
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: 26USC6335]

 
                     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. 6335. Sale of seized property


(a) Notice of seizure

    As soon as practicable after seizure of property, notice in writing 
shall be given by the Secretary to the owner of the property (or, in the 
case of personal property, the possessor thereof), or shall be left at 
his usual place of abode or business if he has such within the internal 
revenue district where the seizure is made. If the owner cannot be 
readily located, or has no dwelling or place of business within such 
district, the notice may be mailed to his last known address. Such 
notice shall specify the sum demanded and shall contain, in the case of 
personal property, an account of the property seized and, in the case of 
real property, a description with reasonable certainty of the property 
seized.

(b) Notice of sale

    The Secretary shall as soon as practicable after the seizure of the 
property give notice to the owner, in the manner prescribed in 
subsection (a), and shall cause a notification to be published in some 
newspaper published or generally circulated within the county wherein 
such seizure is made, or if there be no newspaper published or generally 
circulated in such county, shall post such notice at the post office 
nearest the place where the seizure is made, and in not less than two 
other public places. Such notice shall specify the property to be sold, 
and the time, place, manner, and conditions of the sale thereof. 
Whenever levy is made without regard to the 10-day period provided in 
section 6331(a), public notice of sale of the property seized shall not 
be made within such 10-day period unless section 6336 (relating to sale 
of perishable goods) is applicable.

(c) Sale of indivisible property

    If any property liable to levy is not divisible, so as to enable the 
Secretary by sale of a part thereof to raise the whole amount of the tax 
and expenses, the whole of such property shall be sold.

(d) Time and place of sale

    The time of sale shall not be less than 10 days nor more than 40 
days from the time of giving public notice under subsection (b). The 
place of sale shall be within the county in which the property is 
seized, except by special order of the Secretary.

(e) Manner and conditions of sale

                           (1) In general

        (A) Determinations relating to minimum price

            Before the sale of property seized by levy, the Secretary 
        shall determine--
                (i) a minimum price below which such property shall not 
            be sold (taking into account the expense of making the levy 
            and conducting the sale), and
                (ii) whether, on the basis of criteria prescribed by the 
            Secretary, the purchase of such property by the United 
            States at such minimum price would be in the best interest 
            of the United States.

        (B) Sale to highest bidder at or above minimum price

            If, at the sale, one or more persons offer to purchase such 
        property for not less than the amount of the minimum price, the 
        property shall be declared sold to the highest bidder.

        (C) Property deemed sold to United States at minimum price in 
                certain cases

            If no person offers the amount of the minimum price for such 
        property at the sale and the Secretary has determined that the 
        purchase of such property by the United States would be in the 
        best interest of the United States, the property shall be 
        declared to be sold to the United States at such minimum price.

        (D) Release to owner in other cases

            If, at the sale, the property is not declared sold under 
        subparagraph (B) or (C), the property shall be released to the 
        owner thereof and the expense of the levy and sale shall be 
        added to the amount of tax for the collection of which the levy 
        was made. Any property released under this subparagraph shall 
        remain subject to any lien imposed by subchapter C.

               (2) Additional rules applicable to sale

        The Secretary shall by regulations prescribe the manner and 
    other conditions of the sale of property seized by levy. If one or 
    more alternative methods or conditions are permitted by regulations, 
    the Secretary shall select the alternatives applicable to the sale. 
    Such regulations shall provide:
            (A) That the sale shall not be conducted in any manner other 
        than--
                (i) by public auction, or
                (ii) by public sale under sealed bids.

            (B) In the case of the seizure of several items of property, 
        whether such items shall be offered separately, in groups, or in 
        the aggregate; and whether such property shall be offered both 
        separately (or in groups) and in the aggregate, and sold under 
        whichever method produces the highest aggregate amount.
            (C) Whether the announcement of the minimum price determined 
        by the Secretary may be delayed until the receipt of the highest 
        bid.
            (D) Whether payment in full shall be required at the time of 
        acceptance of a bid, or whether a part of such payment may be 
        deferred for such period (not to exceed 1 month) as may be 
        determined by the Secretary to be appropriate.
            (E) The extent to which methods (including advertising) in 
        addition to those prescribed in subsection (b) may be used in 
        giving notice of the sale.
            (F) Under what circumstances the Secretary may adjourn the 
        sale from time to time (but such adjournments shall not be for a 
        period to exceed in all 1 month).

                      (3) Payment of amount bid

        If payment in full is required at the time of acceptance of a 
    bid and is not then and there paid, the Secretary shall forthwith 
    proceed to again sell the property in the manner provided in this 
    subsection. If the conditions of the sale permit part of the payment 
    to be deferred, and if such part is not paid within the prescribed 
    period, suit may be instituted against the purchaser for the 
    purchase price or such part thereof as has not been paid, together 
    with interest at the rate of 6 percent per annum from the date of 
    the sale; or, in the discretion of the Secretary, the sale may be 
    declared by the Secretary to be null and void for failure to make 
    full payment of the purchase price and the property may again be 
    advertised and sold as provided in subsections (b) and (c) and this 
    subsection. In the event of such readvertisement and sale any new 
    purchaser shall receive such property or rights to property, free 
    and clear of any claim or right of the former defaulting purchaser, 
    of any nature whatsoever, and the amount paid upon the bid price by 
    such defaulting purchaser shall be forfeited.

                         (4) Cross reference

            For provision providing for civil damages for violation of 
        paragraph (1)(A)(i), see section 7433.

(f) Right to request sale of seized property within 60 days

    The owner of any property seized by levy may request that the 
Secretary sell such property within 60 days after such request (or 
within such longer period as may be specified by the owner). The 
Secretary shall comply with such request unless the Secretary determines 
(and notifies the owner within such period) that such compliance would 
not be in the best interests of the United States.

(g) Stay of sale of seized property pending Tax Court decision

            For restrictions on sale of seized property pending Tax 
        Court decision, see section 6863(b)(3).

(Aug. 16, 1954, ch. 736, 68A Stat. 785; Pub. L. 89-719, title I, 
Sec. 104(d), Nov. 2, 1966, 80 Stat. 1137; Pub. L. 94-455, title XIX, 
Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 99-514, title 
XV, Sec. 1570(a), Oct. 22, 1986, 100 Stat. 2764; Pub. L. 100-647, title 
VI, Sec. 6236(g), Nov. 10, 1988, 102 Stat. 3740; Pub. L. 105-206, title 
III, Sec. 3441(a), (b), July 22, 1998, 112 Stat. 761.)


                               Amendments

    1998--Subsec. (e)(1)(A)(i). Pub. L. 105-206, Sec. 3441(a), 
substituted ``a minimum price below which such property shall not be 
sold'' for ``a minimum price for which such property shall be sold''.
    Subsec. (e)(4). Pub. L. 105-206, Sec. 3441(b), added par. (4).
    1988--Subsecs. (f), (g). Pub. L. 100-647 added subsec. (f) and 
redesignated former subsec. (f) as (g).
    1986--Subsec. (e)(1). Pub. L. 99-514 amended par. (1) generally. 
Prior to amendment, par. (1) ``Minimum price'' read as follows: ``Before 
the sale the Secretary shall determine a minimum price for which the 
property shall be sold, and if no person offers for such property at the 
sale the amount of the minimum price, the property shall be declared to 
be purchased at such price for the United States; otherwise the property 
shall be declared to be sold to the highest bidder. In determining the 
minimum price, the Secretary shall take into account the expense of 
making the levy and sale.''
    1976--Pub. L. 94-455 struck out ``or his delegate'' after 
``Secretary'' wherever appearing.
    1966--Subsec. (b). Pub. L. 89-719 inserted an alternative to the 
publication of notice of sale to allow publication in a newspaper 
generally circulated within the county in which the property is seized 
even though the newspaper is not published in such county.


                    Effective Date of 1998 Amendment

    Pub. L. 105-206, title III, Sec. 3441(c), July 22, 1998, 112 Stat. 
761, provided that: ``The amendments made by this section [amending this 
section] shall apply to sales made after the date of the enactment of 
this Act [July 22, 1998].''


                    Effective Date of 1988 Amendment

    Amendment by Pub. L. 100-647 applicable to requests made on or after 
Jan. 1, 1989, see section 6236(h)(2) of Pub. L. 100-647, set out as a 
note under section 6331 of this title.


                    Effective Date of 1986 Amendment

    Section 1570(b) of Pub. L. 99-514 provided that: ``The amendment 
made by subsection (a) [amending this section] shall apply to--
        ``(1) property seized after the date of the enactment of this 
    Act [Oct. 22, 1986], and
        ``(2) property seized on or before such date which is held by 
    the United States on such date.''


                    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.


                    Uniform Asset Disposal Mechanism

    Pub. L. 105-206, title III, Sec. 3443, July 22, 1998, 112 Stat. 762, 
provided that: ``Not later than the date which is 2 years after the date 
of the enactment of this Act [July 22, 1998], the Secretary of the 
Treasury or the Secretary's delegate shall implement a uniform asset 
disposal mechanism for sales under section 6335 of the Internal Revenue 
Code of 1986. The mechanism should be designed to remove any 
participation in such sales by revenue officers of the Internal Revenue 
Service and should consider the use of outsourcing.''

                  Section Referred to in Other Sections

    This section is referred to in sections 6331, 6337, 6338, 6339, 
6340, 6343, 6502, 7426 of this title.
