USC Subchapter D

in effect

26 U.S.C. § 6331 Levy and distraint

(a) Authority of SecretaryIf any person liable to pay any tax neglects or refuses to pay the same within 10 days after notice and demand, it shall be lawful for the Secretary to collect such tax (and such further sum as shall be sufficient to cover the expenses of the levy) by levy upon all property and rights to property (except such property as is exempt under section 6334) belonging to such person or on which there is a lien provided in this chapter for the payment of such tax. Levy may be made upon the accrued salary or wages of any officer, employee, or elected official, of the United States, the District of Columbia, or any agency or instrumentality of the United States or the District of Columbia, by serving a notice of levy on the employer (as defined in section 3401(d)) of such officer, employee, or elected official. If the Secretary makes a finding that the collection of such tax is in jeopardy, notice and demand for immediate payment of such tax may be made by the Secretary and, upon failure or refusal to pay such tax, collection thereof by levy shall be lawful without regard to the 10-day period provided in this section. (b) Seizure and sale of propertyThe term “levy” as used in this title includes the power of distraint and seizure by any means. Except as otherwise provided in subsection (e), a levy shall extend only to property possessed and obligations existing at the time thereof. In any case in which the Secretary may levy upon property or rights to property, he may seize and sell such property or rights to property (whether real or personal, tangible or intangible). (c) Successive seizuresWhenever any property or right to property upon which levy has been made by virtue of subsection (a) is not sufficient to satisfy the claim of the United States for which levy is made, the Secretary may, thereafter, and as often as may be necessary, proceed to levy in like manner upon any other property liable to levy of the person against whom such claim exists, until the amount due from him, together with all expenses, is fully paid. (d) Requirement of notice before levy(1) In generalLevy may be made under subsection (a) upon the salary or wages or other property of any person with respect to any unpaid tax only after the Secretary has notified such person in writing of his intention to make such levy. (2) 30-day requirementThe notice required under paragraph (1) shall be—(A) given in person, (B) left at the dwelling or usual place of business of such person, or (C) sent by certified or registered mail to such persons’s last known address, no less than 30 days before the day of the levy. (3) JeopardyParagraph (1) shall not apply to a levy if the Secretary has made a finding under the last sentence of subsection (a) that the collection of tax is in jeopardy. (4) Information included with noticeThe notice required under paragraph (1) shall include a brief statement which sets forth in simple and nontechnical terms—(A) the provisions of this title relating to levy and sale of property, (B) the procedures applicable to the levy and sale of property under this title, (C) the administrative appeals available to the taxpayer with respect to such levy and sale and the procedures relating to such appeals, (D) the alternatives available to taxpayers which could prevent levy on the property (including installment agreements under section 6159), (E) the provisions of this title relating to redemption of property and release of liens on property, (F) the procedures applicable to the redemption of property and the release of a lien on property under this title, and (G) the provisions of section 7345 relating to the certification of seriously delinquent tax debts and the denial, revocation, or limitation of passports of individuals with such debts pursuant to section 32101 of the FAST Act. (e) Continuing levy on salary and wagesThe effect of a levy on salary or wages payable to or received by a taxpayer shall be continuous from the date such levy is first made until such levy is released under section 6343. (f) Uneconomical levyNo levy may be made on any property if the amount of the expenses which the Secretary estimates (at the time of levy) would be incurred by the Secretary with respect to the levy and sale of such property exceeds the fair market value of such property at the time of levy. (g) Levy on appearance date of summons(1) In generalNo levy may be made on the property of any person on any day on which such person (or officer or employee of such person) is required to appear in response to a summons issued by the Secretary for the purpose of collecting any underpayment of tax. (2) No application in case of jeopardyThis subsection shall not apply if the Secretary finds that the collection of tax is in jeopardy. (h) Continuing levy on certain payments(1) In generalIf the Secretary approves a levy under this subsection, the effect of such levy on specified payments to or received by a taxpayer shall be continuous from the date such levy is first made until such levy is released. Notwithstanding section 6334, such continuous levy shall attach to up to 15 percent of any specified payment due to the taxpayer. (2) Specified paymentFor the purposes of paragraph (1), the term “specified payment” means—(A) any Federal payment other than a payment for which eligibility is based on the income or assets (or both) of a payee, (B) any payment described in paragraph (4), (7), (9), or (11) of section 6334(a), and (C) any annuity or pension payment under the Railroad Retirement Act or benefit under the Railroad Unemployment Insurance Act. (3) Increase in levy for certain paymentsParagraph (1) shall be applied by substituting “100 percent” for “15 percent” in the case of any specified payment due to a vendor of property, goods, or services sold or leased to the Federal Government and by substituting “100 percent” for “15 percent” in the case of any specified payment due to a Medicare provider or supplier under title XVIII of the Social Security Act. (i) No levy during pendency of proceedings for refund of divisible tax(1) In generalNo levy may be made under subsection (a) on the property or rights to property of any person with respect to any unpaid divisible tax during the pendency of any proceeding brought by such person in a proper Federal trial court for the recovery of any portion of such divisible tax which was paid by such person if—(A) the decision in such proceeding would be res judicata with respect to such unpaid tax; or (B) such person would be collaterally estopped from contesting such unpaid tax by reason of such proceeding. (2) Divisible taxFor purposes of paragraph (1), the term “divisible tax” means—(A) any tax imposed by subtitle C; and (B) the penalty imposed by section 6672 with respect to any such tax. (3) Exceptions(A) Certain unpaid taxesThis subsection shall not apply with respect to any unpaid tax if—(i) the taxpayer files a written notice with the Secretary which waives the restriction imposed by this subsection on levy with respect to such tax; or (ii) the Secretary finds that the collection of such tax is in jeopardy. (B) Certain leviesThis subsection shall not apply to—(i) any levy to carry out an offset under section 6402; and (ii) any levy which was first made before the date that the applicable proceeding under this subsection commenced. (4) Limitation on collection activity; authority to enjoin collection(A) Limitation on collectionNo proceeding in court for the collection of any unpaid tax to which paragraph (1) applies shall be begun by the Secretary during the pendency of a proceeding under such paragraph. This subparagraph shall not apply to—(i) any counterclaim in a proceeding under such paragraph; or (ii) any proceeding relating to a proceeding under such paragraph. (B) Authority to enjoinNotwithstanding section 7421(a), a levy or collection proceeding prohibited by this subsection may be enjoined (during the period such prohibition is in force) by the court in which the proceeding under paragraph (1) is brought. (5) Suspension of statute of limitations on collectionThe period of limitations under section 6502 shall be suspended for the period during which the Secretary is prohibited under this subsection from making a levy. (6) Pendency of proceedingFor purposes of this subsection, a proceeding is pending beginning on the date such proceeding commences and ending on the date that a final order or judgment from which an appeal may be taken is entered in such proceeding. (j) No levy before investigation of status of property(1) In generalFor purposes of applying the provisions of this subchapter, no levy may be made on any property or right to property which is to be sold under section 6335 until a thorough investigation of the status of such property has been completed. (2) Elements in investigationFor purposes of paragraph (1), an investigation of the status of any property shall include—(A) a verification of the taxpayer’s liability; (B) the completion of an analysis under subsection (f); (C) the determination that the equity in such property is sufficient to yield net proceeds from the sale of such property to apply to such liability; and (D) a thorough consideration of alternative collection methods. (k) No levy while certain offers pending or installment agreement pending or in effect(1) Offer-in-compromise pendingNo levy may be made under subsection (a) on the property or rights to property of any person with respect to any unpaid tax—(A) during the period that an offer-in-compromise by such person under section 7122 of such unpaid tax is pending with the Secretary; and (B) if such offer is rejected by the Secretary, during the 30 days thereafter (and, if an appeal of such rejection is filed within such 30 days, during the period that such appeal is pending). For purposes of subparagraph (A), an offer is pending beginning on the date the Secretary accepts such offer for processing. (2) Installment agreementsNo levy may be made under subsection (a) on the property or rights to property of any person with respect to any unpaid tax—(A) during the period that an offer by such person for an installment agreement under section 6159 for payment of such unpaid tax is pending with the Secretary; (B) if such offer is rejected by the Secretary, during the 30 days thereafter (and, if an appeal of such rejection is filed within such 30 days, during the period that such appeal is pending); (C) during the period that such an installment agreement for payment of such unpaid tax is in effect; and (D) if such agreement is terminated by the Secretary, during the 30 days thereafter (and, if an appeal of such termination is filed within such 30 days, during the period that such appeal is pending). (3) Certain rules to applyRules similar to the rules of—(A) paragraphs (3) and (4) of subsection (i), and (B) except in the case of paragraph (2)(C), paragraph (5) of subsection (i), shall apply for purposes of this subsection. (l) Cross references(1) For provisions relating to jeopardy, see subchapter A of chapter 70. (2) For proceedings applicable to sale of seized property see section 6335. (3) For release and notice of release of levy, see section 6343.

26 U.S.C. § 6332 Surrender of property subject to levy

(a) RequirementExcept as otherwise provided in this section, any person in possession of (or obligated with respect to) property or rights to property subject to levy upon which a levy has been made shall, upon demand of the Secretary, surrender such property or rights (or discharge such obligation) to the Secretary, except such part of the property or rights as is, at the time of such demand, subject to an attachment or execution under any judicial process. (b) Special rule for life insurance and endowment contracts(1) In generalA levy on an organization with respect to a life insurance or endowment contract issued by such organization shall, without necessity for the surrender of the contract document, constitute a demand by the Secretary for payment of the amount described in paragraph (2) and the exercise of the right of the person against whom the tax is assessed to the advance of such amount. Such organization shall pay over such amount 90 days after service of notice of levy. Such notice shall include a certification by the Secretary that a copy of such notice has been mailed to the person against whom the tax is assessed at his last known address. (2) Satisfaction of levySuch levy shall be deemed to be satisfied if such organization pays over to the Secretary the amount which the person against whom the tax is assessed could have had advanced to him by such organization on the date prescribed in paragraph (1) for the satisfaction of such levy, increased by the amount of any advance (including contractual interest thereon) made to such person on or after the date such organization had actual notice or knowledge (within the meaning of section 6323(i)(1)) of the existence of the lien with respect to which such levy is made, other than an advance (including contractual interest thereon) made automatically to maintain such contract in force under an agreement entered into before such organization had such notice or knowledge. (3) Enforcement proceedingsThe satisfaction of a levy under paragraph (2) shall be without prejudice to any civil action for the enforcement of any lien imposed by this title with respect to such contract. (c) Special rule for banksAny bank (as defined in section 408(n)) shall surrender (subject to an attachment or execution under judicial process) any deposits (including interest thereon) in such bank only after 21 days after service of levy. (d) Enforcement of levy(1) Extent of personal liabilityAny person who fails or refuses to surrender any property or rights to property, subject to levy, upon demand by the Secretary, shall be liable in his own person and estate to the United States in a sum equal to the value of the property or rights not so surrendered, but not exceeding the amount of taxes for the collection of which such levy has been made, together with costs and interest on such sum at the underpayment rate established under section 6621 from the date of such levy (or, in the case of a levy described in section 6331(d)(3), from the date such person would otherwise have been obligated to pay over such amounts to the taxpayer). Any amount (other than costs) recovered under this paragraph shall be credited against the tax liability for the collection of which such levy was made. (2) Penalty for violationIn addition to the personal liability imposed by paragraph (1), if any person required to surrender property or rights to property fails or refuses to surrender such property or rights to property without reasonable cause, such person shall be liable for a penalty equal to 50 percent of the amount recoverable under paragraph (1). No part of such penalty shall be credited against the tax liability for the collection of which such levy was made. (e) Effect of honoring levyAny person in possession of (or obligated with respect to) property or rights to property subject to levy upon which a levy has been made who, upon demand by the Secretary, surrenders such property or rights to property (or discharges such obligation) to the Secretary (or who pays a liability under subsection (d)(1)) shall be discharged from any obligation or liability to the delinquent taxpayer and any other person with respect to such property or rights to property arising from such surrender or payment. (f) Person definedThe term “person,” as used in subsection (a), includes an officer or employee of a corporation or a member or employee of a partnership, who as such officer, employee, or member is under a duty to surrender the property or rights to property, or to discharge the obligation.

26 U.S.C. § 6333 Production of books

If a levy has been made or is about to be made on any property, or right to property, any person having custody or control of any books or records, containing evidence or statements relating to the property or right to property subject to levy, shall, upon demand of the Secretary, exhibit such books or records to the Secretary.

26 U.S.C. § 6334 Property exempt from levy

(a) EnumerationThere shall be exempt from levy—(1) Wearing apparel and school booksSuch items of wearing apparel and such school books as are necessary for the taxpayer or for members of his family; (2) Fuel, provisions, furniture, and personal effectsSo much of the fuel, provisions, furniture, and personal effects in the taxpayer’s household, and of the arms for personal use, livestock, and poultry of the taxpayer, as does not exceed $6,250 in value; (3) Books and tools of a trade, business, or professionSo many of the books and tools necessary for the trade, business, or profession of the taxpayer as do not exceed in the aggregate $3,125 in value. (4) Unemployment benefitsAny amount payable to an individual with respect to his unemployment (including any portion thereof payable with respect to dependents) under an unemployment compensation law of the United States, of any State, or of the District of Columbia or of the Commonwealth of Puerto Rico. (5) Undelivered mailMail, addressed to any person, which has not been delivered to the addressee. (6) Certain annuity and pension paymentsAnnuity or pension payments under the Railroad Retirement Act, benefits under the Railroad Unemployment Insurance Act, special pension payments received by a person whose name has been entered on the Army, Navy, Air Force, and Coast Guard Medal of Honor roll (38 U.S.C. 1562), and annuities based on retired or retainer pay under chapter 73 of title 10 of the United States Code. (7) Workmen’s compensationAny amount payable to an individual as workmen’s compensation (including any portion thereof payable with respect to dependents) under a workmen’s compensation law of the United States, any State, the District of Columbia, or the Commonwealth of Puerto Rico. (8) Judgments for support of minor childrenIf the taxpayer is required by judgment of a court of competent jurisdiction, entered prior to the date of levy, to contribute to the support of his minor children, so much of his salary, wages, or other income as is necessary to comply with such judgment. (9) Minimum exemption for wages, salary, and other incomeAny amount payable to or received by an individual as wages or salary for personal services, or as income derived from other sources, during any period, to the extent that the total of such amounts payable to or received by him during such period does not exceed the applicable exempt amount determined under subsection (d). (10) Certain service-connected disability paymentsAny amount payable to an individual as a service-connected (within the meaning of section 101(16) of title 38, United States Code) disability benefit under—(A) subchapter II, III, IV, V, or VI of chapter 11 of such title 38, or (B) chapter 13, 21, 23, 31, 32, 34, 35, 37, or 39 of such title 38. (11) Certain public assistance paymentsAny amount payable to an individual as a recipient of public assistance under—(A) title IV or title XVI (relating to supplemental security income for the aged, blind, and disabled) of the Social Security Act, or (B) State or local government public assistance or public welfare programs for which eligibility is determined by a needs or income test. (12) Assistance under Job Training Partnership ActAny amount payable to a participant under the Job Training Partnership Act (29 U.S.C. 1501 et seq.) from funds appropriated pursuant to such Act. (13) Residences exempt in small deficiency cases and principal residences and certain business assets exempt in absence of certain approval or jeopardy(A) Residences in small deficiency casesIf the amount of the levy does not exceed $5,000—(i) any real property used as a residence by the taxpayer; or (ii) any real property of the taxpayer (other than real property which is rented) used by any other individual as a residence. (B) Principal residences and certain business assetsExcept to the extent provided in subsection (e)—(i) the principal residence of the taxpayer (within the meaning of section 121); and (ii) tangible personal property or real property (other than real property which is rented) used in the trade or business of an individual taxpayer. (b) AppraisalThe officer seizing property of the type described in subsection (a) shall appraise and set aside to the owner the amount of such property declared to be exempt. If the taxpayer objects at the time of the seizure to the valuation fixed by the officer making the seizure, the Secretary shall summon three disinterested individuals who shall make the valuation. (c) No other property exemptNotwithstanding any other law of the United States (including section 207 of the Social Security Act), no property or rights to property shall be exempt from levy other than the property specifically made exempt by subsection (a). (d) Exempt amount of wages, salary, or other income(1) Individuals on weekly basisIn the case of an individual who is paid or receives all of his wages, salary, and other income on a weekly basis, the amount of the wages, salary, and other income payable to or received by him during any week which is exempt from levy under subsection (a)(9) shall be the exempt amount. (2) Exempt amountFor purposes of paragraph (1), the term “exempt amount” means an amount equal to—(A) the sum of—(i) the standard deduction, and (ii) the aggregate amount of the deductions for personal exemptions allowed the taxpayer under section 151 in the taxable year in which such levy occurs, divided by (B) 52. Unless the taxpayer submits to the Secretary a written and properly verified statement specifying the facts necessary to determine the proper amount under subparagraph (A), subparagraph (A) shall be applied as if the taxpayer were a married individual filing a separate return with only 1 personal exemption. (3) Individuals on basis other than weeklyIn the case of any individual not described in paragraph (1), the amount of the wages, salary, and other income payable to or received by him during any applicable pay period or other fiscal period (as determined under regulations prescribed by the Secretary) which is exempt from levy under subsection (a)(9) shall be an amount (determined under such regulations) which as nearly as possible will result in the same total exemption from levy for such individual over a period of time as he would have under paragraph (1) if (during such period of time) he were paid or received such wages, salary, and other income on a regular weekly basis. (4) Years when personal exemption amount is zero(A) In generalIn the case of any taxable year in which the exemption amount under section 151(d) is zero, paragraph (2) shall not apply and for purposes of paragraph (1) the term “exempt amount” means an amount equal to—(i) the sum of the amount determined under subparagraph (B) and the standard deduction, divided by (ii) 52. (B) Amount determinedFor purposes of subparagraph (A), the amount determined under this subparagraph is $4,150 multiplied by the number of the taxpayer’s dependents for the taxable year in which the levy occurs. (C) Inflation adjustmentIn the case of any taxable year beginning in a calendar year after 2018, the $4,150 amount in subparagraph (B) shall be increased by an amount equal to—(i) such dollar amount, multiplied by (ii) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting “2017” for “2016” in subparagraph (A)(ii) thereof. If any increase determined under the preceding sentence is not a multiple of $100, such increase shall be rounded to the next lowest multiple of $100. (D) Verified statementUnless the taxpayer submits to the Secretary a written and properly verified statement specifying the facts necessary to determine the proper amount under subparagraph (A), subparagraph (A) shall be applied as if the taxpayer were a married individual filing a separate return with no dependents. (e) Levy allowed on principal residences and certain business assets in certain circumstances(1) Principal residences(A) Approval requiredA principal residence shall not be exempt from levy if a judge or magistrate of a district court of the United States approves (in writing) the levy of such residence. (B) JurisdictionThe district courts of the United States shall have exclusive jurisdiction to approve a levy under subparagraph (A). (2) Certain business assetsProperty (other than a principal residence) described in subsection (a)(13)(B) shall not be exempt from levy if—(A) a district director or assistant district director of the Internal Revenue Service personally approves (in writing) the levy of such property; or (B) the Secretary finds that the collection of tax is in jeopardy. An official may not approve a levy under subparagraph (A) unless the official determines that the taxpayer’s other assets subject to collection are insufficient to pay the amount due, together with expenses of the proceedings. (f) Levy allowed on certain specified paymentsAny payment described in subparagraph (B) or (C) of section 6331(h)(2) shall not be exempt from levy if the Secretary approves the levy thereon under section 6331(h). (g) Inflation adjustment(1) In generalIn the case of any calendar year beginning after 1999, each dollar amount referred to in paragraphs (2) and (3) of subsection (a) shall be increased by an amount equal to—(A) such dollar amount, multiplied by (B) the cost-of-living adjustment determined under section 1(f)(3) for such calendar year, by substituting “calendar year 1998” for “calendar year 2016” in subparagraph (A)(ii) thereof. (2) RoundingIf any dollar amount after being increased under paragraph (1) is not a multiple of $10, such dollar amount shall be rounded to the nearest multiple of $10.

26 U.S.C. § 6335 Sale of seized property

(a) Notice of seizureAs soon as practicable after seizure of property, notice in writing shall be given by the Secretary to the owner of the property (or, in the case of personal property, the possessor thereof), or shall be left at his usual place of abode or business if he has such within the internal revenue district where the seizure is made. If the owner cannot be readily located, or has no dwelling or place of business within such district, the notice may be mailed to his last known address. Such notice shall specify the sum demanded and shall contain, in the case of personal property, an account of the property seized and, in the case of real property, a description with reasonable certainty of the property seized. (b) Notice of saleThe Secretary shall as soon as practicable after the seizure of the property give notice to the owner, in the manner prescribed in subsection (a), and shall cause a notification to be published in some newspaper published or generally circulated within the county wherein such seizure is made, or if there be no newspaper published or generally circulated in such county, shall post such notice at the post office nearest the place where the seizure is made, and in not less than two other public places. Such notice shall specify the property to be sold, and the time, place, manner, and conditions of the sale thereof. Whenever levy is made without regard to the 10-day period provided in section 6331(a), public notice of sale of the property seized shall not be made within such 10-day period unless section 6336 (relating to sale of perishable goods) is applicable. (c) Sale of indivisible propertyIf any property liable to levy is not divisible, so as to enable the Secretary by sale of a part thereof to raise the whole amount of the tax and expenses, the whole of such property shall be sold. (d) Time and place of saleThe time of sale shall not be less than 10 days nor more than 40 days from the time of giving public notice under subsection (b). The place of sale shall be within the county in which the property is seized, except by special order of the Secretary. (e) Manner and conditions of sale(1) In general(A) Determinations relating to minimum priceBefore the sale of property seized by levy, the Secretary shall determine—(i) a minimum price below which such property shall not be sold (taking into account the expense of making the levy and conducting the sale), and (ii) whether, on the basis of criteria prescribed by the Secretary, the purchase of such property by the United States at such minimum price would be in the best interest of the United States. (B) Sale to highest bidder at or above minimum priceIf, at the sale, one or more persons offer to purchase such property for not less than the amount of the minimum price, the property shall be declared sold to the highest bidder. (C) Property deemed sold to United States at minimum price in certain casesIf no person offers the amount of the minimum price for such property at the sale and the Secretary has determined that the purchase of such property by the United States would be in the best interest of the United States, the property shall be declared to be sold to the United States at such minimum price. (D) Release to owner in other casesIf, at the sale, the property is not declared sold under subparagraph (B) or (C), the property shall be released to the owner thereof and the expense of the levy and sale shall be added to the amount of tax for the collection of which the levy was made. Any property released under this subparagraph shall remain subject to any lien imposed by subchapter C. (2) Additional rules applicable to saleThe Secretary shall by regulations prescribe the manner and other conditions of the sale of property seized by levy. If one or more alternative methods or conditions are permitted by regulations, the Secretary shall select the alternatives applicable to the sale. Such regulations shall provide:(A) That the sale shall not be conducted in any manner other than—(i) by public auction, or (ii) by public sale under sealed bids. (B) In the case of the seizure of several items of property, whether such items shall be offered separately, in groups, or in the aggregate; and whether such property shall be offered both separately (or in groups) and in the aggregate, and sold under whichever method produces the highest aggregate amount. (C) Whether the announcement of the minimum price determined by the Secretary may be delayed until the receipt of the highest bid. (D) Whether payment in full shall be required at the time of acceptance of a bid, or whether a part of such payment may be deferred for such period (not to exceed 1 month) as may be determined by the Secretary to be appropriate. (E) The extent to which methods (including advertising) in addition to those prescribed in subsection (b) may be used in giving notice of the sale. (F) Under what circumstances the Secretary may adjourn the sale from time to time (but such adjournments shall not be for a period to exceed in all 1 month). (3) Payment of amount bidIf payment in full is required at the time of acceptance of a bid and is not then and there paid, the Secretary shall forthwith proceed to again sell the property in the manner provided in this subsection. If the conditions of the sale permit part of the payment to be deferred, and if such part is not paid within the prescribed period, suit may be instituted against the purchaser for the purchase price or such part thereof as has not been paid, together with interest at the rate of 6 percent per annum from the date of the sale; or, in the discretion of the Secretary, the sale may be declared by the Secretary to be null and void for failure to make full payment of the purchase price and the property may again be advertised and sold as provided in subsections (b) and (c) and this subsection. In the event of such readvertisement and sale any new purchaser shall receive such property or rights to property, free and clear of any claim or right of the former defaulting purchaser, of any nature whatsoever, and the amount paid upon the bid price by such defaulting purchaser shall be forfeited. (4) Cross referenceFor provision providing for civil damages for violation of paragraph (1)(A)(i), see section 7433. (f) Right to request sale of seized property within 60 daysThe owner of any property seized by levy may request that the Secretary sell such property within 60 days after such request (or within such longer period as may be specified by the owner). The Secretary shall comply with such request unless the Secretary determines (and notifies the owner within such period) that such compliance would not be in the best interests of the United States. (g) Stay of sale of seized property pending Tax Court decisionFor restrictions on sale of seized property pending Tax Court decision, see section 6863(b)(3).

26 U.S.C. § 6336 Sale of perishable goods

If the Secretary determines that any property seized is liable to perish, he shall appraise the value of such property and— (1) Return to ownerIf the owner of the property can be readily found, the Secretary shall give him notice of such determination of the appraised value of the property. The property shall be returned to the owner if, within such time as may be specified in the notice, the owner—(A) Pays to the Secretary an amount equal to the appraised value, or (B) Gives bond in such form, with such sureties, and in such amount as the Secretary shall prescribe, to pay the appraised amount at such time as the Secretary determines to be appropriate in the circumstances. (2) Immediate saleIf the owner does not pay such amount or furnish such bond in accordance with this section, the Secretary shall as soon as practicable make public sale of the property in accordance with such regulations as may be prescribed by the Secretary.

26 U.S.C. § 6337 Redemption of property

(a) Before saleAny person whose property has been levied upon shall have the right to pay the amount due, together with the expenses of the proceeding, if any, to the Secretary at any time prior to the sale thereof, and upon such payment the Secretary shall restore such property to him, and all further proceedings in connection with the levy on such property shall cease from the time of such payment. (b) Redemption of real estate after sale(1) PeriodThe owners of any real property sold as provided in section 6335, their heirs, executors, or administrators, or any person having any interest therein, or a lien thereon, or any person in their behalf, shall be permitted to redeem the property sold, or any particular tract of such property, at any time within 180 days after the sale thereof. (2) PriceSuch property or tract of property shall be permitted to be redeemed upon payment to the purchaser, or in case he cannot be found in the county in which the property to be redeemed is situated, then to the Secretary, for the use of the purchaser, his heirs, or assigns, the amount paid by such purchaser and interest thereon at the rate of 20 percent per annum. (c) RecordWhen any lands sold are redeemed as provided in this section, the Secretary shall cause entry of the fact to be made upon the record mentioned in section 6340, and such entry shall be evidence of such redemption.

26 U.S.C. § 6338 Certificate of sale; deed of real property

(a) Certificate of saleIn the case of property sold as provided in section 6335, the Secretary shall give to the purchaser a certificate of sale upon payment in full of the purchase price. In the case of real property, such certificate shall set forth the real property purchased, for whose taxes the same was sold, the name of the purchaser, and the price paid therefor. (b) Deed to real propertyIn the case of any real property sold as provided in section 6335 and not redeemed in the manner and within the time provided in section 6337, the Secretary shall execute (in accordance with the laws of the State in which such real property is situated pertaining to sales of real property under execution) to the purchaser of such real property at such sale, upon his surrender of the certificate of sale, a deed of the real property so purchased by him, reciting the facts set forth in the certificate. (c) Real property purchased by United StatesIf real property is declared purchased by the United States at a sale pursuant to section 6335, the Secretary shall at the proper time execute a deed therefor; and without delay cause such deed to be duly recorded in the proper registry of deeds.

26 U.S.C. § 6339 Legal effect of certificate of sale of personal property and deed of real property

(a) Certificate of sale of property other than real propertyIn all cases of sale pursuant to section 6335 of property (other than real property), the certificate of such sale—(1) As evidenceShall be prima facie evidence of the right of the officer to make such sale, and conclusive evidence of the regularity of his proceedings in making the sale; and (2) As conveyancesShall transfer to the purchaser all right, title, and interest of the party delinquent in and to the property sold; and (3) As authority for transfer of corporate stockIf such property consists of stocks, shall be notice, when received, to any corporation, company, or association of such transfer, and shall be authority to such corporation, company, or association to record the transfer on its books and records in the same manner as if the stocks were transferred or assigned by the party holding the same, in lieu of any original or prior certificate, which shall be void, whether canceled or not; and (4) As receiptsIf the subject of sale is securities or other evidences of debt, shall be a good and valid receipt to the person holding the same, as against any person holding or claiming to hold possession of such securities or other evidences of debt; and (5) As authority for transfer of title to motor vehicleIf such property consists of a motor vehicle, shall be notice, when received, to any public official charged with the registration of title to motor vehicles, of such transfer and shall be authority to such official to record the transfer on his books and records in the same manner as if the certificate of title to such motor vehicle were transferred or assigned by the party holding the same, in lieu of any original or prior certificate, which shall be void, whether canceled or not. (b) Deed of real propertyIn the case of the sale of real property pursuant to section 6335—(1) Deed as evidenceThe deed of sale given pursuant to section 6338 shall be prima facie evidence of the facts therein stated; and (2) Deed as conveyance of titleIf the proceedings of the Secretary as set forth have been substantially in accordance with the provisions of law, such deed shall be considered and operate as a conveyance of all the right, title, and interest the party delinquent had in and to the real property thus sold at the time the lien of the United States attached thereto. (c) Effect of junior encumbrancesA certificate of sale of personal property given or a deed to real property executed pursuant to section 6338 shall discharge such property from all liens, encumbrances, and titles over which the lien of the United States with respect to which the levy was made had priority. (d) Cross references(1) For distribution of surplus proceeds, see section 6342(b). (2) For judicial procedure with respect to surplus proceeds, see section 7426(a)(2).

26 U.S.C. § 6340 Records of sale

(a) RequirementThe Secretary shall, for each internal revenue district, keep a record of all sales of property under section 6335 and of redemptions of such property. The record shall set forth the tax for which any such sale was made, the dates of seizure and sale, the name of the party assessed and all proceedings in making such sale, the amount of expenses, the names of the purchasers, and the date of the deed or certificate of sale of personal property. (b) Copy as evidenceA copy of such record, or any part thereof, certified by the Secretary shall be evidence in any court of the truth of the facts therein stated. (c) Accounting to taxpayerThe taxpayer with respect to whose liability the sale was conducted or who redeemed the property shall be furnished—(1) the record under subsection (a) (other than the names of the purchasers); (2) the amount from such sale applied to the taxpayer’s liability; and (3) the remaining balance of such liability.

26 U.S.C. § 6341 Expense of levy and sale

The Secretary shall determine the expenses to be allowed in all cases of levy and sale.

26 U.S.C. § 6342 Application of proceeds of levy

(a) Collection of liabilityAny money realized by proceedings under this subchapter (whether by seizure, by surrender under section 6332 (except pursuant to subsection (d)(2) thereof), or by sale of seized property) or by sale of property redeemed by the United States (if the interest of the United States in such property was a lien arising under the provisions of this title) shall be applied as follows:(1) Expense of levy and saleFirst, against the expenses of the proceedings; (2) Specific tax liability on seized propertyIf the property seized and sold is subject to a tax imposed by any internal revenue law which has not been paid, the amount remaining after applying paragraph (1) shall then be applied against such tax liability (and, if such tax was not previously assessed, it shall then be assessed); (3) Liability of delinquent taxpayerThe amount, if any, remaining after applying paragraphs (1) and (2) shall then be applied against the liability in respect of which the levy was made or the sale was conducted. (b) Surplus proceedsAny surplus proceeds remaining after the application of subsection (a) shall, upon application and satisfactory proof in support thereof, be credited or refunded by the Secretary to the person or persons legally entitled thereto.

26 U.S.C. § 6343 Authority to release levy and return property

(a) Release of levy and notice of release(1) In generalUnder regulations prescribed by the Secretary, the Secretary shall release the levy upon all, or part of, the property or rights to property levied upon and shall promptly notify the person upon whom such levy was made (if any) that such levy has been released if—(A) the liability for which such levy was made is satisfied or becomes unenforceable by reason of lapse of time, (B) release of such levy will facilitate the collection of such liability, (C) the taxpayer has entered into an agreement under section 6159 to satisfy such liability by means of installment payments, unless such agreement provides otherwise, (D) the Secretary has determined that such levy is creating an economic hardship due to the financial condition of the taxpayer, or (E) the fair market value of the property exceeds such liability and release of the levy on a part of such property could be made without hindering the collection of such liability. For purposes of subparagraph (C), the Secretary is not required to release such levy if such release would jeopardize the secured creditor status of the Secretary. (2) Expedited determination on certain business propertyIn the case of any tangible personal property essential in carrying on the trade or business of the taxpayer, the Secretary shall provide for an expedited determination under paragraph (1) if levy on such tangible personal property would prevent the taxpayer from carrying on such trade or business. (3) Subsequent levyThe release of levy on any property under paragraph (1) shall not prevent any subsequent levy on such property. (b) Return of propertyIf the Secretary determines that property has been wrongfully levied upon, it shall be lawful for the Secretary to return—(1) the specific property levied upon, (2) an amount of money equal to the amount of money levied upon, or (3) an amount of money equal to the amount of money received by the United States from a sale of such property. Property may be returned at any time. An amount equal to the amount of money levied upon or received from such sale may be returned at any time before the expiration of 2 years from the date of such levy. For purposes of paragraph (3), if property is declared purchased by the United States at a sale pursuant to section 6335(e) (relating to manner and conditions of sale), the United States shall be treated as having received an amount of money equal to the minimum price determined pursuant to such section or (if larger) the amount received by the United States from the resale of such property. (c) InterestInterest shall be allowed and paid at the overpayment rate established under section 6621—(1) in a case described in subsection (b)(2), from the date the Secretary receives the money to a date (to be determined by the Secretary) preceding the date of return by not more than 30 days, or (2) in a case described in subsection (b)(3), from the date of the sale of the property to a date (to be determined by the Secretary) preceding the date of return by not more than 30 days. (d) Return of property in certain casesIf—(1) any property has been levied upon, and (2) the Secretary determines that—(A) the levy on such property was premature or otherwise not in accordance with administrative procedures of the Secretary, (B) the taxpayer has entered into an agreement under section 6159 to satisfy the tax liability for which the levy was imposed by means of installment payments, unless such agreement provides otherwise, (C) the return of such property will facilitate the collection of the tax liability, or (D) with the consent of the taxpayer or the National Taxpayer Advocate, the return of such property would be in the best interests of the taxpayer (as determined by the National Taxpayer Advocate) and the United States, the provisions of subsection (b) shall apply in the same manner as if such property had been wrongly levied upon, except that no interest shall be allowed under subsection (c). (e) Release of levy upon agreement that amount is not collectibleIn the case of a levy on the salary or wages payable to or received by the taxpayer, upon agreement with the taxpayer that the tax is not collectible, the Secretary shall release such levy as soon as practicable. (f) Individuals held harmless on wrongful levy, etc.11 So in original. Probably should be followed by a comma. on retirement plan(1) In generalIf the Secretary determines that an individual’s account or benefit under an eligible retirement plan (as defined in section 402(c)(8)(B)) has been levied upon in a case to which subsection (b) or (d)(2)(A) applies and property or an amount of money is returned to the individual—(A) the individual may contribute such property or an amount equal to the sum of—(i) the amount of money so returned by the Secretary, and (ii) interest paid under subsection (c) on such amount of money, into such eligible retirement plan if such contribution is permitted by the plan, or into an individual retirement plan (other than an endowment contract) to which a rollover contribution of a distribution from such eligible retirement plan is permitted, but only if such contribution is made not later than the due date (not including extensions) for filing the return of tax for the taxable year in which such property or amount of money is returned, and (B) the Secretary shall, at the time such property or amount of money is returned, notify such individual that a contribution described in subparagraph (A) may be made. (2) Treatment as rolloverThe distribution on account of the levy and any contribution under paragraph (1) with respect to the return of such distribution shall be treated for purposes of this title as if such distribution and contribution were described in section 402(c), 402A(c)(3), 403(a)(4), 403(b)(8), 408(d)(3), 408A(d)(3), or 457(e)(16), whichever is applicable; except that—(A) the contribution shall be treated as having been made for the taxable year in which the distribution on account of the levy occurred, and the interest paid under subsection (c) shall be treated as earnings within the plan after the contribution and shall not be included in gross income, and (B) such contribution shall not be taken into account under section 408(d)(3)(B). (3) Refund, etc., of income tax on levy(A) In generalIf any amount is includible in gross income for a taxable year by reason of a distribution on account of a levy referred to in paragraph (1) and any portion of such amount is treated as a rollover contribution under paragraph (2), any tax imposed by chapter 1 on such portion shall not be assessed, and if assessed shall be abated, and if collected shall be credited or refunded as an overpayment made on the due date for filing the return of tax for such taxable year. (B) ExceptionSubparagraph (A) shall not apply to a rollover contribution under this subsection which is made from an eligible retirement plan which is not a Roth IRA or a designated Roth account (within the meaning of section 402A) to a Roth IRA or a designated Roth account under an eligible retirement plan. (4) InterestNotwithstanding subsection (d), interest shall be allowed under subsection (c) in a case in which the Secretary makes a determination described in subsection (d)(2)(A) with respect to a levy upon an individual retirement plan. (5) Treatment of inherited accountsFor purposes of paragraph (1)(A), section 408(d)(3)(C) shall be disregarded in determining whether an individual retirement plan is a plan to which a rollover contribution of a distribution from the plan levied upon is permitted.

26 U.S.C. § 6344 Cross references

(a) Length of periodFor period within which levy may be begun in case of—(1) Income, estate, and gift taxes, and taxes imposed by chapter 41, 42, 43, or 44, see sections 6502(a) and 6503(a)(1). (2) Employment and miscellaneous excise taxes, see section 6502(a). (b) Delinquent collection officersFor distraint proceedings against delinquent internal revenue officers, see section 7804(c). (c) Other referencesFor provisions relating to—(1) Stamps, marks and brands, see section 6807. (2) Administration of real estate acquired by the United States, see section 7506.

26 U.S.C. § 6330 Notice and opportunity for hearing before levy

(a) Requirement of notice before levy(1) In generalNo levy may be made on any property or right to property of any person unless the Secretary has notified such person in writing of their right to a hearing under this section before such levy is made. Such notice shall be required only once for the taxable period to which the unpaid tax specified in paragraph (3)(A) relates. (2) Time and method for noticeThe notice required under paragraph (1) shall be—(A) given in person; (B) left at the dwelling or usual place of business of such person; or (C) sent by certified or registered mail, return receipt requested, to such person’s last known address; not less than 30 days before the day of the first levy with respect to the amount of the unpaid tax for the taxable period. (3) Information included with noticeThe notice required under paragraph (1) shall include in simple and nontechnical terms—(A) the amount of unpaid tax; (B) the right of the person to request a hearing during the 30-day period under paragraph (2); and (C) the proposed action by the Secretary and the rights of the person with respect to such action, including a brief statement which sets forth—(i) the provisions of this title relating to levy and sale of property; (ii) the procedures applicable to the levy and sale of property under this title; (iii) the administrative appeals available to the taxpayer with respect to such levy and sale and the procedures relating to such appeals; (iv) the alternatives available to taxpayers which could prevent levy on property (including installment agreements under section 6159); and (v) the provisions of this title and procedures relating to redemption of property and release of liens on property. (b) Right to fair hearing(1) In generalIf the person requests a hearing in writing under subsection (a)(3)(B) and states the grounds for the requested hearing, such hearing shall be held by the Internal Revenue Service Independent Office of Appeals. (2) One hearing per periodA person shall be entitled to only one hearing under this section with respect to the taxable period to which the unpaid tax specified in subsection (a)(3)(A) relates. (3) Impartial officerThe hearing under this subsection shall be conducted by an officer or employee who has had no prior involvement with respect to the unpaid tax specified in subsection (a)(3)(A) before the first hearing under this section or section 6320. A taxpayer may waive the requirement of this paragraph. (c) Matters considered at hearingIn the case of any hearing conducted under this section—(1) Requirement of investigationThe appeals officer shall at the hearing obtain verification from the Secretary that the requirements of any applicable law or administrative procedure have been met. (2) Issues at hearing(A) In generalThe person may raise at the hearing any relevant issue relating to the unpaid tax or the proposed levy, including—(i) appropriate spousal defenses; (ii) challenges to the appropriateness of collection actions; and (iii) offers of collection alternatives, which may include the posting of a bond, the substitution of other assets, an installment agreement, or an offer-in-compromise. (B) Underlying liabilityThe person may also raise at the hearing challenges to the existence or amount of the underlying tax liability for any tax period if the person did not receive any statutory notice of deficiency for such tax liability or did not otherwise have an opportunity to dispute such tax liability. (3) Basis for the determinationThe determination by an appeals officer under this subsection shall take into consideration—(A) the verification presented under paragraph (1); (B) the issues raised under paragraph (2); and (C) whether any proposed collection action balances the need for the efficient collection of taxes with the legitimate concern of the person that any collection action be no more intrusive than necessary. (4) Certain issues precludedAn issue may not be raised at the hearing if—(A)(i) the issue was raised and considered at a previous hearing under section 6320 or in any other previous administrative or judicial proceeding; and (ii) the person seeking to raise the issue participated meaningfully in such hearing or proceeding; (B) the issue meets the requirement of clause (i) or (ii) of section 6702(b)(2)(A); or (C) a final determination has been made with respect to such issue in a proceeding brought under subchapter C of chapter 63. This paragraph shall not apply to any issue with respect to which subsection (d)(3)(B) applies. (d) Proceeding after hearing(1) Petition for review by Tax CourtThe person may, within 30 days of a determination under this section, petition the Tax Court for review of such determination (and the Tax Court shall have jurisdiction with respect to such matter). (2) Suspension of running of period for filing petition in title 11 casesIn the case of a person who is prohibited by reason of a case under title 11, United States Code, from filing a petition under paragraph (1) with respect to a determination under this section, the running of the period prescribed by such subsection for filing such a petition with respect to such determination shall be suspended for the period during which the person is so prohibited from filing such a petition, and for 30 days thereafter. (3) Jurisdiction retained at IRS Independent Office of AppealsThe Internal Revenue Service Independent Office of Appeals shall retain jurisdiction with respect to any determination made under this section, including subsequent hearings requested by the person who requested the original hearing on issues regarding—(A) collection actions taken or proposed with respect to such determination; and (B) after the person has exhausted all administrative remedies, a change in circumstances with respect to such person which affects such determination. (e) Suspension of collections and statute of limitations(1) In generalExcept as provided in paragraph (2), if a hearing is requested under subsection (a)(3)(B), the levy actions which are the subject of the requested hearing and the running of any period of limitations under section 6502 (relating to collection after assessment), section 6531 (relating to criminal prosecutions), or section 6532 (relating to other suits) shall be suspended for the period during which such hearing, and appeals therein, are pending. In no event shall any such period expire before the 90th day after the day on which there is a final determination in such hearing. Notwithstanding the provisions of section 7421(a), the beginning of a levy or proceeding during the time the suspension under this paragraph is in force may be enjoined by a proceeding in the proper court, including the Tax Court. The Tax Court shall have no jurisdiction under this paragraph to enjoin any action or proceeding unless a timely appeal has been filed under subsection (d)(1) and then only in respect of the unpaid tax or proposed levy to which the determination being appealed relates. (2) Levy upon appealParagraph (1) shall not apply to a levy action while an appeal is pending if the underlying tax liability is not at issue in the appeal and the court determines that the Secretary has shown good cause not to suspend the levy. (f) ExceptionsIf—(1) the Secretary has made a finding under the last sentence of section 6331(a) that the collection of tax is in jeopardy, (2) the Secretary has served a levy on a State to collect a Federal tax liability from a State tax refund, (3) the Secretary has served a disqualified employment tax levy, or (4) the Secretary has served a Federal contractor levy, this section shall not apply, except that the taxpayer shall be given the opportunity for the hearing described in this section within a reasonable period of time after the levy. (g) Frivolous requests for hearing, etc.Notwithstanding any other provision of this section, if the Secretary determines that any portion of a request for a hearing under this section or section 6320 meets the requirement of clause (i) or (ii) of section 6702(b)(2)(A), then the Secretary may treat such portion as if it were never submitted and such portion shall not be subject to any further administrative or judicial review. (h) Definitions related to exceptionsFor purposes of subsection (f)—(1) Disqualified employment tax levyA disqualified employment tax levy is any levy in connection with the collection of employment taxes for any taxable period if the person subject to the levy (or any predecessor thereof) requested a hearing under this section with respect to unpaid employment taxes arising in the most recent 2-year period before the beginning of the taxable period with respect to which the levy is served. For purposes of the preceding sentence, the term “employment taxes” means any taxes under chapter 21, 22, 23, or 24. (2) Federal contractor levyA Federal contractor levy is any levy if the person whose property is subject to the levy (or any predecessor thereof) is a Federal contractor.