
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC6325]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                Subtitle F--Procedure and Administration
 
                         CHAPTER 64--COLLECTION
 
                      Subchapter C--Lien for Taxes
 
                             PART II--LIENS
 
Sec. 6325. Release of lien or discharge of property


(a) Release of lien

    Subject to such regulations as the Secretary may prescribe, the 
Secretary shall issue a certificate of release of any lien imposed with 
respect to any internal revenue tax not later than 30 days after the day 
on which--

              (1) Liability satisfied or unenforceable

        The Secretary finds that the liability for the amount assessed, 
    together with all interest in respect thereof, has been fully 
    satisfied or has become legally unenforceable; or

                          (2) Bond accepted

        There is furnished to the Secretary and accepted by him a bond 
    that is conditioned upon the payment of the amount assessed, 
    together with all interest in respect thereof, within the time 
    prescribed by law (including any extension of such time), and that 
    is in accordance with such requirements relating to terms, 
    conditions, and form of the bond and sureties thereon, as may be 
    specified by such regulations.

(b) Discharge of property

           (1) Property double the amount of the liability

        Subject to such regulations as the Secretary may prescribe, the 
    Secretary may issue a certificate of discharge of any part of the 
    property subject to any lien imposed under this chapter if the 
    Secretary finds that the fair market value of that part of such 
    property remaining subject to the lien is at least double the amount 
    of the unsatisfied liability secured by such lien and the amount of 
    all other liens upon such property which have priority over such 
    lien.

        (2) Part payment; interest of United States valueless

        Subject to such regulations as the Secretary may prescribe, the 
    Secretary may issue a certificate of discharge of any part of the 
    property subject to the lien if--
            (A) there is paid over to the Secretary in partial 
        satisfaction of the liability secured by the lien an amount 
        determined by the Secretary, which shall not be less than the 
        value, as determined by the Secretary, of the interest of the 
        United States in the part to be so discharged, or
            (B) the Secretary determines at any time that the interest 
        of the United States in the part to be so discharged has no 
        value.

    In determining the value of the interest of the United States in the 
    part to be so discharged, the Secretary shall give consideration to 
    the value of such part and to such liens thereon as have priority 
    over the lien of the United States.

                (3) Substitution of proceeds of sale

        Subject to such regulations as the Secretary may prescribe, the 
    Secretary may issue a certificate of discharge of any part of the 
    property subject to the lien if such part of the property is sold 
    and, pursuant to an agreement with the Secretary, the proceeds of 
    such sale are to be held, as a fund subject to the liens and claims 
    of the United States, in the same manner and with the same priority 
    as such liens and claims had with respect to the discharged 
    property.

                 (4) Right of substitution of value

        (A) In general

            At the request of the owner of any property subject to any 
        lien imposed by this chapter, the Secretary shall issue a 
        certificate of discharge of such property if such owner--
                (i) deposits with the Secretary an amount of money equal 
            to the value of the interest of the United States (as 
            determined by the Secretary) in the property; or
                (ii) furnishes a bond acceptable to the Secretary in a 
            like amount.

        (B) Refund of deposit with interest and release of bond

            The Secretary shall refund the amount so deposited (and 
        shall pay interest at the overpayment rate under section 6621), 
        and shall release such bond, to the extent that the Secretary 
        determines that--
                (i) the unsatisfied liability giving rise to the lien 
            can be satisfied from a source other than such property; or
                (ii) the value of the interest of the United States in 
            the property is less than the Secretary's prior 
            determination of such value.

        (C) Use of deposit, etc., if action to contest lien not filed

            If no action is filed under section 7426(a)(4) within the 
        period prescribed therefor, the Secretary shall, within 60 days 
        after the expiration of such period--
                (i) apply the amount deposited, or collect on such bond, 
            to the extent necessary to satisfy the unsatisfied liability 
            secured by the lien; and
                (ii) refund (with interest as described in subparagraph 
            (B)) any portion of the amount deposited which is not used 
            to satisfy such liability.

        (D) Exception

            Subparagraph (A) shall not apply if the owner of the 
        property is the person whose unsatisfied liability gave rise to 
        the lien.

(c) Estate or gift tax

    Subject to such regulations as the Secretary may prescribe, the 
Secretary may issue a certificate of discharge of any or all of the 
property subject to any lien imposed by section 6324 if the Secretary 
finds that the liability secured by such lien has been fully satisfied 
or provided for.

(d) Subordination of lien

    Subject to such regulations as the Secretary may prescribe, the 
Secretary may issue a certificate of subordination of any lien imposed 
by this chapter upon any part of the property subject to such lien if--
        (1) there is paid over to the Secretary an amount equal to the 
    amount of the lien or interest to which the certificate subordinates 
    the lien of the United States,
        (2) the Secretary believes that the amount realizable by the 
    United States from the property to which the certificate relates, or 
    from any other property subject to the lien, will ultimately be 
    increased by reason of the issuance of such certificate and that the 
    ultimate collection of the tax liability will be facilitated by such 
    subordination, or
        (3) in the case of any lien imposed by section 6324B, if the 
    Secretary determines that the United States will be adequately 
    secured after such subordination.

(e) Nonattachment of lien

    If the Secretary determines that, because of confusion of names or 
otherwise, any person (other than the person against whom the tax was 
assessed) is or may be injured by the appearance that a notice of lien 
filed under section 6323 refers to such person, the Secretary may issue 
a certificate that the lien does not attach to the property of such 
person.

(f) Effect of certificate

                         (1) Conclusiveness

        Except as provided in paragraphs (2) and (3), if a certificate 
    is issued pursuant to this section by the Secretary and is filed in 
    the same office as the notice of lien to which it relates (if such 
    notice of lien has been filed) such certificate shall have the 
    following effect:
            (A) in the case of a certificate of release, such 
        certificate shall be conclusive that the lien referred to in 
        such certificate is extinguished;
            (B) in the case of a certificate of discharge, such 
        certificate shall be conclusive that the property covered by 
        such certificate is discharged from the lien;
            (C) in the case of a certificate of subordination, such 
        certificate shall be conclusive that the lien or interest to 
        which the lien of the United States is subordinated is superior 
        to the lien of the United States; and
            (D) in the case of a certificate of nonattachment, such 
        certificate shall be conclusive that the lien of the United 
        States does not attach to the property of the person referred to 
        in such certificate.

      (2) Revocation of certificate of release or nonattachment

        If the Secretary determines that a certificate of release or 
    nonattachment of a lien imposed by section 6321 was issued 
    erroneously or improvidently, or if a certificate of release of such 
    lien was issued pursuant to a collateral agreement entered into in 
    connection with a compromise under section 7122 which has been 
    breached, and if the period of limitation on collection after 
    assessment has not expired, the Secretary may revoke such 
    certificate and reinstate the lien--
            (A) by mailing notice of such revocation to the person 
        against whom the tax was assessed at his last known address, and
            (B) by filing notice of such revocation in the same office 
        in which the notice of lien to which it relates was filed (if 
        such notice of lien had been filed).

    Such reinstated lien (i) shall be effective on the date notice of 
    revocation is mailed to the taxpayer in accordance with the 
    provisions of subparagraph (A), but not earlier than the date on 
    which any required filing of notice of revocation is filed in 
    accordance with the provisions of subparagraph (B), and (ii) shall 
    have the same force and effect (as of such date), until the 
    expiration of the period of limitation on collection after 
    assessment, as a lien imposed by section 6321 (relating to lien for 
    taxes).

           (3) Certificates void under certain conditions

        Notwithstanding any other provision of this subtitle, any lien 
    imposed by this chapter shall attach to any property with respect to 
    which a certificate of discharge has been issued if the person 
    liable for the tax reacquires such property after such certificate 
    has been issued.

(g) Filing of certificates and notices

    If a certificate or notice issued pursuant to this section may not 
be filed in the office designated by State law in which the notice of 
lien imposed by section 6321 is filed, such certificate or notice shall 
be effective if filed in the office of the clerk of the United States 
district court for the judicial district in which such office is 
situated.

(h) Cross reference

            For provisions relating to bonds, see chapter 73 (sec. 7101 
        and following).

(Aug. 16, 1954, ch. 736, 68A Stat. 783; Pub. L. 85-866, title I, 
Sec. 77, Nov. 2, 1966, 72 Stat. 1662; Pub. L. 89-719, title I, 
Sec. 103(a), Nov. 2, 1966, 80 Stat. 1133; Pub. L. 94-455, title XIX, 
Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 95-600, title 
V, Sec. 513(a), Nov. 6, 1978, 92 Stat. 2883; Pub. L. 97-248, title III, 
Sec. 348(a), Sept. 3, 1982, 96 Stat. 638; Pub. L. 105-206, title III, 
Sec. 3106(a), July 22, 1998, 112 Stat. 732.)


                               Amendments

    1998--Subsec. (b)(4). Pub. L. 105-206 added par. (4).
    1982--Subsec. (a). Pub. L. 97-248 in introductory provisions 
substituted ``shall issue'' for ``may issue'' and ``not later than 30 
days after the day on which'' for ``if''.
    1978--Subsec. (d)(3). Pub. L. 95-600 added par. (3).
    1976--Pub. L. 94-455 struck out ``or his delegate'' after 
``Secretary'' wherever appearing.
    1966--Subsec. (b)(3). Pub. L. 89-719 added par. (3).
    Subsecs. (d), (e). Pub. L. 89-719 added subsecs. (d) and (e). Former 
subsecs. (d) and (e) redesignated, with amendments, as subsecs. (f)(1) 
and (h), respectively.
    Subsec. (f). Pub. L. 89-719 redesignated as par. (1) provisions 
formerly constituting subsec. (d), inserted reference to exceptions 
provided in pars. (2) and (3) and reference to the filing of the 
certificate in the same office as the notice of lien to which it refers 
and expanded the types of certificates to include separate certificates 
of release, discharge, subordination, and nonattachment, and added pars. 
(2) and (3).
    Subsec. (g). Pub. L. 89-719 added subsec. (g).
    Subsec. (h). Pub. L. 89-719 redesignated as subsec. (h) provisions 
formerly constituting subsec. (e) and struck out cross references for 
single bonds, suits to enforce liens, and suits to clear title to 
realty.
    1958--Subsec. (a)(1). Pub. L. 85-866, Sec. 77(1), substituted ``or'' 
for ``,'' after ``satisfied'' and struck out ``, or, in the case of the 
estate tax imposed by chapter 11 or the gift tax imposed by chapter 12, 
has been fully satisfied or provided for'' after ``unenforceable''.
    Subsec. (c). Pub. L. 85-866, Sec. 77(2), added subsec. (c) and 
redesignated former subsec. (c) as (d).
    Subsec. (d). Pub. L. 85-866. Sec. 77(2), (3), redesignated former 
subsec. (c) as (d) and in heading and text struck out ``partial'' before 
``discharge''. Former subsec. (d) redesignated (e).
    Subsec. (e). Pub. L. 85-866, Sec. 77(2), redesignated former subsec. 
(d) as (e).


                    Effective Date of 1998 Amendment

    Pub. L. 105-206, title III, Sec. 3106(c), July 22, 1998, 112 Stat. 
734, provided that: ``The amendments made by this section [amending this 
section and sections 6503 and 7426 of this title] shall take effect on 
the date of the enactment of this Act [July 22, 1998].''


                    Effective Date of 1982 Amendment

    Section 348(b) of Pub. L. 97-248 provided that: ``The amendment made 
by subsection (a) [amending this section] shall apply with respect to 
liens--
        ``(1) which are filed after December 31, 1982,
        ``(2) which are satisfied after December 31, 1982, or
        ``(3) with respect to which the taxpayer after December 31, 
    1982, requests the Secretary of the Treasury or his delegate to 
    issue a certificate of release on the grounds that the liability was 
    satisfied or legally unenforceable.''


                    Effective Date of 1978 Amendment

    Section 513(b) of Pub. L. 95-600 provided that: ``The amendments 
made by subsection (a) [amending this section] shall apply with respect 
to the estates of decedents dying after December 31, 1976.''


                    Effective Date of 1966 Amendment

    Amendment by Pub. L. 89-719 applicable after Nov. 2, 1966, 
regardless of when title or lien of United States arose or when lien or 
interest of another person was acquired, with certain exceptions, see 
section 114(a)-(c) of Pub. L. 89-719, set out as a note under section 
6323 of this title.


                    Effective Date of 1958 Amendment

    Amendment by Pub. L. 85-866 effective Aug. 17, 1954, see section 
1(c)(2) of Pub. L. 85-866, set out as a note under section 165 of this 
title.

                  Section Referred to in Other Sections

    This section is referred to in sections 6503, 7103, 7426, 7432 of 
this title; title 28 section 3201.
