
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC6311]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                Subtitle F--Procedure and Administration
 
                         CHAPTER 64--COLLECTION
 
                    Subchapter B--Receipt of Payment
 
Sec. 6311. Payment of tax by commercially acceptable means


(a) Authority to receive

    It shall be lawful for the Secretary to receive for internal revenue 
taxes (or in payment for internal revenue stamps) any commercially 
acceptable means that the Secretary deems appropriate to the extent and 
under the conditions provided in regulations prescribed by the 
Secretary.

(b) Ultimate liability

    If a check, money order, or other method of payment, including 
payment by credit card, debit card, or charge card so received is not 
duly paid, or is paid and subsequently charged back to the Secretary, 
the person by whom such check, or money order, or other method of 
payment has been tendered shall remain liable for the payment of the tax 
or for the stamps, and for all legal penalties and additions, to the 
same extent as if such check, money order, or other method of payment 
had not been tendered.

(c) Liability of banks and others

    If any certified, treasurer's, or cashier's check (or other 
guaranteed draft), or any money order, or any other means of payment 
that has been guaranteed by a financial institution (such as a credit 
card, debit card, or charge card transaction which has been guaranteed 
expressly by a financial institution) so received is not duly paid, the 
United States shall, in addition to its right to exact payment from the 
party originally indebted therefor, have a lien for--
        (1) the amount of such check (or draft) upon all assets of the 
    financial institution on which drawn,
        (2) the amount of such money order upon all the assets of the 
    issuer thereof, or
        (3) the guaranteed amount of any other transaction upon all the 
    assets of the institution making such guarantee,

and such amount shall be paid out of such assets in preference to any 
other claims whatsoever against such financial institution, issuer, or 
guaranteeing institution, except the necessary costs and expenses of 
administration and the reimbursement of the United States for the amount 
expended in the redemption of the circulating notes of such financial 
institution.

(d) Payment by other means

               (1) Authority to prescribe regulations

        The Secretary shall prescribe such regulations as the Secretary 
    deems necessary to receive payment by commercially acceptable means, 
    including regulations that--
            (A) specify which methods of payment by commercially 
        acceptable means will be acceptable,
            (B) specify when payment by such means will be considered 
        received,
            (C) identify types of nontax matters related to payment by 
        such means that are to be resolved by persons ultimately liable 
        for payment and financial intermediaries, without the 
        involvement of the Secretary, and
            (D) ensure that tax matters will be resolved by the 
        Secretary, without the involvement of financial intermediaries.

                (2) Authority to enter into contracts

        Notwithstanding section 3718(f) of title 31, United States Code, 
    the Secretary is authorized to enter into contracts to obtain 
    services related to receiving payment by other means where cost 
    beneficial to the Government. The Secretary may not pay any fee or 
    provide any other consideration under any such contract for the use 
    of credit, debit, or charge cards for the payment of taxes imposed 
    by subtitle A.

           (3) Special provisions for use of credit cards

        If use of credit cards is accepted as a method of payment of 
    taxes pursuant to subsection (a)--
            (A) a payment of internal revenue taxes (or a payment for 
        internal revenue stamps) by a person by use of a credit card 
        shall not be subject to section 161 of the Truth in Lending Act 
        (15 U.S.C. 1666), or to any similar provisions of State law, if 
        the error alleged by the person is an error relating to the 
        underlying tax liability, rather than an error relating to the 
        credit card account such as a computational error or numerical 
        transposition in the credit card transaction or an issue as to 
        whether the person authorized payment by use of the credit card,
            (B) a payment of internal revenue taxes (or a payment for 
        internal revenue stamps) shall not be subject to section 170 of 
        the Truth in Lending Act (15 U.S.C. 1666i), or to any similar 
        provisions of State law,
            (C) a payment of internal revenue taxes (or a payment for 
        internal revenue stamps) by a person by use of a debit card 
        shall not be subject to section 908 of the Electronic Fund 
        Transfer Act (15 U.S.C. 1693f), or to any similar provisions of 
        State law, if the error alleged by the person is an error 
        relating to the underlying tax liability, rather than an error 
        relating to the debit card account such as a computational error 
        or numerical transposition in the debit card transaction or an 
        issue as to whether the person authorized payment by use of the 
        debit card,
            (D) the term ``creditor'' under section 103(f) of the Truth 
        in Lending Act (15 U.S.C. 1602(f)) shall not include the 
        Secretary with respect to credit card transactions in payment of 
        internal revenue taxes (or payment for internal revenue stamps), 
        and
            (E) notwithstanding any other provision of law to the 
        contrary, in the case of payment made by credit card or debit 
        card transaction of an amount owed to a person as the result of 
        the correction of an error under section 161 of the Truth in 
        Lending Act (15 U.S.C. 1666) or section 908 of the Electronic 
        Fund Transfer Act (15 U.S.C. 1693f), the Secretary is authorized 
        to provide such amount to such person as a credit to that 
        person's credit card or debit card account through the 
        applicable credit card or debit card system.

(e) Confidentiality of information

                           (1) In general

        Except as otherwise authorized by this subsection, no person may 
    use or disclose any information relating to credit or debit card 
    transactions obtained pursuant to section 6103(k)(9) other than for 
    purposes directly related to the processing of such transactions, or 
    the billing or collection of amounts charged or debited pursuant 
    thereto.

                           (2) Exceptions

        (A) Debit or credit card issuers or others acting on behalf of 
    such issuers may also use and disclose such information for purposes 
    directly related to servicing an issuer's accounts.
        (B) Debit or credit card issuers or others directly involved in 
    the processing of credit or debit card transactions or the billing 
    or collection of amounts charged or debited thereto may also use and 
    disclose such information for purposes directly related to--
            (i) statistical risk and profitability assessment;
            (ii) transferring receivables, accounts, or interest 
        therein;
            (iii) auditing the account information;
            (iv) complying with Federal, State, or local law; and
            (v) properly authorized civil, criminal, or regulatory 
        investigation by Federal, State, or local authorities.

                           (3) Procedures

        Use and disclosure of information under this paragraph shall be 
    made only to the extent authorized by written procedures promulgated 
    by the Secretary.

                         (4) Cross reference

            For provision providing for civil damages for violation of 
        paragraph (1), see section 7431.

(Aug. 16, 1954, ch. 736, 68A Stat. 777; Pub. L. 94-455, title XIX, 
Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 98-369, div. 
A, title IV, Sec. 448(a), July 18, 1984, 98 Stat. 817; Pub. L. 105-34, 
title XII, Sec. 1205(a), Aug. 5, 1997, 111 Stat. 995; Pub. L. 105-206, 
title VI, Sec. 6012(b)(1), July 22, 1998, 112 Stat. 819; Pub. L. 105-
277, div. J, title IV, Sec. 4003(k), Oct. 21, 1998, 112 Stat. 2681-910.)


                               Amendments

    1998--Subsec. (d)(2). Pub. L. 105-277 substituted ``under any such 
contract for the use of credit, debit, or charge cards for the payment 
of taxes imposed by subtitle A'' for ``under such contracts''.
    Subsec. (e)(1). Pub. L. 105-206 substituted ``section 6103(k)(9)'' 
for ``section 6103(k)(8)''.
    1997--Pub. L. 105-34 amended section catchline and text generally, 
substituting provisions relating to payment of tax by commercially 
acceptable means for provisions consisting of subsecs. (a) and (b) 
relating to payment by check or money order and liability if a check or 
money order received is not duly paid.
    1984--Subsec. (b)(2). Pub. L. 98-369 substituted ``or cashier's 
check (or other guaranteed draft)'' for ``or cashier's check'', ``the 
amount of such check (or draft)'' for ``the amount of such check'', and 
``the financial institution'' for ``the bank or trust company'', and 
substituted ``such financial institution'' for ``such bank'' in two 
places.
    1976--Subsec. (a). Pub. L. 94-455 struck out ``or his delegate'' 
after ``Secretary'' wherever appearing.


                    Effective Date of 1998 Amendments

    Amendment by Pub. L. 105-277 effective as if included in the 
provision of the Taxpayer Relief Act of 1997, Pub. L. 105-34, to which 
such amendment relates, see section 4003(l) of Pub. L. 105-277, set out 
as a note under section 86 of this title.
    Amendment by Pub. L. 105-206 effective, except as otherwise 
provided, as if included in the provisions of the Taxpayer Relief Act of 
1997, Pub. L. 105-34, to which such amendment relates, see section 6024 
of Pub. L. 105-206, set out as a note under section 1 of this title.


                    Effective Date of 1997 Amendment

    Amendment by Pub. L. 105-34 effective on the day 9 months after Aug. 
5, 1997, see section 1205(d) of Pub. L. 105-34, set out as a note under 
section 6103 of this title.


                    Effective Date of 1984 Amendment

    Section 448(b) of Pub. L. 98-369 provided that: ``The amendments 
made by subsection (a) [amending this section] shall take effect on the 
date of the enactment of this Act [July 18, 1984].''


                               Regulations

    Pub. L. 105-206, title III, Sec. 3703, July 22, 1998, 112 Stat. 777, 
provided that: ``The Secretary of the Treasury or the Secretary's 
delegate shall establish such rules, regulations, and procedures as are 
necessary to allow payment of taxes by check or money order made payable 
to the United States Treasury.''


                   Required Notice of Certain Payments

    Pub. L. 104-168, title XII, Sec. 1202, July 30, 1996, 110 Stat. 
1470, provided that: ``If any payment is received by the Secretary of 
the Treasury or his delegate from any taxpayer and the Secretary cannot 
associate such payment with such taxpayer, the Secretary shall make 
reasonable efforts to notify the taxpayer of such inability within 60 
days after the receipt of such payment.''

                  Section Referred to in Other Sections

    This section is referred to in sections 6103, 6201, 7431 of this 
title.
