26 U.S.C. § 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,

(F)

the procedures applicable to the redemption of property and the release of a lien on property under this title, and

(G)

the provisions of section 7345 relating to the certification of seriously delinquent tax debts and the denial, revocation, or limitation of passports of individuals with such debts pursuant to section 32101 of the FAST Act.

(e)

Continuing levy on salary and 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 property, goods, or services sold or leased to the Federal Government and by substituting “100 percent” for “15 percent” in the case of any specified payment due to a Medicare provider or supplier under title XVIII of the Social Security Act.

(i)

No levy during pendency of proceedings for refund of divisible tax

(1)

In 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.

Aug. 16, 1954, ch. 736 68A Stat. 783 Pub. L. 89–719, title I, § 104(a)Nov. 2, 196680 Stat. 1135 Pub. L. 92–178, title II, § 211(a)Dec. 10, 197185 Stat. 520 Pub. L. 94–455, title XII, § 1209(d)(1)Oct. 4, 197690 Stat. 1710 Pub. L. 97–248, title III, § 349(a)Sept. 3, 198296 Stat. 639 Pub. L. 98–369, div. A, title VII, § 714oJuly 18, 198498 Stat. 964 Pub. L. 100–647, title VI, § 6236(a)Nov. 10, 1988102 Stat. 3737 Pub. L. 105–34, title X, § 1024(a)Aug. 5, 1997111 Stat. 923 Pub. L. 105–206, title IIIJuly 22, 1998112 Stat. 759 Pub. L. 106–554, § 1(a)(7) [title III, § 313(b)(3)]Dec. 21, 2000114 Stat. 2763 Pub. L. 107–147, title IV, § 416(e)(1)Mar. 9, 2002116 Stat. 55 Pub. L. 108–357, title VIII, § 887(a)Oct. 22, 2004118 Stat. 1641 Pub. L. 112–56, title III, § 301(a)Nov. 21, 2011125 Stat. 733 Pub. L. 113–295, div. B, title II, § 209(a)Dec. 19, 2014128 Stat. 4074 Pub. L. 114–10, title IV, § 413(a)Apr. 16, 2015129 Stat. 162 Pub. L. 114–94, div. C, title XXXII, § 32101(b)(2)Dec. 4, 2015129 Stat. 1731 (, ; , , ; , , ; , (2), (4), title XIX, § 1906(b)(13)(A), , , 1711, 1834; , , ; (), , ; , (b), (d), , , 3739; , , ; , §§ 3433(a), 3444(a), 3462(b), title VI, § 6010(f), , , 762, 765, 814; , , , 2763A–642; , , ; , , ; , , ; , , ; , , ; , , .)

Editorial Notes

References in Text

section 32101 of Pub. L. 114–94 section 7345 of this title section 2714a of Title 22Section 32101 of the FAST Act, referred to in subsec. (d)(4)(G), is , which enacted and , Foreign Relations and Intercourse, and amended this section and sections 6103, 6320, and 7508 of this title.

act Aug. 29, 1935, ch. 812 Pub. L. 93–445, title I, § 101Oct. 16, 197488 Stat. 1305 section 231 of Title 45 section 231t of Title 45The Railroad Retirement Act, referred to in subsec. (h)(2)(C), is , as amended generally by , , , known as the Railroad Retirement Act of 1974, which is classified generally to subchapter IV (§ 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 , , and Tables.

act June 25, 1938, ch. 680 52 Stat. 1094 section 367 of Title 45The Railroad Unemployment Insurance Act, referred to in subsec. (h)(2)(C), is , , which is classified principally to chapter 11 (§ 351 et seq.) of Title 45, Railroads. For complete classification of this Act to the Code, see and Tables.

act Aug. 14, 1935, ch. 531 49 Stat. 620 section 1305 of Title 42The Social Security Act, referred to in subsec. (h)(3), is , . Title XVIII of the Act is classified generally to subchapter XVIII (§ 1395 et seq.) of chapter 7 of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see and Tables.

Amendments

Pub. L. 114–942015—Subsec. (d)(4)(G). added subpar. (G).

Pub. L. 114–10Subsec. (h)(3). substituted “and by substituting ‘100 percent’ ” for “and by substituting ‘30 percent’ ”.

Pub. L. 113–2952014—Subsec. (h)(3). inserted “and by substituting ‘30 percent’ for ‘15 percent’ in the case of any specified payment due to a Medicare provider or supplier under title XVIII of the Social Security Act” before period at end.

Pub. L. 112–562011—Subsec. (h)(3). substituted “property, goods, or services” for “goods or services”.

Pub. L. 108–3572004—Subsec. (h)(3). added par. (3).

Pub. L. 107–1472002—Subsec. (k)(3). reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “Rules similar to the rules of paragraphs (3) and (4) of subsection (i) shall apply for purposes of this subsection.”

Pub. L. 106–5542000—Subsec. (k)(3). substituted “(3) and (4)” for “(3), (4), and (5)”.

Pub. L. 105–206, § 6010(f)1998—Subsec. (h)(1). , substituted “If the Secretary approves a levy under this subsection, the effect of such levy” for “The effect of a levy”.

Pub. L. 105–206, § 3433(a)Subsec. (i). , added subsec. (i). Former subsec. (i) redesignated (j).

Pub. L. 105–206, § 3444(a)Subsec. (j). , added subsec. (j). Former subsec. (j) redesignated (k).

Pub. L. 105–206, § 3433(a), redesignated subsec. (i) as (j).

Pub. L. 105–206, § 3462(b)lSubsec. (k). , added subsec. (k). Former subsec. (k) redesignated ().

Pub. L. 105–206, § 3444(a), redesignated subsec. (j) as (k).

lPub. L. 105–206, § 3462(b)lSubsec. (). , redesignated subsec. (k) as ().

Pub. L. 105–341997—Subsecs. (h), (i). added subsec. (h) and redesignated former subsec. (h) as (i).

Pub. L. 100–647, § 6236(a)(1)1988—Subsec. (d)(2). , (2), substituted “30-day” for “10-day” in heading and “30 days” for “10 days” in text.

Pub. L. 100–647, § 6236(a)(3)Subsec. (d)(4). , added par. (4).

Pub. L. 100–647, § 6236(b)(1)Subsec. (e). , 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.

Pub. L. 100–647, § 6236(d)Subsecs. (f), (g). , added subsecs. (f) and (g). Former subsec. (f) redesignated (h).

Pub. L. 100–647, § 6236(b)(2)Subsec. (h). , (d), redesignated subsec. (f) as (h) and added par. (3).

Pub. L. 98–3691984—Subsec. (b). substituted “subsection (e)” for “subsection (d)(3)”.

Pub. L. 97–2481982—Subsec. (d). 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).

Pub. L. 97–248Subsec. (e). redesignated former subsec. (d)(3) as (e). Former subsec. (e) redesignated (f).

Pub. L. 97–248Subsec. (f). redesignated former subsec. (e) as (f).

Pub. L. 94–455, § 1906(b)(13)(A)1976—Subsec. (a). , struck out “or his delegate” after “Secretary” wherever appearing.

Pub. L. 94–455Subsec. (b). , §§ 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”.

Pub. L. 94–455, § 1906(b)(13)(A)Subsec. (c). , struck out “or his delegate” after “Secretary”.

Pub. L. 94–455Subsec. (d)(1). , §§ 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”.

Pub. L. 94–455, § 1906(b)(13)(A)Subsec. (d)(2). , struck out “or his delegate” after “Secretary”.

Pub. L. 94–455, § 1209(d)(1)Subsec. (d)(3). , added par. (3).

Pub. L. 92–1781971—Subsecs. (d), (e). added subsec. (d) and redesignated former subsec. (d) as (e).

Pub. L. 89–7191966—Subsec. (b). inserted sentence providing that a levy shall extend only to property possessed and obligations existing at the time thereof.

Statutory Notes and Related Subsidiaries

Effective Date of 2015 Amendment

Pub. L. 114–10, title IV, § 413(b)Apr. 16, 2015129 Stat. 162

Apr. 16, 2015“The amendment made by this section [amending this section] shall apply to payments made after 180 days after the date of the enactment of this Act [].”

, , , provided that:

Effective Date of 2014 Amendment

Pub. L. 113–295, div. B, title II, § 209(b)Dec. 19, 2014128 Stat. 4074

Dec. 19, 2014“The amendment made by this section [amending this section] shall apply to payments made after 180 days after the date of the enactment of this Act [].”

, , , provided that:

Effective Date of 2011 Amendment

Pub. L. 112–56, title III, § 301(b)Nov. 21, 2011125 Stat. 733

Nov. 21, 2011“The amendment made by this section [amending this section] shall apply to levies issued after the date of the enactment of this Act [].”

, , , provided that:

Effective Date of 2004 Amendment

Pub. L. 108–357, title VIII, § 887(b)Oct. 22, 2004118 Stat. 1642

Oct. 22, 2004“The amendment made by this section [amending this section] shall take effect on the date of the enactment of this Act [].”

, , , provided that:

Effective Date of 2002 Amendment

Pub. L. 107–147, title IV, § 416(e)(2)Mar. 9, 2002116 Stat. 55

Mar. 9, 2002“The amendment made by this subsection [amending this section] shall take effect on the date of the enactment of this Act [].”

, , , provided that:

Effective Date of 1998 Amendment

Pub. L. 105–206, title III, § 3433(b)July 22, 1998112 Stat. 760

December 31, 1998“The amendment made by this section [amending this section] shall apply to unpaid tax attributable to taxable periods beginning after .”

, , , provided that:

Pub. L. 105–206, title III, § 3444(b)July 22, 1998112 Stat. 762

July 22, 1998“The amendments made by this section [amending this section] shall take effect on the date of the enactment of this Act [].”

, , , provided that:

Pub. L. 105–206, title III, § 3462(e)July 22, 1998112 Stat. 766

“(1)

In general .—

July 22, 1998The 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 [].

“(2)

Suspension of collection by levy .—

December 31, 1999The amendment made by subsection (b) [amending this section] shall apply to offers-in-compromise pending on or made after .”

, , , provided that:

section 6010(f) of Pub. L. 105–206 Pub. L. 105–34 section 6024 of Pub. L. 105–206 section 1 of this titleAmendment by effective, except as otherwise provided, as if included in the provisions of the Taxpayer Relief Act of 1997, , to which such amendment relates, see , set out as a note under .

Effective Date of 1997 Amendment

Pub. L. 105–34, title X, § 1024(b)Aug. 5, 1997111 Stat. 924

Aug. 5, 1997“The amendment made by subsection (a) [amending this section] shall apply to levies issued after the date of the enactment of this Act [].”

, , , provided that:

Effective Date of 1988 Amendment

Pub. L. 100–647, title VI, § 6236(h)Nov. 10, 1988102 Stat. 3740

“(1)

In general .—

July 1, 1989The 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 .

“(2)

Subsection (g).—

section 6335 of this titleJanuary 1, 1989The amendment made by subsection (g) [amending ] shall apply to requests made on or after .”

, , , provided that:

Effective Date of 1984 Amendment

Pub. L. 98–369 Pub. L. 97–248 section 715 of Pub. L. 98–369 section 31 of this titleAmendment by effective as if included in the provision of the Tax Equity and Fiscal Responsibility Act of 1982, , to which such amendment relates, see , set out as a note under .

Effective Date of 1982 Amendment

Pub. L. 97–248, title III, § 349(b)Sept. 3, 198296 Stat. 639

December 31, 1982“The amendment made by subsection (a) [amending this section] shall apply to levies made after .”

, , , provided that:

Effective Date of 1976 Amendment

Pub. L. 94–455Feb. 28, 1977section 1209(e) of Pub. L. 94–455 section 2(c) of Pub. L. 94–528Oct. 17, 197690 Stat. 2483 section 6334 of this titleAmendment by section 1209(d)(1), (2), (4) of effective only with respect to levies made after , see as amended by , , , set out as a note under .

Effective Date of 1971 Amendment

Pub. L. 92–178, title II, § 211(b)Dec. 10, 197185 Stat. 520

March 31, 1972“The amendments made by this section [amending this section] shall apply with respect to levies made after .”

, , , provided that:

Effective Date of 1966 Amendment

Pub. L. 89–719Nov. 2, 1966Pub. L. 89–719 section 6323 of this titleAmendment by applicable after , 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 , set out as a note under .