
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: 26USC7447]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                Subtitle F--Procedure and Administration
 
                    CHAPTER 76--JUDICIAL PROCEEDINGS
 
                       Subchapter C--The Tax Court
 
                  PART I--ORGANIZATION AND JURISDICTION
 
Sec. 7447. Retirement


(a) Definitions

    For purposes of this section--
        (1) The term ``Tax Court'' means the United States Tax Court.
        (2) The term ``judge'' means the chief judge or a judge of the 
    Tax Court; but such term does not include any individual performing 
    judicial duties pursuant to subsection (c).
        (3) In any determination of length of service as judge there 
    shall be included all periods (whether or not consecutive) during 
    which an individual served as judge, as judge of the Tax Court of 
    the United States, or as a member of the Board of Tax Appeals.

(b) Retirement

        (1) Any judge shall retire upon attaining the age of 70.
        (2) Any judge who meets the age and service requirements set 
    forth in the following table may retire:
                                                           And the years
                                                           of service as
  The judge has                                              a judge are
    attained age:                                              at least:
            65..................................                 15     
            66..................................                 14     
            67..................................                 13     
            68..................................                 12     
            69..................................                 11     
            70..................................                 10.    

        (3) Any judge who is not reappointed following the expiration of 
    the term of his office may retire upon the completion of such term, 
    if (A) he has served as a judge of the Tax Court for 15 years or 
    more and (B) not earlier than 9 months preceding the date of the 
    expiration of the term of his office and not later than 6 months 
    preceding such date, he advised the President in writing that he was 
    willing to accept reappointment to the Tax Court.
        (4) Any judge who becomes permanently disabled from performing 
    his duties shall retire.

Section 8335(a) of title 5 of the United States Code (relating to 
automatic separation from the service) shall not apply in respect of 
judges. Any judge who retires shall be designated ``senior judge''.

(c) Recalling of retired judges

    At or after his retirement, any individual who has elected to 
receive retired pay under subsection (d) may be called upon by the chief 
judge of the Tax Court to perform such judicial duties with the Tax 
Court as may be requested of him for any period or periods specified by 
the chief judge; except that in the case of any such individual--
        (1) the aggregate of such periods in any one calendar year shall 
    not (without his consent) exceed 90 calendar days; and
        (2) he shall be relieved of performing such duties during any 
    period in which illness or disability precludes the performance of 
    such duties.

Any act, or failure to act, by an individual performing judicial duties 
pursuant to this subsection shall have the same force and effect as if 
it were the act (or failure to act) of a judge of the Tax Court; but any 
such individual shall not be counted as a judge of the Tax Court for 
purposes of section 7443(a). Any individual who is performing judicial 
duties pursuant to this subsection shall be paid the same compensation 
(in lieu of retired pay) and allowances for travel and other expenses as 
a judge.

(d) Retired pay

    Any individual who--
        (1) retires under paragraph (1), (2), or (3) of subsection (b) 
    and elects under subsection (e) to receive retired pay under this 
    subsection shall receive retired pay during any period at a rate 
    which bears the same ratio to the rate of the salary payable to a 
    judge during such period as the number of years he has served as 
    judge bears to 10; except that the rate of such retired pay shall 
    not be more than the rate of such salary for such period; or
        (2) retires under paragraph (4) of subsection (b) and elects 
    under subsection (e) to receive retired pay under this subsection 
    shall receive retired pay during any period at a rate--
            (A) equal to the rate of the salary payable to a judge 
        during such period if before he retired he had served as a judge 
        not less than 10 years; or
            (B) one-half of the rate of the salary payable to a judge 
        during such period if before he retired he had served as a judge 
        less than 10 years.

Such retired pay shall begin to accrue on the day following the day on 
which his salary as judge ceases to accrue, and shall continue to accrue 
during the remainder of his life. Retired pay under this subsection 
shall be paid in the same manner as the salary of a judge. In computing 
the rate of the retired pay under paragraph (1) of this subsection for 
any individual who is entitled thereto, that portion of the aggregate 
number of years he has served as a judge which is a fractional part of 1 
year shall be eliminated if it is less than 6 months, or shall be 
counted as a full year if it is 6 months or more. In computing the rate 
of the retired pay under paragraph (1) of this subsection for any 
individual who is entitled thereto, any period during which such 
individual performs services under subsection (c) on a substantially 
full-time basis shall be treated as a period during which he has served 
as a judge.

(e) Election to receive retired pay

    Any judge may elect to receive retired pay under subsection (d). 
Such an election--
        (1) may be made only while an individual is a judge (except that 
    in the case of an individual who fails to be reappointed as judge at 
    the expiration of a term of office, it may be made at any time 
    before the day after the day on which his successor takes office);
        (2) once made, shall be irrevocable;
        (3) in the case of any judge other than the chief judge, shall 
    be made by filing notice thereof in writing with the chief judge; 
    and
        (4) in the case of the chief judge, shall be made by filing 
    notice thereof in writing with the Office of Personnel Management.

The chief judge shall transmit to the Office of Personnel Management a 
copy of each notice filed with him under this subsection.

(f) Retired pay affected in certain cases

    In the case of an individual for whom an election to receive retired 
pay under subsection (d) is in effect--

    (1) 1-year forfeiture for failure to perform judicial duties

        If such individual during any calendar year fails to perform 
    judicial duties required of him by subsection (c), such individual 
    shall forfeit all rights to retired pay under subsection (d) for the 
    1-year period which begins on the 1st day on which he so fails to 
    perform such duties.

     (2) Permanent forfeiture of retired pay where certain non-
                        Government services performed

        If such individual performs (or supervises or directs the 
    performance of) legal or accounting services in the field of Federal 
    taxation for his client, his employer, or any of his employer's 
    clients, such individual shall forfeit all rights to retired pay 
    under subsection (d) for all periods beginning on or after the 1st 
    day on which he engages in any such activity. The preceding sentence 
    shall not apply to any civil office or employment under the 
    Government of the United States.

     (3) Suspension of retired pay during period of compensated 
                             Government service

        If such individual accepts compensation for civil office or 
    employment under the Government of the United States (other than the 
    performance of judicial duties pursuant to subsection (c)), such 
    individual shall forfeit all rights to retired pay under subsection 
    (d) for the period for which such compensation is received.

    (4) Forfeitures of retired pay under paragraphs (1) and (2) 
               not to apply where individual elects to freeze 
                            amount of retired pay

        (A) In general

            If any individual makes an election under this paragraph--
                (i) paragraphs (1) and (2) (and subsection (c)) shall 
            not apply to such individual beginning on the date such 
            election takes effect, and
                (ii) the retired pay under subsection (d) payable to 
            such individual for periods beginning on or after the date 
            such election takes effect shall be equal to the retired pay 
            to which such individual would be entitled without regard to 
            this clause at the time of such election.

        (B) Election

            An election under this paragraph--
                (i) may be made by an individual only if such individual 
            meets the age and service requirements for retirement under 
            paragraph (2) of subsection (b),
                (ii) may be made only during the period during which the 
            individual may make an election to receive retired pay or 
            while the individual is receiving retired pay, and
                (iii) shall be made in the same manner as the election 
            to receive retired pay.

        Such an election, once it takes effect, shall be irrevocable.

        (C) When election takes effect

            Any election under this paragraph shall take effect on the 
        1st day of the 1st month following the month in which the 
        election is made.

(g) Coordination with civil service retirement

                          (1) General rule

        Except as otherwise provided in this subsection, the provisions 
    of the civil service retirement laws (including the provisions 
    relating to the deduction and withholding of amounts from basic pay, 
    salary, and compensation) shall apply in respect of service as a 
    judge (together with other service as an officer or employee to whom 
    such civil service retirement laws apply) as if this section had not 
    been enacted.

                 (2) Effect of electing retired pay

        In the case of any individual who has filed an election to 
    receive retired pay under subsection (d)--
            (A) no annuity or other payment shall be payable to any 
        person under the civil service retirement laws with respect to 
        any service performed by such individual (whether performed 
        before or after such election is filed and whether performed as 
        judge or otherwise);
            (B) no deduction for purposes of the Civil Service 
        Retirement and Disability Fund shall be made from retired pay 
        payable to him under subsection (d) or from any other salary, 
        pay, or compensation payable to him, for any period beginning 
        after the day on which such election is filed; and
            (C) such individual shall be paid the lump-sum credit 
        computed under section 8331(8) of title 5 of the United States 
        Code upon making application therefor with the Office of 
        Personnel Management.

(h) Retirement for disability

    (1) Any judge who becomes permanently disabled from performing his 
duties shall certify to the President his disability in writing. If the 
chief judge retires for disability, his retirement shall not take effect 
until concurred in by the President. If any other judge retires for 
disability, he shall furnish to the President a certificate of 
disability signed by the chief judge.
    (2) Whenever any judge who becomes permanently disabled from 
performing his duties does not retire and the President finds that such 
judge is unable to discharge efficiently all the duties of his office by 
reason of permanent mental or physical disability and that the 
appointment of an additional judge is necessary for the efficient 
dispatch of business, the President shall declare such judge to be 
retired.

(i) Revocation of election to receive retired pay

                           (1) In general

        Notwithstanding subsection (e)(2), an individual who has filed 
    an election to receive retired pay under subsection (d) may revoke 
    such election at any time before the first day on which retired pay 
    (or compensation under subsection (c) in lieu of retired pay) would 
    (but for such revocation) begin to accrue with respect to such 
    individual.

                       (2) Manner of revoking

        Any revocation under this subsection shall be made by filing a 
    notice thereof in writing with the Civil Service Commission. The 
    Civil Service Commission shall transmit to the chief judge a copy of 
    each notice filed under this subsection.

                      (3) Effect of revocation

        In the case of any revocation under this subsection--
            (A) for purposes of this section, the individual shall be 
        treated as not having filed an election to receive retired pay 
        under subsection (d),
            (B) for purposes of section 7448--
                (i) the individual shall be treated as not having filed 
            an election under section 7448(b), and
                (ii) section 7448(g) shall not apply, and the amount 
            credited to such individual's account (together with 
            interest at 4 percent per annum to December 31, 1947, and 3 
            percent per annum thereafter, compounded on December 31 of 
            each year to the date on which the revocation is filed) 
            shall be returned to such individual,

            (C) no credit shall be allowed for any service as a judge of 
        the Tax Court unless with respect to such service either there 
        has been deducted and withheld the amount required by the civil 
        service retirement laws or there has been deposited in the Civil 
        Service Retirement and Disability Fund an amount equal to the 
        amount so required, with interest,
            (D) the Tax Court shall deposit in the Civil Service 
        Retirement and Disability Fund an amount equal to the additional 
        amount it would have contributed to such Fund but for the 
        election under subsection (e), and
            (E) if subparagraph (D) is complied with, service on the Tax 
        Court shall be treated as service with respect to which 
        deductions and contributions had been made during the period of 
        service.

(Aug. 16, 1954, ch. 736, 68A Stat. 880; Pub. L. 89-354, Sec. 1, Feb. 2, 
1966, 80 Stat. 5; Pub. L. 91-172, title IX, Secs. 954, 960(c), (d), Dec. 
30, 1969, 83 Stat. 730, 734; Pub. L. 92-41, Sec. 4(a), July 1, 1971, 85 
Stat. 99; Pub. L. 95-472, Sec. 1, Oct. 17, 1978, 92 Stat. 1332; Pub. L. 
97-362, title I, Sec. 106(d), Oct. 25, 1982, 96 Stat. 1730; Pub. L. 99-
514, title XV, Sec. 1557(a), (b), (d), Oct. 22, 1986, 100 Stat. 2756, 
2757; Pub. L. 100-647, title I, Sec. 1015(k)(1), Nov. 10, 1988, 102 
Stat. 3571.)

                       References in Text

    The civil service retirement laws, referred to in subsecs. (g)(2)(A) 
and (i)(3)(C), are classified generally to subchapter III (Sec. 8331 et 
seq.) of chapter 83 of Title 5, Government Organization and Employees.
    The Civil Service Retirement and Disability Fund, referred to in 
subsecs. (g)(2)(B) and (i)(3)(C), (D), is provided for in section 8348 
of Title 5.


                               Amendments

    1988--Subsec. (d). Pub. L. 100-647 inserted at end ``In computing 
the rate of the retired pay under paragraph (1) of this subsection for 
any individual who is entitled thereto, any period during which such 
individual performs services under subsection (c) on a substantially 
full-time basis shall be treated as a period during which he has served 
as a judge.''
    1986--Subsec. (a)(2), (3), (5). Pub. L. 99-514, Sec. 1557(d)(1), 
redesignated pars. (3) and (5) as (2) and (3), respectively, and struck 
out former par. (2) which read as follows: ``The term `Civil Service 
Commission' means the United States Civil Service Commission.''
    Subsec. (b)(2). Pub. L. 99-514, Sec. 1557(a), amended par. (2) 
generally. Prior to amendment, par. (2) read as follows: ``Any judge who 
has attained the age of 65 may retire any time after serving as judge 
for 15 years or more.''
    Subsec. (e). Pub. L. 99-514, Sec. 1557(d)(2), substituted ``Office 
of Personnel Management'' for ``Civil Service Commission'' in par. (4) 
and in last sentence.
    Subsec. (f). Pub. L. 99-514, Sec. 1557(b), amended subsec. (f) 
generally. Prior to amendment, subsec. (f), individuals receiving 
retired pay to be available for recall, read as follows: ``Any 
individual who has elected to receive retired pay under subsection (d) 
who thereafter--
        ``(1) accepts civil office or employment under the Government of 
    the United States (other than the performance of judicial duties 
    pursuant to subsection (c)); or
        ``(2) performs (or supervises or directs the performance of) 
    legal or accounting services in the field of Federal taxation or in 
    the field of the renegotiation of Federal contracts for his client, 
    his employer, or any of his employer's clients,
shall forfeit all rights to retired pay under subsection (d) for all 
periods beginning on or after the first day on which he accepts such 
office or employment or engages in any activity described in paragraph 
(2). Any individual who has elected to receive retired pay under 
subsection (d) who thereafter during any calendar year fails to perform 
judicial duties required of him by subsection (c) shall forfeit all 
rights to retired pay under subsection (d) for the 1-year period which 
begins on the first day on which he so fails to perform such duties.''
    Subsec. (g)(2)(C). Pub. L. 99-514, Sec. 1557(d)(3), substituted 
``Office of Personnel Management'' for ``Civil Service Commission''.
    1982--Subsec. (b). Pub. L. 97-362 inserted provision that any judge 
who retires shall be designated ``senior judge''.
    1978--Subsec. (i). Pub. L. 95-472 added subsec. (i).
    1971--Subsec. (c). Pub. L. 92-41 substituted ``At or after his 
retirement, any individual who has elected to receive'' for ``Any 
individual who is receiving''.
    1969--Subsec. (a)(4). Pub. L. 91-172, Sec. 954(e)(1), struck out 
par. (4) which defined the term ``Civil Service Retirement Act''.
    Subsec. (a)(1). Pub. L. 91-172, Sec. 960(c), substituted ``United 
States Tax Court'' for ``Tax Court of the United States''.
    Subsec. (a)(5). Pub. L. 91-172, Sec. 960(d), inserted reference to 
service as a judge of the Tax Court of the United States.
    Subsec. (b). Pub. L. 91-172, Sec. 954(a), substituted provisions 
authorizing retirement at age 70, or age 65 after serving 15 years, or 
when any judge has become permanently disabled, authorizing any judge 
not reappointed who has served 15 years or more to retire under 
enumerated condition, and rendering section 8335(a) of title 5 not 
applicable to judges, for provisions authorizing retirement after a 
judge has served 18 years, requiring anyone who served as a judge for 10 
years or more and attained the age of 70 years to retire no later than 
the close of the third month beginning after the month in which he 
attained 70 years or the month completing the tenth year of service or 
August 1953, and rendering section 2(a) of the Civil Service Retirement 
Act not applicable to judges.
    Subsec. (d). Pub. L. 91-172, Sec. 954(b), substituted provisions 
specifying methods of computation of retirement pay under subsec. (b) of 
this section so as to conform such provisions to subsec. (b) (relating 
to conditions for retiring), for provisions specifying methods of 
computation for retirement pay under former subsec. (b) of this section 
(relating to conditions for retiring).
    Subsec. (g)(1). Pub. L. 91-172, Sec. 954(e)(2), substituted ``civil 
service retirement laws'' and ``such civil service retirement laws 
apply'' for ``Civil Service Retirement Act'' and ``such Act applies'', 
respectively.
    Subsec. (g)(2). Pub. L. 91-172, Sec. 954(c), substituted provisions 
that any individual electing to receive retirement pay under subsec. (d) 
of this section is not to receive any payment under the civil service 
retirement laws, and no deduction is to be made for the Civil Service 
Retirement and Disability Fund, and a lump-sum credit computed under 
section 8331(8) of Title 5 is to be paid, for provisions which 
enumerated the effects and conditions of electing retirement pay under 
former subsec. (d) of this section.
    Subsec. (g)(3). Pub. L. 91-172, Sec. 954(c), struck out par. (3) 
which enumerated the conditions and effects of waiving civil service 
benefits in lieu of retirement pay under former subsec. (d) of this 
section.
    Subsec. (g)(4). Pub. L. 91-172, Sec. 954(c), struck out par. (4) 
which provided that the fourth and sixth paragraphs of section 6 of the 
Civil Service Retirement Act would be applicable to retirement pay 
accruing under subsec. (d) of this section.
    Subsec. (h). Pub. L. 91-172, Sec. 954(d), added subsec. (h).
    1966--Subsec. (d). Pub. L. 89-354 substituted ``during any period at 
a rate which bears the same ratio to the rate of the salary payable to a 
judge during such period'' for ``at a rate which bears the same ratio to 
the rate of the salary payable to him as judge at the time he ceases to 
be a judge'' and ``the rate of such salary for such period'' for ``the 
rate of such salary'' wherever appearing.


                    Effective Date of 1988 Amendment

    Section 1015(k)(2) of Pub. L. 100-647 provided that: ``The amendment 
made by paragraph (1) [amending this section] shall apply for purposes 
of determining the amount of retired pay for months beginning after the 
date of the enactment of this Act [Nov. 10, 1988] regardless of when the 
services under section 7447(c) of the 1986 Code were performed.''


                    Effective Date of 1986 Amendment

    Section 1557(e) of Pub. L. 99-514 provided that:
    ``(1) In general.--The amendments made by this section [amending 
this section and section 7448 of this title] shall take effect on the 
date of the enactment of this Act [Oct. 22, 1986].
    ``(2) Forfeiture of retired pay.--The amendments made by this 
section shall not apply to any individual who, before the date of the 
enactment of this Act [Oct. 22, 1986], forfeited his rights to retired 
pay under section 7447(d) of the Internal Revenue Code of 1954 [now 
1986] by reason of the 1st sentence of section 7447(f) of such Code (as 
in effect on the day before such date).''


                    Effective Date of 1978 Amendment

    Section 2(a) of Pub. L. 95-472 provided that: ``The amendment made 
by the first section of this Act [amending this section] shall apply 
with respect to revocations made after the date of the enactment of this 
Act [Oct. 17, 1978].''


                    Effective Date of 1971 Amendment

    Section 4(c)(1) of Pub. L. 92-41, as amended by Pub. L. 99-514, 
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that: ``The amendment 
made by subsection (a) [amending this section] shall be effective as if 
included in the Internal Revenue Code of 1986 [formerly I.R.C. 1954] on 
the date of its enactment [July 1, 1971]. Provisions having the same 
effect as such amendment shall be treated as having been included in the 
Internal Revenue Code of 1939 [section 1106(c)] effective on and after 
August 7, 1953.''


                    Effective Date of 1969 Amendment

    Amendment by sections 954(c), (e) and 960(c), (d) of Pub. L. 91-172 
effective Dec. 30, 1969, see section 962(a) of Pub. L. 91-172, set out 
as a note under section 7441 of this title.
    Section 962(d) of Pub. L. 91-172, as amended by Pub. L. 99-514, 
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that: ``The amendments 
made by subsections (a), (b), and (d) of section 954 [amending this 
section] shall apply to--
        ``(1) all judges of the Tax Court retiring on or after the date 
    of enactment of this Act [Dec. 30, 1969], and
        ``(2) all individuals performing judicial duties pursuant to 
    section 7447(c) or receiving retired pay pursuant to section 7447(d) 
    on the day preceding the date of enactment of this Act [Dec. 30, 
    1969].
Any individual who has served as a judge of the Tax Court for 18 years 
or more by the end of one year after the date of the enactment of this 
Act [Dec. 30, 1969] may retire in accordance with the provisions of 
section 7447 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] 
as in effect on the day preceding the date of the enactment of this Act. 
Any individual who is a judge of the Tax Court on the date of the 
enactment of this Act may retire under the provisions of section 7447 of 
such Code upon the completion of the term of his office, if he is not 
reappointed as a judge of the Tax Court and gives notice to the 
President within the time prescribed by section 7447(b) of such Code (or 
if his term expires within 6 months after the date of enactment of this 
Act, gives notice to the President before the expiration of 3 months 
after the date of enactment of this Act), and shall receive retired pay 
at a rate which bears the same ratio to the rate of the salary payable 
to a judge as the number of years he has served as a judge of the Tax 
Court bears to 15; except that the rate of such retired pay shall not 
exceed the rate of the salary of a judge of the Tax Court. For purposes 
of the preceding sentence the years of service as a judge of the Tax 
Court shall be determined in the manner set forth in section 7447(d) of 
such Code.''


                    Effective Date of 1966 Amendment

    Section 2 of Pub. L. 89-354, as amended by Pub. L. 99-514, Sec. 2, 
Oct. 22, 1986, 100 Stat. 2095, provided that: ``The amendments made by 
the first section of this Act [amending this section and section 1106 of 
I.R.C. 1939] shall apply with respect to retired pay accruing under 
section 1106 of the Internal Revenue Code of 1939 or section 7447 of the 
Internal Revenue Code of 1986 [formerly I.R.C. 1954] on or after the 
first day of the first calendar month which begins after the date of 
enactment of this Act [Feb. 2, 1966].''

                          Transfer of Functions

    Functions vested by statute in United States Civil Service 
Commission or Chairman thereof transferred to Director of Office of 
Personnel Management (except as otherwise specified) by Reorg. Plan No. 
2 of 1978, Sec. 102, 43 F.R. 36037, 92 Stat. 3783, set out under section 
1101 of Title 5, Government Organization and Employees, effective Jan. 
1, 1979, as provided by section 1-102 of Ex. Ord. No. 12107, Dec. 28, 
1978, 44 F.R. 1055, set out under section 1101 of Title 5.


  Redepositing Funds in Civil Service Retirement and Disability Fund; 
                           Creditable Service

    Section 2(b) of Pub. L. 95-472, as amended by Pub. L. 99-514, 
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that: ``Any individual 
who elects to revoke under section 7447(i) of the Internal Revenue Code 
of 1986 [formerly I.R.C. 1954] within one year after the date of 
enactment of this Act [Oct. 17, 1978] shall be treated as having the 
requisite current service for purposes of redepositing funds in the 
Civil Service Retirement and Disability Fund and for purposes of 
reviving creditable service under subchapter III of chapter 83 of title 
5 of the United States Code.''

                  Section Referred to in Other Sections

    This section is referred to in section 7448 of this title; title 28 
sections 178, 377.
