26 U.S. Code § 6867 - Presumptions where owner of large amount of cash is not identified
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(a) General rule
If the individual who is in physical possession of cash in excess of $10,000 does not claim such cash—
(2) as belonging to another person whose identity the Secretary can readily ascertain and who acknowledges ownership of such cash,
(b) Rules for assessing
In the case of any assessment resulting from the application of subsection (a)—
(1) the entire amount of the cash shall be treated as taxable income for the taxable year in which the possession occurs,
(2) such income shall be treated as taxable at the highest rate of tax specified in section 1, and
(c) Effect of later substitution of true owner
If, after an assessment resulting from the application of subsection (a), such assessment is abated and replaced by an assessment against the owner of the cash, such later assessment shall be treated for purposes of all laws relating to lien, levy and collection as relating back to the date of the original assessment.
For purposes of this section—
(2) Cash equivalent
The term “cash equivalent” means—
Source(Added Pub. L. 97–248, title III, § 330(a),Sept. 3, 1982, 96 Stat. 619; amended Pub. L. 100–647, title I, § 1001(a)(1),Nov. 10, 1988, 102 Stat. 3349.)
1988—Subsec. (b)(2). Pub. L. 100–647substituted “the highest rate of tax specified in section 1” for “a 50-percent rate”.
Effective Date of 1988 Amendment
Amendment by Pub. L. 100–647effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99–514, to which such amendment relates, see section 1019(a) ofPub. L. 100–647, set out as a note under section 1 of this title.