(2) Action taken before ascertainment of right to benefits. The assessment or collection or any internal revenue tax or of any liability to the United States in respect of any internal revenue tax, or any action or proceeding by or on behalf of the United States in connection therewith, may be made, taken, begun, or prosecuted in accordance with law, without regard to the provisions of subsection (a), unless prior to such assessment, collection, action, or proceeding it is ascertained that the person concerned is entitled to the benefits of subsection (a). (Aug. 16, 1954, ch. 736, 68A Stat. 898.) § 7509. Expenditures incurred by the Post Office Department. The Postmaster General or his delegate shall at least once a month transfer to the Treasury of the United States, together with the receipts required to be deposited under section 6803 (a), a statement of the additional expenditures in the District of Columbia and elsewhere incurred by the Post Office Department in performing the duties, if any, imposed upon such Department with respect to chapter 21, relating to the tax under the Federal Insurance Contributions Act, and the Secretary or his delegate shall be authorized and directed to advance from time to time to the credit of the Post Office Department, from appropriations made for the collection of the taxes imposed by chapter 21, such sums as may be required for such additional expenditures incurred by the Post Office Department. (Aug. 16, 1954, ch. 736, 68A Stat. 899.) § 7510. Exemption from tax of domestic goods purchased for the United States. The privilege existing by provision of law on December 1, 1873, or thereafter of purchasing supplies of goods imported from foreign countries for the use of the United States, duty free, shall be extended, under such regulations as the Secretary or his delegate may prescribe, to all articles of domestic production which are subject to tax by the provisions of this title. (Aug. 16, 1954, ch. 736, 68A Stat. 900.) § 7511. Repealed. Pub. L. 87-456, title III, § 302(d), May 24, 1962, 76 Stat. 77. Section, act Aug. 16, 1954, ch. 736, 68A Stat. 900, related to exemption of consular officers and employees of foreign states from payment of internal revenue taxes on imported articles. See Revised Tariff Schedules set out in section 1202 of Title 19, Customs Duties. EFFECTIVE DATE OF REPEAL Repeal of section effective with respect to articles entered, or withdrawn from warehouse, for consumption on or after Aug. 31, 1963, see section 501 (a) of Pub. L. 87-456, set out as a note preceding section 1202 of Title 19, Customs Duties. § 7512. Separate accounting for certain collected taxes, etc. (a) General rule. Whenever any person who is required to collect, account for, and pay over any tax imposed by subtitle C or by chapter 33 (1) at the time and in the manner prescribed by law or regulations (A) fails to collect, truthfully account for, or pay over such tax, or (B) fails to make deposits, payments, or returns of such tax, and (2) is notified, by notice delivered in hand to such person, of any such failure, then all the requirements of subsection (b) shall be complied with. In the case of a corporation, partnership, or trust, notice delivered in hand to an officer, partner, or trustee, shall, for purposes of this section, be deemed to be notice delivered in hand to such corporation, partnership, or trust and to all officers, partners, trustees, and employees thereof. (b) Requirements. Any person who is required to collect, account for, and pay over any tax imposed by subtitle C or by chapter 33, if notice has been delivered to such person in accordance with subsection (a), shall collect the taxes imposed by subtitle C or chapter 33 which become collectible after delivery of such notice, shall (not later than the end of the second banking day after any amount of such taxes is collected) deposit such amount in a separate account in a bank (as defined in section 581), and shall keep the amount of such taxes in such account until payment over to the United States. Any such account shall be designated as a special fund in trust for the United States, payable to the United States by such person as trustee. (c) Relief from further compliance with subsection (b). Whenever the Secretary or his delegate is satisfied, with respect to any notification made under subsection (a), that all requirements of law and regulations with respect to the taxes imposed by subtitle C or chapter 33, as the case may be, will henceforth be complied with, he may cancel such notification. Such cancellation shall take effect at such time as is specified in the notice of such cancellation. (Added Pub. L. 85-321, § 1, Feb. 11, 1958, 72 Stat. 5.) NOTIFICATION OF FAILURE TO COLLECT, ACCOUNT for, and PAY OVER TAXES Section 4 of Pub. L. 85-321 provided that: "Notification may be made under section 7512 (a) of the Internal Revenue Code of 1954 (as added by the first section of this Act) [subsec. (a) of this section]— "(1) in the case of taxes imposed by subtitle C of such Code, only with respect to pay periods beginning after the date of the enactment of this Act [February 11, 1958]; and "(2) in the case of taxes imposed by chapter 33 of such Code, only with respect to taxes so imposed after the date of the enactment of this Act [February 11, 1958]." CROSS REFERENCES Penalty for failure to comply with subsec. (b) of this section, see section 7215 (a) of this title. § 7513. Reproduction of returns and other documents. (a) In general. The Secretary or his delegate is authorized to have any Federal agency or any person process films or other photoimpressions of any return, document, or other matter, and make reproductions from films or photoimpressions of any return, document, or other matter. (b) Regulations. The Secretary or his delegate shall prescribe regulations which shall provide such safeguards as in the opinion of the Secretary or his delegate are necessary or appropriate to protect the film, photoimpressions, and reproductions made therefrom, against any unauthorized use, and to protect the information contained therein against any unauthorized disclosure. (c) Use of reproductions. Any reproduction of any return, document, or other matter made in accordance with this section shall have the same legal status as the original; and any such reproduction shall, if properly authenticated, be admissible in evidence in any judicial or administrative proceeding, as if it were the original, whether or not the original is in existence. (d) Penalty. For penalty for violation of regulations for safeguarding against unauthorized use of any film or photoimpression, or reproduction made therefrom, and against unauthorized disclosure of information contained therein, see section 7213. (Added Pub. L. 85-866, title I, § 90 (a), Sept. 2, 1958, 72 Stat. 1666.) EFFECTIVE DATE Section 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 Penalty for unauthorized use or disclosure, see section 7213 of this title. § 7514. Authority to prescribe or modify seals. The Secretary or his delegate is authorized to prescribe or modify seals of office for the district directors of internal revenue and other officers or employees of the Treasury Department to whom any of the functions of the Secretary shall have been or may be delegated. Each seal so prescribed shall contain such device as the Secretary or his delegate may select. Each seal shall remain in the custody of any officer or employee whom the Secretary or his delegate may designate, and, in accordance with the regulations approved by the Secretary or his delegate, may be affixed in lieu of the seal of the Treasury Department to any certificate or attestation (except for material to be published in the Federal Register) that may be required of such officer or employee. Judicial notice shall be taken of any seal prescribed in accordance with this authority, a facsimile of which has been published in the Federal Register together with the regulations prescribing such seal and the affixation thereof. (Added Pub. L. 85-866, title I, § 91 (a), Sept. 2, 1958, 72 Stat. 1667.) EFFECTIVE DATE Section effective Aug. 17, 1954, see section 1(c) of Pub. L. 85-866, set out as a note under section 165 of this title. § 7515. Special statistical studies and compilations and other services on request. The Secretary or his delegate is authorized within his discretion, upon written request, to make special statistical studies and compilations involving data from any returns, declarations, statements, or other documents required by this title or by regulations or form any records established or maintained in connection with the administration and enforcement of this title, to engage in any such special study or compilation jointly with the party or parties requesting it, and to furnish transcripts of any such special study or compilation, upon the payment, by the party or parties making the request, of the cost of the work or services performed for such party or parties. (Added Pub. L. 87–870, § 3(a) (1), Oct. 23, 1962, 76 Stat. 1160.) § 7516. Supplying training and training aids on request. The Secretary or his delegate is authorized within his discretion, upon written request, to admit employees and officials of any State, the Commonwealth of Puerto Rico, any possession of the United States, any political subdivision or instrumentality of any of the foregoing, the District of Columbia, or any foreign government to training courses conducted by the Internal Revenue Service, and to supply them with texts and other training aids. The Secretary or his delegate may require payment from the party or parties making the request of a reasonable fee not to exceed the cost of the training and training aids supplied pursuant to such request. (Added Pub. L. 87-870, § 3(a) (1), Oct. 23, 1962, 76 Stat. 1160.) 1958-Pub. L. 85-859, title II, § 204 (16), Sept. 2, 1958, 72 Stat. 1430, added item 7608, and redesignated former item 7608 as 7609. 1956 Act July 18, 1956, ch. 629, § 104 (b), 70 Stat. 570, renumbered item 7607, "Cross references." as item 7608, and inserted new item 7607 “Additional authority for Bureau of Narcotics and Bureau of Customs." § 7601. Canvass of districts for taxable persons and objects. (a) General rule. The Secretary or his delegate shall, to the extent he deems it practicable, cause officers or employees of the Treasury Department to proceed, from time to time, through each internal revenue district and inquire after and concerning all persons therein who may be liable to pay any internal revenue tax, and all persons owning or having the care and management of any objects with respect to which any tax is imposed. (b) Penalties. For penalties applicable to forcible obstruction or hindrance of Treasury officers or employees in the performance of their duties, see section 7212. (Aug. 16, 1954, ch. 736, 68A Stat. 901.) § 7602. Examination of books and witnesses. For the purpose of ascertaining the correctness of any return, making a return where none has been made, determining the liability of any person for any internal revenue tax or the liability at law or in equity of any transferee or fiduciary of any person in respect of any internal revenue tax, or collecting any such liability, the Secretary or his delegate is authorized (1) To examine any books, papers, records, or other data which may be relevant or material to such inquiry; (2) To summon the person liable for tax or required to perform the act, or any officer or employee of such person, or any person having possession, custody, or care of books of account containing entries relating to the business of the person liable for tax or required to perform the act, or any other person the Secretary or his delegate may deem proper, to appear before the Secretary or his delegate at a time and place named in the summons and to produce such books, papers, records, or other data, and to give such testimony, under oath, as may be relevant or material to such inquiry; and (3) To take such testimony of the person concerned, under oath, as may be relevant or material to such inquiry. (Aug. 16, 1954, ch. 736, 68A Stat. 901.) CROSS REFERENCES Authority of officers or employees to administer oaths, see section 7622 of this title. Books of person liable for occupational tax, see section 4423 of this title. Distilleries, authority of revenue officers, see section 5203 of this title. Returns, public records, see section 6103 of this title. Time and place for examination pursuant to this section, see section 7605 (a) of this title. § 7603. Service of summons. A summons issued under section 6420 (e) (2), 6421 (f) (2), or 7602 shall be served by the Secretary or his delegate, by an attested copy delivered in hand to the person to whom it is directed, or left at his last and usual place of abode; and the certificate of service signed by the person serving the summons shall be evidence of the facts it states on the hearing of an application for the enforcement of the summons. When the summons requires the production of books, papers, records, or other data, it shall be sufficient if such books, papers, records, or other data are described with reasonable certainty. (Aug. 16, 1954, ch. 736; 68A Stat. 901; Apr. 2, 1956, ch. 160, § 4(1), 70 Stat. 91; June 29, 1956, ch. 462, title II, § 208(d) (4), 70 Stat. 396.) * AMENDMENTS 1956-Act June 29, 1956, included any summons issued under section 6421(f) (2) of this title. Act Apr. 2, 1956, included any summons issued under section 6420(e) (2) of this title. EFFECTIVE DATE OF 1956 AMENDMENT Amendment of this section by act June 29, 1956, effective June 29, 1956, see section 211 of act June 29, 1956, set out as a note under section 4041 of this title. CROSS REFERENCES Penalties applicable to violation of this section, see section 7210 of this title. § 7604. Enforcement of summons. (a) Jurisdiction of district court. If any person is summoned under the internal revenue laws to appear, to testify, or to produce books, papers, records, or other data, the United States district court for the district in which such person resides or is found shall have jurisdiction by appropriate process to compel such attendance, testimony, or production of books, papers, records, or other data. (b) Enforcement. Whenever any person summoned under section 6420 (e) (2), 6421 (f) (2), or 7602 neglects or refuses to obey such summons, or to produce books, papers, records, or other data, or to give testimony, as required, the Secretary or his delegate may apply to the judge of the district court or to a United States commissioner for the district within which the person so summoned resides or is found for an attachment against him as for a contempt. It shall be the duty of the judge or commissioner to hear the application, and, if satisfactory proof is made, to issue an attachment, directed to some proper offcer, for the arrest of such person, and upon his being brought before him to proceed to a hearing of the case; and upon such hearing the judge or the United States commissioner shall have power to make such order as he shall deem proper, not inconsistent with the law for the punishment of contempts, to enforce obedience to the requirements of the summons and to punish such person for his default or disobedience. (c) Cross references. (1) Authority to issue orders, processes, and judgments. For authority of district courts generally to enforce the provisions of this title, see section 7402. Constituting crimes, see section 402 of Title 18, Crimes Jury trial, see section 3691 of Title 18, Crimes and Power of court, see section 401 of Title 18, Crimes and § 7605. Time and place of examination. The time and place of examination pursuant to the provisions of section 6420 (e) (2), 6421 (f) (2), or 7602 shall be such time and place as may be fixed by the Secretary or his delegate and as are reasonable under the circumstances. In the case of a summons under authority of paragraph (2) of section 7602, or under the corresponding authority of section 6420 (e) (2), or 6421 (f) (2), the date fixed for appearance before the Secretary or his delegate shall not be less than 10 days from the date of the summons. (b) Restrictions on examination of taxpayer. No taxpayer shall be subjected to unnecessary examination or investigations, and only one inspection of a taxpayer's books of account shall be made for each taxable year unless the taxpayer requests otherwise or unless the Secretary or his delegate, after investigation, notifies the taxpayer in writing that an additional inspection is necessary. (Aug. 16, 1954, ch. 736, 68A Stat. 902; Apr. 2, 1956, ch. 160, § 4 (1), 70 Stat. 91; June 29, 1956, ch. 462, title II, § 208 (d) (4), 70 Stat. 396.) AMENDMENTS 1956 Subsec. (a). Act Apr. 2, 1956, inserted references to section 6420 (e) (2) of this title. Act June 29, 1956, inserted references to section 6421 (f) (2) of this title. EFFECTIVE DATE of 1956 AMENDMENT Amendment of this section by act June 29, 1956, effective June 29, 1956, see section 211 of act June 29, 1956, set out as a note under section 4041 of this title. § 7606. Entry of premises for examination of taxable objects. (a) Entry during day. The Secretary or his delegate may enter, in the daytime, any building or place where any articles or objects subject to tax are made, produced, or kept, so far as it may be necessary for the purpose of examining said articles or objects. (b) Entry at night. When such premises are open at night, the Secretary or his delegate may enter them while so open, in the performance of his official duties. (c) Penalties. For penalty for refusal to permit entry or examination, see section 7342. (Aug. 16, 1954, ch. 736, 68A Stat. 903.) § 7607. Additional authority for Bureau of Narcotics and Bureau of Customs. The Commissioner, Deputy Commissioner, Assistant to the Commissioner, and agents, of the Bureau of Narcotics of the Department of the Treasury, and officers of the customs (as defined in section 401 (1) of the Tariff Act of 1930, as amended; 19 U. S. C., sec. 1401 (1)), may— (1) carry firearms, execute and serve search warrants and arrest warrants, and serve subpenas and summonses issued under the authority of the United States, and (2) make arrests without warrant for violations of any law of the United States relating to narcotic drugs (as defined in section 4731) or marihuana (as defined in section 4761) where the violation is committed in the presence of the person making the arrest or where such person has reasonable grounds to believe that the person to be arrested has committed or is committing such violation. (Added July 18, 1956, ch. 629, title I, § 104 (a), 70 Stat. 570.) § 7608. Authority of internal revenue enforcement offi cers. (a) Enforcement of subtitle E and other laws pertaining to liquor, tobacco, and firearms. Any investigator, agent, or other internal revenue officer by whatever term designated, whom the Secretary or his delegate charges with the duty of enforcing any of the criminal, seizure, or forfeiture provisions of subtitle E or of any other law of the United States pertaining to the commodities subject to tax under such subtitle for the enforcement of which the Secretary or his delegate is responsible may (1) carry firearms; (2) execute and serve search warrants and arrest warrants, and serve subpoenas and summonses issued under authority of the United States; (3) in respect to the performance of such duty, make arrests without warrant for any offense against the United States committed in his presence, or for any felony cognizable under the laws of the United States if he has reasonable grounds to believe that the person to be arrested has committed, or is committing, such felony; and (4) in respect to the performance of such duty, make seizures of property subject to forfeiture to the United States. (b) Enforcement of laws relating to internal revenue other than subtitle E. (1) Any criminal investigator of the Intelligence Division or of the Internal Security Division of the Internal Revenue Service whom the Secretary or his delegate charges with the duty of enforcing any of the criminal provisions of the internal revenue laws or any other criminal provisions of law relating to internal revenue for the enforcement of which the Secretary or his delegate is responsible is, in the performance of his duties, authorized to perform the functions described in paragraph (2). (2) The functions authorized under this subsection to be performed by an officer referred to in paragraph (1) are (A) to execute and serve search warrants and arrest warrants, and serve subpoenas and summonses issued under authority of the United States; (B) to make arrests without warrant for any offense against the United States relating to the internal laws committed in his presence, or for any felony cognizable under such laws if he has reasonable grounds to believe that the person to be arrested has committed or is committing any such felony; and (C) to make seizures of property subject to forfeiture under the internal revenue laws. (Added Pub. L. 85-859, title II, § 204 (14), Sept. 2, 1958, 72 Stat. 1429, and amended Pub. L. 87-863, § 6(a), Oct. 23, 1962, 76 Stat. 1143.) AMENDMENTS 1962 Subsec. (a). Pub. L. 87-863, § 6(a)(2), redesignated existing provisions as subsec. (a), and added the catchline thereto. Subsec. (b). Pub. L. 87-863, § 6(a)(1), added subsec. (b). EFFECTIVE DATE OF 1962 AMENDMENT Section 6(b) of Pub. L. 87-863 provided that: "The amendments made by subsection (a) [to this section] shall take effect on the day after the date of enactment of this Act [Oct. 23, 1962]." EFFECTIVE DATE Section effective on Sept. 3, 1958, see section 210 (a) (1) of Pub. L. 85-859, set out as a note under section 5001 of this title. § 7609. Cross references. (a) Inspection of books, papers, records, or other data. For inspection of books, papers, records, or other data in the case of (1) Wholesale dealers in oleomargarine, see section 4597. (2) Wholesale dealers in process or renovated butter or adulterated butter, see section 4815 (b). (3) Opium, opiates, and coca leaves, see section 4702 (a), 4705, 4721, 4773. (4) Marihuana, see sections 4742, 4753 (b), and 4773. (6) Alcohol, tobacco, and firearms taxes, see subtitle E. (b) Search warrants. For provisions relating to (1) Searches and seizures, see Rule 41 of the Federal Rules of Criminal Procedure. (2) Issuance of search warrants with respect to subtitle E, see section 5557. (3) Search warrants with respect to property used in violation of the internal revenue laws, see section 7302. (Aug. 16, 1954, ch. 736, 68A Stat. 903, § 7609, formerly § 7607, renumbered § 7608, July 18, 1956, ch. 629, title I, § 104 (a), 70 Stat. 570; renumbered § 7609, and amended Sept. 2, 1958, Pub. L. 85-859, title II, § 204 (14), (15), 72 Stat. 1429, 1430.) AMENDMENTS 1958 Subsec. (a) (6). Pub. L. 85-859, § 204(15), added subsec. (a) (6). Subsec. (b) (2). Pub.. L. 85-859, § 204 (15), substituted "with respect to subtitle E, see section 5557" for "in connection with industrial alcohol, etc., see sections 5314 and 7302." Subsec. (b) (3). Pub. L. 85-859, § 204 (15), added subsec. (b) (3). EFFECTIVE DATE OF 1958 AMENDMENT Amendment of section by Pub. L. 85-859 effective Sept. 3, 1958, see section 210(a) (1) of Pub. L. 85-859, set out as a note under section 5001 of this title. Sec. Subchapter B.-General Powers and Duties 7621. Internal revenue districts. 7622. Authority to administer oaths and certify. § 7621. Internal revenue districts. The President shall establish convenient internal revenue districts for the purpose of administering the internal revenue laws. The President may from time to time alter such districts. (b) Boundaries. For the purpose mentioned in subsection (a), the President may subdivide any State, Territory, or the District of Columbia, or may unite into one district two or more States or a Territory and one or more States. (Aug. 16, 1954, ch. 736, 68A Stat. 904; June 25, 1959, Pub. L. 86-70, § 22(e), 73 Stat. 146.) AMENDMENTS 1959 Subsec. (b). Pub. L. 86-70 substituted "may unite into one district two or more States or a Territory and one or more States" for "may unite two or more States or Territories into one district." EFFECTIVE DATE OF 1959 AMENDMENT Amendment of section by Pub. L. 86-70 effective Jan. 3, 1959, see section 22(1) of Pub. L. 86-70, set out as a note under section 2202 of this title. § 7622. Authority to administer oaths and certify. (a) Internal revenue personnel. Every officer or employee of the Treasury Department designated by the Secretary or his delegate for that purpose is authorized to administer such oaths or affirmations and to certify to such papers as may be necessary under the internal revenue laws or regulations made thereunder. (b) Others. Any oath or affirmation required or authorized under any internal revenue law or under any regulations made thereunder may be administered by any person authorized to administer oaths for general purposes by the law of the United States, or of any State, Territory, or possession of the United States, or of the District of Columbia, wherein such oath or affirmation is administered. This subsection shall not be construed as an exclusive enumeration of the persons who may administer such oaths or affirmations. (Aug. 16, 1954, ch. 736, 68A Stat. 904.) § 7623. Expenses of detection and punishment of frauds. The Secretary or his delegate, under regulations prescribed by the Secretary or his delegate, 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. (Aug. 16, 1954, ch. 736, 68A Stat. 904.) |