
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: 26USC7623]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                Subtitle F--Procedure and Administration
 
       CHAPTER 78--DISCOVERY OF LIABILITY AND ENFORCEMENT OF TITLE
 
                 Subchapter B--General Powers and Duties
 
Sec. 7623. Expenses of detection of underpayments and fraud, 
        etc.
        
    The Secretary, under regulations prescribed by the Secretary, is 
authorized to pay such sums as he deems necessary for--
        (1) detecting underpayments of tax, and
        (2) detecting and bringing to trial and punishment persons 
    guilty of violating the internal revenue laws or conniving at the 
    same,

in cases where such expenses are not otherwise provided for by law. Any 
amount payable under the preceding sentence shall be paid from the 
proceeds of amounts (other than interest) collected by reason of the 
information provided, and any amount so collected shall be available for 
such payments.

(Aug. 16, 1954, ch. 736, 68A Stat. 904; Pub. L. 94-455, title XIX, 
Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 104-168, title 
XII, Sec. 1209(a), July 30, 1996, 110 Stat. 1473.)


                               Amendments

    1996--Pub. L. 104-168 substituted ``of underpayments and fraud, 
etc.'' for ``and punishment of frauds'' in section catchline and amended 
text generally. Prior to amendment, text read as follows: ``The 
Secretary, under regulations prescribed by the Secretary, is authorized 
to pay such sums, not exceeding in the aggregate the sum appropriated 
therefor, as he may deem necessary for detecting and bringing to trial 
and punishment persons guilty of violating the internal revenue laws, or 
conniving at the same, in cases where such expenses are not otherwise 
provided for by law.''
    1976--Pub. L. 94-455 struck out ``or his delegate'' after 
``Secretary'' wherever appearing.


                    Effective Date of 1996 Amendment

    Section 1209(c) of Pub. L. 104-168 provided that: ``The amendments 
made by this section [amending this section] shall take effect on the 
date which is 6 months after the date of the enactment of this Act [July 
30, 1996].''


     Study of Payments Made for Detection of Underpayments and Fraud

    Pub. L. 105-206, title III, Sec. 3804, July 22, 1998, 112 Stat. 783, 
provided that: ``Not later than 1 year after the date of the enactment 
of this Act [July 22, 1998], the Secretary of the Treasury shall conduct 
a study and report to Congress on the use of section 7623 of the 
Internal Revenue Code of 1986 including--
        ``(1) an analysis of the present use of such section and the 
    results of such use; and
        ``(2) any legislative or administrative recommendations 
    regarding the provisions of such section and its application.''


   Annual Report to Congress on Payments Made Under This Section and 
                          Resultant Collections

    Section 1209(d) of Pub. L. 104-168 provided that: ``The Secretary of 
the Treasury or his delegate shall submit an annual report to the 
Committee on Ways and Means of the House of Representatives and the 
Committee on Finance of the Senate on the payments under section 7623 of 
the Internal Revenue Code of 1986 during the year and on the amounts 
collected for which such payments were made.''

                  Section Referred to in Other Sections

    This section is referred to in title 42 section 1395b-5.
