26 U.S.C. § 6343 : US Code - Section 6343: Authority to release levy and return property

Search 26 U.S.C. § 6343 : US Code - Section 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.