1. Introduction

The Service has been given broad powers under the Internal Revenue Code to collect taxes. This booklet is designed to explain your rights and duties as a taxpayer owing a bill for Employee's Quarterly Federal Taxes and how we fulfill the legal obligation of the Service to collect the taxes. It is not intended to be a precise and technical analysis of the law.

Throughout this booklet, these taxes will be referred to as employment taxes.

Employment taxes generally represent amounts of money withheld from the wages of an employee by the employer plus the employer's share of social security taxes (FICA). The money withheld from the employee's wage consists of income tax and social security taxes. Since the employer is entrusted with the responsibility of withholding the taxes and paying them to the Internal Revenue Service, the withheld portion of employment taxes is referred to as "trust fund taxes."

In collecting these taxes, we distinguish between those taxpayers who reflect a sincere effort to meet their tax obligations and those taxpayers who show little or no evidence of cooperation. The distinction is made because we believe that taxpayers who are making a true effort to comply should be afforded an opportunity to resolve their delinquency, over a short period of time, if they incur no further liabilities. On the other hand, however, we believe that "repeater" or "chronic delinquent trust fund cases require swift and decisive Service response for the following reasons:

(1) the taxpayer is using the "trust fund" monies as operating capital and thereby gains an unfair advantage over other businesses; (2) the taxpayer has been repeatedly warned and yet continues to divert the "trust fund" monies; and

(3) the amount owed can escalate dramatically if the taxpayer ignores the federal tax deposit and/or filing requirements.

II. Liability for

Unpaid Taxes

A. Notice and Demand

Each employment tax return filed with the Internal Revenue Service is checked for mathematical accuracy and to see whether appropriate payment has been made. If employment tax is owing, we will send a notice of tax due.

We are required to issue you this bill, which is a demand for payment. You are then required by law to make payment within 10 days of the date of this bill. If the tax remains unpaid after the 10-day period has passed, a statutory lien attaches to your property and rights to property.

B. Accelerated Notice and Demand

While we follow the routine billing procedure in the great majority of cases involving unpaid taxes, situations arise where the normal 10-day notice and demand period must be shortened. We make accelerated billings if we have reason to believe that delay will jeopardize collection. These bills become immediately due and payable after delivery of the notice and demand to you, and collection action may begin if payment is not made at once.

III. Payment Procedures

Generally, you should pre-pay your taxes by using Federal Tax Deposits (see Section VII). However, if you fail to pre-pay your tax and/or the return is filed without payment, the law provides for charging interest and penalties.

Interest-Effective February 1, 1982 through December 31, 1982, the rate is 20 percent a year on the unpaid tax. By law, the interest rate is subject to periodic adjustment and shall become effective on January 1 of each year after 1982.

Penalty for Late Payment-is 1/2 of 1 percent of the unpaid tax for each month, or part of a month the tax remains unpaid. The penalty cannot exceed 25 percent of the unpaid amount.

Penalty for Failure to File-if you fail to file your return by the prescribed due date, you will be penalized 5 percent per month or any fraction of a month that the return is late, up to a maximum of 25%. (However, when the liability for both the failure to file and failure to pay penalty exists in the same month, the failure to file penalty will be reduced by a /1⁄2 percent per month, so that the total combined penalty does not exceed 5% for any given month.)

Penalty for Failure to Make Federal Tax Deposits if you fail to deposit employment taxes by the prescribed date, you will be penalized 5 percent of the underpayment (see Section Vil).

The penalties for late payment, late filing and failure to make Federal Tax Deposits may be eliminated if you show reasonable cause for not making the payment or filing timely (see Section VI E).

Additionally, if you continue to be delinquent on future employment taxes, we may require you to file and fully pay your taxes on a monthly rather than quarterly basis.

Lastly, you should be aware of the fact that the law provides for criminal sanctions against employers who fail to pay over taxes required to be withheld from the salaries of their employees (this is the "trust fund" portion of the tax as explained in Section 1). The law provides that any employer who fails to pay over withheld taxes may be required to open a special bank account and deposit the amounts required to be withheld within two banking days following payment of wages. Any employer who fails to open such an account and/or make timely deposits, after being required to do so, may be found guilty of a misdemeanor, and upon conviction. be fined not more than $5,000, or imprisoned not more than one year, or both, on each count. If found guilty, the employer will also be liable for the costs of prosecution.

Therefore, accounts should be paid promptly to keep interest and penalty charges to a minimum and to avoid possible criminal prosecution for noncompliance. Whenever you make tax payments, be sure to enter your employer identification number on your check, money order or postal note, to ensure that your payment is correctly credited to your account.

A. If You Believe Your Bill Is Wrong

If you believe that your bill contains an error, you should reply in writing to the office from which the bill was sent. It is important that you provide any records you believe would help in correcting the mistake (such as payroll records,

B. If You Believe You Can't Pay

If you believe that you cannot immediately pay your bill in full, write us immediately, explaining your circumstances.

We will ask you to complete a Collection Information Statement. If you need help, we will assist you in completing this statement. Once you supply this information, we will carefully review your financial condition.

If we determine that you have the ability to pay all delinquent and current taxes in full, we will ask you to do so. If you neglect or refuse to pay in full, enforced collection action may be taken (see Section IV).

If we determine that you are unable to pay both your current and delinquent taxes, but will be able to if given a reasonable amount of time, consideration will be given to granting an installment agreement for your delinquent taxes. During the period of such agreement, interest and penalty charges will accrue. We also require that you pay all current taxes when due. Some employers with tax problems are in serious financial trouble. If our financial analysis shows that you must use tax money to remain in business, no permanent cure for the delinquency could be gained through granting installment payments. Under these conditions, we must protect the interest of the Government. Enforcement measures deemed appropriate will be taken in these cases (see Section IV).

Collection action will be promptly taken if the terms of an installment agreement are not met, unless you advise us of the unusual circumstances which caused the failure to pay. If your business is funded, in whole or in part, by the Small Business Administration (SBA) or a Small Business Investment Company (SBIC), you should also notify that organization of the failure to pay

C. Refund Offset

If you become entitled to a refund on another tax return during the time you owe employment taxes, we will offset the refund otherwise due against your unpaid liability. Only the excess refund, if any, will be paid to you. However, we will not withhold collection pending refunds you feel you may be entitled to in the future on returns not yet filed.

D. Bankruptcy Proceedings

If you are a debtor in an ongoing bankruptcy, do not pay this bill without first immediately contacting your local IRS office. While the bankruptcy proceeding will not necessarily relieve you of your obligation to pay, a temporary stay of collection may be in effect.

E. Summary

The most important step for you in the collection process is to immediately respond to the notices you receive from the Internal Revenue Service

A. Federal Tax Lien

Once we send the bill for payment and you neglect or refuse to pay the tax, a statutory lien attaches to your property and rights to property. This lien is not valid against claims which certain of your creditors may have until a Notice of Federal Tax Lien has been filed The filing of the Notice of Federal Tax Lien constitutes public notice to your creditors that a tax lien exists against your property, including property acquired after the Notice of Federal Tax Lien is filed.

Under normal circumstances we don't need to file a Notice of Federal Tax Lien because taxpayers pay the tax bill after receiving our bill for the tax due. But if you neglect to pay the tax due, we must determine whether filing the Notice of Federal Tax Lien is necessary in order to protect the interest of the Government in your property Once a Notice of Federal Tax Lien is filed, it becomes a matter of public record and may adversely affect your business transactions or other financial interests. (For example, it could impair your credit rating) Therefore, it is normally filed only after we have tried to contact you personally and afford you the opportunity to pay.

In situations where the account is being paid through an installment agreement, a Notice of Federal Tax Lien may also be filed to protect the Government's interest until the final payment is made.

Generally, the Notice of Federal Tax Lien is filed with an office designated by state law.

A Federal Tax Lien will be released when the tax due (including interest and other additions to the tax) has been satisfied by payment or adjustment. All fees charged by the state or other jurisdiction for both filing and releasing a Notice of Federal Tax Lien will be added to the balance you owe.

B. Levy

The Internal Revenue Code provides that if you are liable to pay tax and you neglect or refuse to pay the tax within 10 days after the date of notice and demand, the tax may be collected by levy on any property, or rights to property belonging to you.

A levy is a taking of property to satisfy a tax liability Levy can be made on either property in the hands of third parties. (accounts receivable, bank accounts, notes collectible, etc.), or in your possession (automobile, office equipment, etc.). We will provide you with an opportunity to voluntarily satisfy your tax liability. If you do not resolve the matter voluntarily, we may then levy to collect the delinquent taxes. If collection of the tax is in jeopardy, we will take immediate levy action.

A levy on salary or wages once served, continues in effect until your tax liability is satisfied or it becomes unenforceable due to lapse of time. The Service will notify the employer or

other persons against whom the levy was served when the tax is fully paid. The law provides a minimum exemption from levy on wages, salary and other income as explained in 10) below.

Generally, court authorization is not required before levy action is taken unless Collection personnel must enter into private premises to accomplish their levy action. (See Section VI. H below.) The only legal requirements are that the tax is owed and that a notice and demand for payment has been sent to your last known address, if payment is not made within the 10-day period stated on the notice and demand, it is lawful to levy immediately. The 10-day waiting period does not apply if collection is in jeopardy

If, at any point during the levy process, you establish reasonable doubt as to the correctness of the tax bill, the levy may be released while we consider your position. Further, the levy may be released in full or in part if you pay your tax bill or make an acceptable payment agreement

1. Property Exempt from Levy

Certain types of property are exempt from levy by Federal law. They are:

(a) Wearing apparel and school books. (However, expensive items of wearing apparel, such as furs, are luxuries and are not exempt from levy)

(b) Fuel, provisions, furniture and personal effects, not to exceed $500 in value (for the head of household)

(c) Books and tools used in your trade, business or profession, not to exceed $250 in value

(d) Unemployment benefits.

(e) Undelivered mail,

(1) Certain annuity and pension payments. (g) Workmen's Compensation.

(h) Salary, wages or other income subject to a prior judgment for court-ordered child support payments.

(1) Deposits to the special Treasury fund made by members of the armed forces and Public Health Service employees on permanent duty assigned outside the United States or its possessions.

(1) A minimum exemption for wages, salary and other income of $50 per week, plus an additional $15 for each legal dependent. The Internal Revenue Service employee levying on property of the type described above will, where applicable, appraise and set aside to you the amount of such property declared to be exempt. If you object at the time of the levy to the valuation fixed by the employee making the levy, you can request a valuation by three disinterested individuals.

11-243 O 83 - 33

(1) Death benefits.

(g) Pension plan proceeds.

(h) Contributions to individual retirement ac-
counts (IRA) and KEOGH accounts.
(1) Household property, for a head of house-

hold, up to $1,500 and business property up
to $1,000, if it is concluded that levy action
on property below these amounts would
cause severe hardship.

C. Seizures and Sales

1. Seizures

Any type of real or personal property (including residential and business property) may be seized and sold to satisfy your tax bill. However, before seizing property, IRS considers other means of collection and factors such as your equity in property and the sale value of the property Before seizing an ongoing business, all facts and circumstances are thoroughly considered and every reasonable effort is made to collect the delinquent taxes on a voluntary basis. Management concurrence is required before a seizure can be made.

2. Sales

After we seize property for nonpayment of taxes, we then take action to sell it. Except in the case of perishable property, which must be sold immediately, we do not sell until at least 10 days after notice to you and to the public about the proposed sale. Prior to sale, we compute a minimum price that we will accept at the sale and advise you of the amount. If you are in disagreement, you may request a Service valuation engineer or a private appraiser to assist the Internal Revenue Service employee in reevaluating the computation figures.

3. Proceeds of Sales

Sale proceeds are applied first to the expense of the levy and sale, the remaining amount is then applied against the tax bill.

If the sale proceeds are less than the tax bill and expenses of levy and sale, the unpaid portion will, of course, be subject to further collection action. When sale proceeds exceed the tax bill and expenses of levy and sale, the surplus money is held by IRS pending a request for distribution. Unless a person, such as a mortgagee or other lienholder, submits a claim superior to yours, these excess funds will be credited or refunded to you upon your request.

4. Release/Redemption of Property

We may release the property to you if you pay an amount equal to the amount of the Government's interest in the property, you enter into an escrow arrangement, you furnish an acceptable bond, or you make an acceptable agreement for payment of the tax.

You have the right to redeem your property prior to the sale. Redemption consists of paying the tax due, together with the expenses of the seizure. Also, real estate may be redeemed at any time within 120 days after the sale by paying the purchaser the amount he/she paid for the property plus interest.

D. 100 Percent Penalty

To encourage prompt payment of withheld taxes as provided by law, and to insure ultimate collection of these taxes from a secondary source, the law provides for the establishment of a 100% penalty. Any person required to collect, truthfully account for, and pay over with

held taxes who willfully fails to collect the tax, or truthfully account for and pay over such tax, or willfully attempts in any manner to evade the payment of the tax, shall, in addition to other penalties provided by law, be liable for a penalty equal to the total amount of the tax evaded, or not collected, or not accounted for and paid over.

The term willful, as used above, means intentional, deliberate, voluntary or knowing as distinguished from accidental Willfulness is meant to be the attitude of a person who, having a free will or choice, either intentionally disregards the law or is plainly indifferent to its requirements. The penalty can be asserted even though there may not have been any evil intent or desire to defraud the Government of such funds. For purposes of asserting the 100% penalty, a responsible person is defined as one who has the duty to direct the act of collecting. accounting for, and paying over withheld mon

les.

The 100% penalty is generally used in cases involving corporations where there is a refusal or neglect to pay the withheld tax. It is made against the responsible officers, employees or other persons who had the duty to direct payment of the taxes withheld from the wages of the employees. When the person responsible for withholding, collecting and paying over taxes cannot otherwise be determined, the Service will look to the President, Secretary and Treasurer of the corporation as responsible officers.

If we recommend assertion of the 100% Penalty against you, you will be given the opportunity to contest the recommendation through a discussion with the employee's Group Manager. Further, you may request a hearing before the Regional Director of Appeals if you disagree with the district's conclusions. However, once we assert the penalty, the Service can then take collection action against the individual assets of the responsible person(s).

It is the policy of the Service that the 100% penalty will be used as a collection device. It is not the intent of the Service to make a double collection by collecting the tax from the corporation and the same amount from the responsible officer(s) through the 100% penalty In fact, if after the assertion of the 100% penalty, there is further collection from the corporation of the withheld tax portion of the liability, the 100% penalty may, to the extent of collection, be abated.

In determining the amount of the 100% penalty, any payment made on the corporate account involved is deemed to represent payment of the employer portions of the liability (employer's share of social security and all assessed and accrued penalties and interest) unless there was some specific designation to the contrary by the taxpayer at the time of payment. The taxpayer, of course, has no right of designation in the case of collections resulting from enforced collection measures. To the extent partial payments exceed the employer portion of the tax liability, they are considered as being applied against the withheld tax portion of the liability.

V. Claim Procedures

A. How to Claim a Refund or Credit Once you have paid your tax bill or that portion of the bill which covers at least one employee for one quarterly period, you have the

right to file a claim for refund or credit if you feel the tax is erroneous or excessive. You can obtain the necessary forms and information about filing your claim by calling or visiting any Internal Revenue Service office. You should file your claim by mailing it to the Internal Revenue Service Center where the original return was filed. (Claims on 100% penalties should be filed in the district where the penalty was paid)

B. Time for Filing a Claim for Refund or Credit: General Rule

You must file a claim for refund or credit within three years from the date the return was filed (returns filed before the due date are considered to have been filed on the due date) or within two years from the date the tax was paid, whichever date is later.

C. Limit on Amount of Refund or
Credit

Limits on amounts of refund or credit are governed by the time period between the date you filed your tax return and the date you filed your claim. For claims filed within three years of the date of a timely filed tax return, the credit or refund may not exceed the amount of tax paid within that three year period. This would include amounts paid prior to the due date of the tax return (such as Federal Tax Deposits made before the return is due) since these amounts are considered paid on the due date If you do not file your claim within three years of the date of a timely filed tax return, the credit or refund may not exceed the amount of the tax paid within the two years immediately preceding the filing of your claim.

D. Processing Claims for Refund or Credit

Your claim for refund or credit may be accepted as filed, or may be subject to examination. If your claim is examined, the procedures are the same as in the examination of a tax return. (Publication 556, "Examination of Returns, Appeal Rights and Claims for Refund," is available at your local IRS office to explain our procedures for examining returns and claims)

E. Rejected Claims-Filing Suit In District Court and Court of Claims If we reject your claim, you will receive a statutory notice of disallowance of your claim. After receiving a notice of disallowance you may file a suit for refund in a U.S. District Court or in the U.S. Court of Claims. You must file suit within two years from the date the notice of disallowance is mailed to you.

Also, if we haven't acted on your claim within six months from the date you filed it, you can then bring suit for refund. If you seek prompt court action, without availing yourself of an IRS determination, a request in writing, that the claim be immediately rejected, must accompany your claim for refund. You can obtain informa tion about procedures for filing suit in the District Court by contacting the Clerk of your District Court. You can obtain information about procedures for filing suit in the Court of Claims from the Clerk of the Court of Claims, 717 Madison Place, N.W. Washington, D.C. 20005.

VI. Rights

A. Representation

B. Transfer of Your Tax Case to
Another Geographical Area

In any case where your tax problem can be handled more quickly and conveniently in another district, you may request that the case be transferred to that district. If you give a valid reason when making your request, the case will be transferred For example, this would be done when your place of residence changes either before or during the discussion of your tax case.

C. Receipts

You have the right to receive a receipt for any payment you make on your account. You also have the right to receive copies of all contractual arrangements (such as an offer in compromise) which you make with us.

D. Confidentiality of Tax Matters

You have the right to have your tax case kept confidential. The IRS has a requirement under law to protect the confidentiality of your tax return information. However, if a levy is served or if a Notice of Federal Tax Lien or lawsuit is filed, certain aspects of your tax case (such as the amount of tax due and the type of tax owed) may become a matter of public record.

E. Elimination of Penalty-
Reasonable Cause

The Internal Revenue Code provides for elimination of penalties when you show reasonable cause rather than willful neglect for either late filing of a return or late payment of a tax. Reasonable cause, broadly defined, is a cause which arises despite ordinary care and prudence exercised by you. If you believe you have reasonable cause for elimination of a penalty. discuss your reason with our representative. If he or she agrees, your penalty will be eliminated upon your supplying us a written statement setting forth the facts establishing reasonable cause. (Under the law interest cannot be eliminated due to reasonable cause.) If our representative does not believe you have established reasonable cause, you may appeal this determination to The Regional Director of Appeals. You may make known your desire to appeal, either in writing or orally, to our repre

sentative. You will then be contacted and a conference will be arranged at a time and place that is mutually convenient.

F. Offers in Compromise

By law you have the right to submit an offer in compromise on your tax bill. The Commissioner of the Internal Revenue Service has the authority to compromise all taxes (including any interest, penalty, additional amount or addition to tax) arising under the Internal Revenue laws, except those relating to alcohol, tobacco, and firearms.

A compromise may be made on one or both of two grounds-(1) doubt as to the validity of the amount owed or (2) doubt as to your ability to make full payment of the amount owed The doubt as to the validity of the amount owed must be supported by evidence and the amount acceptable will depend upon the degree of doubt found in the particular case In the case of inability to pay, the amount offered must exceed the total value of your equity in all your assets. The amount offered must also give sufficient consideration to your present and future earning capacity which may require a written agreement to pay a percentage of future earnings as part of the offer. A written agreement may also be required to relinquish certain present or potential tax benefits.

(Individual hardship of a temporary nature alone is not a basis for our accepting an offer) In addition, in the case of employment tax liabilities of an employer still in the same business as when the liability sought to be compromised was incurred, favorable consideration may not be given to the offer unless it is equal to the unpaid liability, exclusive of penalties and interest, and then only if the financial condition of the employer is such that no greater amount can be collected and current taxes are being paid.

Submission of an offer in compromise does not automatically suspend collection of an account if there is any indication that the filing of the offer is solely for the purpose of delaying collection of the tax or that delay would negatively affect collection of the tax, we will continue collection efforts.

All forms necessary for filing an offer in compromise, plus additional information regarding the procedure, can be obtained at many local Internal Revenue Service offices.

G. Managerial Review of Employee
Decisions

If at any step in the collection process you do not agree with the recommendations of our employee, you have the right to discuss the matter with his/her manager Our employees will tell you the name and location of their manager.

H. Entry Upon Private Property

You have the right to refuse permission for Collection personnel to enter upon your private property when the purpose of the visit is to conduct a seizure of your assets If you decide to avail yourself of this right, the IRS may then decide to seek court authorization to enter upon the property to carry out the seizure action.

I. Problem Resolution Program (PRP)

The PRP is designed for taxpayers who have been unable to achieve a resolution to their tax problems through the other avenues of review

explained in this booklet. To use the service you should contact the Problem Resolution Officer, who is available in each of our District offices. You may contact the Problem Resolution Officer on our toll free telephone system or visit him/her in the District office.

VII. Federal Tax Deposits
(Form 941-

Employer's Quarterly
Federal Tax Return)

In order to avoid future bills for unpaid taxes you should pay the amount of tax due with Federal Tax Deposits. Each quarter you will receive a supply of Form 501, "Federal Tax Deposit of Withheld Income and FICA Tax All you have to do is fill in the form and take or mail it and the payment to either a Federal Reserve Bank or a financial institution authorized to receive deposits. You can obtain the names of financial institutions authorized to receive deposits at your local bank or Federal Reserve Bank.

When you receive your Federal tax deposit form, make sure your address, tax period ending, and type of tax are correct. If these items are not correct, correct them on the form and use the form to make a deposit. If the employer identification number or taxpayer's name is incorrect, do not use the form to make deposits. Request additional forms as explained below.

If you need deposit forms you can order them through your local Internal Revenue Service District Office. You can use as an order blank one of the preprinted forms we mailed to you. In the box labeled "Tax Period Ending." correct the preprinted date if you are requesting forms for another tax period. In the space labeled "Bank Name/Date Stamp," write the number of forms you need for the tax period. If you do not have a preprinted form, your request should show your name, address, employer identification number, the kind of tax you will deposit. and the date the tax period ends. In either case, you should receive the requested forms in approximately three weeks. When you receive the new forms, destroy the remaining incorrect ones (BE SURE TO REQUEST ADDITIONAL FORMS EARLY ENOUGH TO MAKE YOUR DEPOSITS ON TIME.)

If you don't receive forms in sufficient time to make a deposit, mail your payment to the internal Revenue Service Center where you file your

return.

U.S. G.P.O. 1982-341-343:390

Attachment #3

Sec. 6331. Levy and distraint.

(a) Authority of Secretary.

If any person liable to pay any tax neglects or refuses to pay the same within 10 days after notice and demand, it shall be lawful for the Secretary to collect such tax (and such further sum as shall be sufficient to cover the expenses of the levy) by levy upon all property and rights to property (except such property as is exempt under section 6334) belonging to such person or on which there is a lien provided in this chapter for the payment of such tax. Levy may be made upon the accrued salary or wages of any officer, employee, or elected official, of the United States, the District of Columbia, or any agency or instrumentality of the United States or the District of Columbia, by serving a notice of levy on the employer (as defined in section 3401(d)) of such officer, employee, or elected official. If the Secretary makes a finding that the collection of such tax is in jeopardy, notice and demand for immediate payment of such tax may be made by the Secretary and, upon failure or refusal to pay such tax, collection thereof by levy shall be lawful without regard to the 10day period provided in this section.

(b) Seizure and sale of property.

The term "levy" as used in this title includes the power of distraint and seizure by any means. Except as otherwise provided in subsection (d)(3), a levy shall extend only to property possessed and obligations existing at the time thereof. In any case in which the Secretary may levy upon property or rights to property, he may seize and sell such property or rights to property (whether real or personal, tangible or intangible). (c) Successive seizures.

Whenever any property or right to property upon which levy has been made by virtue of subsection (a) is not sufficient to satisfy the claim of the United States for which levy is made, the Secretary may, thereafter, and as often as may be necessary, proceed to levy in like manner upon any other property liable to levy of the person against whom such claim exists, until the amount due from him, together with all expenses, is fully paid.

(d) Salary and wages.

(1) In general. Levy may be made under subsection (a) upon the salary or wages of an individual with respect to any unpaid tax only after the Secretary has notified such individual in writing of his intention to make such levy. Such notice shall be given in person, left at the dwelling or usual place of business of such individual, or shall be sent by mail to such individual's last known address, no less than 10 days before the day of levy.

(2) Jeopardy. Paragraph (1) shall not apply to a levy

if the Secretary has made a finding under the las sentence of subsection (a) that the collection of tax in jeopardy.

(3) Continuing levy on salary and wages.

(A) Effect of levy. The effect of a levy on salary or wages payable to or received by a taxpayer shall be continuous from the date such levy is first made until the liability out of which such levy arose is satisfied or becomes unenforceable by reason of lapse of time.

(B) Release and notice of release. With respect to a levy described in subparagraph (A), the Secretary shall promptly release the levy when the liability out of which such levy arose is satisfied or becomes unenforceable by reason of lapse of time, and shall promptly notify the person upon whom such levy was made that such levy has been released.

(e) Cross references.

(1) For provisions relating to jeopardy, see subchapter A of chapter 70.

(2) For proceedings applicable to sale of seized prop erty, see section 6335.

La 76, P.L. 94-455, Soc. 1209(dX1), added para. (d)(3), for levies made after 76. P.L 94-528, Sec. 2(c), postponed the effective date to 2/28/77.

-P.L 94455, Sec. 12094X2), substituted "Except as other wise provided in subsection (d)(3), a levy" for "A levy" at the beginning of the second sentence in subsec. (b), for levies made after 76. P.L. 94-528, Sec. 2(c), postponed the effective date to 22277.

-P.L. 94-455, Sec. 1209(d)(4), deleted "No additional notion shall be required in the case of successive levies with respect to such tax the last sentence in para (X1), for levies made after 76. P.L. 94-528, Sec. 2(c), postponed the effective date to 2/28/77.

-P.L. 94-455, Sec. 1906bX13XA), substituted "Secretary" for "Secretary or his delegate" each place it appeared in subsecs. (a) and (d), and in subseca. (b) and (c) efective 2/1/ 77.

La 71, 92-178, Sec. 211, redesig, subsec. (d) as (e), and added new subsec. (d), with respect to levies made after 3/ 31/72

In %6, P. L. 89-719 added the second sentence of subsoc. (b) applicable after 11/2/66, regardless of when a bien or title of the US arose or a lien or interest of any other person was acquired.