Skip to content

General education, not advice for your situation.

Carry Forward Learning Start here Intern0 XP

Internal Revenue Code · 26 U.S.C.

§ 6867. Presumptions where owner of large amount of cash is not identified

In force Text current through Public Law 119-121 (October 9, 2026) release point 119-121

Official text, no changes From the Office of the Law Revision Counsel, release point 119-121 (current through Public Law 119-121 (October 9, 2026)). Compare it with the official text at uscode.house.gov (external site).

Cite as 26 U.S.C. § 6867

At a glance

Read from the text, the source credit and the official notes. Not part of the law.

Status
In force
Added
September 3, 1982 by Pub. L. 97–248
Last amended
November 10, 1988 by Pub. L. 100–647
Amendments
1 dated changes in the source credit
Length
4 subsections · 376 words · about 2 min to read
Defines
2 terms
Cross-references
cites 4; cited by 0 Code sections and 0 other regulations
Regulations
1 issued under this section
(a) General rule If the individual who is in physical possession of cash in excess of $10,000 does not claim such cash—
(1) as his, or
(2) as belonging to another person whose identity the Secretary can readily ascertain and who acknowledges ownership of such cash,
then, for purposes of sections 6851 and 6861, it shall be presumed that such cash represents gross income of a single individual for the taxable year in which the possession occurs, and that the collection of tax will be jeopardized by delay.
(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
(3) except as provided in subsection (c), the possessor of the cash shall be treated (solely with respect to such cash) as the taxpayer for purposes of chapters 63 and 64 and section 7429(a)(1).
(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.

(d) Definitions For purposes of this section—
(1) Cash

The term “cash” includes any cash equivalent.

(2) Cash equivalent The term “cash equivalent” means—
(A) foreign currency,
(B) any bearer obligation, and
(C) any medium of exchange which—
(i) is of a type which has been frequently used in illegal activities, and
(ii) is specified as a cash equivalent for purposes of this part in regulations prescribed by the Secretary.
(3) Value of cash equivalent Any cash equivalent shall be taken into account—
(A) in the case of a bearer obligation, at its face amount, and
(B) in the case of any other cash equivalent, at its fair market value.

(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.)

Terms defined here

Where the text says “the term … means”. Select a term to jump to its definition.

Regulations under this section

Treasury regulations (26 CFR) issued under § 6867

Cross-references

Computed from the citations in the text of Title 26 and 26 CFR.

This section cites 4 other sections

Amendment history

From the source credit and the official notes, newest first.

  1. Amended by Pub. L. 100–647Parts changed in 1988: (b)(2)
  2. Added by Pub. L. 97–248

Where it sits in the Code

  1. Subtitle F Procedure and Administration
  2. Chapter 70 JEOPARDY, RECEIVERSHIPS, ETC.
  3. Subchapter A Jeopardy
  4. Part III SPECIAL RULES WITH RESPECT TO CERTAIN CASH

Official notes

Show the Law Revision Counsel's notes (amendments, effective dates)

Editorial Notes

Amendments

1988—Subsec. (b)(2). Pub. L. 100–647 substituted “the highest rate of tax specified in section 1” for “a 50-percent rate”.

Statutory Notes and Related Subsidiaries

Effective Date of 1988 Amendment

Amendment by Pub. L. 100–647 effective, 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) of Pub. L. 100–647, set out as a note under section 1 of this title.

Effective Date

Pub. L. 97–248, title III, § 330(c), Sept. 3, 1982, 96 Stat. 620, provided that: “The amendments made by subsections (a) and (b) [enacting this section] shall take effect on the day after the date of the enactment of this Act [Sept. 3, 1982].”