Page:United States Statutes at Large Volume 90 Part 2.djvu/227

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PUBLIC LAW 94-000—MMMM. DD, 1976

PUBLIC LAW 94-455—OCT. 4, 1976

90 STAT. 1695

(4) The table of sections for subchapter A of chapter 76 is amended by striking out the last item and inserting in lieu thereof the following: "Sec. 7407. Action to enjoin income tax return preparers. "Sec. 7408. Cross references." (j) EFFECTIVE D A T E. — The amendments made by this section shall 26 USC 7701 apply to documents prepared after December 31, 1976. °°*^" SEC. 1204. JEOPARDY AND TERMINATION ASSESSMENTS. (a)

R E VI E W OF JEOPARDY AND TERMINATION ASSESSMENTS.—Sub-

chapter B of chapter 76 (relating to proceedings by taxpayers and t h i r d parties) is amended by inserting after section 7428 the following new section: "SEC. 7429. REVIEW OF JEOPARDY ASSESSMENT PROCEDURES. 26 USC 7429. " (a) ADMINISTRATIVE R E VI E W. —

" (1) INFORMATION TO TAXPAYER.—Within 5 days after the d a y on which an assessment is made under section 6851(a), 6861(a), or 6862, the Secretary shall provide the taxpayer with a written statement of the information upon which the Secretary relies in making such assessment. " (2) REQUEST FOR REVIEW.—Within 30 days after the day on which the taxpayer is furnished the written statement described in paragraph (1), or within 30 days after the last d a y of the period within which such statement is required to be furnished, the taxpayer may request the Secretary to review the action taken. "(3)

REDETERMINATION BY SECRETARY.—After a request

for

review is made under paragraph (2), the Secretary shall determine whether or not— " (A) the making of the assessment under section 6851, 6861, or 6862, as the case mfiy be, is reasonable under the circumstances, and " (B) the amount so assessed or demanded as a result of the action taken under section 6851, 6861, or 6862 is a p p r o p r i a t e under the circumstances. " (b) JUDICIAL R E VI E W. —

" (1) ACTIONS PERMITTED.—Within 30 days after the earlier of— " (A) the d a y the Secretary notifies the taxpayer of his determination described in subsection (a)(3), or " (B) the 16th day after the request described in subsection (a)(2) was made, the tax p a y e r may b r i n g a civil action against the United States in a district court of the United States for a determination under this subsection. " (2) DETERMINATION BY DISTRICT COURT.—Within 20 days after

an action is commenced under paragraph (1), the district court shall determine whether or not— " (A) the making of the assessment under section 6851, 6861, or 6862, as the case may be, is reasonable under the circumstances, and " (B) the amount so assessed or demanded as a result of the action taken under section 6851, 6861, or 6862, is appropriate under the circumstances. " (3) ORDER OF DISTRICT COURT.—If the court determines that

the making of such assessment is unreasonable or that the amount assessed or demanded is inappropriate, the court may order the Secretary to abate such assessment, to redetermine (in whole or

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