Internal Revenue Code · 26 U.S.C.
§ 7507. Exemption of insolvent banks from tax
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. § 7507
At a glance
Read from the text, the source credit and the official notes. Not part of the law.
- Status
- In force
- Enacted
- October 4, 1976 by Pub. L. 94–455
- Length
- 4 subsections · 564 words · about 2 min to read
- Cross-references
- cites 0; cited by 2 Code sections and 1 other regulation
- Regulations
- 11 issued under this section
Whenever and after any bank or trust company, a substantial portion of the business of which consists of receiving deposits and making loans and discounts, has ceased to do business by reason of insolvency or bankruptcy, no tax shall be assessed or collected, or paid into the Treasury of the United States, on account of such bank or trust company, which shall diminish the assets thereof necessary for the full payment of all its depositors; and such tax shall be abated from such national banks as are found by the Comptroller of the Currency to be insolvent; and the Secretary, when the facts shall appear to him, is authorized to remit so much of the said tax against any such insolvent banks and trust companies organized under State law as shall be found to affect the claims of their depositors.
Whenever any bank or trust company, a substantial portion of the business of which consists of receiving deposits and making loans and discounts, has been released or discharged from its liability to its depositors for any part of their claims against it, and such depositors have accepted, in lieu thereof, a lien upon subsequent earnings of such bank or trust company, or claims against assets segregated by such bank or trust company or against assets transferred from it to an individual or corporate trustee or agent, no tax shall be assessed or collected, or paid into the Treasury of the United States, on account of such bank or trust company, such individual or corporate trustee or such agent, which shall diminish the assets thereof which are available for the payment of such depositor claims and which are necessary for the full payment thereof. The term “agent”, as used in this subsection, shall be deemed to include a corporation acting as a liquidating agent.
This section shall not apply to any tax imposed by chapter 21 or chapter 23.
(Aug. 16, 1954, ch. 736, 68A Stat. 897; Pub. L. 94–455, title XIX, § 1906(a)(50), (b)(13)(A), Oct. 4, 1976, 90 Stat. 1831, 1834.)
Regulations under this section
Treasury regulations (26 CFR) issued under § 7507
- § 301.7507-1 Banks and trust companies covered.
- § 301.7507-2 Scope of section generally.
- § 301.7507-3 Segregated or transferred assets.
- § 301.7507-4 Unsegregated assets.
- § 301.7507-5 Earnings.
- § 301.7507-6 Abatement and refund.
- § 301.7507-7 Establishment of immunity.
- § 301.7507-8 Procedure during immunity.
- § 301.7507-9 Termination of immunity.
- § 301.7507-10 Collection of tax after termination of immunity.
- § 301.7507-11 Exception of employment taxes.
Cross-references
Computed from the citations in the text of Title 26 and 26 CFR.
Cited by 2 Code sections
Cited in 1 regulation not issued under it
Amendment history
From the source credit and the official notes, newest first.
Where it sits in the Code
Nearby sections
- § 7503 Time for performance of acts where last day falls on Saturday, Sunday, or legal holiday
- § 7504 Fractional parts of a dollar
- § 7505 Sale of personal property acquired by the United States
- § 7506 Administration of real estate acquired by the United States
- § 7507 Exemption of insolvent banks from tax
- § 7508 Time for performing certain acts postponed by reason of service in combat zone or contingency operation
- § 7508A Authority to postpone certain deadlines by reason of Federally declared disaster, significant fire, or terroristic or military actions
- § 7509 Expenditures incurred by the United States Postal Service
- § 7510 Exemption from tax of domestic goods purchased for the United States
Official notes
Show the Law Revision Counsel's notes (amendments, effective dates)
Editorial Notes
Amendments
1976—Subsec. (a). Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”.
Subsec. (c). Pub. L. 94–455, § 1906(a)(50), struck out “after May 28, 1938” in par. (2) after “or remitted” and in par. (3) after “been refunded”.
Statutory Notes and Related Subsidiaries
Effective Date of 1976 Amendment
Amendment by Pub. L. 94–455 effective on first day of first month which begins more than 90 days after Oct. 4, 1976, see section 1906(d)(1) of Pub. L. 94–455, set out as a note under section 6013 of this title.