§7506 — Title 26 Internal Revenue Code | U.S. Code

Summary

When real estate ends up owned by the federal government because of tax debts — through forfeiture, payment of tax debts, or as security for those debts — the Treasury Secretary manages it. The Secretary can sell the property at a public sale after giving at least 20 days' notice, and can lease it out until it is sold. If the property was taken over a tax debt and the debtor pays the debt in full, plus interest at 1 percent per month, within 2 years of the government acquiring it, the Secretary can return the property to the debtor or the debtor's heirs.

Title 26, §7506

Internal Revenue Code — Source: USLM XML via OLRC

(a)The Secretary shall have charge of all real estate which is or shall become the property of the United States by judgment of forfeiture under the internal revenue laws, or which has been or shall be assigned, set off, or conveyed by purchase or otherwise to the United States in payment of debts or penalties arising under the laws relating to internal revenue, or which has been or shall be vested in the United States by mortgage or other security for the payment of such debts, or which has been redeemed by the United States, and of all trusts created for the use of the United States in payment of such debts due them.

(b)The Secretary, may, at public sale, and upon not less than 20 days’ notice, sell and dispose of any real estate owned or held by the United States as aforesaid.

(c)Until such sale, the Secretary may lease such real estate owned as aforesaid on such terms and for such period as the Secretary shall deem proper.

(d)In cases where real estate has or may become the property of the United States by conveyance or otherwise, in payment of or as security for a debt arising under the laws relating to internal revenue, and such debt shall have been paid, together with the interest thereon, at the rate of 1 percent per month, to the United States, within 2 years from the date of the acquisition of such real estate, it shall be lawful for the Secretary to release by deed or otherwise convey such real estate to the debtor from whom it was taken, or to his heirs or other legal representatives.

Notes & Related Subsidiaries

Editorial Notes

Amendments

1976—Subsecs. (a) to (d). Pub. L. 94–455 struck out “or his delegate” after “Secretary” wherever appearing. 1966—Subsec. (a). Pub. L. 89–719 inserted reference to real estate which has been redeemed by the United States.

Statutory Notes and Related Subsidiaries

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.

§7506 Administration of Real Estate Acquired by the United States