Delay does not excuse surrender of property subject to levy

Plain-English summary

Chief Counsel addressed whether a levied party still had to comply after time passed before it identified property reached by the levy. If the party possessed the property, or was obligated with respect to it, on the levy date, section 6332(a) required surrender to the IRS. The passage of time did not remove that duty, and the facts did not show that the IRS had released or revoked the levy. The party therefore remained responsible for complying if it still possessed the property held back on the levy date.

Ruling snapshot

• Question: Does delay in identifying property attached by a levy excuse the levied party from surrendering it?
• Outcome: Advice given, the surrender duty continues while the levy remains effective
• Key authorities: IRC § 6332(a)

Full text (IRS public release)

ID: CCA_2014100211551618
UILC: 6332.00-00, 6332.05-00

Number: 201509038
Release Date: 2/27/2015
From:
Sent: Thursday, October 02, 2014 11:55:16 AM
To:
Cc:
Bcc:
Subject: RE: levy question

If the assets were in the possession of or obligated with respect to the levied party as of
the date of the levy, the levied party is required to surrender that property to the IRS
under section 6332(a). There is nothing in the statutes or regulations that absolve a
levied party from complying if any time period has lapsed between the date of the levy
and the date that they identify property that the levy attaches to. Your facts do not
indicate that the IRS has released or otherwise revoked the levy, and the taxpayer’s
underlying liability still appears to be outstanding. Based on what you presented, the
levied party is still responsible for complying with the levy if it still is in possession of the
property that it held back on the levy date, and ------------------------------------------------------
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