26 U.S.C. § 6334 : US Code - Section 6334: Property exempt from levy

Search 26 U.S.C. § 6334 : US Code - Section 6334: Property exempt from levy

(a) Enumeration
There shall be exempt from levy -
(1) Wearing apparel and school books
Such items of wearing apparel and such school books as are
necessary for the taxpayer or for members of his family;
(2) Fuel, provisions, furniture, and personal effects
So much of the fuel, provisions, furniture, and personal
effects in the taxpayer's household, and of the arms for personal
use, livestock, and poultry of the taxpayer, as does not exceed
$6,250 in value;
(3) Books and tools of a trade, business, or profession
So many of the books and tools necessary for the trade,
business, or profession of the taxpayer as do not exceed in the
aggregate $3,125 in value.
(4) Unemployment benefits
Any amount payable to an individual with respect to his
unemployment (including any portion thereof payable with respect
to dependents) under an unemployment compensation law of the
United States, of any State, or of the District of Columbia or of
the Commonwealth of Puerto Rico.
(5) Undelivered mail
Mail, addressed to any person, which has not been delivered to
the addressee.
(6) Certain annuity and pension payments
Annuity or pension payments under the Railroad Retirement Act,
benefits under the Railroad Unemployment Insurance Act, special
pension payments received by a person whose name has been entered
on the Army, Navy, Air Force, and Coast Guard Medal of Honor roll
(38 U.S.C. 1562), and annuities based on retired or retainer pay
under chapter 73 of title 10 of the United States Code.
(7) Workmen's compensation
Any amount payable to an individual as workmen's compensation
(including any portion thereof payable with respect to
dependents) under a workmen's compensation law of the United
States, any State, the District of Columbia, or the Commonwealth
of Puerto Rico.
(8) Judgments for support of minor children
If the taxpayer is required by judgment of a court of competent
jurisdiction, entered prior to the date of levy, to contribute to
the support of his minor children, so much of his salary, wages,
or other income as is necessary to comply with such judgment.
(9) Minimum exemption for wages, salary, and other income
Any amount payable to or received by an individual as wages or
salary for personal services, or as income derived from other
sources, during any period, to the extent that the total of such
amounts payable to or received by him during such period does not
exceed the applicable exempt amount determined under subsection
(d).
(10) Certain service-connected disability payments
Any amount payable to an individual as a service-connected
(within the meaning of section 101(16) of title 38, United States
Code) disability benefit under -
(A) subchapter II, III, IV, V,,(!1) or VI of chapter 11 of
such title 38, or
(B) chapter 13, 21, 23, 31, 32, 34, 35, 37, or 39 of such
title 38.
(11) Certain public assistance payments
Any amount payable to an individual as a recipient of public
assistance under -
(A) title IV or title XVI (relating to supplemental security
income for the aged, blind, and disabled) of the Social
Security Act, or
(B) State or local government public assistance or public
welfare programs for which eligibility is determined by a needs
or income test.
(12) Assistance under Job Training Partnership Act
Any amount payable to a participant under the Job Training
Partnership Act (29 U.S.C. 1501 et seq.) from funds appropriated
pursuant to such Act.
(13) Residences exempt in small deficiency cases and principal
residences and certain business assets exempt in absence of
certain approval or jeopardy
(A) Residences in small deficiency cases
If the amount of the levy does not exceed $5,000 -
(i) any real property used as a residence by the taxpayer;
or
(ii) any real property of the taxpayer (other than real
property which is rented) used by any other individual as a
residence.
(B) Principal residences and certain business assets
Except to the extent provided in subsection (e) -
(i) the principal residence of the taxpayer (within the
meaning of section 121); and
(ii) tangible personal property or real property (other
than real property which is rented) used in the trade or
business of an individual taxpayer.
(b) Appraisal
The officer seizing property of the type described in subsection
(a) shall appraise and set aside to the owner the amount of such
property declared to be exempt. If the taxpayer objects at the time
of the seizure to the valuation fixed by the officer making the
seizure, the Secretary shall summon three disinterested individuals
who shall make the valuation.
(c) No other property exempt
Notwithstanding any other law of the United States (including
section 207 of the Social Security Act), no property or rights to
property shall be exempt from levy other than the property
specifically made exempt by subsection (a).
(d) Exempt amount of wages, salary, or other income
(1) Individuals on weekly basis
In the case of an individual who is paid or receives all of his
wages, salary, and other income on a weekly basis, the amount of
the wages, salary, and other income payable to or received by him
during any week which is exempt from levy under subsection (a)(9)
shall be the exempt amount.
(2) Exempt amount
For purposes of paragraph (1), the term "exempt amount" means
an amount equal to -
(A) the sum of -
(i) the standard deduction, and
(ii) the aggregate amount of the deductions for personal
exemptions allowed the taxpayer under section 151 in the
taxable year in which such levy occurs, divided by
(B) 52.
Unless the taxpayer submits to the Secretary a written and
properly verified statement specifying the facts necessary to
determine the proper amount under subparagraph (A), subparagraph
(A) shall be applied as if the taxpayer were a married individual
filing a separate return with only 1 personal exemption.
(3) Individuals on basis other than weekly
In the case of any individual not described in paragraph (1),
the amount of the wages, salary, and other income payable to or
received by him during any applicable pay period or other fiscal
period (as determined under regulations prescribed by the
Secretary) which is exempt from levy under subsection (a)(9)
shall be an amount (determined under such regulations) which as
nearly as possible will result in the same total exemption from
levy for such individual over a period of time as he would have
under paragraph (1) if (during such period of time) he were paid
or received such wages, salary, and other income on a regular
weekly basis.
(e) Levy allowed on principal residences and certain business
assets in certain circumstances
(1) Principal residences
(A) Approval required
A principal residence shall not be exempt from levy if a
judge or magistrate of a district court of the United States
approves (in writing) the levy of such residence.
(B) Jurisdiction
The district courts of the United States shall have exclusive
jurisdiction to approve a levy under subparagraph (A).
(2) Certain business assets
Property (other than a principal residence) described in
subsection (a)(13)(B) shall not be exempt from levy if -
(A) a district director or assistant district director of the
Internal Revenue Service personally approves (in writing) the
levy of such property; or
(B) the Secretary finds that the collection of tax is in
jeopardy.
An official may not approve a levy under subparagraph (A) unless
the official determines that the taxpayer's other assets subject
to collection are insufficient to pay the amount due, together
with expenses of the proceedings.
(f) Levy allowed on certain specified payments
Any payment described in subparagraph (B) or (C) of section
6331(h)(2) shall not be exempt from levy if the Secretary approves
the levy thereon under section 6331(h).
(g) Inflation adjustment
(1) In general
In the case of any calendar year beginning after 1999, each
dollar amount referred to in paragraphs (2) and (3) of subsection
(a) shall be increased by an amount equal to -
(A) such dollar amount, multiplied by
(B) the cost-of-living adjustment determined under section
1(f)(3) for such calendar year, by substituting "calendar year
1998" for "calendar year 1992" in subparagraph (B) thereof.
(2) Rounding
If any dollar amount after being increased under paragraph (1)
is not a multiple of $10, such dollar amount shall be rounded to
the nearest multiple of $10.