US (United States) Code. Title 26. Subtitle F: Procedure and Administration. Chapter 64: Collection

Codificación normativa de EEUU (Estados Unidos) Legislación Federal estadounidense # Internal revenue code

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26 USC CHAPTER 64 - COLLECTION 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 64 - COLLECTION

-HEAD-

CHAPTER 64 - COLLECTION

-MISC1-

Subchapter Sec.(!1)

A. General provisions 6301

B. Receipt of payment 6311

C. Lien for taxes 6321

D. Seizure of property for collection of taxes 6331

[E. Repealed.]

AMENDMENTS

1990 - Pub. L. 101-508, title XI, Sec. 11801(b)(14), Nov. 5,

1990, 104 Stat. 1388-522, struck out item for subchapter E

"Collection of State individual income taxes".

1972 - Pub. L. 92-512, title II, Sec. 202(b), Oct. 20, 1972, 86

Stat. 944, added item for subchapter E.

-SECREF-

CHAPTER REFERRED TO IN OTHER SECTIONS

This chapter is referred to in sections 6867, 7410, 7801, 7804,

7811 of this title.

-FOOTNOTE-

(!1) Section numbers editorially supplied.

-End-

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26 USC Subchapter A - General Provisions 01/06/03

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TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 64 - COLLECTION

Subchapter A - General Provisions

-HEAD-

SUBCHAPTER A - GENERAL PROVISIONS

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Sec.

6301. Collection authority

6302. Mode or time of collection.

6303. Notice and demand for tax.

6304. Fair tax collection practices.

6305. Collection of certain liability.

AMENDMENTS

1998 - Pub. L. 105-206, title III, Sec. 3466(b), July 22, 1998,

112 Stat. 769, added item 6304.

1976 - Pub. L. 94-455, title XIX, Sec. 1906(b)(5), Oct. 4, 1976,

90 Stat. 1833, struck out item "6304. Collection under the Tariff

Act".

1975 - Pub. L. 93-647, Sec. 101(b)(2), Jan. 4, 1975, 88 Stat.

2358, added item 6305.

-End-

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26 USC Sec. 6301 01/06/03

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TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 64 - COLLECTION

Subchapter A - General Provisions

-HEAD-

Sec. 6301. Collection authority

-STATUTE-

The Secretary shall collect the taxes imposed by the internal

revenue laws.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 775; Pub. L. 94-455, title XIX,

Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.)

-MISC1-

AMENDMENTS

1976 - Pub. L. 94-455 struck out "or his delegate" after

"Secretary".

APPROVAL PROCESS FOR LIENS, LEVIES, AND SEIZURES

Pub. L. 105-206, title III, Sec. 3421, July 22, 1998, 112 Stat.

758, provided that:

"(a) In General. - The Commissioner of Internal Revenue shall

develop and implement procedures under which -

"(1) a determination by an employee to file a notice of lien or

levy with respect to, or to levy or seize, any property or right

to property would, where appropriate, be required to be reviewed

by a supervisor of the employee before the action was taken; and

"(2) appropriate disciplinary action would be taken against the

employee or supervisor where the procedures under paragraph (1)

were not followed.

"(b) Review Process. - The review process under subsection (a)(1)

may include a certification that the employee has -

"(1) reviewed the taxpayer's information;

"(2) verified that a balance is due; and

"(3) affirmed that the action proposed to be taken is

appropriate given the taxpayer's circumstances, considering the

amount due and the value of the property or right to property.

"(c) Effective Dates. -

"(1) In general. - Except as provided in paragraph (2), this

section shall take effect on the date of the enactment of this

Act [July 22, 1998].

"(2) Automated collection system actions. - In the case of any

action under an automated collection system, this section shall

apply to actions initiated after December 31, 2000."

-End-

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26 USC Sec. 6302 01/06/03

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TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 64 - COLLECTION

Subchapter A - General Provisions

-HEAD-

Sec. 6302. Mode or time of collection

-STATUTE-

(a) Establishment by regulations

If the mode or time for collecting any tax is not provided for by

this title, the Secretary may establish the same by regulations.

(b) Discretionary method

Whether or not the method of collecting any tax imposed by

chapter 21, 31, 32, or 33, or by section 4481 is specifically

provided for by this title, any such tax may, under regulations

prescribed by the Secretary, be collected by means of returns,

stamps, coupons, tickets, books, or such other reasonable devices

or methods as may be necessary or helpful in securing a complete

and proper collection of the tax.

(c) Use of Government depositaries

The Secretary may authorize Federal Reserve banks, and

incorporated banks, trust companies, domestic building and loan

associations, or credit unions which are depositaries or financial

agents of the United States, to receive any tax imposed under the

internal revenue laws, in such manner, at such times, and under

such conditions as he may prescribe; and he shall prescribe the

manner, times, and conditions under which the receipt of such tax

by such banks, trust companies, domestic building and loan

associations, and credit unions is to be treated as payment of such

tax to the Secretary.

(d) Time for payment of manufacturers' excise tax on sporting goods

The taxes imposed by subsections (a) and (b) of section 4161

(relating to taxes on sporting goods) shall be due and payable on

the date for filing the return for such taxes.

(e) Time for deposit of taxes on communications services and

airline tickets

(1) In general

Except as provided in paragraph (2), if, under regulations

prescribed by the Secretary, a person is required to make

deposits of any tax imposed by section 4251 or subsection (a) or

(b) of section 4261 with respect to amounts considered collected

by such person during any semimonthly period, such deposit shall

be made not later than the 3rd day (not including Saturdays,

Sundays, or legal holidays) after the close of the 1st week of

the 2nd semimonthly period following the period to which such

amounts relate.

(2) Special rule for tax due in September

(A) Amounts considered collected

In the case of a person required to make deposits of the tax

imposed by -

(i) section 4251, or

(ii) effective on January 1, 1997, section 4261 or 4271,

with respect to amounts considered collected by such person

during any semimonthly period, the amount of such tax included

in bills rendered or tickets sold during the period beginning

on September 1 and ending on September 11 shall be deposited

not later than September 29.

(B) Special rule where September 29 is on Saturday or Sunday

If September 29 falls on a Saturday or Sunday, the due date

under subparagraph (A) shall be -

(i) in the case of Saturday, the preceding day, and

(ii) in the case of Sunday, the following day.

(C) Taxpayers not required to use electronic funds transfer

In the case of deposits not required to be made by electronic

funds transfer, subparagraphs (A) and (B) shall be applied by

substituting "September 10" for "September 11" and "September

28" for "September 29".

(f) Time for deposit of certain excise taxes

(1) General rule

Except as otherwise provided in this subsection and subsection

(e), if any person is required under regulations to make deposits

of taxes under subtitle D with respect to semimonthly periods,

such person shall make deposits of such taxes for the period

beginning on September 16 and ending on September 26 not later

than September 29. In the case of taxes imposed by sections 4261

and 4271, this paragraph shall not apply to periods before

January 1, 1997.

(2) Taxes on ozone depleting chemicals

If any person is required under regulations to make deposits of

taxes under subchapter D of chapter 38 with respect to

semimonthly periods, in lieu of paragraph (1), such person shall

make deposits of such taxes for -

(A) the second semimonthly period in August, and

(B) the period beginning on September 1 and ending on

September 11,

not later than September 29.

(3) Taxpayers not required to use electronic funds transfer

In the case of deposits not required to be made by electronic

funds transfer, paragraphs (1) and (2) shall be applied by

substituting "September 25" for "September 26", "September 10"

for "September 11", and "September 28" for "September 29".

(4) Special rule where due date on Saturday or Sunday

If, but for this paragraph, the due date under paragraph (1),

(2), or (3) would fall on a Saturday or Sunday, such due date

shall be deemed to be -

(A) in the case of Saturday, the preceding day, and

(B) in the case of Sunday, the following day.

(g) Deposits of social security taxes and withheld income taxes

If, under regulations prescribed by the Secretary, a person is

required to make deposits of taxes imposed by chapters 21, 22, and

24 on the basis of eighth-month periods, such person shall make

deposits of such taxes on the 1st banking day after any day on

which such person has $100,000 or more of such taxes for deposit.

(h) Use of electronic fund transfer system for collection of

certain taxes

(1) Establishment of system

(A) In general

The Secretary shall prescribe such regulations as may be

necessary for the development and implementation of an

electronic fund transfer system which is required to be used

for the collection of depository taxes. Such system shall be

designed in such manner as may be necessary to ensure that such

taxes are credited to the general account of the Treasury on

the date on which such taxes would otherwise have been required

to be deposited under the Federal tax deposit system.

(B) Exemptions

The regulations prescribed under subparagraph (A) may contain

such exemptions as the Secretary may deem appropriate.

(2) Phase-in requirements

(A) In general

Except as provided in subparagraph (B), the regulations

referred to in paragraph (1) -

(i) shall contain appropriate procedures to assure that an

orderly conversion from the Federal tax deposit system to the

electronic fund transfer system is accomplished, and

(ii) may provide for a phase-in of such electronic fund

transfer system by classes of taxpayers based on the

aggregate undeposited taxes of such taxpayers at the close of

specified periods and any other factors the Secretary may

deem appropriate.

(B) Phase-in requirements

The phase-in of the electronic fund transfer system shall be

designed in such manner as may be necessary to ensure that -

(i) during each fiscal year beginning after September 30,

1993, at least the applicable required percentage of the

total depository taxes imposed by chapters 21, 22, and 24

shall be collected by means of electronic fund transfer, and

(ii) during each fiscal year beginning after September 30,

1993, at least the applicable required percentage of the

total other depository taxes shall be collected by means of

electronic fund transfer.

(C) Applicable required percentage

(i) In the case of the depository taxes imposed by chapters

21, 22, and 24, the applicable required percentage is -

(I) 3 percent for fiscal year 1994,

(II) 16.9 percent for fiscal year 1995,

(III) 20.1 percent for fiscal year 1996,

(IV) 58.3 percent for fiscal years 1997 and 1998, and

(V) 94 percent for fiscal year 1999 and all fiscal years

thereafter.

(ii) In the case of other depository taxes, the applicable

required percentage is -

(I) 3 percent for fiscal year 1994,

(II) 20 percent for fiscal year 1995,

(III) 30 percent for fiscal year 1996,

(IV) 60 percent for fiscal years 1997 and 1998, and

(V) 94 percent for fiscal year 1999 and all fiscal years

thereafter.

(3) Definitions

For purposes of this subsection -

(A) Depository tax

The term "depository tax" means any tax if the Secretary is

authorized to require deposits of such tax.

(B) Electronic fund transfer

The term "electronic fund transfer" means any transfer of

funds, other than a transaction originated by check, draft, or

similar paper instrument, which is initiated through an

electronic terminal, telephonic instrument, or computer or

magnetic tape so as to order, instruct, or authorize a

financial institution or other financial intermediary to debit

or credit an account.

(4) Coordination with other electronic fund transfer requirements

(A) Coordination with certain excise taxes

In determining whether the requirements of subparagraph (B)

of paragraph (2) are met, taxes required to be paid by

electronic fund transfer under sections 5061(e) and 5703(b)

shall be disregarded.

(B) Additional requirement

Under regulations, any tax required to be paid by electronic

fund transfer under section 5061(e) or 5703(b) shall be paid in

such a manner as to ensure that the requirements of the second

sentence of paragraph (1)(A) of this subsection are satisfied.

(i) Cross references

For treatment of earned income advance amounts as payment of

withholding and FICA taxes, see section 3507(d).

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 775; June 29, 1956, ch. 462,

title II, Sec. 206(b), 70 Stat. 391; Pub. L. 94-455, title XIX,

Sec. 1906(a)(17), (b)(13)(A), Oct. 4, 1976, 90 Stat. 1825, 1834;

Pub. L. 95-147, Sec. 3(a), Oct. 28, 1977, 91 Stat. 1228; Pub. L.

95-600, title I, Sec. 105(e), Nov. 6, 1978, 92 Stat. 2776; Pub. L.

96-223, title I, Sec. 101(c)(2), Apr. 2, 1980, 94 Stat. 250; Pub.

L. 98-369, div. A, title X, Sec. 1015(c), July 18, 1984, 98 Stat.

1018; Pub. L. 100-418, title I, Sec. 1941(b)(2)(G), Aug. 23, 1988,

102 Stat. 1323; Pub. L. 100-647, title VI, Sec. 6107(a), Nov. 10,

1988, 102 Stat. 3712; Pub. L. 101-239, title VII, Secs. 7502(a),

7507(a), 7632(a), Dec. 19, 1989, 103 Stat. 2362, 2369, 2379; Pub.

L. 101-508, title XI, Secs. 11217(b)(1), 11334(a), 11801(c)(22)(A),

Nov. 5, 1990, 104 Stat. 1388-437, 1388-470, 1388-528; Pub. L.

103-66, title XIII, Sec. 13242(d)(15), Aug. 10, 1993, 107 Stat.

524; Pub. L. 103-182, title V, Sec. 523(a), Dec. 8, 1993, 107 Stat.

2161; Pub. L. 103-465, title VII, Sec. 712(a), (d), Dec. 8, 1994,

108 Stat. 4999, 5001; Pub. L. 104-188, title I, Secs. 1702(c)(3),

1704(t)(52), Aug. 20, 1996, 110 Stat. 1869, 1890.)

-MISC1-

AMENDMENTS

1996 - Subsec. (b). Pub. L. 104-188, Sec. 1704(t)(52), provided

that section 11801(c)(22)(A) of Pub. L. 101-508 shall be applied as

if "chapters 21" appeared instead of "chapter 21" in the material

to be stricken. See 1990 Amendment note below.

Subsec. (g). Pub. L. 104-188, Sec. 1702(c)(3), inserted ", 22,"

after "chapters 21".

1994 - Subsec. (e). Pub. L. 103-465, Sec. 712(d), reenacted

heading without change and amended text generally. Prior to

amendment, text read as follows: "If, under regulations prescribed

by the Secretary, a person is required to make deposits of any tax

imposed by section 4251 or subsection (a) or (b) of section 4261

with respect to amounts considered collected by such person during

any semimonthly period, such deposit shall be made not later than

the 3rd day (not including Saturdays, Sundays, or legal holidays)

after the close of the 1st week of the 2nd semimonthly period

following the period to which such amounts relate."

Subsec. (f). Pub. L. 103-465, Sec. 712(a), substituted "certain

excise taxes" for "taxes on gasoline and diesel fuel" in heading

and amended text generally. Prior to amendment, text read as

follows:

"(1) General rule. - Notwithstanding section 518 of the Highway

Revenue Act of 1982, any person whose liability for tax under

section 4081 is payable with respect to semimonthly periods shall,

not later than September 27, make deposits of such tax for the

period beginning on September 16 and ending on September 22.

"(2) Special rule where due date falls on saturday, sunday, or

holiday. - If, but for this paragraph, the due date under paragraph

(1) would fall on a Saturday, Sunday, or holiday in the District of

Columbia, such due date shall be deemed to be the immediately

preceding day which is not a Saturday, Sunday, or such a holiday."

1993 - Subsec. (f). Pub. L. 103-66 inserted "and diesel fuel"

after "gasoline" in heading.

Subsecs. (h), (i). Pub. L. 103-182 added subsec. (h) and

redesignated former subsec. (h) as (i).

1990 - Subsec. (b). Pub. L. 101-508, Sec. 11801(c)(22)(A), which

directed the substitution of "chapter 21, 31, 32, or 33, or by

section 4481" for "chapter 21" and all that follows down through

"chapter 37,", was executed by making the substitution for

"chapters 21, 31, 32, 33, section 4481 of chapter 36, section

4501(a) of chapter 37" to reflect the probable intent of Congress.

See 1996 Amendment note above.

Subsec. (e). Pub. L. 101-508, Sec. 11217(b)(1), inserted

"communications services and" before "airline" in heading and

"section 4251 or" after "imposed by" in text.

Subsec. (g). Pub. L. 101-508, Sec. 11334(a), amended subsec. (g)

generally, striking out par. (1) designation and striking heading,

striking out ", for the years specified in paragraph (2)," after

"such person shall", substituting "on the 1st banking day" for "on

the applicable banking day", and striking out par. (2), which

provided that for purposes of par. (1) the applicable banking day

for 1990 is the 1st, for 1991 the 2nd, for 1992 the 3rd, for 1993

the 1st, and for 1994 the 1st.

1989 - Subsec. (e). Pub. L. 101-239, Sec. 7502(a), added subsec.

(e). Former subsec. (e) redesignated (f).

Subsec. (f). Pub. L. 101-239, Sec. 7507(a), added subsec. (f).

Former subsec. (f) redesignated (g).

Pub. L. 101-239, Sec. 7502(a), redesignated former subsec. (e) as

(f).

Subsec. (g). Pub. L. 101-239, Sec. 7632(a), added subsec. (g).

Former subsec. (g) redesignated (h).

Pub. L. 101-239, Sec. 7507(a), redesignated former subsec. (f) as

(g).

Subsec. (h). Pub. L. 101-239, Sec. 7632(a), redesignated former

subsec. (g) as (h).

1988 - Subsec. (d). Pub. L. 100-647 substituted "Time for payment

of manufacturers' excise tax on sporting goods" for "Time for

payment of manufacturers excise tax on sport fishing equipment" in

heading and amended text generally. Prior to amendment, subsec. (d)

read as follows: "The tax imposed by section 4161(a) (relating to

manufacturers excise tax on sport fishing equipment) shall be due

and payable on the date for filing the return for such tax."

Subsec. (e). Pub. L. 100-418 substituted "For" for "(1) For" and

struck out par. (2) which read as follows: "For depositary

requirements applicable to the windfall profit tax imposed by

section 4986, see section 4995(b)."

1984 - Subsecs. (d), (e). Pub. L. 98-369 added subsec. (d) and

redesignated former subsec. (d) as (e).

1980 - Subsec. (d). Pub. L. 96-223 designated existing cross

reference as par. (1), substituted "For treatment of earned income

advance amounts" for "For treatment of payment of earned income

advance amounts", and added par. (2).

1978 - Subsec. (d). Pub. L. 95-600 added subsec. (d).

1977 - Subsec. (c). Pub. L. 95-147 substituted ", trust

companies, domestic building and loan associations, or credit

unions" for "or trust companies" and ", trust companies, domestic

building and loan associations, and credit unions" for "and trust

companies".

1976 - Subsec. (a). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck

out "or his delegate" after "Secretary".

Subsec. (b). Pub. L. 94-455, Sec. 1906(a)(17), (b)(13)(A),

substituted "section 4501(a) of chapter 37" for "sections 4501(a)

or 4511 of chapter 37, or section 4701 or 4721 of chapter 39" and

struck out "or his delegate" after "Secretary".

Subsec. (c). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck out "or

his delegate" after "Secretary" wherever appearing.

1956 - Subsec. (b). Act June 29, 1956, inserted reference to

section 4481 of chapter 36.

EFFECTIVE DATE OF 1996 AMENDMENT

Amendment by section 1702(c)(3) of Pub. L. 104-188 effective,

except as otherwise expressly provided, as if included in the

provision of the Revenue Reconciliation Act of 1990, Pub. L.

101-508, title XI, to which such amendment relates, see section

1702(i) of Pub. L. 104-188, set out as a note under section 38 of

this title.

EFFECTIVE DATE OF 1994 AMENDMENT

Amendment by Pub. L. 103-465 effective Jan. 1, 1995, see section

712(e) of Pub. L. 103-465, set out as a note under section 5061 of

this title.

EFFECTIVE DATE OF 1993 AMENDMENTS

Section 523(b)(1) of Pub. L. 103-182 provided that: "The

amendments made by this section [amending this section] shall take

effect on the date the Agreement [North American Free Trade

Agreement] enters into force with respect to the United States

[Jan. 1, 1994]."

Amendment by Pub. L. 103-66 effective Jan. 1, 1994, see section

13242(e) of Pub. L. 103-66, set out as a note under section 4041 of

this title.

EFFECTIVE DATE OF 1990 AMENDMENT

Section 11217(b)(2) of Pub. L. 101-508 provided that: "The

amendment made by paragraph (1) [amending this section] shall apply

to payments of taxes considered collected during semimonthly

periods beginning after December 31, 1990."

Section 11334(c) of Pub. L. 101-508 provided that: "The

amendments made by this section [amending this section and

provisions set out below] shall apply to amounts required to be

deposited after December 31, 1990."

EFFECTIVE DATE OF 1989 AMENDMENT

Section 7502(b) of Pub. L. 101-239 provided that: "The amendment

made by subsection (a) [amending this section] shall apply to

payments of taxes considered collected for semimonthly periods

beginning after June 30, 1990."

Section 7507(b) of Pub. L. 101-239 provided that: "The amendment

made by subsection (a) [amending this section] shall apply to

payments of taxes for tax periods beginning after December 31,

1989."

Section 7632(b) of Pub. L. 101-239, as amended by Pub. L.

101-508, title XI, Sec. 11334(b), Nov. 5, 1990, 104 Stat. 1388-470,

provided that:

"(1) General rule. - Except as provided in paragraph (2), the

amendment made by subsection (a) [amending this section] shall

apply to amounts required to be deposited after July 31, 1990.

"[(2) Repealed. Pub. L. 101-508, title XI, Sec. 11334(b), Nov. 5,

1990, 104 Stat. 1388-470.]"

EFFECTIVE DATE OF 1988 AMENDMENTS

Section 6107(b) of Pub. L. 100-647 provided that: "The amendment

made by subsection (a) [amending this section] shall apply with

respect to articles sold by the manufacturer, producer, or importer

after December 31, 1988."

Amendment by Pub. L. 100-418 applicable to crude oil removed from

the premises on or after Aug. 23, 1988, see section 1941(c) of Pub.

L. 100-418, set out as a note under section 164 of this title.

EFFECTIVE DATE OF 1984 AMENDMENT

Amendment by Pub. L. 98-369 applicable with respect to articles

sold by manufacturer, producer, or importer after Sept. 30, 1984,

see section 1015(e) of Pub. L. 98-369, set out as an Effective Date

note under section 4162 of this title.

EFFECTIVE DATE OF 1980 AMENDMENT

Amendment by Pub. L. 96-223 applicable to periods after Feb. 29,

1980, see section 101(i) of Pub. L. 96-223, set out as a note under

section 6161 of this title.

EFFECTIVE DATE OF 1978 AMENDMENT

Amendment by Pub. L. 95-600 effective with respect to

remuneration paid after June 30, 1979, see section 105(g)(2) of

Pub. L. 95-600, set out as an Effective Date note under section

3507 of this title.

EFFECTIVE DATE OF 1977 AMENDMENT

Section 3(c) of Pub. L. 95-147 provided that: "The amendments

made by this section [amending this section and section 7502 of

this title] shall apply to amounts deposited after the date of the

enactment of this Act [Oct. 28, 1977]."

REGULATIONS

Section 523(b)(2) of Pub. L. 103-182 provided that: "Not later

than 210 days after the date of enactment of this Act [Dec. 8,

1993], the Secretary of the Treasury or his delegate shall

prescribe temporary regulations under section 6302(h) of the

Internal Revenue Code of 1986 (as added by this section)."

SAVINGS PROVISION

For provisions that nothing in amendment by section

11801(c)(22)(A) of Pub. L. 101-508 be construed to affect treatment

of certain transactions occurring, property acquired, or items of

income, loss, deduction, or credit taken into account prior to Nov.

5, 1990, for purposes of determining liability for tax for periods

ending after Nov. 5, 1990, see section 11821(b) of Pub. L. 101-508,

set out as a note under section 29 of this title.

DELAYED DEPOSITS OF HIGHWAY MOTOR FUEL TAX REVENUES

Pub. L. 105-34, title IX, Sec. 901(e), Aug. 5, 1997, 111 Stat.

872, provided that: "Notwithstanding section 6302 of the Internal

Revenue Code of 1986, in the case of deposits of taxes imposed by

sections 4041 and 4081 (other than subsection (a)(2)(A)(ii)) of the

Internal Revenue Code of 1986, the due date for any deposit which

would (but for this subsection) be required to be made after July

31, 1998, and before October 1, 1998, shall be October 5, 1998."

WAIVER OF PENALTY THROUGH JUNE 30, 1998, ON SMALL BUSINESSES

FAILING TO MAKE ELECTRONIC FUND TRANSFERS OF TAXES

Pub. L. 105-34, title IX, Sec. 931, Aug. 5, 1997, 111 Stat. 881,

provided that: "No penalty shall be imposed under the Internal

Revenue Code of 1986 solely by reason of a failure by a person to

use the electronic fund transfer system established under section

6302(h) of such Code if -

"(1) such person is a member of a class of taxpayers first

required to use such system on or after July 1, 1997, and

"(2) such failure occurs before July 1, 1998."

DELAYED DEPOSITS OF AIRPORT TRUST FUND TAX REVENUES

Pub. L. 105-34, title X, Sec. 1031(g), Aug. 5, 1997, 111 Stat.

933, provided that: "Notwithstanding section 6302 of the Internal

Revenue Code of 1986 -

"(1) in the case of deposits of taxes imposed by section 4261

of such Code, the due date for any such deposit which would (but

for this subsection) be required to be made after August 14,

1997, and before October 1, 1997, shall be October 10, 1997,

"(2) in the case of deposits of taxes imposed by section 4261

of such Code, the due date for any such deposit which would (but

for this subsection) be required to be made after August 14,

1998, and before October 1, 1998, shall be October 5, 1998, and

"(3) in the case of deposits of taxes imposed by sections

4081(a)(2)(A)(ii), 4091, and 4271 of such Code, the due date for

any such deposit which would (but for this subsection) be

required to be made after July 31, 1998, and before October 1,

1998, shall be October 5, 1998."

DELAY OF ELECTRONIC FUND TRANSFER REQUIREMENT

Section 1809 of Pub. L. 104-188 provided that: "Notwithstanding

any other provision of law, the increase in the applicable required

percentages for fiscal year 1997 in clauses (i)(IV) and (ii)(IV) of

section 6302(h)(2)(C) of the Internal Revenue Code of 1986 shall

not take effect before July 1, 1997."

DEPOSITARY SCHEDULES

Pub. L. 98-76, title II, Sec. 226, Aug. 12, 1983, 97 Stat. 426,

as amended by Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat.

2095, provided that: "Effective on and after January 1, 1984, the

times for making payments prescribed under section 6302 of the

Internal Revenue Code of 1986 [formerly I.R.C. 1954] with respect

to the taxes imposed by chapter 22 of such Code shall be the same

as the times prescribed under such section which apply to the taxes

imposed by chapters 21 and 24 of such Code."

Pub. L. 98-76, title II, Sec. 227(c), Aug. 12, 1983, 97 Stat.

426, provided that: "Section 226 [set out above] shall take effect

on January 1, 1984."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 6656, 6802, 7502, 7652 of

this title.

-End-

-CITE-

26 USC Sec. 6303 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 64 - COLLECTION

Subchapter A - General Provisions

-HEAD-

Sec. 6303. Notice and demand for tax

-STATUTE-

(a) General rule

Where it is not otherwise provided by this title, the Secretary

shall, as soon as practicable, and within 60 days, after the making

of an assessment of a tax pursuant to section 6203, give notice to

each person liable for the unpaid tax, stating the amount and

demanding payment thereof. Such notice shall be left at the

dwelling or usual place of business of such person, or shall be

sent by mail to such person's last known address.

(b) Assessment prior to last date for payment

Except where the Secretary believes collection would be

jeopardized by delay, if any tax is assessed prior to the last date

prescribed for payment of such tax, payment of such tax shall not

be demanded under subsection (a) until after such date.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 775; Pub. L. 94-455, title XIX,

Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.)

-MISC1-

AMENDMENTS

1976 - Pub. L. 94-455 struck out "or his delegate" after

"Secretary" wherever appearing.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 6305, 6656, 7522 of this

title.

-End-

-CITE-

26 USC Sec. 6304 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 64 - COLLECTION

Subchapter A - General Provisions

-HEAD-

Sec. 6304. Fair tax collection practices

-STATUTE-

(a) Communication with the taxpayer

Without the prior consent of the taxpayer given directly to the

Secretary or the express permission of a court of competent

jurisdiction, the Secretary may not communicate with a taxpayer in

connection with the collection of any unpaid tax -

(1) at any unusual time or place or a time or place known or

which should be known to be inconvenient to the taxpayer;

(2) if the Secretary knows the taxpayer is represented by any

person authorized to practice before the Internal Revenue Service

with respect to such unpaid tax and has knowledge of, or can

readily ascertain, such person's name and address, unless such

person fails to respond within a reasonable period of time to a

communication from the Secretary or unless such person consents

to direct communication with the taxpayer; or

(3) at the taxpayer's place of employment if the Secretary

knows or has reason to know that the taxpayer's employer

prohibits the taxpayer from receiving such communication.

In the absence of knowledge of circumstances to the contrary, the

Secretary shall assume that the convenient time for communicating

with a taxpayer is after 8 a.m. and before 9 p.m., local time at

the taxpayer's location.

(b) Prohibition of harassment and abuse

The Secretary may not engage in any conduct the natural

consequence of which is to harass, oppress, or abuse any person in

connection with the collection of any unpaid tax. Without limiting

the general application of the foregoing, the following conduct is

a violation of this subsection:

(1) The use or threat of use of violence or other criminal

means to harm the physical person, reputation, or property of any

person.

(2) The use of obscene or profane language or language the

natural consequence of which is to abuse the hearer or reader.

(3) Causing a telephone to ring or engaging any person in

telephone conversation repeatedly or continuously with intent to

annoy, abuse, or harass any person at the called number.

(4) Except as provided under rules similar to the rules in

section 804 of the Fair Debt Collection Practices Act (15 U.S.C.

1692b), the placement of telephone calls without meaningful

disclosure of the caller's identity.

(c) Civil action for violations of section

For civil action for violations of this section, see section

7433.

-SOURCE-

(Added Pub. L. 105-206, title III, Sec. 3466(a), July 22, 1998, 112

Stat. 768.)

-MISC1-

PRIOR PROVISIONS

A prior section 6304, act Aug. 16, 1954, ch. 736, 68A Stat. 776,

related to a cross reference to sections 4504 and 4601 for

collection under the Tariff Act of 1930, prior to repeal by Pub. L.

94-455, title XIX, Sec. 1906(a)(18), (d)(1), Oct. 4, 1976, 90 Stat.

1825, 1835, effective on first day of first month which begins more

than 90 days after Oct. 4, 1976.

EFFECTIVE DATE

Pub. L. 105-206, title III, Sec. 3466(c), July 22, 1998, 112

Stat. 769, provided that: "The amendments made by this section

[enacting this section] shall take effect on the date of the

enactment of this Act [July 22, 1998]."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 7803 of this title.

-End-

-CITE-

26 USC Sec. 6305 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 64 - COLLECTION

Subchapter A - General Provisions

-HEAD-

Sec. 6305. Collection of certain liability

-STATUTE-

(a) In general

Upon receiving a certification from the Secretary of Health and

Human Services, under section 452(b) of the Social Security Act

with respect to any individual, the Secretary shall assess and

collect the amount certified by the Secretary of Health and Human

Services, in the same manner, with the same powers, and (except as

provided in this section) subject to the same limitations as if

such amount were a tax imposed by subtitle C the collection of

which would be jeopardized by delay, except that -

(1) no interest or penalties shall be assessed or collected,

(2) for such purposes, paragraphs (4), (6), and (8) of section

6334(a) (relating to property exempt from levy) shall not apply,

(3) there shall be exempt from levy so much of the salary,

wages, or other income of an individual as is being withheld

therefrom in garnishment pursuant to a judgment entered by a

court of competent jurisdiction for the support of his minor

children,

(4) in the case of the first assessment against an individual

for delinquency under a court or administrative order against

such individual for a particular person or persons, the

collection shall be stayed for a period of 60 days immediately

following notice and demand as described in section 6303, and

(5) no additional fee may be assessed for adjustments to an

amount previously certified pursuant to such section 452(b) with

respect to the same obligor.

(b) Review of assessments and collections

No court of the United States, whether established under article

I or article III of the Constitution, shall have jurisdiction of

any action, whether legal or equitable, brought to restrain or

review the assessment and collection of amounts by the Secretary

under subsection (a), nor shall any such assessment and collection

be subject to review by the Secretary in any proceeding. This

subsection does not preclude any legal, equitable, or

administrative action against the State by an individual in any

State court or before any State agency to determine his liability

for any amount assessed against him and collected, or to recover

any such amount collected from him, under this section.

-SOURCE-

(Added Pub. L. 93-647, Sec. 101(b)(1), Jan. 4, 1975, 88 Stat. 2358;

amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4,

1976, 90 Stat. 1834; Pub. L. 97-35, title XXIII, Sec. 2332(g), Aug.

13, 1981, 95 Stat. 862; Pub. L. 104-193, title III, Sec. 361(a),

Aug. 22, 1996, 110 Stat. 2242.)

-REFTEXT-

REFERENCES IN TEXT

Section 452(b) of the Social Security Act, referred to in subsec.

(a), is classified to section 652(b) of Title 42, The Public Health

and Welfare.

-MISC1-

AMENDMENTS

1996 - Subsec. (a). Pub. L. 104-193, Sec. 361(a)(4), substituted

"Secretary of Health and Human Services" for "Secretary of Health,

Education, and Welfare" in two places in introductory provisions.

Subsec. (a)(5). Pub. L. 104-193, Sec. 361(a)(1)-(3), added par.

(5).

1981 - Subsec. (a)(4). Pub. L. 97-35 inserted reference to

administrative order.

1976 - Subsecs. (a), (b). Pub. L. 94-455 struck out "or his

delegate" after "Secretary" wherever appearing.

EFFECTIVE DATE OF 1996 AMENDMENT

Section 361(b) of Pub. L. 104-193 provided that: "The amendments

made by this section [amending this section] shall become effective

October 1, 1997."

For provisions relating to effective date of title III of Pub. L.

104-193, see section 395(a)-(c) of Pub. L. 104-193, set out as a

note under section 654 of Title 42, The Public Health and Welfare.

EFFECTIVE DATE OF 1981 AMENDMENT

Amendment by Pub. L. 97-35 effective, except as otherwise

specifically provided, on Oct. 1, 1981, see section 2336 of Pub. L.

97-35, set out as a note under section 651 of Title 42, The Public

Health and Welfare.

EFFECTIVE DATE

Section effective Aug. 1, 1975, see section 101(f) of Pub. L.

93-647, set out as a note under section 651 of Title 42, the Public

Health and Welfare.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in title 42 section 652.

-End-

-CITE-

26 USC Subchapter B - Receipt of Payment 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 64 - COLLECTION

Subchapter B - Receipt of Payment

-HEAD-

SUBCHAPTER B - RECEIPT OF PAYMENT

-MISC1-

Sec.

6311. Payment of tax by commercially acceptable means.

[6312. Repealed.]

6313. Fractional parts of a cent.

6314. Receipt for taxes.

6315. Payments of estimated income tax.

6316. Payment by foreign currency.

6317. Payments of Federal unemployment tax for calendar

quarter.

AMENDMENTS

1997 - Pub. L. 105-34, title XII, Sec. 1205(b), Aug. 5, 1997, 111

Stat. 998, substituted "Payment of tax by commercially acceptable

means" for "Payment by check or money order" in item 6311.

1971 - Pub. L. 92-5, title I, Sec. 4(a)(2), Mar. 17, 1971, 85

Stat. 5, struck out item 6312 "Payment by United States notes and

certificates of indebtedness".

1969 - Pub. L. 91-53, Sec. 2(f)(2), Aug. 7, 1969, 83 Stat. 93,

added item 6317.

REPEALS

Pub. L. 92-5, title I, Sec. 4(a)(2), Mar. 17, 1971, 85 Stat. 5,

which struck out item 6312, was repealed by Pub. L. 97-258, Sec.

5(b), Sept. 13, 1982, 96 Stat. 1068, 1081.

-End-

-CITE-

26 USC Sec. 6311 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 64 - COLLECTION

Subchapter B - Receipt of Payment

-HEAD-

Sec. 6311. Payment of tax by commercially acceptable means

-STATUTE-

(a) Authority to receive

It shall be lawful for the Secretary to receive for internal

revenue taxes (or in payment for internal revenue stamps) any

commercially acceptable means that the Secretary deems appropriate

to the extent and under the conditions provided in regulations

prescribed by the Secretary.

(b) Ultimate liability

If a check, money order, or other method of payment, including

payment by credit card, debit card, or charge card so received is

not duly paid, or is paid and subsequently charged back to the

Secretary, the person by whom such check, or money order, or other

method of payment has been tendered shall remain liable for the

payment of the tax or for the stamps, and for all legal penalties

and additions, to the same extent as if such check, money order, or

other method of payment had not been tendered.

(c) Liability of banks and others

If any certified, treasurer's, or cashier's check (or other

guaranteed draft), or any money order, or any other means of

payment that has been guaranteed by a financial institution (such

as a credit card, debit card, or charge card transaction which has

been guaranteed expressly by a financial institution) so received

is not duly paid, the United States shall, in addition to its right

to exact payment from the party originally indebted therefor, have

a lien for -

(1) the amount of such check (or draft) upon all assets of the

financial institution on which drawn,

(2) the amount of such money order upon all the assets of the

issuer thereof, or

(3) the guaranteed amount of any other transaction upon all the

assets of the institution making such guarantee,

and such amount shall be paid out of such assets in preference to

any other claims whatsoever against such financial institution,

issuer, or guaranteeing institution, except the necessary costs and

expenses of administration and the reimbursement of the United

States for the amount expended in the redemption of the circulating

notes of such financial institution.

(d) Payment by other means

(1) Authority to prescribe regulations

The Secretary shall prescribe such regulations as the Secretary

deems necessary to receive payment by commercially acceptable

means, including regulations that -

(A) specify which methods of payment by commercially

acceptable means will be acceptable,

(B) specify when payment by such means will be considered

received,

(C) identify types of nontax matters related to payment by

such means that are to be resolved by persons ultimately liable

for payment and financial intermediaries, without the

involvement of the Secretary, and

(D) ensure that tax matters will be resolved by the

Secretary, without the involvement of financial intermediaries.

(2) Authority to enter into contracts

Notwithstanding section 3718(f) of title 31, United States

Code, the Secretary is authorized to enter into contracts to

obtain services related to receiving payment by other means where

cost beneficial to the Government. The Secretary may not pay any

fee or provide any other consideration under any such contract

for the use of credit, debit, or charge cards for the payment of

taxes imposed by subtitle A.

(3) Special provisions for use of credit cards

If use of credit cards is accepted as a method of payment of

taxes pursuant to subsection (a) -

(A) a payment of internal revenue taxes (or a payment for

internal revenue stamps) by a person by use of a credit card

shall not be subject to section 161 of the Truth in Lending Act

(15 U.S.C. 1666), or to any similar provisions of State law, if

the error alleged by the person is an error relating to the

underlying tax liability, rather than an error relating to the

credit card account such as a computational error or numerical

transposition in the credit card transaction or an issue as to

whether the person authorized payment by use of the credit

card,

(B) a payment of internal revenue taxes (or a payment for

internal revenue stamps) shall not be subject to section 170 of

the Truth in Lending Act (15 U.S.C. 1666i), or to any similar

provisions of State law,

(C) a payment of internal revenue taxes (or a payment for

internal revenue stamps) by a person by use of a debit card

shall not be subject to section 908 of the Electronic Fund

Transfer Act (15 U.S.C. 1693f), or to any similar provisions of

State law, if the error alleged by the person is an error

relating to the underlying tax liability, rather than an error

relating to the debit card account such as a computational

error or numerical transposition in the debit card transaction

or an issue as to whether the person authorized payment by use

of the debit card,

(D) the term "creditor" under section 103(f) of the Truth in

Lending Act (15 U.S.C. 1602(f)) shall not include the Secretary

with respect to credit card transactions in payment of internal

revenue taxes (or payment for internal revenue stamps), and

(E) notwithstanding any other provision of law to the

contrary, in the case of payment made by credit card or debit

card transaction of an amount owed to a person as the result of

the correction of an error under section 161 of the Truth in

Lending Act (15 U.S.C. 1666) or section 908 of the Electronic

Fund Transfer Act (15 U.S.C. 1693f), the Secretary is

authorized to provide such amount to such person as a credit to

that person's credit card or debit card account through the

applicable credit card or debit card system.

(e) Confidentiality of information

(1) In general

Except as otherwise authorized by this subsection, no person

may use or disclose any information relating to credit or debit

card transactions obtained pursuant to section 6103(k)(9) other

than for purposes directly related to the processing of such

transactions, or the billing or collection of amounts charged or

debited pursuant thereto.

(2) Exceptions

(A) Debit or credit card issuers or others acting on behalf of

such issuers may also use and disclose such information for

purposes directly related to servicing an issuer's accounts.

(B) Debit or credit card issuers or others directly involved in

the processing of credit or debit card transactions or the

billing or collection of amounts charged or debited thereto may

also use and disclose such information for purposes directly

related to -

(i) statistical risk and profitability assessment;

(ii) transferring receivables, accounts, or interest therein;

(iii) auditing the account information;

(iv) complying with Federal, State, or local law; and

(v) properly authorized civil, criminal, or regulatory

investigation by Federal, State, or local authorities.

(3) Procedures

Use and disclosure of information under this paragraph shall be

made only to the extent authorized by written procedures

promulgated by the Secretary.

(4) Cross reference

For provision providing for civil damages for violation of

paragraph (1), see section 7431.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 777; Pub. L. 94-455, title XIX,

Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 98-369,

div. A, title IV, Sec. 448(a), July 18, 1984, 98 Stat. 817; Pub. L.

105-34, title XII, Sec. 1205(a), Aug. 5, 1997, 111 Stat. 995; Pub.

L. 105-206, title VI, Sec. 6012(b)(1), July 22, 1998, 112 Stat.

819; Pub. L. 105-277, div. J, title IV, Sec. 4003(k), Oct. 21,

1998, 112 Stat. 2681-910.)

-MISC1-

AMENDMENTS

1998 - Subsec. (d)(2). Pub. L. 105-277 substituted "under any

such contract for the use of credit, debit, or charge cards for the

payment of taxes imposed by subtitle A" for "under such contracts".

Subsec. (e)(1). Pub. L. 105-206 substituted "section 6103(k)(9)"

for "section 6103(k)(8)".

1997 - Pub. L. 105-34 amended section catchline and text

generally, substituting provisions relating to payment of tax by

commercially acceptable means for provisions consisting of subsecs.

(a) and (b) relating to payment by check or money order and

liability if a check or money order received is not duly paid.

1984 - Subsec. (b)(2). Pub. L. 98-369 substituted "or cashier's

check (or other guaranteed draft)" for "or cashier's check", "the

amount of such check (or draft)" for "the amount of such check",

and "the financial institution" for "the bank or trust company",

and substituted "such financial institution" for "such bank" in two

places.

1976 - Subsec. (a). Pub. L. 94-455 struck out "or his delegate"

after "Secretary" wherever appearing.

EFFECTIVE DATE OF 1998 AMENDMENTS

Amendment by Pub. L. 105-277 effective as if included in the

provision of the Taxpayer Relief Act of 1997, Pub. L. 105-34, to

which such amendment relates, see section 4003(l) of Pub. L.

105-277, set out as a note under section 86 of this title.

Amendment by Pub. L. 105-206 effective, except as otherwise

provided, as if included in the provisions of the Taxpayer Relief

Act of 1997, Pub. L. 105-34, to which such amendment relates, see

section 6024 of Pub. L. 105-206, set out as a note under section 1

of this title.

EFFECTIVE DATE OF 1997 AMENDMENT

Amendment by Pub. L. 105-34 effective on the day 9 months after

Aug. 5, 1997, see section 1205(d) of Pub. L. 105-34, set out as a

note under section 6103 of this title.

EFFECTIVE DATE OF 1984 AMENDMENT

Section 448(b) of Pub. L. 98-369 provided that: "The amendments

made by subsection (a) [amending this section] shall take effect on

the date of the enactment of this Act [July 18, 1984]."

REGULATIONS

Pub. L. 105-206, title III, Sec. 3703, July 22, 1998, 112 Stat.

777, provided that: "The Secretary of the Treasury or the

Secretary's delegate shall establish such rules, regulations, and

procedures as are necessary to allow payment of taxes by check or

money order made payable to the United States Treasury."

REQUIRED NOTICE OF CERTAIN PAYMENTS

Pub. L. 104-168, title XII, Sec. 1202, July 30, 1996, 110 Stat.

1470, provided that: "If any payment is received by the Secretary

of the Treasury or his delegate from any taxpayer and the Secretary

cannot associate such payment with such taxpayer, the Secretary

shall make reasonable efforts to notify the taxpayer of such

inability within 60 days after the receipt of such payment."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 6103, 6201, 7431 of this

title.

-End-

-CITE-

26 USC [Sec. 6312 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 64 - COLLECTION

Subchapter B - Receipt of Payment

-HEAD-

[Sec. 6312. Repealed. Pub. L. 92-5, title I, Sec. 4(a)(2), Mar. 17,

1971, 85 Stat. 5]

-MISC1-

Section, act Aug. 16, 1954, ch. 736, 68A Stat. 777, permitted the

Secretary to receive Treasury bills, notes and certificates of

indebtedness issued by the United States in payment of any internal

revenue taxes or stamps.

EFFECTIVE DATE OF REPEAL

Section 4(a) of Pub. L. 92-5 provided that the repeal of this

section is effective with respect to obligations issued after Mar.

3, 1971.

REPEALS

Pub. L. 92-5, title I, Sec. 4(a)(2), Mar. 17, 1971, 85 Stat. 5,

which repealed this section and provided for the effective date of

that repeal, was itself repealed by Pub. L. 97-258, Sec. 5(b),

Sept. 13, 1982, 96 Stat. 1068, 1081.

-End-

-CITE-

26 USC Sec. 6313 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 64 - COLLECTION

Subchapter B - Receipt of Payment

-HEAD-

Sec. 6313. Fractional parts of a cent

-STATUTE-

In the payment of any tax imposed by this title, a fractional

part of a cent shall be disregarded unless it amounts to one-half

cent or more, in which case it shall be increased to 1 cent.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 778; Pub. L. 94-455, title XIX,

Sec. 1906(a)(19), Oct. 4, 1976, 90 Stat. 1825.)

-MISC1-

AMENDMENTS

1976 - Pub. L. 94-455 struck out "not payable by stamp" after

"title".

-End-

-CITE-

26 USC Sec. 6314 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 64 - COLLECTION

Subchapter B - Receipt of Payment

-HEAD-

Sec. 6314. Receipt for taxes

-STATUTE-

(a) General rule

The Secretary shall, upon request, give receipts for all sums

collected by him, excepting only when the same are in payment for

stamps sold and delivered; but no receipt shall be issued in lieu

of a stamp representing a tax.

(b) Duplicate receipts for payment of estate taxes

The Secretary shall, upon request, give to the person paying the

tax under chapter 11 (relating to the estate tax) duplicate

receipts, either of which shall be sufficient evidence of such

payment, and shall entitle the executor to be credited and allowed

the amount thereof by any court having jurisdiction to audit or

settle his accounts.

(c) Cross references

(1) For receipt required to be furnished by employer to

employee with respect to employment taxes, see section 6051.

(2) For receipt of discharge of fiduciary from personal

liability, see section 2204.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 778; Pub. L. 91-614, title I,

Sec. 101(d)(2), Dec. 31, 1970, 84 Stat. 1837; Pub. L. 94-455, title

XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.)

-MISC1-

AMENDMENTS

1976 - Pub. L. 94-455 struck out "or his delegate" after

"Secretary" wherever appearing.

1970 - Subsec. (c)(2). Pub. L. 91-614 substituted "fiduciary" for

"executor".

EFFECTIVE DATE OF 1970 AMENDMENT

Amendment by Pub. L. 91-614 applicable with respect to decedents

dying after Dec. 31, 1970, see section 101(j) of Pub. L. 91-614,

set out as a note under section 2032 of this title.

-End-

-CITE-

26 USC Sec. 6315 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 64 - COLLECTION

Subchapter B - Receipt of Payment

-HEAD-

Sec. 6315. Payments of estimated income tax

-STATUTE-

Payment of the estimated income tax, or any installment thereof,

shall be considered payment on account of the income taxes imposed

by subtitle A for the taxable year.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 778.)

-End-

-CITE-

26 USC Sec. 6316 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 64 - COLLECTION

Subchapter B - Receipt of Payment

-HEAD-

Sec. 6316. Payment by foreign currency

-STATUTE-

The Secretary is authorized in his discretion to allow payment of

taxes in the currency of a foreign country under such circumstances

and subject to such conditions as the Secretary may by regulations

prescribe.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 778; Pub. L. 94-455, title XIX,

Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.)

-MISC1-

AMENDMENTS

1976 - Pub. L. 94-455 struck out "or his delegate" after

"Secretary" in two places.

-End-

-CITE-

26 USC Sec. 6317 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 64 - COLLECTION

Subchapter B - Receipt of Payment

-HEAD-

Sec. 6317. Payments of Federal unemployment tax for calendar

quarter

-STATUTE-

Payment of Federal unemployment tax for a calendar quarter or

other period within a calendar year pursuant to section 6157 shall

be considered payment on account of the tax imposed by chapter 23

of such calendar year.

-SOURCE-

(Added Pub. L. 91-53, Sec. 2(c), Aug. 7, 1969, 83 Stat. 92; amended

Pub. L. 98-76, title II, Sec. 231(b)(2)(B), Aug. 12, 1983, 97 Stat.

429; Pub. L. 100-647, title VII, Sec. 7106(c)(3), Nov. 10, 1988,

102 Stat. 3773.)

-MISC1-

AMENDMENTS

1988 - Pub. L. 100-647 struck out "or tax imposed by section

3321" after "unemployment tax" and "and 23A, as the case may be,"

after "chapter 23".

1983 - Pub. L. 98-76 inserted "or tax imposed by section 3321"

after "Federal unemployment tax", and substituted "chapter 23 and

23A, as the case may be," for "chapter 23".

EFFECTIVE DATE OF 1988 AMENDMENT

Amendment by Pub. L. 100-647 applicable to remuneration paid

after Dec. 31, 1988, see section 7106(d) of Pub. L. 100-647, set

out as a note under section 3321 of this title.

EFFECTIVE DATE OF 1983 AMENDMENT

Amendment by Pub. L. 98-76 applicable to remuneration paid after

June 30, 1986, see section 231(d) of Pub. L. 98-76, set out as an

Effective Date note under section 3321 of this title.

EFFECTIVE DATE

Section applicable with respect to calendar years beginning after

Dec. 31, 1969, see section 4(a) of Pub. L. 91-53, set out as a note

under section 6157 of this title.

-End-

-CITE-

26 USC Subchapter C - Lien for Taxes 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 64 - COLLECTION

Subchapter C - Lien for Taxes

-HEAD-

SUBCHAPTER C - LIEN FOR TAXES

-MISC1-

Part

I. Due process for liens.

II. Liens.

AMENDMENTS

1998 - Pub. L. 105-206, title III, Sec. 3401(a), July 22, 1998,

112 Stat. 746, added part analysis.

-SECREF-

SUBCHAPTER REFERRED TO IN OTHER SECTIONS

This subchapter is referred to in sections 2035, 6335 of this

title.

-End-

-CITE-

26 USC PART I - DUE PROCESS FOR LIENS 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 64 - COLLECTION

Subchapter C - Lien for Taxes

PART I - DUE PROCESS FOR LIENS

-HEAD-

PART I - DUE PROCESS FOR LIENS

-MISC1-

Sec.

6320. Notice and opportunity for hearing upon filing of

notice of lien.

AMENDMENTS

1998 - Pub. L. 105-206, title III, Sec. 3401(a), July 22, 1998,

112 Stat. 746, added part heading and analysis consisting of item

6320.

-End-

-CITE-

26 USC Sec. 6320 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 64 - COLLECTION

Subchapter C - Lien for Taxes

PART I - DUE PROCESS FOR LIENS

-HEAD-

Sec. 6320. Notice and opportunity for hearing upon filing of notice

of lien

-STATUTE-

(a) Requirement of notice

(1) In general

The Secretary shall notify in writing the person described in

section 6321 of the filing of a notice of lien under section

6323.

(2) Time and method for notice

The 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 person's

last known address,

not more than 5 business days after the day of the filing of the

notice of lien.

(3) Information included with notice

The 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 beginning on the day after the 5-day period

described in paragraph (2);

(C) the administrative appeals available to the taxpayer with

respect to such lien and the procedures relating to such

appeals; and

(D) the provisions of this title and procedures relating to

the release of liens on property.

(b) Right to fair hearing

(1) In general

If the person requests a hearing under subsection (a)(3)(B),

such hearing shall be held by the Internal Revenue Service Office

of Appeals.

(2) One hearing per period

A 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 officer

The 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 6330. A taxpayer may

waive the requirement of this paragraph.

(4) Coordination with section 6330

To the extent practicable, a hearing under this section shall

be held in conjunction with a hearing under section 6330.

(c) Conduct of hearing; review; suspensions

For purposes of this section, subsections (c), (d) (other than

paragraph (2)(B) thereof), and (e) of section 6330 shall apply.

-SOURCE-

(Added Pub. L. 105-206, title III, Sec. 3401(a), July 22, 1998, 112

Stat. 746.)

-MISC1-

EFFECTIVE DATE

Pub. L. 105-206, title III, Sec. 3401(d), July 22, 1998, 112

Stat. 750, provided that: "The amendments made by this section

[enacting this section and section 6330 of this title and amending

section 7443A of this title] shall apply to collection actions

initiated after the date which is 180 days after the date of the

enactment of this Act [July 22, 1998]."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 6330, 7443A, 7803 of this

title.

-End-

-CITE-

26 USC PART II - LIENS 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 64 - COLLECTION

Subchapter C - Lien for Taxes

PART II - LIENS

-HEAD-

PART II - LIENS

-MISC1-

Sec.

6321. Lien for taxes.

6322. Period of lien.

6323. Validity and priority against certain persons.

6324. Special liens for estate and gift taxes.

6324A. Special lien for estate tax deferred under section

6166.

6324B. Special lien for additional estate tax attributable to

farm, etc., valuation.

6325. Release of lien or discharge of property.

6326. Administrative appeal of liens.

6327. Cross references.

AMENDMENTS

1998 - Pub. L. 105-206, title III, Sec. 3401(a), July 22, 1998,

112 Stat. 747, added part heading.

1988 - Pub. L. 100-647, title VI, Sec. 6238(c), Nov. 10, 1988,

102 Stat. 3743, added item 6326 and redesignated former item 6326

as 6327.

1981 - Pub. L. 97-34, title IV, Sec. 422(e)(6)(D), Aug. 13, 1981,

95 Stat. 316, struck out "or 6166A" after "section 6166" in item

6324A.

1976 - Pub. L. 94-455, title XX, Secs. 2003(d)(2), 2004(f)(1),

Oct. 4, 1976, 90 Stat. 1862, 1871, added items 6324A and 6324B.

1966 - Pub. L. 89-719, title I, Secs. 101(b)(1), 103(b), Nov. 2,

1966, 80 Stat. 1131, 1135, substituted "Validity and priority

against certain persons" for "Validity against mortgagees,

pledgees, purchasers, and judgment creditors" in item 6323, and

struck out "partial" before "discharge" in item 6325.

-End-

-CITE-

26 USC Sec. 6321 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 64 - COLLECTION

Subchapter C - Lien for Taxes

PART II - LIENS

-HEAD-

Sec. 6321. Lien for taxes

-STATUTE-

If any person liable to pay any tax neglects or refuses to pay

the same after demand, the amount (including any interest,

additional amount, addition to tax, or assessable penalty, together

with any costs that may accrue in addition thereto) shall be a lien

in favor of the United States upon all property and rights to

property, whether real or personal, belonging to such person.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 779.)

-MISC1-

SHORT TITLE

Pub. L. 89-719, Sec. 1(a), Nov. 2, 1966, 80 Stat. 1125, provided

that: "This Act [enacting sections 3505, 7425, 7426, and 7810 of

this title, amending sections 545, 6322 to 6325, 6331, 6332, 6334,

6335, 6337 to 6339, 6342, 6343, 6502, 6503, 6532, 7402, 7403, 7421,

7424, 7505, 7506, and 7809 of this title, sections 1346, 1402, and

2410 of Title 28, Judiciary and Judicial Procedure, and section

270a of former Title 40, Public Buildings, Property, and Works,

redesignating section 7425 as 7427 of this title, and enacting

provisions set out as notes under sections 6323 and 7424 of this

title, and under section 1346 of Title 28] may be cited as the

'Federal Tax Lien Act of 1966'."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 6320, 6322, 6323, 6325 of

this title; title 29 section 1368; title 30 section 934.

-End-

-CITE-

26 USC Sec. 6322 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 64 - COLLECTION

Subchapter C - Lien for Taxes

PART II - LIENS

-HEAD-

Sec. 6322. Period of lien

-STATUTE-

Unless another date is specifically fixed by law, the lien

imposed by section 6321 shall arise at the time the assessment is

made and shall continue until the liability for the amount so

assessed (or a judgment against the taxpayer arising out of such

liability) is satisfied or becomes unenforceable by reason of lapse

of time.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 779; Pub. L. 89-719, title I,

Sec. 113(a), Nov. 2, 1966, 80 Stat. 1146.)

-MISC1-

AMENDMENTS

1966 - Pub. L. 89-719 inserted "(or a judgment against the

taxpayer arising out of such liability)".

EFFECTIVE DATE OF 1966 AMENDMENT

Amendment by Pub. L. 89-719 applicable after Nov. 2, 1966,

regardless of when title or lien of United States arose or when

lien or interest of another person was acquired, with certain

exceptions, see section 114(a)-(c) of Pub. L. 89-719, set out as a

note under section 6323 of this title.

-End-

-CITE-

26 USC Sec. 6323 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 64 - COLLECTION

Subchapter C - Lien for Taxes

PART II - LIENS

-HEAD-

Sec. 6323. Validity and priority against certain persons

-STATUTE-

(a) Purchasers, holders of security interests, mechanic's lienors,

and judgment lien creditors

The lien imposed by section 6321 shall not be valid as against

any purchaser, holder of a security interest, mechanic's lienor, or

judgment lien creditor until notice thereof which meets the

requirements of subsection (f) has been filed by the Secretary.

(b) Protection for certain interests even though notice filed

Even though notice of a lien imposed by section 6321 has been

filed, such lien shall not be valid -

(1) Securities

With respect to a security (as defined in subsection (h)(4)) -

(A) as against a purchaser of such security who at the time

of purchase did not have actual notice or knowledge of the

existence of such lien; and

(B) as against a holder of a security interest in such

security who, at the time such interest came into existence,

did not have actual notice or knowledge of the existence of

such lien.

(2) Motor vehicles

With respect to a motor vehicle (as defined in subsection

(h)(3)), as against a purchaser of such motor vehicle, if -

(A) at the time of the purchase such purchaser did not have

actual notice or knowledge of the existence of such lien, and

(B) before the purchaser obtains such notice or knowledge, he

has acquired possession of such motor vehicle and has not

thereafter relinquished possession of such motor vehicle to the

seller or his agent.

(3) Personal property purchased at retail

With respect to tangible personal property purchased at retail,

as against a purchaser in the ordinary course of the seller's

trade or business, unless at the time of such purchase such

purchaser intends such purchase to (or knows such purchase will)

hinder, evade, or defeat the collection of any tax under this

title.

(4) Personal property purchased in casual sale

With respect to household goods, personal effects, or other

tangible personal property described in section 6334(a) purchased

(not for resale) in a casual sale for less than $1,000, as

against the purchaser, but only if such purchaser does not have

actual notice or knowledge (A) of the existence of such lien, or

(B) that this sale is one of a series of sales.

(5) Personal property subject to possessory lien

With respect to tangible personal property subject to a lien

under local law securing the reasonable price of the repair or

improvement of such property, as against a holder of such a lien,

if such holder is, and has been, continuously in possession of

such property from the time such lien arose.

(6) Real property tax and special assessment liens

With respect to real property, as against a holder of a lien

upon such property, if such lien is entitled under local law to

priority over security interests in such property which are prior

in time, and such lien secures payment of -

(A) a tax of general application levied by any taxing

authority based upon the value of such property;

(B) a special assessment imposed directly upon such property

by any taxing authority, if such assessment is imposed for the

purpose of defraying the cost of any public improvement; or

(C) charges for utilities or public services furnished to

such property by the United States, a State or political

subdivision thereof, or an instrumentality of any one or more

of the foregoing.

(7) Residential property subject to a mechanic's lien for certain

repairs and improvements

With respect to real property subject to a lien for repair or

improvement of a personal residence (containing not more than

four dwelling units) occupied by the owner of such residence, as

against a mechanic's lienor, but only if the contract price on

the contract with the owner is not more than $5,000.

(8) Attorneys' liens

With respect to a judgment or other amount in settlement of a

claim or of a cause of action, as against an attorney who, under

local law, holds a lien upon or a contract enforcible against

such judgment or amount, to the extent of his reasonable

compensation for obtaining such judgment or procuring such

settlement, except that this paragraph shall not apply to any

judgment or amount in settlement of a claim or of a cause of

action against the United States to the extent that the United

States offsets such judgment or amount against any liability of

the taxpayer to the United States.

(9) Certain insurance contracts

With respect to a life insurance, endowment, or annuity

contract, as against the organization which is the insurer under

such contract, at any time -

(A) before such organization had actual notice or knowledge

of the existence of such lien;

(B) after such organization had such notice or knowledge,

with respect to advances required to be made automatically to

maintain such contract in force under an agreement entered into

before such organization had such notice or knowledge; or

(C) after satisfaction of a levy pursuant to section 6332(b),

unless and until the Secretary delivers to such organization a

notice, executed after the date of such satisfaction, of the

existence of such lien.

(10) Deposit-secured loans

With respect to a savings deposit, share, or other account with

an institution described in section 581 or 591, to the extent of

any loan made by such institution without actual notice or

knowledge of the existence of such lien, as against such

institution, if such loan is secured by such account.

(c) Protection for certain commercial transactions financing

agreements, etc.

(1) In general

To the extent provided in this subsection, even though notice

of a lien imposed by section 6321 has been filed, such lien shall

not be valid with respect to a security interest which came into

existence after tax lien filing but which -

(A) is in qualified property covered by the terms of a

written agreement entered into before tax lien filing and

constituting -

(i) a commercial transactions financing agreement,

(ii) a real property construction or improvement financing

agreement, or

(iii) an obligatory disbursement agreement, and

(B) is protected under local law against a judgment lien

arising, as of the time of tax lien filing, out of an unsecured

obligation.

(2) Commercial transactions financing agreement

For purposes of this subsection -

(A) Definition

The term "commercial transactions financing agreement" means

an agreement (entered into by a person in the course of his

trade or business) -

(i) to make loans to the taxpayer to be secured by

commercial financing security acquired by the taxpayer in the

ordinary course of his trade or business, or

(ii) to purchase commercial financing security (other than

inventory) acquired by the taxpayer in the ordinary course of

his trade or business;

but such an agreement shall be treated as coming within the

term only to the extent that such loan or purchase is made

before the 46th day after the date of tax lien filing or (if

earlier) before the lender or purchaser had actual notice or

knowledge of such tax lien filing.

(B) Limitation on qualified property

The term "qualified property", when used with respect to a

commercial transactions financing agreement, includes only

commercial financing security acquired by the taxpayer before

the 46th day after the date of tax lien filing.

(C) Commercial financing security defined

The term "commercial financing security" means (i) paper of a

kind ordinarily arising in commercial transactions, (ii)

accounts receivable, (iii) mortgages on real property, and (iv)

inventory.

(D) Purchaser treated as acquiring security interest

A person who satisfies subparagraph (A) by reason of clause

(ii) thereof shall be treated as having acquired a security

interest in commercial financing security

(3) Real property construction or improvement financing agreement

For purposes of this subsection -

(A) Definition

The term "real property construction or improvement financing

agreement" means an agreement to make cash disbursements to

finance -

(i) the construction or improvement of real property,

(ii) a contract to construct or improve real property, or

(iii) the raising or harvesting of a farm crop or the

raising of livestock or other animals.

For purposes of clause (iii), the furnishing of goods and

services shall be treated as the disbursement of cash.

(B) Limitation on qualified property

The term "qualified property", when used with respect to a

real property construction or improvement financing agreement,

includes only -

(i) in the case of subparagraph (A)(i), the real property

with respect to which the construction or improvement has

been or is to be made,

(ii) in the case of subparagraph (A)(ii), the proceeds of

the contract described therein, and

(iii) in the case of subparagraph (A)(iii), property

subject to the lien imposed by section 6321 at the time of

tax lien filing and the crop or the livestock or other

animals referred to in subparagraph (A)(iii).

(4) Obligatory disbursement agreement

For purposes of this subsection -

(A) Definition

The term "obligatory disbursement agreement" means an

agreement (entered into by a person in the course of his trade

or business) to make disbursements, but such an agreement shall

be treated as coming within the term only to the extent of

disbursements which are required to be made by reason of the

intervention of the rights of a person other than the taxpayer.

(B) Limitation on qualified property

The term "qualified property", when used with respect to an

obligatory disbursement agreement, means property subject to

the lien imposed by section 6321 at the time of tax lien filing

and (to the extent that the acquisition is directly traceable

to the disbursements referred to in subparagraph (A)) property

acquired by the taxpayer after tax lien filing.

(C) Special rules for surety agreements

Where the obligatory disbursement agreement is an agreement

ensuring the performance of a contract between the taxpayer and

another person -

(i) the term "qualified property" shall be treated as also

including the proceeds of the contract the performance of

which was ensured, and

(ii) if the contract the performance of which was ensured

was a contract to construct or improve real property, to

produce goods, or to furnish services, the term "qualified

property" shall be treated as also including any tangible

personal property used by the taxpayer in the performance of

such ensured contract.

(d) 45-day period for making disbursements

Even though notice of a lien imposed by section 6321 has been

filed, such lien shall not be valid with respect to a security

interest which came into existence after tax lien filing by reason

of disbursements made before the 46th day after the date of tax

lien filing, or (if earlier) before the person making such

disbursements had actual notice or knowledge of tax lien filing,

but only if such security interest -

(1) is in property (A) subject, at the time of tax lien filing,

to the lien imposed by section 6321, and (B) covered by the terms

of a written agreement entered into before tax lien filing, and

(2) is protected under local law against a judgment lien

arising, as of the time of tax lien filing, out of an unsecured

obligation.

(e) Priority of interest and expenses

If the lien imposed by section 6321 is not valid as against a

lien or security interest, the priority of such lien or security

interest shall extend to -

(1) any interest or carrying charges upon the obligation

secured,

(2) the reasonable charges and expenses of an indenture trustee

or agent holding the security interest for the benefit of the

holder of the security interest,

(3) the reasonable expenses, including reasonable compensation

for attorneys, actually incurred in collecting or enforcing the

obligation secured,

(4) the reasonable costs of insuring, preserving, or repairing

the property to which the lien or security interest relates,

(5) the reasonable costs of insuring payment of the obligation

secured, and

(6) amounts paid to satisfy any lien on the property to which

the lien or security interest relates, but only if the lien so

satisfied is entitled to priority over the lien imposed by

section 6321,

to the extent that, under local law, any such item has the same

priority as the lien or security interest to which it relates.

(f) Place for filing notice; form

(1) Place for filing

The notice referred to in subsection (a) shall be filed -

(A) Under State laws

(i) Real property

In the case of real property, in one office within the

State (or the county, or other governmental subdivision), as

designated by the laws of such State, in which the property

subject to the lien is situated; and

(ii) Personal property

In the case of personal property, whether tangible or

intangible, in one office within the State (or the county, or

other governmental subdivision), as designated by the laws of

such State, in which the property subject to the lien is

situated, except that State law merely conforming to or

reenacting Federal law establishing a national filing system

does not constitute a second office for filing as designated

by the laws of such State; or

(B) With clerk of district court

In the office of the clerk of the United States district

court for the judicial district in which the property subject

to the lien is situated, whenever the State has not by law

designated one office which meets the requirements of

subparagraph (A); or

(C) With Recorder of Deeds of the District of Columbia

In the office of the Recorder of Deeds of the District of

Columbia, if the property subject to the lien is situated in

the District of Columbia.

(2) Situs of property subject to lien

For purposes of paragraphs (1) and (4), property shall be

deemed to be situated -

(A) Real property

In the case of real property, at its physical location; or

(B) Personal property

In the case of personal property, whether tangible or

intangible, at the residence of the taxpayer at the time the

notice of lien is filed.

For purposes of paragraph (2)(B), the residence of a corporation

or partnership shall be deemed to be the place at which the

principal executive office of the business is located, and the

residence of a taxpayer whose residence is without the United

States shall be deemed to be in the District of Columbia.

(3) Form

The form and content of the notice referred to in subsection

(a) shall be prescribed by the Secretary. Such notice shall be

valid notwithstanding any other provision of law regarding the

form or content of a notice of lien.

(4) Indexing required with respect to certain real property

In the case of real property, if -

(A) under the laws of the State in which the real property is

located, a deed is not valid as against a purchaser of the

property who (at the time of purchase) does not have actual

notice or knowledge of the existence of such deed unless the

fact of filing of such deed has been entered and recorded in a

public index at the place of filing in such a manner that a

reasonable inspection of the index will reveal the existence of

the deed, and

(B) there is maintained (at the applicable office under

paragraph (1)) an adequate system for the public indexing of

Federal tax liens,

then the notice of lien referred to in subsection (a) shall not

be treated as meeting the filing requirements under paragraph (1)

unless the fact of filing is entered and recorded in the index

referred to in subparagraph (B) in such a manner that a

reasonable inspection of the index will reveal the existence of

the lien.

(5) National filing systems

The filing of a notice of lien shall be governed solely by this

title and shall not be subject to any other Federal law

establishing a place or places for the filing of liens or

encumbrances under a national filing system.

(g) Refiling of notice

For purposes of this section -

(1) General rule

Unless notice of lien is refiled in the manner prescribed in

paragraph (2) during the required refiling period, such notice of

lien shall be treated as filed on the date on which it is filed

(in accordance with subsection (f)) after the expiration of such

refiling period.

(2) Place for filing

A notice of lien refiled during the required refiling period

shall be effective only -

(A) if -

(i) such notice of lien is refiled in the office in which

the prior notice of lien was filed, and

(ii) in the case of real property, the fact of refiling is

entered and recorded in an index to the extent required by

subsection (f)(4); and

(B) in any case in which, 90 days or more prior to the date

of a refiling of notice of lien under subparagraph (A), the

Secretary received written information (in the manner

prescribed in regulations issued by the Secretary) concerning a

change in the taxpayer's residence, if a notice of such lien is

also filed in accordance with subsection (f) in the State in

which such residence is located.

(3) Required refiling period

In the case of any notice of lien, the term "required refiling

period" means -

(A) the one-year period ending 30 days after the expiration

of 10 years after the date of the assessment of the tax, and

(B) the one-year period ending with the expiration of 10

years after the close of the preceding required refiling period

for such notice of lien.

(4) Transitional rule

Notwithstanding paragraph (3), if the assessment of the tax was

made before January 1, 1962, the first required refiling period

shall be the calendar year 1967.

(h) Definitions

For purposes of this section and section 6324 -

(1) Security interest

The term "security interest" means any interest in property

acquired by contract for the purpose of securing payment or

performance of an obligation or indemnifying against loss or

liability. A security interest exists at any time (A) if, at such

time, the property is in existence and the interest has become

protected under local law against a subsequent judgment lien

arising out of an unsecured obligation, and (B) to the extent

that, at such time, the holder has parted with money or money's

worth.

(2) Mechanic's lienor

The term "mechanic's lienor" means any person who under local

law has a lien on real property (or on the proceeds of a contract

relating to real property) for services, labor, or materials

furnished in connection with the construction or improvement of

such property. For purposes of the preceding sentence, a person

has a lien on the earliest date such lien becomes valid under

local law against subsequent purchasers without actual notice,

but not before he begins to furnish the services, labor, or

materials.

(3) Motor vehicle

The term "motor vehicle" means a self-propelled vehicle which

is registered for highway use under the laws of any State or

foreign country.

(4) Security

The term "security" means any bond, debenture, note, or

certificate or other evidence of indebtedness, issued by a

corporation or a government or political subdivision thereof,

with interest coupons or in registered form, share of stock,

voting trust certificate, or any certificate of interest or

participation in, certificate of deposit or receipt for,

temporary or interim certificate for, or warrant or right to

subscribe to or purchase, any of the foregoing; negotiable

instrument; or money.

(5) Tax lien filing

The term "tax lien filing" means the filing of notice (referred

to in subsection (a)) of the lien imposed by section 6321.

(6) Purchaser

The term "purchaser" means a person who, for adequate and full

consideration in money or money's worth, acquires an interest

(other than a lien or security interest) in property which is

valid under local law against subsequent purchasers without

actual notice. In applying the preceding sentence for purposes of

subsection (a) of this section, and for purposes of section 6324

-

(A) a lease of property,

(B) a written executory contract to purchase or lease

property,

(C) an option to purchase or lease property or any interest

therein, or

(D) an option to renew or extend a lease of property,

which is not a lien or security interest shall be treated as an

interest in property.

(i) Special rules

(1) Actual notice or knowledge

For purposes of this subchapter, an organization shall be

deemed for purposes of a particular transaction to have actual

notice or knowledge of any fact from the time such fact is

brought to the attention of the individual conducting such

transaction, and in any event from the time such fact would have

been brought to such individual's attention if the organization

had exercised due diligence. An organization exercises due

diligence if it maintains reasonable routines for communicating

significant information to the person conducting the transaction

and there is reasonable compliance with the routine. Due

diligence does not require an individual acting for the

organization to communicate information unless such communication

is part of his regular duties or unless he has reason to know of

the transaction and that the transaction would be materially

affected by the information.

(2) Subrogation

Where, under local law, one person is subrogated to the rights

of another with respect to a lien or interest, such person shall

be subrogated to such rights for purposes of any lien imposed by

section 6321 or 6324.

(3) Forfeitures

For purposes of this subchapter, a forfeiture under local law

of property seized by a law enforcement agency of a State,

county, or other local governmental subdivision shall relate back

to the time of seizure, except that this paragraph shall not

apply to the extent that under local law the holder of an

intervening claim or interest would have priority over the

interest of the State, county, or other local governmental

subdivision in the property.

(4) Cost-of-living adjustment

In the case of notices of liens imposed by section 6321 which

are filed in any calendar year after 1998, each of the dollar

amounts under paragraph (4) or (7) of subsection (b) 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 the calendar year, determined by substituting

"calendar year 1996" for "calendar year 1992" in subparagraph

(B) thereof.

If any amount as adjusted under the preceding sentence is not a

multiple of $10, such amount shall be rounded to the nearest

multiple of $10.

(j) Withdrawal of notice in certain circumstances

(1) In general

The Secretary may withdraw a notice of a lien filed under this

section and this chapter shall be applied as if the withdrawn

notice had not been filed, if the Secretary determines that -

(A) the filing of such notice 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 lien was

imposed by means of installment payments, unless such agreement

provides otherwise,

(C) the withdrawal of such notice will facilitate the

collection of the tax liability, or

(D) with the consent of the taxpayer or the National Taxpayer

Advocate, the withdrawal of such notice would be in the best

interests of the taxpayer (as determined by the National

Taxpayer Advocate) and the United States.

Any such withdrawal shall be made by filing notice at the same

office as the withdrawn notice. A copy of such notice of

withdrawal shall be provided to the taxpayer.

(2) Notice to credit agencies, etc.

Upon written request by the taxpayer with respect to whom a

notice of a lien was withdrawn under paragraph (1), the Secretary

shall promptly make reasonable efforts to notify credit reporting

agencies, and any financial institution or creditor whose name

and address is specified in such request, of the withdrawal of

such notice. Any such request shall be in such form as the

Secretary may prescribe.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 779; Pub. L. 88-272, title II,

Sec. 236(a), (c)(1), Feb. 26, 1964, 78 Stat. 127, 128; Pub. L.

89-493, Sec. 17(a), July 5, 1966, 80 Stat. 266; Pub. L. 89-719,

title I, Sec. 101(a), Nov. 2, 1966, 80 Stat. 1125; Pub. L. 94-455,

title XII, Sec. 1202(h)(2), title XIX, Sec. 1906(b)(13)(A), title

XX, Sec. 2008(c), Oct. 4, 1976, 90 Stat. 1688, 1834, 1892; Pub. L.

95-600, title VII, Sec. 702(q)(1), (2), Nov. 6, 1978, 92 Stat.

2937, 2938; Pub. L. 99-514, title XV, Sec. 1569(a), Oct. 22, 1986,

100 Stat. 2764; Pub. L. 100-647, title I, Sec. 1015(s)(1), Nov. 10,

1988, 102 Stat. 3573; Pub. L. 101-508, title XI, Secs. 11317(b),

11704(a)(26), Nov. 5, 1990, 104 Stat. 1388-458, 1388-519; Pub. L.

104-168, title V, Sec. 501(a), July 30, 1996, 110 Stat. 1460; Pub.

L. 105-206, title I, Sec. 1102(d)(1)(A), title III, Sec. 3435(a),

(b), July 22, 1998, 112 Stat. 704, 760, 761.)

-STATAMEND-

ADJUSTMENT OF APPLICABLE DOLLAR AMOUNTS IN DETERMINING VALIDITY OF

FEDERAL TAX LIENS FOR CALENDAR YEAR 2003

For adjustment of applicable dollar amounts under subsection

(b)(4), (7) of this section in determining validity of certain

Federal tax liens for calendar year 2003, see section 3.29 of

Revenue Procedure 2002-70, set out as a note under section 1 of

this title.

-MISC1-

AMENDMENTS

1998 - Subsec. (b)(4). Pub. L. 105-206, Sec. 3435(a)(1)(A),

substituted "$1,000" for "$250".

Subsec. (b)(7). Pub. L. 105-206, Sec. 3435(a)(1)(B), substituted

"$5,000" for "$1,000".

Subsec. (b)(10). Pub. L. 105-206, Sec. 3435(b), in heading

substituted "Deposit-secured loans" for "Passbook loans", and in

text struck out ", evidenced by a passbook," after "other account"

and substituted period at end for "and if such institution has been

continuously in possession of such passbook from the time the loan

is made."

Subsec. (i)(4). Pub. L. 105-206, Sec. 3435(a)(2), added par. (4).

Subsec. (j)(1)(D). Pub. L. 105-206, Sec. 1102(d)(1)(A),

substituted "National Taxpayer Advocate" for "Taxpayer Advocate" in

two places.

1996 - Subsec. (j). Pub. L. 104-168 added subsec. (j).

1990 - Subsec. (a). Pub. L. 101-508, Sec. 11704(a)(26),

substituted "Purchasers" for "Purchases" in heading.

Subsec. (g)(3). Pub. L. 101-508, Sec. 11317(b), substituted "10

years" for "6 years" wherever appearing.

1988 - Subsec. (f)(1)(A)(ii). Pub. L. 100-647, Sec.

1015(s)(1)(A), inserted exception that State law merely conforming

to or reenacting Federal law establishing a national filing system

does not constitute a second office for filing as designated by the

laws of such State.

Subsec. (f)(5). Pub. L. 100-647, Sec. 1015(s)(1)(B), added par.

(5).

1986 - Subsec. (i)(3). Pub. L. 99-514 added par. (3).

1978 - Subsec. (f)(4). Pub. L. 95-600, Sec. 702(q)(1), in heading

substituted "Indexing required with respect to certain real

property" for "Index" and in text inserted provisions relating to

the validity of a deed, under the laws of the State in which the

real property is located, as against a purchaser who does not have

actual notice or knowledge of the existence of such deed and

provisions relating to the maintenance of an adequate system for

the public indexing of Federal tax liens.

Subsec. (g)(2)(A). Pub. L. 95-600, Sec. 702(q)(2), inserted

reference to real property.

1976 - Subsecs. (a), (b). Pub. L. 94-455, Sec. 1906(b)(13)(A),

struck out "or his delegate" after "Secretary" wherever appearing.

Subsec. (f)(2). Pub. L. 94-455, Sec. 2008(c)(1)(B), inserted

introductory reference to par. (4).

Subsec. (f)(3). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck out

"or his delegate" after "Secretary".

Subsec. (f)(4). Pub. L. 94-455, Sec. 2008(c)(1)(A), added par.

(4).

Subsec. (g)(2)(A), (B). Pub. L. 94-455, Secs. 1906(b)(13)(A),

2008(c)(2), required the fact of refiling be entered and recorded

in an index in accordance with subsec. (f)(4), and struck out "or

his delegate" after "Secretary" wherever appearing.

Subsec. (i)(3). Pub. L. 94-455, Sec. 1202(h)(2), struck out par.

(3) which related to a special rule respecting disclosure of amount

of outstanding lien.

1966 - Subsec. (a). Pub. L. 89-719 redesignated as subsec. (a)

that part of former subsec. (a) which preceded pars. (1) to (3)

thereof, and, in subsec. (a) as so redesignated, substituted holder

of a security interest, mechanic's lienor, and judgment lien

creditor for mortgagee, pledgee, and judgment creditor, struck out

reference to an exception provided in subsecs. (c) and (d), and

inserted reference to requirements of subsec. (f).

Subsec. (a)(3). Pub. L. 89-493 substituted the Recorder of Deeds

of the District of Columbia for the clerk of the United States

District Court for the District of Columbia.

Subsec. (b)(1). Pub. L. 89-719 redesignated provisions of subsec.

(c)(1) as subsec. (b)(1) and substituted "holder of a security

interest" for "mortgagee and pledgee" and purchaser of such

security interest for purchaser of such security for any adequate

and full consideration in money or money's worth.

Subsec. (b)(2). Pub. L. 89-719 redesignated provisions of subsec.

(d)(1) as subsec. (b)(2) and substituted purchaser of such motor

vehicle for purchaser of such motor vehicle for an adequate and

full consideration in money or money's worth and substituted actual

notice or knowledge for notice or knowledge.

Subsec. (b)(3) to (10). Pub. L. 89-719 added pars. (3) to (10).

Subsecs. (c) to (e). Pub. L. 89-719 added subsecs. (c) to (e).

Subsec. (f)(1). Pub. L. 89-719 redesignated provisions of former

subsec. (a)(1) to (3) as subsec. (f)(1).

Subsec. (f)(2). Pub. L. 89-719 added par. (2).

Subsec. (f)(3). Pub. L. 89-719 redesignated provisions of former

subsec. (b) as subsec. (f)(3) and substituted provisions that the

form and content of the notice be prescribed by the Secretary or

his delegate for provisions limiting the effectiveness of the

notice to situations in which the notice is in such form as would

be valid if filed with the clerk of the United States district

court when state or territory law fails to designate an office for

the filing of notice.

Subsec. (g). Pub. L. 89-719 added subsec. (g).

Subsec. (h)(1), (2). Pub. L. 89-719 added pars. (1) and (2).

Subsec. (h)(3). Pub. L. 89-719 redesignated provisions of former

subsec. (d)(2) as subsec. (h)(3).

Subsec. (h)(4). Pub. L. 89-719 redesignated provisions of former

subsec. (c)(2) as subsec. (h)(4).

Subsec. (h)(5), (6). Pub. L. 89-719 added pars. (5), (6).

Subsec. (i)(1), (2). Pub. L. 89-719 added pars. (1), (2).

Subsec. (i)(3). Pub. L. 89-719 redesignated provisions of former

subsec. (e) as subsec. (i)(3) and substituted "regulations" for

"rules and relations".

1964 - Subsec. (a). Pub. L. 88-272, Sec. 236(c)(1), substituted

"subsections (c) and (d)" for "subsection (c)".

Subsecs. (d), (e). Pub. L. 88-272, Sec. 236(a), added subsec. (d)

and redesignated former subsec. (d) as (e).

EFFECTIVE DATE OF 1998 AMENDMENT

Amendment by section 1102(d)(1)(A) of Pub. L. 105-206 effective

July 22, 1998, see section 1102(f)(1) of Pub. L. 105-206, set out

as a note under section 7803 of this title.

Pub. L. 105-206, title III, Sec. 3435(c), July 22, 1998, 112

Stat. 761, provided that: "The amendments made by this section

[amending this section] shall take effect on the date of the

enactment of this Act [July 22, 1998]."

EFFECTIVE DATE OF 1996 AMENDMENT

Section 501(d) of Pub. L. 104-168 provided that: "The amendments

made by this section [amending this section and section 6343 of

this title] shall take effect on the date of the enactment of this

Act [July 30, 1996]."

EFFECTIVE DATE OF 1990 AMENDMENT

Section 11317(c) of Pub. L. 101-508 provided that: "The

amendments made by this section [amending this section and section

6502 of this title] shall apply to -

"(1) taxes assessed after the date of the enactment of this Act

[Nov. 5, 1990], and

"(2) taxes assessed on or before such date if the period

specified in section 6502 of the Internal Revenue Code of 1986

(determined without regard to the amendments made by subsection

(a) [amending section 6502 of this title]) for collection of such

taxes has not expired as of such date."

EFFECTIVE DATE OF 1988 AMENDMENT

Section 1015(s)(2) of Pub. L. 100-647 provided that: "The

amendments made by this subsection [amending this section] shall

take effect on the date of the enactment of this Act [Nov. 10,

1988]."

EFFECTIVE DATE OF 1986 AMENDMENT

Section 1569(b) of Pub. L. 99-514 provided that: "The amendment

made by this section [amending this section] shall take effect on

the date of the enactment of this Act [Oct. 22, 1986]."

EFFECTIVE DATE OF 1978 AMENDMENT

Section 702(q)(3) of Pub. L. 95-600, as amended by Pub. L.

99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:

"(A) The amendments made by this subsection [amending this

section] shall apply with respect to liens, other security

interests, and other interests in real property acquired after the

date of the enactment of this Act [Nov. 6, 1978].

"(B) If, after the date of the enactment of this Act, there is a

change in the application (or nonapplication) of section 6323(f)(4)

of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] (as

amended by paragraph (1)) with respect to any filing jurisdiction,

such change shall apply only with respect to liens, other security

interests, and other interests in real property acquired after the

date of such change."

EFFECTIVE DATE OF 1976 AMENDMENT

Amendment by section 1202(h)(2) of Pub. L. 94-455 effective Jan.

1, 1977, see section 1202(i) of Pub. L. 94-455, set out as a note

under section 6103 of this title.

Section 2008(d)(3) of Pub. L. 94-455 provided that: "The

amendment made by subsection (c) [amending this section] shall take

effect -

"(A) in the case of liens filed before the date of the

enactment of this Act [Oct. 4, 1976], on the 270th day after such

date of enactment, or

"(B) in the case of liens filed on or after the date of

enactment of this Act [Oct. 4, 1976], on the 120th day after such

date of enactment."

EFFECTIVE DATE OF 1966 AMENDMENTS

Section 114(a)-(c) of title I of Pub. L. 89-719 provided that:

"(a) General Rule. - Except as otherwise provided, the amendments

made by this title [enacting sections 3505, 7425, 7426, and 7810 of

this title, amending this section, sections 545, 6322, 6324, 6325,

6331, 6332, 6334, 6335, 6337, 6338, 6339, 6342, 6343, 6502, 6503,

6532, 7402, 7403, 7421, 7424, 7505, 7506, and 7809 of this title,

and section 270a of former Title 40, Public Buildings, Property,

and Works, redesignating former section 7425 as 7427 of this title,

and enacting provisions set out as notes under this section and

section 7424 of this title] shall apply after the date of enactment

of this Act [Nov. 2, 1966], regardless of when a lien or a title of

the United States arose or when the lien or interest of any other

person was acquired.

"(b) Exceptions. - The amendments made by this title shall not

apply in any case -

"(1) in which a lien or a title derived from enforcement of a

lien held by the United States has been enforced by a civil

action or suit which has become final by judgment, sale, or

agreement before the date of enactment of this Act; or

"(2) in which such amendments would -

"(A) impair a priority enjoyed by any person (other than the

United States) holding a lien or interest prior to the date of

enactment of this Act;

"(B) operate to increase the liability of any such person; or

"(C) shorten the time for bringing suit with respect to

transactions occurring before the date of enactment of this

Act.

"(c) Liability for Withheld Taxes. -

"(1) The amendments made by section 105(a) (relating to effect

on third parties) [adding section 3505 of this title] shall apply

only with respect to wages paid on or after January 1, 1967.

"(2) The amendments made by section 105(b) (relating to

performance bonds of contractors for public buildings or works)

[amending section 270a of former Title 40] shall apply to

contracts entered into pursuant to invitations for bids issued

after June 30, 1967."

Section 21 of Pub. L. 89-493 provided that: "This Act [amending

this section] shall take effect on the first day of the first month

which is at least ninety days after the date of approval of this

Act [July 5, 1966]."

EFFECTIVE DATE OF 1964 AMENDMENT

Section 236(d) of Pub. L. 88-272 provided that: "The amendments

made by this section [amending this section and section 6324 of

this title] shall apply only with respect to purchases made after

the date of the enactment of this Act [Feb. 26, 1964.]"

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 4101, 6320, 6324, 6324A,

6325, 6332 of this title; title 11 section 724; title 18 section

3613; title 30 section 934; title 42 section 9607.

-End-

-CITE-

26 USC Sec. 6324 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 64 - COLLECTION

Subchapter C - Lien for Taxes

PART II - LIENS

-HEAD-

Sec. 6324. Special liens for estate and gift taxes

-STATUTE-

(a) Liens for estate tax

Except as otherwise provided in subsection (c) -

(1) Upon gross estate

Unless the estate tax imposed by chapter 11 is sooner paid in

full, or becomes unenforceable by reason of lapse of time, it

shall be a lien upon the gross estate of the decedent for 10

years from the date of death, except that such part of the gross

estate as is used for the payment of charges against the estate

and expenses of its administration, allowed by any court having

jurisdiction thereof, shall be divested of such lien.

(2) Liability of transferees and others

If the estate tax imposed by chapter 11 is not paid when due,

then the spouse, transferee, trustee (except the trustee of an

employees' trust which meets the requirements of section 401(a)),

surviving tenant, person in possession of the property by reason

of the exercise, nonexercise, or release of a power of

appointment, or beneficiary, who receives, or has on the date of

the decedent's death, property included in the gross estate under

sections 2034 to 2042, inclusive, to the extent of the value, at

the time of the decedent's death, of such property, shall be

personally liable for such tax. Any part of such property

transferred by (or transferred by a transferee of) such spouse,

transferee, trustee, surviving tenant, person in possession, or

beneficiary, to a purchaser or holder of a security interest

shall be divested of the lien provided in paragraph (1) and a

like lien shall then attach to all the property of such spouse,

transferee, trustee, surviving tenant, person in possession, or

beneficiary, or transferee of any such person, except any part

transferred to a purchaser or a holder of a security interest.

(3) Continuance after discharge of fiduciary

The provisions of section 2204 (relating to discharge of

fiduciary from personal liability) shall not operate as a release

of any part of the gross estate from the lien for any deficiency

that may thereafter be determined to be due, unless such part of

the gross estate (or any interest therein) has been transferred

to a purchaser or a holder of a security interest, in which case

such part (or such interest) shall not be subject to a lien or to

any claim or demand for any such deficiency, but the lien shall

attach to the consideration received from such purchaser or

holder of a security interest, by the heirs, legatees, devisees,

or distributees.

(b) Lien for gift tax

Except as otherwise provided in subsection (c), unless the gift

tax imposed by chapter 12 is sooner paid in full or becomes

unenforceable by reason of lapse of time, such tax shall be a lien

upon all gifts made during the period for which the return was

filed, for 10 years from the date the gifts are made. If the tax is

not paid when due, the donee of any gift shall be personally liable

for such tax to the extent of the value of such gift. Any part of

the property comprised in the gift transferred by the donee (or by

a transferee of the donee) to a purchaser or holder of a security

interest shall be divested of the lien imposed by this subsection

and such lien, to the extent of the value of such gift, shall

attach to all the property (including after-acquired property) of

the donee (or the transferee) except any part transferred to a

purchaser or holder of a security interest.

(c) Exceptions

(1) The lien imposed by subsection (a) or (b) shall not be valid

as against a mechanic's lienor and, subject to the conditions

provided by section 6323(b) (relating to protection for certain

interests even though notice filed), shall not be valid with

respect to any lien or interest described in section 6323(b).

(2) If a lien imposed by subsection (a) or (b) is not valid as

against a lien or security interest, the priority of such lien or

security interest shall extend to any item described in section

6323(e) (relating to priority of interest and expenses) to the

extent that, under local law, such item has the same priority as

the lien or security interest to which it relates.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 780; Pub. L. 88-272, title II,

Sec. 236(b), (c)(2), Feb. 26, 1964, 78 Stat. 127, 128; Pub. L.

89-719, title I, Sec. 102, Nov. 2, 1966, 80 Stat. 1132; Pub. L.

91-614, title I, Secs. 101(d)(2), 102(d)(7), Dec. 31, 1970, 84

Stat. 1837, 1842.)

-MISC1-

AMENDMENTS

1970 - Subsec. (a)(3). Pub. L. 91-614, Sec. 101(d)(2),

substituted "fiduciary" for "executor" in heading and text.

Subsec. (b). Pub. L. 91-614, Sec. 102(d)(7), substituted "period

for which the return was filed" for "calendar year".

1966 - Subsec. (a)(1). Pub. L. 89-719 inserted ", or becomes

unenforceable by reason of lapse of time," after "sooner paid in

full" and substituted "10 years from the date of death" for "10

years upon the gross estate of the decedent".

Subsec. (a)(2). Pub. L. 89-719 substituted "person in possession,

or beneficiary, to a purchaser or holder of a security interest"

for "person in possession of property by reason of the exercise,

nonexercise, or release of a power of appointment, or beneficiary,

to a bona fide purchaser, mortgagee, or pledgee, for an adequate

and full consideration in money and money's worth" and "except any

part transferred to a purchaser or a holder of a security interest"

for "except any part transferred to a bona fide purchaser,

mortgagee, or pledgee for an adequate and full consideration in

money or money's worth".

Subsec. (a)(3). Pub. L. 89-719 substituted "purchaser or a holder

of a security interest" for "bona fide purchaser, mortgagee, or

pledgee for an adequate and full consideration in money or money's

worth" and "purchaser or holder of a security interest" for

"purchaser, mortgagee, or pledgee".

Subsec. (b). Pub. L. 89-719 substituted reference to exception

provided in subsec. (c) for reference to exceptions provided in

subsecs. (c) and (d), inserted reference to tax becoming

unenforceable by reason of lapse of time, and substituted

"purchaser or holder of a security interest" for "bona-fide

purchaser, mortgagee, or pledgee, for an adequate and full

consideration in money or money's worth".

Subsec. (c). Pub. L. 89-719 redesignated as par. (1) provisions

formerly constituting subsec. (c), substituted "valid as against a

mechanic's lienor and, subject to the conditions provided by

section 6323(b) (relating to protection for certain interests even

though noticed filed), shall not be valid with respect to any lien

or interest described in section 6323(b)" for "valid with respect

to a security, as defined in section 6323(c)(2), as against any

mortgagee, pledgee, or purchaser of any such security, for an

adequate and full consideration in money or money's worth, if at

the time of such mortgage, pledge, or purchase such mortgagee,

pledgee, or purchaser is without notice or knowledge of the

existence of such lien", and added par. (2).

Subsec. (d). Pub. L. 89-719 struck out subsec. (d) dealing with

exceptions in the case of motor vehicles. See subsec. (c) above and

reference therein to section 6323(b).

1964 - Subsecs. (a), (b). Pub. L. 88-272, Sec. 236(c)(2),

inserted "and subsection (d) (relating to purchases of motor

vehicles)".

Subsec. (d). Pub. L. 88-272, Sec. 236(b), added subsec. (d).

EFFECTIVE DATE OF 1970 AMENDMENT

Amendment by section 101(d)(2) of Pub. L. 91-614 applicable with

respect to decedents dying after Dec. 31, 1970, see section 101(j)

of Pub. L. 91-614, set out as a note under section 2032 of this

title.

Amendment by section 102(d)(7) of Pub. L. 91-614 applicable with

respect to gifts made after Dec. 31, 1970, see section 102(e) of

Pub. L. 91-614, set out as a note under section 2501 of this title.

EFFECTIVE DATE OF 1966 AMENDMENT

Amendment by Pub. L. 89-719 applicable after Nov. 2, 1966,

regardless of when title or lien of United States arose or when

lien or interest of another person was acquired, with certain

exceptions, see section 114(a)-(c) of Pub. L. 89-719, set out as a

note under section 6323 of this title.

EFFECTIVE DATE OF 1964 AMENDMENT

Amendment by Pub. L. 88-272 applicable to purchases made after

Feb. 26, 1964, see section 236(d) of Pub. L. 88-272, set out as a

note under section 6323 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 2056A, 6323, 6324A, 6325,

6901 of this title.

-End-

-CITE-

26 USC Sec. 6324A 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 64 - COLLECTION

Subchapter C - Lien for Taxes

PART II - LIENS

-HEAD-

Sec. 6324A. Special lien for estate tax deferred under section 6166

-STATUTE-

(a) General rule

In the case of any estate with respect to which an election has

been made under section 6166, if the executor makes an election

under this section (at such time and in such manner as the

Secretary shall by regulations prescribe) and files the agreement

referred to in subsection (c), the deferred amount (plus any

interest, additional amount, addition to tax, assessable penalty,

and costs attributable to the deferred amount) shall be a lien in

favor of the United States on the section 6166 lien property.

(b) Section 6166 lien property

(1) In general

For purposes of this section, the term "section 6166 lien

property" means interests in real and other property to the

extent such interests -

(A) can be expected to survive the deferral period, and

(B) are designated in the agreement referred to in subsection

(c).

(2) Maximum value of required property

The maximum value of the property which the Secretary may

require as section 6166 lien property with respect to any estate

shall be a value which is not greater than the sum of -

(A) the deferred amount, and

(B) the required interest amount.

For purposes of the preceding sentence, the value of any property

shall be determined as of the date prescribed by section 6151(a)

for payment of the tax imposed by chapter 11 and shall be

determined by taking into account any encumbrance such as a lien

under section 6324B.

(3) Partial substitution of bond for lien

If the value required as section 6166 lien property pursuant to

paragraph (2) exceeds the value of the interests in property

covered by the agreement referred to in subsection (c), the

Secretary may accept bond in an amount equal to such excess

conditioned on the payment of the amount extended in accordance

with the terms of such extension.

(c) Agreement

The agreement referred to in this subsection is a written

agreement signed by each person in being who has an interest

(whether or not in possession) in any property designated in such

agreement -

(1) consenting to the creation of the lien under this section

with respect to such property, and

(2) designating a responsible person who shall be the agent for

the beneficiaries of the estate and for the persons who have

consented to the creation of the lien in dealings with the

Secretary on matters arising under section 6166 or this section.

(d) Special rules

(1) Requirement that lien be filed

The lien imposed by this section shall not be valid as against

any purchaser, holder of a security interest, mechanic's lien, or

judgment lien creditor until notice thereof which meets the

requirements of section 6323(f) has been filed by the Secretary.

Such notice shall not be required to be refiled.

(2) Period of lien

The lien imposed by this section shall arise at the time the

executor is discharged from liability under section 2204 (or, if

earlier, at the time notice is filed pursuant to paragraph (1))

and shall continue until the liability for the deferred amount is

satisfied or becomes unenforceable by reason of lapse of time.

(3) Priorities

Even though notice of a lien imposed by this section has been

filed as provided in paragraph (1), such lien shall not be valid

-

(A) Real property tax and special assessment liens

To the extent provided in section 6323(b)(6).

(B) Real property subject to a mechanic's lien for repairs and

improvement

In the case of any real property subject to a lien for repair

or improvement, as against a mechanic's lienor.

(C) Real property construction or improvement financing

agreement

As against any security interest set forth in paragraph (3)

of section 6323(c) (whether such security interest came into

existence before or after tax lien filing).

Subparagraphs (B) and (C) shall not apply to any security

interest which came into existence after the date on which the

Secretary filed notice (in a manner similar to notice filed under

section 6323(f)) that payment of the deferred amount has been

accelerated under section 6166(g).

(4) Lien to be in lieu of section 6324 lien

If there is a lien under this section on any property with

respect to any estate, there shall not be any lien under section

6324 on such property with respect to the same estate.

(5) Additional lien property required in certain cases

If at any time the value of the property covered by the

agreement is less than the unpaid portion of the deferred amount

and the required interest amount, the Secretary may require the

addition of property to the agreement (but he may not require

under this paragraph that the value of the property covered by

the agreement exceed such unpaid portion). If property having the

required value is not added to the property covered by the

agreement (or if other security equal to the required value is

not furnished) within 90 days after notice and demand therefor by

the Secretary, the failure to comply with the preceding sentence

shall be treated as an act accelerating payment of the

installments under section 6166(g).

(6) Lien to be in lieu of bond

The Secretary may not require under section 6165 the furnishing

of any bond for the payment of any tax to which an agreement

which meets the requirements of subsection (c) applies.

(e) Definitions

For purposes of this section -

(1) Deferred amount

The term "deferred amount" means the aggregate amount deferred

under section 6166 (determined as of the date prescribed by

section 6151(a) for payment of the tax imposed by chapter 11).

(2) Required interest amount

The term "required interest amount" means the aggregate amount

of interest which will be payable over the first 4 years of the

deferral period with respect to the deferred amount (determined

as of the date prescribed by section 6151(a) for the payment of

the tax imposed by chapter 11).

(3) Deferral period

The term "deferral period" means the period for which the

payment of tax is deferred pursuant to the election under section

6166.

(4) Application of definitions in case of deficiencies

In the case of a deficiency, a separate deferred amount,

required interest amount, and deferral period shall be determined

as of the due date of the first installment after the deficiency

is prorated to installments under section 6166.

-SOURCE-

(Added Pub. L. 94-455, title XX, Sec. 2004(d)(1), Oct. 4, 1976, 90

Stat. 1868; amended Pub. L. 95-600, title VII, Sec. 702(e)(1), Nov.

6, 1978, 92 Stat. 2929; Pub. L. 97-34, title IV, Sec.

422(e)(6)(A)-(C), Aug. 13, 1981, 95 Stat. 316.)

-MISC1-

AMENDMENTS

1981 - Pub. L. 97-34, Sec. 422(e)(6)(C), struck out "or 6166A"

after "section 6166" in section catchline.

Subsecs. (a), (c)(2). Pub. L. 97-34, Sec. 422(e)(6)(A), struck

out "or 6166A" after "section 6166".

Subsec. (d)(3), (5). Pub. L. 97-34, Sec. 422(e)(6)(B), struck out

"or 6166A(h)" after "section 6166(g)".

Subsec. (e)(1), (3), (4). Pub. L. 97-34, Sec. 422(e)(6)(A),

struck out "or 6166A" after "section 6166".

1978 - Subsec. (b)(2)(B). Pub. L. 95-600, Sec. 702(e)(1)(B),

substituted "required interest amount" for "aggregate interest

amount".

Subsec. (d)(5). Pub. L. 95-600, Sec. 702(e)(1)(C), substituted

"required interest amount" for "aggregate interest amount".

Subsec. (e)(2). Pub. L. 95-600, Sec. 702(e)(1)(A), substituted

"Required interest amount" for "Aggregate interest amount" in

heading and in text "required interest amount", "over the first 4

years of the deferral period" and "for the payment" for "aggregate

interest amount", "over the deferral period" and "for payment",

respectively.

Subsec. (e)(4). Pub. L. 95-600, Sec. 702(e)(1)(D), substituted

"required interest amount" for "aggregate interest amount".

EFFECTIVE DATE OF 1981 AMENDMENT

Amendment by Pub. L. 97-34 applicable to estates of decedents

dying after Dec. 31, 1981, see section 422(f)(1) of Pub. L. 97-34,

set out as a note under section 6166 of this title.

EFFECTIVE DATE OF 1978 AMENDMENT

Section 702(e)(2) of Pub. L. 95-600 provided that: "The

amendments made by this section [amending this section] shall apply

to the estates of decedents dying after December 31, 1976."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 2204, 6324B, 6166 of this

title.

-End-

-CITE-

26 USC Sec. 6324B 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 64 - COLLECTION

Subchapter C - Lien for Taxes

PART II - LIENS

-HEAD-

Sec. 6324B. Special lien for additional estate tax attributable to

farm, etc., valuation

-STATUTE-

(a) General rule

In the case of any interest in qualified real property (within

the meaning of section 2032A(b)), an amount equal to the adjusted

tax difference attributable to such interest (within the meaning of

section 2032A(c)(2)(B)) shall be a lien in favor of the United

States on the property in which such interest exists.

(b) Period of lien

The lien imposed by this section shall arise at the time an

election is filed under section 2032A and shall continue with

respect to any interest in the qualified real property -

(1) until the liability for tax under subsection (c) of section

2032A with respect to such interest has been satisfied or has

become unenforceable by reason of lapse of time, or

(2) until it is established to the satisfaction of the

Secretary that no further tax liability may arise under section

2032A(c) with respect to such interest.

(c) Certain rules and definitions made applicable

(1) In general

The rule set forth in paragraphs (1), (3), and (4) of section

6324A(d) shall apply with respect to the lien imposed by this

section as if it were a lien imposed by section 6324A.

(2) Qualified real property

For purposes of this section, the term "qualified real

property" includes qualified replacement property (within the

meaning of section 2032A(h)(3)(B)) and qualified exchange

property (within the meaning of section 2032A(i)(3)).

(d) Substitution of security for lien

To the extent provided in regulations prescribed by the

Secretary, the furnishing of security may be substituted for the

lien imposed by this section.

-SOURCE-

(Added Pub. L. 94-455, title XX, Sec. 2003(b), Oct. 4, 1976, 90

Stat. 1861; amended Pub. L. 95-600, title VII, Sec. 702(r)(4), Nov.

6, 1978, 92 Stat. 2939; Pub. L. 96-222, title I, Sec. 108(d), Apr.

1, 1980, 94 Stat. 228; Pub. L. 97-34, title IV, Sec. 421(d)(2)(B),

Aug. 13, 1981, 95 Stat. 309.)

-MISC1-

AMENDMENTS

1981 - Subsec. (c)(2). Pub. L. 97-34 defined "qualified real

property" to include qualified exchange property (within the

meaning of section 2032A(i)(3)).

1980 - Subsec. (c). Pub. L. 96-222 designated existing provisions

as par. (1), substituted "The rule" for "The rules", and added par.

(2).

1978 - Subsec. (b). Pub. L. 95-600 substituted "qualified real

property" for "qualified farm real property".

EFFECTIVE DATE OF 1981 AMENDMENT

Amendment by Pub. L. 97-34 applicable with respect to exchanges

after Dec. 31, 1981, see section 421(k)(3) of Pub. L. 97-34, set

out as a note under section 2032A of this title.

EFFECTIVE DATE OF 1980 AMENDMENT

Amendment by Pub. L. 96-222 effective, except as otherwise

provided, as if it had been included in the provisions of the

Revenue Act of 1978, Pub. L. 95-600, to which such amendment

relates, see section 201 of Pub. L. 96-222, set out as a note under

section 32 of this title.

EFFECTIVE DATE OF 1978 AMENDMENT

Amendment by Pub. L. 95-600 applicable to estates of decedents

dying after Dec. 31, 1976, see section 702(r)(5) of Pub. L. 95-600,

set out as a note under section 2051 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 2032A, 2057, 6324A, 6325

of this title.

-End-

-CITE-

26 USC Sec. 6325 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 64 - COLLECTION

Subchapter C - Lien for Taxes

PART II - LIENS

-HEAD-

Sec. 6325. Release of lien or discharge of property

-STATUTE-

(a) Release of lien

Subject to such regulations as the Secretary may prescribe, the

Secretary shall issue a certificate of release of any lien imposed

with respect to any internal revenue tax not later than 30 days

after the day on which -

(1) Liability satisfied or unenforceable

The Secretary finds that the liability for the amount assessed,

together with all interest in respect thereof, has been fully

satisfied or has become legally unenforceable; or

(2) Bond accepted

There is furnished to the Secretary and accepted by him a bond

that is conditioned upon the payment of the amount assessed,

together with all interest in respect thereof, within the time

prescribed by law (including any extension of such time), and

that is in accordance with such requirements relating to terms,

conditions, and form of the bond and sureties thereon, as may be

specified by such regulations.

(b) Discharge of property

(1) Property double the amount of the liability

Subject to such regulations as the Secretary may prescribe, the

Secretary may issue a certificate of discharge of any part of the

property subject to any lien imposed under this chapter if the

Secretary finds that the fair market value of that part of such

property remaining subject to the lien is at least double the

amount of the unsatisfied liability secured by such lien and the

amount of all other liens upon such property which have priority

over such lien.

(2) Part payment; interest of United States valueless

Subject to such regulations as the Secretary may prescribe, the

Secretary may issue a certificate of discharge of any part of the

property subject to the lien if -

(A) there is paid over to the Secretary in partial

satisfaction of the liability secured by the lien an amount

determined by the Secretary, which shall not be less than the

value, as determined by the Secretary, of the interest of the

United States in the part to be so discharged, or

(B) the Secretary determines at any time that the interest of

the United States in the part to be so discharged has no value.

In determining the value of the interest of the United States in

the part to be so discharged, the Secretary shall give

consideration to the value of such part and to such liens thereon

as have priority over the lien of the United States.

(3) Substitution of proceeds of sale

Subject to such regulations as the Secretary may prescribe, the

Secretary may issue a certificate of discharge of any part of the

property subject to the lien if such part of the property is sold

and, pursuant to an agreement with the Secretary, the proceeds of

such sale are to be held, as a fund subject to the liens and

claims of the United States, in the same manner and with the same

priority as such liens and claims had with respect to the

discharged property.

(4) Right of substitution of value

(A) In general

At the request of the owner of any property subject to any

lien imposed by this chapter, the Secretary shall issue a

certificate of discharge of such property if such owner -

(i) deposits with the Secretary an amount of money equal to

the value of the interest of the United States (as determined

by the Secretary) in the property; or

(ii) furnishes a bond acceptable to the Secretary in a like

amount.

(B) Refund of deposit with interest and release of bond

The Secretary shall refund the amount so deposited (and shall

pay interest at the overpayment rate under section 6621), and

shall release such bond, to the extent that the Secretary

determines that -

(i) the unsatisfied liability giving rise to the lien can

be satisfied from a source other than such property; or

(ii) the value of the interest of the United States in the

property is less than the Secretary's prior determination of

such value.

(C) Use of deposit, etc., if action to contest lien not filed

If no action is filed under section 7426(a)(4) within the

period prescribed therefor, the Secretary shall, within 60 days

after the expiration of such period -

(i) apply the amount deposited, or collect on such bond, to

the extent necessary to satisfy the unsatisfied liability

secured by the lien; and

(ii) refund (with interest as described in subparagraph

(B)) any portion of the amount deposited which is not used to

satisfy such liability.

(D) Exception

Subparagraph (A) shall not apply if the owner of the property

is the person whose unsatisfied liability gave rise to the

lien.

(c) Estate or gift tax

Subject to such regulations as the Secretary may prescribe, the

Secretary may issue a certificate of discharge of any or all of the

property subject to any lien imposed by section 6324 if the

Secretary finds that the liability secured by such lien has been

fully satisfied or provided for.

(d) Subordination of lien

Subject to such regulations as the Secretary may prescribe, the

Secretary may issue a certificate of subordination of any lien

imposed by this chapter upon any part of the property subject to

such lien if -

(1) there is paid over to the Secretary an amount equal to the

amount of the lien or interest to which the certificate

subordinates the lien of the United States,

(2) the Secretary believes that the amount realizable by the

United States from the property to which the certificate relates,

or from any other property subject to the lien, will ultimately

be increased by reason of the issuance of such certificate and

that the ultimate collection of the tax liability will be

facilitated by such subordination, or

(3) in the case of any lien imposed by section 6324B, if the

Secretary determines that the United States will be adequately

secured after such subordination.

(e) Nonattachment of lien

If the Secretary determines that, because of confusion of names

or otherwise, any person (other than the person against whom the

tax was assessed) is or may be injured by the appearance that a

notice of lien filed under section 6323 refers to such person, the

Secretary may issue a certificate that the lien does not attach to

the property of such person.

(f) Effect of certificate

(1) Conclusiveness

Except as provided in paragraphs (2) and (3), if a certificate

is issued pursuant to this section by the Secretary and is filed

in the same office as the notice of lien to which it relates (if

such notice of lien has been filed) such certificate shall have

the following effect:

(A) in the case of a certificate of release, such certificate

shall be conclusive that the lien referred to in such

certificate is extinguished;

(B) in the case of a certificate of discharge, such

certificate shall be conclusive that the property covered by

such certificate is discharged from the lien;

(C) in the case of a certificate of subordination, such

certificate shall be conclusive that the lien or interest to

which the lien of the United States is subordinated is superior

to the lien of the United States; and

(D) in the case of a certificate of nonattachment, such

certificate shall be conclusive that the lien of the United

States does not attach to the property of the person referred

to in such certificate.

(2) Revocation of certificate of release or nonattachment

If the Secretary determines that a certificate of release or

nonattachment of a lien imposed by section 6321 was issued

erroneously or improvidently, or if a certificate of release of

such lien was issued pursuant to a collateral agreement entered

into in connection with a compromise under section 7122 which has

been breached, and if the period of limitation on collection

after assessment has not expired, the Secretary may revoke such

certificate and reinstate the lien -

(A) by mailing notice of such revocation to the person

against whom the tax was assessed at his last known address,

and

(B) by filing notice of such revocation in the same office in

which the notice of lien to which it relates was filed (if such

notice of lien had been filed).

Such reinstated lien (i) shall be effective on the date notice of

revocation is mailed to the taxpayer in accordance with the

provisions of subparagraph (A), but not earlier than the date on

which any required filing of notice of revocation is filed in

accordance with the provisions of subparagraph (B), and (ii)

shall have the same force and effect (as of such date), until the

expiration of the period of limitation on collection after

assessment, as a lien imposed by section 6321 (relating to lien

for taxes).

(3) Certificates void under certain conditions

Notwithstanding any other provision of this subtitle, any lien

imposed by this chapter shall attach to any property with respect

to which a certificate of discharge has been issued if the person

liable for the tax reacquires such property after such

certificate has been issued.

(g) Filing of certificates and notices

If a certificate or notice issued pursuant to this section may

not be filed in the office designated by State law in which the

notice of lien imposed by section 6321 is filed, such certificate

or notice shall be effective if filed in the office of the clerk of

the United States district court for the judicial district in which

such office is situated.

(h) Cross reference

For provisions relating to bonds, see chapter 73 (sec. 7101

and following).

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 783; Pub. L. 85-866, title I,

Sec. 77, Nov. 2, 1966, 72 Stat. 1662; Pub. L. 89-719, title I, Sec.

103(a), Nov. 2, 1966, 80 Stat. 1133; Pub. L. 94-455, title XIX,

Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 95-600,

title V, Sec. 513(a), Nov. 6, 1978, 92 Stat. 2883; Pub. L. 97-248,

title III, Sec. 348(a), Sept. 3, 1982, 96 Stat. 638; Pub. L.

105-206, title III, Sec. 3106(a), July 22, 1998, 112 Stat. 732.)

-MISC1-

AMENDMENTS

1998 - Subsec. (b)(4). Pub. L. 105-206 added par. (4).

1982 - Subsec. (a). Pub. L. 97-248 in introductory provisions

substituted "shall issue" for "may issue" and "not later than 30

days after the day on which" for "if".

1978 - Subsec. (d)(3). Pub. L. 95-600 added par. (3).

1976 - Pub. L. 94-455 struck out "or his delegate" after

"Secretary" wherever appearing.

1966 - Subsec. (b)(3). Pub. L. 89-719 added par. (3).

Subsecs. (d), (e). Pub. L. 89-719 added subsecs. (d) and (e).

Former subsecs. (d) and (e) redesignated, with amendments, as

subsecs. (f)(1) and (h), respectively.

Subsec. (f). Pub. L. 89-719 redesignated as par. (1) provisions

formerly constituting subsec. (d), inserted reference to exceptions

provided in pars. (2) and (3) and reference to the filing of the

certificate in the same office as the notice of lien to which it

refers and expanded the types of certificates to include separate

certificates of release, discharge, subordination, and

nonattachment, and added pars. (2) and (3).

Subsec. (g). Pub. L. 89-719 added subsec. (g).

Subsec. (h). Pub. L. 89-719 redesignated as subsec. (h)

provisions formerly constituting subsec. (e) and struck out cross

references for single bonds, suits to enforce liens, and suits to

clear title to realty.

1958 - Subsec. (a)(1). Pub. L. 85-866, Sec. 77(1), substituted

"or" for "," after "satisfied" and struck out ", or, in the case of

the estate tax imposed by chapter 11 or the gift tax imposed by

chapter 12, has been fully satisfied or provided for" after

"unenforceable".

Subsec. (c). Pub. L. 85-866, Sec. 77(2), added subsec. (c) and

redesignated former subsec. (c) as (d).

Subsec. (d). Pub. L. 85-866. Sec. 77(2), (3), redesignated former

subsec. (c) as (d) and in heading and text struck out "partial"

before "discharge". Former subsec. (d) redesignated (e).

Subsec. (e). Pub. L. 85-866, Sec. 77(2), redesignated former

subsec. (d) as (e).

EFFECTIVE DATE OF 1998 AMENDMENT

Pub. L. 105-206, title III, Sec. 3106(c), July 22, 1998, 112

Stat. 734, provided that: "The amendments made by this section

[amending this section and sections 6503 and 7426 of this title]

shall take effect on the date of the enactment of this Act [July

22, 1998]."

EFFECTIVE DATE OF 1982 AMENDMENT

Section 348(b) of Pub. L. 97-248 provided that: "The amendment

made by subsection (a) [amending this section] shall apply with

respect to liens -

"(1) which are filed after December 31, 1982,

"(2) which are satisfied after December 31, 1982, or

"(3) with respect to which the taxpayer after December 31,

1982, requests the Secretary of the Treasury or his delegate to

issue a certificate of release on the grounds that the liability

was satisfied or legally unenforceable."

EFFECTIVE DATE OF 1978 AMENDMENT

Section 513(b) of Pub. L. 95-600 provided that: "The amendments

made by subsection (a) [amending this section] shall apply with

respect to the estates of decedents dying after December 31, 1976."

EFFECTIVE DATE OF 1966 AMENDMENT

Amendment by Pub. L. 89-719 applicable after Nov. 2, 1966,

regardless of when title or lien of United States arose or when

lien or interest of another person was acquired, with certain

exceptions, see section 114(a)-(c) of Pub. L. 89-719, set out as a

note under section 6323 of this title.

EFFECTIVE DATE OF 1958 AMENDMENT

Amendment by Pub. L. 85-866 effective Aug. 17, 1954, see section

1(c)(2) of Pub. L. 85-866, set out as a note under section 165 of

this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 6503, 7103, 7426, 7432 of

this title; title 28 section 3201.

-End-

-CITE-

26 USC Sec. 6326 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 64 - COLLECTION

Subchapter C - Lien for Taxes

PART II - LIENS

-HEAD-

Sec. 6326. Administrative appeal of liens

-STATUTE-

(a) In general

In such form and at such time as the Secretary shall prescribe by

regulations, any person shall be allowed to appeal to the Secretary

after the filing of a notice of a lien under this subchapter on the

property or the rights to property of such person for a release of

such lien alleging an error in the filing of the notice of such

lien.

(b) Certificate of release

If the Secretary determines that the filing of the notice of any

lien was erroneous, the Secretary shall expeditiously (and, to the

extent practicable, within 14 days after such determination) issue

a certificate of release of such lien and shall include in such

certificate a statement that such filing was erroneous.

-SOURCE-

(Added Pub. L. 100-647, title VI, Sec. 6238(a), Nov. 10, 1988, 102

Stat. 3743.)

-MISC1-

PRIOR PROVISIONS

A prior section 6326 was renumbered 6327 of this title.

EFFECTIVE DATE

Section 6238(d) of Pub. L. 100-647 provided that: "The amendments

made by this section [enacting this section] shall take effect on

the date which is 60 days after the date regulations are issued

under subsection (b) [set out below]."

REGULATIONS

Section 6238(b) of Pub. L. 100-647 required Secretary of the

Treasury or Secretary's delegate to prescribe regulations necessary

to implement administrative appeal provided for in amendment made

by subsection (a) [enacting this section] within 180 days after

Nov. 10, 1988.

-End-

-CITE-

26 USC Sec. 6327 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 64 - COLLECTION

Subchapter C - Lien for Taxes

PART II - LIENS

-HEAD-

Sec. 6327. Cross references

-STATUTE-

(1) For lien in case of tax on distilled spirits, see section

5004.

(2) For exclusion of tax liability from discharge in cases

under title 11 of the United States Code, see section 523 of

such title 11.

(3) For recognition of tax liens in cases under title 11 of

the United States Code, see sections 545 and 724 of such title

11.

(4) For collection of taxes in connection with plans for

individuals with regular income in cases under title 11 of the

United States Code, see section 1328 of such title 11.

(5) For provisions permitting the United States to be made

party defendant in a proceeding in a State court for the

foreclosure of a lien upon real estate where the United States

may have a claim upon the premises involved, see section 2410

of Title 28 of the United States Code.

(6) For priority of lien of the United States in case of

insolvency, see section 3713(a) of title 31, United States

Code.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 782, Sec. 6326; Pub. L. 94-455,

title XIX, Sec. 1906(a)(20), Oct. 4, 1976, 90 Stat. 1825; Pub. L.

96-589, Sec. 6(i)(10), Dec. 24, 1980, 94 Stat. 3411; Pub. L.

97-258, Sec. 3(f)(7), Sept. 13, 1982, 96 Stat. 1064; renumbered

Sec. 6327, Pub. L. 100-647, title VI, Sec. 6238(a), Nov. 10, 1988,

102 Stat. 3743.)

-MISC1-

AMENDMENTS

1982 - Par. (6). Pub. L. 97-258 substituted "section 3713(a) of

title 31, United States Code" for "R.S. 3466 (31 U.S.C. 191)".

1980 - Par. (2). Pub. L. 96-589, Sec. 6(i)(10)(A), substituted

"cases under title 11 of the United States Code, see section 523 of

such title 11" for "bankruptcy, see section 17 of the Bankruptcy

Act, as amended (11 U.S.C. 35)".

Par. (3). Pub. L. 96-589, Sec. 6(i)(10)(A), redesignated par. (4)

as (3) and substituted "cases under title 11 of the United States

Code, see sections 545 and 724 of such title 11" for "proceedings

under the Bankruptcy Act, see section 67(b) and (c) of that act, as

amended (11 U.S.C. 107)". Former par. (3), which provided cross

reference to section 93 of title 11 for limit on amount allowed in

bankruptcy proceedings on debts owing to the United States, was

struck out.

Par. (4). Pub. L. 96-589, Sec. 6(i)(10)(A), redesignated par. (5)

as (4) and substituted "plans for individuals with regular income

in cases under title 11 of the United States Code, see section 1328

of such title 11" for "wage earners' plans in bankruptcy courts,

see section 680 of the Bankruptcy Act, as added by the act of June

22, 1938 (11 U.S.C. 1080)". Former par. (4) redesignated (3).

Pars. (5) to (7). Pub. L. 96-589, Sec. 6(i)(10)(A), (B),

redesignated pars. (6) and (7) as (5) and (6), respectively. Former

par. (5) redesignated (4).

1976 - Pars. (2) to (5). Pub. L. 94-455 struck out parenthetical

references to "52 Stat. 851;", "52 Stat. 867;", "52 Stat. 867-877;"

and "52 Stat. 938;" preceding parenthetical references to sections

of title 11.

EFFECTIVE DATE OF 1980 AMENDMENT

Amendment by Pub. L. 96-589 effective Oct. 1, 1979, but not

applicable to proceedings under Title 11, Bankruptcy, commenced

before Oct. 1, 1979, see section 7(e) of Pub. L. 96-589, set out as

a note under section 108 of this title.

-End-

-CITE-

26 USC Subchapter D - Seizure of Property for Collection

of Taxes 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 64 - COLLECTION

Subchapter D - Seizure of Property for Collection of Taxes

-HEAD-

SUBCHAPTER D - SEIZURE OF PROPERTY FOR COLLECTION OF TAXES

-MISC1-

Part

I. Due process for collections.

II. Levy.

AMENDMENTS

1998 - Pub. L. 105-206, title III, Sec. 3401(b), July 22, 1998,

112 Stat. 747, added part analysis.

-SECREF-

SUBCHAPTER REFERRED TO IN OTHER SECTIONS

This subchapter is referred to in section 7803 of this title;

title 38 sections 1970, 5301.

-End-

-CITE-

26 USC PART I - DUE PROCESS FOR COLLECTIONS 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 64 - COLLECTION

Subchapter D - Seizure of Property for Collection of Taxes

PART I - DUE PROCESS FOR COLLECTIONS

-HEAD-

PART I - DUE PROCESS FOR COLLECTIONS

-MISC1-

Sec.

6330. Notice and opportunity for hearing before levy.

AMENDMENTS

1998 - Pub. L. 105-206, title III, Sec. 3401(b), July 22, 1998,

112 Stat. 747, added part heading and analysis consisting of item

6330.

-End-

-CITE-

26 USC Sec. 6330 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 64 - COLLECTION

Subchapter D - Seizure of Property for Collection of Taxes

PART I - DUE PROCESS FOR COLLECTIONS

-HEAD-

Sec. 6330. Notice and opportunity for hearing before levy

-STATUTE-

(a) Requirement of notice before levy

(1) In general

No 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 notice

The 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 notice

The 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 general

If the person requests a hearing under subsection (a)(3)(B),

such hearing shall be held by the Internal Revenue Service Office

of Appeals.

(2) One hearing per period

A 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 officer

The 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 hearing

In the case of any hearing conducted under this section -

(1) Requirement of investigation

The 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 general

The 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 liability

The 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 determination

The 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 precluded

An issue may not be raised at the hearing if -

(A) the issue was raised and considered at a previous hearing

under section 6320 or in any other previous administrative or

judicial proceeding; and

(B) the person seeking to raise the issue participated

meaningfully in such hearing or proceeding.

This paragraph shall not apply to any issue with respect to which

subsection (d)(2)(B) applies.

(d) Proceeding after hearing

(1) Judicial review of determination

The person may, within 30 days of a determination under this

section, appeal such determination -

(A) to the Tax Court (and the Tax Court shall have

jurisdiction with respect to such matter); or

(B) if the Tax Court does not have jurisdiction of the

underlying tax liability, to a district court of the United

States.

If a court determines that the appeal was to an incorrect court,

a person shall have 30 days after the court determination to file

such appeal with the correct court.

(2) Jurisdiction retained at IRS Office of Appeals

The Internal Revenue Service 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 general

Except 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 appeal

Paragraph (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) Jeopardy and State refund collection

If -

(1) the Secretary has made a finding under the last sentence of

section 6331(a) that the collection of tax is in jeopardy; or

(2) the Secretary has served a levy on a State to collect a

Federal tax liability from a State tax refund,

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.

-SOURCE-

(Added Pub. L. 105-206, title III, Sec. 3401(b), July 22, 1998, 112

Stat. 747; amended Pub. L. 106-554, Sec. 1(a)(7) [title III, Sec.

313(b)(2)(A), (d)], Dec. 21, 2000, 114 Stat. 2763, 2763A-642,

2763A-643.)

-MISC1-

AMENDMENTS

2000 - Subsec. (d)(1)(A). Pub. L. 106-554, Sec. 1(a)(7) [title

III, Sec. 313(d)], substituted "with respect to" for "to hear".

Subsec. (e)(1). Pub. L. 106-554, Sec. 1(a)(7) [title III, Sec.

313(b)(2)(A)], inserted at end "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."

EFFECTIVE DATE OF 2000 AMENDMENT

Amendment by section 1(a)(7) [title III, Sec. 313(b)(2)(A)] of

Pub. L. 106-554 effective Dec. 21, 2000, and amendment by section

1(a)(7) [title III, Sec. 313(d)] of Pub. L. 106-554, effective as

if included in the provisions of the Internal Revenue Service

Restructuring and Reform Act of 1998, Pub. L. 105-206, to which

such amendment relates, see section 1(a)(7) [title III, Sec.

313(f)] of Pub. L. 106-554, set out as a note under section 6015 of

this title.

EFFECTIVE DATE

Section applicable to collection actions initiated after the date

which is 180 days after July 22, 1998, see section 3401(d) of Pub.

L. 105-206, set out as a note under section 6320 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 6320, 7421, 7443A, 7463,

7803 of this title.

-End-

-CITE-

26 USC PART II - LEVY 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 64 - COLLECTION

Subchapter D - Seizure of Property for Collection of Taxes

PART II - LEVY

-HEAD-

PART II - LEVY

-MISC1-

Sec.

6331. Levy and distraint.

6332. Surrender of property subject to levy.

6333. Production of books.

6334. Property exempt from levy.

6335. Sale of seized property.

6336. Sale of perishable goods.

6337. Redemption of property.

6338. Certificate of sale; deed of real property.

6339. Legal effect of certificate of sale of personal

property and deed of real property.

6340. Records of sale.

6341. Expense of levy and sale.

6342. Application of proceeds of levy.

6343. Authority to release levy and return property.

6344. Cross references.

AMENDMENTS

1998 - Pub. L. 105-206, title III, Sec. 3401(b), July 22, 1998,

112 Stat. 749, added part heading.

1966 - Pub. L. 89-719, title I, Sec. 104(j), Nov. 2, 1966, 80

Stat. 1138, inserted "and return property" in item 6343.

-End-

-CITE-

26 USC Sec. 6331 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 64 - COLLECTION

Subchapter D - Seizure of Property for Collection of Taxes

PART II - LEVY

-HEAD-

Sec. 6331. Levy and distraint

-STATUTE-

(a) Authority of Secretary

If 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 property

The 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 seizures

Whenever 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 general

Levy 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 requirement

The 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) Jeopardy

Paragraph (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 notice

The 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, and

(F) the procedures applicable to the redemption of property

and the release of a lien on property under this title.

(e) Continuing levy on salary and wages

The 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 levy

No 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 general

No 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 jeopardy

This subsection shall not apply if the Secretary finds that the

collection of tax is in jeopardy.

(h) Continuing levy on certain payments

(1) In general

If 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 payment

For 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.

(i) No levy during pendency of proceedings for refund of divisible

tax

(1) In general

No 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 tax

For 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 taxes

This 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 levies

This 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 collection

No 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 enjoin

Notwithstanding 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 collection

The 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 proceeding

For 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 general

For 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 investigation

For 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 pending

No 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 agreements

No 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 apply

Rules 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.

(g742l) 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.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 783; Pub. L. 89-719, title I,

Sec. 104(a), Nov. 2, 1966, 80 Stat. 1135; Pub. L. 92-178, title II,

Sec. 211(a), Dec. 10, 1971, 85 Stat. 520; Pub. L. 94-455, title

XII, Sec. 1209(d)(1), (2), (4), title XIX, Sec. 1906(b)(13)(A),

Oct. 4, 1976, 90 Stat. 1710, 1711, 1834; Pub. L. 97-248, title III,

Sec. 349(a), Sept. 3, 1982, 96 Stat. 639; Pub. L. 98-369, div. A,

title VII, Sec. 714(o), July 18, 1984, 98 Stat. 964; Pub. L.

100-647, title VI, Sec. 6236(a), (b), (d), Nov. 10, 1988, 102 Stat.

3737, 3739; Pub. L. 105-34, title X, Sec. 1024(a), Aug. 5, 1997,

111 Stat. 923; Pub. L. 105-206, title III, Secs. 3433(a), 3444(a),

3462(b), title VI, Sec. 6010(f), July 22, 1998, 112 Stat. 759, 762,

765, 814; Pub. L. 106-554, Sec. 1(a)(7) [title III, Sec.

313(b)(3)], Dec. 21, 2000, 114 Stat. 2763, 2763A-642; Pub. L.

107-147, title IV, Sec. 416(e)(1), Mar. 9, 2002, 116 Stat. 55.)

-REFTEXT-

REFERENCES IN TEXT

The Railroad Retirement Act, referred to in subsec. (h)(2)(C), is

act Aug. 29, 1935, ch. 812, as amended generally by Pub. L. 93-445,

title I, Sec. 101, Oct. 16, 1974, 88 Stat. 1305, known as the

Railroad Retirement Act of 1974, which is classified generally to

subchapter IV (Sec. 231 et seq.) of chapter 9 of Title 45,

Railroads. For further details and complete classification of this

Act to the Code, see Codification note set out preceding section

231 of Title 45, section 231t of Title 45, and Tables.

The Railroad Unemployment Insurance Act, referred to in subsec.

(h)(2)(C), is act June 25, 1938, ch. 680, 52 Stat. 1094, as

amended, which is classified principally to chapter 11 (Sec. 351 et

seq.) of Title 45, Railroads. For complete classification of this

Act to the Code, see section 367 of Title 45 and Tables.

-MISC1-

AMENDMENTS

2002 - Subsec. (k)(3). Pub. L. 107-147 reenacted heading without

change and amended text generally. Prior to amendment, text read as

follows: "Rules similar to the rules of paragraphs (3) and (4) of

subsection (i) shall apply for purposes of this subsection."

2000 - Subsec. (k)(3). Pub. L. 106-554 substituted "(3) and (4)"

for "(3), (4), and (5)".

1998 - Subsec. (h)(1). Pub. L. 105-206, Sec. 6010(f), substituted

"If the Secretary approves a levy under this subsection, the effect

of such levy" for "The effect of a levy".

Subsec. (i). Pub. L. 105-206, Sec. 3433(a), added subsec. (i).

Former subsec. (i) redesignated (j).

Subsec. (j). Pub. L. 105-206, Sec. 3444(a), added subsec. (j).

Former subsec. (j) redesignated (k).

Pub. L. 105-206, Sec. 3433(a), redesignated subsec. (i) as (j).

Subsec. (k). Pub. L. 105-206, Sec. 3462(b), added subsec. (k).

Former subsec. (k) redesignated (l).

Pub. L. 105-206, Sec. 3444(a), redesignated subsec. (j) as (k).

Subsec. (l). Pub. L. 105-206, Sec. 3462(b), redesignated subsec.

(k) as (l).

1997 - Subsecs. (h), (i). Pub. L. 105-34 added subsec. (h) and

redesignated former subsec. (h) as (i).

1988 - Subsec. (d)(2). Pub. L. 100-647, Sec. 6236(a)(1), (2),

substituted "30-day" for "10-day" in heading and "30 days" for "10

days" in text.

Subsec. (d)(4). Pub. L. 100-647, Sec. 6236(a)(3), added par. (4).

Subsec. (e). Pub. L. 100-647, Sec. 6236(b)(1), amended subsec.

(e) generally. Prior to amendment, subsec. (e) consisted of two

pars. relating to effect of continuing levy on salary and wages and

release and notice of release of levy.

Subsecs. (f), (g). Pub. L. 100-647, Sec. 6236(d), added subsecs.

(f) and (g). Former subsec. (f) redesignated (h).

Subsec. (h). Pub. L. 100-647, Sec. 6236(b)(2), (d), redesignated

subsec. (f) as (h) and added par. (3).

1984 - Subsec. (b). Pub. L. 98-369 substituted "subsection (e)"

for "subsection (d)(3)".

1982 - Subsec. (d). Pub. L. 97-248 inserted authority to levy

upon property other than salary or wages, substituted "person" for

"individual" wherever appearing, designated second sentence of

former par. (1) as par. (2) and in par. (2)(C) as so designated

substituted "certified or registered mail" for "mail", and

redesignated former par. (2) as (3) and former par. (3) as subsec.

(e).

Subsec. (e). Pub. L. 97-248 redesignated former subsec. (d)(3) as

(e). Former subsec. (e) redesignated (f).

Subsec. (f). Pub. L. 97-248 redesignated former subsec. (e) as

(f).

1976 - Subsec. (a). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck

out "or his delegate" after "Secretary" wherever appearing.

Subsec. (b). Pub. L. 94-455, Secs. 1209(d)(2), 1906(b)(13)(A),

substituted in second sentence "Except as otherwise provided in

subsection (d)(3), a levy" for "A levy" and struck out "or his

delegate" after "Secretary".

Subsec. (c). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck out "or

his delegate" after "Secretary".

Subsec. (d)(1). Pub. L. 94-455, Secs. 1209(d)(4), 1906(b)(13)(A),

struck out provision that no additional notice shall be required in

the case of successive levies with respect to such tax and "or his

delegate" after "Secretary".

Subsec. (d)(2). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck out

"or his delegate" after "Secretary".

Subsec. (d)(3). Pub. L. 94-455, Sec. 1209(d)(1), added par. (3).

1971 - Subsecs. (d), (e). Pub. L. 92-178 added subsec. (d) and

redesignated former subsec. (d) as (e).

1966 - Subsec. (b). Pub. L. 89-719 inserted sentence providing

that a levy shall extend only to property possessed and obligations

existing at the time thereof.

EFFECTIVE DATE OF 2002 AMENDMENT

Pub. L. 107-147, title IV, Sec. 416(e)(2), Mar. 9, 2002, 116

Stat. 55, provided that: "The amendment made by this subsection

[amending this section] shall take effect on the date of the

enactment of this Act [Mar. 9, 2002]."

EFFECTIVE DATE OF 1998 AMENDMENT

Pub. L. 105-206, title III, Sec. 3433(b), July 22, 1998, 112

Stat. 760, provided that: "The amendment made by this section

[amending this section] shall apply to unpaid tax attributable to

taxable periods beginning after December 31, 1998."

Pub. L. 105-206, title III, Sec. 3444(b), July 22, 1998, 112

Stat. 762, provided that: "The amendments made by this section

[amending this section] shall take effect on the date of the

enactment of this Act [July 22, 1998]."

Pub. L. 105-206, title III, Sec. 3462(e), July 22, 1998, 112

Stat. 766, provided that:

"(1) In general. - The amendments made by this section [amending

this section and sections 6159 and 7122 of this title] shall apply

to proposed offers-in-compromise and installment agreements

submitted after the date of the enactment of this Act [July 22,

1998].

"(2) Suspension of collection by levy. - The amendment made by

subsection (b) [amending this section] shall apply to

offers-in-compromise pending on or made after December 31, 1999."

Amendment by section 6010(f) of Pub. L. 105-206 effective, except

as otherwise provided, as if included in the provisions of the

Taxpayer Relief Act of 1997, Pub. L. 105-34, to which such

amendment relates, see section 6024 of Pub. L. 105-206, set out as

a note under section 1 of this title.

EFFECTIVE DATE OF 1997 AMENDMENT

Section 1024(b) of Pub. L. 105-34 provided that: "The amendment

made by subsection (a) [amending this section] shall apply to

levies issued after the date of the enactment of this Act [Aug. 5,

1997]."

EFFECTIVE DATE OF 1988 AMENDMENT

Section 6236(h) of Pub. L. 100-647 provided that:

"(1) In general. - The amendments made by this section (other

than subsection (g)) [amending this section and sections 6332,

6334, and 6343 of this title] shall apply to levies issued on or

after July 1, 1989.

"(2) Subsection (g). - The amendment made by subsection (g)

[amending section 6335 of this title] shall apply to requests made

on or after January 1, 1989."

EFFECTIVE DATE OF 1984 AMENDMENT

Amendment by Pub. L. 98-369 effective as if included in the

provision of the Tax Equity and Fiscal Responsibility Act of 1982,

Pub. L. 97-248, to which such amendment relates, see section 715 of

Pub. L. 98-369, set out as a note under section 31 of this title.

EFFECTIVE DATE OF 1982 AMENDMENT

Section 349(b) of Pub. L. 97-248 provided that: "The amendment

made by subsection (a) [amending this section] shall apply to

levies made after December 31, 1982."

EFFECTIVE DATE OF 1976 AMENDMENT

Amendment by section 1209(d)(1), (2), (4) of Pub. L. 94-455

effective only with respect to levies made after Feb. 28, 1977, see

section 1209(e) of Pub. L. 94-455 as amended by section 2(c) of

Pub. L. 94-528, Oct. 17, 1976, 90 Stat. 2483, set out as a note

under section 6334 of this title.

EFFECTIVE DATE OF 1971 AMENDMENT

Section 211(b) of Pub. L. 92-178 provided that: "The amendments

made by this section [amending this section] shall apply with

respect to levies made after March 31, 1972."

EFFECTIVE DATE OF 1966 AMENDMENT

Amendment by Pub. L. 89-719 applicable after Nov. 2, 1966,

regardless of when title or lien of United States arose or when

lien or interest of another person was acquired, with certain

exceptions, see section 114(a)-(c) of Pub. L. 89-719, set out as a

note under section 6323 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 72, 6330, 6332, 6334,

6335, 6651, 6656, 6851, 6861, 6862, 7206, 7421, 7429 of this title.

-End-

-CITE-

26 USC Sec. 6332 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 64 - COLLECTION

Subchapter D - Seizure of Property for Collection of Taxes

PART II - LEVY

-HEAD-

Sec. 6332. Surrender of property subject to levy

-STATUTE-

(a) Requirement

Except 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 general

A 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 levy

Such 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 proceedings

The 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 banks

Any 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 liability

Any 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 violation

In 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 levy

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 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 defined

The 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.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 784; Pub. L. 89-719, title I,

Sec. 104(b), Nov. 2, 1966, 80 Stat. 1135; Pub. L. 93-625, Sec.

7(a)(2)(D), Jan. 3, 1975, 88 Stat. 2115; Pub. L. 94-455, title XII,

Sec. 1209(d)(3), title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90

Stat. 1710, 1834; Pub. L. 99-514, title XV, Sec. 1511(c)(9), Oct.

22, 1986, 100 Stat. 2745; Pub. L. 100-647, title I, Sec.

1015(t)(1), title VI, Sec. 6236(e), Nov. 10, 1988, 102 Stat. 3573,

3739; Pub. L. 101-508, title XI, Sec. 11704(a)(27), Nov. 5, 1990,

104 Stat. 1388-519.)

-MISC1-

AMENDMENTS

1990 - Subsec. (a). Pub. L. 101-508 substituted "this section"

for "subsections (b) and (c)".

1988 - Subsec. (a). Pub. L. 100-647, Sec. 6236(e)(2)(A),

substituted "subsections (b) and (c)" for "subsection (b)".

Subsec. (c). Pub. L. 100-647, Sec. 6236(e)(1), added subsec. (c).

Former subsec. (c) redesignated (d).

Subsec. (d). Pub. L. 100-647, Sec. 6236(e)(1), redesignated

subsec. (c) as (d). Former subsec. (d) redesignated (e).

Pub. L. 100-647, Sec. 1015(t)(1), inserted "and any other person"

after "delinquent taxpayer" and struck out sentence at end

providing that in the case of a levy which is satisfied pursuant to

subsection (b), such organization shall also be discharged from any

obligation or liability to any beneficiary arising from such

surrender or payment.

Subsec. (e). Pub. L. 100-647, Sec. 6236(e)(1), (2)(B),

redesignated subsec. (d) as (e) and substituted "subsection (d)(1)"

for "subsection (c)(1)". Former subsec. (e) redesignated (f).

Subsec. (f). Pub. L. 100-647, Sec. 6236(e)(1), redesignated

subsec. (e) as (f).

1986 - Subsec. (c)(1). Pub. L. 99-514 substituted "the

underpayment rate established under section 6621" for "an annual

rate established under section 6621".

1976 - Subsecs. (a), (b). Pub. L. 94-455, Sec. 1906(b)(13)(A),

struck out "or his delegate" after "Secretary" wherever appearing.

Subsec. (c)(1). Pub. L. 94-455, Secs. 1209(d)(3), 1906(b)(13)(A),

inserted "(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)" after "date of

such levy", and struck out "or his delegate" after "Secretary".

Subsec. (d). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck out "or

his delegate" after "Secretary".

1975 - Subsec. (c)(1). Pub. L. 93-625 substituted "an annual rate

established under section 6621" for "the rate of 6 percent per

annum".

1966 - Subsec. (a). Pub. L. 89-719, Sec. 104(b)(1), substituted

"Except as otherwise provided in subsection (b), any person" for

"Any person".

Subsec. (b). Pub. L. 89-719, Sec. 104(b)(2), added subsec. (b).

Former subsec. (b) redesignated, with amendments, as subsec.

(c)(1).

Subsec. (c). Pub. L. 89-719, Sec. 104(b)(2)-(4), redesignated as

par. (1) provisions formerly set out as subsec. (b), inserted

provisions that any amount other than costs recovered under par.

(1) shall be credited against the tax liability for the collection

of which the levy was made, and added par. (2). Former subsec. (c)

redesignated (e).

Subsec. (d). Pub. L. 89-719, Sec. 104(b)(4), added subsec. (d).

Subsec. (e). Pub. L. 89-719, Sec. 104(b)(3), redesignated former

subsec. (c) as (e).

EFFECTIVE DATE OF 1988 AMENDMENT

Section 1015(t)(2) of Pub. L. 100-647 provided that: "The

amendment made by this subsection [amending this section] shall

apply to levies issued after the date of the enactment of this Act

[Nov. 10, 1988]."

Amendment by section 6236(e) of Pub. L. 100-647 applicable to

levies issued on or after July 1, 1989, see section 6236(h)(1) of

Pub. L. 100-647, set out as a note under section 6331 of this

title.

EFFECTIVE DATE OF 1986 AMENDMENT

Amendment by Pub. L. 99-514 applicable for purposes of

determining interest for periods after Dec. 31, 1986, see section

1511(d) of Pub. L. 99-514, set out as a note under section 47 of

this title.

EFFECTIVE DATE OF 1976 AMENDMENT

Amendment by section 1209(d)(3) of Pub. L. 94-455 effective only

with respect to levies made after Feb. 28, 1977, see section

1209(e) of Pub. L. 94-455, as amended by section 2(c) of Pub. L.

94-528, Oct. 17, 1976, 90 Stat. 2483, set out as a note under

section 6334 of this title.

EFFECTIVE DATE OF 1975 AMENDMENT

Amendment by Pub. L. 93-625 effective July 1, 1975, and

applicable to amounts outstanding on such date or arising

thereafter, see section 7(e) of Pub. L. 93-625, set out as an

Effective Date note under section 6621 of this title.

EFFECTIVE DATE OF 1966 AMENDMENT

Amendment by Pub. L. 89-719 applicable after Nov. 2, 1966,

regardless of when title or lien of United States arose or when

lien or interest of another person was acquired, with certain

exceptions, see section 114(a)-(c) of Pub. L. 89-719, set out as a

note under section 6323 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 6323, 6342 of this title;

title 29 section 1368; title 30 section 934.

-End-

-CITE-

26 USC Sec. 6333 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 64 - COLLECTION

Subchapter D - Seizure of Property for Collection of Taxes

PART II - LEVY

-HEAD-

Sec. 6333. Production of books

-STATUTE-

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.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 784; Pub. L. 94-455, title XIX,

Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.)

-MISC1-

AMENDMENTS

1976 - Pub. L. 94-455 struck out "or his delegate" after

"Secretary" wherever appearing.

-End-

-CITE-

26 USC Sec. 6334 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 64 - COLLECTION

Subchapter D - Seizure of Property for Collection of Taxes

PART II - LEVY

-HEAD-

Sec. 6334. Property exempt from levy

-STATUTE-

(a) Enumeration

There shall be exempt from levy -

(1) Wearing apparel and school books

Such 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 effects

So 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 profession

So 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 benefits

Any 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 mail

Mail, addressed to any person, which has not been delivered to

the addressee.

(6) Certain annuity and pension payments

Annuity 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 compensation

Any 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 children

If 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 income

Any 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 payments

Any 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,,(!1) 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 payments

Any 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 Act

Any 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 cases

If 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 assets

Except 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) Appraisal

The 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 exempt

Notwithstanding 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 basis

In 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 amount

For 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 weekly

In 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.

(e) Levy allowed on principal residences and certain business

assets in certain circumstances

(1) Principal residences

(A) Approval required

A 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) Jurisdiction

The district courts of the United States shall have exclusive

jurisdiction to approve a levy under subparagraph (A).

(2) Certain business assets

Property (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 payments

Any 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 general

In 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 1992" in subparagraph (B) thereof.

(2) Rounding

If 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.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 784; Pub. L. 85-840, title IV,

Sec. 406, Aug. 28, 1958, 72 Stat. 1047; Pub. L. 89-44, title VIII,

Sec. 812(a), June 21, 1965, 79 Stat. 170; Pub. L. 89-719, title I,

Sec. 104(c), Nov. 2, 1966, 80 Stat. 1137; Pub. L. 91-172, title IX,

Sec. 945(a), Dec. 30, 1969, 83 Stat. 729; Pub. L. 94-455, title

XII, Sec. 1209(a)-(c), title XIX, Sec. 1906(b)(13)(A), Oct. 4,

1976, 90 Stat. 1709, 1710, 1834; Pub. L. 97-248, title III, Sec.

347(a), Sept. 3, 1982, 96 Stat. 638; Pub. L. 98-369, div. B, title

VI, Sec. 2661(o)(5), July 18, 1984, 98 Stat. 1159; Pub. L. 99-514,

title XV, Sec. 1565(a), Oct. 22, 1986, 100 Stat. 2763; Pub. L.

100-647, title I, Sec. 1015(o), title VI, Sec. 6236(c), Nov. 10,

1988, 102 Stat. 3572, 3738; Pub. L. 102-83, Sec. 5(c)(2), Aug. 6,

1991, 105 Stat. 406; Pub. L. 104-168, title V, Sec. 502(a)-(c),

July 30, 1996, 110 Stat. 1461; Pub. L. 104-193, title I, Sec.

110(l)(3), formerly Sec. 110(l)(6), Aug. 22, 1996, 110 Stat. 2173,

renumbered and amended Pub. L. 105-33, title V, Sec. 5514(a)(2),

(3), Aug. 5, 1997, 111 Stat. 620; Pub. L. 105-34, title III, Sec.

312(d)(1), title X, Sec. 1025(a), Aug. 5, 1997, 111 Stat. 839, 924;

Pub. L. 105-206, title III, Secs. 3431(a)-(c), 3445(a), (b), July

22, 1998, 112 Stat. 758, 762, 763.)

-STATAMEND-

ADJUSTMENT OF APPLICABLE DOLLAR VALUE AMOUNTS FOR PROPERTY EXEMPT

FROM LEVY FOR CALENDAR YEAR 2003

For adjustment of applicable dollar value amounts under

subsection (a)(2), (3) of this section for property exempt from

levy for calendar year 2003, see section 3.30 of Revenue Procedure

2002-70, set out as a note under section 1 of this title.

-REFTEXT-

REFERENCES IN TEXT

The Railroad Retirement Act, referred to in subsec. (a)(6), is

act Aug. 29, 1935, ch. 812, as amended generally by Pub. L. 93-445,

title I, Sec. 101, Oct. 16, 1974, 88 Stat. 1305, known as the

Railroad Retirement Act of 1974, which is classified generally to

subchapter IV (Sec. 231 et seq.) of chapter 9 of Title 45,

Railroads. For further details and complete classification of this

Act to the Code, see Codification note set out preceding section

231 of Title 45, section 231t of Title 45, and Tables.

The Railroad Unemployment Insurance Act, referred to in subsec.

(a)(6), is act June 25, 1938, ch. 680, 52 Stat. 1094, as amended,

which is classified principally to chapter 11 (Sec. 351 et seq.) of

Title 45. For complete classification of this Act to the Code, see

section 367 of Title 45 and Tables.

The Social Security Act, referred to in subsecs. (a)(11)(A) and

(c), is act Aug. 14, 1935, ch. 531, 49 Stat. 620, as amended.

Titles IV and XVI of the Social Security Act are classified

generally to subchapters IV (Sec. 601 et seq.) and XVI (Sec. 1381

et seq.), respectively, of chapter 7 of Title 42, The Public Health

and Welfare. Section 207 of the Social Security Act is classified

to section 407 of Title 42. For complete classification of this Act

to the Code, see section 1305 of Title 42 and Tables.

The Job Training Partnership Act, referred to in subsec. (a)(12),

is Pub. L. 97-300, Oct. 13, 1982, 96 Stat. 1322, as amended, which

was classified generally to chapter 19 (Sec. 1501 et seq.) of Title

29, Labor, and was repealed by Pub. L. 105-220, title I, Sec.

199(b)(2), (c)(2)(B), Aug. 7, 1998, 112 Stat. 1059, effective July

1, 2000. Pursuant to section 2940(b) of Title 29, references to a

provision of the Job Training Partnership Act, effective Aug. 7,

1998, are deemed to refer to that provision or the corresponding

provision of the Workforce Investment Act of 1998, Pub. L. 105-220,

Aug. 7, 1998, 112 Stat. 936, and effective July 1, 2000, are deemed

to refer to the corresponding provision of the Workforce Investment

Act of 1998. For complete classification of the Job Training

Partnership Act to the Code, see Tables. For complete

classification of the Workforce Investment Act of 1998 to the Code,

see Short Title note set out under section 9201 of Title 20,

Education, and Tables.

-MISC1-

AMENDMENTS

1998 - Subsec. (a)(2). Pub. L. 105-206, Sec. 3431(a), substituted

"$6,250" for "$2,500".

Subsec. (a)(3). Pub. L. 105-206, Sec. 3431(b), substituted

"$3,125" for "$1,250".

Subsec. (a)(13). Pub. L. 105-206, Sec. 3445(a), amended heading

and text of par. (13) generally. Prior to amendment, text read as

follows: "Except to the extent provided in subsection (e), the

principal residence of the taxpayer (within the meaning of section

121)."

Subsec. (e). Pub. L. 105-206, Sec. 3445(b), amended heading and

text of subsec. (e) generally. Prior to amendment, text read as

follows: "Property described in subsection (a)(13) shall not be

exempt from levy if -

"(1) a district director or assistant district director of the

Internal Revenue Service personally approves (in writing) the

levy of such property, or

"(2) the Secretary finds that the collection of tax is in

jeopardy."

Subsec. (g)(1). Pub. L. 105-206, Sec. 3431(c)(1), substituted

"1999" for "1997" in introductory provisions.

Subsec. (g)(1)(B). Pub. L. 105-206, Sec. 3431(c)(2), substituted

"1998" for "1996".

1997 - Subsec. (a)(11)(A). Pub. L. 105-33, Sec. 5514(a)(3), made

technical amendment to directory language of Pub. L. 104-193, Sec.

110(l)(3). See 1996 Amendment note below.

Subsec. (a)(13). Pub. L. 105-34, Sec. 312(d)(1), substituted

"section 121" for "section 1034".

Subsecs. (f), (g). Pub. L. 105-34 added subsec. (f) and

redesignated former subsec. (f) as (g).

1996 - Subsec. (a)(2). Pub. L. 104-168, Sec. 502(a), substituted

"So" for "If the taxpayer is the head of a family, so", "the

taxpayer's household" for "his household", and "$2,500" for "$1,650

($1,550 in the case of levies issued during 1989)".

Subsec. (a)(3). Pub. L. 104-168, Sec. 502(b), substituted

"$1,250" for "$1,100 ($1,050 in the case of levies issued during

1989)".

Subsec. (a)(11)(A). Pub. L. 104-193, Sec. 110(l)(3), formerly

Sec. 110(l)(6), as renumbered and amended by Pub. L. 105-33, struck

out "(relating to aid to families with dependent children)" after

"title IV".

Subsec. (f). Pub. L. 104-168, Sec. 502(c), added subsec. (f).

1991 - Subsec. (a)(6). Pub. L. 102-83 substituted "1562" for

"562".

1988 - Subsec. (a)(2). Pub. L. 100-647, Sec. 6236(c)(1),

substituted "$1,650 ($1,550 in the case of levies issued during

1989)" for "$1,500".

Subsec. (a)(3). Pub. L. 100-647, Sec. 6236(c)(2), substituted

"$1,100 ($1,050 in the case of levies issued during 1989)" for

"$1,000".

Subsec. (a)(10)(A). Pub. L. 100-647, Sec. 1015(o)(1), substituted

"III, IV, V," for "IV" and added "or" at end.

Subsec. (a)(10)(B), (C). Pub. L. 100-647, Sec. 1015(o)(2), (3),

redesignated subpar. (C) as (B) and substituted "13, 21, 23" for

"21", and struck out former subpar. (B), which read as follows:

"subchapter I, II, or III of chapter 19 of such title 38, or".

Subsec. (a)(11) to (13). Pub. L. 100-647, Sec. 6236(c)(4)(A),

added pars. (11) to (13).

Subsec. (d)(1). Pub. L. 100-647, Sec. 6236(c)(3)(A), amended par.

(1) generally, striking out after introductory provisions the

following definition of exempt amount:

"(A) $75, plus

"(B) $25 for each individual who is specified in a written

statement which is submitted to the person on whom notice of levy

is served and which is verified in such manner as the Secretary

shall prescribe by regulations and -

"(i) over half of whose support for the payroll period was

received from the taxpayer,

"(ii) who is the spouse of the taxpayer, or who bears a

relationship to the taxpayer specified in paragraphs (1)

through (9) of section 152(a) (relating to definition of

dependents), and

"(iii) who is not a minor child of the taxpayer with respect

to whom amounts are exempt from levy under subsection (a)(8)

for the payroll period.

For purposes of subparagraph (B)(ii) of the preceding sentence,

'payroll period' shall be substituted for 'taxable year' each

place it appears in paragraph (9) of section 152(a)."

Subsec. (d)(2), (3). Pub. L. 100-647, Sec. 6236(c)(3)(B), added

par. (2) and redesignated former par. (2) as (3).

Subsec. (e). Pub. L. 100-647, Sec. 6236(c)(4)(B), added subsec.

(e).

1986 - Subsec. (a)(10). Pub. L. 99-514 added par. (10).

1984 - Subsec. (c). Pub. L. 98-369 inserted "(including section

207 of the Social Security Act)".

1982 - Subsec. (a)(2). Pub. L. 97-248, Sec. 347(a)(1),

substituted "$1,500" for "$500".

Subsec. (a)(3). Pub. L. 97-248, Sec. 347(a)(2), substituted

"$1,000" for "$250".

Subsec. (d)(1)(A). Pub. L. 97-248, Sec. 347(a)(3)(A), substituted

"$75" for "$50".

Subsec. (d)(1)(B). Pub. L. 97-248, Sec. 347(a)(3)(B), substituted

"$25" for "$15".

1976 - Subsec. (a)(8). Pub. L. 94-455, Sec. 1209(c), substituted

"Judgments for support of minor children" for "Salary, wages, or

other income" in heading.

Subsec. (a)(9). Pub. L. 94-455, Sec. 1209(a), added par. (9).

Subsec. (b). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck out "or

his delegate" after "Secretary".

Subsec. (d). Pub. L. 94-455, Sec. 1209(b), added subsec. (d).

1969 - Subsec. (a)(8). Pub. L. 91-172 added par. (8).

1966 - Subsec. (a)(4). Pub. L. 89-719, Sec. 104(c)(1), struck out

"or Territory" after "of any State".

Subsec. (a)(6), (7). Pub. L. 89-719, Sec. 104(c)(2), added pars.

(6) and (7).

1965 - Subsec. (a)(5). Pub. L. 89-44 added par. (5).

1958 - Subsec. (a)(4). Pub. L. 85-840 added par. (4).

-CHANGE-

CHANGE OF NAME

Reference to United States magistrate or to magistrate deemed to

refer to United States magistrate judge pursuant to section 321 of

Pub. L. 101-650, set out as a note under section 631 of Title 28,

Judiciary and Judicial Procedure.

-MISC2-

EFFECTIVE DATE OF 1998 AMENDMENT

Pub. L. 105-206, title III, Sec. 3431(d), July 22, 1998, 112

Stat. 758, provided that: "The amendments made by this section

[amending this section] shall take effect with respect to levies

issued after the date of the enactment of this Act [July 22,

1998]."

Pub. L. 105-206, title III, Sec. 3445(d), July 22, 1998, 112

Stat. 763, provided that: "The amendments made by this section

[amending this section] shall take effect on the date of the

enactment of this Act [July 22, 1998]."

EFFECTIVE DATE OF 1997 AMENDMENTS

Amendment by section 312(d)(1) of Pub. L. 105-34 applicable to

sales and exchanges after May 6, 1997, with certain exceptions, see

section 312(d) of Pub. L. 105-34, set out as a note under section

121 of this title.

Section 1025(b) of Pub. L. 105-34 provided that: "The amendment

made by subsection (a) [amending this section] shall apply to

levies issued after the date of the enactment of this Act [Aug. 5,

1997]."

Amendment by Pub. L. 105-33 effective as if included in section

110 of the Personal Responsibility and Work Opportunity

Reconciliation Act of 1996, Pub. L. 104-193, at the time such

section 110 became law, see section 5518(c) of Pub. L. 105-33, set

out as a note under section 51 of this title.

EFFECTIVE DATE OF 1996 AMENDMENTS

Amendment by section 110(l)(3) of Pub. L. 104-193 effective July

1, 1997, with transition rules relating to State options to

accelerate such date, rules relating to claims, actions, and

proceedings commenced before such date, rules relating to closing

out of accounts for terminated or substantially modified programs

and continuance in office of Assistant Secretary for Family

Support, and provisions relating to termination of entitlement

under AFDC program, see section 116 of Pub. L. 104-193, as amended,

set out as an Effective Date note under section 601 of Title 42,

The Public Health and Welfare.

Section 502(d) of Pub. L. 104-168 provided that: "The amendments

made by this section [amending this section] shall take effect with

respect to levies issued after December 31, 1996."

EFFECTIVE DATE OF 1988 AMENDMENT

Section 1015(o) of Pub. L. 100-647 provided that the amendment

made by that section is effective with respect to levies made after

Dec. 31, 1988.

Amendment by section 6236(c) of Pub. L. 100-647 applicable to

levies issued on or after July 1, 1989, see section 6236(h)(1) of

Pub. L. 100-647, set out as a note under section 6331 of this

title.

EFFECTIVE DATE OF 1986 AMENDMENT

Section 1565(b) of Pub. L. 99-514 provided that: "The amendment

made by this section [amending this section] shall apply to amounts

payable after December 31, 1986."

EFFECTIVE DATE OF 1984 AMENDMENT

Amendment by Pub. L. 98-369 effective as though included in the

enactment of the Social Security Amendments of 1983, Pub. L. 98-21,

see section 2664(a) of Pub. L. 98-369, set out as a note under

section 401 of Title 42, The Public Health and Welfare.

EFFECTIVE DATE OF 1982 AMENDMENT

Section 347(b) of Pub. L. 97-248 provided that: "The amendments

made by subsection (a) [amending this section] shall apply to

levies made after December 31, 1982."

EFFECTIVE DATE OF 1976 AMENDMENT

Section 1209(e) of Pub. L. 94-455, as amended by Pub. L. 94-528,

Sec. 2(c), Oct. 17, 1976, 90 Stat. 2483, provided that: "The

amendments made by this section [amending this section and sections

6331 and 6332 of this title] shall apply only with respect to

levies made after February 28, 1977."

EFFECTIVE DATE OF 1969 AMENDMENT

Section 945(b) of Pub. L. 91-172 provided that: "The amendment

made by subsection (a) [amending this section] shall apply with

respect to levies made 30 days or more after the date of the

enactment of this Act [Dec. 30, 1969]."

EFFECTIVE DATE OF 1966 AMENDMENT

Amendment by Pub. L. 89-719 applicable after Nov. 2, 1966,

regardless of when title or lien of United States arose or when

lien or interest of another person was acquired, with certain

exceptions, see section 114(a)-(c) of Pub. L. 89-719, set out as a

note under section 6323 of this title.

EFFECTIVE DATE OF 1965 AMENDMENT

Section 812(b) of Pub. L. 89-44 provided that: "The amendment

made by subsection (a) [amending this section] shall take effect on

the date of the enactment of this Act [June 21, 1965]."

-TRANS-

TRANSFER OF FUNCTIONS

For transfer of authorities, functions, personnel, and assets of

the Coast Guard, including the authorities and functions of the

Secretary of Transportation relating thereto, to the Department of

Homeland Security, and for treatment of related references, see

sections 468(b), 551(d), 552(d), and 557 of Title 6, Domestic

Security, and the Department of Homeland Security Reorganization

Plan of November 25, 2002, as modified, set out as a note under

section 542 of Title 6.

-MISC3-

STATE FISH AND WILDLIFE PERMITS

Pub. L. 105-206, title III, Sec. 3445(c), July 22, 1998, 112

Stat. 763, provided that:

"(1) In general. - With respect to permits issued by a State and

required under State law for the harvest of fish or wildlife in the

trade or business of an individual taxpayer, the term 'other

assets' as used in section 6334(e)(2) of the Internal Revenue Code

of 1986 shall include future income which may be derived by such

taxpayer from the commercial sale of fish or wildlife under such

permit.

"(2) Construction. - Paragraph (1) shall not be construed to

invalidate or in any way prejudice any assertion that the privilege

embodied in permits described in paragraph (1) is not property or a

right to property under the Internal Revenue Code of 1986."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 6305, 6323, 6331 of this

title; title 18 section 3613.

-FOOTNOTE-

(!1) So in original.

-End-

-CITE-

26 USC Sec. 6335 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 64 - COLLECTION

Subchapter D - Seizure of Property for Collection of Taxes

PART II - LEVY

-HEAD-

Sec. 6335. Sale of seized property

-STATUTE-

(a) Notice of seizure

As 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 sale

The 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 property

If 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 sale

The 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 price

Before 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 price

If, 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 cases

If 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 cases

If, 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 sale

The 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 bid

If 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 reference

For 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 days

The 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 decision

For restrictions on sale of seized property pending Tax Court

decision, see section 6863(b)(3).

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 785; Pub. L. 89-719, title I,

Sec. 104(d), Nov. 2, 1966, 80 Stat. 1137; Pub. L. 94-455, title

XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L.

99-514, title XV, Sec. 1570(a), Oct. 22, 1986, 100 Stat. 2764; Pub.

L. 100-647, title VI, Sec. 6236(g), Nov. 10, 1988, 102 Stat. 3740;

Pub. L. 105-206, title III, Sec. 3441(a), (b), July 22, 1998, 112

Stat. 761.)

-MISC1-

AMENDMENTS

1998 - Subsec. (e)(1)(A)(i). Pub. L. 105-206, Sec. 3441(a),

substituted "a minimum price below which such property shall not be

sold" for "a minimum price for which such property shall be sold".

Subsec. (e)(4). Pub. L. 105-206, Sec. 3441(b), added par. (4).

1988 - Subsecs. (f), (g). Pub. L. 100-647 added subsec. (f) and

redesignated former subsec. (f) as (g).

1986 - Subsec. (e)(1). Pub. L. 99-514 amended par. (1) generally.

Prior to amendment, par. (1) "Minimum price" read as follows:

"Before the sale the Secretary shall determine a minimum price for

which the property shall be sold, and if no person offers for such

property at the sale the amount of the minimum price, the property

shall be declared to be purchased at such price for the United

States; otherwise the property shall be declared to be sold to the

highest bidder. In determining the minimum price, the Secretary

shall take into account the expense of making the levy and sale."

1976 - Pub. L. 94-455 struck out "or his delegate" after

"Secretary" wherever appearing.

1966 - Subsec. (b). Pub. L. 89-719 inserted an alternative to the

publication of notice of sale to allow publication in a newspaper

generally circulated within the county in which the property is

seized even though the newspaper is not published in such county.

EFFECTIVE DATE OF 1998 AMENDMENT

Pub. L. 105-206, title III, Sec. 3441(c), July 22, 1998, 112

Stat. 761, provided that: "The amendments made by this section

[amending this section] shall apply to sales made after the date of

the enactment of this Act [July 22, 1998]."

EFFECTIVE DATE OF 1988 AMENDMENT

Amendment by Pub. L. 100-647 applicable to requests made on or

after Jan. 1, 1989, see section 6236(h)(2) of Pub. L. 100-647, set

out as a note under section 6331 of this title.

EFFECTIVE DATE OF 1986 AMENDMENT

Section 1570(b) of Pub. L. 99-514 provided that: "The amendment

made by subsection (a) [amending this section] shall apply to -

"(1) property seized after the date of the enactment of this

Act [Oct. 22, 1986], and

"(2) property seized on or before such date which is held by

the United States on such date."

EFFECTIVE DATE OF 1966 AMENDMENT

Amendment by Pub. L. 89-719 applicable after Nov. 2, 1966,

regardless of when title or lien of United States arose or when

lien or interest of another person was acquired, with certain

exceptions, see section 114(a)-(c) of Pub. L. 89-719, set out as a

note under section 6323 of this title.

UNIFORM ASSET DISPOSAL MECHANISM

Pub. L. 105-206, title III, Sec. 3443, July 22, 1998, 112 Stat.

762, provided that: "Not later than the date which is 2 years after

the date of the enactment of this Act [July 22, 1998], the

Secretary of the Treasury or the Secretary's delegate shall

implement a uniform asset disposal mechanism for sales under

section 6335 of the Internal Revenue Code of 1986. The mechanism

should be designed to remove any participation in such sales by

revenue officers of the Internal Revenue Service and should

consider the use of outsourcing."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 6331, 6337, 6338, 6339,

6340, 6343, 6502, 7426 of this title.

-End-

-CITE-

26 USC Sec. 6336 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 64 - COLLECTION

Subchapter D - Seizure of Property for Collection of Taxes

PART II - LEVY

-HEAD-

Sec. 6336. Sale of perishable goods

-STATUTE-

If the Secretary determines that any property seized is liable to

perish or become greatly reduced in price or value by keeping, or

that such property cannot be kept without great expense, he shall

appraise the value of such property and -

(1) Return to owner

If 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 sale

If 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.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 786; Pub. L. 94-455, title XIX,

Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.)

-MISC1-

AMENDMENTS

1976 - Pub. L. 94-455 struck out "or his delegate" after

"Secretary" wherever appearing.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 6335, 6863, 7103 of this

title.

-End-

-CITE-

26 USC Sec. 6337 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 64 - COLLECTION

Subchapter D - Seizure of Property for Collection of Taxes

PART II - LEVY

-HEAD-

Sec. 6337. Redemption of property

-STATUTE-

(a) Before sale

Any 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) Period

The 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) Price

Such 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) Record

When 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.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 787; Pub. L. 89-719, title I,

Sec. 104(e), Nov. 2, 1966, 80 Stat. 1137; Pub. L. 94-455, title

XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L.

97-248, title III, Sec. 349A(a), Sept. 3, 1982, 96 Stat. 639.)

-MISC1-

AMENDMENTS

1982 - Subsec. (b)(1). Pub. L. 97-248 substituted "180 days" for

"120 days".

1976 - Pub. L. 94-455 struck out "or his delegate" after

"Secretary" wherever appearing.

1966 - Subsec. (b)(1). Pub. L. 89-719 substituted "120 days" for

"1 year".

EFFECTIVE DATE OF 1982 AMENDMENT

Section 349A(b) of Pub. L. 97-248 provided that: "The amendment

made by subsection (a) [amending this section] shall apply with

respect to property sold after the date of the enactment of this

Act [Sept. 3, 1982]."

EFFECTIVE DATE OF 1966 AMENDMENT

Amendment by Pub. L. 89-719 applicable after Nov. 2, 1966,

regardless of when title or lien of United States arose or when

lien or interest of another person was acquired, with certain

exceptions, see section 114(a)-(c) of Pub. L. 89-719, set out as a

note under section 6323 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 6338 of this title.

-End-

-CITE-

26 USC Sec. 6338 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 64 - COLLECTION

Subchapter D - Seizure of Property for Collection of Taxes

PART II - LEVY

-HEAD-

Sec. 6338. Certificate of sale; deed of real property

-STATUTE-

(a) Certificate of sale

In 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 property

In 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 States

If 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.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 787; Pub. L. 85-866, title I,

Sec. 78, Sept. 2, 1958, 72 Stat. 1662; Pub. L. 89-719, title I,

Sec. 104(f), Nov. 2, 1966, 80 Stat. 1137; Pub. L. 94-455, title

XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.)

-MISC1-

AMENDMENTS

1976 - Pub. L. 94-455 struck out "or his delegate" after

"Secretary" wherever appearing.

1966 - Subsec. (c). Pub. L. 89-719 struck out provisions

requiring the endorsement of approval as to the form of the deed by

the United States Attorney for the district in which the property

is situated.

1958 - Subsec. (c). Pub. L. 85-866 struck out "district" before

"attorney".

EFFECTIVE DATE OF 1966 AMENDMENT

Amendment by Pub. L. 89-719 applicable after Nov. 2, 1966,

regardless of when title or lien of United States arose or when

lien or interest of another person was acquired, with certain

exceptions, see section 114(a)-(c) of Pub. L. 89-719, set out as a

note under section 6323 of this title.

EFFECTIVE DATE OF 1958 AMENDMENT

Amendment by Pub. L. 85-866 effective Aug. 17, 1954, see section

1(c)(2) of Pub. L. 85-866, set out as a note under section 165 of

this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 6339 of this title.

-End-

-CITE-

26 USC Sec. 6339 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 64 - COLLECTION

Subchapter D - Seizure of Property for Collection of Taxes

PART II - LEVY

-HEAD-

Sec. 6339. Legal effect of certificate of sale of personal property

and deed of real property

-STATUTE-

(a) Certificate of sale of property other than real property

In all cases of sale pursuant to section 6335 of property (other

than real property), the certificate of such sale -

(1) As evidence

Shall 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 conveyances

Shall 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 stock

If 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 receipts

If 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 vehicle

If 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 property

In the case of the sale of real property pursuant to section 6335

-

(1) Deed as evidence

The deed of sale given pursuant to section 6338 shall be prima

facie evidence of the facts therein stated; and

(2) Deed as conveyance of title

If 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 encumbrances

A 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).

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 788; Pub. L. 85-866, title I,

Sec. 79, Sept. 2, 1958, 72 Stat. 1662; Pub. L. 89-719, title I,

Sec. 104(g), Nov. 2, 1966, 80 Stat. 1137; Pub. L. 94-455, title

XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.)

-MISC1-

AMENDMENTS

1976 - Subsec. (b)(2). Pub. L. 94-455 struck out "or his

delegate" after "Secretary".

1966 - Subsecs. (c), (d). Pub. L. 89-719 added subsecs. (c) and

(d).

1958 - Subsec. (b)(2). Pub. L. 85-866 substituted "as" for "of"

after "Deed" in heading.

EFFECTIVE DATE OF 1966 AMENDMENT

Amendment by Pub. L. 89-719 applicable after Nov. 2, 1966,

regardless of when title or lien of United States arose or when

lien or interest of another person was acquired, with certain

exceptions, see section 114(a)-(c) of Pub. L. 89-719, set out as a

note under section 6323 of this title.

EFFECTIVE DATE OF 1958 AMENDMENT

Amendment by Pub. L. 85-866 effective Aug. 17, 1954, see section

1(c)(2) of Pub. L. 85-866, set out as a note under section 165 of

this title.

-End-

-CITE-

26 USC Sec. 6340 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 64 - COLLECTION

Subchapter D - Seizure of Property for Collection of Taxes

PART II - LEVY

-HEAD-

Sec. 6340. Records of sale

-STATUTE-

(a) Requirement

The 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 evidence

A 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 taxpayer

The 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.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 789; Pub. L. 94-455, title XIX,

Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 105-206,

title III, Sec. 3442(a), July 22, 1998, 112 Stat. 761.)

-MISC1-

AMENDMENTS

1998 - Subsec. (a). Pub. L. 105-206, Sec. 3442(a)(1), struck out

"real" after "sales of" and inserted "or certificate of sale of

personal property" after "deed".

Subsec. (c). Pub. L. 105-206, Sec. 3442(a)(2), added subsec. (c).

1976 - Pub. L. 94-455 struck out "or his delegate" after

"Secretary" wherever appearing.

EFFECTIVE DATE OF 1998 AMENDMENT

Pub. L. 105-206, title III, Sec. 3442(b), July 22, 1998, 112

Stat. 762, provided that: "The amendments made by this section

[amending this section] shall apply to seizures occurring after the

date of the enactment of this Act [July 22, 1998]."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 6337 of this title.

-End-

-CITE-

26 USC Sec. 6341 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 64 - COLLECTION

Subchapter D - Seizure of Property for Collection of Taxes

PART II - LEVY

-HEAD-

Sec. 6341. Expense of levy and sale

-STATUTE-

The Secretary shall determine the expenses to be allowed in all

cases of levy and sale.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 789; Pub. L. 94-455, title XIX,

Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.)

-MISC1-

AMENDMENTS

1976 - Pub. L. 94-455 struck out "or his delegate" after

"Secretary".

-End-

-CITE-

26 USC Sec. 6342 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 64 - COLLECTION

Subchapter D - Seizure of Property for Collection of Taxes

PART II - LEVY

-HEAD-

Sec. 6342. Application of proceeds of levy

-STATUTE-

(a) Collection of liability

Any money realized by proceedings under this subchapter (whether

by seizure, by surrender under section 6332 (except pursuant to

subsection (c)(2) (!1) 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 sale

First, against the expenses of the proceedings;

(2) Specific tax liability on seized property

If 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 taxpayer

The 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 proceeds

Any 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.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 789; Pub. L. 89-719, title I,

Sec. 104(h), Nov. 2, 1966, 80 Stat. 1137; Pub. L. 94-455, title

XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.)

-REFTEXT-

REFERENCES IN TEXT

Section 6332(c), referred to in subsec. (a), was redesignated

section 6332(d) by Pub. L. 100-647, title VI, Sec. 6236(e)(1), Nov.

10, 1988, 102 Stat. 3739.

The internal revenue law, referred to in subsec. (a)(2), is

classified generally to this title.

-MISC1-

AMENDMENTS

1976 - Pub. L. 94-455 struck out "or his delegate" after

"Secretary" wherever appearing.

1966 - Subsec. (a). Pub. L. 89-719 inserted in introductory

provisions, references to an exception in the case of surrender

under section 6332(c)(2) and to 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, struck out

"under this subchapter" after "proceedings" in par. (1), and

inserted "or the sale was conducted" after "levy was made" in par.

(3).

EFFECTIVE DATE OF 1966 AMENDMENT

Amendment by Pub. L. 89-719 applicable after Nov. 2, 1966,

regardless of when title or lien of United States arose or when

lien or interest of another person was acquired, with certain

exceptions, see section 114(a)-(c) of Pub. L. 89-719, set out as a

note under section 6323 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 6207 of this title.

-FOOTNOTE-

(!1) See References in Text note below.

-End-

-CITE-

26 USC Sec. 6343 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 64 - COLLECTION

Subchapter D - Seizure of Property for Collection of Taxes

PART II - LEVY

-HEAD-

Sec. 6343. Authority to release levy and return property

-STATUTE-

(a) Release of levy and notice of release

(1) In general

Under 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 property

In 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 levy

The release of levy on any property under paragraph (1) shall

not prevent any subsequent levy on such property.

(b) Return of property

If 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 9 months 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) Interest

Interest 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 cases

If -

(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 collectible

In 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.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 789; Pub. L. 89-719, title I,

Sec. 104(i), Nov. 2, 1966, 80 Stat. 1138; Pub. L. 94-455, title

XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L.

96-167, Sec. 4(a), Dec. 29, 1979, 93 Stat. 1275; Pub. L. 99-514,

title XV, Sec. 1511(c)(10), Oct. 22, 1986, 100 Stat. 2745; Pub. L.

100-647, title VI, Sec. 6236(f), Nov. 10, 1988, 102 Stat. 3740;

Pub. L. 104-168, title V, Sec. 501(b), July 30, 1996, 110 Stat.

1460; Pub. L. 105-206, title I, Sec. 1102(d)(1)(B), title III, Sec.

3432(a), July 22, 1998, 112 Stat. 704, 759.)

-MISC1-

AMENDMENTS

1998 - Subsec. (d)(2)(D). Pub. L. 105-206, Sec. 1102(d)(1)(B),

substituted "National Taxpayer Advocate" for "Taxpayer Advocate" in

two places.

Subsec. (e). Pub. L. 105-206, Sec. 3432(a), added subsec. (e).

1996 - Subsec. (d). Pub. L. 104-168 added subsec. (d).

1988 - Subsec. (a). Pub. L. 100-647 inserted "and notice of

release" after "levy" in heading and amended text generally. Prior

to amendment, text read as follows: "It shall be lawful for the

Secretary, under regulations prescribed by the Secretary, to

release the levy upon all or part of the property or rights to

property levied upon where the Secretary determines that such

action will facilitate the collection of the liability, but such

release shall not operate to prevent any subsequent levy."

1986 - Subsec. (c). Pub. L. 99-514 substituted "the overpayment

rate established under section 6621" for "an annual rate

established under section 6621".

1979 - Subsec. (c). Pub. L. 96-167 added subsec. (c).

1976 - Pub. L. 94-455 struck out "or his delegate" after

"Secretary" wherever appearing.

1966 - Pub. L. 89-719 inserted "and return property" in section

catchline, designated existing provisions as subsec. (a), and added

subsec. (b).

EFFECTIVE DATE OF 1998 AMENDMENT

Amendment by section 1102 of Pub. L. 105-206 effective July 22,

1998, see section 1102(f) of Pub. L. 105-206, set out as a note

under section 7803 of this title.

Pub. L. 105-206, title III, Sec. 3432(b), July 22, 1998, 112

Stat. 759, provided that: "The amendment made by this section

[amending this section] shall apply to levies imposed after

December 31, 1999."

EFFECTIVE DATE OF 1988 AMENDMENT

Amendment by Pub. L. 100-647 applicable to levies issued on or

after July 1, 1989, see section 6236(h)(1) of Pub. L. 100-647, set

out as a note under section 6331 of this title.

EFFECTIVE DATE OF 1986 AMENDMENT

Amendment by Pub. L. 99-514 applicable for purposes of

determining interest for periods after Dec. 31, 1986, see section

1511(d) of Pub. L. 99-514, set out as a note under section 47 of

this title.

EFFECTIVE DATE OF 1979 AMENDMENT

Section 4(c)(1) of Pub. L. 96-167 provided that: "The amendment

made by subsection (a) [amending this section] shall apply to

levies made after the date of the enactment of this Act [Dec. 29,

1979]."

EFFECTIVE DATE OF 1966 AMENDMENT

Amendment by Pub. L. 89-719 applicable after Nov. 2, 1966,

regardless of when title or lien of United States arose or when

lien or interest of another person was acquired, with certain

exceptions, see section 114(a)-(c) of Pub. L. 89-719, set out as a

note under section 6323 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 6331, 6502, 6503, 6532 of

this title.

-End-

-CITE-

26 USC Sec. 6344 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 64 - COLLECTION

Subchapter D - Seizure of Property for Collection of Taxes

PART II - LEVY

-HEAD-

Sec. 6344. Cross references

-STATUTE-

(a) Length of period

For 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 officers

For distraint proceedings against delinquent internal revenue

officers, see section 7804(c).

(c) Other references

For provisions relating to -

(1) Stamps, marks and brands, see section 6807.

(2) Administration of real estate acquired by the United

States, see section 7506.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 789; Pub. L. 91-172, title I,

Sec. 101(j)(45), Dec. 30, 1969, 83 Stat. 531; Pub. L. 93-406, title

II, Sec. 1016(a)(13), Sept. 2, 1974, 88 Stat. 930; Pub. L. 94-455,

title XIII, Sec. 1307(d)(2)(F)(v), title XVI, Sec. 1605(b)(8), Oct.

4, 1976, 90 Stat. 1728, 1755; Pub. L. 96-223, title I, Sec.

101(f)(1)(I), Apr. 2, 1980, 94 Stat. 252; Pub. L. 100-418, title I,

Sec. 1941(b)(2)(B)(ix), Aug. 23, 1988, 102 Stat. 1323; Pub. L.

105-206, title I, Sec. 1104(b)(1), July 22, 1998, 112 Stat. 710.)

-MISC1-

AMENDMENTS

1998 - Subsec. (b). Pub. L. 105-206 substituted "section 7804(c)"

for "section 7803(d)".

1988 - Subsec. (a)(1). Pub. L. 100-418 substituted "or 44" for

"44, or 45".

1980 - Subsec. (a)(1). Pub. L. 96-223 inserted reference to

chapter 45.

1976 - Subsec. (a)(1). Pub. L. 94-455 inserted reference to

chapters 41 and 44.

1974 - Subsec. (a)(1). Pub. L. 93-406 inserted reference to

chapter 43.

1969 - Subsec. (a)(1). Pub. L. 91-172 inserted reference to

chapter 42.

EFFECTIVE DATE OF 1988 AMENDMENT

Amendment by Pub. L. 100-418 applicable to crude oil removed from

the premises on or after Aug. 23, 1988, see section 1941(c) of Pub.

L. 100-418, set out as a note under section 164 of this title.

EFFECTIVE DATE OF 1980 AMENDMENT

Amendment by Pub. L. 96-223 applicable to periods after Feb. 29,

1980, see section 101(i) of Pub. L. 96-223, set out as a note under

section 6161 of this title.

EFFECTIVE DATE OF 1976 AMENDMENT

Amendment by section 1307(d)(2)(F)(v) of Pub. L. 94-455 effective

on and after Oct. 4, 1976, see section 1307(e) of Pub. L. 94-455,

set out as a note under section 501 of this title.

EFFECTIVE DATE OF 1974 AMENDMENT

Amendment by Pub. L. 93-406 applicable, except as otherwise

provided in section 1017(c) through (i) of Pub. L. 93-406, for plan

years beginning after Sept. 2, 1974, but, in the case of plans in

existence on Jan. 1, 1974, amendment by Pub. L. 93-406 applicable

for plan years beginning after Dec. 31, 1975, see section 1017 of

Pub. L. 93-406, set out as an Effective Date; Transitional Rules

note under section 410 of this title.

EFFECTIVE DATE OF 1969 AMENDMENT

Amendment by Pub. L. 91-172 effective Jan. 1, 1970, see section

101(k)(1) of Pub. L. 91-172, set out as an Effective Date note

under section 4940 of this title.

-End-

-CITE-

26 USC [Subchapter E - Repealed] 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 64 - COLLECTION

[Subchapter E - Repealed]

-HEAD-

[SUBCHAPTER E - REPEALED]

-End-

-CITE-

26 USC [Secs. 6361 to 6365 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 64 - COLLECTION

[Subchapter E - Repealed]

-HEAD-

[Secs. 6361 to 6365. Repealed. Pub. L. 101-508, title XI, Sec.

11801(a)(45), Nov. 5, 1990, 104 Stat. 1388-522]

-MISC1-

Section 6361, added Pub. L. 92-512, title II, Sec. 202(a), Oct.

20, 1972, 86 Stat. 936; amended Pub. L. 94-455, title XIX, Sec.

1906(b)(13)(A), title XXI, Sec. 2116(c), Oct. 4, 1976, 90 Stat.

1834, 1911, set forth general rules regarding collection of State

individual income taxes.

Section 6362, added Pub. L. 92-512, title II, Sec. 202(a), Oct.

20, 1972, 86 Stat. 938; amended Pub. L. 94-455, title XIX, Sec.

1906(b)(13)(A), title XXI, Sec. 2116(b), Oct. 4, 1976, 90 Stat.

1834, 1910; Pub. L. 95-473, Sec. 2(a)(2)(H), Oct. 17, 1978, 92

Stat. 1465; Pub. L. 95-600, title IV, Sec. 421(e)(8), Nov. 6, 1978,

92 Stat. 2877; Pub. L. 97-248, title II, Sec. 201(d)(7), formerly

Sec. 201(c)(7), Sept. 3, 1982, 96 Stat. 420, redesignated Pub. L.

97-448, title III, Sec. 306(a)(1)(A)(i), Jan. 12, 1983, 96 Stat.

2400; Pub. L. 97-354, Sec. 5(a)(41), Oct. 19, 1982, 96 Stat. 1696;

Pub. L. 97-424, title V, Sec. 547(b)(5), Jan. 6, 1983, 96 Stat.

2200; Pub. L. 98-369, div. A, title IV, Secs. 412(b)(6),

474(r)(35), title VII, Sec. 721(x)(5), July 18, 1984, 98 Stat. 792,

845, 972; Pub. L. 99-514, title XIII, Sec. 1301(j)(8), Oct. 22,

1986, 100 Stat. 2658, related to qualified State individual income

taxes.

Section 6363, added Pub. L. 92-512, title II, Sec. 202(a), Oct.

20, 1972, 86 Stat. 942; amended Pub. L. 94-455, title XIX, Sec.

1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 98-620, title

IV, Sec. 402(28)(C), Nov. 8, 1984, 98 Stat. 3359, related to State

agreements and other procedures.

Section 6364, added Pub. L. 92-512, title II, Sec. 202(a), Oct.

20, 1972, 86 Stat. 944; amended Pub. L. 94-455, title XIX, Sec.

1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834, authorized Secretary

to prescribe regulations for this subchapter.

Section 6365, added Pub. L. 92-512, title II, Sec. 202(a), Oct.

20, 1972, 86 Stat. 944; amended Pub. L. 94-455, title XIX, Sec.

1906(a)(21), Oct. 4, 1976, 90 Stat. 1826; Pub. L. 97-248, title

III, Secs. 307(a)(8), 308(a), Sept. 3, 1982, 96 Stat. 589, 591;

Pub. L. 98-67, title I, Sec. 102(a), Aug. 5, 1983, 97 Stat. 369,

set forth definitions and special rules for this subchapter.

SAVINGS PROVISION

For provisions that nothing in repeal by Pub. L. 101-508 be

construed to affect treatment of certain transactions occurring,

property acquired, or items of income, loss, deduction, or credit

taken into account prior to Nov. 5, 1990, for purposes of

determining liability for tax for periods ending after Nov. 5,

1990, see section 11821(b) of Pub. L. 101-508, set out as a note

under section 29 of this title.

-End-