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Title 26, Internal Revenue CodeRelease 119-110

§7403 Action to Enforce Lien or to Subject Property to Payment of Tax

Title 26 › Subtitle F — Procedure and Administration › CHAPTER 76 — JUDICIAL PROCEEDINGS › Subchapter A — Civil Actions by the United States › § 7403

Last updated Sep 22, 2026|Official source

Summary

When someone refuses or fails to pay a tax or to take care of a tax debt, the Attorney General or a delegate can, at the Secretary’s request, bring a civil lawsuit in federal court to enforce the United States’ claim on the person’s property or to make the property pay the tax. An acceleration of payment under section 6166(g) counts as a failure to pay. Everyone who claims a lien or other interest in the property must be included in the lawsuit. The court will decide who owns what and resolve all claims. If the United States’ claim is upheld, the court can order the property sold and the money shared according to the court’s findings. If the sale is to satisfy the United States’ first lien, the government may bid up to the amount of its lien plus sale costs. The court can also appoint a receiver to manage the property to enforce the claim, and if the Secretary says it is in the public interest, the receiver can be given full powers like a receiver in equity.

Full Legal Text

Title 26, §7403

Internal Revenue Code, Source: USLM XML via OLRC

(a)Filing
In any case where there has been a refusal or neglect to pay any tax, or to discharge any liability in respect thereof, whether or not levy has been made, the Attorney General or his delegate, at the request of the Secretary, may direct a civil action to be filed in a district court of the United States to enforce the lien of the United States under this title with respect to such tax or liability or to subject any property, of whatever nature, of the delinquent, or in which he has any right, title, or interest, to the payment of such tax or liability. For purposes of the preceding sentence, any acceleration of payment under section 6166(g) shall be treated as a neglect to pay tax.
(b)Parties
All persons having liens upon or claiming any interest in the property involved in such action shall be made parties thereto.
(c)Adjudication and decree
The court shall, after the parties have been duly notified of the action, proceed to adjudicate all matters involved therein and finally determine the merits of all claims to and liens upon the property, and, in all cases where a claim or interest of the United States therein is established, may decree a sale of such property, by the proper officer of the court, and a distribution of the proceeds of such sale according to the findings of the court in respect to the interests of the parties and of the United States. If the property is sold to satisfy a first lien held by the United States, the United States may bid at the sale such sum, not exceeding the amount of such lien with expenses of sale, as the Secretary directs.
(d)Receivership
In any such proceeding, at the instance of the United States, the court may appoint a receiver to enforce the lien, or, upon certification by the Secretary during the pendency of such proceedings that it is in the public interest, may appoint a receiver with all the powers of a receiver in equity.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

1981—Subsec. (a). Pub. L. 97–34 struck out “or 6166A(h)” after “section 6166(g)”. 1976—Subsec. (a). Pub. L. 94–455, §§ 1906(b)(13)(A), 2004(f)(2), struck out “or his delegate” after “Secretary” and inserted provisions relating to the acceleration of payment under section 6166(g) or 6166A(h). Subsecs. (c), (d). Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”. 1966—Subsec. (c). Pub. L. 89–719 inserted sentence permitting the United States, if the property is sold to satisfy a first lien held by the United States, to bid at the sale such sum, not more than the amount of such lien with expenses of sale, as the Secretary or his delegate directs.

Statutory Notes and Related Subsidiaries

Effective Date

of 1981 AmendmentAmendment by Pub. L. 97–34 applicable to estates of decedents dying after Dec. 31, 1981, see section 422(f)(1) of Pub. L. 97–34, set out as a note under section 6166 of this title.

Effective Date

of 1966 AmendmentAmendment by Pub. L. 89–719 applicable after Nov. 2, 1966, regardless of when title or lien of United States arose or when lien or interest of another person was acquired, with certain exceptions, see section 114(a)–(c) of Pub. L. 89–719, set out as a note under section 6323 of this title.

Reference

Citations & Metadata

Citation

26 U.S.C. § 7403

Title 26, Internal Revenue Code

Last Updated

Sep 22, 2026

Release point: 119-110