§ 6867. Presumptions where owner of large amount of cash is not identified

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1982

   Pub. L. 97–248 title III § 330(a) · 96 Stat. 324

   Enacted · 26 U.S.C. § 6867

   Added Pub. L. 97–248, title III, § 330(a), Sept. 3, 1982, 96 Stat. 619

   Source evidence

   Code source credit
   Added Pub. L. 97–248, title III, § 330(a), Sept. 3, 1982, 96 Stat. 619

   Enacted provision · exact public law section
   (a) In General.— Subchapter A of chapter 70 (relating to jeopardy) is amended by adding at the end thereof the following new part: “PART III— SPECIAL RULES WITH RESPECT TO CERTAIN CASH “Sec. 6867. Presumptions where owner of large amount of cash is not identified. “SEC. 6867. PRESUMPTIONS WHERE OWNER OF LARGE AMOUNT OF CASH IS NOT IDENTIFIED. “(a) General Rule.— If the individual who is in physical possession of cash in excess of $10,000 does not claim such cash— “(1) as his, or “(2) as belonging to another person whose identity the Secretary can readily ascertain and who acknowledges ownership of such cash, then, for purposes of sections 6851 and 6861, it shall be presumed that such cash represents gross income of a single individual for the taxable year in which the possession occurs, and that the collection of tax will be jeopardized by delay. “(b) Rules for Assessing.— In the case of any assessment resulting from the application of subsection (a)— “(1) the entire amount of the cash shall be treated as taxable income for the taxable year in which the possession occurs, “(2) such income shall be treated as taxable at a 50-percent rate, and “(3) except as provided in subsection (c), the possessor of the cash shall be treated (solely with respect to such cash) as the taxpayer for purposes of chapters 63 and 64 and section 7429(a)(1). “(c) Effect of Later Substitution of True Owner.— If, after an assessment resulting from the application of subsection (a), such assessment is abated and replaced by an assessment against the owner of the cash, such later assessment shall be treated for purposes of all laws relating to lien, levy and collection as relating back to the date of the original assessment. “(d) Definitions.— For purposes of this section— “(1) Cash.— The term ‘cash’ includes any cash equivalent. “(2) Cash equivalent.— The term ‘cash equivalent’ means— “(A) foreign currency, “(B) any bearer obligation, and “(C) any medium of exchange which— “(i) is of a type which has been frequently used in illegal activities, and “(ii) is specified as a cash equivalent for purposes of this part in regulations prescribed by the Secretary. “(3) Value of Cash Equivalent.— Any cash equivalent shall be taken into account— “(A) in the case of a bearer obligation, at its face amount, and “(B) in the case of any other cash equivalent, at its fair market value.”

2. 1988

   Technical and Miscellaneous Revenue Act of 1988

   Pub. L. 100–647 title I § 1001(a)(1) · 102 Stat. 3342

   Substituted · 26 U.S.C. § 6867(b)(2)

   Pub. L. 100–647 substituted “the highest rate of tax specified in section 1” for “a 50-percent rate”

   Source evidence

   Code amendment note
   Subsec. (b)(2). Pub. L. 100–647 substituted “the highest rate of tax specified in section 1” for “a 50-percent rate”.

   Enacted provision · exact public law section
   (1) Paragraph (2) of section 6867(b) of the 1986 Code is amended by striking out “at a 50-percent rate” and inserting in lieu thereof “at the highest rate of tax specified in section 1”.

   Effective date note
   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.

2 of 2 references resolved to an enrolled provision