§ 7512. — Separate accounting for certain collected taxes, etc.
[Laws in effect as of January 7, 2003]
[Document not affected by Public Laws enacted between
January 7, 2003 and December 19, 2003]
[CITE: 26USC7512]
TITLE 26--INTERNAL REVENUE CODE
Subtitle F--Procedure and Administration
CHAPTER 77--MISCELLANEOUS PROVISIONS
Sec. 7512. Separate accounting for certain collected taxes, etc.
(a) General rule
Whenever any person who is required to collect, account for, and pay
over any tax imposed by subtitle C or chapter 33--
(1) at the time and in the manner prescribed by law or
regulations (A) fails to collect, truthfully account for, or pay
over such tax, or (B) fails to make deposits, payments, or returns
of such tax, and
(2) is notified, by notice delivered in hand to such person, of
any such failure,
then all the requirements of subsection (b) shall be complied with. In
the case of a corporation, partnership, or trust, notice delivered in
hand to an officer, partner, or trustee, shall, for purposes of this
section, be deemed to be notice delivered in hand to such corporation,
partnership, or trust and to all officers, partners, trustees, and
employees thereof.
(b) Requirements
Any person who is required to collect, account for, and pay over any
tax imposed by subtitle C or chapter 33, if notice has been delivered to
such person in accordance with subsection (a), shall collect the taxes
imposed by subtitle C or chapter 33 which become collectible after
delivery of such notice, shall (not later than the end of the second
banking day after any amount of such taxes is collected) deposit such
amount in a separate account in a bank (as defined in section 581), and
shall keep the amount of such taxes in such account until payment over
to the United States. Any such account shall be designated as a special
fund in trust for the United States, payable to the United States by
such person as trustee.
(c) Relief from further compliance with subsection (b)
Whenever the Secretary is satisfied, with respect to any
notification made under subsection (a), that all requirements of law and
regulations with respect to the taxes imposed by subtitle C or chapter
33, as the case may be, will henceforth be complied with, he may cancel
such notification. Such cancellation shall take effect at such time as
is specified in the notice of such cancellation.
(Added Pub. L. 85-321, Sec. 1, Feb. 11, 1958, 72 Stat. 5; amended Pub.
L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834;
Pub. L. 96-223, title I, Sec. 101(c)(3), Apr. 2, 1980, 94 Stat. 251;
Pub. L. 100-418, title I, Sec. 1941(b)(2)(O), Aug. 23, 1988, 102 Stat.
1324.)
Amendments
1988--Subsec. (a). Pub. L. 100-418, Sec. 1941(b)(2)(O)(i),
substituted ``or chapter 33'' for ``, by chapter 33, or by section
4986'' in introductory provisions.
Subsec. (b). Pub. L. 100-418, Sec. 1941(b)(2)(O)(i), (ii),
substituted ``or chapter 33'' for ``, by chapter 33, or by section
4986'' and ``or chapter 33'' for ``, chapter 33, or section 4986''.
Subsec. (c). Pub. L. 100-418, Sec. 1941(b)(2)(O)(ii), substituted
``or chapter 33'' for ``, chapter 33, or section 4986''.
1980--Subsecs. (a) to (c). Pub. L. 96-223 inserted references to tax
imposed by section 4986.
1976--Pub. L. 94-455 struck out ``or his delegate'' after
``Secretary'' wherever appearing.
Effective Date of 1988 Amendment
Amendment by Pub. L. 100-418 applicable to crude oil removed from
the premises on or after Aug. 23, 1988, see section 1941(c) of Pub. L.
100-418, set out as a note under section 164 of this title.
Effective Date of 1980 Amendment
Amendment by Pub. L. 96-223 applicable to periods after Feb. 29,
1980, see section 101(i) of Pub. L. 96-223, set out as a note under
section 6161 of this title.
Notification of Failure To Collect, Account for, and Pay Over Taxes
Section 4 of Pub. L. 85-321, as amended by Pub. L. 99-514, Sec. 2,
Oct. 22, 1986, 100 Stat. 2095, provided that: ``Notification may be made
under section 7512(a) of the Internal Revenue Code of 1986 [formerly
I.R.C. 1954] (as added by the first section of this Act)--
``(1) in the case of taxes imposed by subtitle C of such Code,
only with respect to pay periods beginning after the date of the
enactment of this Act [Feb. 11, 1958]; and
``(2) in the case of taxes imposed by chapter 33 of such Code,
only with respect to taxes so imposed after the date of the
enactment of this Act [Feb. 11, 1958].''
Section Referred to in Other Sections
This section is referred to in section 7215 of this title.
