§6867 Presumptions Where Owner of Large Amount of Cash Is Not Identified

Summary

If a person is holding more than $10,000 in cash and they do not say the money is theirs or name who owns it, the government will assume the money is that person’s income for the tax year when they had it. The government will also treat waiting as risky for collecting the tax. The whole amount will be taxed as income for that year and taxed at the highest income tax rate in section 1. The person holding the cash will be treated as the taxpayer for tax and collection purposes unless the true owner is later identified. If the true owner is later found and the tax is reassessed against that owner, the new assessment counts as if it was made on the original assessment date for lien, levy, and collection rules. “Cash” includes cash equivalents. “Cash equivalent” means foreign currency, bearer obligations, and other mediums often used in illegal activity that Treasury names in rules. Bearer obligations are valued at face amount. Other cash equivalents are valued at fair market value.