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6334 Code and Regulations | |
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Internal
Revenue Code §6334 - PROPERTY EXEMPT FROM LEVY 6334(a) ENUMERATION. --There shall be exempt from levy -- 6334(a)(1) WEARING APPAREL 6334(a)(2) 6334(a)(3) BOOKS 6334(a)(4) UNEMPLOYMENT BENEFITS. --Any amount payable to an individual with respect to
his unemployment (including any portion thereof payable with
respect to dependents) under an unemployment compensation law of
the United States, of any State, or of the District of Columbia or
of the Commonwealth of Puerto Rico. 6334(a)(5) UNDELIVERED 6334(a)(6) CERTAIN ANNUITY 6334(a)(7) WORKMEN'S COMPENSATION. --Any amount payable to an individual as workmen's
compensation (including any portion thereof payable with respect
to dependents) under a workmen's compensation law of the United
States, any State, the District of Columbia, or the Commonwealth
of Puerto Rico. 6334(a)(8) JUDGMENTS FOR SUPPORT OF MINOR CHILDREN. --If
the taxpayer is required by judgment of a court of competent
jurisdiction, entered prior to the date of levy, to contribute to
the support of his minor children, so much of his salary, wages,
or other income as is necessary to comply with such judgment. 6334(a)(9) MINIMUM EXEMPTION FOR WAGES, SALARY, 6334(a)(10) CERTAIN SERVICE-CONNECTED DISABILITY PAYMENTS. --Any
amount payable to an individual as a service-connected (within the
meaning of section 101(16) of title 38, United States Code)
disability benefit under -- 6334(a)(10)(A)
subchapter
II, 6334(a)(10)(B)
chapter
13, 21, 23, 31, 32, 34, 35, 37, or 39 of such title 38. 6334(a)(11) CERTAIN PUBLIC ASSISTANCE PAYMENTS. --Any
amount payable to an individual as a recipient of public
assistance under -- 6334(a)(11)(A)
title
IV or title XVI (relating to supplemental security income for the
aged, blind, and disabled) of the Social Security Act, or 6334(a)(11)(B)
State
or local government public assistance or public welfare programs
for which eligibility is determined by a needs or income test. 6334(a)(12) ASSISTANCE UNDER 6334(a)(13) RESIDENCES EXEMPT IN SMALL DEFICIENCY CASES 6334(a)(13)(A)
RESIDENCES IN SMALL DEFICIENCY CASES. --If the amount of the levy does not exceed $5,000 -- 6334(a)(13)(A)(i) any real property used as a residence by the taxpayer; or 6334(a)(13)(A)(ii) any real property of the taxpayer (other than real property which is
rented) used by any other individual as a residence. 6334(a)(13)(B)
PRINCIPAL RESIDENCES 6334(a)(13)(B)(i) the principal residence of the taxpayer (within the meaning of section
121); and 6334(a)(13)(B)(ii) tangible personal property or real property (other than real property
which is rented) used in the trade or business of an individual
taxpayer. 6334(b) APPRAISAL. --The officer seizing property of the type described in
subsection (a) shall appraise and set aside to the owner the
amount of such property declared to be exempt. If the taxpayer
objects at the time of the seizure to the valuation fixed by the
officer making the seizure, the Secretary shall summon three
disinterested individuals who shall make the valuation. 6334(c) NO OTHER PROPERTY EXEMPT. --Notwithstanding any other law of the 6334(d) EXEMPT AMOUNT OF WAGES, SALARY, OR OTHER INCOME. -- 6334(d)(1) INDIVIDUALS ON WEEKLY BASIS. --In
the case of an individual who is paid or receives all of his
wages, salary, and other income on a weekly basis, the amount of
the wages, salary, and other income payable to or received by him
during any week which is exempt from levy under subsection (a)(9)
shall be the exempt amount. 6334(d)(2) EXEMPT AMOUNT. --For purposes of paragraph (1), the term "exempt
amount" means an amount equal to -- 6334(d)(2)(A)
the
sum of -- 6334(d)(2)(A)(i) the standard deduction, and 6334(d)(2)(A)(ii) the aggregate amount of the deductions for personal exemptions allowed
the taxpayer under section 151 in the taxable year in which such
levy occurs, divided by 6334(d)(2)(B)
52. Unless
the taxpayer submits to the Secretary a written and properly
verified statement specifying the facts necessary to determine the
proper amount under subparagraph (A), subparagraph (A) shall be
applied as if the taxpayer were a married individual filing a
separate return with only 1 personal exemption. 6334(d)(3) INDIVIDUALS ON BASIS OTHER THAN WEEKLY. --In
the case of any individual not described in paragraph (1), the
amount of the wages, salary, and other income payable to or
received by him during any applicable pay period or other fiscal
period (as determined under regulations prescribed by the
Secretary) which is exempt from levy under subsection (a)(9) shall
be an amount (determined under such regulations) which as nearly
as possible will result in the same total exemption from levy for
such individual over a period of time as he would have under
paragraph (1) if (during such period of time) he were paid or
received such wages, salary, and other income on a regular weekly
basis. 6334(e) LEVY ALLOWED ON PRINCIPAL RESIDENCES 6334(e)(1) PRINCIPAL RESIDENCES. -- 6334(e)(1)(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. 6334(e)(1)(B)
JURISDICTION. --The
district courts of the 6334(e)(2) CERTAIN BUSINESS ASSETS. --Property (other than a principal residence) described
in subsection (a)(13)(B) shall not be exempt from levy if -- 6334(e)(2)(A)
a
district director or assistant district director of the Internal
Revenue Service personally approves (in writing) the levy of such
property; or 6334(e)(2)(B)
the
Secretary finds that the collection of tax is in jeopardy. An
official may not approve a levy under subparagraph (A) unless the
official determines that the taxpayer's other assets subject to
collection are insufficient to pay the amount due, together with
expenses of the proceedings. 6334(f) LEVY ALLOWED ON CERTAIN SPECIFIED PAYMENTS. --Any
payment described in subparagraph (B) or (C) of section 6331(h)(2)
shall not be exempt from levy if the Secretary approves the levy
thereon under section 6331(h). 6334(g) INFLATION ADJUSTMENT. -- 6334(g)(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 to -- 6334(g)(1)(A)
such
dollar amount, multiplied by 6334(g)(1)(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. 6334(g)(2) ROUNDING. --If any dollar amount after being increased under paragraph
(1) is not a multiple of $10, such dollar amount shall be rounded
to the nearest multiple of $10.
§301.6334-1., Property
exempt from levy (a) Enumeration. --In addition to exemptions allowed as a matter of Internal
Revenue Service policy, there shall be exempt from levy -- (1) Wearing apparel and school books. --Such
items of wearing apparel and such school books as are necessary
for the taxpayer or for members of his family. Expensive items of
wearing apparel, such as furs, which are luxuries and are not
necessary for the taxpayer or for members of his family, are not
exempt from levy. (2) Fuel, provisions, furniture, and personal effects. --So
much of the fuel, provisions, furniture, and personal effects in
the taxpayer's household, and of the arms for personal use,
livestock, and poultry of the taxpayer, that does not exceed
$6,250 in value. (3) Books and tools of a trade, business or profession. --So
many of the books and tools necessary for the trade, business, or
profession of an individual taxpayer as do not exceed in the
aggregate $3,125 in value. (4) Unemployment benefits. --Any amount payable to an individual with respect to
his unemployment (including any portion thereof payable with
respect to dependents) under an unemployment compensation law of
the United States, of any State, or of the District of Columbia or
of the Commonwealth of Puerto Rico. (5) Undelivered mail. --Mail, addressed to any person, which has not been delivered
to the addressee. (6) Certain annuity and pension payments. --Annuity
or pension payments under the Railroad Retirement Act (45 U.S.C.
ch. 9), benefits under the Railroad Unemployment Insurance Act (45
U.S.C. ch. 11), special pension payments received by a person
whose name has been entered on the Army, Navy, Air Force, and
Coast Guard Medal of Honor roll (38 U.S.C. 562), and annuities
based on retired or retainer pay under chapter 73 of title 10 of
the United States Code. (7) Workmen's compensation. --Any amount payable to an individual as workmen's
compensation (including any portion thereof payable with respect
to dependents) under a workmen's compensation law of the United
States, any State, the District of Columbia, or the Commonwealth
of Puerto Rico. (8) Judgments for support of minor children. --If
the taxpayer is required under any type of order or decree
(including an interlocutory decree or a decree of support pendente
lite) of a court of competent jurisdiction, entered prior to the
date of levy, to contribute to the support of that taxpayer's
minor children, so much of that taxpayer's salary, wages, or other
income as is necessary to comply with such order or decree. The
taxpayer must establish the amount necessary to comply with the
order or decree. The Service is not required to release a levy
until such time as it is established that the amount to be
released from levy actually will be applied in satisfaction of the
support obligation. The Service may make arrangements with a
delinquent taxpayer to establish a specific amount of such
taxpayer's salary, wage, or other income for each pay period that
shall be exempt from levy, for purposes of complying with a
support obligation. If the taxpayer has more than one source of
income sufficient to satisfy the support obligation imposed by the
order or decree, the amount exempt from levy, at the discretion of
the Service, may be allocated entirely to one salary, wage or
source of other income or be apportioned between the several
salaries, wages, or other sources of income. (9) Minimum exemption for wages, salary, and other income. --Amounts
payable to or received by the taxpayer as wages or salary for
personal services, or as other income, to the extent provided in
§301.6334-2 through §301.6334-4. (10) Certain service-connected disability payments. --Any
amount payable to an individual as a service-connected (within the
meaning of section 101(16) of title 38, United States Code (U.S.C.))
disability benefit under -- (i)
Subchapters
II (wartime disability compensation), (ii)
Chapters
13 (dependency and indemnity compensation for service commenced
deaths), 21 (specially adapted housing for disabled veterans), 23
(burial benefits), 31 (vocational rehabilitation), 32
(post-Vietnam era veterans' educational assistance), 34 (veterans'
educational assistance), 35 (survivors' and dependents'
educational assistance), 37 (home, condominium, and mobile home
loans), or 39 (automobiles and adaptive equipment for certain
disabled veterans and members of the armed forces) of title 38,
U.S.C. (11) Certain public assistance payments. --Any
amount payable to an individual as a recipient of public
assistance under -- (i)
Title
IV or title XVI (relating to supplemental security income for the
aged, blind, and disabled) of the Social Security Act, (42 U.S.C.
301 et seq.); or (ii)
State
or local government public assistance or public welfare programs
for which eligibility is determined by a needs or income test. (12) Assistance under Job Training Partnership Act. --Any
amount payable to a participant under the Job Training Partnership
Act (29 U.S.C. 1501 et seq.) from funds appropriated pursuant to
such Act. (13) Residences exempt in small deficiency cases and principal
residences and certain business assets exempt in absence of
certain approval or jeopardy (i)
Residences
in small deficiency cases. If the amount of the levy does not
exceed $5,000, any real property used as a residence of the
taxpayer or any real property of the taxpayer (other than real
property which is rented) used by any other individual as a
residence. (ii)
Principal
residences and certain business assets. Except to the extent
provided in section 6334(e), the principal residence (within the
meaning of section 121) of the taxpayer and tangible personal
property or real property (other than real property which is
rented) used in the trade or business of an individual taxpayer. (b) Appraisal. --The internal revenue officer seizing property of the type
described in section 6334(a) shall appraise and set aside to the
owner the amount of such property declared to be exempt. If the
taxpayer objects at the time of the seizure to the valuation fixed
by the officer making the seizure, such officer shall summon three
disinterested individuals who shall make the valuation. (c) Other property. --No other property or rights to property are exempt from levy
except the property specifically exempted by section 6334(a). No
provision of a State law may exempt property or rights to property
from levy for the collection of any Federal tax. Thus, property
exempt from execution under State personal or homestead exemption
laws is, nevertheless, subject to levy by the United States for
collection of its taxes. (d) Levy allowed on principal residence. --The
Service will seek approval, in writing, by a judge or magistrate
of a district court of the (1) Nature of judicial proceeding. --The
Government will initiate a proceeding for judicial approval of
levy on a principal residence by filing a petition with the
appropriate United States District Court demonstrating that the
underlying liability has not been satisfied, the requirements of
any applicable law or administrative procedure relevant to the
levy have been met, and no reasonable alternative for collection
of the taxpayer's debt exists. The petition will ask the court to
issue to the taxpayer an order to show cause why the principal
residence property should not be levied and will also ask the
court to issue a notice of hearing. (2) The
taxpayer will be granted a hearing to rebut the Government's prima
facie case if the taxpayer files an objection within the time
period required by the court raising a genuine issue of material
fact demonstrating that the underlying tax liability has been
satisfied, that the taxpayer has other assets from which the
liability can be satisfied, or that the Service did not follow the
applicable laws or procedures pertaining to the levy. The taxpayer
is not permitted to challenge the merits underlying the tax
liability in the proceeding. Unless the taxpayer files a timely
and appropriate objection, the court would be expected to enter an
order approving the levy of the principal residence property. (3) Notice letter to be issued to certain family members. --If
the property to be levied is owned by the taxpayer but is used as
the principal residence of the taxpayer's spouse, the taxpayer's
former spouse, or the taxpayer's minor child, the Government will
send a letter to each such person providing notice of the
commencement of the proceeding. The letter will be addressed in
the name of the taxpayer's spouse or exspouse, individually or on
behalf of any minor children. If it is unclear who is living in
the principal residence property and/or what such person's
relationship is to the taxpayer, a letter will be addressed to
"Occupant". The purpose of the letter is to provide
notice to the family members that the property may be levied. The
family members may not be joined as parties to the judicial
proceeding because the levy attaches only to the taxpayer's legal
interest in the subject property and the family members have no
legal standing to contest the proposed levy. (e) Levy allowed on certain business assets. --The
property described in section 6334(a)(13)(B)(ii) shall not be
exempt from levy if -- (1) An Area
Director of the Service personally approves (in writing) the levy
of such property; or (2) The
Secretary finds that the collection of tax is in jeopardy. An Area
Director may not approve a levy under paragraph (e)(1) unless the
Area Director determines that the taxpayer's other assets subject
to collection are insufficient to pay the amount due, together
with expenses of the proceeding. When other assets of an
individual taxpayer include permits issued by a State and required
under State law for the harvest of fish or wildlife in the
taxpayer's trade or business, the taxpayer's other assets also
include future income that may be derived by such taxpayer from
the commercial sale of fish or wildlife under such permit. (f) Levy allowed on certain specified payments. --Any
payment described in section 6331(h)(2)(B) or (C) shall not be
exempt from levy if the Secretary approves the levy thereon under
section 6331(h). (g) Inflation adjustment. --For any calendar year beginning after 1999, each
dollar amount referred to in paragraphs (a)(2) and (3) of this
section will be increased by an amount equal to the dollar amount
multiplied by the cost-of-living adjustment determined under
section 1(f)(3) for the calendar year (using the language
"calendar year 1998" instead of "calendar year
1992" in section 1(f)(3)(B)). If any dollar amount as
adjusted is not a multiple of $10, the dollar amount will be
rounded to the nearest multiple of $10 (rounding up if the amount
is a multiple of $5). (h) Effective date. --This section is generally effective with respect to levies
made on or after July 1, 1989. However, any reasonable attempt by
a taxpayer to comply with the statutory amendments addressed by
the regulations in this section prior to February 21, 1995, will
be considered as meeting the requirements of the regulations in
this section. In addition, paragraph (a)(11)(i) of this section is
applicable with respect to levies issued after December 31, 1996.
Paragraphs (a)(2), (a)(3), (a)(8), (a)(13), (d), (e), (f), (g) and
(h) of this section apply as of March 7, 2005. .01 Historical
Comment: Proposed 12/11/54. Adopted 12/31/54 by T.D.
6119. Amended 4/18/58 by T.D.
6292, 11/10/59 by T.D.
6425, 12/30/65 by T.D.
6870, §301.6334-2.,
Wages, salary and other income (a) In general. --Under section 6334(a)(9) and (d) certain amounts payable to
or received by a taxpayer as wages, salary, or other income are
exempt from levy. This section describes the income of a taxpayer
that is eligible for the exemption from levy (paragraph (b) of
this section) and how exempt amounts are to be paid to the
taxpayer (paragraph (c) of this section). Section (b) Eligible taxpayer income. --Only
wages, salary, or other income payable to the taxpayer after the
levy is made on the payor may be exempt from levy under section
6334(a)(9). No amount of wages, salary, or other income that is
paid to the taxpayer before levy is made on the payor will be so
exempt from levy under section 6334(a)(9). The provisions of this
paragraph (b) may be illustrated by the following example: Example.
Delinquent taxpayer A, an individual, is employed by the M
Corporation and is paid wages on Friday of each week. Accordingly,
A is paid wages on Friday, (c) Payment of exempt amounts to taxpayer (1) From wages, salary, or income from other sources where levy on all
sources not made. --In the case of a taxpayer who has more than one source of
wages, salary, or other income, the district director may elect to
levy on only one or more sources while leaving other sources of
income free from levy. If the wages, salary, or other income that
the district director leaves free from levy equal or exceed the
amount to which the taxpayer is entitled as an exemption from levy
under section 6334(a)(9), computed in accordance with §301.6334-3
(and are not otherwise exempt), the district director may treat no
amount of the taxpayer's wages, salary, or other income on which
the district director elects to levy as exempt from levy. In such
a case, the district director must notify the employer or other
person upon whom the levy is served that no amount of the
taxpayer's wages, salary, or other income is exempt from levy. The
employer or other person upon whom the levy is served may rely on
such notification in paying over amounts pursuant to the levy. In
the absence of such notification from the district director,
however, the employer or other person upon whom the levy is served
must determine the amount exempt from levy pursuant to §301.6334-3
as if that employer or other person upon whom the levy is served
is the only source of wages, salary, or other income. Amounts not
exempt from levy are to be paid to the district director in
accordance with the terms of the levy. The provisions of this
paragraph (c)(1) may be illustrated by the following example: Example.
Delinquent taxpayer C is an employee of O Corporation and is paid
wages totalling $450 on Friday of each week. C also performs
services for P Corporation and is paid a salary of $250 on Friday
of each week. On Tuesday, (2) Where sources not levied upon are less than exempt amount. --If
the taxpayer's income upon which the district director does not
levy is less than the amount to which the taxpayer is entitled as
exempt from levy, then an additional amount, determined to be
exempt from levy pursuant to §301.6334-3, may be paid to the
taxpayer from the sources of wages, salary, or other income upon
which levy has been made. In such a case, the district director
must designate those wages, salary, or other income from which the
exempt amount is to be paid to the taxpayer, and must notify the
employer or other person upon whom the levy is served of the
amount of the taxpayer's wages, salary, or other income that is
exempt from levy. The employer or other person may rely on such
notification in paying over amounts pursuant to the levy. In the
absence of such notification from the district director, the
employer or other person upon whom the levy is served must
determine the amount exempt from levy pursuant to §301.6334-3 as
if that employer or other person upon whom the levy is served is
the only source of wages, salary, or other income. Amounts not
exempt from levy are to be paid to the district director in
accordance with the terms of the levy. The provisions of this
paragraph (c)(2) may be illustrated by the following example: Example.
Delinquent taxpayer C is an employee of O Corporation and is paid
wages totalling $50 on Friday of each week. C also performs
services for P Corporation and is paid a salary of $75 on Friday
of each week. On Tuesday, (d) Effective date. -- |