
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: 26USC6851]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                Subtitle F--Procedure and Administration
 
                CHAPTER 70--JEOPARDY, RECEIVERSHIPS, ETC.
 
                         Subchapter A--Jeopardy
 
                   PART I--TERMINATION OF TAXABLE YEAR
 
Sec. 6851. Termination assessments of income tax


(a) Authority for making

                           (1) In general

        If the Secretary finds that a taxpayer designs quickly to depart 
    from the United States or to remove his property therefrom, or to 
    conceal himself or his property therein, or to do any other act 
    (including in the case of a corporation distributing all or a part 
    of its assets in liquidation or otherwise) tending to prejudice or 
    to render wholly or partially ineffectual proceedings to collect the 
    income tax for the current or the immediately preceding taxable year 
    unless such proceeding be brought without delay, the Secretary shall 
    immediately make a determination of tax for the current taxable year 
    or for the preceding taxable year, or both, as the case may be, and 
    notwithstanding any other provision of law, such tax shall become 
    immediately due and payable. The Secretary shall immediately assess 
    the amount of the tax so determined (together with all interest, 
    additional amounts, and additions to the tax provided by law) for 
    the current taxable year or such preceding taxable year, or both, as 
    the case may be, and shall cause notice of such determination and 
    assessment to be given the taxpayer, together with a demand for 
    immediate payment of such tax.

                       (2) Computation of tax

        In the case of a current taxable year, the Secretary shall 
    determine the tax for the period beginning on the first day of such 
    current taxable year and ending on the date of the determination 
    under paragraph (1) as though such period were a taxable year of the 
    taxpayer, and shall take into account any prior determination made 
    under this subsection with respect to such current taxable year.

                 (3) Treatment of amounts collected

        Any amounts collected as a result of any assessments under this 
    subsection shall, to the extent thereof, be treated as a payment of 
    tax for such taxable year.

      (4) This section inapplicable where section 6861 applies

        This section shall not authorize any assessment of tax for the 
    preceding taxable year which is made after the due date of the 
    taxpayer's return for such taxable year (determined with regard to 
    any extensions).

(b) Notice of deficiency

    If an assessment of tax is made under the authority of subsection 
(a), the Secretary shall mail a notice under section 6212(a) for the 
taxpayer's full taxable year (determined without regard to any action 
taken under subsection (a)) with respect to which such assessment was 
made within 60 days after the later of (i) the due date of the 
taxpayer's return for such taxable year (determined with regard to any 
extensions), or (ii) the date such taxpayer files such return. Such 
deficiency may be in an amount greater or less than the amount assessed 
under subsection (a).

(c) Citizens

    In the case of a citizen of the United States or of a possession of 
the United States about to depart from the United States, the Secretary 
may, at his discretion, waive any or all of the requirements placed on 
the taxpayer by this section.

(d) Departure of alien

    Subject to such exceptions as may, by regulations, be prescribed by 
the Secretary--
        (1) No alien shall depart from the United States unless he first 
    procures from the Secretary a certificate that he has complied with 
    all the obligations imposed upon him by the income tax laws.
        (2) Payment of taxes shall not be enforced by any proceedings 
    under the provisions of this section prior to the expiration of the 
    time otherwise allowed for paying such taxes if, in the case of an 
    alien about to depart from the United States, the Secretary 
    determines that the collection of the tax will not be jeopardized by 
    the departure of the alien.

(e) Sections 6861(f) and (g) to apply

    The provisions of section 6861(f) (relating to collection of unpaid 
amounts) and 6861(g) (relating to abatement if jeopardy does not exist) 
shall apply with respect to any assessment made under subsection (a).

(f) Cross references

            (1) For provisions permitting immediate levy in case of 
        jeopardy, see section 6331(a).
            (2) For provisions relating to the review of jeopardy, see 
        section 7429.

(Aug. 16, 1954, ch. 736, 68A Stat. 833; Pub. L. 85-866, title I, 
Sec. 87, Sept. 2, 1958, 72 Stat. 1665; Pub. L. 94-455, title XII, 
Sec. 1204(b), title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 
1696, 1834.)


                               Amendments

    1976--Pub. L. 94-455, Sec. 1204(b)(1), substituted ``assessments of 
income tax'' for ``of taxable year'' in section catchline.
    Subsec. (a). Pub. L. 94-455, Sec. 1204(b)(1), revised pars. (1) and 
(2) to provide that a termination assessment does not end the taxable 
year for any purpose other than the computation of the amount of tax to 
be assessed and collected and to set out the method for determining the 
tax for the current taxable year, and added pars. (3) and (4).
    Subsec. (b). Pub. L. 94-455, Sec. 1204(b)(1), substituted provisions 
for the mailing of a notice of deficiency for provisions for the 
reopening of taxable period.
    Subsecs. (c), (d). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck out 
``or his delegate'' after ``Secretary'' wherever appearing.
    Subsec. (e). Pub. L. 94-455, Sec. 1204(b)(2), substituted provisions 
making section 6861(f) and (g) applicable with respect to assessments 
under subsec. (a).
    Subsec. (f). Pub. L. 94-455, Sec. 1204(b)(2), added subsec. (f).
    1958--Subsec. (d). Pub. L. 85-866 designated existing provisions as 
par. (1), inserted opening provisions, and added par. (2).


                    Effective Date of 1976 Amendment

    Section 1204(d) of Pub. L. 94-455, as amended by Pub. L. 94-528, 
Sec. 2(a), Oct. 17, 1976, 90 Stat. 2483; Pub. L. 99-514, Sec. 2, Oct. 
22, 1986, 100 Stat. 2095, provided that: ``The amendments made by this 
section [enacting section 7429 of this title and amending this section 
and sections 443, 6091, 6211, 6213, 6863, 7103, and 7421 of this title] 
apply with respect to action taken under section 6851, 6861, or 6862 of 
the Internal Revenue Code of 1986 [formerly I.R.C. 1954] where the 
notice and demand takes place after February 28, 1977.''


                    Effective Date of 1958 Amendment

    Amendment by Pub. L. 85-866 effective Aug. 17, 1954, see section 
1(c)(2) of Pub. L. 85-866, set out as a note under section 165 of this 
title.

                  Section Referred to in Other Sections

    This section is referred to in sections 6015, 6211, 6231, 6234, 
6852, 6863, 6867, 7429, 7508, 7611 of this title; title 5 section 5568; 
title 37 section 558.
