---
kind: "range"
citation: "26 U.S.C. §§ 6331–6344"
title: "26"
from: "6331"
to: "6344"
count: 14
release: "119-102"
url: "https://uscodex.org/usc/26/6331..6344"
---

# §6331. Levy and distraint

- (a) **Authority of Secretary—** If any [person](/usc/26/7701.md?p=a-1) 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](/usc/26/7701.md?p=a-11-B) to collect such tax (and such further sum as shall be sufficient to cover the expenses of the [levy](/usc/26/7701.md?p=a-21)) by [levy](/usc/26/7701.md?p=a-21) upon all property and rights to property (except such property as is exempt under [section 6334](/usc/26/6334.md)) belonging to such [person](/usc/26/7701.md?p=a-1) or on which there is a lien provided in this chapter for the payment of such tax. [Levy](/usc/26/7701.md?p=a-21) may be made upon the accrued salary or [wages](/usc/26/7701.md?p=j-3) of any officer, [employee](/usc/26/101.md?p=i-3), or elected official, of the [United States](/usc/26/7651.md?p=1), the District of Columbia, or any agency or instrumentality of the [United States](/usc/26/7651.md?p=1) or the District of Columbia, by serving a notice of [levy](/usc/26/7701.md?p=a-21) on the employer (as defined in [section 3401(d)](/usc/26/3401.md?p=d)) of such officer, [employee](/usc/26/101.md?p=i-3), or elected official. If the [Secretary](/usc/26/7701.md?p=a-11-B) 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](/usc/26/7701.md?p=a-11-B) and, upon failure or refusal to pay such tax, collection thereof by [levy](/usc/26/7701.md?p=a-21) shall be lawful without regard to the 10-day period provided in this section.
- (b) **Seizure and sale of property—** The term “[levy](/usc/26/7701.md?p=a-21)” as used in this title [includes](/usc/26/7701.md?p=c) the power of distraint and seizure by any means. Except as otherwise provided in [subsection (e)](#e), a [levy](/usc/26/7701.md?p=a-21) shall extend only to property possessed and obligations existing at the time thereof. In any case in which the [Secretary](/usc/26/7701.md?p=a-11-B) may [levy](/usc/26/7701.md?p=a-21) 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](/usc/26/7701.md?p=a-21) has been made by virtue of [subsection (a)](#a) is not sufficient to satisfy the claim of the [United States](/usc/26/7651.md?p=1) for which [levy](/usc/26/7701.md?p=a-21) is made, the [Secretary](/usc/26/7701.md?p=a-11-B) may, thereafter, and as often as may be necessary, proceed to [levy](/usc/26/7701.md?p=a-21) in like manner upon any other property liable to [levy](/usc/26/7701.md?p=a-21) of the [person](/usc/26/7701.md?p=a-1) 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](/usc/26/7701.md?p=a-21) may be made under [subsection (a)](#a) upon the salary or [wages](/usc/26/7701.md?p=j-3) or other property of any [person](/usc/26/7701.md?p=a-1) with respect to any unpaid tax only after the [Secretary](/usc/26/7701.md?p=a-11-B) has notified such [person](/usc/26/7701.md?p=a-1) in writing of his intention to make such [levy](/usc/26/7701.md?p=a-21).
  - (2) **30-day requirement—** The notice required under [paragraph (1)](#d-1) shall be—
    - (A) given in [person](/usc/26/7701.md?p=a-1),
    - (B) left at the dwelling or usual place of business of such [person](/usc/26/7701.md?p=a-1), or
    - (C) sent by certified or registered mail to such [persons](/usc/26/7701.md?p=a-1)’s last known address,

    no less than 30 days before the day of the [levy](/usc/26/7701.md?p=a-21).

  - (3) **Jeopardy—** [Paragraph (1)](#d-1) shall not apply to a [levy](/usc/26/7701.md?p=a-21) if the [Secretary](/usc/26/7701.md?p=a-11-B) has made a finding under the last sentence of [subsection (a)](#a) that the collection of tax is in jeopardy.
  - (4) **Information included with notice—** The notice required under [paragraph (1)](#d-1) shall include a brief statement which sets forth in simple and nontechnical terms—
    - (A) the provisions of this title relating to [levy](/usc/26/7701.md?p=a-21) and sale of property,
    - (B) the procedures applicable to the [levy](/usc/26/7701.md?p=a-21) and sale of property under this title,
    - (C) the administrative appeals available to the [taxpayer](/usc/26/7701.md?p=a-14) with respect to such [levy](/usc/26/7701.md?p=a-21) and sale and the procedures relating to such appeals,
    - (D) the alternatives available to [taxpayers](/usc/26/7701.md?p=a-14) which could prevent [levy](/usc/26/7701.md?p=a-21) on the property ([including](/usc/26/7701.md?p=c) installment agreements under [section 6159](/usc/26/6159.md)),
    - (E) the provisions of this title relating to redemption of property and release of liens on property,
    - (F) the procedures applicable to the redemption of property and the release of a lien on property under this title, and
    - (G) the provisions of [section 7345](/usc/26/7345.md) relating to the certification of seriously delinquent tax debts and the denial, revocation, or limitation of passports of individuals with such debts pursuant to section 32101 of the FAST Act.
- (e) **Continuing levy on salary and wages—** The effect of a [levy](#b) on salary or [wages](/usc/26/7701.md?p=j-3) payable to or received by a [taxpayer](/usc/26/7701.md?p=a-14) shall be continuous from the date such [levy](#b) is first made until such [levy](#b) is released under [section 6343](/usc/26/6343.md).
- (f) **Uneconomical levy—** No [levy](/usc/26/7701.md?p=a-21) may be made on any property if the amount of the expenses which the [Secretary](/usc/26/7701.md?p=a-11-B) estimates (at the time of [levy](/usc/26/7701.md?p=a-21)) would be incurred by the [Secretary](/usc/26/7701.md?p=a-11-B) with respect to the [levy](/usc/26/7701.md?p=a-21) and sale of such property exceeds the fair market value of such property at the time of [levy](/usc/26/7701.md?p=a-21).
- (g) **Levy on appearance date of summons—**
  - (1) **In general—** No [levy](/usc/26/7701.md?p=a-21) may be made on the property of any [person](/usc/26/7701.md?p=a-1) on any day on which such [person](/usc/26/7701.md?p=a-1) (or [officer or employee](/usc/26/6103.md?p=a) of such [person](/usc/26/7701.md?p=a-1)) is required to appear in response to a summons issued by the [Secretary](/usc/26/7701.md?p=a-11-B) for the purpose of collecting any underpayment of tax.
  - (2) **No application in case of jeopardy—** This subsection shall not apply if the [Secretary](/usc/26/7701.md?p=a-11-B) finds that the collection of tax is in jeopardy.
- (h) **Continuing levy on certain payments—**
  - (1) **In general—** If the [Secretary](/usc/26/7701.md?p=a-11-B) approves a [levy](/usc/26/7701.md?p=a-21) under this subsection, the effect of such [levy](/usc/26/7701.md?p=a-21) on [specified payments](#h-2) to or received by a [taxpayer](/usc/26/7701.md?p=a-14) shall be continuous from the date such [levy](/usc/26/7701.md?p=a-21) is first made until such [levy](/usc/26/7701.md?p=a-21) is released. Notwithstanding [section 6334](/usc/26/6334.md), such continuous [levy](/usc/26/7701.md?p=a-21) shall attach to up to 15 percent of any [specified payment](#h-2) due to the [taxpayer](/usc/26/7701.md?p=a-14).
  - (2) **Specified payment—** For the purposes of [paragraph (1)](#h-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)](/usc/26/6334.md?p=a-4), [(7)](/usc/26/6334.md?p=a-7), [(9)](/usc/26/6334.md?p=a-9), or [(11)](/usc/26/6334.md?p=a-11) of section 6334(a), and
    - (C) any annuity or pension payment under the Railroad Retirement Act or benefit under the Railroad Unemployment Insurance Act.
  - (3) **Increase in levy for certain payments—** [Paragraph (1)](#h-1) shall be applied by substituting “100 percent” for “15 percent” in the case of any [specified payment](#h-2) due to a vendor of property, goods, or services sold or leased to the Federal Government and by substituting “100 percent” for “15 percent” in the case of any [specified payment](#h-2) due to a Medicare provider or supplier under title XVIII of the Social Security Act.
- (i) **No levy during pendency of proceedings for refund of divisible tax—**
  - (1) **In general—** No [levy](/usc/26/7701.md?p=a-21) may be made under [subsection (a)](#a) on the property or rights to property of any [person](/usc/26/7701.md?p=a-1) with respect to any unpaid [divisible tax](#i-2) during the pendency of any proceeding brought by such [person](/usc/26/7701.md?p=a-1) in a proper Federal trial court for the recovery of any portion of such [divisible tax](#i-2) which was paid by such [person](/usc/26/7701.md?p=a-1) if—
    - (A) the decision in such proceeding would be res judicata with respect to such unpaid tax; or
    - (B) such [person](/usc/26/7701.md?p=a-1) would be collaterally estopped from contesting such unpaid tax by reason of such proceeding.
  - (2) **Divisible tax—** For purposes of [paragraph (1)](#i-1), the term “divisible tax” means—
    - (A) any tax imposed by subtitle C; and
    - (B) the penalty imposed by [section 6672](/usc/26/6672.md) 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](/usc/26/7701.md?p=a-14) files a written notice with the [Secretary](/usc/26/7701.md?p=a-11-B) which waives the restriction imposed by this subsection on [levy](/usc/26/7701.md?p=a-21) with respect to such tax; or
      - (ii) the [Secretary](/usc/26/7701.md?p=a-11-B) finds that the collection of such tax is in jeopardy.
    - (B) **Certain levies—** This subsection shall not apply to—
      - (i) any [levy](/usc/26/7701.md?p=a-21) to carry out an offset under [section 6402](/usc/26/6402.md); and
      - (ii) any [levy](/usc/26/7701.md?p=a-21) 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)](#i-1) applies shall be begun by the [Secretary](/usc/26/7701.md?p=a-11-B) 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)](/usc/26/7421.md?p=a), a [levy](/usc/26/7701.md?p=a-21) 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)](#i-1) is brought.
  - (5) **Suspension of statute of limitations on collection—** The period of limitations under [section 6502](/usc/26/6502.md) shall be suspended for the period during which the [Secretary](/usc/26/7701.md?p=a-11-B) is prohibited under this subsection from making a [levy](/usc/26/7701.md?p=a-21).
  - (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](/usc/26/7701.md?p=a-21) may be made on any property or right to property which is to be sold under [section 6335](/usc/26/6335.md) until a thorough investigation of the status of such property has been completed.
  - (2) **Elements in investigation—** For purposes of [paragraph (1)](#j-1), an investigation of the status of any property shall include—
    - (A) a verification of the [taxpayer](/usc/26/7701.md?p=a-14)’s liability;
    - (B) the completion of an analysis under [subsection (f)](#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](/usc/26/7701.md?p=a-21) may be made under [subsection (a)](#a) on the property or rights to property of any [person](/usc/26/7701.md?p=a-1) with respect to any unpaid tax—
    - (A) during the period that an offer-in-compromise by such [person](/usc/26/7701.md?p=a-1) under [section 7122](/usc/26/7122.md) of such unpaid tax is pending with the [Secretary](/usc/26/7701.md?p=a-11-B); and
    - (B) if such offer is rejected by the [Secretary](/usc/26/7701.md?p=a-11-B), 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)](#k-1-A), an offer is pending beginning on the date the [Secretary](/usc/26/7701.md?p=a-11-B) accepts such offer for processing.

  - (2) **Installment agreements—** No [levy](/usc/26/7701.md?p=a-21) may be made under [subsection (a)](#a) on the property or rights to property of any [person](/usc/26/7701.md?p=a-1) with respect to any unpaid tax—
    - (A) during the period that an offer by such [person](/usc/26/7701.md?p=a-1) for an installment agreement under [section 6159](/usc/26/6159.md) for payment of such unpaid tax is pending with the [Secretary](/usc/26/7701.md?p=a-11-B);
    - (B) if such offer is rejected by the [Secretary](/usc/26/7701.md?p=a-11-B), 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](/usc/26/7701.md?p=a-11-B), 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)](#i-3) and [(4)](#i-4) of subsection (i), and
    - (B) except in the case of [paragraph (2)(C)](#k-2-C), [paragraph (5)](#i-5) of subsection (i),

    shall apply for purposes of this subsection.

- (l) **Cross references—**
  - (1) For provisions relating to jeopardy, see subchapter A of [chapter 70](/usc/26/chstF-ch70.md).
  - (2) For proceedings applicable to sale of seized property see [section 6335](/usc/26/6335.md).
  - (3) For release and notice of release of [levy](/usc/26/7701.md?p=a-21), see [section 6343](/usc/26/6343.md).

# §6332. Surrender of property subject to levy

- (a) **Requirement—** Except as otherwise provided in this section, any [person](#f) in possession of (or obligated with respect to) property or rights to property subject to [levy](/usc/26/7701.md?p=a-21) upon which a [levy](/usc/26/7701.md?p=a-21) has been made shall, upon demand of the [Secretary](/usc/26/7701.md?p=a-11-B), surrender such property or rights (or discharge such obligation) to the [Secretary](/usc/26/7701.md?p=a-11-B), 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](/usc/26/7701.md?p=a-21) on an organization with respect to a life insurance or [endowment contract](/usc/26/7702.md?p=h-2) issued by such organization shall, without necessity for the surrender of the contract document, constitute a demand by the [Secretary](/usc/26/7701.md?p=a-11-B) for payment of the amount described in [paragraph (2)](#b-2) and the exercise of the right of the [person](/usc/26/7701.md?p=a-1) 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](/usc/26/7701.md?p=a-21). Such notice shall include a certification by the [Secretary](/usc/26/7701.md?p=a-11-B) that a copy of such notice has been mailed to the [person](/usc/26/7701.md?p=a-1) against whom the tax is assessed at his last known address.
  - (2) **Satisfaction of levy—** Such [levy](/usc/26/7701.md?p=a-21) shall be deemed to be satisfied if such organization pays over to the [Secretary](/usc/26/7701.md?p=a-11-B) the amount which the [person](/usc/26/7701.md?p=a-1) against whom the tax is assessed could have had advanced to him by such organization on the date prescribed in [paragraph (1)](#b-1) for the satisfaction of such [levy](/usc/26/7701.md?p=a-21), increased by the amount of any advance ([including](/usc/26/7701.md?p=c) contractual interest thereon) made to such [person](/usc/26/7701.md?p=a-1) on or after the date such organization had actual notice or knowledge (within the meaning of [section 6323(i)(1)](/usc/26/6323.md?p=i-1)) of the existence of the lien with respect to which such [levy](/usc/26/7701.md?p=a-21) is made, other than an advance ([including](/usc/26/7701.md?p=c) 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](/usc/26/7701.md?p=a-21) under [paragraph (2)](#b-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)](/usc/26/408.md?p=n)) shall surrender (subject to an attachment or execution under judicial process) any deposits ([including](/usc/26/7701.md?p=c) interest thereon) in such bank only after 21 days after service of [levy](/usc/26/7701.md?p=a-21).
- (d) **Enforcement of levy—**
  - (1) **Extent of personal liability—** Any [person](/usc/26/7701.md?p=a-1) who fails or refuses to surrender any property or rights to property, subject to [levy](/usc/26/7701.md?p=a-21), upon demand by the [Secretary](/usc/26/7701.md?p=a-11-B), shall be liable in his own [person](/usc/26/7701.md?p=a-1) and estate to the [United States](/usc/26/7651.md?p=1) 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](/usc/26/7701.md?p=a-21) has been made, together with costs and interest on such sum at the underpayment rate established under [section 6621](/usc/26/6621.md) from the date of such [levy](/usc/26/7701.md?p=a-21) (or, in the case of a [levy](/usc/26/7701.md?p=a-21) described in [section 6331(d)(3)](/usc/26/6331.md?p=d-3), from the date such [person](/usc/26/7701.md?p=a-1) would otherwise have been obligated to pay over such amounts to the [taxpayer](/usc/26/7701.md?p=a-14)). Any amount (other than costs) recovered under this paragraph shall be credited against the tax liability for the collection of which such [levy](/usc/26/7701.md?p=a-21) was made.
  - (2) **Penalty for violation—** In addition to the personal liability imposed by [paragraph (1)](#d-1), if any [person](/usc/26/7701.md?p=a-1) required to surrender property or rights to property fails or refuses to surrender such property or rights to property without reasonable cause, such [person](/usc/26/7701.md?p=a-1) shall be liable for a penalty equal to 50 percent of the amount recoverable under [paragraph (1)](#d-1). No part of such penalty shall be credited against the tax liability for the collection of which such [levy](/usc/26/7701.md?p=a-21) was made.
- (e) **Effect of honoring levy—** Any [person](/usc/26/7701.md?p=a-1) in possession of (or obligated with respect to) property or rights to property subject to [levy](/usc/26/7701.md?p=a-21) upon which a [levy](/usc/26/7701.md?p=a-21) has been made who, upon demand by the [Secretary](/usc/26/7701.md?p=a-11-B), surrenders such property or rights to property (or discharges such obligation) to the [Secretary](/usc/26/7701.md?p=a-11-B) (or who pays a liability under [subsection (d)(1)](#d-1)) shall be discharged from any obligation or liability to the delinquent [taxpayer](/usc/26/7701.md?p=a-14) and any other [person](/usc/26/7701.md?p=a-1) with respect to such property or rights to property arising from such surrender or payment.
- (f) **Person defined—** The term “[person](/usc/26/7701.md?p=a-1),” as used in [subsection (a)](#a), [includes](/usc/26/7701.md?p=c) an [officer or employee](/usc/26/6103.md?p=a) of a [corporation](/usc/26/7701.md?p=a-3) or a member or [employee](/usc/26/101.md?p=i-3) of a [partnership](/usc/26/7701.md?p=a-2), who as such officer, [employee](/usc/26/101.md?p=i-3), or member is under a duty to surrender the property or rights to property, or to discharge the obligation.

# §6333. Production of books


If a [levy](/usc/26/7701.md?p=a-21) has been made or is about to be made on any property, or right to property, any [person](/usc/26/7701.md?p=a-1) having custody or [control](/usc/26/7701.md?p=a-51-G) of any books or records, containing evidence or statements relating to the property or right to property subject to [levy](/usc/26/7701.md?p=a-21), shall, upon demand of the [Secretary](/usc/26/7701.md?p=a-11-B), exhibit such books or records to the [Secretary](/usc/26/7701.md?p=a-11-B).


# §6334. Property exempt from levy

- (a) **Enumeration—** There shall be exempt from [levy](/usc/26/7701.md?p=a-21)—
  - (1) **Wearing apparel and school books—** Such items of wearing apparel and such school books as are necessary for the [taxpayer](/usc/26/7701.md?p=a-14) 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](/usc/26/7701.md?p=a-14)’s household, and of the arms for personal use, livestock, and poultry of the [taxpayer](/usc/26/7701.md?p=a-14), 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](/usc/26/7701.md?p=a-14) 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](/usc/26/7701.md?p=c) any portion thereof payable with respect to dependents) under an unemployment compensation law of the [United States](/usc/26/7651.md?p=1), of any [State](/usc/26/7701.md?p=a-10), or of the District of Columbia or of the Commonwealth of Puerto Rico.
  - (5) **Undelivered mail—** Mail, addressed to any [person](/usc/26/7701.md?p=a-1), 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](/usc/26/7701.md?p=a-1) whose name has been entered on the Army, Navy, Air Force, and Coast Guard Medal of Honor roll ([38 U.S.C. 1562](/usc/38/1562.md)), and annuities based on retired or retainer pay under [chapter 73](/usc/10/chstA-ptII-ch73.md) of title 10 of the United States Code.
  - (7) **Workmen’s compensation—** Any amount payable to an individual as workmen’s compensation ([including](/usc/26/7701.md?p=c) any portion thereof payable with respect to dependents) under a workmen’s compensation law of the [United States](/usc/26/7651.md?p=1), any [State](/usc/26/7701.md?p=a-10), the District of Columbia, or the Commonwealth of Puerto Rico.
  - (8) **Judgments for support of minor children—** If the [taxpayer](/usc/26/7701.md?p=a-14) is required by judgment of a court of competent jurisdiction, entered prior to the date of [levy](/usc/26/7701.md?p=a-21), to contribute to the support of his minor children, so much of his salary, [wages](/usc/26/7701.md?p=j-3), 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](/usc/26/7701.md?p=j-3) 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](#d-2) determined under [subsection (d)](#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](/usc/38/101.md?p=16), United States Code) disability benefit under—
    - (A) subchapter II, III, IV, V, or VI of [chapter 11](/usc/26/chstB-ch11.md) of such title 38, or
    - (B) chapter [13](/usc/26/chstB-ch13.md), [21](/usc/26/chstC-ch21.md), [23](/usc/26/chstC-ch23.md), [31](/usc/26/chstD-ch31.md), [32](/usc/26/chstD-ch32.md), [34](/usc/26/chstD-ch34.md), [35](/usc/26/chstD-ch35.md), [37](/usc/26/chstD-ch37.md), or [39](/usc/26/chstD-ch39.md) 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](/usc/26/7701.md?p=a-10) 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](https://uscode.house.gov/view.xhtml?req=(/us/usc/t29/s1501)) 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](/usc/26/7701.md?p=a-21) does not exceed $5,000—
      - (i) any real property used as a residence by the [taxpayer](/usc/26/7701.md?p=a-14); or
      - (ii) any real property of the [taxpayer](/usc/26/7701.md?p=a-14) (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)](#e)—
      - (i) the principal residence of the [taxpayer](/usc/26/7701.md?p=a-14) (within the meaning of [section 121](/usc/26/121.md)); and
      - (ii) tangible personal property or real property (other than real property which is rented) used in the [trade or business](/usc/26/7701.md?p=a-26) of an individual [taxpayer](/usc/26/7701.md?p=a-14).
- (b) **Appraisal—** The officer seizing property of the type described in [subsection (a)](#a) shall appraise and set aside to the owner the amount of such property declared to be exempt. If the [taxpayer](/usc/26/7701.md?p=a-14) objects at the time of the seizure to the valuation fixed by the officer making the seizure, the [Secretary](/usc/26/7701.md?p=a-11-B) shall summon three disinterested individuals who shall make the valuation.
- (c) **No other property exempt—** Notwithstanding any other law of the [United States](/usc/26/7651.md?p=1) ([including](/usc/26/7701.md?p=c) section 207 of the Social Security Act), no property or rights to property shall be exempt from [levy](/usc/26/7701.md?p=a-21) other than the property specifically made exempt by [subsection (a)](#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](/usc/26/7701.md?p=j-3), salary, and other income on a weekly basis, the amount of the [wages](/usc/26/7701.md?p=j-3), salary, and other income payable to or received by him during any week which is exempt from [levy](/usc/26/7701.md?p=a-21) under [subsection (a)(9)](#a-9) shall be the [exempt amount](#d-2).
  - (2) **Exempt amount—** For purposes of [paragraph (1)](#d-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](/usc/26/7701.md?p=a-14) under [section 151](/usc/26/151.md) in the [taxable year](/usc/26/7701.md?p=a-23) in which such [levy](/usc/26/7701.md?p=a-21) occurs, divided by
    - (B) 52.

    Unless the [taxpayer](/usc/26/7701.md?p=a-14) submits to the [Secretary](/usc/26/7701.md?p=a-11-B) a written and properly verified statement specifying the facts necessary to determine the proper amount under [subparagraph (A)](#d-2-A), [subparagraph (A)](#d-2-A) shall be applied as if the [taxpayer](/usc/26/7701.md?p=a-14) were a married individual filing a separate [return](/usc/26/6103.md?p=b-1) with only 1 personal exemption.

  - (3) **Individuals on basis other than weekly—** In the case of any individual not described in [paragraph (1)](#d-1), the amount of the [wages](/usc/26/7701.md?p=j-3), 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](/usc/26/7701.md?p=a-11-B)) which is exempt from [levy](/usc/26/7701.md?p=a-21) under [subsection (a)(9)](#a-9) shall be an amount (determined under such regulations) which as nearly as possible will result in the same total exemption from [levy](/usc/26/7701.md?p=a-21) for such individual over a period of time as he would have under [paragraph (1)](#d-1) if (during such period of time) he were paid or received such [wages](/usc/26/7701.md?p=j-3), salary, and other income on a regular weekly basis.
  - (4) **Years when personal exemption amount is zero—**
    - (A) **In general—** In the case of any [taxable year](/usc/26/7701.md?p=a-23) in which the exemption amount under [section 151(d)](/usc/26/151.md?p=d) is zero, [paragraph (2)](#d-2) shall not apply and for purposes of [paragraph (1)](#d-1) the term “[exempt amount](#d-2)” means an amount equal to—
      - (i) the sum of the amount determined under [subparagraph (B)](#d-4-B) and the standard deduction, divided by
      - (ii) 52.
    - (B) **Amount determined—** For purposes of [subparagraph (A)](#d-4-A), the amount determined under this subparagraph is $4,150 multiplied by the number of the [taxpayer](/usc/26/7701.md?p=a-14)’s dependents for the [taxable year](/usc/26/7701.md?p=a-23) in which the [levy](/usc/26/7701.md?p=a-21) occurs.
    - (C) **Inflation adjustment—** In the case of any [taxable year](/usc/26/7701.md?p=a-23) beginning in a calendar year after 2018, the $4,150 amount in [subparagraph (B)](#d-4-B) shall be increased by an amount equal to—
      - (i) such dollar amount, multiplied by
      - (ii) the cost-of-living adjustment determined under [section 1(f)(3)](/usc/26/1.md?p=f-3) for the calendar year in which the [taxable year](/usc/26/7701.md?p=a-23) begins, determined by substituting “2017” for “2016” in [subparagraph (A)(ii)](#d-4-A-ii) thereof.

      If any increase determined under the preceding sentence is not a multiple of $100, such increase shall be rounded to the next lowest multiple of $100.

    - (D) **Verified statement—** Unless the [taxpayer](/usc/26/7701.md?p=a-14) submits to the [Secretary](/usc/26/7701.md?p=a-11-B) a written and properly verified statement specifying the facts necessary to determine the proper amount under [subparagraph (A)](#d-4-A), [subparagraph (A)](#d-4-A) shall be applied as if the [taxpayer](/usc/26/7701.md?p=a-14) were a married individual filing a separate [return](/usc/26/6103.md?p=b-1) with no dependents.
- (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](/usc/26/7701.md?p=a-21) if a judge or magistrate of a district court of the [United States](/usc/26/7651.md?p=1) approves (in writing) the [levy](/usc/26/7701.md?p=a-21) of such residence.
    - (B) **Jurisdiction—** The district courts of the [United States](/usc/26/7651.md?p=1) shall have exclusive jurisdiction to approve a [levy](/usc/26/7701.md?p=a-21) under [subparagraph (A)](#e-1-A).
  - (2) **Certain business assets—** Property (other than a principal residence) described in [subsection (a)(13)(B)](#a-13-B) shall not be exempt from [levy](/usc/26/7701.md?p=a-21) if—
    - (A) a district director or assistant district director of the Internal Revenue Service personally approves (in writing) the [levy](/usc/26/7701.md?p=a-21) of such property; or
    - (B) the [Secretary](/usc/26/7701.md?p=a-11-B) finds that the collection of tax is in jeopardy.

    An official may not approve a [levy](/usc/26/7701.md?p=a-21) under [subparagraph (A)](#e-2-A) unless the official determines that the [taxpayer](/usc/26/7701.md?p=a-14)’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)](/usc/26/6331.md?p=h-2-B) or [(C)](/usc/26/6331.md?p=h-2-C) of section 6331(h)(2) shall not be exempt from [levy](/usc/26/7701.md?p=a-21) if the [Secretary](/usc/26/7701.md?p=a-11-B) approves the [levy](/usc/26/7701.md?p=a-21) thereon under [section 6331(h)](/usc/26/6331.md?p=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)](#a-2) and [(3)](#a-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)](/usc/26/1.md?p=f-3) for such calendar year, by substituting “calendar year 1998” for “calendar year 2016” in subparagraph (A)(ii) thereof.
  - (2) **Rounding—** If any dollar amount after being increased under [paragraph (1)](#g-1) is not a multiple of $10, such dollar amount shall be rounded to the nearest multiple of $10.

# §6335. Sale of seized property

- (a) **Notice of seizure—** As soon as practicable after seizure of property, notice in writing shall be given by the [Secretary](/usc/26/7701.md?p=a-11-B) 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](/usc/26/7701.md?p=a-11-B) shall as soon as practicable after the seizure of the property give notice to the owner, in the manner prescribed in [subsection (a)](#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](/usc/26/7701.md?p=a-21) is made without regard to the 10-day period provided in [section 6331(a)](/usc/26/6331.md?p=a), public notice of sale of the property seized shall not be made within such 10-day period unless [section 6336](/usc/26/6336.md) (relating to sale of perishable goods) is applicable.
- (c) **Sale of indivisible property—** If any property liable to [levy](/usc/26/7701.md?p=a-21) is not divisible, so as to enable the [Secretary](/usc/26/7701.md?p=a-11-B) 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)](#b). The place of sale shall be within the county in which the property is seized, except by special order of the [Secretary](/usc/26/7701.md?p=a-11-B).
- (e) **Manner and conditions of sale—**
  - (1) **In general—**
    - (A) **Determinations relating to minimum price—** Before the sale of property seized by [levy](/usc/26/7701.md?p=a-21), the [Secretary](/usc/26/7701.md?p=a-11-B) shall determine—
      - (i) a minimum price below which such property shall not be sold (taking into account the expense of making the [levy](/usc/26/7701.md?p=a-21) and conducting the sale), and
      - (ii) whether, on the basis of criteria prescribed by the [Secretary](/usc/26/7701.md?p=a-11-B), the purchase of such property by the [United States](/usc/26/7651.md?p=1) at such minimum price would be in the best interest of the [United States](/usc/26/7651.md?p=1).
    - (B) **Sale to highest bidder at or above minimum price—** If, at the sale, one or more [persons](/usc/26/7701.md?p=a-1) 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](/usc/26/7701.md?p=a-1) offers the amount of the minimum price for such property at the sale and the [Secretary](/usc/26/7701.md?p=a-11-B) has determined that the purchase of such property by the [United States](/usc/26/7651.md?p=1) would be in the best interest of the [United States](/usc/26/7651.md?p=1), the property shall be declared to be sold to the [United States](/usc/26/7651.md?p=1) at such minimum price.
    - (D) **Release to owner in other cases—** If, at the sale, the property is not declared sold under subparagraph [(B)](#e-1-B) or [(C)](#e-1-C), the property shall be released to the owner thereof and the expense of the [levy](/usc/26/7701.md?p=a-21) and sale shall be added to the amount of tax for the collection of which the [levy](/usc/26/7701.md?p=a-21) 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](/usc/26/7701.md?p=a-11-B) shall by regulations prescribe the manner and other conditions of the sale of property seized by [levy](/usc/26/7701.md?p=a-21). If one or more alternative methods or conditions are permitted by regulations, the [Secretary](/usc/26/7701.md?p=a-11-B) 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](/usc/26/7701.md?p=a-11-B) 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](/usc/26/7701.md?p=a-11-B) to be appropriate.
    - (E) The extent to which methods ([including](/usc/26/7701.md?p=c) advertising) in addition to those prescribed in [subsection (b)](#b) may be used in giving notice of the sale.
    - (F) Under what circumstances the [Secretary](/usc/26/7701.md?p=a-11-B) 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](/usc/26/7701.md?p=a-11-B) 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](/usc/26/7701.md?p=a-11-B), the sale may be declared by the [Secretary](/usc/26/7701.md?p=a-11-B) 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)](#b) and [(c)](#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)](#e-1-A-i), see [section 7433](/usc/26/7433.md).
- (f) **Right to request sale of seized property within 60 days—** The owner of any property seized by [levy](/usc/26/7701.md?p=a-21) may request that the [Secretary](/usc/26/7701.md?p=a-11-B) sell such property within 60 days after such request (or within such longer period as may be specified by the owner). The [Secretary](/usc/26/7701.md?p=a-11-B) shall comply with such request unless the [Secretary](/usc/26/7701.md?p=a-11-B) determines (and notifies the owner within such period) that such compliance would not be in the best interests of the [United States](/usc/26/7651.md?p=1).
- (g) **Stay of sale of seized property pending Tax Court decision—** For restrictions on sale of seized property pending [Tax Court](/usc/26/7701.md?p=a-27) decision, see [section 6863(b)(3)](/usc/26/6863.md?p=b-3).

# §6336. Sale of perishable goods


If the [Secretary](/usc/26/7701.md?p=a-11-B) determines that any property seized is liable to perish, 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](/usc/26/7701.md?p=a-11-B) 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](/usc/26/7701.md?p=a-11-B) an amount equal to the appraised value, or
  - (B) Gives bond in such form, with such sureties, and in such amount as the [Secretary](/usc/26/7701.md?p=a-11-B) shall prescribe, to pay the appraised amount at such time as the [Secretary](/usc/26/7701.md?p=a-11-B) 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](/usc/26/7701.md?p=a-11-B) shall as soon as practicable make public sale of the property in accordance with such regulations as may be prescribed by the [Secretary](/usc/26/7701.md?p=a-11-B).

# §6337. Redemption of property

- (a) **Before sale—** Any [person](/usc/26/7701.md?p=a-1) 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](/usc/26/7701.md?p=a-11-B) at any time prior to the sale thereof, and upon such payment the [Secretary](/usc/26/7701.md?p=a-11-B) shall restore such property to him, and all further proceedings in connection with the [levy](/usc/26/7701.md?p=a-21) 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](/usc/26/6335.md), their heirs, executors, or administrators, or any [person](/usc/26/7701.md?p=a-1) having any interest therein, or a lien thereon, or any [person](/usc/26/7701.md?p=a-1) 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](/usc/26/7701.md?p=a-11-B), 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](/usc/26/7701.md?p=a-11-B) shall cause entry of the fact to be made upon the record mentioned in [section 6340](/usc/26/6340.md), and such entry shall be evidence of such redemption.

# §6338. Certificate of sale; deed of real property

- (a) **Certificate of sale—** In the case of property sold as provided in [section 6335](/usc/26/6335.md), the [Secretary](/usc/26/7701.md?p=a-11-B) 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](/usc/26/6335.md) and not redeemed in the manner and within the time provided in [section 6337](/usc/26/6337.md), the [Secretary](/usc/26/7701.md?p=a-11-B) shall execute (in accordance with the laws of the [State](/usc/26/7701.md?p=a-10) 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](/usc/26/7651.md?p=1) at a sale pursuant to [section 6335](/usc/26/6335.md), the [Secretary](/usc/26/7701.md?p=a-11-B) 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.

# §6339. Legal effect of certificate of sale of personal property and deed of real property

- (a) **Certificate of sale of property other than real property—** In all cases of sale pursuant to [section 6335](/usc/26/6335.md) 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](/usc/26/7701.md?p=a-7), shall be notice, when received, to any [corporation](/usc/26/7701.md?p=a-3), company, or association of such transfer, and shall be authority to such [corporation](/usc/26/7701.md?p=a-3), company, or association to record the transfer on its books and records in the same manner as if the [stocks](/usc/26/7701.md?p=a-7) 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](/usc/26/7701.md?p=a-1) holding the same, as against any [person](/usc/26/7701.md?p=a-1) 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](/usc/26/6335.md)—
  - (1) **Deed as evidence—** The deed of sale given pursuant to [section 6338](/usc/26/6338.md) shall be prima facie evidence of the facts therein stated; and
  - (2) **Deed as conveyance of title—** If the proceedings of the [Secretary](/usc/26/7701.md?p=a-11-B) 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](/usc/26/7651.md?p=1) 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](/usc/26/6338.md) shall discharge such property from all liens, encumbrances, and titles over which the lien of the [United States](/usc/26/7651.md?p=1) with respect to which the [levy](/usc/26/7701.md?p=a-21) was made had priority.
- (d) **Cross references—**
  - (1) For distribution of surplus proceeds, see [section 6342(b)](/usc/26/6342.md?p=b).
  - (2) For judicial procedure with respect to surplus proceeds, see [section 7426(a)(2)](/usc/26/7426.md?p=a-2).

# §6340. Records of sale

- (a) **Requirement—** The [Secretary](/usc/26/7701.md?p=a-11-B) shall, for each internal revenue district, keep a record of all sales of property under [section 6335](/usc/26/6335.md) 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](/usc/26/7701.md?p=a-11-B) shall be evidence in any court of the truth of the facts therein stated.
- (c) **Accounting to taxpayer—** The [taxpayer](/usc/26/7701.md?p=a-14) with respect to whose liability the sale was conducted or who redeemed the property shall be furnished—
  - (1) the record under [subsection (a)](#a) (other than the names of the purchasers);
  - (2) the amount from such sale applied to the [taxpayer](/usc/26/7701.md?p=a-14)’s liability; and
  - (3) the remaining balance of such liability.

# §6341. Expense of levy and sale


The [Secretary](/usc/26/7701.md?p=a-11-B) shall determine the expenses to be allowed in all cases of [levy](/usc/26/7701.md?p=a-21) and sale.


# §6342. Application of proceeds of levy

- (a) **Collection of liability—** Any money realized by proceedings under this subchapter (whether by seizure, by surrender under [section 6332](/usc/26/6332.md) (except pursuant to subsection (d)(2) thereof), or by sale of seized property) or by sale of property redeemed by the [United States](/usc/26/7651.md?p=1) (if the interest of the [United States](/usc/26/7651.md?p=1) 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)](#a-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)](#a-1) and [(2)](#a-2) shall then be applied against the liability in respect of which the [levy](/usc/26/7701.md?p=a-21) was made or the sale was conducted.
- (b) **Surplus proceeds—** Any surplus proceeds remaining after the application of [subsection (a)](#a) shall, upon application and satisfactory proof in support thereof, be credited or refunded by the [Secretary](/usc/26/7701.md?p=a-11-B) to the [person](/usc/26/7701.md?p=a-1) or [persons](/usc/26/7701.md?p=a-1) legally entitled thereto.

# §6343. Authority to release levy and return property

- (a) **Release of levy and notice of release—**
  - (1) **In general—** Under regulations prescribed by the [Secretary](/usc/26/7701.md?p=a-11-B), the [Secretary](/usc/26/7701.md?p=a-11-B) shall release the [levy](/usc/26/7701.md?p=a-21) upon all, or part of, the property or rights to property levied upon and shall promptly notify the [person](/usc/26/7701.md?p=a-1) upon whom such [levy](/usc/26/7701.md?p=a-21) was made (if any) that such [levy](/usc/26/7701.md?p=a-21) has been released if—
    - (A) the liability for which such [levy](/usc/26/7701.md?p=a-21) was made is satisfied or becomes unenforceable by reason of lapse of time,
    - (B) release of such [levy](/usc/26/7701.md?p=a-21) will facilitate the collection of such liability,
    - (C) the [taxpayer](/usc/26/7701.md?p=a-14) has entered into an agreement under [section 6159](/usc/26/6159.md) to satisfy such liability by means of installment payments, unless such agreement provides otherwise,
    - (D) the [Secretary](/usc/26/7701.md?p=a-11-B) has determined that such [levy](/usc/26/7701.md?p=a-21) is creating an economic hardship due to the financial condition of the [taxpayer](/usc/26/7701.md?p=a-14), or
    - (E) the fair market value of the property exceeds such liability and release of the [levy](/usc/26/7701.md?p=a-21) on a part of such property could be made without hindering the collection of such liability.

    For purposes of [subparagraph (C)](#a-1-C), the [Secretary](/usc/26/7701.md?p=a-11-B) is not required to release such [levy](/usc/26/7701.md?p=a-21) if such release would jeopardize the secured creditor status of the [Secretary](/usc/26/7701.md?p=a-11-B).

  - (2) **Expedited determination on certain business property—** In the case of any tangible personal property essential in carrying on the [trade or business](/usc/26/7701.md?p=a-26) of the [taxpayer](/usc/26/7701.md?p=a-14), the [Secretary](/usc/26/7701.md?p=a-11-B) shall provide for an expedited determination under [paragraph (1)](#a-1) if [levy](/usc/26/7701.md?p=a-21) on such tangible personal property would prevent the [taxpayer](/usc/26/7701.md?p=a-14) from carrying on such [trade or business](/usc/26/7701.md?p=a-26).
  - (3) **Subsequent levy—** The release of [levy](/usc/26/7701.md?p=a-21) on any property under [paragraph (1)](#a-1) shall not prevent any subsequent [levy](/usc/26/7701.md?p=a-21) on such property.
- (b) **Return of property—** If the [Secretary](/usc/26/7701.md?p=a-11-B) determines that property has been wrongfully levied upon, it shall be lawful for the [Secretary](/usc/26/7701.md?p=a-11-B) to [return](/usc/26/6103.md?p=b-1)—
  - (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](/usc/26/7651.md?p=1) from a sale of such property.

  Property may be returned at any time. An amount equal to the amount of money levied upon or received from such sale may be returned at any time before the expiration of 2 years from the date of such [levy](/usc/26/7701.md?p=a-21). For purposes of [paragraph (3)](#b-3), if property is declared purchased by the [United States](/usc/26/7651.md?p=1) at a sale pursuant to [section 6335(e)](/usc/26/6335.md?p=e) (relating to manner and conditions of sale), the [United States](/usc/26/7651.md?p=1) 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](/usc/26/7651.md?p=1) from the resale of such property.

- (c) **Interest—** Interest shall be allowed and paid at the overpayment rate established under [section 6621](/usc/26/6621.md)—
  - (1) in a case described in [subsection (b)(2)](#b-2), from the date the [Secretary](/usc/26/7701.md?p=a-11-B) receives the money to a date (to be determined by the [Secretary](/usc/26/7701.md?p=a-11-B)) preceding the date of [return](/usc/26/6103.md?p=b-1) by not more than 30 days, or
  - (2) in a case described in [subsection (b)(3)](#b-3), from the date of the sale of the property to a date (to be determined by the [Secretary](/usc/26/7701.md?p=a-11-B)) preceding the date of [return](/usc/26/6103.md?p=b-1) 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](/usc/26/7701.md?p=a-11-B) determines that—
    - (A) the [levy](/usc/26/7701.md?p=a-21) on such property was premature or otherwise not in accordance with administrative procedures of the [Secretary](/usc/26/7701.md?p=a-11-B),
    - (B) the [taxpayer](/usc/26/7701.md?p=a-14) has entered into an agreement under [section 6159](/usc/26/6159.md) to satisfy the tax liability for which the [levy](/usc/26/7701.md?p=a-21) was imposed by means of installment payments, unless such agreement provides otherwise,
    - (C) the [return](/usc/26/6103.md?p=b-1) of such property will facilitate the collection of the tax liability, or
    - (D) with the consent of the [taxpayer](/usc/26/7701.md?p=a-14) or the National [Taxpayer](/usc/26/7701.md?p=a-14) Advocate, the [return](/usc/26/6103.md?p=b-1) of such property would be in the best interests of the [taxpayer](/usc/26/7701.md?p=a-14) (as determined by the National [Taxpayer](/usc/26/7701.md?p=a-14) Advocate) and the [United States](/usc/26/7651.md?p=1),

  the provisions of [subsection (b)](#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)](#c).

- (e) **Release of levy upon agreement that amount is not collectible—** In the case of a [levy](/usc/26/7701.md?p=a-21) on the salary or [wages](/usc/26/7701.md?p=j-3) payable to or received by the [taxpayer](/usc/26/7701.md?p=a-14), upon agreement with the [taxpayer](/usc/26/7701.md?p=a-14) that the tax is not collectible, the [Secretary](/usc/26/7701.md?p=a-11-B) shall release such [levy](/usc/26/7701.md?p=a-21) as soon as practicable.
- (f) **Individuals held harmless on wrongful levy, etc.[^1] on retirement plan—**
  - (1) **In general—** If the [Secretary](/usc/26/7701.md?p=a-11-B) determines that an individual’s account or benefit under an eligible retirement plan (as defined in [section 402(c)(8)(B)](/usc/26/402.md?p=c-8-B)) has been levied upon in a case to which subsection [(b)](#b) or [(d)(2)(A)](#d-2-A) applies and property or an amount of money is returned to the individual—
    - (A) the individual may contribute such property or an amount equal to the sum of—
      - (i) the amount of money so returned by the [Secretary](/usc/26/7701.md?p=a-11-B), and
      - (ii) interest paid under [subsection (c)](#c) on such amount of money,

      into such eligible retirement plan if such contribution is permitted by the plan, or into an [individual retirement plan](/usc/26/7701.md?p=a-37) (other than an [endowment contract](/usc/26/7702.md?p=h-2)) to which a rollover contribution of a distribution from such eligible retirement plan is permitted, but only if such contribution is made not later than the due date (not [including](/usc/26/7701.md?p=c) extensions) for filing the [return](/usc/26/6103.md?p=b-1) of tax for the [taxable year](/usc/26/7701.md?p=a-23) in which such property or amount of money is returned, and

    - (B) the [Secretary](/usc/26/7701.md?p=a-11-B) shall, at the time such property or amount of money is returned, notify such individual that a contribution described in [subparagraph (A)](#f-1-A) may be made.
  - (2) **Treatment as rollover—** The distribution on account of the [levy](/usc/26/7701.md?p=a-21) and any contribution under [paragraph (1)](#f-1) with respect to the [return](/usc/26/6103.md?p=b-1) of such distribution shall be treated for purposes of this title as if such distribution and contribution were described in section [402(c)](/usc/26/402.md?p=c), [402A(c)(3)](/usc/26/402A.md?p=c-3), [403(a)(4)](/usc/26/403.md?p=a-4), [403(b)(8)](/usc/26/403.md?p=b-8), [408(d)(3)](/usc/26/408.md?p=d-3), [408A(d)(3)](/usc/26/408A.md?p=d-3), or [457(e)(16)](/usc/26/457.md?p=e-16), whichever is applicable; except that—
    - (A) the contribution shall be treated as having been made for the [taxable year](/usc/26/7701.md?p=a-23) in which the distribution on account of the [levy](/usc/26/7701.md?p=a-21) occurred, and the interest paid under [subsection (c)](#c) shall be treated as earnings within the plan after the contribution and shall not be included in gross income, and
    - (B) such contribution shall not be taken into account under [section 408(d)(3)(B)](/usc/26/408.md?p=d-3-B).
  - (3) **Refund, etc., of income tax on levy—**
    - (A) **In general—** If any amount is includible in gross income for a [taxable year](/usc/26/7701.md?p=a-23) by reason of a distribution on account of a [levy](/usc/26/7701.md?p=a-21) referred to in [paragraph (1)](#f-1) and any portion of such amount is treated as a rollover contribution under [paragraph (2)](#f-2), any tax imposed by [chapter 1](/usc/26/chstA-ch1.md) on such portion shall not be assessed, and if assessed shall be abated, and if collected shall be credited or refunded as an overpayment made on the due date for filing the [return](/usc/26/6103.md?p=b-1) of tax for such [taxable year](/usc/26/7701.md?p=a-23).
    - (B) **Exception—** [Subparagraph (A)](#f-3-A) shall not apply to a rollover contribution under this subsection which is made from an eligible retirement plan which is not a [Roth IRA](/usc/26/408A.md?p=b) or a designated Roth account (within the meaning of [section 402A](/usc/26/402A.md)) to a [Roth IRA](/usc/26/408A.md?p=b) or a designated Roth account under an eligible retirement plan.
  - (4) **Interest—** Notwithstanding [subsection (d)](#d), interest shall be allowed under [subsection (c)](#c) in a case in which the [Secretary](/usc/26/7701.md?p=a-11-B) makes a determination described in [subsection (d)(2)(A)](#d-2-A) with respect to a [levy](/usc/26/7701.md?p=a-21) upon an [individual retirement plan](/usc/26/7701.md?p=a-37).
  - (5) **Treatment of inherited accounts—** For purposes of [paragraph (1)(A)](#f-1-A), [section 408(d)(3)(C)](/usc/26/408.md?p=d-3-C) shall be disregarded in determining whether an [individual retirement plan](/usc/26/7701.md?p=a-37) is a plan to which a rollover contribution of a distribution from the plan levied upon is permitted.

# §6344. Cross references

- (a) **Length of period—** For period within which [levy](/usc/26/7701.md?p=a-21) may be begun in case of—
  - (1) Income, estate, and gift taxes, and taxes imposed by chapter [41](/usc/26/chstD-ch41.md), [42](/usc/26/chstD-ch42.md), [43](/usc/26/chstD-ch43.md), or [44](/usc/26/chstD-ch44.md), see sections [6502(a)](/usc/26/6502.md?p=a) and [6503(a)(1)](/usc/26/6503.md?p=a-1).
  - (2) Employment and miscellaneous excise taxes, see [section 6502(a)](/usc/26/6502.md?p=a).
- (b) **Delinquent collection officers—** For distraint proceedings against delinquent [internal revenue officers](/usc/26/7801.md?p=a-2-A), see [section 7804(c)](/usc/26/7804.md?p=c).
- (c) **Other references—** For provisions relating to—
  - (1) Stamps, marks and brands, see [section 6807](/usc/26/6807.md).
  - (2) Administration of real estate acquired by the [United States](/usc/26/7651.md?p=1), see [section 7506](/usc/26/7506.md).