[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: 26CFR301.6863-1]

[Page 465]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 301_PROCEDURE AND ADMINISTRATION--Table of Contents
 
                 Jeopardy, Bankruptcy, and Receiverships
 
Sec. 301.6863-1  Stay of collection of jeopardy assessments; bond to stay 
collection.

    (a) General rule. (1) The collection of an assessment under section 
6851, 6861, or 6862 (referred to as a ``jeopardy assessment'' for 
purposes of this section), or under section 6852 (referred to as a 
political assessment for purposes of this section) of any tax may be 
stayed by filing with the district director a bond on the form to be 
furnished by the district director upon request.
    (2) The bond may be filed--
    (i) At any time before the time collection by levy is authorized 
under section 6331(a), or
    (ii) After collection by levy is authorized and before levy is made 
on any property or rights to property, or
    (iii) In the discretion of the district director, after any such 
levy has been made and before the expiration of the period of 
limitations on collection.
    (3) The bond must be in an amount equal to the portion (including 
interest thereon to the date of payment as calculated by the district 
director) of the jeopardy assessment or political assessment collection 
of which is sought to be stayed. See section 7101 and Sec. 301.7101-1, 
relating to the form of bond and the sureties thereon. The bond shall be 
conditioned upon the payment of the amount (together with interest 
thereon), the collection of which is stayed, at the time at which, but 
for the making of the jeopardy assessment, such amount would be due.
    (4) Upon the filing of a bond in accordance with this section, the 
collection of so much of the assessment as is covered by the bond will 
be stayed. The taxpayer may at any time waive the stay of collection of 
the whole or any part of the amount covered by the bond. If as a result 
of such waiver any part of the amount covered by the bond is paid, or if 
any portion of the jeopardy assessment or political assessment is abated 
by the district director, then the bond shall be at the request of the 
taxpayer be proportionately reduced.
    (b) Additional conditions applicable to income, estate, gift, and 
chapter 41, 42, 43 and 44 tax assessments. In the case of jeopardy 
assessment or political assessment of income, estate, gift, chapter 41, 
42, 43, or 44 tax, the bond must be conditioned upon the payment of so 
much of the amount included therein as is not abated by a decision of 
the Tax Court which has become final, together with the interest on such 
amount. If the Tax Court determines that the amount assessed is greater 
than the correct amount of the tax, the bond will be proportionately 
reduced at the request of the taxpayer after the Tax Court renders its 
decision. If the bond is given before the taxpayer has filed his 
petition with the Tax Court, it must contain a further condition that if 
a petition is not filed before the expiration of the period provided in 
section 6213(a) for the filing of such petition the amount stayed by the 
bond will be paid upon notice and demand at any time after the 
expiration of such period, together with interest thereon at the annual 
rate referred to in the regulations under section 6621 from the date of 
the jeopardy (or political assessment) notice and demand to the date of 
the notice and demand made after the expiration of the period for filing 
petition with the Tax Court.

[32 FR 15241, Nov. 3, 1967, as amended by T.D. 7384, 40 FR 49325, Oct. 
22, 1975; T.D. 7575, 43 FR 58817, Dec. 18, 1978; T.D. 7838, 47 FR 44253, 
Oct. 7, 1982; T.D. 8628, 60 FR 62213, Dec. 5, 1995]

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