
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document affected by Public Law 106-554 Section 1(a)(7)]
[CITE: 26USC6331]

 
                     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
 
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.

(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 paragraphs (3) and (4) 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, 
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, 
Secs. 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

    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.


                               Amendments

    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, Secs. 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, Secs. 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 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.

                  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.
