---
kind: "section"
citation: "22 U.S.C. § 1631k"
title: "22"
title_heading: "Foreign Relations and Intercourse"
number: "1631k"
heading: "Taxes"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/22/1631k"
units:
  - "Chapter 21 — Settlement of International Claims"
  - "Subchapter II — Vesting and Liquidation of Bulgarian, Hungarian, and Rumanian Property"
---

# §1631k. Taxes

- (a) **Liability—** The vesting in any officer or agency designated by the President under this subchapter of any [property](/usc/22/1631.md?p=2) or the receipt by such designee of any earnings, increment, or proceeds thereof shall not render inapplicable any Federal, State, Territorial, or local tax for any period before or after such vesting.
- (b) **Payment by designee; liability of former owner; enforcement of tax liability; transfer of property—** The officer or agency designated by the President under this subchapter shall, notwithstanding the filing of any claim or the institution of any suit under this subchapter, pay any tax incident to any such [property](/usc/22/1631.md?p=2), or the earnings, increment, or proceeds thereof, at the earliest time appearing to him to be not contrary to the interest of the [United States](/usc/22/1621.md?p=b). The former owner shall not be liable for any such tax accruing while such [property](/usc/22/1631.md?p=2), earnings, increment, or proceeds are held by such designee, unless they are returned pursuant to this subchapter without payment of such tax by the designee. Every such tax shall be paid by the designee to the same extent, as nearly as may be deemed practicable, as though the [property](/usc/22/1631.md?p=2) had not been vested, and shall be paid only out of the [property](/usc/22/1631.md?p=2), or earnings, increment, or proceeds thereof, to which they are incident or out of other [property](/usc/22/1631.md?p=2) acquired from the same former owner, or earnings, increment, or proceeds thereof. No tax liability may be enforced from any [property](/usc/22/1631.md?p=2) or the earnings, increment, or proceeds thereof while held by the designee except with his consent. Where any [property](/usc/22/1631.md?p=2) is transferred, otherwise than pursuant to section [1631f(a)](/usc/22/1631f.md?p=a) or [1631f(b)](/usc/22/1631f.md?p=b) of this title, the designee may transfer the [property](/usc/22/1631.md?p=2) free and clear of any tax, except to the extent of any lien for a tax existing and perfected at the date of vesting, and the proceeds of such transfer shall, for tax purposes, replace the [property](/usc/22/1631.md?p=2) in the hands of the designee.
- (c) **Computation; suspension of limitations—** Subject to the provisions of [subsection (b)](#b) of this section, the manner of computing any Federal taxes, including without limitation by reason of this enumeration, the applicability in such computation of credits, deductions, and exemptions to which the former owner is or would be entitled, and the time and manner of any payment of such taxes and the extent of any compliance by the designee with provisions of Federal law and regulations applicable with respect to Federal taxes, shall be in accordance with regulations prescribed by the [Secretary](/usc/22/277d–43.md?p=5) of the Treasury to effectuate this section. Statutes of limitations on assessments, collection, refund, or credit of Federal taxes shall be suspended with respect to any vested [property](/usc/22/1631.md?p=2) or the earnings, increment, or proceeds thereof, while vested and for six months thereafter; but no interest shall be paid upon any refund with respect to any period during which the statute of limitations is so suspended.
- (d) **“Tax” defined—** The word “tax” as used in this section shall include, without limitation by reason of this enumeration, any [property](/usc/22/1631.md?p=2), income, excess-profits, war-profits, excise, estate, and employment tax, import duty, and special assessment; and also any interest, penalty, additional amount, or addition thereto not arising from any act, omission, neglect, failure, or delay on the part of the designee.

## Source credit

(Mar. 10, 1950, ch. 54, title II, § 212, as added Aug. 9, 1955, ch. 645, § 3, 69 Stat. 569.)