Notice and demand to delinquent internal revenue officer and employee, see section 7803 (d) of this title. Payment on notice and demand, see section 6155 of this title. Penalty payable on notice and demand, see section 6659 (a) (1) of this title. § 6304. Collection under the Tariff Act. For collection under the provisions of the Tariff Act of 1930 of the taxes imposed by section 4501 (b), and subchapters A, B, C, D, and E of chapter 38, see sections 4504 and 4601, respectively. (Aug. 16, 1954, ch. 736, 68A Stat. 776.) REFERENCES IN TEXT Sections 4504 and 4601 of this title, referred to in text, were repealed by Pub. L. 87-456, title III, § 302(d), May 24, 1962, 76 Stat. 77. Sec. Subchapter B.-Receipt of Payment 6311. Payment by check or money order. 6312. Payment by United States notes and certificates of indebtedness. 6313. Fractional parts of a cent. 6814. Receipt for taxes. 6315. Payments of estimated income tax. 6316. Payment by foreign currency. § 6311. Payment by check or money order. (a) Authority to receive. It shall be lawful for the Secretary or his delegate to receive for internal revenue taxes, or in payment for internal revenue stamps, checks or money orders, to the extent and under the conditions provided in regulations prescribed by the Secretary or his delegate. (b) Check or money order unpaid. (1) Ultimate liability. If a check or money order so received is not duly paid, the person by whom such check or money order has been tendered shall remain liable for the payment of the tax or for the stamps, and for all legal penalties and additions, to the same extent as if such check or money order had not been tendered. (2) Liability of banks and others. If any certified, treasurer's, or cashier's check or any money order so received is not duly paid, the United States shall, in addition to its right to exact payment from the party originally indebted therefor, have a lien for the amount of such check upon all the assets of the bank or trust company on which drawn or for the amount of such money order upon all the assets of the issuer thereof; and such amount shall be paid out of such assets in preference to any other claims whatsoever against such bank or issuer except the necessary costs and expenses of administration and the reimbursement of the United States for the amount expended in the redemption of the circulating notes of such bank. (Aug. 16, 1954, ch. 736, 68A Stat. 777.) CROSS REFERENCES Penalty for tendering bad checks, see section 6657 of this title. § 6312. Payment by United States notes and certificates of indebtedness. (a) General rule. It shall be lawful for the Secretary or his delegate to receive, at par with an adjustment for accrued interest, Treasury bills, notes and certificates of indebtedness issued by the United States in payment of any internal revenue taxes, or in payment for internal revenue stamps, to the extent and under the conditions provided in regulations prescribed by the Secretary or his delegate. (b) Cross references. (1) For authority to receive silver certificates, see section 5 of the act of June 19, 1934 (48 Stat. 1178; 31 U. S. C. 405a). (2) For full legal tender status of all coins and currencies of the United States, see section 43 (b) (1) of the Agricultural Adjustment Act, as amended (48 Stat. 52, 113; 31 U. S. C. 462). (3) For authority to receive obligations under the Second Liberty Bond Act, see section 20 (b) of that act, as amended (56 Stat. 189; 31 U. S. C. 754b). (Aug. 16, 1954, ch. 736, 68A Stat. 777.) REFERENCES IN TEXT Section 5 of the act of June 19, 1934 (48 Stat. 1178; 31 U.S.C. 405a), referred to in subsec. (b) (1), was repealed by Pub. L. 88-36, Title I, § 1, June 4, 1963, 77 Stat. 54. Section 20(b) of the Second Liberty Bond Act (56 Stat. 189; 31 U.S.C. 754b), referred to in subsec. (b) (3), was repealed by Pub. L. 86-346, Title I, § 105(b) (1), Sept. 22, 1959, 73 Stat. 622. § 6313. Fractional parts of a cent. In the payment of any tax imposed by this title not payable by stamp, a fractional part of a cent shall be disregarded unless it amounts to one-half cent or more, in which case it shall be increased to 1 cent. (Aug. 16, 1954, ch. 736, 68A Stat. 778.) CROSS REFERENCES Fractional parts of a dollar, see section 7504 of this title. § 6314. Receipt for taxes. (a) General rule. The Secretary or his delegate shall, upon request, give receipts for all sums collected by him, excepting only when the same are in payment for stamps sold and delivered; but no receipt shall be issued in lieu of a stamp representing a tax. (b) Duplicate receipts for payment of estate taxes. The Secretary or his delegate shall, upon request, give to the person paying the tax under chapter 11 (relating to the estate tax) duplicate receipts, either of which shall be sufficient evidence of such payment, and shall entitle the executor to be credited and allowed the amount thereof by any court having jurisdiction to audit or settle his accounts. (c) Cross references. (1) For receipt required to be furnished by employer to employee with respect to employment taxes, see section 6051. (2) For receipt of discharge of executor from personal liability, see section 2204. (Aug. 16, 1954, ch. 736, 68A Stat. 778.) § 6315. Payments of estimated income tax. Payment of the estimated income tax, or any installment thereof, shall be considered payment on account of the income taxes imposed by subtitle A for the taxable year. (Aug. 16, 1954, ch. 736, 68A Stat. 778.) CROSS REFERENCES Declaration of estimated income tax by individuals, see section 6015 of this title. Declaration of estimated income tax by corporations, see section 6016 of this title. Installment payments of estimated income tax by corporations, see section 6154 of this title. Installment payments of estimated income tax by individuals, see section 6153 of this title. Action to enforce lien or to subject property to payment of tax, see section 7403 of this title. § 6323. Validity against mortgagees, pledgees, purchasers, and judgment creditors. (a) Invalidity of lien without notice. Except as otherwise provided in subsections (c) and (d), the lien imposed by section 6321 shall not be valid as against any mortgagee, pledgee, purchaser, or judgment creditor until notice thereof has been filed by the Secretary or his delegate(1) Under State or Territorial laws. In the office designated by the law of the State or Territory in which the property subject to the lien is situated, whenever the State or Territory has by law designated an office within the State or Territory for the filing of such notice; or (2) With clerk of district court. In the office of the clerk of the United States district court for the judicial district in which the property subject to the lien is situated, whenever the State or Territory has not by law designated an office within the State or Territory for the filing of such notice; or (3) With clerk of District Court for District of Columbia. In the office of the clerk of the United States District Court for the District of Columbia, if the property subject to the lien is situated in the District of Columbia. (b) Form of notice. If the notice filed pursuant to subsection (a) (1) is in such form as would be valid if filed with the clerk of the United States district court pursuant to subsection (a) (2), such notice shall be valid notwithstanding any law of the State or Territory regarding the form or content of a notice of lien. (c) Exception in case of securities. (1) Exception. Even though notice of a lien provided in section 6321 has been filled in the manner prescribed in subsection (a) of this section, the lien shall not be valid with respect to a security, as defined in paragraph (2) of this subsection, as against any mortgagee, pledgee, or purchaser of such security, for an adequate and full consideration in money or money's worth, if at the time of such mortgage, pledge, or purchase such mortgagee, pledgee, or purchaser is without notice or knowledge of the existence of such lien. (2) Definition of security. As used in this subsection, the term "security" means any bond, debenture, note, or certificate or other evidence of indebtedness, issued by any corporation (including one issued by a government or political subdivision thereof), with interest coupons or in registered form, share of stock, voting trust certificate, or any certificate of interest or participation in, certificate of deposit or receipt for, temporary or interim certificate for, or warrant or right to subscribe to or purchase, any of the foregoing; negotiable instrument; or money. (d) Exception in case of motor vehicles. (1) Exception. Even though notice of a lien provided in section 6321 has been filed in the manner prescribed in subsection (a) of this section, the lien shall not be valid with respect to a motor vehicle, as defined in paragraph (2) of this subsection, as against any purchaser of such motor vehicle for an adequate and full consideration in money or money's worth if (A) at the time of the purchase the purchaser is without notice or knowledge of the existence of such lien, and (B) before the purchaser obtains such notice or knowledge, he has acquired possession of such motor vehicle and has not thereafter relinquished possession of such motor vehicle to the seller or his agent. (2) Definition of motor vehicle. As used in this subsection, the term "motor vehicle" means a self-propelled vehicle which is registered for highway use under the laws of any State of foreign country. (e) Disclosure of amount of outstanding lien. If a notice of lien has been filed under subsection (a), the Secretary or his delegate is authorized to provide by rules or regulations the extent to which, and the conditions under which, information as to the amount of the outstanding obligation secured by the lien may be disclosed. (Aug. 16, 1954, ch. 736, 68A Stat. 779; Feb. 26, 1964, Pub. L. 88-272, title II, § 236 (a), (c) (1), 78 Stat. 127, 128.) AMENDMENTS 1964 Subsec. (a). Pub. L. 88-272, § 236 (c)(1), substituted "subsections (c) and (d)" for "subsection (c)." Subsec. (d). Pub. L. 88-272, § 236(a), added subsec. (d). Former subsec. (d), redesignated (e). Subsec. (e). Pub. L. 88-272, § 236(a), redesignated former subsec. (d) as (e). EFFECTIVE DATE OF 1964 AMENDMENT Section 236(d) of Pub. L. 88-272 provided that: "The amendments made by this section [to this section and section 6324 of this title] shall apply only with respect to purchases made after the date of the enactment of this Act (Feb. 26, 1964.]” CROSS REFERENCES Action to enforce lien or to subject property to payment of tax, see section 7403 of this title. Civil action to clear title to property, see section 7424 of this title. § 6324. Special liens for estate and gift taxes. (a) Liens for estate tax. Except as otherwise provided in subsection (c) (relating to transfers of securities) and subsection (d) (relating to purchases of motor vehicles) — (1) Upon gross estate. Unless the estate tax imposed by chapter 11 is sooner paid in full, it shall be a lien for 10 years upon the gross estate of the decedent, except that such part of the gross estate as is used for the payment of charges against the estate and expenses of its administration, allowed by any court having jurisdiction thereof, shall be divested of such lien. (2) Liability of transferees and others. If the estate tax imposed by chapter 11 is not paid when due, then the spouse, transferee, trustee (except the trustee of an employee's trust which meets the requirements of section 401 (a)), surviving tenant, person in possession of the property by reason of the exercise, nonexercise, or release of a power of appointment, or beneficiary, who receives, or has on the date of the decedent's death, property included in the gross estate under sections 2034 to 2042, inclusive, to the extent of the value, at the time of the decedent's death, of such property, shall be personally liable for such tax. Any part of such property transferred by (or transferred by a transferee of) such spouse, transferee, trustee, surviving tenant, person in possession of property by reason of the exercise, nonexercise, or release of a power of appointment, or beneficiary, to a bona fide purchaser, mortgagee, or pledgee, for an adequate and full consideration in money or money's worth shall be divested of the lien provided in paragraph (1) and a like lien shall then attach to all the property of such spouse, transferee, trustee, surviving tenant, person in possession, beneficiary, or transferee of any such person, except any part transferred to a bona fide purchaser, mortgagee, or pledgee for an adequate and full consideration in money or money's worth. (3) Continuance after discharge of executor. The provisions of section 2204 (relating to discharge of executor from personal liability) shall not operate as a release of any part of the gross estate from the lien for any deficiency that may thereafter be determined to be due, unless such part of the gross estate (or any interest therein) has been transferred to a bona fide purchaser, mortgagee, or pledgee for an adequate and full consideration in money, or money's worth, in which case such part (or such interest) shall not be subject to a lien or to any claim or demand for any such deficiency, but the lien shall attach to the consideration received from such purchaser, mortgagee, or pledgee by the heirs, legatees, devisees, or distributees. (b) Lien for gift tax. Except as otherwise provided in subsection (c) (relating to transfers of securities) and subsection (d) (relating to purchases of motor vehicles), the gift tax imposed by chapter 12 shall be a lien upon all gifts made during the calendar year, for 10 years from the time the gifts are made. If the tax is not paid when due, the donee of any gift shall be personally liable for such tax to the extent of the value of such gift. Any part of the property comprised in the gift transferred by the donee (or by a transferee of the donee) to a bona fide purchaser, mortgagee, or pledgee for an adequate and full consideration in money or money's worth shall be divested of the lien herein imposed and the lien, to the extent of the value of such gift, shall attach to all the property (including after-acquired property) of the donee (or the transferee) except any part transferred to a bona fide purchaser, mortgagee, or pledgee for an adequate and full consideration in money or money's worth. (c) Exception in case of securities. The lien imposed by subsection (a) or (b) shall not be valid with respect to a security, as defined in section 6323 (c) (2), as against any mortgagee, pledgee, or purchaser of any such security, for an adequate and full consideration in money or money's worth, if at the time of such mortgage, pledge, or purchase such mortgagee, pledgee, or purchaser is without notice or knowledge of the existence of such lien. (d) Exception in case of motor vehicles. The lien imposed by subsection (a) or (b) shall not be valid with respect to a motor vehicle, as defined in section 6323 (d) (2), as against any purchaser of such motor vehicle for an adequate and full consideration in money or money's worth if— (1) at the time of the purchase the purchaser is without notice or knowledge of the existence of such lien, and (2) before the purchaser obtains such notice or knowledge, he has acquired possession of such motor vehicle and has not thereafter relinquished possession of such motor vehicle to the seller or his agent. (Aug. 16, 1954, ch. 736, 68A Stat. 780; Feb. 26, 1964, Pub. L. 88-272, title II, § 236(b), (c) (2), 78 Stat. 127, 128.) AMENDMENTS 1964 Subsec. (a). Pub. L. 88-272, § 236 (c) (2), inserted "and subsection (d) (relating to purchases of motor vehicles)." Subsec. (b). Pub. L. 88-272, § 236(c) (2), inserted "and subsection (d) (relating to purchases of motor vehicles)." Subsec. (d). Pub. L. 88-272, § 236(b), added subsec. (d). EFFECTIVE DATE OF 1964 AMENDMENT Amendment of section by Pub. L. 88-272 applicable to purchases made after Feb. 26, 1964, see section 236(d) of Pub. L. 88-272, set out as a note under section 6323 of this title. CROSS REFERENCES Definition of transferee under subsection (a) (2) of this section, see section 6901 (h) of this title Liability for payment of estate tax, see section 2002 of this title. Period of limitation in case of liability of initial transferee, see section 6901 (c) (1) of this title. Time for filing estate and gift tax returns, see section 6075 of this title. § 6325. Release of lien or partial discharge of property. (a) Release of lien. Subject to such rules or regulations as the Secretary or his delegate may prescribe, the Secretary or his delegate may issue a certificate of release of any lien imposed with respect to any internal revenue tax if (1) Liability satisfied or unenforceable. The Secretary or his delegate 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 or his delegate 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 rules or regulations. (b) Partial discharge of property. (1) Property double the amount of the liability. Subject to such rules or regulations as the Secretary or his delegate may prescribe, the Secretary or his delegate may issue a certificate of discharge of any part of the property subject to any lien imposed under this chapter if the Secretary or his delegate 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 to such lien. (2) Part payment or interest of United States valueless. Subject to such rules or regulations as the Secretary or his delegate may prescribe, the Secretary or his delegate 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 or his delegate in part satisfaction of the liability secured by the lien an amount determined by the Secretary or his delegate, which shall not be less than the value, as determined by the Secretary or his delegate, of the interest of the United States in the part to be so discharged, or (B) the Secretary or his delegate 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 or his delegate shall give consideration to the fair market value of such part and to such liens thereon as have priorty to the lien of the United States. (c) Estate or gift tax. Subject to such rules or regulations as the Secretary or his delegate may prescribe, the Secretary or his delegate may issue a certificate of discharge of any or all of the property subject to any lien imposed by section 6324 if the Secretary or his delegate finds that the liability secured by such lien has been fully satisfied or provided for. (d) Effect of certificate of release or discharge. A certificate of release or of discharge issued under this section shall be held conclusive that the lien upon the property covered by the certificate is extinguished. (e) Cross references. (1) For single bond complying with the requirements of both subsection (a) (2) and section 6165, see section 7102. (2) For other provisions relating to bonds, see generally chapter 73. (3) For provisions relating to suits to enforce lien, see section 7403. (4) For provisions relating to suits to clear title to realty, see section 7424. (Aug. 16, 1954, ch. 736, 68A Stat. 781; Sept. 2, 1958, Pub. L. 85-866, title I, § 77, 72 Stat. 1662.) AMENDMENTS 1958 Subsec. (a)(1). Pub. L. 85-866, § 77(1) substituted "or" for "," following "satisfied" and deleted ", or, in the case of the estate tax imposed by chapter 11 or the gift tax imposed by chapter 12, has been fully satisfied or provided for" following "unenforceable". Subsec. (c). Pub. L. 85-866, § 77(2) added subsec. (c) and redesignated former subsec. (c) as (d). Subsec. (d). Pub. L. 85-866, § 77 (2), (3), redesignated former subsec. (c) as (d) and deleted preceding "discharge" in the catchline and text the word "partial". Former subsec. (d) redesignated (e). Subsec. (e). Pub. L. 85-866, § 77(2) redesignated former subsec. (d) as (e). EFFECTIVE DATE OF 1958 AMENDMENT Amendment of subsec. (a) (1) of this section by Pub. L. 85-866, and subsec. (c), effective Aug. 17, 1954, see section 1 (c) of Pub. L. 85-866, set out as a note under section 165 of this title. CROSS REFERENCES Authority to release levy, see section 6343 of this title. § 6326. Cross references. (1) For lien in case of tax on distilled spirits, see section 5004. (2) For exclusion of tax liability from discharge in bankruptcy, see section 17 of the Bankruptcy Act, as amended (52 Stat. 851; 11 U. S. C. 35). (3) For limit on amount allowed in bankruptcy proceedings on debts owing to the United States, see section 57 (j) of the Bankruptcy Act, as amended (52 Stat. 867; 11 U. S. C. 93). (4) For recognition of tax liens in proceedings under the Bankruptcy Act, see section 67 (b) and (c) of that act, as amended (52 Stat. 876-877; 11 U. S. C. 107). (5) For collection of taxes in connection with wage earners' plans in bankruptcy courts, see section 680 of the Bankruptcy Act, as added by the act of June 22, 1938 (52 Stat. 938; 11 U. S. C. 1080). (6) For provisions permitting the United States to be made party defendant in a proceeding in a State court for the foreclosure of a lien upon real estate where the United States may have a claim upon the premises involved, see section 2410 of Title 28 of the United States Code. (7) For priority of lien of the United States in case of insolvency, see R. S. 3466 (31 U. S. C. 191). (Aug. 16, 1954, ch. 736, 68A Stat. 782.) § 6331. Levy and distraint. (a) Authority of Secretary or delegate. 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 or his delegate 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 or his delegate 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 or his delegate and, upon failure or refusal to pay such tax, collection thereof by levy shall be lawful without regard to the 10-day 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. In any case in which the Secretary or his delegate 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 or his delegate may, thereafter, and as often as may be necessary, proceed to levy in like manner upon 36-500 0-65-vol. 6 -62 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) Cross references. (1) For provisions relating to jeopardy, see subchapter A of chapter 70. (2) For proceedings applicable to sale of seized property, see section 6335. (Aug. 16, 1954, ch. 736, 68A Stat. 783.) CROSS REFERENCES Collection by levy where assessment made within limitation period, see section 6502 (a) of this title. Levy, definition of, see section 7701 (a) (21) of this title. Notice and demand for tax, see section 6303 of this title. Penalty for sales to avoid tax, see section 7341 of this title. Property Exempt from levy, see section 6334 of this title. Subject to lien generally, see section 6321 of this title. Punishment for removing, depositing, or concealing goods or commodities, see section 7206 (4) of this title. § 6332. Surrender of property subject to levy. (a) Requirement. Any person in possession of (or obligated with respect to) property or rights to property subject to levy upon which a levy has been made shall, upon demand of the Secretary or his delegate, surrender such property or rights (or discharge such obligation) to the Secretary or his delegate, except such part of the property or rights as is, at the time of such demand, subject to an attachment or execution under any judicial process. (b) Penalty for violation. Any person who fails or refuses to surrender as required by subsection (a) any property or rights to property, subject to levy, upon demand by the Secretary or his delegate, shall be liable in his own person and estate to the United States in a sum equal to the value of the property or rights not so surrendered, but not exceeding the amount of the taxes for the collection of which such levy has been made, together with costs and interest on such sum at the rate of 6 percent per annum from the date of such levy. (c) Person defined. The term "person," as used in subsection (a), includes an officer or employee of a corporation or a member or employee of a partnership, who as such officer, employee, or member is under a duty to surrender the property or rights to property, or to discharge the obligation. (Aug. 16, 1954, ch. 736, 68A Stat. 784.) CROSS REFERENCES Application of proceeds of levy, see section 6342 of this title. Notice and demand for tax, see section 6303 of this title. Payment on notice and demand, see section 6155 of this title. § 6333. Production of books. If a levy has been made or is about to be made on any property, or right to property, any person having custody or control of any books or records, containing evidence or statements relating to the property or right to property subject to levy, shall, |