[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: 26CFR301.6863-2]

[Page 466]
 
                       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. 301.6863-2  Collection of jeopardy assessment; stay of sale of seized 
property pending Tax Court decision.

    (a) General rule. In the case of an assessment under section 6851, 
6852, 6861, or 6862, any property seized for the collection of such 
assessment shall not (except as provided in paragraph (b) of this 
section) be sold until the latest of the following occurs:
    (1) The period provided in section 7429(a)(2) to request the 
district director to review the action taken expires.
    (2) The period provided in section 7429(b)(1) to file an action in 
U.S. District Court expires if a request for a redetermination is made 
to the district director.
    (3) The U.S. District Court judgment in such action becomes final, 
if a civil action is begun in accordance with section 7429(b).
    (4) In addition to the occurrences described in paragraphs (a), (1), 
(2), and (3) of this section, in the case of an assessment of income, 
estate, gift, chapter 41, 42, 43, or 44 excise taxes, until the latest 
of the following occurs:
    (i) The expiration of the period provided in section 6213(a) within 
which the taxpayer may file a petition with the Tax Court; or
    (ii) The decision of the Tax Court becomes final, if a petition for 
redetermination is filed with the Tax Court (whether before or after the 
making of the assessment).

However, notwithstanding paragraph (a)(4)(i) of this section, in the 
case of a termination assessment under section 6851, property seized may 
be sold after the due date (determined with extensions) of the 
taxpayer's return if the taxpayer does not file a return by such date. 
Furthermore, for the purposes of paragraph (a)(4)(ii) of this section, a 
petition will not operate as a further stay of the sale of the seized 
property unless the taxpayer files a bond as provided in section 7485.
    (b) Exceptions. Notwithstanding the provisions of paragraph (a) of 
this section, any property seized may be sold--
    (1) If the taxpayer files with the district director a written 
consent to the sale, or
    (2) If the district director determines that the expenses of 
conservation and maintenance of the property will greatly reduce the net 
proceeds from the sale of such property, or
    (3) If the property is of a type to which section 6336 (relating to 
sale of perishable goods) is applicable.

[32 FR 15241, Nov. 3, 1967, as amended by T.D. 7575, 43 FR 58817, Dec. 
18, 1978; T.D. 8628, 60 FR 62213, Dec. 5, 1995]