in connection with the sale of such stock or debt obligation is false in any material respect; or (B) the person who executed and filed the blanket certificate of American ownership in his possession was not a United States person at the time of sale. (c) False certificate of sales to foreign persons. In addition ot the criminal penalty imposed by section 7241, any person who willfully executes a certificate of sales to foreign persons described in section 4919 (b) (2) which contains a misstatement of material fact shall be liable to a penalty equal to 125 percent of the amount of the tax imposed by section 4911 on the acquisition by the underwriter of the stock or debt obligation with respect to which such certificate is executed. (d) False confirmations or comparisons furnished by dealers. (1) Members of national securities exchanges. A member or member organization of a national securities exchange described in section 4919(b) (3) (A) who, in a transaction subject to the rules of such exchange as described in such section, willfully furnishes a written confirmation or comparison which contains a misstatement of material fact or which fails to state a material fact shall be liable to a penalty equal to 125 percent of the amount of the tax imposed by section 4911 on the acquisition of the debt obligation by the dealer for whose benefit such confirmation or comparison is furnished. (2) Dealers. Any person who sells as a dealer a debt obligation in a transaction subject to the rules of a national securities exchange as described in section 4919 (b) (3) (A), in which such sale is effected on his behalf by a member or member organization of such exchange, and who willfully fails to disclose to such member of member organization that such sale is being made by him as a dealer, shall be liable to a penalty equal to 125 percent of the amount of the tax imposed on his acquisition of such debt obligation. (3) Members of national securities associations. A member or member organization of a national securities association described in section 4919 (b) (3) (B) who willfully furnishes a written confirmation described in such section (in a transaction subject to the rules of such association as described in such section) which contains a misstatement of material fact or which fails to state a material fact shall be liable to a penalty equal to 125 percent of the amount of the tax imposed by section 4911 on the acquisition of the debt obligation by the dealer for whose benefit such confirmation is furnished. (e) Penalty to be in lieu of tax in certain cases. Unless the person acquiring the stock or debt obligation involved had actual knowledge that the certificate was false in any material respect, the penalty under subsection (a) or (c) shall be in lieu of any tax on the acquisition of such stock or debt obligation under section 4911. (Added Pub. L. 88563, § 6(a), Sept. 2, 1964, 78 Stat. 845.) 6801. Authority for establishment, alteration, and distribution. 6802. Supply and distribution. 6803. Accounting and safeguarding. 6804. Attachment and cancellation. 6805. Redemption of stamps. 6806. Posting occupational tax stamps. 6807. Stamping, marking, and branding seized goods. 6808. Special provisions relating to stamps. § 6801. Authority for establishment, alteration, and distribution. (a) Establishment and alteration. The Secretary or his delegate may establish, and from time to time alter, renew, replace, or change the form, style, character, material, and device of any stamp, mark, or label under any provision of the laws relating to internal revenue. (b) Preparation and distribution of regulations, forms, stamps and dies. The Secretary or his delegate shall prepare and distribute all the instructions, regulations, directions, forms, blanks, and stamps; and shall provide proper and sufficient adhesive stamps and other stamps or dies for expressing and denoting the several stamp taxes. (Aug. 16, 1954, ch. 736, 68A Stat. 829.) CROSS REFERENCES Attachment and cancellation, see section 6804 of this title. Miscellaneous stamp provisions respecting distilled spirits, wines and beer, see section 5010 of this title. Penalties for offenses relating to stamps, see section 7271 of this title. § 6802. Supply and distribution. The Secretary or his delegate shall furnish, without prepayment, to (1) Postmaster General. The Postmaster General a suitable quantity of adhesive stamps (other than the stamps on playing cards), coupons, tickets, or such other devices as may be prescribed by the Secretary or his delegate pursuant to section 6302 (b) or this chapter, to be distributed to, and kept on sale by, the various postmasters in the United States in all post offices of the first and second classes, and such post offices of the third and fourth classes as(A) are located in county seats, or (B) are certified by the Secretary to the Postmaster General as necessary; (2) Designated depositary of the United States. Any designated depositary of the United States a suitable quantity of adhesive stamps to be kept on sale by such designated depositary; (3) State agents. Any person who is (A) duly appointed and acting as agent of any State for the sale of stock transfer stamps of such State, and (B) designated by the Secretary or his delegate for the purpose, a suitable quantity of such adhesive stamps as are required by section 4301, to be kept on sale by such person. (Aug. 16, 1954, ch. 736, 68A Stat. 829.) § 6803. Accounting and safeguarding. (a) The Postmaster General. (1) Bond and accounting. The Postmaster General may require each postmaster under paragraph (1) of section 6802 to furnish bond in such increased amount as he may from time to time determine, and each such postmaster shall deposit the receipts from the sale of such stamps, coupons, tickets, books, or other devices, to the credit of, and render accounts to the Postmaster General at such times and in such form as the Postmaster General may by regulations prescribe. (2) Deposit of receipts. The Postmaster General shall at least once a month transfer to the Treasury as internal revenue collections all receipts so deposited. (b) Depositaries and State agents. (1) Bond. In cases coming within the provisions of paragraph (2) or (3) of section 6802, the Secretary or his delegate may require a bond, with sufficient sureties, in a sum to be fixed by the Secretary or his delegate, conditioned for the faithful return, whenever so required, of all quantities or amounts undisposed of and for the payment monthly for all quantities or amounts sold or not remaining on hand. (2) Regulations. The Secretary or his delegate may from time to time make such regulations as he may find necessary to insure the safekeeping or prevent the illegal use of all adhesive stamps referred to in paragraphs (2) and (3) of section 6802. (Aug. 16, 1954, ch. 736, 68A Stat. 830.) CROSS REFERENCES Expenditures incurred by Post Office Department, see section 7509 of this title. Form of bonds, see section 7101 of this title. Other provisions for bonds, see section 7103 of this title. Single bond in lieu of multiple bonds, see section 7102 of this title. § 6804. Attachment and cancellation. Except as otherwise expressly provided in this title, the stamps referred to in section 6801 shall be attached, protected, removed, canceled, obliterated, and destroyed, in such manner and by such instruments or other means as the Secretary or his delegate may prescribe by rules or regulations. (Aug. 16, 1954, ch. 736, 68A Stat. 830.) CROSS REFERENCES Penalties for failure to attach or cancel stamps, etc., see section 7271 of this title. § 6805. Redemption of stamps. (a) Authorization. The Secretary or his delegate, subject to regulations prescribed by him, may, upon receipt of satisfactory evidence of the facts, make allowance for or redeem such of the stamps, issued under authority of any internal revenue law, as may have been spoiled, destroyed, or rendered useless or unfit for the purpose intended, or for which the owner may have no use. (b) Method and conditions of allowance. Such allowance or redemption may be made, either by giving other stamps in lieu of the stamps so allowed for or redeemed, or by refunding the amount or value to the owner thereof, deducting therefrom, in case of repayment, the percentage, if any, allowed to the purchaser thereof; but no allowance or redemption shall be made in any case until the stamps so spoiled or rendered useless shall have been returned to the Secretary or his delegate, or until satisfactory proof has been made showing the reason why the same cannot be returned; or, if so required by the Secretary or his delegate, when the person presenting the same cannot satisfactorily trace the history of said stamps from their issuance to the presentation of his claim as aforesaid. (c) Time for filing claims. No claim for the redemption of, or allowance for, stamps shall be allowed under this section unless presented within 3 years after the purchase of such stamps from the Government. (d) Finality of decisions. The findings of fact in and the decision of the Secretary or his delegate upon the merits of any claim presented under or authorized by this section shall, in the absence of fraud or mistake in mathematical calculation, be final and not subject to revision by any accounting officer. (Aug. 16, 1954, ch. 736, 68A Stat. 830; Sept. 2, 1958, Pub. L. 85-859, title I, § 165 (b), (c), 72 Stat. 1313.) AMENDMENTS 1958-Subsec. (a). Pub. L. 85-859, § 165(b), elimiauthorized nated provisions which the Secretary to make allowances for or redeem stamps which through mistake may have been improperly or unnecessarily used, or where the rates or duties represented thereby have been excessive in amount, paid in error, or in any manner wrongfully collected. Subsec. (c). Pub. L. 85-859, § 165 (c), inserted "under this section" following "shall be allowed". EFFECTIVE DATE OF 1958 AMENDMENT Amendment of section by Pub. L. 85-859 effective on the first day of the first calendar quarter which begins more than 60 days after Sept. 2, 1958, see section 1 (c) of Pub. L. 85-859, set out as a note under section 4001 of this title. § 6806. Posting occupational tax stamps. (a) General rule. Every person engaged in any business, avocation, or employment, who is thereby made liable to a special tax, shall place and keep conspicuously in his establishment or place of business all stamps denoting payment of said special tax. (b) Coin-operated amusement and gaming devices. The Secretary or his delegate may by regulations require that the stamps denoting the payment of the special tax imposed by section 4461 shall be posted on or in each device in such a manner that it will be visible to any person operating the device. (c) Occupational wagering tax. Every person liable for special tax under section 4411 shall place and keep conspicuously in his principal place of business the stamp denoting the payment of such special tax; except that if he has no such place of business, he shall keep such stamp on his person, and exhibit it, upon request, to any offi cer or employee of the Treasury Department. (Aug. 16, 1954, ch. 736, 68A Stat. 831.) CROSS REFERENCES Penalties relating to failure to post special tax stamps, see section 7273 of this title. § 6807. Stamping, marking, and branding seized goods. If any article of manufacture or produce requiring brands, stamps, or marks of whatever kind to be placed thereon, is sold upon levy, forfeiture (except as provided in section 5688 with respect to distilled spirits), or other process provided by law, the same not having been branded, stamped, or marked, as required by law, the officer selling the same shall, upon sale thereof, fix or cause to be affixed the brands, stamps, or marks so required. (Aug. 16, 1954, ch. 736, 68A Stat. 831.) § 6808. Special provisions relating to stamps. (2) Cotton futures, see subchapter D of chapter 39. (7) Oleomargarine, see subchapter F of chapter 38. (8) Opium, opium for smoking, opiates and coca leaves, and marihuana, see subchapter A of chapter 39. (9) Playing cards, see subchapter A of chapter 36. (10) Process, renovated, or adulterated butter, see subchapter C of chapter 39. (11) Tobacco, snuff, cigars and cigarettes, see chapter 52. (12) White phosphorous matches, see subchapter B of chapter 39. (Aug. 16, 1954, ch. 736, 68A Stat. 831; June 4, 1963, Pub. L. 88-36, title II, § 201(d), 77 Stat. 54.) AMENDMENTS 1963-Par. (11). Pub. L. 88-36 redesignated former par. (12) as (11) and eliminated former par. (11), which was a cross reference provision for silver bullion, to subchapter F of chapter 9. Par. (12). Pub. L. 88-36 redesignated former par. (13) as (12). Former par. (12) redesignated as (11). EFFECTIVE DATE OF 1963 AMENDMENT Amendment of section as applicable only with respect to transfers after June 4, 1963, see section 202 of Pub. L. 88-36, set out as a note under former sections 4891-4897 of this title. be brought without delay, the Secretary or his delegate shall declare the taxable period for such taxpayer immediately terminated, and shall cause notice of such finding and declaration to be given the taxpayer, together with a demand for immediate payment of the tax for the taxable period so declared terminated and of the tax for the preceding taxable year or so much of such tax as is unpaid, whether or not the time otherwise allowed by law for filing return and paying the tax has expired; and such taxes shall thereupon become immediately due and payable. In any proceeding in court brought to enforce payment of taxes made due and payable by virtue of the provisions of this section, the finding of the Secretary or his delegate, made as herein provided, whether made after notice to the taxpayer or not, shall be for all purposes presumptive evidence of jeopardy. (2) Corporation in liquidation. If the Secretary or his delegate finds that the collection of the income tax of a corporation for the current or the preceding taxable year will be jeopardized by the distribution of all or a portion of the assets of such corporation in the liquidation of the whole or any part of its capital stock, the Secretary or his delegate shall declare the taxable period for such taxpayer immediately terminated and shall cause notice of such finding and declaration to be given the taxpayer, together with a demand for immediate payment of the tax for the taxable period so declared terminated and of the tax for the preceding taxable year or so much of such tax as is unpaid, whether or not the time otherwise allowed by law for filing return and paying the tax has expired; and such taxes shall thereupon become immediately due and payable. (b) Reopening of taxable period. Notwithstanding the termination of the taxable period of the taxpayer by the Secretary or his delegate, as provided in subsection (a), the Secretary or his delegate may reopen such taxable period each time the taxpayer is found by the Secretary or his delegate to have received income, within the current taxable year, since a termination of the period under subsection (a). A taxable period so terminated by the Secretary or his delegate may be reopened by the taxpayer (other than a nonresident alien) if he files with the Secretary or his delegate a true and accurate return of the items of gross income and of the deductions and credits allowed under this title for such taxable period, together with such other information as the Secretary or his delegate may by regulations prescribe. If the taxpayer is a nonresident alien the taxable period so terminated may be reopened by him if he files, or causes to be filed, with the Secretary or his delegate a true and accurate return of his total income derived from all sources within the United States, in the manner prescribed in this title. (c) Citizens. In the case of a citizen of the United States or of a possession of the United States about to depart from the United States, the Secretary or his delegate may, at his discretion, waive any or all of the requirements placed on the taxpayer by this section. (d) Departure of alien. Subject to such exceptions as may, by regulations, be prescribed by the Secretary or his delegate (1) No alien shall depart from the United States unless he first procures from the Secretary or his delegate a certificate that he has complied with all the obligations imposed upon him by the income tax laws. (2) Payment of taxes shall not be enforced by any proceedings under the provisions of this section prior to the expiration of the time otherwise allowed for paying such taxes if, in the case of an alien about to depart from the United States, the Secretary or his delegate determines that the collection of the tax will not be jeopardized by the departure of the alien. (e) Furnishing of bond where taxable year is closed by the Secretary or his delegate. Payment of taxes shall not be enforced by any proceedings under the provisions of this section prior to the expiration of the time otherwise allowed for paying such taxes if the taxpayer furnishes, under regulations prescribed by the Secretary or his delegate, a bond to insure the timely making of returns with respect to, and payment of, such taxes or any income or excess profits taxes for prior years. (Aug. 16, 1954, ch. 736, 68A Stat. 833; Sept. 2, 1958, Pub. L. 85-866, title I, § 87, 72 Stat. 1665.) AMENDMENTS 1958 Subsec. (d). Pub. L. 85-866 designated existing provisions as par. (1) and added opening provisions and par. (2). EFFECTIVE DATE OF 1958 AMENDMENT Amendment of subsec. (d) of this section by Pub. L. 85-866 effective Aug. 17, 1954, see section 1(c) of Pub. L. 85-866, set out as a note under section 165 of this title. CROSS REFERENCES Addition to tax in case of Jeopardy, see section 6658 of this title. Other provisions for bonds, see section 7103 of this title. Returns for short period on termination of taxable year for jeopardy, see section 443 (a) (3) of this title. Time for performing certain acts postponed by reason of war, see section 7508 of this title. Sec. PART II. JEOPARDY ASSESSMENTS 6861. Jeopardy assessments of income, estate, and gift taxes. 6862. Jeopardy assessment of taxes other than income, estate, and gift taxes. 6863. Stay of collection of jeopardy assessments. 6864. Termination of extended period for payment in case of carry back. § 6861. Jeopardy assessments of income, estate, and gift taxes. (a) Authority for making. If the Secretary or his delegate believes that the assessment or collection of a deficiency, as defined in section 6211, will be jeopardized by delay, he shall, notwithstanding the provisions of section 6213 (a), immediately assess such deficiency (together with all interest, additional amounts, and additions to the tax provided for by law), and notice and demand shall be made by the Secretary or his delegate for the payment thereof. (b) Deficiency letters. If the jeopardy assessment is made before any notice in respect of the tax to which the jeopardy assessment relates has been mailed under section 6212 (a), then the Secretary or his delegate shall mail a notice under such subsection within 60 days after the making of the assessment. (c) Amount assessable before decision of Tax Court. The jeopardy assessment may be made in respect of a deficiency greater or less than that notice of which has been mailed to the taxpayer, despite the provisions of section 6212 (c) prohibiting the determination of additional deficiencies, and whether or not the taxpayer has theretofore filed a petition with the Tax Court. The Secretary or his delegate may, at any time before the decision of the Tax Court is rendered, abate such assessment, or any unpaid portion thereof, to the extent that he believes the assessment to be excessive in amount. The Secretary or his delegate shall notify the Tax Court of the amount of such assessment, or abatement, if the petition is filed with the Tax Court before the making of the assessment or is subsequently filed, and the Tax Court shall have jurisdiction to redetermine the entire amount of the deficiency and of all amounts assessed at the same time in connection therewith. (d) Amount assessable after decision of Tax Court. If the jeopardy assessment is made after the decision of the Tax Court is rendered, such assessment may be made only in respect of the deficiency determined by the Tax Court in its decision. (e) Expiration of right to assess. A jeopardy assessment may not be made after the decision of the Tax Court has become final or after the taxpayer has filed a petition for review of the decision of the Tax Court. (f) Collection of unpaid amounts. When the petition has been filed with the Tax Court and when the amount which should have been assessed has been determined by a decision of the Tax Court which has become final, then any unpaid portion, the collection of which has been stayed by bond as provided in section 6863 (b) shall be collected as part of the tax upon notice and demand from the Secretary or his delegate, and any remaining portion of the assessment shall be abated. If the amount already collected exceeds the amount determined as the amount which should have been assessed, such excess shall be credited or refunded to the taxpayer as provided in section 6402, without the filing of claim therefor. If the amount determined as the amount which should have been assessed is greater than the amount actually assessed, then the difference shall be assessed and shall be collected as part of the tax upon notice and demand from the Secretary or his delegate. (g) Abatement if jeopardy does not exist. The Secretary or his delegate may abate the jeopardy assessment if he finds that jeopardy does not exist. Such abatement may not be made after a decision of the Tax Court in respect of the deficiency has been rendered or, if no petition is filed with the Tax Court, after the expiration of the period for filing such petition. The period of limitation on the making of assessments and levy or a proceeding in court for collection, in respect of any deficiency, shall be determined as if the jeopardy assessment so abated had not been made, except that the running of such period shall in any event be suspended for the period from the date of such jeopardy assessment until the expiration of the 10th day after the day on which such jeopardy assessment is abated. (h) Cross references. (1) For the effect of the furnishing of security for payment, see section 6863. (2) For provision permitting immediate levy in case of jeopardy, see section 6331 (a). (Aug. 16, 1954, ch. 736, 68A Stat. 834.) CROSS REFERENCES Corporations improperly accumulating surplus, burden of proof with respect to jeopardy assessment, see section 534 of this title. Proration of deficiency to installments, see section 6152 of this title. § 6862. Jeopardy assessment of taxes other than income, estate, and gift taxes. (a) Immediate assessment. If the Secretary or his delegate believes that the collection of any tax (other than income tax, estate tax, and gift tax) under any provision of the internal revenue laws will be jeopardized by delay, he shall, whether or not the time otherwise prescribed by law for making return and paying such tax has expired, immediately assess such tax (together with all interest, additional amounts, and additions to the tax provided for by law). Such tax, additions to the tax, and interest shall thereupon become immediately due and payable, and immediate notice and demand shall be made by the Secretary or his delegate for the payment thereof. (b) Immediate levy. For provision permitting immediate levy in case of jeopardy, see section 6331 (a). (Aug. 16, 1954, ch. 736, 68A Stat. 836.) § 6863. Stay of collection of jeopardy assessments. (a) Bond to stay collection. When a jeopardy assessment has been made under section 6861 or 6862, the collection of the whole or any amount of such assessment may be stayed by filing with the Secretary or his delegate, within such time as may be fixed by regulations prescribed by the Secretary or his delegate, 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 the jeopardy 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 the jeopardy assessment is abated, the bond shall, at the request of the taxpayer, be proportionately reduced. (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), a jeopardy assessment has been made under section 6861 the property seized for the collection of the tax shall not be sold (i) if section 6861 (b) is applicable, prior to the issuance of the notice of deficiency and the expiration of the time provided in section 6213 (a) for filing petition with the Tax Court, and (ii) if petition is filed with the Tax Court (whether before or after the making of such jeopardy assessment under section 6861), prior to the expiration of the period during which the assessment of the deficiency would be prohibited if section 6861 (a) were not applicable. (B) Exceptions. Such property may be sold if— (i) the taxpayer consents to the sale, (ii) the Secretary or his delegate 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) Applicability. Subparagraphs (A) and (B) shall be applicable only with respect to a jeopardy assessment made on or after January 1, 1955, and shall apply with respect to taxes imposed by this title and with respect to taxes imposed by the Internal Revenue Code of 1939. (Aug. 16, 1954, ch. 736, 68A Stat. 836.) CROSS REFERENCES Bond to stay assessment and collection, see section 7485 of this title. Other provisions for bonds, see section 7103 of this title. Sale of seized property, see section 6335 of this title. |