26 U.S.C. § 6330 — Notice and opportunity for hearing before

Page 3575 TITLE 26—INTERNAL REVENUE CODE § 6330 shall be allowed to appeal to the Secretary after the filing of a notice of a lien under this sub- chapter on the property or the rights to prop- erty of such person for a release of such lien al- leging an error in the filing of the notice of such lien. (b) Certificate of release If the Secretary determines that the filing of the notice of any lien was erroneous, the Sec- retary shall expeditiously (and, to the extent practicable, within 14 days after such deter- mination) issue a certificate of release of such lien and shall include in such certificate a state- ment that such filing was erroneous. (Added Pub. L. 100–647, title VI, § 6238(a), Nov. 10, 1988, 102 Stat. 3743.) Editorial Notes PRIOR PROVISIONS A prior section 6326 was renumbered 6327 of this title. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Pub. L. 100–647, title VI, § 6238(d), Nov. 10, 1988, 102 Stat. 3743, provided that: ‘‘The amendments made by this section [enacting this section] shall take effect on the date which is 60 days after the date regulations are issued under subsection (b) [set out below].’’ REGULATIONS Pub. L. 100–647, title VI, § 6238(b), Nov. 10, 1988, 102 Stat. 3743, required Secretary of the Treasury or Sec- retary’s delegate to prescribe regulations necessary to implement administrative appeal provided for in amendment made by subsection (a) [enacting this sec- tion] within 180 days after Nov. 10, 1988. § 6327. Cross references (1) For lien in case of tax on distilled spirits, see section 5004. (2) For exclusion of tax liability from discharge in cases under title 11 of the United States Code, see section 523 of such title 11. (3) For recognition of tax liens in cases under title 11 of the United States Code, see sections 545 and 724 of such title 11. (4) For collection of taxes in connection with plans for individuals with regular income in cases under title 11 of the United States Code, see section 1328 of such title 11. (5) For provisions permitting the United States to be made party defendant in a proceeding in a State court for the foreclosure of a lien upon real estate where the United States may have a claim upon the premises involved, see section 2410 of Title 28 of the United States Code. (6) For priority of lien of the United States in case of insolvency, see section 3713(a) of title 31, United States Code. (Aug. 16, 1954, ch. 736, 68A Stat. 782, § 6326; Pub. L. 94–455, title XIX, § 1906(a)(20), Oct. 4, 1976, 90 Stat. 1825; Pub. L. 96–589, § 6(i)(10), Dec. 24, 1980, 94 Stat. 3411; Pub. L. 97–258, § 3(f)(7), Sept. 13, 1982, 96 Stat. 1064; renumbered § 6327, Pub. L. 100–647, title VI, § 6238(a), Nov. 10, 1988, 102 Stat. 3743.) Editorial Notes AMENDMENTS 1982—Par. (6). Pub. L. 97–258 substituted ‘‘section 3713(a) of title 31, United States Code’’ for ‘‘R.S. 3466 (31 U.S.C. 191)’’. 1980—Par. (2). Pub. L. 96–589, § 6(i)(10)(A), substituted ‘‘cases under title 11 of the United States Code, see sec- tion 523 of such title 11’’ for ‘‘bankruptcy, see section 17 of the Bankruptcy Act, as amended (11 U.S.C. 35)’’. Par. (3). Pub. L. 96–589, § 6(i)(10)(A), redesignated par. (4) as (3) and substituted ‘‘cases under title 11 of the United States Code, see sections 545 and 724 of such title 11’’ for ‘‘proceedings under the Bankruptcy Act, see section 67(b) and (c) of that act, as amended (11 U.S.C. 107)’’. Former par. (3), which provided cross ref- erence to section 93 of title 11 for limit on amount al- lowed in bankruptcy proceedings on debts owing to the United States, was struck out. Par. (4). Pub. L. 96–589, § 6(i)(10)(A), redesignated par. (5) as (4) and substituted ‘‘plans for individuals with regular income in cases under title 11 of the United States Code, see section 1328 of such title 11’’ for ‘‘wage earners’ plans in bankruptcy courts, see section 680 of the Bankruptcy Act, as added by the act of June 22, 1938 (11 U.S.C. 1080)’’. Former par. (4) redesignated (3). Pars. (5) to (7). Pub. L. 96–589, § 6(i)(10)(A), (B), redes- ignated pars. (6) and (7) as (5) and (6), respectively. Former par. (5) redesignated (4). 1976—Pars. (2) to (5). Pub. L. 94–455 struck out par- enthetical references to ‘‘52 Stat. 851;’’, ‘‘52 Stat. 867;’’, ‘‘52 Stat. 867–877;’’ and ‘‘52 Stat. 938;’’ preceding par- enthetical references to sections of title 11. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1980 AMENDMENT Amendment by Pub. L. 96–589 effective Oct. 1, 1979, but not applicable to proceedings under Title 11, Bank- ruptcy, commenced before Oct. 1, 1979, see section 7(e) of Pub. L. 96–589, set out as a note under section 108 of this title. Subchapter D—Seizure of Property for Collection of Taxes Part I. Due process for collections. II. Levy. Editorial Notes AMENDMENTS 1998—Pub. L. 105–206, title III, § 3401(b), July 22, 1998, 112 Stat. 747, added part analysis. PART I—DUE PROCESS FOR COLLECTIONS Sec. 6330. Notice and opportunity for hearing before levy. Editorial Notes AMENDMENTS 1998—Pub. L. 105–206, title III, § 3401(b), July 22, 1998, 112 Stat. 747, added part heading and analysis con- sisting of item 6330. § 6330. Notice and opportunity for hearing before levy (a) Requirement of notice before levy (1) In general No levy may be made on any property or right to property of any person unless the Sec- retary has notified such person in writing of their right to a hearing under this section be- fore such levy is made. Such notice shall be re- quired only once for the taxable period to which the unpaid tax specified in paragraph (3)(A) relates. (2) Time and method for notice The notice required under paragraph (1) shall be— Page 3576 TITLE 26—INTERNAL REVENUE CODE § 6330 (A) given in person; (B) left at the dwelling or usual place of business of such person; or (C) sent by certified or registered mail, re- turn receipt requested, to such person’s last known address; not less than 30 days before the day of the first levy with respect to the amount of the unpaid tax for the taxable period. (3) Information included with notice The notice required under paragraph (1) shall include in simple and nontechnical terms— (A) the amount of unpaid tax; (B) the right of the person to request a hearing during the 30-day period under para- graph (2); and (C) the proposed action by the Secretary and the rights of the person with respect to such action, including a brief statement which sets forth— (i) the provisions of this title relating to levy and sale of property; (ii) the procedures applicable to the levy and sale of property under this title; (iii) the administrative appeals available to the taxpayer with respect to such levy and sale and the procedures relating to such appeals; (iv) the alternatives available to tax- payers which could prevent levy on prop- erty (including installment agreements under section 6159); and (v) the provisions of this title and proce- dures relating to redemption of property and release of liens on property. (b) Right to fair hearing (1) In general If the person requests a hearing in writing under subsection (a)(3)(B) and states the grounds for the requested hearing, such hear- ing shall be held by the Internal Revenue Service Independent Office of Appeals. (2) One hearing per period A person shall be entitled to only one hear- ing under this section with respect to the tax- able period to which the unpaid tax specified in subsection (a)(3)(A) relates. (3) Impartial officer The hearing under this subsection shall be conducted by an officer or employee who has had no prior involvement with respect to the unpaid tax specified in subsection (a)(3)(A) be- fore the first hearing under this section or sec- tion 6320. A taxpayer may waive the require- ment of this paragraph. (c) Matters considered at hearing In the case of any hearing conducted under this section— (1) Requirement of investigation The appeals officer shall at the hearing ob- tain verification from the Secretary that the requirements of any applicable law or admin- istrative procedure have been met. (2) Issues at hearing (A) In general The person may raise at the hearing any relevant issue relating to the unpaid tax or the proposed levy, including— (i) appropriate spousal defenses; (ii) challenges to the appropriateness of collection actions; and (iii) offers of collection alternatives, which may include the posting of a bond, the substitution of other assets, an install- ment agreement, or an offer-in-com- promise. (B) Underlying liability The person may also raise at the hearing challenges to the existence or amount of the underlying tax liability for any tax period if the person did not receive any statutory no- tice of deficiency for such tax liability or did not otherwise have an opportunity to dis- pute such tax liability. (3) Basis for the determination The determination by an appeals officer under this subsection shall take into consider- ation— (A) the verification presented under para- graph (1); (B) the issues raised under paragraph (2); and (C) whether any proposed collection action balances the need for the efficient collection of taxes with the legitimate concern of the person that any collection action be no more intrusive than necessary. (4) Certain issues precluded An issue may not be raised at the hearing if— (A)(i) the issue was raised and considered at a previous hearing under section 6320 or in any other previous administrative or judi- cial proceeding; and (ii) the person seeking to raise the issue participated meaningfully in such hearing or proceeding; (B) the issue meets the requirement of clause (i) or (ii) of section 6702(b)(2)(A); or (C) a final determination has been made with respect to such issue in a proceeding brought under subchapter C of chapter 63. This paragraph shall not apply to any issue with respect to which subsection (d)(3)(B) ap- plies. (d) Proceeding after hearing (1) Petition for review by Tax Court The person may, within 30 days of a deter- mination under this section, petition the Tax Court for review of such determination (and the Tax Court shall have jurisdiction with re- spect to such matter). (2) Suspension of running of period for filing petition in title 11 cases In the case of a person who is prohibited by reason of a case under title 11, United States Code, from filing a petition under paragraph (1) with respect to a determination under this section, the running of the period prescribed Page 3577 TITLE 26—INTERNAL REVENUE CODE § 6330 by such subsection for filing such a petition with respect to such determination shall be suspended for the period during which the per- son is so prohibited from filing such a peti- tion, and for 30 days thereafter. (3) Jurisdiction retained at IRS Independent Office of Appeals The Internal Revenue Service Independent Office of Appeals shall retain jurisdiction with respect to any determination made under this section, including subsequent hearings re- quested by the person who requested the origi- nal hearing on issues regarding— (A) collection actions taken or proposed with respect to such determination; and (B) after the person has exhausted all ad- ministrative remedies, a change in cir- cumstances with respect to such person which affects such determination. (e) Suspension of collections and statute of limi- tations (1) In general Except as provided in paragraph (2), if a hearing is requested under subsection (a)(3)(B), the levy actions which are the subject of the requested hearing and the running of any pe- riod of limitations under section 6502 (relating to collection after assessment), section 6531 (relating to criminal prosecutions), or section 6532 (relating to other suits) shall be sus- pended for the period during which such hear- ing, and appeals therein, are pending. In no event shall any such period expire before the 90th day after the day on which there is a final determination in such hearing. Notwith- standing the provisions of section 7421(a), the beginning of a levy or proceeding during the time the suspension under this paragraph is in force may be enjoined by a proceeding in the proper court, including the Tax Court. The Tax Court shall have no jurisdiction under this paragraph to enjoin any action or pro- ceeding unless a timely appeal has been filed under subsection (d)(1) and then only in re- spect of the unpaid tax or proposed levy to which the determination being appealed re- lates. (2) Levy upon appeal Paragraph (1) shall not apply to a levy ac- tion while an appeal is pending if the under- lying tax liability is not at issue in the appeal and the court determines that the Secretary has shown good cause not to suspend the levy. (f) Exceptions If— (1) the Secretary has made a finding under the last sentence of section 6331(a) that the collection of tax is in jeopardy, (2) the Secretary has served a levy on a State to collect a Federal tax liability from a State tax refund, (3) the Secretary has served a disqualified employment tax levy, or (4) the Secretary has served a Federal con- tractor levy, this section shall not apply, except that the tax- payer shall be given the opportunity for the hearing described in this section within a rea- sonable period of time after the levy. (g) Frivolous requests for hearing, etc. Notwithstanding any other provision of this section, if the Secretary determines that any portion of a request for a hearing under this sec- tion or section 6320 meets the requirement of clause (i) or (ii) of section 6702(b)(2)(A), then the Secretary may treat such portion as if it were never submitted and such portion shall not be subject to any further administrative or judicial review. (h) Definitions related to exceptions For purposes of subsection (f)— (1) Disqualified employment tax levy A disqualified employment tax levy is any levy in connection with the collection of em- ployment taxes for any taxable period if the person subject to the levy (or any predecessor thereof) requested a hearing under this section with respect to unpaid employment taxes aris- ing in the most recent 2-year period before the beginning of the taxable period with respect to which the levy is served. For purposes of the preceding sentence, the term ‘‘employment taxes’’ means any taxes under chapter 21, 22, 23, or 24. (2) Federal contractor levy A Federal contractor levy is any levy if the person whose property is subject to the levy (or any predecessor thereof) is a Federal con- tractor. (Added Pub. L. 105–206, title III, § 3401(b), July 22, 1998, 112 Stat. 747; amended Pub. L. 106–554, § 1(a)(7) [title III, § 313(b)(2)(A), (d)], Dec. 21, 2000, 114 Stat. 2763, 2763A–642, 2763A–643; Pub. L. 109–280, title VIII, § 855(a), Aug. 17, 2006, 120 Stat. 1019; Pub. L. 109–432, div. A, title IV, § 407(b), Dec. 20, 2006, 120 Stat. 2961; Pub. L. 110–28, title VIII, § 8243(a), (b), May 25, 2007, 121 Stat. 200; Pub. L. 111–240, title II, § 2104(a)–(c), Sept. 27, 2010, 124 Stat. 2565; Pub. L. 114–74, title XI, § 1101(d), Nov. 2, 2015, 129 Stat. 637; Pub. L. 114–113, div. Q, title IV, § 424(b)(1), Dec. 18, 2015, 129 Stat. 3124; Pub. L. 115–141, div. U, title IV, § 401(a)(281), (282), Mar. 23, 2018, 132 Stat. 1197; Pub. L. 116–25, title I, § 1001(b)(1)(C), (3), July 1, 2019, 133 Stat. 985.) Editorial Notes AMENDMENTS 2019—Subsec. (b)(1). Pub. L. 116–25, § 1001(b)(1)(C), sub- stituted ‘‘Internal Revenue Service Independent Office of Appeals’’ for ‘‘Internal Revenue Service Office of Ap- peals’’. Subsec. (d)(3). Pub. L. 116–25 inserted ‘‘Independent’’ after ‘‘IRS’’ in heading and substituted ‘‘Internal Rev- enue Service Independent Office of Appeals’’ for ‘‘Inter- nal Revenue Service Office of Appeals’’ in introductory provisions. 2018—Subsec. (c)(4). Pub. L. 115–141, § 401(a)(281), sub- stituted ‘‘subsection (d)(3)(B)’’ for ‘‘subsection (d)(2)(B)’’ in concluding provisions. Subsec. (d)(2). Pub. L. 115–141, § 401(a)(282), substituted ‘‘thereafter.’’ for ‘‘thereafter, and’’. 2015—Subsec. (c)(4)(C). Pub. L. 114–74 added subpar. (C). Subsec. (d)(1). Pub. L. 114–113, § 424(b)(1)(A), (B), sub- stituted ‘‘Petition for review by Tax Court’’ for ‘‘Judi- cial review of determination’’ in heading and ‘‘petition the Tax Court for review of such determination’’ for ‘‘appeal such determination to the Tax Court’’ in text. Page 3578 TITLE 26—INTERNAL REVENUE CODE § 6331 Subsec. (d)(2), (3). Pub. L. 114–113, § 424(b)(1)(C), (D), added par. (2) and redesignated former par. (2) as (3). 2010—Subsec. (f). Pub. L. 111–240, § 2104(c), substituted ‘‘Exceptions’’ for ‘‘Jeopardy and State refund collec- tion’’ in heading. Subsec. (f)(4). Pub. L. 111–240, § 2104(a), added par. (4). Subsec. (h). Pub. L. 111–240, § 2104(b), substituted ‘‘Definitions related to exceptions’’ for ‘‘Disqualified employment tax levy’’ in heading, inserted introduc- tory provisions and par. (1) designation and heading, substituted ‘‘A disqualified employment tax levy is’’ for ‘‘For purposes of subsection (f), a disqualified em- ployment tax levy is’’, and added par. (2). 2007—Subsec. (f)(3). Pub. L. 110–28, § 8243(a), added par. (3). Subsec. (h). Pub. L. 110–28, § 8243(b), added subsec. (h). 2006—Subsec. (b)(1). Pub. L. 109–432, § 407(b)(3), sub- stituted ‘‘in writing under subsection (a)(3)(B) and states the grounds for the requested hearing’’ for ‘‘under subsection (a)(3)(B)’’. Subsec. (c)(4)(A), (B). Pub. L. 109–432, § 407(b)(2), redes- ignated subpars. (A) and (B) as cls. (i) and (ii), respec- tively, of subpar. (A), in cl. (ii) substituted ‘‘; or’’ for period at end, and added subpar. (B). Subsec. (d)(1). Pub. L. 109–280, § 855(a), reenacted head- ing without change and amended text of par. (1) gen- erally. Prior to amendment, text read as follows: ‘‘The person may, within 30 days of a determination under this section, appeal such determination— ‘‘(A) to the Tax Court (and the Tax Court shall have jurisdiction with respect to such matter); or ‘‘(B) if the Tax Court does not have jurisdiction of the underlying tax liability, to a district court of the United States. If a court determines that the appeal was to an incor- rect court, a person shall have 30 days after the court determination to file such appeal with the correct court.’’ Subsec. (g). Pub. L. 109–432, § 407(b)(1), added subsec. (g). 2000—Subsec. (d)(1)(A). Pub. L. 106–554, § 1(a)(7) [title III, § 313(d)], substituted ‘‘with respect to’’ for ‘‘to hear’’. Subsec. (e)(1). Pub. L. 106–554, § 1(a)(7) [title III, § 313(b)(2)(A)], inserted at end ‘‘Notwithstanding the provisions of section 7421(a), the beginning of a levy or proceeding during the time the suspension under this paragraph is in force may be enjoined by a proceeding in the proper court, including the Tax Court. The Tax Court shall have no jurisdiction under this paragraph to enjoin any action or proceeding unless a timely ap- peal has been filed under subsection (d)(1) and then only in respect of the unpaid tax or proposed levy to which the determination being appealed relates.’’ Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2015 AMENDMENT Pub. L. 114–113, div. Q, title IV, § 424(b)(2), Dec. 18, 2015, 129 Stat. 3124, provided that: ‘‘The amendments made by this subsection [amending this section] shall apply to petitions filed under section 6330 of the Inter- nal Revenue Code of 1986 after the date of the enact- ment of this Act [Dec. 18, 2015].’’ Amendment by Pub. L. 114–74 applicable to returns filed for partnership taxable years beginning after Dec. 31, 2017, with certain exceptions, see section 1101(g) of Pub. L. 114–74, set out as an Effective Date note under section 6221 of this title. EFFECTIVE DATE OF 2010 AMENDMENT Pub. L. 111–240, title II, § 2104(d), Sept. 27, 2010, 124 Stat. 2565, provided that: ‘‘The amendments made by this section [amending this section] shall apply to lev- ies issued after the date of the enactment of this Act [Sept. 27, 2010].’’ EFFECTIVE DATE OF 2007 AMENDMENT Pub. L. 110–28, title VIII, § 8243(c), May 25, 2007, 121 Stat. 200, provided that: ‘‘The amendments made by this section [amending this section] shall apply to lev- ies served on or after the date that is 120 days after the date of the enactment of this Act [May 25, 2007].’’ EFFECTIVE DATE OF 2006 AMENDMENT Amendment by Pub. L. 109–432 applicable to submis- sions made and issues raised after the date on which the Secretary first prescribes a list under section 6702(c) of this title, see section 407(f) of Pub. L. 109–432, set out as a note under section 6320 of this title. Pub. L. 109–280, title VIII, § 855(b), Aug. 17, 2006, 120 Stat. 1019, provided that: ‘‘The amendment made by this section [amending this section] shall apply to de- terminations made after the date which is 60 days after the date of the enactment of this Act [Aug. 17, 2006].’’ EFFECTIVE DATE OF 2000 AMENDMENT Amendment by section 1(a)(7) [title III, § 313(b)(2)(A)] of Pub. L. 106–554 effective Dec. 21, 2000, and amend- ment by section 1(a)(7) [title III, § 313(d)] of Pub. L. 106–554, effective as if included in the provisions of the Internal Revenue Service Restructuring and Reform Act of 1998, Pub. L. 105–206, to which such amendment relates, see section 1(a)(7) [title III, § 313(f)] of Pub. L. 106–554, set out as a note under section 6015 of this title. EFFECTIVE DATE Section applicable to collection actions initiated after the date which is 180 days after July 22, 1998, see section 3401(d) of Pub. L. 105–206, set out as a note under section 6320 of this title. PART II—LEVY Sec. 6331. Levy and distraint. 6332. Surrender of property subject to levy. 6333. Production of books. 6334. Property exempt from levy. 6335. Sale of seized property. 6336. Sale of perishable goods. 6337. Redemption of property. 6338. Certificate of sale; deed of real property. 6339. Legal effect of certificate of sale of personal property and deed of real property. 6340. Records of sale. 6341. Expense of levy and sale. 6342. Application of proceeds of levy. 6343. Authority to release levy and return prop- erty. 6344. Cross references. Editorial Notes AMENDMENTS 1998—Pub. L. 105–206, title III, § 3401(b), July 22, 1998, 112 Stat. 749, added part heading. 1966—Pub. L. 89–719, title I, § 104(j), Nov. 2, 1966, 80 Stat. 1138, inserted ‘‘and return property’’ in item 6343. § 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 no- tice and demand, it shall be lawful for the Sec- retary 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