2018 US Code
Title 26 - Internal Revenue Code
Subtitle F - Procedure and Administration
Chapter 70 - Jeopardy, Receiverships, Etc.
Subchapter A - Jeopardy
Part III - Special Rules With Respect to Certain Cash
Sec. 6867 - Presumptions where owner of large amount of cash is not identified
| 26 U.S.C. § 6867 (2018) |
| §6867. Presumptions where owner of large amount of cash is not identified |
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(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 assessingIn 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 the highest rate of tax specified in section 1, 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). 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) DefinitionsFor purposes of this section— (1) CashThe term "cash" includes any 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. 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. |
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(Added Pub. L. 97–248, title III, §330(a), Sept. 3, 1982, 96 Stat. 619; amended Pub. L. 100–647, title I, §1001(a)(1), Nov. 10, 1988, 102 Stat. 3349.) |
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AMENDMENTS
1988—Subsec. (b)(2). Pub. L. 100–647 substituted "the highest rate of tax specified in section 1" for "a 50-percent rate". EFFECTIVE DATE OF 1988 AMENDMENTAmendment 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 DATEPub. L. 97–248, title III, §330(c), Sept. 3, 1982, 96 Stat. 620, provided that: "The amendments made by subsections (a) and (b) [enacting this section] shall take effect on the day after the date of the enactment of this Act [Sept. 3, 1982]." |
| United States Code, 2018 Edition, Title 26 - INTERNAL REVENUE CODE |
| Bills and Statutes |
| United States Code |
| Y 1.2/5: |
| Title 26 - INTERNAL REVENUE CODE Subtitle F - Procedure and Administration CHAPTER 70 - JEOPARDY, RECEIVERSHIPS, ETC. Subchapter A - Jeopardy PART III - SPECIAL RULES WITH RESPECT TO CERTAIN CASH Sec. 6867 - Presumptions where owner of large amount of cash is not identified |
| section 6867 |
| 2018 |
| January 14, 2019 |
| No |
| standard |
| 96 Stat. 619, 620 102 Stat. 3349 |
| Public Law 97-248, Public Law 99-514, Public Law 100-647 |
