1996 US Code
Title 26 - INTERNAL REVENUE CODE
CHAPTER 74 - CLOSING AGREEMENTS AND COMPROMISES
Sec. 7122 - Compromises

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§7122. Compromises (a) Authorization

The Secretary may compromise any civil or criminal case arising under the internal revenue laws prior to reference to the Department of Justice for prosecution or defense; and the Attorney General or his delegate may compromise any such case after reference to the Department of Justice for prosecution or defense.

(b) Record

Whenever a compromise is made by the Secretary in any case, there shall be placed on file in the office of the Secretary the opinion of the General Counsel for the Department of the Treasury or his delegate, with his reasons therefor, with a statement of—

(1) The amount of tax assessed,

(2) The amount of interest, additional amount, addition to the tax, or assessable penalty, imposed by law on the person against whom the tax is assessed, and

(3) The amount actually paid in accordance with the terms of the compromise.

Notwithstanding the foregoing provisions of this subsection, no such opinion shall be required with respect to the compromise of any civil case in which the unpaid amount of tax assessed (including any interest, additional amount, addition to the tax, or assessable penalty) is less than ,000. However, such compromise shall be subject to continuing quality review by the Secretary.

(Aug. 16, 1954, ch. 736, 68A Stat. 849; Oct. 4, 1976, Pub. L. 94–455, title XIX, §1906(b)(13)(A), 90 Stat. 1834; July 30, 1996, Pub. L. 104–168, title V, §503(a), 110 Stat. 1461.)

Amendments

1996—Subsec. (b). Pub. L. 104–168 substituted “,000. However, such compromise shall be subject to continuing quality review by the Secretary.” for “0.”

1976—Subsecs. (a), (b). Pub. L. 94–455 struck out “or his delegate” after “Secretary”.

Effective Date of 1996 Amendment

Section 503(b) of Pub. L. 104–168 provided that: “The amendment made by this section [amending this section] shall take effect on the date of the enactment of this Act [July 30, 1996].”

Cross References

Compromise of liability under the Federal Alcohol Administration Act, see section 207 of Title 27, Intoxicating Liquors.

Deposit of collections, see section 7809 of this title.

Fraud and false statement, see section 7206 of this title.

Joint returns of income tax by husband and wife, see section 6013 of this title.

Limitation on credit or refund, see section 6511 of this title.

Mitigating effect of—

Limitation in case of related taxes under different chapters, see section 6521 of this title.

Limitations and other provisions, see section 1311 of this title.

Section Referred to in Other Sections

This section is referred to in sections 63, 473, 1311, 6013, 6103, 6325, 6511, 6521, 7206, 7809 of this title.