§ 6867. Presumptions where owner of large amount of cash is not identified

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(a)General rule If the individual who is in physical possession of cash in excess of $10,000 does not claim such cash—

(1)as his, or

(2)as belonging to another person whose identity the Secretary can readily ascertain and who acknowledges ownership of such cash,

then, for purposes of sections 6851 and 6861, it shall be presumed that such cash represents gross income of a single individual for the taxable year in which the possession occurs, and that the collection of tax will be jeopardized by delay.

(b)Rules for assessing In the case of any assessment resulting from the application of subsection (a)—

(1)the entire amount of the cash shall be treated as taxable income for the taxable year in which the possession occurs,

(2)such income shall be treated as taxable at the highest rate of tax specified in section 1, and

(3)except as provided in subsection (c), the possessor of the cash shall be treated (solely with respect to such cash) as the taxpayer for purposes of chapters 63 and 64 and section 7429(a)(1).

(c)Effect of later substitution of true owner If, after an assessment resulting from the application of subsection (a), such assessment is abated and replaced by an assessment against the owner of the cash, such later assessment shall be treated for purposes of all laws relating to lien, levy and collection as relating back to the date of the original assessment.

(d)Definitions For purposes of this section—

(1)Cash The term “cash” includes any cash equivalent.

(2)Cash equivalent The term “cash equivalent” means—

(A)foreign currency,

(B)any bearer obligation, and

(C)any medium of exchange which—

(i)is of a type which has been frequently used in illegal activities, and

(ii)is specified as a cash equivalent for purposes of this part in regulations prescribed by the Secretary.

(3)Value of cash equivalent Any cash equivalent shall be taken into account—

(A)in the case of a bearer obligation, at its face amount, and

(B)in the case of any other cash equivalent, at its fair market value.

(Added Pub. L. 97–248, title III, § 330(a), Sept. 3, 1982, 96 Stat. 619; amended Pub. L. 100–647, title I, § 1001(a)(1), Nov. 10, 1988, 102 Stat. 3349.)

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statutes-at-large

Public Law 97–248
To provide for tax equity and fiscal responsibility, and for other purposes

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U.S. Code

Tax imposed
§ 1

9 references not yet in our index

Pub. L. 97–248, title III, § 330(a)
96 Stat. 619
Pub. L. 100–647, title I, § 1001(a)(1)
102 Stat. 3349
Pub. L. 100–647
Pub. L. 99–514
section 1019(a) of Pub. L. 100–647
Pub. L. 97–248, title III, § 330(c)
96 Stat. 620

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§ 6867

Presumptions where owner of large amount of cash is not identified

Stat.×2

U.S.C.§ 1

Pub. L.Pub. L. 97–248, title III, § 330(a)

Stat.96 Stat. 619

Pub. L.Pub. L. 100–647, title I, § 1001(a)(1)

Stat.102 Stat. 3349

Pub. L.Pub. L. 100–647

Cites 10 · showing 6Cited by 2 across 1 source