2016 U.S. Code
Title 26 - Internal Revenue Code
Subtitle F - Procedure and Administration
Chapter 64 - Collection
Subchapter D - Seizure of Property for Collection of Taxes
Part II - Levy
Sec. 6342 - Application of proceeds of levy
| 26 U.S.C. § 6342 (2016) |
| §6342. Application of proceeds of levy |
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(a) Collection of liability
Any money realized by proceedings under this subchapter (whether by seizure, by surrender under section 6332 (except pursuant to subsection (c)(2) 1 thereof), or by sale of seized property) or by sale of property redeemed by the United States (if the interest of the United States in such property was a lien arising under the provisions of this title) shall be applied as follows: (1) Expense of levy and saleFirst, against the expenses of the proceedings; If the property seized and sold is subject to a tax imposed by any internal revenue law which has not been paid, the amount remaining after applying paragraph (1) shall then be applied against such tax liability (and, if such tax was not previously assessed, it shall then be assessed); The amount, if any, remaining after applying paragraphs (1) and (2) shall then be applied against the liability in respect of which the levy was made or the sale was conducted. Any surplus proceeds remaining after the application of subsection (a) shall, upon application and satisfactory proof in support thereof, be credited or refunded by the Secretary to the person or persons legally entitled thereto. |
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(Aug. 16, 1954, ch. 736, 68A Stat. 789; Pub. L. 89–719, title I, §104(h), Nov. 2, 1966, 80 Stat. 1137; Pub. L. 94–455, title XIX, §1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.) |
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REFERENCES IN TEXT
Section 6332(c), referred to in subsec. (a), was redesignated section 6332(d) by Pub. L. 100–647, title VI, §6236(e)(1), Nov. 10, 1988, 102 Stat. 3739. AMENDMENTS1976—Pub. L. 94–455 struck out "or his delegate" after "Secretary" wherever appearing. 1966—Subsec. (a). Pub. L. 89–719 inserted in introductory provisions, references to an exception in the case of surrender under section 6332(c)(2) and to sale of property redeemed by the United States if the interest of the United States in such property was a lien arising under the provisions of this title, struck out "under this subchapter" after "proceedings" in par. (1), and inserted "or the sale was conducted" after "levy was made" in par. (3). 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. |
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1 See References in Text note below. |
| United States Code, 2012 Edition, Supplement 4, Title 26 - INTERNAL REVENUE CODE |
| Bills and Statutes |
| United States Code |
| Y 1.2/5: |
| Title 26 - INTERNAL REVENUE CODE Subtitle F - Procedure and Administration CHAPTER 64 - COLLECTION Subchapter D - Seizure of Property for Collection of Taxes PART II - LEVY Sec. 6342 - Application of proceeds of levy |
| section 6342 |
| 2016 |
| January 6, 2017 |
| No |
| standard |
| 80 Stat. 1137 90 Stat. 1834 102 Stat. 3739 |
| Public Law 89-719, Public Law 94-455, Public Law 100-647 |
