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119th Congress

Title 26 — Internal Revenue Code

Chapter 77 — Miscellaneous Provisions

§ 7512. Separate accounting for certain collected taxes, etc.

Statutory text

(a)

General rule

Whenever any person who is required to collect, account for, and pay over any tax imposed by subtitle C or chapter 33—

(1)

at the time and in the manner prescribed by law or regulations (A) fails to collect, truthfully account for, or pay over such tax, or (B) fails to make deposits, payments, or returns of such tax, and

(2)

is notified, by notice delivered in hand to such person, of any such failure,

then all the requirements of subsection (b) shall be complied with. In the case of a corporation, partnership, or trust, notice delivered in hand to an officer, partner, or trustee, shall, for purposes of this section, be deemed to be notice delivered in hand to such corporation, partnership, or trust and to all officers, partners, trustees, and employees thereof.

(b)

Requirements

Any person who is required to collect, account for, and pay over any tax imposed by subtitle C or chapter 33, if notice has been delivered to such person in accordance with subsection (a), shall collect the taxes imposed by subtitle C or chapter 33 which become collectible after delivery of such notice, shall (not later than the end of the second banking day after any amount of such taxes is collected) deposit such amount in a separate account in a bank (as defined in section 581), and shall keep the amount of such taxes in such account until payment over to the United States. Any such account shall be designated as a special fund in trust for the United States, payable to the United States by such person as trustee.

(c)

Relief from further compliance with subsection (b)

Whenever the Secretary is satisfied, with respect to any notification made under subsection (a), that all requirements of law and regulations with respect to the taxes imposed by subtitle C or chapter 33, as the case may be, will henceforth be complied with, he may cancel such notification. Such cancellation shall take effect at such time as is specified in the notice of such cancellation.

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. Pub. L. 85–321 § 1 · 72 Stat. 706

    Enacted · 26 U.S.C. § 7512

    Added Pub. L. 85–321, § 1, Feb. 11, 1958, 72 Stat. 5

    Source evidence

    Code source credit
    Added Pub. L. 85–321, § 1, Feb. 11, 1958, 72 Stat. 5

    Enacted provision · exact public law section
    (1) in the case of taxes imposed by subtitle C of such Code, only with respect to pay periods beginning after the date of the enactment of this Act; and

  2. Pub. L. 94–455 title XIX § 1906(b)(13)(A) · 90 Stat. 1520

    Struck · 26 U.S.C. § 7512

    Pub. L. 94–455 struck out “or his delegate” after “Secretary” wherever appearing

    Source evidence

    Code amendment note
    Pub. L. 94–455 struck out “or his delegate” after “Secretary” wherever appearing.

    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”.

  3. Pub. L. 96–223 title I § 101(c)(3) · 94 Stat. 229

    Inserted · 26 U.S.C. § 7512(a)(c)

    Pub. L. 96–223 inserted references to tax imposed by section 4986

    Source evidence

    Code amendment note
    Subsecs. (a) to (c). Pub. L. 96–223 inserted references to tax imposed by section 4986.

    Enacted provision · exact public law section
    (3) Technical amendment.— Section 7512 (relating to separate 26 USC 7512. accounting for certain collected taxes, etc.) is amended— (A) by striking out “or by chapter 33” in subsections (a) and (b) and inserting in lieu thereof “, by chapter 33, or by section 4986”, and (B) by striking out “or chapter 33” in subsections (b) and (c) and inserting in lieu thereof “, chapter 33, or section 4986”.

  4. Omnibus Trade and Competitiveness Act of 1988

    Pub. L. 100–418 § 1941(b)(2)(O)(i) · 102 Stat. 1107

    Substituted · 26 U.S.C. § 7512(a)

    Pub. L. 100–418, § 1941(b)(2)(O)(i), substituted “or chapter 33” for “, by chapter 33, or by section 4986” in introductory provisions

    Source evidence

    Code amendment note
    Subsec. (a). Pub. L. 100–418, § 1941(b)(2)(O)(i), substituted “or chapter 33” for “, by chapter 33, or by section 4986” in introductory provisions.

    Enacted provision · exact public law section
    (i) by striking “, by chapter 33, or by section 4986” in subsections (a) and (b) and inserting “or chapter 33”, and

    Effective date note
    Amendment by Pub. L. 100–418 applicable to crude oil removed from the premises on or after Aug. 23, 1988, see section 1941(c) of Pub. L. 100–418, set out as a note under section 164 of this title.

  5. Omnibus Trade and Competitiveness Act of 1988

    Pub. L. 100–418 § 1941(b)(2)(O)(i) · 102 Stat. 1107

    1. Substituted · 26 U.S.C. § 7512(b)

      Pub. L. 100–418, § 1941(b)(2)(O)(i), (ii), substituted “or chapter 33” for “, by chapter 33, or by section 4986”

    2. Substituted · 26 U.S.C. § 7512(b)

      Pub. L. 100–418, § 1941(b)(2)(O)(i), (ii), substituted “or chapter 33” for “, chapter 33, or section 4986”

    Source evidence

    Code amendment note
    Subsec. (b). Pub. L. 100–418, § 1941(b)(2)(O)(i), (ii), substituted “or chapter 33” for “, by chapter 33, or by section 4986” and “or chapter 33” for “, chapter 33, or section 4986”.

    Enacted provision · exact public law section
    (i) by striking “, by chapter 33, or by section 4986” in subsections (a) and (b) and inserting “or chapter 33”, and

    Effective date note
    Amendment by Pub. L. 100–418 applicable to crude oil removed from the premises on or after Aug. 23, 1988, see section 1941(c) of Pub. L. 100–418, set out as a note under section 164 of this title.

  6. Omnibus Trade and Competitiveness Act of 1988

    Pub. L. 100–418 § 1941(b)(2)(O)(ii) · 102 Stat. 1107

    Substituted · 26 U.S.C. § 7512(c)

    Pub. L. 100–418, § 1941(b)(2)(O)(ii), substituted “or chapter 33” for “, chapter 33, or section 4986”

    Source evidence

    Code amendment note
    Subsec. (c). Pub. L. 100–418, § 1941(b)(2)(O)(ii), substituted “or chapter 33” for “, chapter 33, or section 4986”.

    Enacted provision · exact public law section
    (ii) by striking “, chapter 33, or section 4986” in subsections (b) and (c) and inserting “or chapter 33”.

    Effective date note
    Amendment by Pub. L. 100–418 applicable to crude oil removed from the premises on or after Aug. 23, 1988, see section 1941(c) of Pub. L. 100–418, set out as a note under section 164 of this title.

7 of 7 references resolved to an enrolled provision

Editorial Notes

Amendments1976–1988 · 3 rounds

1988

Subsec. (a). Pub. L. 100–418, § 1941(b)(2)(O)(i), substituted “or chapter 33” for “, by chapter 33, or by section 4986” in introductory provisions.

Subsec. (b). Pub. L. 100–418, § 1941(b)(2)(O)(i), (ii), substituted “or chapter 33” for “, by chapter 33, or by section 4986” and “or chapter 33” for “, chapter 33, or section 4986”.

Subsec. (c). Pub. L. 100–418, § 1941(b)(2)(O)(ii), substituted “or chapter 33” for “, chapter 33, or section 4986”.

1980

Subsecs. (a) to (c). Pub. L. 96–223 inserted references to tax imposed by section 4986.

1976

Pub. L. 94–455 struck out “or his delegate” after “Secretary” wherever appearing.

Statutory Notes and Related Subsidiaries

Effective Date of 1988 Amendment

Amendment by Pub. L. 100–418 applicable to crude oil removed from the premises on or after , see section 1941(c) of Pub. L. 100–418, set out as a note under section 164 of this title.

Effective Date of 1980 Amendment

Amendment by Pub. L. 96–223 applicable to periods after , see section 101(i) of Pub. L. 96–223, set out as a note under section 6161 of this title.

Notification of Failure To Collect, Account for, and Pay Over Taxes

Pub. L. 85–321, § 4, , 72 Stat. 6, as amended by Pub. L. 99–514, § 2, , 100 Stat. 2095, provided that:

“Notification may be made under section 7512(a) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] (as added by the first section of this Act)—

“(1)

in the case of taxes imposed by subtitle C of such Code, only with respect to pay periods beginning after the date of the enactment of this Act []; and

“(2)

in the case of taxes imposed by chapter 33 of such Code, only with respect to taxes so imposed after the date of the enactment of this Act [].”

Credits

1958–1988 · 4 acts
  1. 1958Added Pub. L. 85–321, § 1, , 72 Stat. 5
  2. 1976amended Pub. L. 94–455, title XIX, § 1906(b)(13)(A), , 90 Stat. 1834
  3. 1980Pub. L. 96–223, title I, § 101(c)(3), , 94 Stat. 251
  4. 1988Pub. L. 100–418, title I, § 1941(b)(2)(O), , 102 Stat. 1324.
Show as published

(Added Pub. L. 85–321, § 1, , 72 Stat. 5; amended Pub. L. 94–455, title XIX, § 1906(b)(13)(A), , 90 Stat. 1834; Pub. L. 96–223, title I, § 101(c)(3), , 94 Stat. 251; Pub. L. 100–418, title I, § 1941(b)(2)(O), , 102 Stat. 1324.)

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USLM identifier /us/usc/t26/s7512