Title 26 — Internal Revenue Code
Chapter 76 — Judicial Proceedings
§ 7403. Action to enforce lien or to subject property to payment of tax
Statutory text
Filing
In any case where there has been a refusal or neglect to pay any tax, or to discharge any liability in respect thereof, whether or not levy has been made, the Attorney General or his delegate, at the request of the Secretary, may direct a civil action to be filed in a district court of the United States to enforce the lien of the United States under this title with respect to such tax or liability or to subject any property, of whatever nature, of the delinquent, or in which he has any right, title, or interest, to the payment of such tax or liability. For purposes of the preceding sentence, any acceleration of payment under section 6166(g) shall be treated as a neglect to pay tax.
Parties
All persons having liens upon or claiming any interest in the property involved in such action shall be made parties thereto.
Adjudication and decree
The court shall, after the parties have been duly notified of the action, proceed to adjudicate all matters involved therein and finally determine the merits of all claims to and liens upon the property, and, in all cases where a claim or interest of the United States therein is established, may decree a sale of such property, by the proper officer of the court, and a distribution of the proceeds of such sale according to the findings of the court in respect to the interests of the parties and of the United States. If the property is sold to satisfy a first lien held by the United States, the United States may bid at the sale such sum, not exceeding the amount of such lien with expenses of sale, as the Secretary directs.
Receivership
In any such proceeding, at the instance of the United States, the court may appoint a receiver to enforce the lien, or, upon certification by the Secretary during the pendency of such proceedings that it is in the public interest, may appoint a receiver with all the powers of a receiver in equity.
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.
Aug. 16, 1954, ch. 736, 68A Stat. 874 · 68A Stat. 874
Enacted · 26 U.S.C. § 7403
Aug. 16, 1954, ch. 736, 68A Stat. 874
Source evidence
Code source credit
Aug. 16, 1954, ch. 736, 68A Stat. 874Federal Tax Lien Act of 1966
Pub. L. 89–719 title I § 107(b) · 80 Stat. 1125
Inserted · 26 U.S.C. § 7403(c)
Pub. L. 89–719 inserted sentence permitting the United States, if the property is sold to satisfy a first lien held by the United States, to bid at the sale such sum, not more than the amount of such lien with expenses of sale, as the Secretary or his delegate directs
Source evidence
Code amendment note
Subsec. (c). Pub. L. 89–719 inserted sentence permitting the United States, if the property is sold to satisfy a first lien held by the United States, to bid at the sale such sum, not more than the amount of such lien with expenses of sale, as the Secretary or his delegate directs.Enacted provision · exact public law section
(b) Sale Bids.— Section 7403(c) (relating to adjudication and decree) is amended by adding at the end thereof the following new sentence: “If the property is sold to satisfy a first lien held by the United States, the United States may bid at the sale such sum, not exceeding the amount of such lien with expenses of sale, as the Secretary or his delegate directs.”Pub. L. 94–455 title XIX § 1906(b)(13)(A) · 90 Stat. 1520
Struck and inserted · 26 U.S.C. § 7403(a)
Pub. L. 94–455, §§ 1906(b)(13)(A), 2004(f)(2), struck out “or his delegate” after “Secretary” and inserted provisions relating to the acceleration of payment under section 6166(g) or 6166A(h)
Source evidence
Code amendment note
Subsec. (a). Pub. L. 94–455, §§ 1906(b)(13)(A), 2004(f)(2), struck out “or his delegate” after “Secretary” and inserted provisions relating to the acceleration of payment under section 6166(g) or 6166A(h).Enacted provision · exact public law section
(A) The Internal Revenue Code of 1954, as amended by this Act, is amended by striking out “Secretary or his delegate” each place it appears and inserting in lieu thereof “Secretary”.Pub. L. 94–455 § 1906(b)(13)(A) · 90 Stat. 1520
Struck · 26 U.S.C. § 7403(c); 26 U.S.C. § 7403(d)
Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”
Source evidence
Code amendment note
Subsecs. (c), (d). Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”.Enacted provision · exact public law section
(A) The Internal Revenue Code of 1954, as amended by this Act, is amended by striking out “Secretary or his delegate” each place it appears and inserting in lieu thereof “Secretary”.Economic Recovery Tax Act of 1981
Pub. L. 97–34 title IV § 422(e)(8) · 95 Stat. 175
Struck · 26 U.S.C. § 7403(a)
Pub. L. 97–34 struck out “or 6166A(h)” after “section 6166(g)”
Source evidence
Code amendment note
Subsec. (a). Pub. L. 97–34 struck out “or 6166A(h)” after “section 6166(g)”.Enacted provision · exact public law section
(8) Subsection (a) of section 7403 is amended by striking out “or 6166A(h)”.Effective date note
Amendment by Pub. L. 97–34 applicable to estates of decedents dying after Dec. 31, 1981, see section 422(f)(1) of Pub. L. 97–34, set out as a note under section 6166 of this title.
4 of 5 references resolved to an enrolled provision · 1 partial
Editorial Notes
Amendments1966–1981 · 3 rounds
1981
Subsec. (a). Pub. L. 97–34 struck out “or 6166A(h)” after “section 6166(g)”.
1976
Subsec. (a). Pub. L. 94–455, §§ 1906(b)(13)(A), 2004(f)(2), struck out “or his delegate” after “Secretary” and inserted provisions relating to the acceleration of payment under section 6166(g) or 6166A(h).
Subsecs. (c), (d). Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”.
1966
Subsec. (c). Pub. L. 89–719 inserted sentence permitting the United States, if the property is sold to satisfy a first lien held by the United States, to bid at the sale such sum, not more than the amount of such lien with expenses of sale, as the Secretary or his delegate directs.
Statutory Notes and Related Subsidiaries
Effective Date of 1981 Amendment
Amendment by Pub. L. 97–34 applicable to estates of decedents dying after , see section 422(f)(1) of Pub. L. 97–34, set out as a note under section 6166 of this title.
Effective Date of 1966 Amendment
Amendment by Pub. L. 89–719 applicable after , regardless of when title or lien of United States arose or when lien or interest of another person was acquired, with certain exceptions, see section 114(a)–(c) of Pub. L. 89–719, set out as a note under section 6323 of this title.
Credits
1954–1981 · 4 acts
- 1954Aug. 16, 1954, ch. 736, 68A Stat. 874
- 1966Pub. L. 89–719, title I, § 107(b), , 80 Stat. 1140
- 1976Pub. L. 94–455, title XIX, § 1906(b)(13)(A), title XX, § 2004(f)(2), , 90 Stat. 1834, 1872
- 1981Pub. L. 97–34, title IV, § 422(e)(8), , 95 Stat. 316.
Show as published
(Aug. 16, 1954, ch. 736, 68A Stat. 874; Pub. L. 89–719, title I, § 107(b), , 80 Stat. 1140; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), title XX, § 2004(f)(2), , 90 Stat. 1834, 1872; Pub. L. 97–34, title IV, § 422(e)(8), , 95 Stat. 316.)