26 U.S.C. § 7485

Bond to stay assessment and collection

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(a) Upon notice of appealNotwithstanding any provision of law imposing restrictions on the assessment and collection of deficiencies, the review under section 7483 shall not operate as a stay of assessment or collection of any portion of the amount of the deficiency determined by the Tax Court unless a notice of appeal in respect of such portion is duly filed by the taxpayer, and then only if the taxpayer—(1) on or before the time his notice of appeal is filed has filed with the Tax Court a bond in a sum fixed by the Tax Court not exceeding double the amount of the portion of the deficiency in respect of which the notice of appeal is filed, and with surety approved by the Tax Court, conditioned upon the payment of the deficiency as finally determined, together with any interest, additional amounts, or additions to the tax provided for by law, or(2) has filed a jeopardy bond under the income or estate tax laws.If as a result of a waiver of the restrictions on the assessment and collection of a deficiency any part of the amount determined by the Tax Court is paid after the filing of the appeal bond, such bond shall, at the request of the taxpayer, be proportionately reduced.(b) Bond in case of appeal of certain partnership-related decisions

The condition of subsection (a) shall be satisfied if the partnership duly files notice of appeal from a decision under section 6234 and on or before the time the notice of appeal is filed with the Tax Court, a bond in an amount fixed by the Tax Court is filed, and with surety approved by the Tax Court, conditioned upon the payment of deficiencies attributable to the partnership-related items (as defined in section 6241) to which that decision relates as finally determined, together with any interest, penalties, additional amounts, or additions to the tax provided by law. Unless otherwise stipulated by the parties, the amount fixed by the Tax Court shall be based upon its estimate of the aggregate liability of the parties to the action.

(c) Cross references(1) For requirement of additional security notwithstanding this section, see section 7482(c)(3).(2) For deposit of United States bonds or notes in lieu of sureties, see section 9303 of title 31, United States Code.(Aug. 16, 1954, ch. 736, 68A Stat. 891; Pub. L. 91–172, title IX, § 960(h)(3), Dec. 30, 1969, 83 Stat. 735; Pub. L. 97–248, title IV, § 402(c)(16), Sept. 3, 1982, 96 Stat. 668; Pub. L. 97–258, § 3(f)(15), Sept. 13, 1982, 96 Stat. 1065; Pub. L. 105–34, title XII, §§ 1222(b)(4), 1241(a), Aug. 5, 1997, 111 Stat. 1019, 1029; Pub. L. 114–74, title XI, § 1101(f)(14), Nov. 2, 2015, 129 Stat. 638; Pub. L. 115–141, div. U, title II, §§ 201(c)(8), 206(p)(8), Mar. 23, 2018, 132 Stat. 1173, 1182.)Editorial NotesAmendments

2018—Subsec. (b). Pub. L. 115–141 substituted “the partnership” for “a partner” and “partnership-related items (as defined in section 6241)” for “partnership items”.

2015—Subsec. (b). Pub. L. 114–74 substituted “section 6234” for “section 6226, 6228(a), 6247, or 6252”.

1997—Subsec. (b). Pub. L. 105–34, § 1222(b)(4)(B), amended heading generally. Prior to amendment, heading read as follows: “Bond in case of appeal of decision under section 6226 or section 6228(a)”.

Pub. L. 105–34, § 1222(b)(4)(A), substituted “, 6228(a), 6247, or 6252” for “or 6228(a)”.

Pub. L. 105–34, § 1241(a), inserted “penalties,” after “any interest,” and substituted “aggregate liability of the parties to the action” for “aggregate of such deficiencies”.

1982—Subsecs. (b), (c). Pub. L. 97–248 added subsec. (b) and redesignated former subsec. (b) as (c).

Subsec. (c)(2). Pub. L. 97–258 substituted “section 9303 of title 31, United States Code” for “6 U.S.C. 15”. Notwithstanding the directory language that amendment be made to subsec. (b)(2), the amendment was executed to subsec. (c)(2) to reflect the probable intent of Congress and the intervening redesignation of subsec. (b) as (c) by Pub. L. 97–248.

1969—Subsec. (a). Pub. L. 91–172 substituted “notice of appeal” for “petition for review” and “appeal bond” for “review bond”.

Statutory Notes and Related SubsidiariesEffective Date of 2018 Amendment

Amendment by Pub. L. 115–141 effective as if included in section 1101 of Pub. L. 114–74, see section 207 of Pub. L. 115–141, set out as a note under section 6031 of this title.

Effective Date of 2015 Amendment

Amendment by Pub. L. 114–74 applicable to returns filed for partnership taxable years beginning after Dec. 31, 2017, with certain exceptions, see section 1101(g) of Pub. L. 114–74, set out as an Effective Date note under section 6221 of this title.

Effective Date of 1997 Amendment

Amendment by section 1222(b)(4) of Pub. L. 105–34 applicable to partnership taxable years beginning after Dec. 31, 1997, see section 1226 of Pub. L. 105–34, as amended, set out as a note under section 6011 of this title.

Pub. L. 105–34, title XII, § 1241(b), Aug. 5, 1997, 111 Stat. 1029, provided that: “The amendment made by this section [amending this section] shall take effect as if included in the amendments made by section 402 of the Tax Equity and Fiscal Responsibility Act of 1982 [Pub. L. 97–248].”

Effective Date of 1982 Amendment

Amendment by Pub. L. 97–248 applicable to partnership taxable years beginning after Sept. 3, 1982, with provision for the applicability of the amendment to any partnership taxable year ending after Sept. 3, 1982, if the partnership, each partner, and each indirect partner requests such application and the Secretary of the Treasury or his delegate consents to such application, see section 407(a)(1), (3) of Pub. L. 97–248, set out as a note under section 702 of this title.

Effective Date of 1969 Amendment

Amendment by Pub. L. 91–172 effective 30 days after Dec. 30, 1969, see section 962(f) of Pub. L. 91–172, set out as a note under section 7483 of this title.

Notes of Decisions

Cited in 16 cases, 1958–2016 · leading case: Palmer Ranch Holdings Ltd v. Comm'r of Internal Revenue Serv., 812 F.3d 982 (11th Cir. 2016).

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Palmer Ranch Holdings Ltd v. Comm'r of Internal Revenue Serv., 812 F.3d 982 (11th Cir. 2016). · cites it 3× “Besides, 26 U.S.C. § 7485 expressly authorizes the IRS to seek a levy simultaneous to an appeal.”

Michael Boulware v. Comm'r of IRS, 816 F.3d 133 (D.C. Cir. 2016). · cites it 2× “The IRS then began a collection action by notifying Boulware of its intent to record a federal tax lien against him, and in May, 2011 it mailed Boulware final notice of its intent to levy his assets.”

Comm'r v. McCoy, 484 U.S. 3 (1987). · cites it 2× “After the Tax Court's decision, respondent did not file the appeal bond required by 26 U. S. C. § 7485 , if assessment and collection of the deficiency were to be stayed.”

In Re Boynton, 184 B.R. 580 (Bankr. S.D. Cal. 1995). · cites it 3× “Under 26 U.S.C. § 7485 , the Tax Court sets the amount of the bond.”

Akers v. United States, 539 F. Supp. 831 (D. Conn. 1982). · cites it 2× “Plaintiffs, however, have not alleged that they posted the appeal bond required under 26 U.S.C. § 7485 (a)(1) to effect a stay of assessment or collection of the deficiency during the period of review of the Tax Court decision.”

Larry D. Delpit Dorothy D. Delpit v. Comm'r Internal Revenue Serv., 18 F.3d 768 (9th Cir. 1994). “We note that the Commissioner argues that the Delpits should have posted an appeal bond in accordance with 26 U.S.C. § 7485 . This argument is completely irrelevant to the question whether the automatic stay provisions of Section 362(a)(1) are applicable.”

Cleveland Chair Co. v. United States, 214 Ct. Cl. 360 (Ct. Cl. 1977). “See 26 U.S.C. § 7485 (1970). This they did by supplying the clerk with United States Treasury bills worth approximately $1 million, as permitted by 6 U.”

Thomas A. Johnson v. United States, 990 F.2d 41 (2d Cir. 1993). · cites it 2× “By order dated August 17, 1992, Judge Dorsey upheld the assessment, concluding that a tax assessment cannot be stayed during the appeal period unless the taxpayer files a notice of appeal and an appellate bond as provided by 26 U.S.C. § 7485 (1988). Because an assessment made…”

Denison v. Barlow, 563 F. Supp. 263 (E.D. Ark. 1983). · cites it 3× “Does the plaintiff’s failure to post a bond pursuant to 26 U.S.C. § 7485 (a)(1) prevent him from seeking declaratory and injunctive relief against the Commissioner’s efforts to collect the assessment made for the taxable year 1977? Plaintiff argues that the reversal of the Tax…”

Alvin Kanofsky v. Comm'r of Internal Reven, 424 F. App'x 189 (3rd Cir. 2011). “…during an appeal from Tax Court unless a taxpayer files a bond on or before the time he files a notice of appeal. See 26 U.S.C. § 7485 (a)(1).”

Charles E. Shepherd v. Comm'r of Internal Revenue, 147 F.3d 633 (7th Cir. 1998). “It is true that the IRS can collect on a tax deficiency as soon as the Tax Court has decided all claims relating to a particular tax year, 26 U.S.C. § 7485 (a); InverWorld, Ltd. v.”

Gunn v. Mathis, 157 F. Supp. 169 (W.D. Ark. 1958). · cites it 2× “Section 7485 of the Internal Revenue Code of 1954, 26 U.S.C.A. § 7485 , provides that a petition for review of a Tax Court decision shall not operate as a stay of assessment or collection of any portion of the amount of the deficiency determined by the Tax Court, unless the…”

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