I.R.C. § 6342(a) Collection Of Liability —
Any money realized by proceedings under this subchapter
(whether by seizure, by surrender under section 6332 (except pursuant to subsection
(d)(2) thereof), or by sale of seized property) or by sale of property redeemed by
the United States (if the interest of the United States in such property was a lien
arising under the provisions of this title)
shall be applied as follows:
I.R.C. § 6342(a)(2) Specific Tax Liability On Seized Property —
If the property seized and sold is subject to a tax imposed by any internal revenue
law which has not been paid, the amount remaining after applying paragraph (1) shall
then be applied against such tax liability (and, if such tax was not previously assessed,
it shall then be assessed);
I.R.C. § 6342(a)(3) Liability Of Delinquent Taxpayer —
The amount, if any, remaining after applying paragraphs
(1) and (2) shall then be applied against the liability in respect of which the levy
was made or the sale was conducted.
I.R.C. § 6342(b) Surplus Proceeds —
Any surplus proceeds remaining after the application of subsection (a) shall, upon
application and satisfactory proof in support thereof, be credited or refunded by
the Secretary to the person or persons legally entitled thereto.
(Aug. 16, 1954, ch. 736, 68A Stat. 789; Nov. 2, 1966,
Pub. L. 89-719, title I, 104(h), 80 Stat. 1137; Oct. 4, 1976, Pub. L. 94-455, title XIX, 1906(b)(13)(A), 90 Stat. 1834; Pub. L. 115-141, Div. U, title IV, Sec. 401(a)(284), Mar. 23, 2018, 132 Stat. 348.)
BACKGROUND NOTES
AMENDMENTS
2018--Subsec.
(a). Pub. L. 115-141, Div. U, Sec. 401(a)(284), amended subsec. (a) by substituting “subsection
(d)(2)” for “subsection (c)(2)”.
1976--Pub. L. 94-455 struck out “or his delegate” after “Secretary"
wherever appearing.
1966--Subsec. (a). Pub. L. 89-719 inserted in introductory provisions, references to an exception in the case of surrender
under section 6332(c)(2) and to sale of property redeemed by the United States if
the interest of the United States in such property was a lien arising under the provisions
of this title, struck out “under this subchapter” after “proceedings” in par. (1),
and inserted “or the sale was conducted” after “levy was made” in par. (3).
EFFECTIVE DATE OF 2018 AMENDMENT
Amendment by Pub. L. 115-141, Div. U, Sec. 401(a)(284), effective March 23, 2018.
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.
