§7403 — Action to enforce lien or to subject property to payment of tax
50 cases·16 followed·1 distinguished·2 questioned·3 overruled·28 cited—32% support
Statute Text — 26 U.S.C. §7403
In any case where there has been a refusal or neglect to pay any tax, or to discharge any liability in respect thereof, whether or not levy has been made, the Attorney General or his delegate, at the request of the Secretary, may direct a civil action to be filed in a district court of the United States to enforce the lien of the United States under this title with respect to such tax or liability or to subject any property, of whatever nature, of the delinquent, or in which he has any right, title, or interest, to the payment of such tax or liability. For purposes of the preceding sentence, any acceleration of payment under section 6166(g) shall be treated as a neglect to pay tax.
All persons having liens upon or claiming any interest in the property involved in such action shall be made parties thereto.
The court shall, after the parties have been duly notified of the action, proceed to adjudicate all matters involved therein and finally determine the merits of all claims to and liens upon the property, and, in all cases where a claim or interest of the United States therein is established, may decree a sale of such property, by the proper officer of the court, and a distribution of the proceeds of such sale according to the findings of the court in respect to the interests of the parties and of the United States. If the property is sold to satisfy a first lien held by the United States, the United States may bid at the sale such sum, not exceeding the amount of such lien with expenses of sale, as the Secretary directs.
In any such proceeding, at the instance of the United States, the court may appoint a receiver to enforce the lien, or, upon certification by the Secretary during the pendency of such proceedings that it is in the public interest, may appoint a receiver with all the powers of a receiver in equity.
Treasury Regulations
- Treas. Reg. §Treas. Reg. §301.7403-1 Action to enforce lien or to subject property to payment of tax
- Treas. Reg. §Treas. Reg. §301.7403-1(a) Civil actions.
- Treas. Reg. §Treas. Reg. §301.7403-1(b) Bid by the United States.
50 Citing Cases
Pursuant to section 7403, as of the date of the transfer the United States could have enforced its lien on Jerry .Rubenstein's condominium by filing suit in .Federal District-Court, which would have been empowered to- order the condominium's sale, notwithstanding any homestead protections .
Pursuant to section 7403, as of the date of the transfer the United States could have enforced its lien on Jerry Rubenstein’s condominium by filing suit in Federal District Court, which would have been empowered to order the condominium’s sale, notwithstanding any homestead protections.
was already at the Government's dispo- sal for enforcing a restitution order.9 Following the conclusion ofcriminal pro- ceedings, the IRS normally commences a civil audit, leading to a notice of 9In particular, the tax lien foreclosure procedures ofsection 7403 and the levy and distraint procedures ofsections 6331-6344 were available to the Govern- ment (and still remain available) for enforcing a restitution lien.
was already at the Government's dispo- sal for enforcing a restitution order.9 Following the conclusion ofcriminal pro- ceedings, the IRS normally commences a civil audit, leading to a notice of 9In particular, the tax lien foreclosure procedures ofsection 7403 and the levy and distraint procedures ofsections 6331-6344 were available to the Govern- ment (and still remain available) for enforcing a restitution lien.
Section 7403(a) provides that the Attorney General may direct that a civil action be filed in U.S.
It provides that any amount (other than costs) recovered under this paragraph - 8 - shall be credited against the tax liability for the collection of which such levy was made.
round of Section 6038A Section 6038A, as originally enacted in 1982, imposed reporting requirements on foreign controlled U.S. corporations - 23 - and branches of foreign corporations. The Omnibus Budget Reconciliation Act of 1989, Pub. L. 101-239, sec. 7403, 103 Stat. 2358, added record maintenance requirements that were broadened by the Omnibus Budget Reconciliation Act of 1990, Pub. L. 101- 508, sec. 11315(a), 104 Stat. 1388, to affect all open years. The IRS issued final implementing regulat