Fillable Form 668-B - Levy (Page 8 of 8) in pdf

Applicable Sections of the Internal Revenue Code

(2) Certain business assets.—Property (other than a principal residence) described in

Sec. 6321. Lien for taxes

subsection (a)(13)(B) shall not be exempt from levy if—

Sec. 6322. Period of lien

Sec. 6323. Validity and Priority Against Certain Persons

(A) a district director or assistant district director of the Internal Revenue Service

Sec. 6324. Special Liens for Estate and Gift Taxes

personally approves (in writing) the levy of such property; or

Sec. 6325. Release of lien or discharge of property

Sec. 6331. Levy and distraint

(B) the Secretary finds that the collection of tax is in jeopardy.

Sec. 6332. Surrender of property subject to levy

An official may not approve a levy under subparagraph (A) unless the official determines that

Sec. 6334. Property exempt from levy

the taxpayer's other assets subject to collection are insufficient to pay the amount due, together

Sec. 6335. Sale of Seized Property

with expenses of the proceedings.

Sec. 6339. Legal Effect of Certificate of Sale of Personal

Property and Deed of Real Property

(g) Inflation adjustment.

Sec. 6343. Authority to Release Levy and Return

Property

(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

Sec. 7429. Review of Jeopardy Levy or Assessment

to—

Procedures

(A) such dollar amount, multiplied by

Sec. 6331. Levy and Distraint

(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.

(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

Sec. 6335. Sale of Seized Property

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)

(1) Right to Request Sale of Seized Property Within 60 Days.—The owner of any

belonging to such person or on which there is a lien provided in this chapter for the payment of

property seized by levy may request that the Secretary sell such property within 60 days after

such tax. Levy may be made upon the accrued salary or wages of any officer, employee, or

such request (or within such longer period as may be specified by the owner). The Secretary

elected official, of the United States, the District of Columbia, or any agency or instrumentality

shall comply with such request unless the Secretary determines (and notifies the owner within

of the United States or the District of Columbia by serving a notice of levy on the employer (as

such period) that such compliance would not be in the best interests of the United States.

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

Sec. 6343. Authority to Release Levy and Return Property

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

(a) Release of Levy and Notice of Release.—

section.

(1) In general.—Under regulations prescribed by the Secretary, the Secretary shall

(b) Seizure and Sale of Property.—The term “levy” as used in this title includes the power

release the levy upon all, or part of, the property or rights to property levied upon and shall

of distraint and seizure by any means. Except as otherwise provided in subsection (e), a levy

promptly notify the person upon whom such levy was made (if any) that such levy has been

shall extend only to property possessed and obligations existing at the time thereof. In any case

released if—

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).

(A) the liability for which such levy was made is satisfied or becomes unenforceable by

reason of lapse of time,

(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

(B) release of such levy will facilitate the collection of such liability,

Secretary with respect to the levy and sale of such property exceeds the fair market value of

such property at the time of levy.

liability by means of installment payments, unless such agreement provides otherwise,

Sec. 6334. Property Exempt from Levy.

(D) the Secretary has determined that such levy is creating an economic hardship due

to the financial condition of the taxpayer, or

(a) Enumeration.—There shall be exempt from levy–

(E) the fair market value of the property exceeds such liability and release of the levy

(1) Wearing apparel and school books.—Such items of wearing apparel and such

on a part of such property could be made without hindering the collection of such liability.

school books as are necessary for the taxpayer or members of his family.

For purposes of subparagraph (C), the Secretary is not required to release such levy if such

(2) Fuel, provisions, furniture, and personal effects.—So much of the fuel, provisions,

release would jeopardize the secured creditor status of the Secretary.

furniture, and personal effects in the taxpayers household, and of the arms for personal use,

livestock, and poultry of the taxpayer, as does not exceed $6,250 in value.

(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

(3) Books and tools of a trade, business or Profession.—So many of the books and

Secretary shall provide for an expedited determination under paragraph (1) if levy on such

tools necessary for the trade, business, or profession of the taxpayer as does not exceed in the

tangible personal property would prevent the taxpayer from carrying on such trade or business.

aggregate $3,125 in value.

(3) Subsequent Levy.—The release of levy on any property under paragraph (1) shall

(13) Residences exempt in small deficiency cases and principal residences and

not prevent any subsequent levy on such property.

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.

(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).

668-B

Form

(Rev. 5-2003)

Catalog No. 20440G

Form 668-B - Levy Page 8

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