26 USC Sec. 7403 01/05/2009
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 76 - JUDICIAL PROCEEDINGS
Subchapter A - Civil Actions by the United States
Sec. 7403. Action to enforce lien or to subject property to payment
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.
(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
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.
(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.)
1981 - Subsec. (a). Pub. L. 97-34 struck out "or 6166A(h)" after
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.