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U.S. Code as of:
01/19/04
Section 6335. Sale of seized property
(a) Notice of seizure
As soon as practicable after seizure of property, notice in
writing shall be given by the Secretary to the owner of the
property (or, in the case of personal property, the possessor
thereof), or shall be left at his usual place of abode or business
if he has such within the internal revenue district where the
seizure is made. If the owner cannot be readily located, or has no
dwelling or place of business within such district, the notice may
be mailed to his last known address. Such notice shall specify the
sum demanded and shall contain, in the case of personal property,
an account of the property seized and, in the case of real
property, a description with reasonable certainty of the property
seized.
(b) Notice of sale
The Secretary shall as soon as practicable after the seizure of
the property give notice to the owner, in the manner prescribed in
subsection (a), and shall cause a notification to be published in
some newspaper published or generally circulated within the county
wherein such seizure is made, or if there be no newspaper published
or generally circulated in such county, shall post such notice at
the post office nearest the place where the seizure is made, and in
not less than two other public places. Such notice shall specify
the property to be sold, and the time, place, manner, and
conditions of the sale thereof. Whenever levy is made without
regard to the 10-day period provided in section 6331(a), public
notice of sale of the property seized shall not be made within such
10-day period unless section 6336 (relating to sale of perishable
goods) is applicable.
(c) Sale of indivisible property
If any property liable to levy is not divisible, so as to enable
the Secretary by sale of a part thereof to raise the whole amount
of the tax and expenses, the whole of such property shall be sold.
(d) Time and place of sale
The time of sale shall not be less than 10 days nor more than 40
days from the time of giving public notice under subsection (b).
The place of sale shall be within the county in which the property
is seized, except by special order of the Secretary.
(e) Manner and conditions of sale
(1) In general
(A) Determinations relating to minimum price
Before the sale of property seized by levy, the Secretary
shall determine -
(i) a minimum price below which such property shall not be
sold (taking into account the expense of making the levy and
conducting the sale), and
(ii) whether, on the basis of criteria prescribed by the
Secretary, the purchase of such property by the United States
at such minimum price would be in the best interest of the
United States.
(B) Sale to highest bidder at or above minimum price
If, at the sale, one or more persons offer to purchase such
property for not less than the amount of the minimum price, the
property shall be declared sold to the highest bidder.
(C) Property deemed sold to United States at minimum price in
certain cases
If no person offers the amount of the minimum price for such
property at the sale and the Secretary has determined that the
purchase of such property by the United States would be in the
best interest of the United States, the property shall be
declared to be sold to the United States at such minimum price.
(D) Release to owner in other cases
If, at the sale, the property is not declared sold under
subparagraph (B) or (C), the property shall be released to the
owner thereof and the expense of the levy and sale shall be
added to the amount of tax for the collection of which the levy
was made. Any property released under this subparagraph shall
remain subject to any lien imposed by subchapter C.
(2) Additional rules applicable to sale
The Secretary shall by regulations prescribe the manner and
other conditions of the sale of property seized by levy. If one
or more alternative methods or conditions are permitted by
regulations, the Secretary shall select the alternatives
applicable to the sale. Such regulations shall provide:
(A) That the sale shall not be conducted in any manner other
than -
(i) by public auction, or
(ii) by public sale under sealed bids.
(B) In the case of the seizure of several items of property,
whether such items shall be offered separately, in groups, or
in the aggregate; and whether such property shall be offered
both separately (or in groups) and in the aggregate, and sold
under whichever method produces the highest aggregate amount.
(C) Whether the announcement of the minimum price determined
by the Secretary may be delayed until the receipt of the
highest bid.
(D) Whether payment in full shall be required at the time of
acceptance of a bid, or whether a part of such payment may be
deferred for such period (not to exceed 1 month) as may be
determined by the Secretary to be appropriate.
(E) The extent to which methods (including advertising) in
addition to those prescribed in subsection (b) may be used in
giving notice of the sale.
(F) Under what circumstances the Secretary may adjourn the
sale from time to time (but such adjournments shall not be for
a period to exceed in all 1 month).
(3) Payment of amount bid
If payment in full is required at the time of acceptance of a
bid and is not then and there paid, the Secretary shall forthwith
proceed to again sell the property in the manner provided in this
subsection. If the conditions of the sale permit part of the
payment to be deferred, and if such part is not paid within the
prescribed period, suit may be instituted against the purchaser
for the purchase price or such part thereof as has not been paid,
together with interest at the rate of 6 percent per annum from
the date of the sale; or, in the discretion of the Secretary, the
sale may be declared by the Secretary to be null and void for
failure to make full payment of the purchase price and the
property may again be advertised and sold as provided in
subsections (b) and (c) and this subsection. In the event of such
readvertisement and sale any new purchaser shall receive such
property or rights to property, free and clear of any claim or
right of the former defaulting purchaser, of any nature
whatsoever, and the amount paid upon the bid price by such
defaulting purchaser shall be forfeited.
(4) Cross reference
For provision providing for civil damages for violation of
paragraph (1)(A)(i), see section 7433.
(f) Right to request sale of seized property within 60 days
The owner of any property seized by levy may request that the
Secretary sell such property within 60 days after such request (or
within such longer period as may be specified by the owner). The
Secretary shall comply with such request unless the Secretary
determines (and notifies the owner within such period) that such
compliance would not be in the best interests of the United States.
(g) Stay of sale of seized property pending Tax Court decision
For restrictions on sale of seized property pending Tax Court
decision, see section 6863(b)(3).
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