26 U.S.C. § 6311 | Payment of tax by commercially acceptable means

(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 others

If 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 regulations

The 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

section 3718(f) of title 31Notwithstanding , 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 cards

If use of credit cards is accepted as a method of payment of taxes pursuant to subsection (a)—

(A)

15 U.S.C. 1666 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 (), 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)

15 U.S.C. 1666i 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 (), or to any similar provisions of State law,

(C)

15 U.S.C. 1693f 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 (), 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)

15 U.S.C. 1602(g) the term “creditor” under section 103(g) of the Truth in Lending Act () 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)

15 U.S.C. 1666 15 U.S.C. 1693f 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 () or section 908 of the Electronic Fund Transfer Act (), 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, 197690 Stat. 1834 Pub. L. 98–369, div. A, title IV, § 448(a)July 18, 198498 Stat. 817 Pub. L. 105–34, title XII, § 1205(a)Aug. 5, 1997111 Stat. 995 Pub. L. 105–206, title VI, § 6012(b)(1)July 22, 1998112 Stat. 819 Pub. L. 105–277, div. J, title IV, § 4003(k)Oct. 21, 1998112 Stat. 2681–910 Pub. L. 115–141, div. U, title IV, § 401(a)(280)Mar. 23, 2018132 Stat. 1197 Pub. L. 116–25, title II, § 2303July 1, 2019133 Stat. 1013(, ; , , ; , , ; , , ; , , ; , , ; , , ; , , .)

Editorial Notes

Amendments

Pub. L. 116–252019—Subsec. (d)(2). 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.”

Pub. L. 115–1412018—Subsec. (d)(3)(D). substituted “section 103(g)” for “section 103(f)” and “1602(g)” for “1602(f)”.

Pub. L. 105–2771998—Subsec. (d)(2). 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”.

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

Pub. L. 105–341997— 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.

Pub. L. 98–3691984—Subsec. (b)(2). 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.

Pub. L. 94–4551976—Subsec. (a). struck out “or his delegate” after “Secretary” wherever appearing.

Statutory Notes and Related Subsidiaries

Effective Date of 1998 Amendments

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

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

Effective Date of 1997 Amendment

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

Effective Date of 1984 Amendment

Pub. L. 98–369, div. A, title IV, § 448(b)July 18, 198498 Stat. 818

July 18, 1984“The amendments made by subsection (a) [amending this section] shall take effect on the date of the enactment of this Act [].”

, , , provided that:

Regulations

Pub. L. 105–206, title III, § 3703July 22, 1998112 Stat. 777

“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.”

, , , provided that:

Required Notice of Certain Payments

Pub. L. 104–168, title XII, § 1202July 30, 1996110 Stat. 1470

“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.”

, , , provided that: