26 U.S.C. § 6342 : US Code - Section 6342: Application of proceeds of levy

Search 26 U.S.C. § 6342 : US Code - Section 6342: Application of proceeds of levy

(a) Collection of liability
Any money realized by proceedings under this subchapter (whether
by seizure, by surrender under section 6332 (except pursuant to
subsection (c)(2) (!1) 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:
(1) Expense of levy and sale
First, against the expenses of the proceedings;
(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);
(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.
(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.