26 U.S.C. § 6201 : US Code - Section 6201: Assessment authority

Search 26 U.S.C. § 6201 : US Code - Section 6201: Assessment authority

(a) Authority of Secretary
The Secretary is authorized and required to make the inquiries,
determinations, and assessments of all taxes (including interest,
additional amounts, additions to the tax, and assessable penalties)
imposed by this title, or accruing under any former internal
revenue law, which have not been duly paid by stamp at the time and
in the manner provided by law. Such authority shall extend to and
include the following:
(1) Taxes shown on return
The Secretary shall assess all taxes determined by the taxpayer
or by the Secretary as to which returns or lists are made under
this title.
(2) Unpaid taxes payable by stamp
(A) Omitted stamps
Whenever any article upon which a tax is required to be paid
by means of a stamp is sold or removed for sale or use by the
manufacturer thereof or whenever any transaction or act upon
which a tax is required to be paid by means of a stamp occurs
without the use of the proper stamp, it shall be the duty of
the Secretary, upon such information as he can obtain, to
estimate the amount of tax which has been omitted to be paid
and to make assessment therefor upon the person or persons the
Secretary determines to be liable for such tax.
(B) Check or money order not duly paid
In any case in which a check or money order received under
authority of section 6311 as payment for stamps is not duly
paid, the unpaid amount may be immediately assessed as if it
were a tax imposed by this title, due at the time of such
receipt, from the person who tendered such check or money
order.
(3) Erroneous income tax prepayment credits
If on any return or claim for refund of income taxes under
subtitle A there is an overstatement of the credit for income tax
withheld at the source, or of the amount paid as estimated income
tax, the amount so overstated which is allowed against the tax
shown on the return or which is allowed as a credit or refund may
be assessed by the Secretary in the same manner as in the case of
a mathematical or clerical error appearing upon the return,
except that the provisions of section 6213(b)(2) (relating to
abatement of mathematical or clerical error assessments) shall
not apply with regard to any assessment under this paragraph.
(b) Amount not to be assessed
(1) Estimated income tax
No unpaid amount of estimated income tax required to be paid
under section 6654 or 6655 shall be assessed.
(2) Federal unemployment tax
No unpaid amount of Federal unemployment tax for any calendar
quarter or other period of a calendar year, computed as provided
in section 6157, shall be assessed.
(c) Compensation of child
Any income tax under chapter 1 assessed against a child, to the
extent attributable to amounts includible in the gross income of
the child, and not of the parent, solely by reason of section
73(a), shall, if not paid by the child, for all purposes be
considered as having also been properly assessed against the
parent.
(d) Required reasonable verification of information returns
In any court proceeding, if a taxpayer asserts a reasonable
dispute with respect to any item of income reported on an
information return filed with the Secretary under subpart B or C of
part III of subchapter A of chapter 61 by a third party and the
taxpayer has fully cooperated with the Secretary (including
providing, within a reasonable period of time, access to and
inspection of all witnesses, information, and documents within the
control of the taxpayer as reasonably requested by the Secretary),
the Secretary shall have the burden of producing reasonable and
probative information concerning such deficiency in addition to
such information return.
(e) Deficiency proceedings
For special rules applicable to deficiencies of income,
estate, gift, and certain excise taxes, see subchapter B.