
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC6863]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                Subtitle F--Procedure and Administration
 
                CHAPTER 70--JEOPARDY, RECEIVERSHIPS, ETC.
 
                         Subchapter A--Jeopardy
 
                      PART II--JEOPARDY ASSESSMENTS
 
Sec. 6863. Stay of collection of jeopardy assessments


(a) Bond to stay collection

    When an assessment has been made under section 6851, 6852,,\1\ 6861 
or 6862, the collection of the whole or any amount of such assessment 
may be stayed by filing with the Secretary, within such time as may be 
fixed by regulations prescribed by the Secretary, a bond in an amount 
equal to the amount as to which the stay is desired, conditioned upon 
the payment of the amount (together with interest thereon) the 
collection of which is stayed, at the time at which, but for the making 
of such assessment, such amount would be due. Upon the filing of the 
bond the collection of so much of the amount assessed as is covered by 
the bond shall be stayed. The taxpayer shall have the right to waive 
such stay at any time in respect of the whole or any part of the amount 
covered by the bond, and if as a result of such waiver any part of the 
amount covered by the bond is paid, then the bond shall, at the request 
of the taxpayer, be proportionately reduced. If any portion of such 
assessment is abated, the bond shall, at the request of the taxpayer, be 
proportionately reduced.
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    \1\ So in original.
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(b) Further conditions in case of income, estate, or gift taxes

    In the case of taxes subject to the jurisdiction of the Tax Court--

                 (1) Prior to petition to Tax Court

        If the bond is given before the taxpayer has filed his petition 
    under section 6213(a), the bond shall contain a further condition 
    that if a petition is not filed within the period provided in such 
    section, then the amount, the collection of which is stayed by the 
    bond, will be paid on notice and demand at any time after the 
    expiration of such period, together with interest thereon from the 
    date of the jeopardy notice and demand to the date of notice and 
    demand under this paragraph.

                  (2) Effect of Tax Court decision

        The bond shall be conditioned upon the payment of so much of 
    such assessment (collection of which is stayed by the bond) as is 
    not abated by a decision of the Tax Court which has become final. If 
    the Tax Court determines that the amount assessed is greater than 
    the amount which should have been assessed, then when the decision 
    of the Tax Court is rendered the bond shall, at the request of the 
    taxpayer, be proportionately reduced.

       (3) Stay of sale of seized property pending Tax Court 
                                  decision

        (A) General rule

            Where, notwithstanding the provisions of section 6213(a), an 
        assessment has been made under section 6851, 6852, or 6861, the 
        property seized for the collection of the tax shall not be 
        sold--
                (i) before the expiration of the periods described in 
            subsection (c)(1)(A) and (B),
                (ii) before the issuance of the notice of deficiency 
            described in section 6851(b) or 6861(b), and the expiration 
            of the period provided in section 6213(a) for filing a 
            petition with the Tax Court, and
                (iii) if a petition is filed with the Tax Court (whether 
            before or after the making of such assessment), before the 
            expiration of the period during which the assessment of the 
            deficiency would be prohibited if neither sections 6851(a), 
            6852(a), nor 6861(a) were applicable.

        Clauses (ii) and (iii) shall not apply in the case of a 
        termination assessment under section 6851 if the taxpayer does 
        not file a return for the taxable year by the due date 
        (determined with regard to any extensions).

        (B) Exceptions

            Such property may be sold if--
                (i) the taxpayer consents to the sale,
                (ii) the Secretary determines that the expenses of 
            conservation and maintenance will greatly reduce the net 
            proceeds, or
                (iii) the property is of the type described in section 
            6336.

        (C) Review by Tax Court

            If, but for the application of subparagraph (B), a sale 
        would be prohibited by subparagraph (A)(iii), then the Tax Court 
        shall have jurisdiction to review the Secretary's determination 
        under subparagraph (B) that the property may be sold. Such 
        review may be commenced upon motion by either the Secretary or 
        the taxpayer. An order of the Tax Court disposing of a motion 
        under this paragraph shall be reviewable in the same manner as a 
        decision of the Tax Court.

(c) Stay of sale of seized property pending district court determination 
        under section 7429

                          (1) General rule

        Where a jeopardy assessment has been made under section 6862(a), 
    the property seized for the collection of the tax shall not be 
    sold--
            (A) if a civil action is commenced in accordance with 
        section 7429(b), on or before the day on which the district 
        court judgment in such action becomes final, or
            (B) if subparagraph (A) does not apply, before the day after 
        the expiration of the period provided in section 7429(a) for 
        requesting an administrative review, and if such review is 
        requested, before the day after the expiration of the period 
        provided in section 7429(b), for commencing an action in the 
        district court.

                           (2) Exceptions

        With respect to any property described in paragraph (1), the 
    exceptions provided by subsection (b)(3)(B) shall apply.

(Aug. 16, 1954, ch. 736, 68A Stat. 836; Pub. L. 94-455, title XII, 
Sec. 1204(c)(7)-(9), title XIX, Sec. 1906(a)(38), (b)(13)(A), Oct. 4, 
1976, 90 Stat. 1698, 1830, 1834; Pub. L. 100-203, title X, 
Sec. 10713(b)(2)(E), Dec. 22, 1987, 101 Stat. 1330-470; Pub. L. 100-647, 
title VI, Sec. 6245(a), Nov. 10, 1988, 102 Stat. 3750; Pub. L. 101-239, 
title VII, Sec. 7822(d)(2), Dec. 19, 1989, 103 Stat. 2425.)


                               Amendments

    1989--Subsec. (b)(3)(A)(iii). Pub. L. 101-239 made technical 
correction to Pub. L. 100-203, Sec. 10713(b)(2)(E)(iii), see 1987 
Amendment note below.
    1988--Subsec. (b)(3)(C). Pub. L. 100-647 added subpar. (C).
    1987--Subsec. (a). Pub. L. 100-203, Sec. 10713(b)(2)(E)(i), 
substituted ``6851, 6852,'' for ``6851''.
    Subsec. (b)(3)(A). Pub. L. 100-203, Sec. 10713(b)(2)(E)(ii), 
substituted ``6851, 6852, or 6861'' for ``6851 or 6861''.
    Subsec. (b)(3)(A)(iii). Pub. L. 100-203, Sec. 10713(b)(2)(E)(iii), 
as amended by Pub. L. 101-239, substituted ``6851(a), 6852(a), nor 
6861(a)'' for ``6851(a) nor 6861(a)''.
    1976--Subsec. (a). Pub. L. 94-455, Secs. 1204(c)(7), 1906(b)(13)(A), 
inserted reference to section 6851, substituted ``an assessment'' for 
``a jeopardy assessment'', struck out ``or his delegate'' after 
``Secretary'', and substituted ``such assessment'' for ``the jeopardy 
assessment''.
    Subsec. (b)(3)(A). Pub. L. 94-455, Sec. 1204(c)(8), substituted ``an 
assessment has been made under section 6851 or 6861,'' for ``a jeopardy 
assessment has been made under section 6861'' in provisions preceding 
cl. (i), added cl. (i), redesignated former cl. (i) as (ii) and 
substituted ``before the issuance of the notice of deficiency described 
in section 6851(b) or 6861(b), and the expiration of the period'' for 
``if section 6861(b) is applicable, prior to the issuance of the notice 
of deficiency and the expiration of the time'', redesignated former cl. 
(ii) as (iii) and substituted ``assessment), before the expiration'' for 
``jeopardy assessment under section 6861), prior to the expiration'' and 
``if neither sections 6851(a) nor 6861(a) were applicable'' for ``if 
section 6861(a) were not applicable'', and inserted provisions following 
cl. (iii).
    Subsec. (b)(3)(B)(ii). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck 
out ``or his delegate'' after ``Secretary''.
    Subsec. (b)(3)(C). Pub. L. 94-455, Sec. 1906(a)(38), struck out 
subpar. (C) which had limited the applicability of subpars. (A) and (B) 
to jeopardy assessments made on or after Jan. 1, 1955, with respect to 
taxes imposed by this title, and with respect to taxes imposed by the 
Internal Revenue Code of 1939.
    Subsec. (c). Pub. L. 94-455, Sec. 1204(c)(9), added subsec. (c).


                    Effective Date of 1989 Amendment

    Amendment by Pub. L. 101-239 effective as if included in the 
provision of the Revenue Act of 1987, Pub. L. 100-203, title X, to which 
such amendment relates, see section 7823 of Pub. L. 101-239, set out as 
a note under section 26 of this title.


                    Effective Date of 1988 Amendment

    Section 6245(b) of Pub. L. 100-647 provided that: ``The amendments 
made by this section [amending this section] shall take effect on the 
90th day after the date of the enactment of this Act [Nov. 10, 1988].''


                    Effective Date of 1976 Amendment

    Amendment by section 1204(c)(7)-(9) of Pub. L. 94-455 applicable 
with respect to action taken under section 6851, 6861, or 6862 of this 
title where notice and demand takes place after Feb. 28, 1977, see 
section 1204(d) of Pub. L. 94-455, as amended, set out as a note under 
section 6851 of this title.
    Amendment by section 1906(a)(38), (b)(13)(A) of Pub. L. 94-455 
effective on first day of first month which begins more than ninety days 
after Oct. 4, 1976, see section 1906(d)(1) of Pub. L. 94-455, set out as 
a note under section 6013 of this title.

                  Section Referred to in Other Sections

    This section is referred to in sections 6861, 7103 of this title.
