---
kind: "section"
citation: "26 U.S.C. § 6332"
title: "26"
title_heading: "Internal Revenue Code"
number: "6332"
heading: "Surrender of property subject to levy"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/26/6332"
units:
  - "Subtitle F — Procedure and Administration"
  - "Chapter 64 — Collection"
  - "Subchapter D — Seizure of Property for Collection of Taxes"
  - "Part II — Levy"
---

# §6332. Surrender of property subject to levy

- (a) **Requirement—** Except as otherwise provided in this section, 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 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](/usc/26/101.md?p=f-3-A) 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](/usc/26/101.md?p=f-3-A) 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](/usc/26/101.md?p=f-3-A).
- (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/26/7701.md?p=a-9) 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](/usc/26/6664.md?p=a) 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/26/7701.md?p=a-20) of a [corporation](/usc/26/7701.md?p=a-3) or a [member](/usc/26/7701.md?p=j-4) or [employee](/usc/26/7701.md?p=a-20) of a [partnership](/usc/26/7701.md?p=a-2), who as such officer, [employee](/usc/26/7701.md?p=a-20), or [member](/usc/26/7701.md?p=j-4) is under a duty to surrender the property or rights to property, or to discharge the obligation.

## Source credit

(Aug. 16, 1954, ch. 736, 68A Stat. 784; Pub. L. 89–719, title I, § 104(b), Nov. 2, 1966, 80 Stat. 1135; Pub. L. 93–625, § 7(a)(2)(D), Jan. 3, 1975, 88 Stat. 2115; Pub. L. 94–455, title XII, § 1209(d)(3), title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1710, 1834; Pub. L. 99–514, title XV, § 1511(c)(9), Oct. 22, 1986, 100 Stat. 2745; Pub. L. 100–647, title I, § 1015(t)(1), title VI, § 6236(e), Nov. 10, 1988, 102 Stat. 3573, 3739; Pub. L. 101–508, title XI, § 11704(a)(27), Nov. 5, 1990, 104 Stat. 1388–519.)

## Notes

### Editorial Notes

### Amendments

1990—Subsec. (a). Pub. L. 101–508 substituted “this section” for “subsections (b) and (c)”.

1988—Subsec. (a). Pub. L. 100–647, § 6236(e)(2)(A), substituted “subsections (b) and (c)” for “subsection (b)”.

Subsec. (c). Pub. L. 100–647, § 6236(e)(1), added subsec. (c). Former subsec. (c) redesignated (d).

Subsec. (d). Pub. L. 100–647, § 6236(e)(1), redesignated subsec. (c) as (d). Former subsec. (d) redesignated (e).

Pub. L. 100–647, § 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, § 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, § 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, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary” wherever appearing.

Subsec. (c)(1). Pub. L. 94–455, §§ 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, § 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, § 104(b)(1), substituted “Except as otherwise provided in subsection (b), any person” for “Any person”.

Subsec. (b). Pub. L. 89–719, § 104(b)(2), added subsec. (b). Former subsec. (b) redesignated, with amendments, as subsec. (c)(1).

Subsec. (c). Pub. L. 89–719, § 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, § 104(b)(4), added subsec. (d).

Subsec. (e). Pub. L. 89–719, § 104(b)(3), redesignated former subsec. (c) as (e).

### Statutory Notes and Related Subsidiaries

### Effective Date of 1988 Amendment

Pub. L. 100–647, title I, § 1015(t)(2), Nov. 10, 1988, 102 Stat. 3573, 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.