I.R.C. § 6331(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.
I.R.C. § 6331(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).
I.R.C. § 6331(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.
I.R.C. § 6331(d) Requirement Of Notice Before Levy
I.R.C. § 6331(d)(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.
I.R.C. § 6331(d)(2) 30-Day Requirement —
The notice required under paragraph (1) shall be—
I.R.C. § 6331(d)(2)(A) —
given in person,
I.R.C. § 6331(d)(2)(B) —
left at the dwelling or usual place of business of such person, or
I.R.C. § 6331(d)(2)(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.
I.R.C. § 6331(d)(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.
I.R.C. § 6331(d)(4) Information Included With Notice —
The notice required under paragraph (1) shall include a brief statement which sets
forth in simple and nontechnical terms—
I.R.C. § 6331(d)(4)(A) —
the provisions of this title relating to levy and sale of property,
I.R.C. § 6331(d)(4)(B) —
the procedures applicable to the levy and sale of property under this title,
I.R.C. § 6331(d)(4)(C) —
the administrative appeals available to the taxpayer with respect to such levy and
sale and the procedures relating to such appeals,
I.R.C. § 6331(d)(4)(D) —
the alternatives available to taxpayers which could prevent levy on the property
(including installment agreements under section 6159),
I.R.C. § 6331(d)(4)(E) —
the provisions of this title relating to redemption of property and release of liens
on property,
I.R.C. § 6331(d)(4)(F) —
the procedures applicable to the redemption of property and the release of a lien
on property under this title, and
I.R.C. § 6331(d)(4)(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.
I.R.C. § 6331(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.
I.R.C. § 6331(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.
I.R.C. § 6331(g) Levy On Appearance Date Of Summons
I.R.C. § 6331(g)(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.
I.R.C. § 6331(g)(2) No Application In Case Of Jeopardy —
This subsection shall not apply if the Secretary finds that the collection of tax
is in jeopardy.
I.R.C. § 6331(h) Continuing Levy On Certain Payments
I.R.C. § 6331(h)(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.
I.R.C. § 6331(h)(2) Specified Payment —
For the purposes of paragraph (1), the term “specified payment” means—
I.R.C. § 6331(h)(2)(A) —
any Federal payment other than a payment for which eligibility is based on the income
or assets
(or both) of a payee,
I.R.C. § 6331(h)(2)(B) —
any payment described in paragraph
(4), (7), (9), or (11) of section 6334(a), and
I.R.C. § 6331(h)(2)(C) —
any annuity or pension payment under the Railroad Retirement Act or benefit under
the Railroad Unemployment Insurance Act.
I.R.C. § 6331(h)(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.R.C. § 6331(i) No Levy During Pendency Of Proceedings For Refund Of Divisible Tax
I.R.C. § 6331(i)(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—
I.R.C. § 6331(i)(1)(A) —
the decision in such proceeding would be res judicata with respect to such unpaid
tax; or
I.R.C. § 6331(i)(1)(B) —
such person would be collaterally estopped from contesting such unpaid tax by reason
of such proceeding.
I.R.C. § 6331(i)(2) Divisible Tax —
For purposes of paragraph (1), the term “divisible tax” means—
I.R.C. § 6331(i)(2)(A) —
any tax imposed by subtitle C;
and
I.R.C. § 6331(i)(2)(B) —
the penalty imposed by section 6672 with respect to any such tax.
I.R.C. § 6331(i)(3) Exceptions
I.R.C. § 6331(i)(3)(A) Certain Unpaid Taxes —
This subsection shall not apply with respect to any unpaid tax if—
I.R.C. § 6331(i)(3)(A)(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
I.R.C. § 6331(i)(3)(A)(ii) —
the Secretary finds that the collection of such tax is in jeopardy.
I.R.C. § 6331(i)(3)(B) Certain Levies —
This subsection shall not apply to—
I.R.C. § 6331(i)(3)(B)(i) —
any levy to carry out an offset under section 6402;
and
I.R.C. § 6331(i)(3)(B)(ii) —
any levy which was first made before the date that the applicable proceeding under
this subsection commenced.
I.R.C. § 6331(i)(4) Limitation On Collection Activity; Authority To Enjoin Collection
I.R.C. § 6331(i)(4)(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.R.C. § 6331(i)(4)(A)(i) —
any counterclaim in a proceeding under such paragraph; or
I.R.C. § 6331(i)(4)(A)(ii) —
any proceeding relating to a proceeding under such paragraph.
I.R.C. § 6331(i)(4)(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.
I.R.C. § 6331(i)(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.
I.R.C. § 6331(i)(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.
I.R.C. § 6331(j) No Levy Before Investigation Of Status Of Property
I.R.C. § 6331(j)(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.
I.R.C. § 6331(j)(2) Elements In Investigation —
For purposes of paragraph (1), an investigation of the status of any property shall
include—
I.R.C. § 6331(j)(2)(A) —
a verification of the taxpayer's liability;
I.R.C. § 6331(j)(2)(B) —
the completion of an analysis under subsection (f);
I.R.C. § 6331(j)(2)(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
I.R.C. § 6331(j)(2)(D) —
a thorough consideration of alternative collection methods.
I.R.C. § 6331(k) No Levy While Certain Offers Pending Or Installment Agreement Pending Or In Effect
I.R.C. § 6331(k)(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—
I.R.C. § 6331(k)(1)(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
I.R.C. § 6331(k)(1)(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.
I.R.C. § 6331(k)(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—
I.R.C. § 6331(k)(2)(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;
I.R.C. § 6331(k)(2)(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);
I.R.C. § 6331(k)(2)(C) —
during the period that such an installment agreement for payment of such unpaid tax
is in effect;
and
I.R.C. § 6331(k)(2)(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).
I.R.C. § 6331(k)(3) Certain Rules To Apply —
Rules similar to the rules of—
I.R.C. § 6331(k)(3)(A) —
paragraphs (3) and (4) of subsection
(i), and
I.R.C. § 6331(k)(3)(B) —
except in the case of paragraph
(2)(C), paragraph (5) of subsection (i), shall apply for purposes of this subsection.
I.R.C. § 6331(l) Cross References
I.R.C. § 6331(l)(1) —
For provisions relating to jeopardy, see subchapter A of chapter 70.
I.R.C. § 6331(l)(2) —
For proceedings applicable to sale of seized property see section 6335.
I.R.C. § 6331(l)(3) —
For release and notice of release of levy, see section 6343.
(Aug. 16, 1954, ch. 736, 68A Stat. 783; Nov. 2, 1966,
Pub. L. 89-719, title I, 104(a), 80 Stat. 1135; Dec. 10, 1971, Pub. L. 92-178, title II, 211(a), 85 Stat. 520; Oct. 4, 1976, Pub. L. 94-455,
title XII, 1209(d)(1), (2), (4), title XIX, 1906(b)(13)(A), 90 Stat. 1710, 1711,
1834; Sept. 3, 1982, Pub. L. 97-248, title III, 349(a), 96 Stat. 639; July 18, 1984, Pub. L. 98-369, div. A, title VII, 714(o), 98 Stat. 964; Nov. 10, 1988, Pub. L. 100-647, title VI, 6236(a),
(b), (d), 102 Stat. 3737, 3739 ; Pub. L. 105-34, title X, Sec. 1024, Aug. 5, 1997, 111
Stat 788; Pub. L. 105-206, titles III, VI, Secs. 3433(a), 3444(a) 3462(b), 6010(f), July 22, 1998, 112 Stat
685; Pub. L. 106-554, title III, Sec. 313(b)(3), Dec. 21, 2000; Pub. L. 107-147, title IV, Sec. 416(e)(1), Mar. 9, 2002, 116 Stat. 21; Pub. L. 108-357, title VIIII, Sec. 887(a), Oct. 22, 2004, 118 Stat. 1418; Pub. L. 112-56, title III, Sec. 301(a), Nov. 21, 2011, 125 Stat. 711; Pub. L. 113-295, Div. B, title II, Sec. 209, Dec. 19, 2014, 128 Stat. 4010; Pub. L. 114-10, title IV, Sec. 413, Apr. 16, 2015; Pub. L. 114-94, Div. C, title XXXII, Sec. 32101(b)(2), Dec. 4, 2015.)
BACKGROUND NOTES
AMENDMENTS
2015 - Subsec. (d)(4)(E)-(G). Pub. L. 114-94, Sec. 32101(b)(2), amended par. (4) by striking “and” at then end of subpar.
(E); by substituting “, and” for the period at the end of subpar. (F); and by adding
subpar. (G).
Subsec. (h)(3). Pub. L. 114-10, Sec. 413(a), amended par. (3) by substituting “100 percent” for “30 percent”.
2014 - Subsec. (h)(3). Pub. L. 113-295, Div. B, Sec. 209(a), amended par. (3) by substituting “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.” for the period at the end.
2011 - Subsec. (h)(3). Pub. L. 112-56, Sec. 301(a), amended par. (3) by substituting “property, goods, or services”
for “goods or services”.
2004 - Subsec. (h)(3). Pub. L. 108-357, Sec. 887(a), added par. (3).
2002 - Subsec. (k)(3). Pub. L. 107-147, Sec. 416(e)(1), amended par. (3). Prior to amendment it read as follows:
(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.”
2000 - Subsec. (k)(3). Pub. L. 106-554, Sec. 313(b)(3), amended par. (3) by substituting “(3) and (4)” for “(3), (4), and
(5)”.
1998 - Subsec. (h)(1). Pub. L. 105-206, Sec. 6010(f), amended par. (1) by substituting “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), redesignated subsec. (i)
as subsec. (j) and added a new subsec. (i).
Subsec. (j). Pub. L. 105-206, Sec. 3444(a), redesignated subsec. (j)
(as redesignated by Sec. 3433) as subsec. (k) and added a new subsec.
(j).
Subsec. (k). Pub. L. 105-206, Sec. 3462(b), redesignated subsec. (k)
(as redesignated by Secs. 3433 and 3444) as subsec. (l) and added a new subsec. (k).
1997--Subsec. (h). Pub. L. 105-34, Sec. 1024(a), redesignated subsec. (h) as subsec. (i) and added a new subsec. (h).
1988--Subsec. (d)(2). Pub. L. 100-647, 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, 6236(a)(3), added par. (4).
Subsec. (e). Pub. L. 100-647, 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, 6236(d), added subsecs. (f) and (g). Former subsec. (f) redesignated (h).
Subsec. (h). Pub. L. 100-647, 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, 1906(b)(13)(A), struck out “or his delegate” after “Secretary” wherever appearing.
Subsec. (b). Pub. L. 94-455, 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, 1906(b)(13)(A), struck out “or his delegate"
after “Secretary”.
Subsec. (d)(1). Pub. L. 94-455, 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, 1906(b)(13)(A), struck out “or his delegate"
after “Secretary”.
Subsec. (d)(3). Pub. L. 94-455, 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 2015 AMENDMENTS
Amendments by Pub. L. 114-94, Sec. 32101(b)(2), effective on the date of the enactment of this Act [Enacted: Dec. 4, 2015].
Amendment by Pub. L. 114-10, Sec. 413, effective for payments made after 180 days after the date of the enactment
of this Act [Enacted:
Apr. 16, 2015].
EFFECTIVE DATE OF 2014 AMENDMENTS
Amendment by Pub. L. 113-295, Div. A, Sec. 209(a), effective for payments made after 180 days after the date of
the enactment of this Act [Enacted: Dec. 19, 2014].
EFFECTIVE DATE OF 2011 AMENDMENT
Amendment by Pub. L. 112-56, Sec. 301(a) effective for levies issued after the date of the enactment of this Act [Enacted:
Nov. 21, 2011].
EFFECTIVE DATE OF 2004 AMENDMENT
Amendment by Pub. L. 108-357, Sec. 887(a) effective on the date of the enactment of this Act [Enacted: Oct. 22, 2004].
EFFECTIVE DATE OF 2002 AMENDMENT
Amendment by Sec. 416(e)(1) of Pub. L. 107-147 shall take effect on the date of the enactment of this Act [enacted: Mar. 9, 2002].
EFFECTIVE DATE OF 2000 AMENDMENTS
Amendment by Sec. 313(b)(3) of Pub. L. 106-554 shall take effect on the date of the enactment of this Act [enacted: Dec. 21, 2000].
EFFECTIVE DATE OF 1998 AMENDMENTS
Amendments by Sec. 3433(a) of Pub. L. 105-206 effective for unpaid tax attributable to taxable periods beginning after December
31, 1998.
Amendments by Sec. 3444 of Pub. L. 105-206 effective on the date of the enactment of this Act [Enacted: July 22, 1998].
Amendments by Sec. 3462(b) of Pub. L. 105-206 effective for offers-in-compromise pending on or made after December 31, 1999.
Amendment by Sec. 6010(f) of Pub. L. 105-206 effective as if included in the Taxpayer Relief Act of 1997 to which it relates [Effective
Date of Pub. L. 105-34, Sec. 1024:
levies issued after Aug. 5, 1997].
EFFECTIVE DATE OF 1997 AMENDMENTS
Amendments by Sec. 1024(a) of Pub. L. 105-34 applicable to levies issued after the date of the enactment of this Act [enacted:
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 sections 6331, 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 the title or lien of the United
States arose or when the 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.
