26 U.S.C. § 7512

Separate accounting for certain collected taxes, etc.

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(a) General ruleWhenever 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.

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, § 1, Feb. 11, 1958, 72 Stat. 5; amended Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 96–223, title I, § 101(c)(3), Apr. 2, 1980, 94 Stat. 251; Pub. L. 100–418, title I, § 1941(b)(2)(O), Aug. 23, 1988, 102 Stat. 1324.)Editorial NotesAmendments

1988—Subsec. (a). Pub. L. 100–418, § 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, § 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, § 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.

Statutory Notes and Related SubsidiariesEffective 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

Pub. L. 85–321, § 4, Feb. 11, 1958, 72 Stat. 6, as amended by Pub. L. 99–514, § 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].”

Notes of Decisions

Cited in 31 cases (1 in the last 5 years), 1964–2026 · leading case: Begier v. Internal Revenue Serv., 496 U.S. 53 (1990).

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Begier v. Internal Revenue Serv., 496 U.S. 53 (1990). · cites it 2× “(It is clear from the statutory scheme that the taxpayer has the power to identify which portion of its assets constitutes the trust fund; indeed, 26 U. S. C. § 7512 permits the Government to compel such identification where it has not been made.”

Slodov v. United States, 436 U.S. 238 (1978). · cites it 2× “Treasury Reg. § 31.6011 (a)-5, 26 CFR § 31.6011 (a)-5 (1977), provides that monthly returns may be required in lieu of quarterly returns at the direction of the District Director.”

In Re Am. Int'l Airways, Inc., 70 B.R. 102 (Bankr. E.D. Pa. 1987). · cites it 5× “The Stipulation provides, in pertinent part, that, on February 8, 1984, IRS served notice upon the Debtor “to establish separate bank accounts and deposit in such accounts and hold in trust for the United States unpaid federal excise and withholding taxes” pursuant to 26 U.S.C.…”

Begier v. United States, Internal Revenue Serv. (In Re Am. Int'l Airways, Inc.), 83 B.R. 324 (Bankr. E.D. Pa. 1988). · cites it 4× “Zlatkin, with a notice also requiring the Debtor to “immediately” establish a separate bank account in which to make deposits of future amounts due for withholding and excise taxes as trustee for the IRS, pursuant to 26 U.S.C. § 7512 . 3. The Debtor wrote to the IRS on March…”

United States v. Gilbert H. Paulton, 540 F.2d 886 (8th Cir. 1976). · cites it 3× “The nine-count information charged that with respect to pay periods extending from about December 5, 1974 through about March 26, 1975 the defendant, an employer of labor, failed to pay over federal withholding taxes collected from his employees into a special trust account in a…”

Helen Debreceni, Etc. v. Graf Bros. Leasing, Inc., 828 F.2d 877 (1st Cir. 1987). · cites it 2× “, 26 U.S.C. §§ 7512 , 7215 (making the person “required to collect, account for and pay over any tax” liable for nonpayment), but we have here neither an explicit statutory exception nor an allegation that the corporate form was ignored.”

United States v. Fritz Erne, 576 F.2d 212 (9th Cir. 1978). · cites it 2× “This form is designed to satisfy the notice requirement of 26 U.S.C. § 7512 (a) and directs the recipient to comply with the procedures detailed in 26 U.”

United States v. DeMURO, 677 F.3d 550 (3rd Cir. 2012). “In June 2004, when the DeMuros were still failing to make timely deposits of the trust fund taxes, the IRS required TAD to establish a special trust account in favor of the United States, pursuant to 26 U.S.C. § 7512 . The DeMuros were required to put withheld trust fund taxes…”

United States v. New Buffalo Amusement Corp., Aquarius Releasing, Inc., & Terry Levene, 600 F.2d 368 (2d Cir. 1979). “, the Government offered to accept a corporate guilty plea to a misdemeanor charging violation of 26 U.S.C. § 7512 (b) by failing to deposit withholding taxes, provided he would demonstrate over a period of time his good faith by scrupulous compliance with the Internal Revenue…”

United States v. George R. Dreske, 536 F.2d 188 (7th Cir. 1976). · cites it 4× “§ 7215 , an Internal Revenue Code provision which penalizes an employer’s unlawful failure to comply with another Internal Revenue Code provision, 26 U.S.C. § 7512 , 1 pertaining to the establishment of special trust accounts to which both F.”

United States v. Louis Carini, 562 F.2d 144 (2d Cir. 1977). “, convicting appellant Carini, following a jury trial, of having violated 26 U.S.C. § 7512 (b) by failing to deposit, into a trust account, taxes which had been withheld from the paychecks of employees of Carini Construction Company, a corporation of which Carini is president.”

United States v. Peter Evangelista & Anthony Evangelista, Louis Evangelista & Claude Evangelista, 122 F.3d 112 (2d Cir. 1997). “” 26 U.S.C. § 7512 (a)(1). The Evangelistas argue that the use of the disjunctive (“or”) in § 7512, violation of which is punished as a misdemeanor, demonstrates that Congress used the conjunctive (“and”) in § 7202 for the purpose of adding an element to an offense that is…”

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— 26 U.S.C. § 7512(a) — 1 case

United States v. Plotkin, 239 F. Supp. 129 (E.D. Wis. 1965).

— 26 U.S.C. § 7512(b) — 1 case

Begier v. United States, Internal Revenue Serv. (In Re Am. Int'l Airways, Inc.), 83 B.R. 324 (Bankr. E.D. Pa. 1988). “Zlatkin, with a notice also requiring the Debtor to “immediately” establish a separate bank account in which to make deposits of future amounts due for withholding and excise taxes as trustee for the IRS, pursuant to 26 U.S.C. § 7512 . 3. The Debtor wrote to the IRS on March…”

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