Section 6325. Release of lien or discharge of property

U.S. Code as of: 01/19/04

 
 (a) Release of lien
 Subject to such regulations as the Secretary may prescribe, the
 Secretary shall issue a certificate of release of any lien imposed
 with respect to any internal revenue tax not later than 30 days
 after the day on which - 
 (1) Liability satisfied or unenforceable
 The Secretary finds that the liability for the amount assessed,
 together with all interest in respect thereof, has been fully
 satisfied or has become legally unenforceable; or
 (2) Bond accepted
 There is furnished to the Secretary and accepted by him a bond
 that is conditioned upon the payment of the amount assessed,
 together with all interest in respect thereof, within the time
 prescribed by law (including any extension of such time), and
 that is in accordance with such requirements relating to terms,
 conditions, and form of the bond and sureties thereon, as may be
 specified by such regulations.
 (b) Discharge of property
 (1) Property double the amount of the liability
 Subject to such regulations as the Secretary may prescribe, the
  Secretary may issue a certificate of discharge of any part of the
 property subject to any lien imposed under this chapter if the
 Secretary finds that the fair market value of that part of such
 property remaining subject to the lien is at least double the
 amount of the unsatisfied liability secured by such lien and the
 amount of all other liens upon such property which have priority
 over such lien.
 (2) Part payment; interest of United States valueless
 Subject to such regulations as the Secretary may prescribe, the
 Secretary may issue a certificate of discharge of any part of the
 property subject to the lien if - 
 (A) there is paid over to the Secretary in partial
 satisfaction of the liability secured by the lien an amount
 determined by the Secretary, which shall not be less than the
 value, as determined by the Secretary, of the interest of the
 United States in the part to be so discharged, or
 (B) the Secretary determines at any time that the interest of
 the United States in the part to be so discharged has no value.
 
 In determining the value of the interest of the United States in
 the part to be so discharged, the Secretary shall give
 consideration to the value of such part and to such liens thereon
 as have priority over the lien of the United States.
 (3) Substitution of proceeds of sale
 Subject to such regulations as the Secretary may prescribe, the
 Secretary may issue a certificate of discharge of any part of the
 property subject to the lien if such part of the property is sold
 and, pursuant to an agreement with the Secretary, the proceeds of
 such sale are to be held, as a fund subject to the liens and
 claims of the United States, in the same manner and with the same
 priority as such liens and claims had with respect to the
 discharged property.
 (4) Right of substitution of value
 (A) In general
  At the request of the owner of any property subject to any
 lien imposed by this chapter, the Secretary shall issue a
 certificate of discharge of such property if such owner - 
 (i) deposits with the Secretary an amount of money equal to
 the value of the interest of the United States (as determined
 by the Secretary) in the property; or
 (ii) furnishes a bond acceptable to the Secretary in a like
 amount.
 (B) Refund of deposit with interest and release of bond
 The Secretary shall refund the amount so deposited (and shall
 pay interest at the overpayment rate under section 6621), and
 shall release such bond, to the extent that the Secretary
 determines that - 
 (i) the unsatisfied liability giving rise to the lien can
 be satisfied from a source other than such property; or
 (ii) the value of the interest of the United States in the
 property is less than the Secretary's prior determination of
 such value.
 (C) Use of deposit, etc., if action to contest lien not filed
 If no action is filed under section 7426(a)(4) within the
 period prescribed therefor, the Secretary shall, within 60 days
 after the expiration of such period - 
 (i) apply the amount deposited, or collect on such bond, to
 the extent necessary to satisfy the unsatisfied liability
 secured by the lien; and
 (ii) refund (with interest as described in subparagraph
 (B)) any portion of the amount deposited which is not used to
 satisfy such liability.
 (D) Exception
 Subparagraph (A) shall not apply if the owner of the property
 is the person whose unsatisfied liability gave rise to the
 lien.
 (c) Estate or gift tax
 Subject to such regulations as the Secretary may prescribe, the
 Secretary may issue a certificate of discharge of any or all of the
 property subject to any lien imposed by section 6324 if the
 Secretary finds that the liability secured by such lien has been
 fully satisfied or provided for.
 (d) Subordination of lien
 Subject to such regulations as the Secretary may prescribe, the
  Secretary may issue a certificate of subordination of any lien
 imposed by this chapter upon any part of the property subject to
 such lien if - 
 (1) there is paid over to the Secretary an amount equal to the
 amount of the lien or interest to which the certificate
 subordinates the lien of the United States,
 (2) the Secretary believes that the amount realizable by the
 United States from the property to which the certificate relates,
 or from any other property subject to the lien, will ultimately
 be increased by reason of the issuance of such certificate and
 that the ultimate collection of the tax liability will be
 facilitated by such subordination, or
 (3) in the case of any lien imposed by section 6324B, if the
 Secretary determines that the United States will be adequately
 secured after such subordination.
 (e) Nonattachment of lien
 If the Secretary determines that, because of confusion of names
 or otherwise, any person (other than the person against whom the
 tax was assessed) is or may be injured by the appearance that a
 notice of lien filed under section 6323 refers to such person, the
 Secretary may issue a certificate that the lien does not attach to
 the property of such person.
 (f) Effect of certificate
 (1) Conclusiveness
 Except as provided in paragraphs (2) and (3), if a certificate
 is issued pursuant to this section by the Secretary and is filed
 in the same office as the notice of lien to which it relates (if
 such notice of lien has been filed) such certificate shall have
 the following effect:
 (A) in the case of a certificate of release, such certificate
 shall be conclusive that the lien referred to in such
 certificate is extinguished;
 (B) in the case of a certificate of discharge, such
 certificate shall be conclusive that the property covered by
 such certificate is discharged from the lien;
 (C) in the case of a certificate of subordination, such
 certificate shall be conclusive that the lien or interest to
 which the lien of the United States is subordinated is superior
 to the lien of the United States; and
 (D) in the case of a certificate of nonattachment, such
 certificate shall be conclusive that the lien of the United
 States does not attach to the property of the person referred
 to in such certificate.
 (2) Revocation of certificate of release or nonattachment
 If the Secretary determines that a certificate of release or
 nonattachment of a lien imposed by section 6321 was issued
 erroneously or improvidently, or if a certificate of release of
 such lien was issued pursuant to a collateral agreement entered
 into in connection with a compromise under section 7122 which has
 been breached, and if the period of limitation on collection
 after assessment has not expired, the Secretary may revoke such
 certificate and reinstate the lien - 
 (A) by mailing notice of such revocation to the person
 against whom the tax was assessed at his last known address,
 and
 (B) by filing notice of such revocation in the same office in
 which the notice of lien to which it relates was filed (if such
 notice of lien had been filed).
 
 Such reinstated lien (i) shall be effective on the date notice of
 revocation is mailed to the taxpayer in accordance with the
 provisions of subparagraph (A), but not earlier than the date on
 which any required filing of notice of revocation is filed in
 accordance with the provisions of subparagraph (B), and (ii)
 shall have the same force and effect (as of such date), until the
 expiration of the period of limitation on collection after
 assessment, as a lien imposed by section 6321 (relating to lien
 for taxes).
 (3) Certificates void under certain conditions
 Notwithstanding any other provision of this subtitle, any lien
 imposed by this chapter shall attach to any property with respect
 to which a certificate of discharge has been issued if the person
 liable for the tax reacquires such property after such
 certificate has been issued.
 (g) Filing of certificates and notices
 If a certificate or notice issued pursuant to this section may
 not be filed in the office designated by State law in which the
 notice of lien imposed by section 6321 is filed, such certificate
 or notice shall be effective if filed in the office of the clerk of
 the United States district court for the judicial district in which
 such office is situated.
 (h) Cross reference
 For provisions relating to bonds, see chapter 73 (sec. 7101
 and following).