[Code of Federal Regulations]
[Title 26, Volume 18]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR301.6311-1]

[Page 207-208]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 301_PROCEDURE AND ADMINISTRATION--Table of Contents
 
                               Collection
 
Sec. 301.6311-1  Payment by check or money order.

    (a) Authority to receive--(1) In general. (i) District directors, 
Service Center directors, and Compliance Center directors (director) may 
accept checks or drafts drawn on any financial institution incorporated 
under the laws of the United States or under the laws of any State, the 
District of Columbia, or any possession of the United States, or money 
orders in payment for internal revenue taxes, provided the checks, 
drafts, or money orders are collectible in United States currency at 
par, and subject to the further provisions contained in this section. 
The director may accept the checks, drafts, or money orders in payment 
for internal revenue stamps to the extent and under the conditions 
prescribed in paragraph (a)(2) of this section. A check or money order 
in payment for internal revenue taxes or internal revenue stamps should 
be made payable to the United States Treasury. A check or money order is 
payable at par only if the full amount thereof is payable without any 
deduction for exchange or other charges. As used in this section, the 
term ``money order'' means: (a) U.S. postal, bank, express, or telegraph 
money order; (b) money order issued by

[[Page 208]]

a domestic building and loan association (as defined in section 
7701(a)(19)) or by a similar association incorporated under the laws of 
a possession of the United States; (c) a money order issued by such 
other organization as the Commissioner may designate; and (d) a money 
order described in subdivision (ii) of this subparagraph in cases 
therein described. However, the director may refuse to accept any 
personal check whenever he or she has good reason to believe that such 
check will not be honored upon presentment.
    (ii) An American citizen residing in a country with which the United 
States maintains direct exchange of money orders on a domestic basis may 
pay his tax by postal money order of such country. For a list of such 
countries, see section 171.27 of the Postal Manual of the United States.
    (iii) If one check or money order is remitted to cover two or more 
persons' taxes, the remittance should be accompanied by a letter of 
transmittal clearly identifying--
    (a) Each person whose tax is to be paid by the remittance;
    (b) The amount of the payment on account of each such person; and
    (c) The kind of tax paid.
    (2) Payment for internal revenue stamps. The director may accept 
checks, drafts, and money orders described in paragraph (a)(1) of this 
section in payment for internal revenue stamps. However, the director 
may refuse to accept any personal check whenever he or she has good 
reason to believe that such check will not be honored upon presentment.
    (b) Checks or money orders not paid--(1) Ultimate liability. The 
person who tenders any check (whether certified or uncertified, 
cashier's, treasurer's, or other form of check or draft) or money order 
in payment for taxes or stamps is not released from his or her liability 
until the check, draft, or money order is paid; and, if the check, 
draft, or money order is not duly paid, the person shall also be liable 
for all legal penalties and additions, to the same extent as if such 
check, draft, or money order had not been tendered.
    (2) Liability of financial institutions and others. If any 
certified, treasurer's, or cashier's check, or other guaranteed draft, 
or money order, is not duly paid, the United States shall have a lien 
for the amount of such check or draft upon all assets of the financial 
institution on which drawn, or for the amount of such money order upon 
the assets of the issuer thereof. The unpaid amount shall be paid out of 
such assets in preference to any other claims against such financial 
institution or issuer except the necessary costs and expenses of 
administration and the reimbursement of the United States for the amount 
expended in the redemption of the circulating notes of such financial 
institution. In addition, the Government has the right to exact payment 
from the person required to make the payment.
    (c) Payment in nonconvertible foreign currency. For rules relating 
to payment of income taxes and taxes under the Federal Insurance 
Contributions Act in nonconvertible foreign currency, see section 6316 
and the regulations thereunder.
    (d) Financial institution. For purposes of section 6311 and this 
section, financial institution includes but is not limited to--
    (1) A bank or trust company (as defined in section 581);
    (2) A domestic building and loan association (as defined in section 
7701(a)(19));
    (3) A mutual savings bank (including but not limited to a mutual 
savings bank as defined in section 591(b));
    (4) A credit union (including both state and federal credit unions, 
and including but not limited to a credit union as defined in section 
501(c)(14)); and
    (5) A regulated investment company (as defined in section 851(a)).

[32 FR 15241, Nov. 3, 1967, as amended by T.D. 7188, 37 FR 12795, June 
29, 1972; T.D. ATF-33, 41 FR 44038, Oct. 6, 1976; T.D. 8595, 60 FR 
20899, Apr. 28, 1995; T.D. 8969, 66 FR 64743, Dec. 14, 2001]