---
kind: "section"
citation: "26 U.S.C. § 6867"
title: "26"
title_heading: "Internal Revenue Code"
number: "6867"
heading: "Presumptions where owner of large amount of cash is not identified"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/26/6867"
units:
  - "Subtitle F — Procedure and Administration"
  - "Chapter 70 — Jeopardy, Receiverships, Etc."
  - "Subchapter A — Jeopardy"
  - "Part III — Special Rules with Respect to Certain Cash"
---

# §6867. Presumptions where owner of large amount of cash is not identified

- (a) **General rule—** If the individual who is in physical possession of cash in excess of $10,000 does not claim such cash—
  - (1) as his, or
  - (2) as belonging to another [person](/usc/26/7701.md?p=a-1) whose identity the [Secretary](/usc/26/7701.md?p=a-11-B) can readily ascertain and who acknowledges ownership of such cash,

  then, for purposes of sections [6851](/usc/26/6851.md) and [6861](/usc/26/6861.md), it shall be presumed that such cash represents gross income of a single individual for the [taxable year](/usc/26/7701.md?p=a-23) in which the possession occurs, and that the collection of tax will be jeopardized by delay.

- (b) **Rules for assessing—** In the case of any assessment resulting from the application of [subsection (a)](#a)—
  - (1) the entire amount of the cash shall be treated as taxable income for the [taxable year](/usc/26/7701.md?p=a-23) in which the possession occurs,
  - (2) such income shall be treated as taxable at the highest rate of tax specified in [section 1](/usc/26/1.md), and
  - (3) except as provided in [subsection (c)](#c), the possessor of the cash shall be treated (solely with respect to such cash) as the [taxpayer](/usc/26/7701.md?p=a-14) for purposes of chapters [63](/usc/26/chstF/ch63.md) and [64](/usc/26/chstF/ch64.md) and [section 7429(a)(1)](/usc/26/7429.md?p=a-1).
- (c) **Effect of later substitution of true owner—** If, after an assessment resulting from the application of [subsection (a)](#a), such assessment is abated and replaced by an assessment against the owner of the cash, such later assessment shall be treated for purposes of all laws relating to lien, [levy](/usc/26/7701.md?p=a-21) and collection as relating back to the date of the original assessment.
- (d) **Definitions—** For purposes of this section—
  - (1) **Cash—** The term “cash” [includes](/usc/26/7701.md?p=c) any cash equivalent.
  - (2) **Cash equivalent—** The term “cash equivalent” means—
    - (A) [foreign](/usc/26/7701.md?p=a-5) currency,
    - (B) any bearer obligation, and
    - (C) any medium of exchange which—
      - (i) is of a type which has been frequently used in illegal activities, and
      - (ii) is specified as a cash equivalent for purposes of this part in regulations prescribed by the [Secretary](/usc/26/7701.md?p=a-11-B).
  - (3) **Value of cash equivalent—** Any cash equivalent shall be taken into account—
    - (A) in the case of a bearer obligation, at its face amount, and
    - (B) in the case of any other cash equivalent, at its fair market value.

## Source credit

(Added Pub. L. 97–248, title III, § 330(a), Sept. 3, 1982, 96 Stat. 619; amended Pub. L. 100–647, title I, § 1001(a)(1), Nov. 10, 1988, 102 Stat. 3349.)

## Notes

### Editorial Notes

### Amendments

1988—Subsec. (b)(2). Pub. L. 100–647 substituted “the highest rate of tax specified in section 1” for “a 50-percent rate”.

### Statutory Notes and Related Subsidiaries

### Effective Date of 1988 Amendment

Amendment by Pub. L. 100–647 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99–514, to which such amendment relates, see section 1019(a) of Pub. L. 100–647, set out as a note under section 1 of this title.

### Effective Date

Pub. L. 97–248, title III, § 330(c), Sept. 3, 1982, 96 Stat. 620, provided that: “The amendments made by subsections (a) and (b) [enacting this section] shall take effect on the day after the date of the enactment of this Act [Sept. 3, 1982].”