26 U.S.C. § 7512 — Separate accounting for certain collected taxes, etc.

(a) General rule Whenever any person who is required to collect, account for, and pay over any tax imposed by subtitle C or chapter 33— (1) at the time and in the manner prescribed by law or regulations (A) fails to collect, truthfully account for, or pay over that tax, or (B) fails to make deposits, payments, or returns of that tax, and (2) is notified, by notice delivered in hand to that person, of any that failure, then all the requirements of subsection (b) must be complied with. In the case of a corporation^*, partnership^*, or trust, notice delivered in hand to an officer, partner^*, or trustee, must, for purposes of this section, be deemed to be notice delivered in hand to that corporation, partnership, or trust and to all officers, partners, trustees, and employees of it. (b) Requirements Any person who is required to collect, account for, and pay over any tax imposed by subtitle C or chapter 33, if notice has been delivered to that person in accordance with subsection (a), must collect the taxes imposed by subtitle C or chapter 33 which become collectible after delivery of that notice, must (not later than the end of the second banking day after any amount of that taxes is collected) deposit that amount in a separate account in a bank (as defined in section 581), and must keep the amount of that taxes in that account until payment over to the United States. Any that account must be identified as a special fund^* in trust for the United States, payable to the United States by that person as trustee. (c) Relief from further compliance with subsection (b) Whenever the Secretary^* is satisfied, with respect to any notification made under subsection (a), that all requirements of law and regulations with respect to the taxes imposed by subtitle C or chapter 33, as the case may be, will henceforth be complied with, he may cancel that notification. Such cancellation must take effect at that time as is specified in the notice of that cancellation.