
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: 26USC6867]

 
                     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
        

(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 assessing

    In 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).

(c) Effect of later substitution of true owner

    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) Definitions

    For purposes of this section--

                              (1) Cash

        The term ``cash'' includes any cash equivalent.

                         (2) 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.

                    (3) Value of cash equivalent

        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.

(Added Pub. L. 97-248, title III, Sec. 330(a), Sept. 3, 1982, 96 Stat. 
619; amended Pub. L. 100-647, title I, Sec. 1001(a)(1), Nov. 10, 1988, 
102 Stat. 3349.)


                               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 Amendment

    Amendment 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 Date

    Section 330(c) of Pub. L. 97-248 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].''
