26 U.S.C. § 6311

Payment of tax by commercially acceptable means

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(a) Authority to receive

It shall be lawful for the Secretary to receive for internal revenue taxes (or in payment for internal revenue stamps) any commercially acceptable means that the Secretary deems appropriate to the extent and under the conditions provided in regulations prescribed by the Secretary.

(b) Ultimate liability

If a check, money order, or other method of payment, including payment by credit card, debit card, or charge card so received is not duly paid, or is paid and subsequently charged back to the Secretary, the person by whom such check, or money order, or other method of payment has been tendered shall remain liable for the payment of the tax or for the stamps, and for all legal penalties and additions, to the same extent as if such check, money order, or other method of payment had not been tendered.

(c) Liability of banks and othersIf any certified, treasurer’s, or cashier’s check (or other guaranteed draft), or any money order, or any other means of payment that has been guaranteed by a financial institution (such as a credit card, debit card, or charge card transaction which has been guaranteed expressly by a financial institution) so received is not duly paid, the United States shall, in addition to its right to exact payment from the party originally indebted therefor, have a lien for—(1) the amount of such check (or draft) upon all assets of the financial institution on which drawn,(2) the amount of such money order upon all the assets of the issuer thereof, or(3) the guaranteed amount of any other transaction upon all the assets of the institution making such guarantee,and such amount shall be paid out of such assets in preference to any other claims whatsoever against such financial institution, issuer, or guaranteeing institution, except the necessary costs and expenses of administration and the reimbursement of the United States for the amount expended in the redemption of the circulating notes of such financial institution.(d) Payment by other means(1) Authority to prescribe regulationsThe Secretary shall prescribe such regulations as the Secretary deems necessary to receive payment by commercially acceptable means, including regulations that—(A) specify which methods of payment by commercially acceptable means will be acceptable,(B) specify when payment by such means will be considered received,(C) identify types of nontax matters related to payment by such means that are to be resolved by persons ultimately liable for payment and financial intermediaries, without the involvement of the Secretary, and(D) ensure that tax matters will be resolved by the Secretary, without the involvement of financial intermediaries.(2) Authority to enter into contracts

Notwithstanding section 3718(f) of title 31, United States Code, the Secretary is authorized to enter into contracts to obtain services related to receiving payment by other means where cost beneficial to the Government. The Secretary may not pay any fee or provide any other consideration under any such contract for the use of credit, debit, or charge cards for the payment of taxes imposed by subtitle A. The preceding sentence shall not apply to the extent that the Secretary ensures that any such fee or other consideration is fully recouped by the Secretary in the form of fees paid to the Secretary by persons paying taxes imposed under subtitle A with credit, debit, or charge cards pursuant to such contract. Notwithstanding the preceding sentence, the Secretary shall seek to minimize the amount of any fee or other consideration that the Secretary pays under any such contract.

(3) Special provisions for use of credit cardsIf use of credit cards is accepted as a method of payment of taxes pursuant to subsection (a)—(A) a payment of internal revenue taxes (or a payment for internal revenue stamps) by a person by use of a credit card shall not be subject to section 161 of the Truth in Lending Act (15 U.S.C. 1666), or to any similar provisions of State law, if the error alleged by the person is an error relating to the underlying tax liability, rather than an error relating to the credit card account such as a computational error or numerical transposition in the credit card transaction or an issue as to whether the person authorized payment by use of the credit card,(B) a payment of internal revenue taxes (or a payment for internal revenue stamps) shall not be subject to section 170 of the Truth in Lending Act (15 U.S.C. 1666i), or to any similar provisions of State law,(C) a payment of internal revenue taxes (or a payment for internal revenue stamps) by a person by use of a debit card shall not be subject to section 908 of the Electronic Fund Transfer Act (15 U.S.C. 1693f), or to any similar provisions of State law, if the error alleged by the person is an error relating to the underlying tax liability, rather than an error relating to the debit card account such as a computational error or numerical transposition in the debit card transaction or an issue as to whether the person authorized payment by use of the debit card,(D) the term “creditor” under section 103(g) of the Truth in Lending Act (15 U.S.C. 1602(g)) shall not include the Secretary with respect to credit card transactions in payment of internal revenue taxes (or payment for internal revenue stamps), and(E) notwithstanding any other provision of law to the contrary, in the case of payment made by credit card or debit card transaction of an amount owed to a person as the result of the correction of an error under section 161 of the Truth in Lending Act (15 U.S.C. 1666) or section 908 of the Electronic Fund Transfer Act (15 U.S.C. 1693f), the Secretary is authorized to provide such amount to such person as a credit to that person’s credit card or debit card account through the applicable credit card or debit card system.(e) Confidentiality of information(1) In general

Except as otherwise authorized by this subsection, no person may use or disclose any information relating to credit or debit card transactions obtained pursuant to section 6103(k)(9) other than for purposes directly related to the processing of such transactions, or the billing or collection of amounts charged or debited pursuant thereto.

(2) Exceptions(A) Debit or credit card issuers or others acting on behalf of such issuers may also use and disclose such information for purposes directly related to servicing an issuer’s accounts.(B) Debit or credit card issuers or others directly involved in the processing of credit or debit card transactions or the billing or collection of amounts charged or debited thereto may also use and disclose such information for purposes directly related to—(i) statistical risk and profitability assessment;(ii) transferring receivables, accounts, or interest therein;(iii) auditing the account information;(iv) complying with Federal, State, or local law; and(v) properly authorized civil, criminal, or regulatory investigation by Federal, State, or local authorities.(3) Procedures

Use and disclosure of information under this paragraph shall be made only to the extent authorized by written procedures promulgated by the Secretary.

(4) Cross reference

For provision providing for civil damages for violation of paragraph (1), see section 7431.

(Aug. 16, 1954, ch. 736, 68A Stat. 777; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 98–369, div. A, title IV, § 448(a), July 18, 1984, 98 Stat. 817; Pub. L. 105–34, title XII, § 1205(a), Aug. 5, 1997, 111 Stat. 995; Pub. L. 105–206, title VI, § 6012(b)(1), July 22, 1998, 112 Stat. 819; Pub. L. 105–277, div. J, title IV, § 4003(k), Oct. 21, 1998, 112 Stat. 2681–910; Pub. L. 115–141, div. U, title IV, § 401(a)(280), Mar. 23, 2018, 132 Stat. 1197; Pub. L. 116–25, title II, § 2303, July 1, 2019, 133 Stat. 1013.)Editorial NotesAmendments

2019—Subsec. (d)(2). Pub. L. 116–25 inserted at end “The preceding sentence shall not apply to the extent that the Secretary ensures that any such fee or other consideration is fully recouped by the Secretary in the form of fees paid to the Secretary by persons paying taxes imposed under subtitle A with credit, debit, or charge cards pursuant to such contract. Notwithstanding the preceding sentence, the Secretary shall seek to minimize the amount of any fee or other consideration that the Secretary pays under any such contract.”

2018—Subsec. (d)(3)(D). Pub. L. 115–141 substituted “section 103(g)” for “section 103(f)” and “1602(g)” for “1602(f)”.

1998—Subsec. (d)(2). Pub. L. 105–277 substituted “under any such contract for the use of credit, debit, or charge cards for the payment of taxes imposed by subtitle A” for “under such contracts”.

Subsec. (e)(1). Pub. L. 105–206 substituted “section 6103(k)(9)” for “section 6103(k)(8)”.

1997—Pub. L. 105–34 amended section catchline and text generally, substituting provisions relating to payment of tax by commercially acceptable means for provisions consisting of subsecs. (a) and (b) relating to payment by check or money order and liability if a check or money order received is not duly paid.

1984—Subsec. (b)(2). Pub. L. 98–369 substituted “or cashier’s check (or other guaranteed draft)” for “or cashier’s check”, “the amount of such check (or draft)” for “the amount of such check”, and “the financial institution” for “the bank or trust company”, and substituted “such financial institution” for “such bank” in two places.

1976—Subsec. (a). Pub. L. 94–455 struck out “or his delegate” after “Secretary” wherever appearing.

Statutory Notes and Related SubsidiariesEffective Date of 1998 Amendments

Amendment by Pub. L. 105–277 effective as if included in the provision of the Taxpayer Relief Act of 1997, Pub. L. 105–34, to which such amendment relates, see section 4003(l) of Pub. L. 105–277, set out as a note under section 86 of this title.

Amendment by Pub. L. 105–206 effective, except as otherwise provided, as if included in the provisions of the Taxpayer Relief Act of 1997, Pub. L. 105–34, to which such amendment relates, see section 6024 of Pub. L. 105–206, set out as a note under section 1 of this title.

Effective Date of 1997 Amendment

Amendment by Pub. L. 105–34 effective on the day 9 months after Aug. 5, 1997, see section 1205(d) of Pub. L. 105–34, set out as a note under section 6103 of this title.

Effective Date of 1984 Amendment

Pub. L. 98–369, div. A, title IV, § 448(b), July 18, 1984, 98 Stat. 818, provided that: “The amendments made by subsection (a) [amending this section] shall take effect on the date of the enactment of this Act [July 18, 1984].”

Regulations

Pub. L. 105–206, title III, § 3703, July 22, 1998, 112 Stat. 777, provided that: “The Secretary of the Treasury or the Secretary’s delegate shall establish such rules, regulations, and procedures as are necessary to allow payment of taxes by check or money order made payable to the United States Treasury.”

Required Notice of Certain Payments

Pub. L. 104–168, title XII, § 1202, July 30, 1996, 110 Stat. 1470, provided that: “If any payment is received by the Secretary of the Treasury or his delegate from any taxpayer and the Secretary cannot associate such payment with such taxpayer, the Secretary shall make reasonable efforts to notify the taxpayer of such inability within 60 days after the receipt of such payment.”

Notes of Decisions

Cited in 16 cases, 1970–2020 · leading case: United States v. Second Nat'l Bank of North Miami, 502 F.2d 535 (2d Cir. 1974).

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United States v. Second Nat'l Bank of North Miami, 502 F.2d 535 (2d Cir. 1974). · cites it 3× “The United States filed suit in the United States District Court to reduce its claim on the money orders to judgment and to foreclose a statutory lien on appellant’s assets, asserted pursuant to *539 26 U.S.C. § 6311 (b)(2). The bank de-ied liability on the money orders, and in…”

United States v. Zarra, 810 F. Supp. 2d 758 (W.D. Pa. 2011). · cites it 6× “The Zarras’ theories lack merit, however, because they (1) rely on inapplicable state law, (2) are not supported by case law, and (3) directly contravene the clear language of 26 U.S.C. § 6311 . It is doubtful that the Zarras’ theories would prevail under circumstances involving…”

Zazalli v. Swenson (In re DBSI, Inc.), 561 B.R. 97 (D. Idaho 2016). “Defendant cites to 26 U.S.C. § 6311 concerning the acceptance of payments: Authority to receive.”

United States v. White, 340 B.R. 761 (E.D.N.C. 2006). · cites it 2× “§ 1325 (a)(5); (2) the property that Debtors proposed to surrender was necessary for them to comply with the plan; (3) Debtors did not intend to actually surrender the property, and therefore the plan was proposed in bad faith, and (4) Debtors were prohibited by 26 U.S.C. §§…”

Rodriguez v. United States, 629 F. Supp. 333 (N.D. Ill. 1986). “26 U.S.C. § 6311 (a). The redemption occurs at the moment of tender, whether the revenue officer has specifically agreed to the form of payment, Lowe, 268 F.”

Robert G. Dudley v. United States, 428 F.2d 1196 (9th Cir. 1970). “26 U.S.C. § 6311 (b) (1). From the time that he learned of the bank’s refusal to pay the check, it can be said that he willfully failed to pay over the tax due to the IRS.”

Albemarle Corp. & Subsidiaries v. United States, 123 Fed. Cl. 1011 (Fed. Cir. 2015). “26 U.S.C. § 6311 (d)(3)(A). For that reason, Albe-marle’s May 15, 2009, claim for credits for its 1998 Belgian taxes is time-barred.”

Montagne v. United States, 90 Fed. Cl. 41 (Fed. Cl. 2009). “This Promissory Note, however, is not a payment of the taxes due, because it is not a “means of cash or cash equivalents” as required by Section 6311 of the Internal Revenue Code.”

Furcron v. United States, 626 F. Supp. 320 (D. Maryland 1986). “Title 26 U.S.C. § 6311 (b)(1), entitled “Ultimate Liability,” provides: If a check or money order so received [by the Secretary pursuant to § 6311(a)] is not duly paid, the person by whom such check or money order has been tendered shall remain liable- for the payment of the tax…”

First Nat'l Bank v. United States, 8 Cl. Ct. 774 (Ct. Cl. 1985). · cites it 2× “This result is suggested by 26 U.S.C. § 6311 (b)(2), which provides, “[i]f any certified, treasurer’s, or cashier’s check * * * so received [in payment of federal taxes] is not duly paid, the United States shall * * * have a lien for the amount of such check (or draft) upon all…”

York v. United States, 636 F. Supp. 544 (N.D. Ga. 1986). “Plaintiffs cite 26 U.S.C. § 6311 (b)(1), which provides that a taxpayer who tenders a check which is dishonored remains liable for the payment of that tax.”

Internal Revenue Serv. v. White, 487 F.3d 199 (4th Cir. 2007). “t feasible because the Whites proposed to surrender personal property, including their clothing and household goods, that was necessary for their continued generation of income and thus for their compliance with the plan; (3) the plan was proposed in bad faith because the Whites…”

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