Internal Revenue Code:Sec. 6331. Levy and distraint
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Location in Internal Revenue Code
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
Statute
Sec. 6331. Levy and distraint
(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.
(3) Increase in levy for certain
payments.--Paragraph (1) shall be applied by substituting `100
percent' for `15 percent' in the case of any specified payment
due to a vendor of goods or services sold or leased to the
Federal Government.
(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.''
(l) Cross references
(1) For provisions relating to jeopardy, see subchapter A of
chapter 70.
(2) For proceedings applicable to sale of seized property see
section 6335.
(3) For release and notice of release of levy, see section
6343.
Sources
(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, Sec. 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.)
References in Text
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.
Miscellaneous
AMENDMENTS
2004 - Subsec. 887(a), Pub. L. 108-357, amended Sec. 6331(h)
by adding new paragraph (3).
2002 - Subsec. 416(e), Pub. L. 107-147, amended Sec. 6331(k)
(3). The amendment shall take effect on the date of the
enactment of this Act.
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, Sec. 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, Sec. 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 2004 AMENDMENT
Pub.L.108-357,Sec.887(a);Effective Date.--The amendment made
by this section shall take effect on the date of the enactment of
this Act.
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.
References
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.
