CITE

    26 USC Sec. 7403                                            01/05/2009

EXPCITE

    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle F - Procedure and Administration
    CHAPTER 76 - JUDICIAL PROCEEDINGS
    Subchapter A - Civil Actions by the United States

HEAD

    Sec. 7403. Action to enforce lien or to subject property to payment
      of tax

STATUTE

    (a) Filing
      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.
    (b) Parties
      All persons having liens upon or claiming any interest in the
    property involved in such action shall be made parties thereto.
    (c) Adjudication and decree
      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.
    (d) Receivership
      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.

SOURCE

    (Aug. 16, 1954, ch. 736, 68A Stat. 874; Pub. L. 89-719, title I,
    Sec. 107(b), Nov. 2, 1966, 80 Stat. 1140; Pub. L. 94-455, title
    XIX, Sec. 1906(b)(13)(A), title XX, Sec. 2004(f)(2), Oct. 4, 1976,
    90 Stat. 1834, 1872; Pub. L. 97-34, title IV, Sec. 422(e)(8), Aug.
    13, 1981, 95 Stat. 316.)

AMENDMENTS

      1981 - Subsec. (a). Pub. L. 97-34 struck out "or 6166A(h)" after
    "section 6166(g)".
      1976 - Subsec. (a). Pub. L. 94-455, Secs. 1906(b)(13)(A),
    2004(f)(2), struck out "or his delegate" after "Secretary" and
    inserted provisions relating to the acceleration of payment under
    section 6166(g) or 6166A(h).
      Subsecs. (c), (d). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck
    out "or his delegate" after "Secretary".
      1966 - Subsec. (c). Pub. L. 89-719 inserted sentence permitting
    the United States, if the property is sold to satisfy a first lien
    held by the United States, to bid at the sale such sum, not more
    than the amount of such lien with expenses of sale, as the
    Secretary or his delegate directs.
                     EFFECTIVE DATE OF 1981 AMENDMENT
      Amendment by Pub. L. 97-34 applicable to estates of decedents
    dying after Dec. 31, 1981, see section 422(f)(1) of Pub. L. 97-34,
    set out as a note under section 6166 of this title.
                     EFFECTIVE DATE OF 1966 AMENDMENT
      Amendment by Pub. L. 89-719 applicable after Nov. 2, 1966,
    regardless of when title or lien of United States arose or when
    lien or interest of another person was acquired, with certain
    exceptions, see section 114(a)-(c) of Pub. L. 89-719, set out as a
    note under section 6323 of this title.