505, title 5,

United States Code.

(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.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 879; Mar. 2, 1955, ch. 9, Sec.

1(h), 69 Stat. 10; Pub. L. 88-426, title IV, Sec. 403(i), Aug. 14,

1964, 78 Stat. 434; Pub. L. 91-172, title IX, Secs. 952, 953, Dec.

30, 1969, 83 Stat. 730; Pub. L. 96-417, title VI, Sec. 601(10),

Oct. 10, 1980, 94 Stat. 1744; Pub. L. 96-439, Sec. 1(a), (b), Oct.

13, 1980, 94 Stat. 1878.)

-MISC1-

AMENDMENTS

1980 - Subsec. (a). Pub. L. 96-439, Sec. 1(a), increased number

of judges from 16 to 19.

Subsec. (b). Pub. L. 96-439, Sec. 1(b), struck out age limitation

that no one could be appointed a member of the Tax Court unless

appointed before attaining age 65.

Subsec. (d). Pub. L. 96-417 substituted "Court of International

Trade" for "Customs Court".

1969 - Subsec. (b). Pub. L. 91-172, Sec. 952(a), provided that an

individual may not be appointed a judge of the Tax Court after

reaching age 65.

Subsec. (c). Pub. L. 91-172, Sec. 953, substituted provisions

fixing salary of Tax Court judges at the same rate and same

installments as District Court judges, for provisions that each

judge of the Tax Court receive a salary of $30,000 per annum, to be

paid in monthly installments.

Subsec. (e). Pub. L. 91-172, Sec. 952(b), substituted provisions

that a term in office of any Tax Court judge would expire 15 years

after he takes office, for provisions that a term in office of any

Tax Court judge would expire 12 years after the expiration of the

term for which his predecessor was appointed, and any judge

appointed to fill a vacancy occurring prior to the expiration of

the term for which his predecessor was appointed would be appointed

only for the unexpired term of his predecessor.

1964 - Subsec. (c). Pub. L. 88-426 increased salary of judges

from $22,500 to $30,000.

1955 - Subsec. (c). Act Mar. 2, 1955, increased salary of judges

from $15,000 to $22,500.

EFFECTIVE DATE OF 1980 AMENDMENTS

Section 1(c) of Pub. L. 96-439 provided that: "The amendments

made by this section [amending this section] shall take effect on

February 1, 1981."

Amendment by Pub. L. 96-417 effective, except as otherwise

provided, Nov. 1, 1980, and applicable with respect to civil

actions pending on or commenced on or after such date, see section

701(a) of Pub. L. 96-417, as amended, set out as a note under

section 251 of Title 28, Judiciary and Judicial Procedure.

EFFECTIVE DATE OF 1969 AMENDMENT

Section 962(b), (c) of Pub. L. 91-172 provided that:

"(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 Pub. L. 91-172 to take effect on Dec.

30, 1969, see section 962(a) of Pub. L. 91-172, set out as a note

under section 7441 of this title.

EFFECTIVE DATE OF 1964 AMENDMENT

Amendment by Pub. L. 88-426 effective on first day of first pay

period which begins on or after July 1, 1964, except to the extent

provided in section 501(c) of Pub. L. 88-426, see section 501 of

Pub. L. 88-426.

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 section 31

of Title 2, The Congress.

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 section 358 of Title 2, The Congress.

1977 - Salaries of judges increased to $54,500 per annum, on

recommendation of the President of the United States, see note set

out under section 358 of Title 2.

1969 - Salaries of judges increased to $40,000 per annum, on

recommendation of the President of the United States, see note set

out under section 358 of Title 2.

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 following appropriation acts:

Pub. L. 107-67, title IV, Nov. 12, 2001, 115 Stat. 543.

Pub. L. 106-554, Sec. 1(a)(3) [title IV], Dec. 21, 2000, 114

Stat. 2763, 2763A-150.

Pub. L. 106-58, title IV, Sept. 29, 1999, 113 Stat. 463.

Pub. L. 105-277, div. A, Sec. 101(h) [title IV], Oct. 21, 1998,

112 Stat. 2681-480, 2681-510.

Pub. L. 105-61, title IV, Oct. 10, 1997, 111 Stat. 1304.

Pub. L. 104-208, div. A, title I, Sec. 101(f) [title IV], Sept.

30, 1996, 110 Stat. 3009-314, 3009-344.

Pub. L. 104-52, title IV, Nov. 19, 1995, 109 Stat. 491.

Pub. L. 103-329, title IV, Sept. 30, 1994, 108 Stat. 2408.

Pub. L. 103-123, title IV, Oct. 28, 1993, 107 Stat. 1251.

Pub. L. 102-393, title IV, Oct. 6, 1992, 106 Stat. 1757.

Pub. L. 102-141, title IV, Oct. 28, 1991, 105 Stat. 862.

Pub. L. 101-509, title IV, Nov. 5, 1990, 104 Stat. 1422.

Pub. L. 101-136, title IV, Nov. 3, 1989, 103 Stat. 811.

Pub. L. 100-440, title IV, Sept. 22, 1988, 102 Stat. 1746.

Pub. L. 100-202, Sec. 101(m) [title IV], Dec. 22, 1987, 101 Stat.

1329-390, 1329-414.

Pub. L. 99-500, Sec. 101(m) [title IV], Oct. 18, 1986, 100 Stat.

1783-308, 1783-323, and Pub. L. 99-591, Sec. 101(m) [title IV],

Oct. 30, 1986, 100 Stat. 3341-308, 3341-323.

Pub. L. 99-190, title I, Sec. 101(h) [H.R. 3036, title IV], Dec.

19, 1985, 99 Stat. 1291.

Pub. L. 98-473, title I, Sec. 101(j) [H.R. 5798, title IV], Oct.

12, 1984, 98 Stat. 1963.

Pub. L. 98-151, Sec. 101(f) [H.R. 4139, title IV], Nov. 14, 1983,

97 Stat. 973.

Pub. L. 97-377, title I, Sec. 101(a) [incorporating H.R. 4121,

title IV, for FY 1982], Dec. 21, 1982, 96 Stat. 1830.

Pub. L. 97-92, Sec. 101(a) [H.R. 4121, title IV], Dec. 15, 1981,

95 Stat. 1183.

Pub. L. 96-536, Sec. 101(a) [incorporating Pub. L. 96-74, title

IV], Dec. 16, 1980, 94 Stat. 3166.

Pub. L. 96-74, title IV, Sept. 29, 1979, 93 Stat. 572.

Pub. L. 95-429, title IV, Oct. 10, 1978, 92 Stat. 1013.

Pub. L. 95-81, title IV, July 31, 1977, 91 Stat. 352.

Pub. L. 94-363, title IV, July 14, 1976, 90 Stat. 975.

Pub. L. 94-91, title IV, Aug. 9, 1975, 89 Stat. 456.

Pub. L. 93-381, title IV, Aug. 21, 1974, 88 Stat. 629.

Pub. L. 93-143, title IV, Oct. 30, 1973, 87 Stat. 522.

Pub. L. 92-351, title IV, July 13, 1972, 86 Stat. 485.

Pub. L. 92-49, title IV, July 9, 1971, 85 Stat. 120.

Pub. L. 91-422, title IV, Sept. 26, 1970, 84 Stat. 878.

Pub. L. 91-74, title IV, Sept. 29, 1969, 83 Stat. 123.

Pub. L. 90-350, title IV, June 19, 1968, 82 Stat. 196.

Pub. L. 90-47, title IV, July 7, 1967, 81 Stat. 118.

Pub. L. 89-474, title IV, June 29, 1966, 80 Stat. 228.

Pub. L. 89-57, title IV, June 30, 1965, 79 Stat. 203.

Pub. L. 88-392, title IV, Aug. 1, 1964, 78 Stat. 375.

Pub. L. 88-39, title IV, June 13, 1963, 77 Stat. 65.

Pub. L. 87-575, title V, Aug. 6, 1962, 76 Stat. 317.

Pub. L. 87-159, title III, Aug. 21, 1961, 75 Stat. 398.

Pub. L. 86-561, title III, June 30, 1960, 74 Stat. 288.

Pub. L. 86-39, title III, June 11, 1959, 73 Stat. 70.

Pub. L. 85-354, title III, Mar. 28, 1958, 72 Stat. 66.

Pub. L. 85-37, title III, May 27, 1957, 71 Stat. 41.

Apr. 2, 1956, ch. 161, title III, 70 Stat. 98.

June 1, 1955, ch. 113, title III, 69 Stat. 78.

-EXEC-

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, set out as a note under

section 14 of the Appendix to Title 5, Government Organization and

Employees.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 7443A, 7447, 7448 of this

title.

-End-

-CITE-

26 USC Sec. 7443A 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 76 - JUDICIAL PROCEEDINGS

Subchapter C - The Tax Court

PART I - ORGANIZATION AND JURISDICTION

-HEAD-

Sec. 7443A. Special trial judges

-STATUTE-

(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, and

(5) 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), or (4) 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.

-SOURCE-

(Added Pub. L. 99-514, title XV, Sec. 1556(a), Oct. 22, 1986, 100

Stat. 2754; amended Pub. L. 105-206, title III, Secs. 3103(b)(1),

3401(c), July 22, 1998, 112 Stat. 731, 749; Pub. L. 105-277, div.

J, title IV, Sec. 4002(e), Oct. 21, 1998, 112 Stat. 2681-907.)

-MISC1-

AMENDMENTS

1998 - Subsec. (b)(3). Pub. L. 105-206, Sec. 3103(b)(1),

substituted "$50,000" for "$10,000".

Subsec. (b)(4), (5). Pub. L. 105-206, Sec. 3401(c)(1), as amended

by Pub. L. 105-277, Sec. 4002(e)(1), added par. (4) and

redesignated former par. (4) as (5).

Subsec. (c). Pub. L. 105-206, Sec. 3401(c)(2), as amended by Pub.

L. 105-277, Sec. 4002(e)(2), substituted "(3), or (4)" for "or

(3)".

EFFECTIVE DATE OF 1998 AMENDMENTS

Amendment by Pub. L. 105-277 effective as if included in the

provision of the Internal Revenue Service Restructuring and Reform

Act of 1998, Pub. L. 105-206, to which such amendment relates, see

section 4002(k) of Pub. L. 105-277, set out as a note under section

1 of this title.

Amendment by section 3103 of Pub. L. 105-206 applicable to

proceedings commenced after July 22, 1998, see section 3103(c) of

Pub. L. 105-206, set out as a note under section 7436 of this

title.

Amendment by section 3401 of Pub. L. 105-206 applicable to

collection actions initiated after the date which is 180 days after

July 22, 1998, see section 3401(d) of Pub. L. 105-206, set out as

an Effective Date note under section 6320 of this title.

EFFECTIVE DATE

Section 1556(c) of Pub. L. 99-514 provided that:

"(1) In general. - Except as provided in paragraph (2), the

amendments made by this section [enacting this section and amending

sections 7456 and 7471 of this title] shall take effect on the date

of the enactment of this Act [Oct. 22, 1986].

"(2) Salary. - Subsection (d) of section 7443A of the Internal

Revenue Code of 1954 [now 1986] (as added by this section) shall

take effect on the 1st day of the 1st month beginning after the

date of the enactment of this Act [Oct. 22, 1986].

"(3) New appointments not required. - Nothing in the amendments

made by this section shall be construed to require the

reappointment of any individual serving as a special trial judge of

the Tax Court on the day before the date of the enactment of this

Act [Oct. 22, 1986]."

INCONSISTENCIES WITH PRESIDENTIAL SALARY RECOMMENDATIONS

Pub. L. 100-647, title I, Sec. 1015(j), Nov. 10, 1988, 102 Stat.

3571, provided that: "To the extent the salary recommendations

submitted by the President on January 5, 1987, are inconsistent

with the provisions of section 7443A(d)(1) of the 1986 Code, such

recommendations shall not be effective for any period."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 7471 of this title.

-End-

-CITE-

26 USC Sec. 7444 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 76 - JUDICIAL PROCEEDINGS

Subchapter C - The Tax Court

PART I - ORGANIZATION AND JURISDICTION

-HEAD-

Sec. 7444. Organization

-STATUTE-

(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.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 880.)

-End-

-CITE-

26 USC Sec. 7445 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 76 - JUDICIAL PROCEEDINGS

Subchapter C - The Tax Court

PART I - ORGANIZATION AND JURISDICTION

-HEAD-

Sec. 7445. Offices

-STATUTE-

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.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 880.)

-End-

-CITE-

26 USC Sec. 7446 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 76 - JUDICIAL PROCEEDINGS

Subchapter C - The Tax Court

PART I - ORGANIZATION AND JURISDICTION

-HEAD-

Sec. 7446. Times and places of sessions

-STATUTE-

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.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 880.)

-End-

-CITE-

26 USC Sec. 7447 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 76 - JUDICIAL PROCEEDINGS

Subchapter C - The Tax Court

PART I - ORGANIZATION AND JURISDICTION

-HEAD-

Sec. 7447. Retirement

-STATUTE-

(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:

And the years

of service as

The judge has a judge are

attained age: 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.

Section 8335(a) of title 5 of the United States Code (relating to

automatic separation from the service) shall not apply in respect

of judges. Any judge who retires shall be designated "senior

judge".

(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 section 8331(8) of title 5 of the United States

Code upon making application therefor with the Office of

Personnel Management.

(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 Civil Service Commission. The

Civil Service Commission 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 4 percent per annum to December 31, 1947, and 3 percent

per annum thereafter, 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.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 880; Pub. L. 89-354, Sec. 1,

Feb. 2, 1966, 80 Stat. 5; Pub. L. 91-172, title IX, Secs. 954,

960(c), (d), Dec. 30, 1969, 83 Stat. 730, 734; Pub. L. 92-41, Sec.

4(a), July 1, 1971, 85 Stat. 99; Pub. L. 95-472, Sec. 1, Oct. 17,

1978, 92 Stat. 1332; Pub. L. 97-362, title I, Sec. 106(d), Oct. 25,

1982, 96 Stat. 1730; Pub. L. 99-514, title XV, Sec. 1557(a), (b),

(d), Oct. 22, 1986, 100 Stat. 2756, 2757; Pub. L. 100-647, title I,

Sec. 1015(k)(1), Nov. 10, 1988, 102 Stat. 3571.)

-REFTEXT-

REFERENCES IN TEXT

The civil service retirement laws, referred to in subsecs.

(g)(2)(A) and (i)(3)(C), are classified generally to subchapter III

(Sec. 8331 et seq.) of chapter 83 of Title 5, Government

Organization and Employees.

The Civil Service Retirement and Disability Fund, referred to in

subsecs. (g)(2)(B) and (i)(3)(C), (D), is provided for in section

8348 of Title 5.

-MISC1-

AMENDMENTS

1988 - Subsec. (d). Pub. L. 100-647 inserted at end "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."

1986 - Subsec. (a)(2), (3), (5). Pub. L. 99-514, Sec. 1557(d)(1),

redesignated pars. (3) and (5) as (2) and (3), respectively, and

struck out former par. (2) which read as follows: "The term 'Civil

Service Commission' means the United States Civil Service

Commission."

Subsec. (b)(2). Pub. L. 99-514, Sec. 1557(a), amended par. (2)

generally. Prior to amendment, par. (2) read as follows: "Any judge

who has attained the age of 65 may retire any time after serving as

judge for 15 years or more."

Subsec. (e). Pub. L. 99-514, Sec. 1557(d)(2), substituted "Office

of Personnel Management" for "Civil Service Commission" in par. (4)

and in last sentence.

Subsec. (f). Pub. L. 99-514, Sec. 1557(b), amended subsec. (f)

generally. Prior to amendment, subsec. (f), individuals receiving

retired pay to be available for recall, read as follows: "Any

individual who has elected to receive retired pay under subsection

(d) who thereafter -

"(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). Pub. L. 99-514, Sec. 1557(d)(3), substituted

"Office of Personnel Management" for "Civil Service Commission".

1982 - Subsec. (b). Pub. L. 97-362 inserted provision that any

judge who retires shall be designated "senior judge".

1978 - Subsec. (i). Pub. L. 95-472 added subsec. (i).

1971 - Subsec. (c). Pub. L. 92-41 substituted "At or after his

retirement, any individual who has elected to receive" for "Any

individual who is receiving".

1969 - Subsec. (a)(4). Pub. L. 91-172, Sec. 954(e)(1), struck out

par. (4) which defined the term "Civil Service Retirement Act".

Subsec. (a)(1). Pub. L. 91-172, Sec. 960(c), substituted "United

States Tax Court" for "Tax Court of the United States".

Subsec. (a)(5). Pub. L. 91-172, Sec. 960(d), inserted reference

to service as a judge of the Tax Court of the United States.

Subsec. (b). Pub. L. 91-172, Sec. 954(a), substituted provisions

authorizing retirement at age 70, or age 65 after serving 15 years,

or when any judge has become permanently disabled, authorizing any

judge not reappointed who has served 15 years or more to retire

under enumerated condition, and rendering section 8335(a) of title

5 not applicable to judges, for provisions authorizing retirement

after a judge has served 18 years, requiring anyone who served as a

judge for 10 years or more and attained the age of 70 years to

retire no later than the close of the third month beginning after

the month in which he attained 70 years or the month completing the

tenth year of service or August 1953, and rendering section 2(a) of

the Civil Service Retirement Act not applicable to judges.

Subsec. (d). Pub. L. 91-172, Sec. 954(b), substituted provisions

specifying methods of computation of retirement pay under subsec.

(b) of this section so as to conform such provisions to subsec. (b)

(relating to conditions for retiring), for provisions specifying

methods of computation for retirement pay under former subsec. (b)

of this section (relating to conditions for retiring).

Subsec. (g)(1). Pub. L. 91-172, Sec. 954(e)(2), substituted

"civil service retirement laws" and "such civil service retirement

laws apply" for "Civil Service Retirement Act" and "such Act

applies", respectively.

Subsec. (g)(2). Pub. L. 91-172, Sec. 954(c), substituted

provisions that any individual electing to receive retirement pay

under subsec. (d) of this section is not to receive any payment

under the civil service retirement laws, and no deduction is to be

made for the Civil Service Retirement and Disability Fund, and a

lump-sum credit computed under section 8331(8) of Title 5 is to be

paid, for provisions which enumerated the effects and conditions of

electing retirement pay under former subsec. (d) of this section.

Subsec. (g)(3). Pub. L. 91-172, Sec. 954(c), struck out par. (3)

which enumerated the conditions and effects of waiving civil

service benefits in lieu of retirement pay under former subsec. (d)

of this section.

Subsec. (g)(4). Pub. L. 91-172, Sec. 954(c), struck out par. (4)

which provided that the fourth and sixth paragraphs of section 6 of

the Civil Service Retirement Act would be applicable to retirement

pay accruing under subsec. (d) of this section.

Subsec. (h). Pub. L. 91-172, Sec. 954(d), added subsec. (h).

1966 - Subsec. (d). Pub. L. 89-354 substituted "during any period

at a rate which bears the same ratio to the rate of the salary

payable to a judge during such period" for "at a rate which bears

the same ratio to the rate of the salary payable to him as judge at

the time he ceases to be a judge" and "the rate of such salary for

such period" for "the rate of such salary" wherever appearing.

EFFECTIVE DATE OF 1988 AMENDMENT

Section 1015(k)(2) of Pub. L. 100-647 provided that: "The

amendment made by paragraph (1) [amending this section] shall apply

for purposes of determining the amount of retired pay for months

beginning after the date of the enactment of this Act [Nov. 10,

1988] regardless of when the services under section 7447(c) of the

1986 Code were performed."

EFFECTIVE DATE OF 1986 AMENDMENT

Section 1557(e) of Pub. L. 99-514 provided that:

"(1) In general. - The amendments made by this section [amending

this section and section 7448 of this title] shall take effect on

the date of the enactment of this Act [Oct. 22, 1986].

"(2) Forfeiture of retired pay. - The amendments made by this

section shall not apply to any individual who, before the date of

the enactment of this Act [Oct. 22, 1986], forfeited his rights to

retired pay under section 7447(d) of the Internal Revenue Code of

1954 [now 1986] by reason of the 1st sentence of section 7447(f) of

such Code (as in effect on the day before such date)."

EFFECTIVE DATE OF 1978 AMENDMENT

Section 2(a) of Pub. L. 95-472 provided that: "The amendment made

by the first section of this Act [amending this section] shall

apply with respect to revocations made after the date of the

enactment of this Act [Oct. 17, 1978]."

EFFECTIVE DATE OF 1971 AMENDMENT

Section 4(c)(1) of Pub. L. 92-41, as amended by Pub. L. 99-514,

Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that: "The

amendment made by subsection (a) [amending this section] shall be

effective as if included in the Internal Revenue Code of 1986

[formerly I.R.C. 1954] on the date of its enactment [July 1, 1971].

Provisions having the same effect as such amendment shall be

treated as having been included in the Internal Revenue Code of

1939 [section 1106(c)] effective on and after August 7, 1953."

EFFECTIVE DATE OF 1969 AMENDMENT

Amendment by sections 954(c), (e) and 960(c), (d) of Pub. L.

91-172 effective Dec. 30, 1969, see section 962(a) of Pub. L.

91-172, set out as a note under section 7441 of this title.

Section 962(d) of Pub. L. 91-172, as amended by Pub. L. 99-514,

Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that: "The

amendments made by subsections (a), (b), and (d) of section 954

[amending this section] shall apply to -

"(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

Section 2 of Pub. L. 89-354, as amended by Pub. L. 99-514, Sec.

2, Oct. 22, 1986, 100 Stat. 2095, provided that: "The amendments

made by the first section of this Act [amending this section and

section 1106 of I.R.C. 1939] shall apply with respect to retired

pay accruing under section 1106 of the Internal Revenue Code of

1939 or section 7447 of the Internal Revenue Code of 1986 [formerly

I.R.C. 1954] on or after the first day of the first calendar month

which begins after the date of enactment of this Act [Feb. 2,

1966]."

-TRANS-

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, Sec. 102, 43 F.R. 36037, 92 Stat. 3783, set out

under section 1101 of Title 5, Government Organization and

Employees, effective Jan. 1, 1979, as provided by section 1-102 of

Ex. Ord. No. 12107, Dec. 28, 1978, 44 F.R. 1055, set out under

section 1101 of Title 5.

-MISC2-

REDEPOSITING FUNDS IN CIVIL SERVICE RETIREMENT AND DISABILITY FUND;

CREDITABLE SERVICE

Section 2(b) of Pub. L. 95-472, as amended by Pub. L. 99-514,

Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that: "Any

individual who elects to revoke under section 7447(i) of the

Internal Revenue Code of 1986 [formerly I.R.C. 1954] within one

year after the date of enactment of this Act [Oct. 17, 1978] shall

be treated as having the requisite current service for purposes of

redepositing funds in the Civil Service Retirement and Disability

Fund and for purposes of reviving creditable service under

subchapter III of chapter 83 of title 5 of the United States Code."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 7448 of this title; title

28 sections 178, 377.

-End-

-CITE-

26 USC Sec. 7448 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 76 - JUDICIAL PROCEEDINGS

Subchapter C - The Tax Court

PART I - ORGANIZATION AND JURISDICTION

-HEAD-

Sec. 7448. Annuities to surviving spouses and dependent children of

judges

-STATUTE-

(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 or under

section 1106 of the Internal Revenue Code of 1939 whether or not

performing judicial duties pursuant to section 7447(c) or

pursuant to section 1106(d) of the Internal Revenue Code of 1939.

(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 "survivors annuity fund" means the Tax Court

judges survivors annuity fund established by this section.

(6) 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.

(7) 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.

(b) Election

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.

(c) Survivors annuity fund

(1) Salary deductions

There shall be deducted and withheld from the salary of each

judge electing under subsection (b) a sum equal to 3.5 percent of

such judge's salary. The amounts so deducted and withheld from

such 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 judges survivors

annuity fund" and said fund is appropriated for the payment of

annuities, refunds, and allowances as provided by this section.

Each 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 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 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) 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 section 9503 of title 31, United States

Code), over

(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 electing under subsection (b) shall deposit, with

interest at 4 percent per annum to December 31, 1947, and 3 percent

per annum thereafter, 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 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 section 8332 of title 5 of the United

States Code. Each such judge may elect to make such deposits in

installments during the continuance of his service as a judge in

such amount and under such conditions as may be determined in each

instance by the chief judge. Notwithstanding the failure of a judge

to make such deposit, credit shall be allowed for the service

rendered, but the annuity of the surviving spouse of such judge

shall be reduced by an amount equal to 10 percent of the amount of

such deposit, computed as of the date of the death of such judge,

unless such surviving spouse shall elect to eliminate such service

entirely from credit under subsection (n), except that no deposit

shall be required from a judge for any year with respect to which

deductions from his salary were actually made under the civil

service retirement laws and no deposit shall be required for any

honorable service in the Army, Navy, Air Force, Marine Corps, or

Coast Guard of the United States.

(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 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.

(g) Termination

If the service of any judge electing under subsection (b)

terminates other than pursuant to the provisions of section 7447 or

other than pursuant to section 1106 of the Internal Revenue Code of

1939 or if any 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 4 percent per annum

to December 31, 1947, and 3 percent per annum thereafter,

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 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

In case any judge electing under subsection (b) shall die while a

judge after having rendered at least 5 years of civilian service

computed as prescribed in subsection (n), for the last 5 years 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 -

(1) if such judge 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

following the surviving spouse's attainment of the age of 50

years, whichever is the later, in an amount computed as provided

in subsection (m); or

(2) if such judge is survived by a surviving spouse and a

dependent child or children, there shall be paid to such

surviving spouse an immediate annuity 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 -

(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

(3) if such judge 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 -

(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.

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. The annuity

payable to a child under this subsection shall be terminable upon

(A) his attaining the age of 18 years, (B) his marriage, or (C) his

death, whichever first occurs, except that if such child is

incapable of self-support by reason of mental or physical

disability his annuity shall be terminable only upon death,

marriage, or recovery from such disability. In case of the death of

a surviving spouse of a judge leaving a dependent child or children

of the judge surviving such spouse, the annuity of such child or

children shall be recomputed and paid as provided in paragraph (3)

of this subsection. 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, shall be recomputed and paid as though the child

whose annuity was so terminated had not survived such judge.

(i) Determination of 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.

(j) Payments in certain cases

(1) In any case in which -

(A) a judge electing under subsection (b) shall die while in

office (whether in regular active service or retired from such

service under section 7447), before having rendered 5 years of

civilian service computed as prescribed in subsection (n), or

after having rendered 5 years of such civilian service but

without a survivor or survivors entitled to annuity benefits

provided by subsection (h), or

(B) the right of all persons entitled to annuity under

subsection (h) based on the service of such judge shall terminate

before a valid claim therefor shall have been established,

the total amount credited to the individual account of such judge,

with interest at 4 percent per annum to December 31, 1947, and 3

percent per annum thereafter, compounded on December 31 of each

year, to the date of the death of such 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 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;

(iii) if none of the above, to the child or children of such

judge and the descendents of any deceased children by

representation;

(iv) if none of the above, to the parents of such 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; and

(vi) if none of the above, to such other next of kin of such

judge as may be determined by the chief judge to be entitled

under the laws of the domicile of such judge at the time of his

death.

Determination as to the surviving spouse, child, or parent of a

judge for the purposes of this paragraph shall be made by the chief

judge without regard to the definitions in subsections (a)(6) and

(7).

(2) In any case in which the annuities of all persons entitled to

annuity based upon the service of a judge shall terminate before

the aggregate amount of annuity paid equals the total amount

credited to the individual account of such judge, with interest at

4 percent per annum to December 31, 1947, and 3 percent per annum

thereafter, compounded on December 31 of each year, to the date of

the death of such 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 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 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.

(g742l) 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 electing under

subsection (b) shall be an amount equal to the sum of 1.5 percent

of the average annual salary (whether judge's salary or

compensation for other allowable service) received by such judge

for judicial service (including periods in which he received

retired pay under section 7447(d)) or for any other prior allowable

service during the period of 3 consecutive years in which he

received the largest such average annual salary, multiplied by the

sum of his years of such judicial service, his years of prior

allowable service as a Senator, Representative, Delegate, or

Resident Commissioner in Congress, his years of prior allowable

service performed as a member of the Armed Forces of the United

States, and his years, not exceeding 15, of prior allowable service

performed as a congressional employee (as defined in section 2107

of title 5 of the United States Code,(!1) and (2) three-fourths of

1 percent of such average annual salary multiplied by his 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 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 of the Tax Court of the United States, and as a

judge of the Tax Court, 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 section 8332 of title 5 of the United States Code.

(g742o) 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 attributable to increased pay

Whenever the salary of a judge under section 7443(c) is

increased, each annuity payable from the survivors annuity fund

which is based, in whole or in part, upon a deceased judge having

rendered some portion of his or her final 18 months of service as a

judge of the Tax Court, shall also be increased. The amount of the

increase in such an annuity shall be determined by multiplying the

amount of the annuity, on the date on which the increase in salary

becomes effective, by 3 percent for each full 5 percent by which

such salary has been increased.

(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.

-SOURCE-

(Added Pub. L. 87-370, Sec. 1, Oct. 4, 1961, 75 Stat. 796; amended

Pub. L. 91-172, title IX, Secs. 955, 960(c), (e), Dec. 30, 1969, 83

Stat. 732, 734; Pub. L. 92-41, Sec. 4(b), July 1, 1971, 85 Stat.

99; Pub. L. 94-455, title XIX, Sec. 1906(a)(46), Oct. 4, 1976, 90

Stat. 1830; Pub. L. 97-362, title I, Sec. 105(a), (b), Oct. 25,

1982, 96 Stat. 1729; Pub. L. 98-216, Sec. 3(c)(1), Feb. 14, 1984,

98 Stat. 6; Pub. L. 98-369, div. A, title IV, Sec. 462(a), July 18,

1984, 98 Stat. 824; Pub. L. 99-514, title XV, Secs. 1557(c),

1559(a)-(c), Oct. 22, 1986, 100 Stat. 2757-2760.)

-REFTEXT-

REFERENCES IN TEXT

Section 1106 of the Internal Revenue Code of 1939, referred to in

subsecs. (a)(2) and (g), was classified to section 1106 of former

Title 26, Internal Revenue Code. For table of comparisons of the

1939 Code to the 1986 Code, see Table I preceding section 1 of this

title. See, also, section 7851(e) of this title for provision that

references in the 1986 Code to a provision of the 1939 Code, not

then applicable, shall be deemed a reference to the corresponding

provision of the 1986 Code, which is then applicable.

The civil service retirement laws, referred to in subsecs. (d),

(h), and (r), are contained in subchapter III (Sec. 8331 et seq.)

of chapter 83 of Title 5, Government Organization and Employees.

-MISC1-

AMENDMENTS

1986 - Subsec. (c). Pub. L. 99-514, Sec. 1559(a)(1)(A), (2)(A),

substituted "Survivors annuity fund" for "Salary deductions" in

heading, inserted par. (1) designation and heading "Salary

deductions" before existing text, realigned margin of text and

substituted "3.5 percent" for "3 percent", and added par. (2).

Subsec. (d). Pub. L. 99-514, Sec. 1559(a)(1)(B), substituted "3.5

percent" for second reference to "3 percent".

Subsec. (g). Pub. L. 99-514, Sec. 1559(c), struck out "of

service" after "Termination" in heading and inserted "or if any

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" in text.

Subsec. (h). Pub. L. 99-514, Sec. 1559(a)(2)(B), substituted

"subsection (c)(1)" for "subsection (c)" in introductory

provisions.

Pub. L. 99-514, Sec. 1559(b)(1)(B), substituted "or such

surviving spouse's remarriage before attaining age 55" for "or

remarriage" in second sentence.

Subsec. (h)(2). Pub. L. 99-514, Sec. 1559(b)(2)(A), substituted

"the lesser of -

"(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). Pub. L. 99-514, Sec. 1559(b)(2)(B), substituted

"the lesser of -

"(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). Pub. L. 99-514, Sec. 1559(b)(1)(A), substituted "1.5

percent" for "1 1/4 percent" and "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)" for "but such annuity shall

not exceed 40 percent of such average annual salary and shall be

further reduced in accordance with subsection (d), if applicable".

Pub. L. 99-514, Sec. 1557(c), inserted last sentence.

1984 - Subsec. (h)(2). Pub. L. 98-369,Sec. 462(a)(1), substituted

"$4,644" for "$900" and "$1,548" for "$360".

Subsec. (h)(3). Pub. L. 98-369, Sec. 462(a)(2), substituted

"$5,580 per year divided by the number of such children or $1,860

per year, whichever is lesser" for "$480 per year".

Subsec. (p). Pub. L. 98-216 substituted "President" for "Bureau

of the Budget".

1982 - Subsec. (m). Pub. L. 97-362, Sec. 105(a), substituted "3

consecutive years" for "5 consecutive years", and "40 percent" for

"37 1/2 percent".

Subsecs. (s), (t). Pub. L. 97-362, Sec. 105(b), added subsec. (s)

and redesignated former subsec. (s) as (t).

1976 - Pub. L. 94-455, Sec. 1906(a)(46)(F), substituted

"surviving spouses" for "widows" in section catchline.

Subsec. (a)(6). Pub. L. 94-455, Sec. 1906(a)(46)(A), substituted

"The term 'surviving spouse' means a surviving spouse of" for "The

term 'widow' means a surviving wife of" and "a parent of issue" for

"the mother of issue".

Subsec. (d). Pub. L. 94-455, Sec. 1906(a)(46)(E), substituted

"surviving spouse" for "widow" wherever appearing.

Subsec. (h). Pub. L. 94-455, Sec. 1906(a)(46)(B), (C),

substituted "a surviving spouse" for "a widow", "such surviving

spouse" for "such widow", "surviving spouse's" for "widow's",

"surviving spouse" for "surviving widow or widower", "such spouse"

for "she" and "surviving such spouse" for "surviving her".

Subsecs. (j), (m), (n). Pub. L. 94-455, Sec. 1906(a)(46)(E),

substituted "surviving spouse" for "widow" wherever appearing.

Subsec. (o). Pub. L. 94-455, Sec. 1906(a)(46)(C), (D), (E),

substituted "surviving spouse" for "widow", "such spouse" for "she"

and "such spouse's" for "her".

Subsec. (q). Pub. L. 94-455, Sec. 1906(a)(46)(E), substituted

"surviving spouse" for "widow".

1971 - Subsec. (m). Pub. L. 92-41 inserted "(whether judge's

salary or compensation for other allowable service)" and

"(including periods in which he received retired pay under section

7447(d))" after "average annual salary" and "judicial service",

respectively, and substituted "or for any other prior allowable

service during the period of 5 consecutive years in which he

received the largest such average annual salary, multiplied by the

sum of his years of such judicial service" for "and any other prior

allowable service during the last 5 years of such service prior to

his death, or prior to his receiving retired pay under section

7447(d), whichever first occurs, multiplied by the sum of his years

of judicial service".

1969 - Subsec. (a)(1). Pub. L. 91-172, Sec. 960(c), substituted

"United States Tax Court" for "Tax Court of the United States".

Subsec. (b). Pub. L. 91-172, Sec. 955(a), substituted provisions

authorizing a judge to file notice of election to take benefits

relating to survivor annuities while a judge, and if not

reappointed, authorizing such election at any time before the day

after the day on which his successor takes office, for provisions

authorizing a judge to file within 6 months after he takes office

or is reappointed, or within 6 months after he becomes eligible for

retirement under former section 7447(b) of this title, or within 6

months after Oct. 4, 1961.

Subsec. (d). Pub. L. 91-172, Sec. 955(d)(1), (2), substituted

"civil service retirement laws" for "Civil Service Retirement Act"

and "section 8332 of title 5 of the United States Code" for

"section 3 of the Civil Service Retirement Act (5 U.S.C. 2253)".

Subsec. (h). Pub. L. 91-172, Sec. 955(b)(1), substituted "civil

service retirement laws" for "Civil Service Retirement Act".

Subsec. (m). Pub. L. 91-172, Sec. 955(b)(3), substituted "section

2107 of title 5 of the United States Code" for "section 1(c) of the

Civil Service Retirement Act (5 U.S.C. 2251(c))".

Subsec. (n). Pub. L. 91-172, Secs. 955(b)(2), 960(e), substituted

"section 8332 of title 5 of the United States Code" for "section 3

of the Civil Service Retirement Act (5 U.S.C. 2253)" and inserted

reference to service as a judge of the Tax Court of the United

States.

Subsec. (r). Pub. L. 91-172, Sec. 955(b)(1), (4), substituted

"civil service retirement laws" for "Civil Service Retirement Act"

and substituted "an election filed under section 7447(e)" for "a

waiver filed under section 7447(g)(3)".

EFFECTIVE DATE OF 1986 AMENDMENT

Amendment by section 1557(c) of Pub. L. 99-514 effective Oct. 22,

1986, but not applicable to any individual who, before Oct. 22,

1986, forfeited his rights to retired pay under section 7447(d) of

this title by reason of the 1st sentence of section 7447(f) of this

title (as in effect on the day before such date), see section

1557(e) of Pub. L. 99-514, set out as a note under section 7447 of

this title.

Section 1559(d) of Pub. L. 99-514 provided that:

"(1) Salary deductions. -

"(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) Appropriations. - The amendments made by subsection (a)(2)

[amending this section] shall apply to fiscal years beginning after

1986.

"(3) Computation of annuities. - The amendments made by

subsection (b) [amending this section] shall apply to annuities the

starting date of which is after November 1, 1986.

"(4) Opportunity to revoke survivor annuity election. -

"(A) In general. - Any individual who before November 1, 1986,

made an election under subsection (b) of section 7448 of the

Internal Revenue Code of 1954 [now 1986] may revoke such

election. Such a revocation shall constitute a complete

withdrawal from the survivor annuity program provided for in such

section and shall be filed as provided for elections under such

subsection.

"(B) Effect of revocation. - Any revocation under subparagraph

(A) shall have the same effect as if there were a termination to

which section 7448(g) of such Code applies on the date such

revocation is filed.

"(C) Period revocation permitted. - Any revocation under

subparagraph (A) may be made only during the 180-day period

beginning on the date of the enactment of this Act [Oct. 22,

1986].

"(5) Opportunity to elect survivor annuity where prior

revocation. - Any individual who under paragraph (4) revoked an

election under subsection (b) of section 7448 of such Code may

thereafter make such an election only if such individual deposits

to the credit of the survivors annuity fund under subsection (c) of

such section the entire amount paid to such individual under

paragraph (4), together with interest computed as provided in

subsection (d) of such section."

EFFECTIVE DATE OF 1984 AMENDMENT

Section 462(b) of Pub. L. 98-369, provided that: "The amendments

made by this [sic] subsection (a) [amending this section] shall

apply to annuities payable with respect to months beginning after

the date of the enactment of this Act [July 18, 1984]."

EFFECTIVE DATE OF 1982 AMENDMENT

Section 105(d) of Pub. L. 97-362 provided that:

"(1) Subsection (a). - The amendment made by subsection (a)

[amending this section] shall apply to annuities payable with

respect to judges dying after the date of the enactment of this Act

[Oct. 25, 1982].

"(2) Subsection (b). - The amendment made by subsection (b) of

this section [amending this section] shall apply with respect to

increases in the salary of judges of the United States Tax Court

taking effect after the date of the enactment of this Act [Oct. 25,

1982]."

EFFECTIVE DATE OF 1976 AMENDMENT

Amendment by Pub. L. 94-455 effective on first day of first month

which begins more than 90 days after Oct. 4, 1976, see section

1906(d) of Pub. L. 94-455, set out as a note under section 6013 of

this title.

EFFECTIVE DATE OF 1971 AMENDMENT

Section 4(c)(2) of Pub. L. 92-41 provided that: "The amendment

made by subsection (b) [amending this section] shall apply only

with respect to judges of the United States Tax Court dying on or

after the date of the enactment of this Act [July 1, 1971]."

EFFECTIVE DATE OF 1969 AMENDMENT

Amendment by Pub. L. 91-172 effective Dec. 30, 1969, see section

962(a) of Pub. L. 91-172, set out as a note under section 7441 of

this title.

-TRANS-

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

sections 468(b), 551(d), 552(d), and 557 of Title 6, Domestic

Security, and the Department of Homeland Security Reorganization

Plan of November 25, 2002, as modified, set out as a note under

section 542 of Title 6.

-MISC2-

CATCHUP FOR SURVIVORS ANNUITIES IN PAY STATUS ON OCTOBER 25, 1982

Section 105(c) of Pub. L. 97-362, as amended by Pub. L. 97-448,

title III, Sec. 305(e), Jan. 12, 1983, 96 Stat. 2400; Pub. L.

99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that: "If

an annuity payable under section 7448(h) of the Internal Revenue

Code of 1986 [formerly I.R.C. 1954] (relating to entitlement to

annuity) to the surviving spouse of a judge of the United States

Tax Court is being paid on the date of the enactment of this Act,

then the amount of that annuity shall be adjusted, as of the first

day of the first month beginning more than 30 days after such date,

to reflect the amount of the annuity which would have been payable

if the amendment made by subsection (b) applied with respect to

increases in the salary of a judge under section 7443(c) of such

Code taking effect after December 31, 1963."

[Pub. L. 97-448, title III, Sec. 311(c)(5), Jan. 12, 1983, 96

Stat. 2412, provided that: "The amendment made by subsection (e) of

section 305 [amending section 105(c) of Pub. L. 97-362, set out

above] shall take effect on the date of the enactment of the

Miscellaneous Revenue Act of 1982 [Oct. 25, 1982]."]

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 7447 of this title.

-FOOTNOTE-

(!1) So in original. A closing parenthesis probably should precede

the comma.

-End-

-CITE-

26 USC PART II - PROCEDURE 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 76 - JUDICIAL PROCEEDINGS

Subchapter C - The Tax Court

PART II - PROCEDURE

-HEAD-

PART II - PROCEDURE

-MISC1-

Sec.

7451. Fee for filing petition.

7452. Representation of parties.

7453. Rules of practice, procedure, and evidence.

7454. Burden of proof in fraud and transferee cases.(!1)

7455. Service of process.

7456. Administration of oaths and procurement of testimony.

7457. Witness fees.

7458. Hearings.

7459. Reports and decisions.

7460. Provisions of special application to divisions.

7461. Publicity of proceedings.

7462. Publication of reports.

7463. Disputes involving $50,000 or less.

7464. Intervention by trustee of debtor's estate.

7465. Provisions of special application to transferees.

AMENDMENTS

1998 - Pub. L. 105-206, title III, Sec. 3103(b)(2), July 22,

1998, 112 Stat. 731, substituted "$50,000" for "$10,000" in item

7463.

1984 - Pub. L. 98-369, div. A, title IV, Sec. 461(a)(2)(B), July

18, 1984, 98 Stat. 823, substituted "$10,000" for "$5,000" in item

7463.

1980 - Pub. L. 96-589, Sec. 6(c)(2), Dec. 24, 1980, 94 Stat.

3407, added item 7464 and redesignated former item 7464 as 7465.

1978 - Pub. L. 95-600, title V, Sec. 502(a)(2)(B), Nov. 6, 1978,

92 Stat. 2879, substituted "$5,000" for "$1,500" in item 7463.

1972 - Pub. L. 92-512, title II, Sec. 203(b)(3), Oct. 20, 1972,

86 Stat. 945, substituted "$1,500" for "$1,000" in item 7463.

1969 - Pub. L. 91-172, title IX, Sec. 957(b), Dec. 30, 1969, 83

Stat. 733, added item 7463 and redesignated former item 7463 as

7464.

-FOOTNOTE-

(!1) Section catchline amended by Pub. L. 91-172 without

corresponding amendment of analysis.

-End-

-CITE-

26 USC Sec. 7451 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 76 - JUDICIAL PROCEEDINGS

Subchapter C - The Tax Court

PART II - PROCEDURE

-HEAD-

Sec. 7451. Fee for filing petition

-STATUTE-

The tax court is authorized to impose a fee in an amount not in

excess $60 to be fixed by the Tax Court for the filing of any

petition for the redetermination of a deficiency or for a

declaratory judgment under part IV of this subchapter or under

section 7428 or for judicial review under section 6226 or section

6228(a).

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 884; Pub. L. 93-406, title II,

Sec. 1041(b)(1), Sept. 2, 1974, 88 Stat. 950; Pub. L. 94-455, title

XIII, Sec. 1306(b)(1), Oct. 4, 1976, 90 Stat. 1719; Pub. L. 97-34,

title VII, Sec. 751(a), Aug. 13, 1981, 95 Stat. 349; Pub. L.

97-248, title IV, Sec. 402(c)(12), Sept. 3, 1982, 96 Stat. 668.)

-MISC1-

AMENDMENTS

1982 - Pub. L. 97-248 inserted provision relating to judicial

review under section 6226 or section 6228(a).

1981 - Pub. L. 97-34 increased limitation on amount of fee to $60

from $10.

1976 - Pub. L. 94-455 inserted "or under section 7428" after

"part IV of this subchapter".

1974 - Pub. L. 93-406 inserted reference to a declaratory

judgment under part IV of this subchapter.

EFFECTIVE DATE OF 1982 AMENDMENT

Amendment by Pub. L. 97-248 applicable to partnership taxable

years beginning after Sept. 3, 1982, with provision for the

applicability of the amendment to any partnership taxable year

ending after Sept. 3, 1982, if the partnership, each partner, and

each indirect partner requests such application and the Secretary

of the Treasury or his delegate consents to such application, see

section 407(a)(1), (3) of Pub. L. 97-248, set out as an Effective

Date note under section 6221 of this title.

EFFECTIVE DATE OF 1981 AMENDMENT

Section 751(b) of Pub. L. 97-34 provided that: "The amendment

made by this section [amending this section] shall apply to

petitions filed after December 31, 1981."

EFFECTIVE DATE OF 1976 AMENDMENT

Amendment by Pub. L. 94-455 applicable with respect to pleadings

filed with the United States Tax Court, the district court of the

United States for the District of Columbia, or the United States

Court of Claims more than 6 months after Oct. 4, 1976, but only

with respect to determinations (or requests for determinations)

made after Jan. 1, 1976, see section 1306(c) of Pub. L. 94-455, set

out as an Effective Date note under section 7428 of this title.

EFFECTIVE DATE OF 1974 AMENDMENT

Amendment by Pub. L. 93-406 applicable to pleadings filed more

than one year after Sept. 2, 1974, see section 1041(d) of Pub. L.

93-406, set out as an Effective Date note under section 7476 of

this title.

-End-

-CITE-

26 USC Sec. 7452 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 76 - JUDICIAL PROCEEDINGS

Subchapter C - The Tax Court

PART II - PROCEDURE

-HEAD-

Sec. 7452. Representation of parties

-STATUTE-

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.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 884; Pub. L. 86-368, Sec. 2(a),

Sept. 22, 1959, 73 Stat. 648; Pub. L. 94-455, title XIX, Sec.

1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.)

-MISC1-

AMENDMENTS

1976 - Pub. L. 94-455 struck out "or his delegate" after

"Secretary".

1959 - Pub. L. 86-368 substituted "Chief Counsel for the Internal

Revenue Service or his delegate" for "Assistant General Counsel of

the Treasury Department serving as Chief Counsel of the Internal

Revenue Service, or the delegate of such Chief Counsel,".

EFFECTIVE DATE OF 1959 AMENDMENT

Amendment by Pub. L. 86-368 effective when Chief Counsel for

Internal Revenue Service first appointed pursuant to amendment of

section 7801 of this title by Pub. L. 86-368 qualifies and takes

office, see section 3 of Pub. L. 86-368, set out as a note under

section 7801 of this title.

-End-

-CITE-

26 USC Sec. 7453 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 76 - JUDICIAL PROCEEDINGS

Subchapter C - The Tax Court

PART II - PROCEDURE

-HEAD-

Sec. 7453. Rules of practice, procedure, and evidence

-STATUTE-

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 rules of evidence applicable

in trials without a jury in the United States District Court of the

District of Columbia.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 884; Pub. L. 91-172, title IX,

Sec. 960(f), Dec. 30, 1969, 83 Stat. 734; Pub. L. 105-34, title

XIV, Sec. 1454(b)(3), Aug. 5, 1997, 111 Stat. 1057.)

-MISC1-

AMENDMENTS

1997 - Pub. L. 105-34 substituted "section 7436(c) or 7463" for

"section 7463".

1969 - Pub. L. 91-172 inserted reference to the exception in the

case of proceedings conducted under section 7463 of this title.

EFFECTIVE DATE OF 1969 AMENDMENT

Amendment by Pub. L. 91-172 effective one year after Dec. 30,

1969, see section 962(e) of Pub. L. 91-172, set out as an Effective

Date note under section 7463 of this title.

TAX COURT RULE MAKING NOT AFFECTED

Authority of Tax Court to prescribe rules under this section

unaffected by amendments of title IV of Pub. L. 100-702, see

section 405 of Pub. L. 100-702, set out as a note under section

2071 of Title 28, Judiciary and Judicial Procedure.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 6110, 7436, 7463 of this

title.

-End-

-CITE-

26 USC Sec. 7454 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 76 - JUDICIAL PROCEEDINGS

Subchapter C - The Tax Court

PART II - PROCEDURE

-HEAD-

Sec. 7454. Burden of proof in fraud, foundation manager, and

transferee cases

-STATUTE-

(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),,(!1) 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).

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 884; Pub. L. 91-172, title I,

Sec. 101(j)(57), Dec. 30, 1969, 83 Stat. 532; Pub. L. 94-455, title

XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L.

95-227, Sec. 4(d)(7), Feb. 10, 1978, 92 Stat. 23; Pub. L. 96-222,

title I, Sec. 108(b)(3)(B), Apr. 1, 1980, 94 Stat. 226; Pub. L.

100-203, title X, Secs. 10712(c)(6), 10714(b), Dec. 22, 1987, 101

Stat. 1330-467, 1330-471; Pub. L. 104-168, title XIII, Sec.

1311(c)(5), July 30, 1996, 110 Stat. 1478; Pub. L. 104-188, title

I, Sec. 1704(t)(43), Aug. 20, 1996, 110 Stat. 1889.)

-MISC1-

AMENDMENTS

1996 - Subsec. (b). Pub. L. 104-188 substituted "section

4955(f)(2)" for "section 4955(e)(2)".

Pub. L. 104-168 inserted "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))," after

"section 4912(b),".

1987 - Subsec. (b). Pub. L. 100-203, Sec. 10714(b), substituted

", 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), the

burden of proof" for "the burden of proof".

Pub. L. 100-203, Sec. 10712(c)(6), substituted "or whether an

organization manager (as defined in section 4955(e)(2)) has

'knowingly' agreed to the making of a political expenditure (within

the meaning of section 4955), the burden of proof" for "the burden

of proof".

1980 - Subsec. (b). Pub. L. 96-222 substituted "section

501(c)(21)" for "section 502(c)(21)".

1978 - Subsec. (b). Pub. L. 95-227 inserted provision relating to

trustees of a trust described under section 502(c)(21) of this

title.

1976 - Subsecs. (a), (b). Pub. L. 94-455 struck out "or his

delegate" after "Secretary".

1969 - Pub. L. 91-172 inserted ", foundation manager" in section

catchline.

Subsecs (b), (c). Pub. L. 91-172 added subsec. (b) and

redesignated former subsec. (b) as (c).

EFFECTIVE DATE OF 1996 AMENDMENT

Amendment by Pub. L. 104-168 applicable to excess benefit

transactions occurring on or after Sept. 14, 1995, and not

applicable to any benefit arising from a transaction pursuant to

any written contract which was binding on Sept. 13, 1995, and at

all times thereafter before such transaction occurred, see section

1311(d)(1), (2) of Pub. L. 104-168, set out as a note under section

4955 of this title.

EFFECTIVE DATE OF 1987 AMENDMENT

Amendment by section 10712(c)(6) of Pub. L. 100-203 applicable to

taxable years beginning after Dec. 22, 1987, see section 10712(d)

of Pub. L. 100-203, set out as an Effective Date note under section

4955 of this title.

Amendment by section 10714(b) of Pub. L. 100-203 applicable to

taxable years beginning after Dec. 22, 1987, see section 10714(e)

of Pub. L. 100-203, set out as an Effective Date note under section

4912 of this title.

EFFECTIVE DATE OF 1980 AMENDMENT

Amendment by Pub. L. 96-222 effective as if included in the

provisions of the Black Lung Benefits Revenue Act of 1977, Pub. L.

95-227, see section 108(b)(4) of Pub. L. 96-222, set out as a note

under section 192 of this title.

EFFECTIVE DATE OF 1978 AMENDMENT

Amendment by Pub. L. 95-227 applicable with respect to

contributions, acts, and expenditures made after Dec. 31, 1977, in

and for taxable years beginning after such date, see section 4(f)

of Pub. L. 95-227, set out as an Effective Date note under section

192 of this title.

EFFECTIVE DATE OF 1969 AMENDMENT

Amendment by Pub. L. 91-172 effective Jan. 1, 1970, see section

101(k)(1) of Pub. L. 91-172, set out as an Effective Date note

under section 4940 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 162 of this title.

-FOOTNOTE-

(!1) So in original.

-End-

-CITE-

26 USC Sec. 7455 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 76 - JUDICIAL PROCEEDINGS

Subchapter C - The Tax Court

PART II - PROCEDURE

-HEAD-

Sec. 7455. Service of process

-STATUTE-

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.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 884; Pub. L. 85-866, title I,

Sec. 89(b), Sept. 2, 1958, 72 Stat. 1665.)

-MISC1-

AMENDMENTS

1958 - Pub. L. 85-866 inserted "certified mail or" before

"registered mail".

EFFECTIVE DATE OF 1958 AMENDMENT

Amendment by Pub. L. 85-866 applicable only if mailing occurs

after Sept. 2, 1958, see section 89(d) of Pub. L. 85-866, set out

as a note under section 7502 of this title.

-End-

-CITE-

26 USC Sec. 7456 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 76 - JUDICIAL PROCEEDINGS

Subchapter C - The Tax Court

PART II - PROCEDURE

-HEAD-

Sec. 7456. Administration of oaths and procurement of testimony

-STATUTE-

(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.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 885; Pub. L. 91-172, title IX,

Secs. 956, 958, Dec. 30, 1969, 83 Stat. 732, 734; Pub. L. 94-455,

title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub.

L. 95-600, title III, Sec. 336(b)(1), title V, Sec. 502(c), Nov. 6,

1978, 92 Stat. 2841, 2879; Pub. L. 96-222, title I, Sec.

105(a)(1)(B), Apr. 1, 1980, 94 Stat. 218; Pub. L. 97-164, title I,

Sec. 153(a), Apr. 2, 1982, 96 Stat. 47; Pub. L. 97-248, title IV,

Sec. 402(c)(13), Sept. 3, 1982, 96 Stat. 668; Pub. L. 97-362, title

I, Sec. 106(c), Oct. 25, 1982, 96 Stat. 1730; Pub. L. 98-369, div.

A, title IV, Secs. 463(a), 464(a)-(c), July 18, 1984, 98 Stat. 824;

Pub. L. 99-514, title XV, Secs. 1555(a), 1556(b)(1), Oct. 22, 1986,

100 Stat. 2754, 2755.)

-MISC1-

AMENDMENTS

1986 - Subsec. (c). Pub. L. 99-514, Sec. 1556(b)(1), redesignated

subsec. (e) as (c). Former subsec. (c), which provided for the

appointment of special trial judges, was struck out.

Pub. L. 99-514, Sec. 1555(a), inserted last sentence.

Subsec. (d). Pub. L. 99-514, Sec. 1556(b)(1), struck out subsec.

(d) which set out proceedings which could be assigned to special

trial judges appointed under former subsec. (c).

Subsec. (e). Pub. L. 99-514, Sec. 1556(b)(1), redesignated

subsec. (e) as (c).

1984 - Subsec. (a). Pub. L. 98-369, Sec. 464(a), substituted

"special trial judge" for "commissioner" in three places.

Subsec. (c). Pub. L. 98-369, Sec. 464(b), substituted "Special

trial judges" for "Commissioners" in heading, and in text

substituted "special trial judges" for "commissioners" and "special

trial judge" for "commissioner".

Subsec. (d). Pub. L. 98-369, Sec. 464(c), substituted "Special

trial judges" for "Commissioners" in heading, and substituted

"special trial judges" for "commissioners" and "special trial

judge" for "commissioner" in provisions following par. (4).

Pub. L. 98-369, Sec. 463(a), in amending subsec. (d) generally,

struck out "and" at end of par. (2), substituted "any proceeding"

for "any other proceeding" and "$10,000; and" for "$5,000," in par.

(3), added par. (4), and substituted "any proceeding described in

paragraph (1), (2), or (3), subject to such conditions and review

as the court may provide" for "any such proceeding, subject to such

conditions and review as the court may by rule provide" in

provisions following par. (4).

1982 - Subsec. (c). Pub. L. 97-362, Sec. 106(c)(2), struck out

provision that the chief judge may assign proceedings under

sections 6226, 6228(a), 7428, 7463, 7476, 7477, and 7478 to be

heard by the commissioners of the court, and that the court may

authorize a commissioner to make the decision of the court with

respect to such proceedings, subject to such conditions and review

as the court may by rule provide. See subsec. (d) of this section.

Pub. L. 97-248 inserted "6226, 6228(a)," after "proceedings under

sections".

Pub. L. 97-164 substituted "Each commissioner shall receive pay

at an annual rate determined under section 225 of the Federal

Salary Act of 1967 (2 U.S.C. 351-361), as adjusted by section 461

of title 28, United States Code, and also necessary traveling

expenses and per diem allowances, as provided in subchapter I of

chapter 57 of title 5, United States Code, while traveling on

official business and away from Washington, District of Columbia"

for "Each commissioner shall receive the same compensation and

travel and subsistence allowances provided by law for commissioners

of the United States Court of Claims".

Subsecs. (d), (e). Pub. L. 97-362, Sec. 106(c)(1), added subsec.

(d) and redesignated former subsec. (d) as (e).

1980 - Subsec. (c). Pub. L. 96-222 substituted "sections 7428,

7463" for "sections 7428".

1978 - Subsec. (a). Pub. L. 95-600, Sec. 502(c), substituted "any

judge or commissioner of the Tax Court" for "any judge of the Tax

Court" wherever appearing, and "by the judge or commissioner" for

"by the judge" after "and signed".

Subsec. (c). Pub. L. 95-600, Sec. 336(b)(1), inserted provision

that the chief judge may assign proceedings under sections 7428,

7476, 7477, and 7478 to be heard by the commissioners of the court,

and the court may authorize a commissioner to make the decision of

the court with respect to such proceedings, subject to such

conditions and review as the court may by rule provide.

1976 - Subsec. (b). Pub. L. 94-455 struck out "or his delegate"

after "Secretary" wherever appearing.

1969 - Subsec. (c). Pub. L. 91-172, Sec. 958, provided that

commissioners be compensated at rates identical to those of

commissioners of the United States Court of Claims, and substituted

provisions authorizing the chief judge of the Tax Court to appoint

Commissioners for provisions authorizing attorneys from the legal

staff of the Tax Court to act as Commissioners.

Subsec. (d). Pub. L. 91-172, Sec. 956, added subsec. (d).

EFFECTIVE DATE OF 1986 AMENDMENT

Section 1555(b) of Pub. L. 99-514 provided that: "The amendment

made by this section [amending this section] shall take effect on

the date of the enactment of this Act [Oct. 22, 1986]."

Amendment by section 1556(b)(1) of Pub. L. 99-514 effective Oct.

22, 1986, except as otherwise provided, see section 1556(c) of Pub.

L. 99-514, set out as an Effective Date note under section 7443A of

this title.

EFFECTIVE DATE OF 1984 AMENDMENT

Section 463(b) of Pub. L. 98-369 provided that: "The amendment

made by subsection (a) [amending this section] shall take effect as

if enacted as part of the Miscellaneous Revenue Act of 1982 [Pub.

L. 97-362]."

Section 464(e)(1) of Pub. L. 98-369 provided that: "The

amendments made by this section [amending this section and section

7471 of this title and enacting provisions set out below] shall

take effect on the date of the enactment of this Act [July 18,

1984]."

EFFECTIVE DATE OF 1982 AMENDMENTS

Amendment by Pub. L. 97-248 applicable to partnership taxable

years beginning after Sept. 3, 1982, with provision for the

applicability of the amendment to any partnership taxable year

ending after Sept. 3, 1982, if the partnership, each partner, and

each indirect partner requests such application and the Secretary

of the Treasury or his delegate consents to such application, see

section 407(a)(1), (3) of Pub. L. 97-248, set out as an Effective

Date note under section 6221 of this title.

Amendment by Pub. L. 97-164 effective Oct. 1, 1982, see section

402 of Pub. L. 97-164, set out as a note under section 171 of Title

28, Judiciary and Judicial Procedure.

EFFECTIVE DATE OF 1980 AMENDMENT

Section 105(b)(1) of Pub. L. 96-222 provided that: "The

amendments made by subsection (a)(1) [amending this section and

section 7463 of this title] shall take effect on the date of the

enactment of this Act [Apr. 1, 1980]."

EFFECTIVE DATE OF 1978 AMENDMENT

Amendment by section 336(b)(1) of Pub. L. 95-600 applicable to

requests for determinations made after Dec. 31, 1978, see section

336(d) of Pub. L. 95-600, set out as an Effective Date note under

section 7478 of this title.

Amendment by section 502(c) of Pub. L. 95-600 effective Nov. 6,

1978, see section 502(d)(2) of Pub. L. 95-600, set out as a note

under section 7463 of this title.

EFFECTIVE DATE OF 1969 AMENDMENT

Amendment by Pub. L. 91-172 effective Dec. 30, 1969, see section

962(a) of Pub. L. 91-172, set out as a note under section 7441 of

this title.

REFERENCES TO COMMISSIONERS DEEMED REFERENCES TO SPECIAL TRIAL

JUDGES

Section 464(e)(2) of Pub. L. 98-369 provided that: "Any reference

in any law to a commissioner of the Tax Court shall be treated as a

reference to a special trial judge of the Tax Court."

COMMISSIONERS' SALARIES PENDING CHANGES UNDER FEDERAL SALARY ACT

Section 153(b) of Pub. L. 97-164, as amended by Pub. L. 99-514,

Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:

"Notwithstanding the amendment made by subsection (a) [amending

this section], until such time as a change in the salary rate of a

commissioner of the United States Tax Court occurs in accordance

with section 7456(c) of the Internal Revenue Code of 1986 [formerly

I.R.C. 1954], the salary of such commissioner shall be equal to the

salary of a commissioner of the Court of Claims immediately prior

to the effective date of this Act [Oct. 1, 1982]."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 7457 of this title.

-End-

-CITE-

26 USC Sec. 7457 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 76 - JUDICIAL PROCEEDINGS

Subchapter C - The Tax Court

PART II - PROCEDURE

-HEAD-

Sec. 7457. Witness fees

-STATUTE-

(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.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 886; Pub. L. 94-455, title XIX,

Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.)

-MISC1-

AMENDMENTS

1976 - Subsec. (b)(1). Pub. L. 94-455 struck out "or his

delegate" after "Secretary" wherever appearing.

-End-

-CITE-

26 USC Sec. 7458 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 76 - JUDICIAL PROCEEDINGS

Subchapter C - The Tax Court

PART II - PROCEDURE

-HEAD-

Sec. 7458. Hearings

-STATUTE-

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.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 886; Pub. L. 94-455, title XIX,

Sec. 1906(b)(13)(A), (L), Oct. 4, 1976, 90 Stat. 1834, 1835.)

-MISC1-

AMENDMENTS

1976 - Pub. L. 94-455 struck out "or his delegate" after

"Secretary" and struck out "nor his delegate" after "nor the

Secretary".

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 6110 of this title.

-End-

-CITE-

26 USC Sec. 7459 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 76 - JUDICIAL PROCEEDINGS

Subchapter C - The Tax Court

PART II - PROCEDURE

-HEAD-

Sec. 7459. Reports and decisions

-STATUTE-

(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 6226, 6228(a),(!1) 6247, or 6252, 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 (44 Stat. 9), continue to be

prima facie evidence of the facts therein stated.

(g) Penalty

For penalty for taxpayer instituting proceedings before Tax

Court merely for delay, see section 6673.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 886; Pub. L. 93-406, title II,

Sec. 1041(b)(2), Sept. 2, 1974, 88 Stat. 950; Pub. L. 94-455, title

XIII, Sec. 1306(b)(2), title XIX, Sec. 1906(b)(13)(A), Oct. 4,

1976, 90 Stat. 1719, 1834; Pub. L. 97-248, title IV, Sec.

402(c)(14), Sept. 3, 1982, 96 Stat. 668; Pub. L. 97-362, title I,

Sec. 106(b), Oct. 25, 1982, 96 Stat. 1730; Pub. L. 105-34, title

XII, Secs. 1222(b)(2), 1239(e)(1), Aug. 5, 1997, 111 Stat. 1019,

1028.)

-REFTEXT-

REFERENCES IN TEXT

The Revenue Act of 1926, referred to in subsec. (f), is act Feb.

26, 1926, ch. 27, 44 Stat. 9. For complete classification of this

Act to the Code, see Tables.

-MISC1-

AMENDMENTS

1997 - Subsec. (c). Pub. L. 105-34, Sec. 1239(e)(1), which

directed the amendment of subsec. (c) by substituting ", 6228(a),

or 6234(c)" for "or section 6228(a)" could not be executed because

the words "or section 6228(a)" did not appear in text subsequent to

amendment by Pub. L. 105-34, Sec. 1222(b)(2). See below.

Pub. L. 105-34, Sec. 1222(b)(2), substituted ", 6228(a), 6247, or

6252" for "or section 6228(a)".

1982 - Subsec. (b). Pub. L. 97-362 inserted provision that

subject to such conditions as the Tax Court may by rule provide,

the requirements of subsec. (b) and of section 7460 of this title

are met if findings of fact or opinion are stated orally and

recorded in the transcript of the proceedings.

Subsec. (c). Pub. L. 97-248 inserted "or in the case of an action

brought under section 6226 or section 6228(a)" after "or under

section 7428".

1976 - Subsec. (c). Pub. L. 94-455 inserted "or under section

7428" after "under part IV of this subchapter" and struck out "or

his delegate" after "Secretary".

Subsec. (d). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck out "or

his delegate" after "Secretary".

1974 - Subsec. (c). Pub. L. 93-406 inserted "or, in the case of a

declaratory judgment proceeding under part IV of this subchapter,

the date of the court's order entering the decision" after

"deficiency is entered in the records of the Tax Court".

EFFECTIVE DATE OF 1997 AMENDMENT

Amendment by section 1222(b)(2) of Pub. L. 105-34 applicable to

partnership taxable years beginning after Dec. 31, 1997, see

section 1226 of Pub. L. 105-34, as amended, set out as a note under

section 6011 of this title.

Amendment by section 1239(e)(1) of Pub. L. 105-34 applicable to

partnership taxable years ending after Aug. 5, 1997, see section

1239(f) of Pub. L. 105-34, set out as a note under section 6225 of

this title.

EFFECTIVE DATE OF 1982 AMENDMENT

Amendment by Pub. L. 97-248 applicable to partnership taxable

years beginning after Sept. 3, 1982, with provision for the

applicability of the amendment to any partnership taxable year

ending after Sept. 3, 1982, if the partnership, each partner, and

each indirect partner requests such application and the Secretary

of the Treasury or his delegate consents to such application, see

section 407(a)(1), (3) of Pub. L. 97-248, set out as an Effective

Date note under section 6221 of this title.

EFFECTIVE DATE OF 1976 AMENDMENT

Amendment by section 1306(b)(2) of Pub. L. 94-455 applicable with

respect to pleadings filed with the United States Tax Court, the

district court of the United States for the District of Columbia,

or the United States Court of Claims more than 6 months after Oct.

4, 1976 but only with respect to determinations (or requests for

determinations) made after Jan. 1, 1976, see section 1306(c) of

Pub. L. 94-455, set out as an Effective Date note under section

7428 of this title.

EFFECTIVE DATE OF 1974 AMENDMENT

Amendment by Pub. L. 93-406 applicable to pleadings filed more

than one year after Sept. 2, 1974, see section 1041(d) of Pub. L.

93-406, set out as an Effective Date note under section 7476 of

this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 6215, 7463 of this title.

-FOOTNOTE-

(!1) See 1997 Amendment note below.

-End-

-CITE-

26 USC Sec. 7460 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 76 - JUDICIAL PROCEEDINGS

Subchapter C - The Tax Court

PART II - PROCEDURE

-HEAD-

Sec. 7460. Provisions of special application to divisions

-STATUTE-

(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.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 887.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 7459, 7463 of this title.

-End-

-CITE-

26 USC Sec. 7461 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 76 - JUDICIAL PROCEEDINGS

Subchapter C - The Tax Court

PART II - PROCEDURE

-HEAD-

Sec. 7461. Publicity of proceedings

-STATUTE-

(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.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 887; Pub. L. 94-455, title XIX,

Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 98-369,

div. A, title IV, Sec. 465(a), July 18, 1984, 98 Stat. 825.)

-MISC1-

AMENDMENTS

1984 - Pub. L. 98-369, in amending section generally, designated

existing provisions as subsecs. (a) and (b)(2), added subsec.

(b)(1), and in subsec. (b)(2), as so designated, struck out

reference to the Secretary's delegate.

1976 - Pub. L. 94-455 struck out "or his delegate" after

"Secretary".

EFFECTIVE DATE OF 1984 AMENDMENT

Section 465(b) of Pub. L. 98-369 provided that: "The amendment

made by subsection (a) [amending this section] shall take effect on

the date of the enactment of this Act [July 18, 1984]."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 6110 of this title.

-End-

-CITE-

26 USC Sec. 7462 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 76 - JUDICIAL PROCEEDINGS

Subchapter C - The Tax Court

PART II - PROCEDURE

-HEAD-

Sec. 7462. Publication of reports

-STATUTE-

The Tax Court shall provide for the publication of its reports at

the Government Printing 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.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 887.)

-End-

-CITE-

26 USC Sec. 7463 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 76 - JUDICIAL PROCEEDINGS

Subchapter C - The Tax Court

PART II - PROCEDURE

-HEAD-

Sec. 7463. Disputes involving $50,000 or less

-STATUTE-

(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 chapter 11,

(3) $50,000 for any one calendar year, in the case of the tax

imposed by chapter 12, or

(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 chapter 68, to the extent that the procedures

described in subchapter B of chapter 63 apply.

(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, and

(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.

-SOURCE-

(Added Pub. L. 91-172, title IX, Sec. 957(a), Dec. 30, 1969, 83

Stat. 733; amended Pub. L. 92-512, title II, Sec. 203(b)(1), (2),

Oct. 20, 1972, 86 Stat. 945; Pub. L. 94-455, title XIX, Sec.

1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 95-600, title

V, Sec. 502(a)(1), (2)(A), (b), Nov. 6, 1978, 92 Stat. 2879; Pub.

L. 96-222, title I, Sec. 105(a)(1)(A), Apr. 1, 1980, 94 Stat. 218;

Pub. L. 97-362, title I, Sec. 106(a)(1), Oct. 25, 1982, 96 Stat.

1730; Pub. L. 98-369, div. A, title IV, Sec. 461(a)(1), (2)(A),

July 18, 1984, 98 Stat. 823; Pub. L. 101-508, title XI, Sec.

11801(c)(21)(B), Nov. 5, 1990, 104 Stat. 1388-528; Pub. L. 105-206,

title III, Sec. 3103(a), July 22, 1998, 112 Stat. 731; Pub. L.

106-554, Sec. 1(a)(7) [title III, Sec. 313(b)(1)], Dec. 21, 2000,

114 Stat. 2763, 2763A-642.)

-MISC1-

PRIOR PROVISIONS

A prior section 7463 was renumbered section 7465 of this title.

AMENDMENTS

2000 - Subsec. (f). Pub. L. 106-554 added subsec. (f).

1998 - Pub. L. 105-206 in section catchline and in subsec. (a)(1)

to (4) substituted "$50,000" for "$10,000".

1990 - Subsec. (f). Pub. L. 101-508 struck out subsec. (f)

"Qualified State individual income taxes" which read as follows:

"For purposes of this section, a deficiency placed in dispute or

claimed overpayment with regard to a qualified State individual

income tax to which subchapter E of chapter 64 applies, for a

taxable year, shall be treated as a portion of a deficiency placed

in dispute or claimed overpayment of the income tax for that

taxable year."

1984 - Pub. L. 98-369, Sec. 461(a)(2)(A), substituted "$10,000"

for "$5,000" in section catchline.

Subsec. (a). Pub. L. 98-369, Sec. 461(a)(1), substituted

"$10,000" for "$5,000" in pars. (1) to (4).

1982 - Section (a)(4). Pub. L. 97-362 added par. (4).

1980 - Subsec. (g). Pub. L. 96-222 struck out subsec. (g) which

authorized the chief judge of the Tax Court to assign proceedings

conducted under this section to be heard by the Commissioners of

the court.

1978 - Pub. L. 95-600, Sec. 502(a)(2)(A), substituted "$5,000"

for "$1,500" in section catchline.

Subsec. (a). Pub. L. 95-600, Sec. 502(a)(1), "$5,000 for any one

taxable year, in the case of the taxes imposed by subtitle A" for

"$1,500 for any one taxable year, in the case of the taxes imposed

by subtitle A and chapter 12, or" in par. (1), "$5,000, in the case

of the tax imposed by chapter 11, or" for "$1,500 in the case of

the tax imposed by chapter 11," in par. (2), and added par. (3).

Subsec. (g). Pub. L. 95-600, Sec. 502(b), added subsec. (g).

1976 - Subsec, (d). Pub. L. 94-455 struck out "or his delegate"

after "Secretary".

1972 - Pub. L. 92-512, Sec. 203(b)(2), substituted "$1,500" for

"$1,000" in section catchline.

Subsec. (a)(1), (2). Pub. L. 92-512, Sec. 203(b)(2), substituted

"$1,500" for "$1,000".

Subsec. (f). Pub. L. 92-512, Sec. 203(b)(1), added subsec. (f).

EFFECTIVE DATE OF 1998 AMENDMENT

Amendment by Pub. L. 105-206 applicable to proceedings commenced

after July 22, 1998, see section 3103(c) of Pub. L. 105-206, set

out as a note under section 7436 of this title.

EFFECTIVE DATE OF 1984 AMENDMENT

Section 461(b) of Pub. L. 98-369 provided that: "The amendments

made by this section [amending this section] shall take effect on

the date of the enactment of this Act [July 18, 1984]."

EFFECTIVE DATE OF 1982 AMENDMENT

Section 106(a)(2) of Pub. L. 97-362 provided that: "The amendment

made by this subsection [amending this section] shall apply with

respect to petitions filed after the date of the enactment of this

Act [Oct. 25, 1982]."

EFFECTIVE DATE OF 1980 AMENDMENT

Amendment by Pub. L. 96-222 effective Apr. 1, 1980, see section

105(b)(1) of Pub. L. 96-222, set out as a note under section 7456

of this title.

EFFECTIVE DATE OF 1978 AMENDMENT

Section 502(d) of Pub. L. 95-600 provided that:

"(1) Subsection (a). - The amendments made by subsection (a)

[amending this section] shall take effect on the first day of the

first calendar month beginning more than 180 days after the date of

the enactment of this Act [Nov. 6, 1978].

"(2) Subsections (b) and (c). - The amendments made by subsection

(b) [amending this section] and (c) [amending section 7456 of this

title] shall take effect on the date of the enactment of this Act."

EFFECTIVE DATE OF 1972 AMENDMENT

Section 204 of title II of Pub. L. 92-512, as amended by Pub. L.

94-455, title XXI, Sec. 2116(a), Oct. 4, 1976, 90 Stat. 1910; Pub.

L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:

"(a) General Rule. - Except as provided in subsections (b) and

(c), the provisions of this title (and the amendments made thereby)

[enacting this section and sections 6362 and 6363 of this title and

amending this section and section 6405 of this title] shall take

effect on the date of the enactment of this Act [Oct. 20, 1972].

"(b) Collection and Administration of State Taxes by the United

States May Not Begin Before January 1, 1974. - Section 6361 of the

Internal Revenue Code of 1986 [formerly I.R.C. 1954] (as added by

section 202(a) of this Act) shall take effect on whichever of the

following is the later:

"(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) Jurisdiction of Tax Court in Disputes Involving $1,500 or

Less. - The amendments made by paragraphs (2) and (3) of section

203(b) of this Act [amending this section] shall take effect on

January 1, 1974."

EFFECTIVE DATE

Section 962(e) of Pub. L. 91-172 provided that: "The amendments

made by sections 957 [enacting this section] and 960(a), (b), (f),

and (i) [amending sections 6214, 6512, 7453, 7456, 7481, 7487, of

this title] shall take effect one year after the date of enactment

of this Act [Dec. 30, 1969]."

SAVINGS PROVISION

For provisions that nothing in amendment by Pub. L. 101-508 be

construed to affect treatment of certain transactions occurring,

property acquired, or items of income, loss, deduction, or credit

taken into account prior to Nov. 5, 1990, for purposes of

determining liability for tax for periods ending after Nov. 5,

1990, see section 11821(b) of Pub. L. 101-508, set out as a note

under section 29 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 6214, 6512, 7430, 7436,

7443A, 7453, 7481, 7487, 7526 of this title.

-End-

-CITE-

26 USC Sec. 7464 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 76 - JUDICIAL PROCEEDINGS

Subchapter C - The Tax Court

PART II - PROCEDURE

-HEAD-

Sec. 7464. Intervention by trustee of debtor's estate

-STATUTE-

The trustee of the debtor's estate in any case under title 11 of

the United States Code may intervene, on behalf of the debtor's

estate, in any proceeding before the Tax Court to which the debtor

is a party.

-SOURCE-

(Added Pub. L. 96-589, Sec. 6(c)(1), Dec. 24, 1980, 94 Stat. 3407.)

-MISC1-

PRIOR PROVISIONS

A prior section 7464 was renumbered section 7465 of this title.

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 Pub. L. 96-589, set out as an Effective Date of

1980 Amendment note under section 108 of this title.

-End-

-CITE-

26 USC Sec. 7465 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 76 - JUDICIAL PROCEEDINGS

Subchapter C - The Tax Court

PART II - PROCEDURE

-HEAD-

Sec. 7465. Provisions of special application to transferees

-STATUTE-

(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).

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 888, Sec. 7463; renumbered Sec.

7464, Pub. L. 91-172, title IX, Sec. 957(a), Dec. 30, 1969, 83

Stat. 733; renumbered Sec. 7465, Pub. L. 96-589, Sec. 6(c)(1), Dec.

24, 1980, 94 Stat. 3407.)

-End-

-CITE-

26 USC PART III - MISCELLANEOUS PROVISIONS 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 76 - JUDICIAL PROCEEDINGS

Subchapter C - The Tax Court

PART III - MISCELLANEOUS PROVISIONS

-HEAD-

PART III - MISCELLANEOUS PROVISIONS

-MISC1-

Sec.

7471. Employees.

7472. Expenditures.

7473. Disposition of fees.

7474. Fee for transcript of record.

7475. Practice fee.

AMENDMENTS

1988 - Pub. L. 100-647, title I, Sec. 1018(u)(45), Nov. 10, 1988,

102 Stat. 3592, added item 7475.

-End-

-CITE-

26 USC Sec. 7471 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 76 - JUDICIAL PROCEEDINGS

Subchapter C - The Tax Court

PART III - MISCELLANEOUS PROVISIONS

-HEAD-

Sec. 7471. Employees

-STATUTE-

(a) Appointment and compensation

The Tax Court is authorized to appoint, in accordance with the

provisions of title 5, United States Code, governing appointment in

the competitive service, and to fix the basic pay of, in accordance

with chapter 51 and subchapter III of chapter 53 of such title,

such employees as may be necessary efficiently to execute the

functions vested in the Tax Court.

(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

chapter 57 of title 5, United States Code.

(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.

-SOURCE-

(Aug. 6, 1954, ch. 736, 68A Stat. 888; Pub. L. 91-172, title IX,

Sec. 960(g), Dec. 30, 1969, 83 Stat. 734; Pub. L. 94-455, title

XIX, Sec. 1906(a)(47), Oct. 4, 1976, 90 Stat. 1831; Pub. L. 98-369,

div. A, title IV, Sec. 464(d), July 18, 1984, 98 Stat. 825; Pub. L.

99-514, title XV, Sec. 1556(b)(2), Oct. 22, 1986, 100 Stat. 2755.)

-REFTEXT-

REFERENCES IN TEXT

The provisions of title 5, United States Code, governing

appointment in the competitive service, referred to in subsec. (a),

are classified generally to section 3301 et seq. of Title 5,

Government Organization and Employees.

-MISC1-

AMENDMENTS

1986 - Subsec. (c). Pub. L. 99-514 substituted "subsections (d)

and (e) of section 7443A" for "section 7456(c)".

1984 - Subsec. (c). Pub. L. 98-369 substituted references to

special trial judges for references to commissioners in the

subsection heading and text.

1976 - Subsec. (a). Pub. L. 94-455, Sec. 1906(a)(47)(A), among

other changes, substituted provisions referring to title 5 of the

United States Code for provisions referring to the civil service

law, and to chapter 51 and subchapter III of chapter 53 of title 5

for the Classification Act of 1949.

Subsec. (b). Pub. L. 94-455, Sec. 1906(a)(47)(B), substituted "as

provided in chapter 57 of title 5, United States Code" for "as

provided in the Travel Expense Act of 1949 (63 Stat. 166; 5 U.S.C.

chapter 16)".

1969 - Subsec. (c). Pub. L. 91-172 inserted reference to the

compensation of commissioners.

EFFECTIVE DATE OF 1986 AMENDMENT

Amendment by Pub. L. 99-514 effective Oct. 22, 1986, except as

otherwise provided, see section 1556(c) of Pub. L. 99-514, set out

as an Effective Date note under section 7443A of this title.

EFFECTIVE DATE OF 1984 AMENDMENT

Amendment by Pub. L. 98-369 effective July 18, 1984, see section

464(e)(1) of Pub. L. 98-369, set out as a note under section 7456

of this title.

EFFECTIVE DATE OF 1976 AMENDMENT

Amendment by Pub. L. 94-455 effective on first day of first month

which begins more than 90 days after Oct. 4, 1976, see section

1906(d)(1) of Pub. L. 94-455, set out as a note under section 6013

of this title.

EFFECTIVE DATE OF 1969 AMENDMENT

Amendment by Pub. L. 91-172 effective Dec. 30, 1969, see section

962(a) of Pub. L. 91-172, set out as a note under section 7441 of

this title.

-End-

-CITE-

26 USC Sec. 7472 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 76 - JUDICIAL PROCEEDINGS

Subchapter C - The Tax Court

PART III - MISCELLANEOUS PROVISIONS

-HEAD-

Sec. 7472. Expenditures

-STATUTE-

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. Except as provided in section

7475, all expenditures of the Tax Court shall be allowed and paid,

out of any moneys appropriated for purposes of the Tax Court, upon

presentation of itemized vouchers therefor signed by the certifying

officer designated by the chief judge.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 888; Pub. L. 99-514, title XV,

Sec. 1553(b)(1), Oct. 22, 1986, 100 Stat. 2754.)

-MISC1-

AMENDMENTS

1986 - Pub. L. 99-514 substituted "Except as provided in section

7475, all" for "All" in second sentence.

EFFECTIVE DATE OF 1986 AMENDMENT

Amendment by Pub. L. 99-514 effective Jan. 1, 1987, see section

1553(c) of Pub. L. 99-514, set out as an Effective Date note under

section 7475 of this title.

-End-

-CITE-

26 USC Sec. 7473 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 76 - JUDICIAL PROCEEDINGS

Subchapter C - The Tax Court

PART III - MISCELLANEOUS PROVISIONS

-HEAD-

Sec. 7473. Disposition of fees

-STATUTE-

Except as provided in section 7475, all fees received by the Tax

Court shall be covered into the Treasury as miscellaneous receipts.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 888; Pub. L. 99-514, title XV,

Sec. 1553(b)(2), Oct. 22, 1986, 100 Stat. 2754.)

-MISC1-

AMENDMENTS

1986 - Pub. L. 99-514 substituted "Except as provided in section

7475, all" for "All".

EFFECTIVE DATE OF 1986 AMENDMENT

Amendment by Pub. L. 99-514 effective Jan. 1, 1987, see section

1553(c) of Pub. L. 99-514, set out as an Effective Date note under

section 7475 of this title.

-End-

-CITE-

26 USC Sec. 7474 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 76 - JUDICIAL PROCEEDINGS

Subchapter C - The Tax Court

PART III - MISCELLANEOUS PROVISIONS

-HEAD-

Sec. 7474. Fee for transcript of record

-STATUTE-

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.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 888.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 7487 of this title.

-End-

-CITE-

26 USC Sec. 7475 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 76 - JUDICIAL PROCEEDINGS

Subchapter C - The Tax Court

PART III - MISCELLANEOUS PROVISIONS

-HEAD-

Sec. 7475. Practice fee

-STATUTE-

(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.

-SOURCE-

(Added Pub. L. 99-514, title XV, Sec. 1553(a), Oct. 22, 1986, 100

Stat. 2754.)

-MISC1-

EFFECTIVE DATE

Section 1553(c) of Pub. L. 99-514 provided that: "The amendments

made by this section [enacting this section and amending sections

7472 and 7473 of this title] shall take effect on January 1, 1987."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 7472, 7473 of this title.

-End-

-CITE-

26 USC PART IV - DECLARATORY JUDGMENTS 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 76 - JUDICIAL PROCEEDINGS

Subchapter C - The Tax Court

PART IV - DECLARATORY JUDGMENTS

-HEAD-

PART IV - DECLARATORY JUDGMENTS

-MISC1-

Sec.

7476. Declaratory judgments relating to qualification of

certain retirement plans.

7477. Declaratory judgments relating to value of certain

gifts.

7478. Declaratory judgments relating to status of certain

governmental obligations.

7479. Declaratory judgments relating to eligibility of

estate with respect to installment payments under

section 6166.

AMENDMENTS

1997 - Pub. L. 105-34, title V, Secs. 505(b), 506(c)(2), Aug. 5,

1997, 111 Stat. 855, 856, added items 7477 and 7479.

1984 - Pub. L. 98-369, div. A, title I, Sec. 131(e)(2)(B), July

18, 1984, 98 Stat. 665, struck out item 7477 "Declaratory judgments

relating to transfers of property from the United States".

1978 - Pub. L. 95-600, title III, Sec. 336(c)(2), Nov. 6, 1978,

92 Stat. 2842, added item 7478.

1976 - Pub. L. 94-455, title X, Sec. 1042(d)(2)(D), (E), Oct. 4,

1976, 90 Stat. 1639, struck out in part heading "RELATING TO

QUALIFICATIONS OF CERTAIN RETIREMENT PLANS" after "DECLARATORY

JUDGMENTS", inserted "relating to qualification of certain

retirement plans" after "Declaratory judgments" in item 7476, and

added item 7477.

1974 - Pub. L. 93-406, title II, Sec. 1041(a), Sept. 2, 1974, 88

Stat. 949, added part heading and analysis of sections.

-SECREF-

PART REFERRED TO IN OTHER SECTIONS

This part is referred to in sections 7451, 7459 of this title.

-End-

-CITE-

26 USC Sec. 7476 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 76 - JUDICIAL PROCEEDINGS

Subchapter C - The Tax Court

PART IV - DECLARATORY JUDGMENTS

-HEAD-

Sec. 7476. Declaratory judgments relating to qualification of

certain retirement plans

-STATUTE-

(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 chapter 1, or

(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.

-SOURCE-

(Added Pub. L. 93-406, title II, Sec. 1041(a), Sept. 2, 1974, 88

Stat. 949; amended Pub. L. 94-455, title X, Sec. 1042(d)(2)(C),

title XIII, Sec. 1306(b)(3), title XIX, Secs. 1906(a)(48),

(b)(13)(A), Oct. 4, 1976, 90 Stat. 1639, 1719, 1831, 1834; Pub. L.

95-600, title III, Sec. 336(b)(2)(A), title VII, Sec. 701(dd)(1),

Nov. 6, 1978, 92 Stat. 2842, 2924; Pub. L. 98-369, div. A, title

IV, Sec. 491(d)(52), July 18, 1984, 98 Stat. 852; Pub. L. 99-514,

title XVIII, Sec. 1899A(59), Oct. 22, 1986, 100 Stat. 2962.)

-REFTEXT-

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 section 1201(c) of Title 29, Labor.

-MISC1-

AMENDMENTS

1986 - Subsec. (c). Pub. L. 99-514 substituted "plan, or" for

"plan,, or".

1984 - Subsec. (c)(3). Pub. L. 98-369 struck out par. (3) which

included a bond purchase plan described in section 405(a) within

the term "retirement plan".

1978 - Subsec. (a). Pub. L. 95-600, Sec. 701(dd)(1), inserted

provision relating to revocation of qualification.

Subsecs. (c) to (e). Pub. L. 95-600, Sec. 336(b)(2)(A),

redesignated subsecs. (d) and (e) as (c) and (d), respectively.

Former subsec. (c), which authorized the chief judge to assign

proceedings under this section or section 7428 to be heard by the

commissioners of the court, was struck out.

1976 - Pub. L. 94-455, Sec. 1042(d)(2)(C), inserted "relating to

qualification of certain retirement plans" after "Declaratory

judgments" in section catchline.

Subsec. (a). Pub. L. 94-455, Secs. 1906(a)(48), (b)(13)(A),

struck out "or his delegate" after "Secretary" wherever appearing,

and "United States" after "appropriate pleading, the" in provisions

following par. (2).

Subsec. (b). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck out in

pars. (1) to (3) and (5), "or his delegate" after "Secretary"

wherever appearing.

Subsec. (c). Pub. L. 94-455, Sec. 1306(b)(3), substituted "this

section or section 7428" for "this section".

EFFECTIVE DATE OF 1984 AMENDMENT

Amendment by Pub. L. 98-369 applicable to obligations issued

after Dec. 31, 1983, see section 491(f)(1) of Pub. L. 98-369, set

out as a note under section 62 of this title.

EFFECTIVE DATE OF 1978 AMENDMENT

Amendment by section 336(b)(2)(A) of Pub. L. 95-600 applicable to

requests for determinations made after Dec. 31, 1978, see section

336(d) of Pub. L. 95-600, set out as an Effective Date note under

section 7478 of this title.

Section 701(dd)(3) of Pub. L. 95-600, as amended by Pub. L.

99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that: "The

amendments made by paragraphs (1) and (2) [amending this section

and section 7428 of this title] shall take effect as if included in

section 7476 or 7428 of the Internal Revenue Code of 1986 [formerly

I.R.C. 1954] (as the case may be) at the respective times such

sections were added to such Code."

EFFECTIVE DATE OF 1976 AMENDMENT

Amendment by section 1042(d)(2)(C) of Pub. L. 94-455 applicable

to pleadings filed with the Tax Court after Oct. 4, 1976, but only

with respect to transfers beginning after Oct. 9, 1975, see section

1042(e)(1) of Pub. L. 94-455, set out as a note under section 367

of this title.

Amendment by section 1306(b)(3) of Pub. L. 94-455 applicable with

respect to pleadings filed with the United States Tax Court, the

district court of the United States for the District of Columbia,

or the United States Court of Claims more than 6 months after Oct.

4, 1976 but only with respect to determinations (or requests for

determinations) made after Jan. 1, 1976, see section 1306(c) of

Pub. L. 94-455, set out as an Effective Date note under section

7428 of this title.

Amendment by section 1906(a)(48), (b)(13)(A) of Pub. L. 94-455

effective on first day of first month which begins more than 90

days after Oct. 4, 1976, see section 1906(d)(1) of Pub. L. 94-455,

set out as a note under section 6013 of this title.

EFFECTIVE DATE

Section 1041(d) of Pub. L. 93-406 provided that: "The amendments

made by this section [enacting this section and amending sections

7451, 7459, and 7482 of this title] shall apply to pleadings filed

more than 1 year after the date of the enactment of this Act [Sept.

2, 1974]."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 7482 of this title; title

29 section 1201.

-End-

-CITE-

26 USC Sec. 7477 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 76 - JUDICIAL PROCEEDINGS

Subchapter C - The Tax Court

PART IV - DECLARATORY JUDGMENTS

-HEAD-

Sec. 7477. Declaratory judgments relating to value of certain gifts

-STATUTE-

(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 chapter 12 or disclosed on such return or in any

statement attached to such return, upon the filing of an

appropriate pleading, the Tax Court may make a declaration of the

value of such gift. 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 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.

-SOURCE-

(Added Pub. L. 105-34, title V, Sec. 506(c)(1), Aug. 5, 1997, 111

Stat. 855.)

-MISC1-

PRIOR PROVISIONS

A prior section 7477, added Pub. L. 94-455, title X, Sec.

1042(d)(1), Oct. 4, 1976, 90 Stat. 1637; amended Pub. L. 95-600,

title III, Sec. 336(b)(2)(B), Nov. 6, 1978, 92 Stat. 2842, provided

for declaratory judgments relating to transfers of property from

the United States, prior to repeal by Pub. L. 98-369, div. A, title

I, Sec. 131(e)(1), (g), July 18, 1984, 98 Stat. 664, 665,

applicable to transfers or exchanges after Dec. 31, 1984, in

taxable years ending after such date, with special rules for

certain transfers and ruling requests before Mar. 1, 1984.

EFFECTIVE DATE

Section applicable to gifts made after Aug. 5, 1997, see section

506(e)(1) of Pub. L. 105-34, set out as an Effective Date of 1997

Amendment note under section 2001 of this title.

-End-

-CITE-

26 USC Sec. 7478 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 76 - JUDICIAL PROCEEDINGS

Subchapter C - The Tax Court

PART IV - DECLARATORY JUDGMENTS

-HEAD-

Sec. 7478. Declaratory judgments relating to status of certain

governmental obligations

-STATUTE-

(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.

-SOURCE-

(Added Pub. L. 95-600, title III, Sec. 336(a), Nov. 6, 1978, 92

Stat. 2841; amended Pub. L. 100-647, title I, Sec. 1013(a)(42),

Nov. 10, 1988, 102 Stat. 3544.)

-MISC1-

AMENDMENTS

1988 - Subsec. (a). Pub. L. 100-647 substituted "whether interest

on prospective obligations will be excludable from gross income

under section 103(a)" for "whether prospective obligations are

described in section 103(a)" in par. (1) and "whether interest on

such prospective obligations will be excludable from gross income

under section 103(a)" for "whether such prospective obligations are

described in section 103(a)" in concluding provisions.

EFFECTIVE DATE OF 1988 AMENDMENT

Amendment by Pub. L. 100-647 effective, except as otherwise

provided, as if included in the provision of the Tax Reform Act of

1986, Pub. L. 99-514, to which such amendment relates, see section

1019(a) of Pub. L. 100-647, set out as a note under section 1 of

this title.

EFFECTIVE DATE

Section 336(d) of Pub. L. 95-600 provided that: "The amendments

made by this section [enacting this section and amending sections

7456, 7476, 7477, and 7482 of this title] shall apply to requests

for determinations made after December 31, 1978."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 7482 of this title.

-End-

-CITE-

26 USC Sec. 7479 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 76 - JUDICIAL PROCEEDINGS

Subchapter C - The Tax Court

PART IV - DECLARATORY JUDGMENTS

-HEAD-

Sec. 7479. Declaratory judgments relating to eligibility of estate

with respect to installment payments under section 6166

-STATUTE-

(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.

-SOURCE-

(Added Pub. L. 105-34, title V, Sec. 505(a), Aug. 5, 1997, 111

Stat. 854; amended Pub. L. 105-206, title III, Sec. 3104(b), title

VI, Sec. 6007(d), July 22, 1998, 112 Stat. 732, 809.)

-MISC1-

AMENDMENTS

1998 - Subsec. (a)(1), (2). Pub. L. 105-206, Sec. 6007(d),

substituted "an estate (or with respect to any property included

therein)," for "an estate,".

Subsec. (c). Pub. L. 105-206, Sec. 3104(b), added subsec. (c).

EFFECTIVE DATE OF 1998 AMENDMENT

Amendment by section 3104(b) of Pub. L. 105-206 applicable to any

claim for refund filed after July 22, 1998, see section 3104(c) of

Pub. L. 105-206, set out as a note under section 7422 of this

title.

Amendment by section 6007(d) of Pub. L. 105-206 effective, except

as otherwise provided, as if included in the provisions of the

Taxpayer Relief Act of 1997, Pub. L. 105-34, to which such

amendment relates, see section 6024 of Pub. L. 105-206, set out as

a note under section 1 of this title.

EFFECTIVE DATE

Section 505(c) of Pub. L. 105-34 provided that: "The amendments

made by this section [enacting this section] shall apply to the

estates of decedents dying after the date of the enactment of this

Act [Aug. 5, 1997]."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 7422 of this title.

-End-

-CITE-

26 USC Subchapter D - Court Review of Tax Court Decisions 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 76 - JUDICIAL PROCEEDINGS

Subchapter D - Court Review of Tax Court Decisions

-HEAD-

SUBCHAPTER D - COURT REVIEW OF TAX COURT DECISIONS

-MISC1-

Sec.

7481. Date when Tax Court decision becomes final.

7482. Courts of review.

7483. Notice of appeal.

7484. Change of incumbent in office.

7485. Bond to stay assessment and collection.

7486. Refund, credit, or abatement of amounts disallowed.

7487. Cross references.

AMENDMENTS

1969 - Pub. L. 91-172, title IX, Secs. 959(b), 960(i)(2), Dec.

30, 1969, 83 Stat. 734, 735, substituted "Notice of appeal" for

"Petition for review" in item 7483 and substituted "Cross

references" for "Cross reference" in item 7487.

-SECREF-

SUBCHAPTER REFERRED TO IN OTHER SECTIONS

This subchapter is referred to in section 6406 of this title.

-End-

-CITE-

26 USC Sec. 7481 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 76 - JUDICIAL PROCEEDINGS

Subchapter D - Court Review of Tax Court Decisions

-HEAD-

Sec. 7481. Date when Tax Court decision becomes final

-STATUTE-

(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 chapter

11 is extended under section 6166, and

(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.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 889; Pub. L. 91-172, title IX,

Sec. 960(h)(1), Dec. 30, 1969, 83 Stat. 734; Pub. L. 94-455, title

XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L.

100-647, title VI, Secs. 6246(a), (b)(2), 6247(a), (b)(2), Nov. 10,

1988, 102 Stat. 3751, 3752; Pub. L. 105-34, title XIV, Secs.

1452(a), 1454(b)(3), Aug. 5, 1997, 111 Stat. 1054, 1057.)

-MISC1-

AMENDMENTS

1997 - Subsec. (b). Pub. L. 105-34, Sec. 1454(b)(3), substituted

"section 7436(c) or 7463" for "section 7463".

Subsec. (c). Pub. L. 105-34, Sec. 1452(a), reenacted heading

without change and amended text generally. Prior to amendment, text

read as follows: "Notwithstanding subsection (a), if -

"(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). Pub. L. 100-647, Sec. 6247(b)(2), substituted

"subsections (b), (c), and (d)" for "subsections (b) and (c)".

Pub. L. 100-647, Sec. 6246(b)(2), substituted "subsections (b)

and (c)" for "subsection (b)".

Subsec. (c). Pub. L. 100-647, Sec. 6246(a), added subsec. (c).

Subsec. (d). Pub. L. 100-647, Sec. 6247(a), added subsec. (d).

1976 - Subsecs. (a)(3)(A), (B)(iii). Pub. L. 94-455 struck out

"or his delegate" after "Secretary".

1969 - Pub. L. 91-172 designated existing provisions as subsec.

(a), inserted reference to the exception provided for in subsec.

(b), substituted "notice of appeal" for "petition for review" in

par. (1), and substituted references to dismissal of appeal for

references to dismissal of petition for review in par. (2), and

added subsec. (b).

EFFECTIVE DATE OF 1997 AMENDMENT

Section 1452(b) of Pub. L. 105-34 provided that: "The amendment

made by this section [amending this section] shall take effect on

the date of the enactment of this Act [Aug. 5, 1997]."

Amendment by section 1454(b)(3) of Pub. L. 105-34 effective Aug.

5, 1997, see section 1454(c) of Pub. L. 105-34, set out as a note

under section 6511 of this title.

EFFECTIVE DATE OF 1988 AMENDMENT

Amendment by section 6246(a), (b)(2) of Pub. L. 100-647

applicable to assessments of deficiencies redetermined by the Tax

Court made after Nov. 10, 1988, see section 6246(c) of Pub. L.

100-647, set out as a note under section 6512 of this title.

Amendment by section 6247(a), (b)(2) of Pub. L. 100-647 effective

with respect to Tax Court cases for which the decision is not final

on Nov. 10, 1988, see section 6247(c) of Pub. L. 100-647, set out

as a note under section 6512 of this title.

EFFECTIVE DATE OF 1969 AMENDMENT

Amendment by Pub. L. 91-172 effective 30 days after Dec. 30,

1969, see section 962(f) of Pub. L. 91-172, set out as a note under

section 7483 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 6214, 6230, 6255, 6512,

7428, 7436 of this title.

-End-

-CITE-

26 USC Sec. 7482 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 76 - JUDICIAL PROCEEDINGS

Subchapter D - Court Review of Tax Court Decisions

-HEAD-

Sec. 7482. Courts of review

-STATUTE-

(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 section 1254 of Title 28 of the United

States Code, in the same manner and to the same extent as

decisions of the district courts in civil actions tried without a

jury; and the judgment of any such court shall be final, except

that it shall be subject to review by the Supreme Court of the

United States upon certiorari, in the manner provided in section

1254 of Title 28 of the United States Code.

(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 6226, 6228(a),

6247, or 6252, the principal place of business of the

partnership, or

(F) in the case of a petition under section 6234(c) -

(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.

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 6226, 6228(a), or 6234(c), 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 section 2072 of title 28 of

the United States Code.

(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.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 890; Pub. L. 89-713, Sec. 3(c),

Nov. 2, 1966, 80 Stat. 1109; Pub. L. 91-172, title IX, Sec.

960(h)(2), Dec. 30, 1969, 83 Stat 735; Pub. L. 93-406, title II,

Sec. 1041(b)(3), Sept. 2, 1974, 88 Stat. 950; Pub. L. 94-455, title

X, Sec. 1042(d)(2)(A), (B), title XIII, Sec. 1306(b)(4), (5), title

XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1638, 1639, 1719,

1834; Pub. L. 95-600, title III, Sec. 336(c)(1), Nov. 6, 1978, 92

Stat. 2842; Pub. L. 97-164, title I, Sec. 154, Apr. 2, 1982, 96

Stat. 47; Pub. L. 97-248, title IV, Sec. 402(c)(15), Sept. 3, 1982,

96 Stat. 668; Pub. L. 98-369, div. A, title I, Sec. 131(e)(2)(A),

July 18, 1984, 98 Stat. 665; Pub. L. 99-514, title XV, Sec.

1558(a), (b), title XVIII, Secs. 1810(g)(2), 1899A(60), Oct. 22,

1986, 100 Stat. 2757, 2758, 2828, 2962; Pub. L. 100-647, title VI,

Sec. 6243(b), Nov. 10, 1988, 102 Stat. 3750; Pub. L. 101-239, title

VII, Sec. 7731(b), Dec. 19, 1989, 103 Stat. 2401; Pub. L. 105-34,

title XII, Secs. 1222(b)(3), 1239(d), Aug. 5, 1997, 111 Stat. 1019,

1028.)

-MISC1-

AMENDMENTS

1997 - Subsec. (b)(1). Pub. L. 105-34, Sec. 1239(d)(2),

substituted ", 6228(a), or 6234(c)" for "or 6228(a)" in concluding

provisions.

Subsec. (b)(1)(E). Pub. L. 105-34, Sec. 1222(b)(3), substituted

", 6228(a), 6247, or 6252" for "or 6228(a)".

Subsec. (b)(1)(F). Pub. L. 105-34, Sec. 1239(d)(1), added subpar.

(F).

1989 - Subsec. (c)(4). Pub. L. 101-239 substituted "penalties"

for "damages" in heading and amended text generally. Prior to

amendment, text read as follows: "The United States Court of

Appeals and the Supreme Court shall have power to impose damages in

any case where the decision of the Tax Court is affirmed and it

appears that the notice of appeal was filed merely for delay."

1988 - Subsec. (a)(3). Pub. L. 100-647 added par. (3).

1986 - Subsec. (a). Pub. L. 99-514, Sec. 1558(a), (b), inserted

par. (1) designation and heading "In general" before existing text

and realigned its margin, and added par. (2).

Subsec. (b)(1). Pub. L. 99-514, Sec. 1810(g)(2), substituted

"section 7428 or 7476" for "section 7428, 7476, or 7477" in last

sentence.

Subsec. (b)(1)(E). Pub. L. 99-514, Sec. 1899A(60), substituted

"partnership." for "partnership,".

1984 - Subsec. (b)(1)(D) to (F). Pub. L. 98-369 struck out

subpar. (D) which provided that venue in the case of a person

seeking declaratory judgment under section 7477 be the legal

residence of such person if such person is not a corporation, or

the principal place of business or principal office or agency of

such person if such person is a corporation, and redesignated

subpars. (E) and (F) as (D) and (E), respectively.

1982 - Subsec. (a). Pub. L. 97-164 inserted "(other than the

United States Court of Appeals for the Federal Circuit)" after "The

United States Courts of Appeals".

Subsec. (b)(1). Pub. L. 97-248 added subpar. (F), and in

provisions following subpar. (F) inserted ", or the petition under

section 6226 or 6228(a)," after "or 7477".

1978 - Subsec. (b)(1). Pub. L. 95-600, Sec. 336(c)(1)(A),

substituted "provided in paragraphs (2) and (3)" for "provided in

paragraph (2)".

Subsec. (b)(3). Pub. L. 95-600, Sec. 336(c)(1)(B), added par.

(3).

1976 - Subsec. (b)(1)(D). Pub. L. 94-455, Sec. 1042(d)(2)(A),

added subpar. (D).

Subsec. (b)(1)(E). Pub. L. 94-455, Sec. 1306(b)(4), added subpar.

(E).

Subsec. (b)(1). Pub. L. 94-455, Secs. 1042(d)(2)(B), 1306(b)(5),

in provisions following subpar. (E), substituted "no subparagraph

of the preceding sentence applies" for "subparagraph (A), (B), and

(C) do not apply" and "section 7428, 7476, or 7477" for "section

7476".

Subsec. (b)(2). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck out

"or his delegate" after "Secretary".

1974 - Subsec. (b)(1). Pub. L. 93-406 added subpar. (C) and, in

provisions following subpar. (C), substituted "If for any reason

subparagraph (A), (B), and (C) do not apply" for "If for any reason

neither subparagraph (A) nor (B) applies", and inserted provisions

referring to the time the petition seeking a declaratory decision

under section 7476 was filed with the Tax Court.

1969 - Subsec. (c). Pub. L. 91-172 substituted "section 2072 of

title 28" for "section 2074 of title 28" in par. (2) and struck out

provision for the applicability of rules adopted under authority of

section 1141(c)(2) of the Internal Revenue Act of 1939 until such

time as rules prescribed by the Supreme Court under section 2072 of

title 28 become effective and, in par. (4), substituted "notice of

appeal" for "petition".

1966 - Subsec. (b)(1). Pub. L. 89-713 substituted provisions

requiring that appeals from Tax Court decisions be made to the

Court of Appeals for the circuit in which the taxpayer resides, in

the case of a taxpayer other than a corporation, and, in the case

of appeals by corporations, to the Court of Appeals for the circuit

in which the corporation has its principal place of business or

principal office or agency for provisions prescribing review by the

Court of Appeals for the circuit in which was located the office to

which was made the return of the tax in respect of which the

liability arose, and inserted provision for the time of determining

legal residence, place of business, or principal office or agency.

EFFECTIVE DATE OF 1997 AMENDMENT

Amendment by section 1222(b)(3) of Pub. L. 105-34 applicable to

partnership taxable years beginning after Dec. 31, 1997, see

section 1226 of Pub. L. 105-34, as amended, set out as a note under

section 6011 of this title.

Amendment by section 1239(d) of Pub. L. 105-34 applicable to

partnership taxable years ending after Aug. 5, 1997, see section

1239(f) of Pub. L. 105-34, set out as a note under section 6225 of

this title.

EFFECTIVE DATE OF 1989 AMENDMENT

Amendment by Pub. L. 101-239 applicable to positions taken after

Dec. 31, 1989, in proceedings which are pending on, or commenced

after such date, see section 7731(d) of Pub. L. 101-239, set out as

a note under section 6673 of this title.

EFFECTIVE DATE OF 1988 AMENDMENT

Amendment by Pub. L. 100-647 applicable to orders entered after

Nov. 10, 1988, see section 6243(c) of Pub. L. 100-647, set out as a

note under section 6213 of this title.

EFFECTIVE DATE OF 1986 AMENDMENT

Section 1558(c) of Pub. L. 99-514 provided that: "The amendments

made by this section [amending this section] shall apply to any

order of the Tax Court entered after the date of the enactment of

this Act [Oct. 22, 1986]."

Amendment by section 1810(g)(2) of Pub. L. 99-514 effective,

except as otherwise provided, as if included in the provisions of

the Tax Reform Act of 1984, Pub. L. 98-369, div. A, to which such

amendment relates, see section 1881 of Pub. L. 99-514, set out as a

note under section 48 of this title.

EFFECTIVE DATE OF 1984 AMENDMENT

Amendment by Pub. L. 98-369 applicable to transfers or exchanges

after Dec. 31, 1984, in taxable years ending after such date, with

special rules for certain transfers and ruling requests before Mar.

1, 1984, see section 131(g) of Pub. L. 98-369, set out as a note

under section 367 of this title.

EFFECTIVE DATE OF 1982 AMENDMENTS

Amendment by Pub. L. 97-248 applicable to partnership taxable

years beginning after Sept. 3, 1982, with provision for the

applicability of the amendment to any partnership taxable year

ending after Sept. 3, 1982, if the partnership, each partner, and

each indirect partner requests such application and the Secretary

of the Treasury or his delegate consents to such application, see

section 407(a)(1), (3) of Pub. L. 97-248, set out as an Effective

Date note under section 6221 of this title.

Amendment by Pub. L. 97-164 effective Oct. 1, 1982, see section

402 of Pub. L. 97-164, set out as a note under section 171 of Title

28, Judiciary and Judicial Procedure.

EFFECTIVE DATE OF 1978 AMENDMENT

Amendment by Pub. L. 95-600 applicable to requests for

determinations made after Dec. 31, 1978, see section 336(d) of Pub.

L. 95-600, set out as an Effective Date note under section 7478 of

this title.

EFFECTIVE DATE OF 1976 AMENDMENT

Amendment by section 1042(d)(2)(A), (B) of Pub. L. 94-455

applicable with respect to pleadings filed with the Tax Court after

Oct. 4, 1976, but only with respect to transfers beginning after

Oct. 9, 1975, see section 1042(e)(1) of Pub. L. 94-455, set out as

a note under section 367 of this title.

Amendment by section 1306(b)(4), (5) of Pub. L. 94-455 applicable

with respect to pleadings filed with the United States Tax Court,

the district court of the United States for the District of

Columbia, or the United States Court of Claims more than 6 months

after Oct. 4, 1976 but only with respect to determinations (or

requests for determinations) made after Jan. 1, 1976, see section

1306(c) of Pub. L. 94-455, set out as an Effective Date note under

section 7428 of this title.

EFFECTIVE DATE OF 1974 AMENDMENT

Amendment by Pub. L. 93-406 applicable to pleadings filed more

than one year after Sept. 2, 1974, see section 1041(d) of Pub. L.

93-406, set out as an Effective Date note under section 7476 of

this title.

EFFECTIVE DATE OF 1969 AMENDMENT

Amendment by Pub. L. 91-172 effective 30 days after Dec. 30,

1969, see section 962(f) of Pub. L. 91-172, set out as a note under

section 7483 of this title.

EFFECTIVE DATE OF 1966 AMENDMENT

Amendment by Pub. L. 89-713 applicable to all decisions of the

Tax Court entered after Nov. 2, 1966, see section 3(d) of Pub. L.

89-713, set out as a note under section 7422 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 7437, 7485 of this title.

-End-

-CITE-

26 USC Sec. 7483 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 76 - JUDICIAL PROCEEDINGS

Subchapter D - Court Review of Tax Court Decisions

-HEAD-

Sec. 7483. Notice of appeal

-STATUTE-

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.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 891; Pub. L. 91-172, title IX,

Sec. 959(a), Dec. 30, 1969, 83 Stat. 734.)

-MISC1-

AMENDMENTS

1969 - Pub. L. 91-172 substituted references to notice of appeal

for references to petition for review, and otherwise generally

altered the section as to time for appeal and terminology in order

to conform section to the form of the Federal Rules of Appellate

Procedure.

EFFECTIVE DATE OF 1969 AMENDMENT

Section 962(f) of Pub. L. 91-172, as amended by Pub. L. 99-514,

Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that: "The

amendments made by sections 959 and 960(h) [amending this section

and sections 7481, 7482, and 7485 of this title] shall take effect

30 days after the date of the enactment of this Act [Dec. 30,

1969]. In the case of any decision of the Tax Court entered before

the 30th day after the date of the enactment of this Act [Dec. 30,

1969], the United States Courts of Appeals shall have jurisdiction

to hear an appeal from such decision, if such appeal was filed

within the time prescribed by Rule 13(a) of the Federal Rules of

Appellate Procedure or by section 7483 of the Internal Revenue Code

of 1986 [formerly I.R.C. 1954] as in effect at the time the

decision of the Tax Court was entered."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 6512, 7482, 7485 of this

title.

-End-

-CITE-

26 USC Sec. 7484 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 76 - JUDICIAL PROCEEDINGS

Subchapter D - Court Review of Tax Court Decisions

-HEAD-

Sec. 7484. Change of incumbent in office

-STATUTE-

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.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 891; Pub. L. 94-455, title XIX,

Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.)

-MISC1-

AMENDMENTS

1976 - Pub. L. 94-455 struck out "or his delegate" after

"Secretary".

-End-

-CITE-

26 USC Sec. 7485 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 76 - JUDICIAL PROCEEDINGS

Subchapter D - Court Review of Tax Court Decisions

-HEAD-

Sec. 7485. Bond to stay assessment and collection

-STATUTE-

(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 a partner

duly files notice of appeal from a decision under section 6226,

6228(a), 6247, or 6252 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 items 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 section 9303 of title 31, United States Code.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 891; Pub. L. 91-172, title IX,

Sec. 960(h)(3), Dec. 30, 1969, 83 Stat. 735; Pub. L. 97-248, title

IV, Sec. 402(c)(16), Sept. 3, 1982, 96 Stat. 668; Pub. L. 97-258,

Sec. 3(f)(15), Sept. 13, 1982, 96 Stat. 1065; Pub. L. 105-34, title

XII, Secs. 1222(b)(4), 1241(a), Aug. 5, 1997, 111 Stat. 1019,

1029.)

-REFTEXT-

REFERENCES IN TEXT

The income and estate tax laws, referred to in subsec. (a)(2),

are classified generally to this title.

-MISC1-

AMENDMENTS

1997 - Subsec. (b). Pub. L. 105-34, Sec. 1222(b)(4)(B), amended

heading generally. Prior to amendment, heading read as follows:

"Bond in case of appeal of decision under section 6226 or section

6228(a)".

Pub. L. 105-34, Sec. 1222(b)(4)(A), substituted ", 6228(a), 6247,

or 6252" for "or 6228(a)".

Pub. L. 105-34, Sec. 1241(a), inserted "penalties," after "any

interest," and substituted "aggregate liability of the parties to

the action" for "aggregate of such deficiencies".

1982 - Subsecs. (b), (c). Pub. L. 97-248 added subsec. (b) and

redesignated former subsec. (b) as (c).

Subsec. (c)(2). Pub. L. 97-258 substituted "section 9303 of title

31, United States Code" for "6 U.S.C. 15". Notwithstanding the

directory language that amendment be made to subsec. (b)(2), the

amendment was executed to subsec. (c)(2) to reflect the probable

intent of Congress and the intervening redesignation of subsec. (b)

as (c) by Pub. L. 97-248.

1969 - Subsec. (a). Pub. L. 91-172 substituted "notice of appeal"

for "petition for review" and "appeal bond" for "review bond".

EFFECTIVE DATE OF 1997 AMENDMENT

Amendment by section 1222(b)(4) of Pub. L. 105-34 applicable to

partnership taxable years beginning after Dec. 31, 1997, see

section 1226 of Pub. L. 105-34, as amended, set out as a note under

section 6011 of this title.

Section 1241(b) of Pub. L. 105-34 provided that: "The amendment

made by this section [amending this section] shall take effect as

if included in the amendments made by section 402 of the Tax Equity

and Fiscal Responsibility Act of 1982 [Pub. L. 97-248]."

EFFECTIVE DATE OF 1982 AMENDMENT

Amendment by Pub. L. 97-248 applicable to partnership taxable

years beginning after Sept. 3, 1982, with provision for the

applicability of the amendment to any partnership taxable year

ending after Sept. 3, 1982, if the partnership, each partner, and

each indirect partner requests such application and the Secretary

of the Treasury or his delegate consents to such application, see

section 407(a)(1), (3) of Pub. L. 97-248, set out as an Effective

Date note under section 6221 of this title.

EFFECTIVE DATE OF 1969 AMENDMENT

Amendment by Pub. L. 91-172 effective 30 days after Dec. 30,

1969, see section 962(f) of Pub. L. 91-172, set out as a note under

section 7483 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 6015, 6215, 7101, 7103 of

this title.

-End-

-CITE-

26 USC Sec. 7486 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 76 - JUDICIAL PROCEEDINGS

Subchapter D - Court Review of Tax Court Decisions

-HEAD-

Sec. 7486. Refund, credit, or abatement of amounts disallowed

-STATUTE-

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.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 891.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 6422 of this title.

-End-

-CITE-

26 USC Sec. 7487 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 76 - JUDICIAL PROCEEDINGS

Subchapter D - Court Review of Tax Court Decisions

-HEAD-

Sec. 7487. Cross references

-STATUTE-

(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.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 892; Pub. L. 91-172, title IX,

Sec. 960(i)(1), Dec. 30, 1969, 83 Stat. 735.)

-MISC1-

AMENDMENTS

1969 - Pub. L. 91-172 inserted reference to section 7463(b) for

nonreviewability of Tax Court decisions in small claims cases.

EFFECTIVE DATE OF 1969 AMENDMENT

Amendment by Pub. L. 91-172 effective one year after Dec. 30,

1969, see section 962(e) of Pub. L. 91-172, set out as an Effective

Date note under section 7463 of this title.

-End-

-CITE-

26 USC Subchapter E - Burden of Proof 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 76 - JUDICIAL PROCEEDINGS

Subchapter E - Burden of Proof

-HEAD-

SUBCHAPTER E - BURDEN OF PROOF

-MISC1-

Sec.

7491. Burden of proof.

-End-

-CITE-

26 USC Sec. 7491 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 76 - JUDICIAL PROCEEDINGS

Subchapter E - Burden of Proof

-HEAD-

Sec. 7491. Burden of proof

-STATUTE-

(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.

-SOURCE-

(Added Pub. L. 105-206, title III, Sec. 3001(a), July 22, 1998, 112

Stat. 726; amended Pub. L. 105-277, div. J, title IV, Sec. 4002(b),

Oct. 21, 1998, 112 Stat. 2681-906.)

-MISC1-

PRIOR PROVISIONS

A prior section 7491, act Aug. 16, 1954, ch. 736, 68A Stat. 893,

placed the burden of proof in establishing the applicability of an

exemption upon the defendant in the case of marihuana offenses,

prior to repeal by Pub. L. 91-513, title III, Secs. 1101(b)(5)(A),

1103, 1105(a), Oct. 27, 1970, 84 Stat. 1292, 1294, 1295, effective

on first day of seventh calendar month that begins after Oct. 26,

1970, with prosecutions commenced prior to such date not to be

affected or abated by reason thereof.

A prior section 7492, act Aug. 16, 1954, ch. 736, 68A Stat. 893,

related to the enforceability of cotton futures contracts, prior to

repeal by Pub. L. 94-455, title XIX, Sec. 1952(n)(4)(A), (o), Oct.

4, 1976, 90 Stat. 1846, effective on the 90th day after Oct. 4,

1976.

A prior section 7493, act Aug. 16, 1954, ch. 736, 68A Stat. 893,

provided that no person whose evidence is deemed material by the

officer prosecuting on behalf of the United States in any case

brought under any provision of subchapter D of chapter 39 of this

title withhold his testimony because of complicity by him in any

violation of subchapter D of chapter 39 of this title or of any

regulation made pursuant to such chapter, but that such person

called by such officer who testifies in the case be exempt from

prosecution for any offense to which his testimony relates, prior

to repeal by Pub. L. 91-452, title II, Secs. 232, 260, Oct. 15,

1970, 84 Stat. 930, 931, effective on 60th day following Oct. 15,

1970, and not to affect any immunity to which any individual was

entitled under by reason of any testimony given before 60th day

following Oct. 15, 1970. See section 6001 et seq. of Title 18,

Crimes and Criminal Procedure.

AMENDMENTS

1998 - Subsec. (a)(2). Pub. L. 105-277 inserted concluding

provisions.

EFFECTIVE DATE OF 1998 AMENDMENT

Amendment by Pub. L. 105-277 effective as if included in the

provision of the Internal Revenue Service Restructuring and Reform

Act of 1998, Pub. L. 105-206, to which such amendment relates, see

section 4002(k) of Pub. L. 105-277, set out as a note under section

1 of this title.

EFFECTIVE DATE

Pub. L. 105-206, title III, Sec. 3001(c), July 22, 1998, 112

Stat. 727, provided that:

"(1) In general. - The amendments made by this section [enacting

this subchapter] shall apply to court proceedings arising in

connection with examinations commencing after the date of the

enactment of this Act [July 22, 1998].

"(2) Taxable periods or events after date of enactment. - In any

case in which there is no examination, such amendments shall apply

to court proceedings arising in connection with taxable periods or

events beginning or occurring after such date of enactment."

-End-