26 CFR § 301.6331-2 - Procedures and restrictions on levies.
(a) Notice of intent to levy -
(1) In general. Levy may be made upon the salary, wages, or other property of a taxpayer for any unpaid tax no less than 30 days after the district director, the service center director, or the compliance center director (director) has notified the taxpayer in writing of the intent to levy. The notice must be given in person, be left at the dwelling or usual place of business of the taxpayer, or be sent by registered or certified mail to the taxpayer's last known address. For further guidance regarding the definition of last known address, see § 301.6212-2. The notice of intent to levy is separate from, but may be given at the same time as, the notice and demand described in § 301.6331-1.
(2) Content of Notice. The notice of intent to levy is to contain a brief statement in nontechnical terms including the following information -
(i) The Internal Revenue Code provisions and the procedures relating to levy and sale of property;
(ii) The administrative appeals available with respect to the levy and sale of property and the procedures relating to such appeals;
(iii) The alternatives available that could prevent levy on the property (including the use of an installment agreement under section 6159); and
(iv) The Internal Revenue Code provisions and the procedures relating to redemption of property and release of liens on property.
(b) Uneconomical levy -
(1) In general. No levy may be made on property if the director estimates that the anticipated expenses with respect to the levy and sale will exceed the fair market value of the property. The estimate is to be made on an aggregate basis for all of the items that are anticipated to be seized pursuant to the levy. Generally, no levy should be made on individual items of insignificant monetary value. For the definition of fair market value, see § 301.6325-1(b)(1)(i). See § 301.6341-1 concerning the expenses of levy and sale.
(2) Time of estimate. The estimate, which may be formal or informal, is to be made at the time of the seizure or within a reasonable period of time prior to a seizure. The estimate may be based on earlier estimates of fair market value and anticipated expenses of the same or similar property.
(3) Examples. The following examples illustrate the application of this paragraph (b):
(c) Restriction on levy on date of appearance. Except for continuing levies on salaries or wages described in § 301.6331-1(b)(1), no levy may be made on any property of a person on the day that person, or an officer or employee of that person, is required to appear in response to a summons served for the purpose of collecting any underpayment of tax from that person. For purposes of this paragraph (c), the date on which an appearance is required is the date fixed by an officer or employee of the Internal Revenue Service pursuant to section 7605 or the date (if any) fixed as the result of a judicial proceeding instituted under sections 7604 and 7402(b) seeking the enforcement of the summons.
(e) Effective date. These regulations are effective December 10, 1992.
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