
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: 26USC7403]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                Subtitle F--Procedure and Administration
 
                    CHAPTER 76--JUDICIAL PROCEEDINGS
 
            Subchapter A--Civil Actions by the United States
 
Sec. 7403. Action to enforce lien or to subject property to 
        payment of tax
        

(a) Filing

    In any case where there has been a refusal or neglect to pay any 
tax, or to discharge any liability in respect thereof, whether or not 
levy has been made, the Attorney General or his delegate, at the request 
of the Secretary, may direct a civil action to be filed in a district 
court of the United States to enforce the lien of the United States 
under this title with respect to such tax or liability or to subject any 
property, of whatever nature, of the delinquent, or in which he has any 
right, title, or interest, to the payment of such tax or liability. For 
purposes of the preceding sentence, any acceleration of payment under 
section 6166(g) shall be treated as a neglect to pay tax.

(b) Parties

    All persons having liens upon or claiming any interest in the 
property involved in such action shall be made parties thereto.

(c) Adjudication and decree

    The court shall, after the parties have been duly notified of the 
action, proceed to adjudicate all matters involved therein and finally 
determine the merits of all claims to and liens upon the property, and, 
in all cases where a claim or interest of the United States therein is 
established, may decree a sale of such property, by the proper officer 
of the court, and a distribution of the proceeds of such sale according 
to the findings of the court in respect to the interests of the parties 
and of the United States. If the property is sold to satisfy a first 
lien held by the United States, the United States may bid at the sale 
such sum, not exceeding the amount of such lien with expenses of sale, 
as the Secretary directs.

(d) Receivership

    In any such proceeding, at the instance of the United States, the 
court may appoint a receiver to enforce the lien, or, upon certification 
by the Secretary during the pendency of such proceedings that it is in 
the public interest, may appoint a receiver with all the powers of a 
receiver in equity.

(Aug. 16, 1954, ch. 736, 68A Stat. 874; Pub. L. 89-719, title I, 
Sec. 107(b), Nov. 2, 1966, 80 Stat. 1140; Pub. L. 94-455, title XIX, 
Sec. 1906(b)(13)(A), title XX, Sec. 2004(f)(2), Oct. 4, 1976, 90 Stat. 
1834, 1872; Pub. L. 97-34, title IV, Sec. 422(e)(8), Aug. 13, 1981, 95 
Stat. 316.)


                               Amendments

    1981--Subsec. (a). Pub. L. 97-34 struck out ``or 6166A(h)'' after 
``section 6166(g)''.
    1976--Subsec. (a). Pub. L. 94-455, Secs. 1906(b)(13)(A), 2004(f)(2), 
struck out ``or his delegate'' after ``Secretary'' and inserted 
provisions relating to the acceleration of payment under section 6166(g) 
or 6166A(h).
    Subsecs. (c), (d). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck out 
``or his delegate'' after ``Secretary''.
    1966--Subsec. (c). Pub. L. 89-719 inserted sentence permitting the 
United States, if the property is sold to satisfy a first lien held by 
the United States, to bid at the sale such sum, not more than the amount 
of such lien with expenses of sale, as the Secretary or his delegate 
directs.


                    Effective Date of 1981 Amendment

    Amendment by Pub. L. 97-34 applicable to estates of decedents dying 
after Dec. 31, 1981, see section 422(f)(1) of Pub. L. 97-34, set out as 
a note under section 6166 of this title.


                    Effective Date of 1966 Amendment

    Amendment by Pub. L. 89-719 applicable after Nov. 2, 1966, 
regardless of when title or lien of United States arose or when lien or 
interest of another person was acquired, with certain exceptions, see 
section 114(a)-(c) of Pub. L. 89-719, set out as a note under section 
6323 of this title.
