Title 26, Internal Revenue CodeRelease 119-110
§7501 Liability for Taxes Withheld or Collected
Title 26 › Subtitle F — Procedure and Administration › CHAPTER 77 — MISCELLANEOUS PROVISIONS › § 7501
Summary
If you collect or withhold federal tax for someone else, you must keep that money separate and hold it in trust for the United States and pay it over. It is handled and enforced like the tax itself, including penalties (see sections 6672 and 7202).
Full Legal Text
Title 26, §7501
Internal Revenue Code, Source: USLM XML via OLRC
(a)General rule
Whenever any person is required to collect or withhold any internal revenue tax from any other person and to pay over such tax to the United States, the amount of tax so collected or withheld shall be held to be a special fund in trust for the United States. The amount of such fund shall be assessed, collected, and paid in the same manner and subject to the same provisions and limitations (including penalties) as are applicable with respect to the taxes from which such fund arose.
(b)Penalties
For penalties applicable to violations of this section, see section 6672 and 7202.
Reference
Citations & Metadata
Citation
26 U.S.C. § 7501
Title 26, Internal Revenue Code
Last Updated
Sep 22, 2026
Release point: 119-110