§6851 — Termination assessments of income tax
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Statute Text — 26 U.S.C. §6851
If the Secretary finds that a taxpayer designs quickly to depart from the United States or to remove his property therefrom, or to conceal himself or his property therein, or to do any other act (including in the case of a corporation distributing all or a part of its assets in liquidation or otherwise) tending to prejudice or to render wholly or partially ineffectual proceedings to collect the income tax for the current or the immediately preceding taxable year unless such proceeding be brought without delay, the Secretary shall immediately make a determination of tax for the current taxable year or for the preceding taxable year, or both, as the case may be, and notwithstanding any other provision of law, such tax shall become immediately due and payable. The Secretary shall immediately assess the amount of the tax so determined (together with all interest, additional amounts, and additions to the tax provided by law) for the current taxable year or such preceding taxable year, or both, as the case may be, and shall cause notice of such determination and assessment to be given the taxpayer, together with a demand for immediate payment of such tax.
In the case of a current taxable year, the Secretary shall determine the tax for the period beginning on the first day of such current taxable year and ending on the date of the determination under paragraph (1) as though such period were a taxable year of the taxpayer, and shall take into account any prior determination made under this subsection with respect to such current taxable year.
Any amounts collected as a result of any assessments under this subsection shall, to the extent thereof, be treated as a payment of tax for such taxable year.
This section shall not authorize any assessment of tax for the preceding taxable year which is made after the due date of the taxpayer’s return for such taxable year (determined with regard to any extensions).
If an assessment of tax is made under the authority of subsection (a), the Secretary shall mail a notice under section 6212(a) for the taxpayer’s full taxable year (determined without regard to any action taken under subsection (a)) with respect to which such assessment was made within 60 days after the later of (i) the due date of the taxpayer’s return for such taxable year (determined with regard to any extensions), or (ii) the date such taxpayer files such return. Such deficiency may be in an amount greater or less than the amount assessed under subsection (a).
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 may, at his discretion, waive any or all of the requirements placed on the taxpayer by this section.
Subject to such exceptions as may, by regulations, be prescribed by the Secretary—
No alien shall depart from the United States unless he first procures from the Secretary a certificate that he has complied with all the obligations imposed upon him by the income tax laws.
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 determines that the collection of the tax will not be jeopardized by the departure of the alien.
The provisions of section 6861(f) (relating to collection of unpaid amounts) and 6861(g) (relating to abatement if jeopardy does not exist) shall apply with respect to any assessment made under subsection (a).
For provisions permitting immediate levy in case of jeopardy, see section 6331(a).
For provisions relating to the review of jeopardy, see section 7429.
Treasury Regulations
- Treas. Reg. §Treas. Reg. §1.6851-1 Termination assessments of income tax
- Treas. Reg. §Treas. Reg. §1.6851-1(a) Authority for making—(1) In general.
- Treas. Reg. §Treas. Reg. §1.6851-1(b) Notice of deficiency.
- Treas. Reg. §Treas. Reg. §1.6851-1(c) Immediate payment.
- Treas. Reg. §Treas. Reg. §1.6851-1(d) Abatement.
- Treas. Reg. §Treas. Reg. §1.6851-1(i) The taxpayer is or appears to be designing quickly to depart from the United States or to conceal himself or herself.
- Treas. Reg. §Treas. Reg. §1.6851-2 Certificates of compliance with income tax laws by departing aliens
- Treas. Reg. §Treas. Reg. §1.6851-2(a) §1.6851-2(a)
- Treas. Reg. §Treas. Reg. §1.6851-2(b) Where the period for filing has not expired, the return required under section 6012 and § 1.
- Treas. Reg. §Treas. Reg. §1.6851-2(c) Any other income tax returns which have not been filed as required.
- Treas. Reg. §Treas. Reg. §1.6851-2(d) §1.6851-2(d)
- Treas. Reg. §Treas. Reg. §1.6851-2(e) §1.6851-2(e)
- Treas. Reg. §Treas. Reg. §1.6851-2(f) An alien resident of Canada or Mexico who commutes between such country and the United States at frequent intervals for the purpose of employment and whose wages are subject to the withholding of tax.
- Treas. Reg. §Treas. Reg. §1.6851-2(i) §1.6851-2(i)
- Treas. Reg. §Treas. Reg. §1.6851-3 Furnishing of bond to insure payment; cross reference
- Treas. Reg. §Treas. Reg. §301.6851-1 Termination of taxable year
56 Citing Cases
Section 6211(b)(1) provides that the taxpayer's correct tax for the year and the tax shown on his re- turn "shall both be determined * * * without regard to any credits resulting from the collection ofamounts assessed under section 6851 * * * (relating to termina- tion assessments)." Thus, the $288,546 termination assessment that the IRS made against petitioner in May 2015 is disregarded in determining his "deficiency" for the 2015 calendar year.
[2] Except as otherwise provided in section 6851, 6852, or 6861 no assessment of a deficiency in respect of any tax imposed by subtitle A, or B, chapter 41, 42, 43, or 44 and no levy or proceeding in court for its collection shall be made, begun, or prosecuted until such notice has been mailed to the taxpayer, nor until the expiration of 8 We discuss below in Part III.A Hallmark’s co
6213(a) provides in part: "Except as otherwise provided in section 6851, 6852, or 6861 no assessment ofa deficiency in respect ofany tax imposed by subtitle A or B, chapter 41, 42, 43, or 44 and no levy or proceeding in court for its collection shall be made, begun, or prosecuted until such notice has been (continued...) - 27 - Bregin v.
Time for Filing Petition and Restriction on Assessment.-- * * * Except as otherwise provided in section 6851, 6852 or 6861 no assessment ofa deficiency in respect ofany tax imposed by subtitle A or B, chapter 41, 42, 43, or 44 and no levy or proceeding in court for its collection shall be made, begun, or prosecuted until such notice has been mailed to the taxpayer, nor until the expiration ofsuch 90-day or 150-day period, as the case may be,
ofthis section-- - 17 - (1) The tax imposedby subtitle A and the tax shown on the return shall both be determined without regard to payment on account ofestimated tax, withoutregard to the credit under section 31, withoutregard to the credit under section 33, and withoutregard to any credits resulting from the collection ofamounts assessed under section 6851 or 6852 (relating to termination assessments).
ofthis section-- - 17 - (1) The tax imposedby subtitle A and the tax shown on the return shall both be determined without regard to payment on account ofestimated tax, withoutregard to the credit under section 31, withoutregard to the credit under section 33, and withoutregard to any credits resulting from the collection ofamounts assessed under section 6851 or 6852 (relating to termination assessments).
ofthis section-- - 17 - (1) The tax imposedby subtitle A and the tax shown on the return shall both be determined without regard to payment on account ofestimated tax, withoutregard to the credit under section 31, withoutregard to the credit under section 33, and withoutregard to any credits resulting from the collection ofamounts assessed under section 6851 or 6852 (relating to termination assessments).
Time for Filing Petition and Restriction on Assessment.— * * * Except as otherwise provided in section 6851, 6852 or 6861 no assessment of a deficiency in respect of any tax imposed by subtitle A or B, chapter 41, 42, 43, or 44 and no levy or proceeding in court for its collection shall be made, begun, or prosecuted until such notice has been mailed to the taxpayer, nor until the expiration of such 90-day or 150-day period, as the case may b
es of this section— (1) The tax imposed by subtitle A and the tax shown on the return shall both be determined without regard to payment on account of estimated tax, without regard to the credit under section 31, without regard to the credit under section 33, and without regard to any credits resulting from the collection of amounts assessed under section 6851 or 6852 (relating to termination assessments).
determined without regard to payments on account ofestimated tax, without regard to the credit under section 31, without regard to the credit under section 33, and without regard to any credits resulting from the collection of amounts assessed under section 6851 or 6852 (relating to termination assessments).M Because the Code specifies that certain credits should be disregarded when determining the tax shown on the return, we can infer that other credits should not be disregarded.
Section 6863(a) provides for a "Bond to Stay Collection" in the case oftermination assessments andjeopardy assessments "under section 6851, 6852, 6861 or 6862".13 Section 6863 allows a taxpayerto file a bond to stop the IRS from °These sections cross-referenced in sec.
s of this section— (1) The tax imposed by subtitle A and the tax shown on the return shall both be determined without regard to payments on account of estimated tax, without regard to the credit under section 31, without regard to the credit under section 33, and without regard to any credits resulting from the collection of amounts assessed under section 6851 or 6852 (relating to termination assessments)!!
ions in fiv e circumstances--i .e ., except in the case of fraud, and except as provided in section 6214(a) (relating to assertion of greater deficiencies before the Tax Court), in section 6213(b)(1) (relating to mathematical or clerical errors), in section 6851 or 6852 (relating to termination assessments), or in section 6861(c) (relating to the making of jeopardy assessments ) --and the recapture of tentative refunds fits into one of those exceptions (i .e ., mathematical or clerical errors) .
61, no levy or proceeding in court shall be made, begun, or prosecuted against the individual making an election under subsection (b) or (c) or requesting equitable relief under subsection (f) for collection of any assessment to which such election or request relates until the close of the 90th day referred to in subparagraph (A)(ii), or, if a petition has been filed with the Tax Court under subparagraph (A), until the decision of the Tax Court has become final.
6213(a) provides, in pertinent part : Except as otherwise provided in section 6851, 6852, or 6861 no assessment of a deficiency * * * and no levy or proceeding in court for its collection shall be made, begun, or prosecuted until such notice has been mailed to the taxpayer, nor until the expiration of such 90- day or 150-day period, as the case may be, nor, if a petition has been filed with the Tax Court, until the d
324, 328-329 (2000).5 Section 6015(e)(1)(B)(i) generally provides that “no levy or proceeding in court” shall be made, begun, or prosecuted against an individual making an election under section 6015 for collection of any assessment to which such election arises until the close of the 90-day period for filing a petition with the Court under section 6015 or, if a petit
Except as otherwise provided in section 6851, 6852, or 6861 no assessment of a deficiency in respect of any tax imposed by subtitle A or B, chapter 41, 42, 43, or 44 and no levy or proceeding in court for its collection shall be made, begun, or prosecuted until such notice has been mailed to the taxpayer, nor until the expiration of such 90- day or 150–day period, as the case may
Except as otherwise provided in section 6851, 6852, or 6861 no assessment of a deficiency in respect of any tax imposed by subtitle A or B, chapter 41, 42, 43, or 44 and no levy or proceeding in court for its collection shall be made, begun, or prosecuted until such notice has been mailed to the taxpayer, nor until the expiration of such 90-day or 150-day period, as the case may
6213(a) provides in pertinent part: Except as otherwise provided in section 6851, 6852, or 6861 no assessment of a deficiency in respect of any tax * * * and no levy or proceeding in court for its collection shall be made, begun, or prosecuted until such notice has been mailed to the taxpayer, nor until the expiration of such 90-day or 150-day period, as the case may be, nor, if a petition has been filed with the T
this section— (1) The tax imposed by subtitle A and the tax shown on the return shall both be determined without regard to the payments on account of estimated tax, without regard to the credit under section 31, without regard to the credit under section 33, and without regard to any credits resulting from the collection of amounts assessed under section 6851 (relating to termination assessments).