
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: 26USC6343]

 
                     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. 6343. Authority to release levy and return property


(a) Release of levy and notice of release

                           (1) In general

        Under regulations prescribed by the Secretary, the Secretary 
    shall release the levy upon all, or part of, the property or rights 
    to property levied upon and shall promptly notify the person upon 
    whom such levy was made (if any) that such levy has been released 
    if--
            (A) the liability for which such levy was made is satisfied 
        or becomes unenforceable by reason of lapse of time,
            (B) release of such levy will facilitate the collection of 
        such liability,
            (C) the taxpayer has entered into an agreement under section 
        6159 to satisfy such liability by means of installment payments, 
        unless such agreement provides otherwise,
            (D) the Secretary has determined that such levy is creating 
        an economic hardship due to the financial condition of the 
        taxpayer, or
            (E) the fair market value of the property exceeds such 
        liability and release of the levy on a part of such property 
        could be made without hindering the collection of such 
        liability.

    For purposes of subparagraph (C), the Secretary is not required to 
    release such levy if such release would jeopardize the secured 
    creditor status of the Secretary.

      (2) Expedited determination on certain business property

        In the case of any tangible personal property essential in 
    carrying on the trade or business of the taxpayer, the Secretary 
    shall provide for an expedited determination under paragraph (1) if 
    levy on such tangible personal property would prevent the taxpayer 
    from carrying on such trade or business.

                         (3) Subsequent levy

        The release of levy on any property under paragraph (1) shall 
    not prevent any subsequent levy on such property.

(b) Return of property

    If the Secretary determines that property has been wrongfully levied 
upon, it shall be lawful for the Secretary to return--
        (1) the specific property levied upon,
        (2) an amount of money equal to the amount of money levied upon, 
    or
        (3) an amount of money equal to the amount of money received by 
    the United States from a sale of such property.

Property may be returned at any time. An amount equal to the amount of 
money levied upon or received from such sale may be returned at any time 
before the expiration of 9 months from the date of such levy. For 
purposes of paragraph (3), if property is declared purchased by the 
United States at a sale pursuant to section 6335(e) (relating to manner 
and conditions of sale), the United States shall be treated as having 
received an amount of money equal to the minimum price determined 
pursuant to such section or (if larger) the amount received by the 
United States from the resale of such property.

(c) Interest

    Interest shall be allowed and paid at the overpayment rate 
established under section 6621--
        (1) in a case described in subsection (b)(2), from the date the 
    Secretary receives the money to a date (to be determined by the 
    Secretary) preceding the date of return by not more than 30 days, or
        (2) in a case described in subsection (b)(3), from the date of 
    the sale of the property to a date (to be determined by the 
    Secretary) preceding the date of return by not more than 30 days.

(d) Return of property in certain cases

    If--
        (1) any property has been levied upon, and
        (2) the Secretary determines that--
            (A) the levy on such property was premature or otherwise not 
        in accordance with administrative procedures of the Secretary,
            (B) the taxpayer has entered into an agreement under section 
        6159 to satisfy the tax liability for which the levy was imposed 
        by means of installment payments, unless such agreement provides 
        otherwise,
            (C) the return of such property will facilitate the 
        collection of the tax liability, or
            (D) with the consent of the taxpayer or the National 
        Taxpayer Advocate, the return of such property would be in the 
        best interests of the taxpayer (as determined by the National 
        Taxpayer Advocate) and the United States,

the provisions of subsection (b) shall apply in the same manner as if 
such property had been wrongly levied upon, except that no interest 
shall be allowed under subsection (c).

(e) Release of levy upon agreement that amount is not collectible

    In the case of a levy on the salary or wages payable to or received 
by the taxpayer, upon agreement with the taxpayer that the tax is not 
collectible, the Secretary shall release such levy as soon as 
practicable.

(Aug. 16, 1954, ch. 736, 68A Stat. 789; Pub. L. 89-719, title I, 
Sec. 104(i), Nov. 2, 1966, 80 Stat. 1138; Pub. L. 94-455, title XIX, 
Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 96-167, 
Sec. 4(a), Dec. 29, 1979, 93 Stat. 1275; Pub. L. 99-514, title XV, 
Sec. 1511(c)(10), Oct. 22, 1986, 100 Stat. 2745; Pub. L. 100-647, title 
VI, Sec. 6236(f), Nov. 10, 1988, 102 Stat. 3740; Pub. L. 104-168, title 
V, Sec. 501(b), July 30, 1996, 110 Stat. 1460; Pub. L. 105-206, title I, 
Sec. 1102(d)(1)(B), title III, Sec. 3432(a), July 22, 1998, 112 Stat. 
704, 759.)


                               Amendments

    1998--Subsec. (d)(2)(D). Pub. L. 105-206, Sec. 1102(d)(1)(B), 
substituted ``National Taxpayer Advocate'' for ``Taxpayer Advocate'' in 
two places.
    Subsec. (e). Pub. L. 105-206, Sec. 3432(a), added subsec. (e).
    1996--Subsec. (d). Pub. L. 104-168 added subsec. (d).
    1988--Subsec. (a). Pub. L. 100-647 inserted ``and notice of 
release'' after ``levy'' in heading and amended text generally. Prior to 
amendment, text read as follows: ``It shall be lawful for the Secretary, 
under regulations prescribed by the Secretary, to release the levy upon 
all or part of the property or rights to property levied upon where the 
Secretary determines that such action will facilitate the collection of 
the liability, but such release shall not operate to prevent any 
subsequent levy.''
    1986--Subsec. (c). Pub. L. 99-514 substituted ``the overpayment rate 
established under section 6621'' for ``an annual rate established under 
section 6621''.
    1979--Subsec. (c). Pub. L. 96-167 added subsec. (c).
    1976--Pub. L. 94-455 struck out ``or his delegate'' after 
``Secretary'' wherever appearing.
    1966--Pub. L. 89-719 inserted ``and return property'' in section 
catchline, designated existing provisions as subsec. (a), and added 
subsec. (b).


                    Effective Date of 1998 Amendment

    Amendment by section 1102 of Pub. L. 105-206 effective July 22, 
1998, see section 1102(f) of Pub. L. 105-206, set out as a note under 
section 7803 of this title.
    Pub. L. 105-206, title III, Sec. 3432(b), July 22, 1998, 112 Stat. 
759, provided that: ``The amendment made by this section [amending this 
section] shall apply to levies imposed after December 31, 1999.''


                    Effective Date of 1988 Amendment

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


                    Effective Date of 1986 Amendment

    Amendment by Pub. L. 99-514 applicable for purposes of determining 
interest for periods after Dec. 31, 1986, see section 1511(d) of Pub. L. 
99-514, set out as a note under section 47 of this title.


                    Effective Date of 1979 Amendment

    Section 4(c)(1) of Pub. L. 96-167 provided that: ``The amendment 
made by subsection (a) [amending this section] shall apply to levies 
made after the date of the enactment of this Act [Dec. 29, 1979].''


                    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 6331, 6502, 6503, 6532 of 
this title.
