§ 6331. Levy and distraint
(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.
(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).
(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.
(d)
Requirement of notice before levy
(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.
(2)
30-day requirement
The notice required under paragraph (1) shall be—
no less than 30 days before the day of the levy.
(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.
(4)
Information included with notice
The notice required under paragraph (1) shall include a brief statement which sets forth in simple and nontechnical terms—
(C)
the administrative appeals available to the taxpayer with respect to such levy and sale and the procedures relating to such appeals,
(D)
the alternatives available to taxpayers which could prevent levy on the property (including installment agreements under section
6159),
(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.
(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.
(g)
Levy on appearance date of summons
(h)
Continuing levy on certain payments
(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)
No levy during pendency of proceedings for refund of divisible tax
(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—
(3)
Exceptions
(A)
Certain unpaid taxes
This subsection shall not apply with respect to any unpaid tax if—
(4)
Limitation on collection activity; authority to enjoin collection
(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.
(j)
No levy before investigation of status of property
(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.
(k)
No levy while certain offers pending or installment agreement pending or in effect
(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—
(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
(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.
(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—
(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;
(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);