Title 26 — Internal Revenue CodeRelease 119-73
§6343 Authority to release levy and return property
Title 26 › Subtitle Subtitle F— - Procedure and Administration › Chapter CHAPTER 64— - COLLECTION › Subchapter Subchapter D— - Seizure of Property for Collection of Taxes › Part PART II— - LEVY › § 6343
Summary
The tax agency must lift a levy on all or part of property and tell the person affected when certain things happen. It must release the levy if the tax is paid or can’t be enforced because of time limits; if releasing it will help collect the tax; if the taxpayer has an installment agreement under section 6159 (unless that agreement says otherwise); if the levy causes economic hardship for the taxpayer; or if the property is worth more than the tax and part can be released without blocking collection. If the seized property is needed for the taxpayer’s business and the levy would stop the business, the agency must decide quickly. A release now does not stop the agency from levying the property again later. If the agency finds property was wrongfully seized, it can return the actual property, the money taken, or the money received from selling the property. Interest is paid at the overpayment rate in section 6621 from the date the agency got the money or from the sale date up to a date no more than 30 days before the return. The agency may also return property if the levy was premature, not done under its rules, the taxpayer has an installment plan, returning it helps collect the tax, or the taxpayer or National Taxpayer Advocate agree it’s best. For wage levies, the agency must release them quickly if the tax is not collectible. If a levy on a retirement account is returned, the person may put back the returned amount plus the interest into an eligible retirement plan; the agency must notify them and the return is treated like a normal rollover for tax rules, with certain exceptions.
Full Legal Text
Title 26, §6343
Internal Revenue Code — Source: USLM XML via OLRC
(a)(1)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.
(2)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)The release of levy on any property under paragraph (1) shall not prevent any subsequent levy on such property.
(b)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.
(c)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)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,
(e)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.
(f)(1)If the Secretary determines that an individual’s account or benefit under an eligible retirement plan (as defined in section 402(c)(8)(B)) has been levied upon in a case to which subsection (b) or (d)(2)(A) applies and property or an amount of money is returned to the individual—
(A)the individual may contribute such property or an amount equal to the sum of—
(i)the amount of money so returned by the Secretary, and
(ii)interest paid under subsection (c) on such amount of money,
(B)the Secretary shall, at the time such property or amount of money is returned, notify such individual that a contribution described in subparagraph (A) may be made.
(2)The distribution on account of the levy and any contribution under paragraph (1) with respect to the return of such distribution shall be treated for purposes of this title as if such distribution and contribution were described in section 402(c), 402A(c)(3), 403(a)(4), 403(b)(8), 408(d)(3), 408A(d)(3), or 457(e)(16), whichever is applicable; except that—
(A)the contribution shall be treated as having been made for the taxable year in which the distribution on account of the levy occurred, and the interest paid under subsection (c) shall be treated as earnings within the plan after the contribution and shall not be included in gross income, and
(B)such contribution shall not be taken into account under section 408(d)(3)(B).
(3)(A)If any amount is includible in gross income for a taxable year by reason of a distribution on account of a levy referred to in paragraph (1) and any portion of such amount is treated as a rollover contribution under paragraph (2), any tax imposed by chapter 1 on such portion shall not be assessed, and if assessed shall be abated, and if collected shall be credited or refunded as an overpayment made on the due date for filing the return of tax for such taxable year.
(B)Subparagraph (A) shall not apply to a rollover contribution under this subsection which is made from an eligible retirement plan which is not a Roth IRA or a designated Roth account (within the meaning of section 402A) to a Roth IRA or a designated Roth account under an eligible retirement plan.
(4)Notwithstanding subsection (d), interest shall be allowed under subsection (c) in a case in which the Secretary makes a determination described in subsection (d)(2)(A) with respect to a levy upon an individual retirement plan.
(5)For purposes of paragraph (1)(A), section 408(d)(3)(C) shall be disregarded in determining whether an individual retirement plan is a plan to which a rollover contribution of a distribution from the plan levied upon is permitted.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
Amendments
2018—Subsec. (f). Pub. L. 115–123 added subsec. (f). 2017—Subsec. (b). Pub. L. 115–97 substituted “2 years” for “9 months” in concluding provisions. 1998—Subsec. (d)(2)(D). Pub. L. 105–206, § 1102(d)(1)(B), substituted “National Taxpayer Advocate” for “Taxpayer Advocate” in two places. Subsec. (e). Pub. L. 105–206, § 3432(a), added subsec. (e). 1996—Subsec. (d). Pub. L. 104–168 added subsec. (d). 1988—Subsec. (a). Pub. L. 100–647 inserted “and notice of release” after “levy” in heading and amended text generally. Prior to amendment, text read as follows: “It shall be lawful for the Secretary, under
Regulations
prescribed by the Secretary, to release the levy upon all or part of the property or rights to property levied upon where the Secretary determines that such action will facilitate the collection of the liability, but such release shall not operate to prevent any subsequent levy.” 1986—Subsec. (c). Pub. L. 99–514 substituted “the overpayment rate established under section 6621” for “an annual rate established under section 6621”. 1979—Subsec. (c). Pub. L. 96–167 added subsec. (c). 1976—Pub. L. 94–455 struck out “or his delegate” after “Secretary” wherever appearing. 1966—Pub. L. 89–719 inserted “and return property” in section catchline, designated existing provisions as subsec. (a), and added subsec. (b).
Statutory Notes and Related Subsidiaries
Effective Date
of 2018 Amendment Pub. L. 115–123, div. D, title II, § 41104(b), Feb. 9, 2018, 132 Stat. 157, provided that: “The amendment made by this section [amending this section] shall apply to amounts paid under subsections (b), (c), and (d)(2)(A) of section 6343 of the Internal Revenue Code of 1986 in taxable years beginning after December 31, 2017.”
Effective Date
of 2017 Amendment Pub. L. 115–97, title I, § 11071(c), Dec. 22, 2017, 131 Stat. 2092, provided that: “The
Amendments
made by this section [amending this section and section 6532 of this title] shall apply to— “(1) levies made after the date of the enactment of this Act [Dec. 22, 2017], and “(2) levies made on or before such date if the 9-month period has not expired under section 6343(b) of the Internal Revenue Code of 1986 (without regard to this section) as of such date.”
Effective Date
of 1998 AmendmentAmendment by section 1102 of Pub. L. 105–206 effective
July 22, 1998, see section 1102(f) of Pub. L. 105–206, set out as a note under section 7803 of this title. Pub. L. 105–206, title III, § 3432(b),
July 22, 1998, 112 Stat. 759, provided that: “The amendment made by this section [amending this section] shall apply to levies imposed after
December 31, 1999.”
Effective Date
of 1988 AmendmentAmendment by Pub. L. 100–647 applicable to levies issued on or after July 1, 1989, see section 6236(h)(1) of Pub. L. 100–647, set out as a note under section 6331 of this title.
Effective Date
of 1986 AmendmentAmendment by Pub. L. 99–514 applicable for purposes of determining interest for periods after Dec. 31, 1986, see section 1511(d) of Pub. L. 99–514, set out as a note under section 47 of this title.
Effective Date
of 1979 Amendment Pub. L. 96–167, § 4(c)(1), Dec. 29, 1979, 93 Stat. 1276, provided that: “The amendment made by subsection (a) [amending this section] shall apply to levies made after the date of the enactment of this Act [Dec. 29, 1979].”
Effective Date
of 1966 AmendmentAmendment by Pub. L. 89–719 applicable after Nov. 2, 1966, regardless of when title or lien of United States arose or when lien or interest of another person was acquired, with certain exceptions, see section 114(a)–(c) of Pub. L. 89–719, set out as a note under section 6323 of this title.
Reference
Citations & Metadata
Citation
26 U.S.C. § 6343
Title 26 — Internal Revenue Code
Last Updated
Apr 6, 2026
Release point: 119-73