[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: 26CFR301.7507-4]

[Page 555-556]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 301_PROCEDURE AND ADMINISTRATION--Table of Contents
 
                          Judicial Proceedings
 
Sec. 301.7507-4  Unsegregated assets.

    (a) Depositors' claims against assets. (1) Claims of depositors, to 
the extent that they are to be satisfied out of segregated assets, will 
not be considered in determining the availability of unsegregated assets 
for tax collection. If depositors have agreed to accept payment out of 
segregated assets only, collection of tax from unsegregated assets

[[Page 556]]

will not diminish the assets available and necessary for payment of the 
depositors' claims. Thus, it may be possible to collect taxes from the 
unsegregated assets of a bank although the segregated assets are immune 
under the section.
    (2) If the unsegregated assets of the bank are subject to any 
portion of the depositors' claims, such unsegregated assets will be 
within the immunity of the section only to the extent necessary to 
satisfy the claims to which such assets are subject. Taxes will still be 
collectible from the unsegregated assets to the extent of the amount by 
which the total value of such assets exceeds the liability to depositors 
to be satisfied therefrom. Therefore, if, for example, in the case of a 
bank having a tax liability, not previously immune under the section, of 
$50,000, the deposit claims against the bank are in the amount of 
$75,000, and the assets available for satisfaction of deposit claims 
amount to $100,000, the $50,000 tax is collectible to the extent of the 
$25,000 excess of assets over deposit claims. Collection is not to be 
postponed until the full amount of the tax is collectible.
    (b) Depositors' claims against earnings. Even though under a bona 
fide agreement a bank has been released from depositors' claims as to 
unsegregated assets, if all or a portion of its earnings are subject to 
depositors' claims, all assets the earnings from which, in whole or 
part, are charged with the payment of depositors' claims, will be immune 
from tax collection. But see paragraph (a) of Sec. 301.7507-5.