§6339 — Title 26 Internal Revenue Code | U.S. Code

Summary

When the IRS seizes and sells someone's property to collect unpaid taxes, the paperwork from the sale has real legal power. For personal property, the certificate of sale proves the officer had the right to sell and that the sale was done properly, and it transfers all of the delinquent owner's rights in the property to the buyer. If the property is stock, the certificate lets the company record the transfer on its books; if it is a motor vehicle, it lets the state title office record the new owner; and for securities it serves as a valid receipt. For real estate, the deed is prima facie evidence of the facts it states, and if the sale substantially followed the law, the deed conveys whatever rights the delinquent owner had when the federal tax lien attached. The sale also wipes out any liens or claims that ranked below the government's lien.

Title 26, §6339

Internal Revenue Code — Source: USLM XML via OLRC

(a)In all cases of sale pursuant to section 6335 of property (other than real property), the certificate of such sale—

(1)Shall be prima facie evidence of the right of the officer to make such sale, and conclusive evidence of the regularity of his proceedings in making the sale; and

(2)Shall transfer to the purchaser all right, title, and interest of the party delinquent in and to the property sold; and

(3)If such property consists of stocks, shall be notice, when received, to any corporation, company, or association of such transfer, and shall be authority to such corporation, company, or association to record the transfer on its books and records in the same manner as if the stocks were transferred or assigned by the party holding the same, in lieu of any original or prior certificate, which shall be void, whether canceled or not; and

(4)If the subject of sale is securities or other evidences of debt, shall be a good and valid receipt to the person holding the same, as against any person holding or claiming to hold possession of such securities or other evidences of debt; and

(5)If such property consists of a motor vehicle, shall be notice, when received, to any public official charged with the registration of title to motor vehicles, of such transfer and shall be authority to such official to record the transfer on his books and records in the same manner as if the certificate of title to such motor vehicle were transferred or assigned by the party holding the same, in lieu of any original or prior certificate, which shall be void, whether canceled or not.

(b)In the case of the sale of real property pursuant to section 6335—

(1)The deed of sale given pursuant to section 6338 shall be prima facie evidence of the facts therein stated; and

(2)If the proceedings of the Secretary as set forth have been substantially in accordance with the provisions of law, such deed shall be considered and operate as a conveyance of all the right, title, and interest the party delinquent had in and to the real property thus sold at the time the lien of the United States attached thereto.

(c)A certificate of sale of personal property given or a deed to real property executed pursuant to section 6338 shall discharge such property from all liens, encumbrances, and titles over which the lien of the United States with respect to which the levy was made had priority.

(d)(1)For distribution of surplus proceeds, see section 6342(b).

(2)For judicial procedure with respect to surplus proceeds, see section 7426(a)(2).

Notes & Related Subsidiaries

Editorial Notes

Amendments

1976—Subsec. (b)(2). Pub. L. 94–455 struck out “or his delegate” after “Secretary”. 1966—Subsecs. (c), (d). Pub. L. 89–719 added subsecs. (c) and (d). 1958—Subsec. (b)(2). Pub. L. 85–866 substituted “as” for “of” after “Deed” in heading.

Statutory Notes and Related Subsidiaries

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.

Effective Date

of 1958 AmendmentAmendment by Pub. L. 85–866 effective Aug. 17, 1954, see section 1(c)(2) of Pub. L. 85–866, set out as a note under section 165 of this title.

§6339 Legal Effect of Certificate of Sale of Personal Property and Deed of Real Property

Summary

Title 26, §6339

Notes & Related Subsidiaries

Editorial Notes

Amendments

Statutory Notes and Related Subsidiaries

Effective Date

Effective Date

Citations & Metadata