§ 6325. Release of lien or discharge of property

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1954

   Aug. 16, 1954, ch. 736, 68A Stat. 783 · 68A Stat. 783

   Enacted · 26 U.S.C. § 6325

   Aug. 16, 1954, ch. 736, 68A Stat. 783

   Source evidence

   Code source credit
   Aug. 16, 1954, ch. 736, 68A Stat. 783

2. 1966

   Federal Tax Lien Act of 1966

   Pub. L. 89–719 title I § 103(a) · 80 Stat. 1125

   Added · 26 U.S.C. § 6325(b)(3)

   Pub. L. 89–719 added par. (3)

   Source evidence

   Code amendment note
   Subsec. (b)(3). Pub. L. 89–719 added par. (3).

   Enacted provision · exact public law section
   (a) Amendment of Section 6325.— Section 6325 (relating to release 68A Stat. 781. 26 USC 6325. of lien or partial discharge of property) is amended to read as follows: “SEC. 6325. RELEASE OF LIEN OR DISCHARGE OF PROPERTY. “(a) Release of Lien.— Subject to such 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 regulations. “(b) Discharge of Property.— “(1) Property double the amount of the liability.— Subject to such 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 over such lien. “(2) Part payment; interest of united states valueless.— Subject to such 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 partial 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 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 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 such part of the property is sold and, pursuant to an agreement with the Secretary or his delegate, 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. “(c) Estate or Gift Tax.— Subject to such 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) Subordination of Lien.— Subject to such regulations as the Secretary or his delegate may prescribe, the Secretary or his delegate 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 or his delegate an amount equal to the amount of the lien or interest to which the certificate subordinates the lien of the United States, or “(2) the Secretary or his delegate 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. “(e) Nonattachment of Lien.— If the Secretary or his delegate 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 or his delegate 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 or his delegate 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 or his delegate determines that a certificate of release or nonattachment of a lien imposed by section 6321 68A Stat. 779. 26 USC 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 or his delegate 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).” (o) Clerical Amendment.— The table of sections for subchapter C of chapter 64 is amended by striking out “6323. Release of lien or partial discharge of property.”. and inserting in lieu thereof “6325. Release of lien or discharge of property.”.

3. 1966

   Federal Tax Lien Act of 1966

   Pub. L. 89–719 title I § 103(a) · 80 Stat. 1125

   Redesignated · 26 U.S.C. § 6325(d); 26 U.S.C. § 6325(e)

   Pub. L. 89–719 added subsecs. (d) and (e). Former subsecs. (d) and (e) redesignated, with amendments, as subsecs. (f)(1) and (h), respectively

   Source evidence

   Code amendment note
   Subsecs. (d), (e). Pub. L. 89–719 added subsecs. (d) and (e). Former subsecs. (d) and (e) redesignated, with amendments, as subsecs. (f)(1) and (h), respectively.

   Enacted provision · exact public law section
   (a) Amendment of Section 6325.— Section 6325 (relating to release 68A Stat. 781. 26 USC 6325. of lien or partial discharge of property) is amended to read as follows: “SEC. 6325. RELEASE OF LIEN OR DISCHARGE OF PROPERTY. “(a) Release of Lien.— Subject to such 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 regulations. “(b) Discharge of Property.— “(1) Property double the amount of the liability.— Subject to such 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 over such lien. “(2) Part payment; interest of united states valueless.— Subject to such 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 partial 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 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 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 such part of the property is sold and, pursuant to an agreement with the Secretary or his delegate, 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. “(c) Estate or Gift Tax.— Subject to such 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) Subordination of Lien.— Subject to such regulations as the Secretary or his delegate may prescribe, the Secretary or his delegate 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 or his delegate an amount equal to the amount of the lien or interest to which the certificate subordinates the lien of the United States, or “(2) the Secretary or his delegate 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. “(e) Nonattachment of Lien.— If the Secretary or his delegate 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 or his delegate 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 or his delegate 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 or his delegate determines that a certificate of release or nonattachment of a lien imposed by section 6321 68A Stat. 779. 26 USC 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 or his delegate 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).” (o) Clerical Amendment.— The table of sections for subchapter C of chapter 64 is amended by striking out “6323. Release of lien or partial discharge of property.”. and inserting in lieu thereof “6325. Release of lien or discharge of property.”.

4. 1966

   Federal Tax Lien Act of 1966

   Pub. L. 89–719 title I § 103(a) · 80 Stat. 1125

   1. Redesignated · 26 U.S.C. § 6325(f)

      Pub. L. 89–719 redesignated as par. (1) provisions formerly constituting subsec. (d)

   2. Inserted · 26 U.S.C. § 6325(f)

      Pub. L. 89–719 inserted reference to exceptions provided in pars. (2) and (3) and reference to the filing of the certificate in the same office as the notice of lien to which it refers and expanded the types of certificates to include separate certificates of release, discharge, subordination, and nonattachment

   3. Added · 26 U.S.C. § 6325(f)

      Pub. L. 89–719 added pars. (2) and (3)

   Source evidence

   Code amendment note
   Subsec. (f). Pub. L. 89–719 redesignated as par. (1) provisions formerly constituting subsec. (d), inserted reference to exceptions provided in pars. (2) and (3) and reference to the filing of the certificate in the same office as the notice of lien to which it refers and expanded the types of certificates to include separate certificates of release, discharge, subordination, and nonattachment, and added pars. (2) and (3).

   Enacted provision · exact public law section
   (a) Amendment of Section 6325.— Section 6325 (relating to release 68A Stat. 781. 26 USC 6325. of lien or partial discharge of property) is amended to read as follows: “SEC. 6325. RELEASE OF LIEN OR DISCHARGE OF PROPERTY. “(a) Release of Lien.— Subject to such 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 regulations. “(b) Discharge of Property.— “(1) Property double the amount of the liability.— Subject to such 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 over such lien. “(2) Part payment; interest of united states valueless.— Subject to such 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 partial 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 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 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 such part of the property is sold and, pursuant to an agreement with the Secretary or his delegate, 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. “(c) Estate or Gift Tax.— Subject to such 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) Subordination of Lien.— Subject to such regulations as the Secretary or his delegate may prescribe, the Secretary or his delegate 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 or his delegate an amount equal to the amount of the lien or interest to which the certificate subordinates the lien of the United States, or “(2) the Secretary or his delegate 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. “(e) Nonattachment of Lien.— If the Secretary or his delegate 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 or his delegate 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 or his delegate 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 or his delegate determines that a certificate of release or nonattachment of a lien imposed by section 6321 68A Stat. 779. 26 USC 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 or his delegate 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).” (o) Clerical Amendment.— The table of sections for subchapter C of chapter 64 is amended by striking out “6323. Release of lien or partial discharge of property.”. and inserting in lieu thereof “6325. Release of lien or discharge of property.”.

5. 1966

   Federal Tax Lien Act of 1966

   Pub. L. 89–719 title I § 103(a) · 80 Stat. 1125

   Added · 26 U.S.C. § 6325(g)

   Pub. L. 89–719 added subsec. (g)

   Source evidence

   Code amendment note
   Subsec. (g). Pub. L. 89–719 added subsec. (g).

   Enacted provision · exact public law section
   (a) Amendment of Section 6325.— Section 6325 (relating to release 68A Stat. 781. 26 USC 6325. of lien or partial discharge of property) is amended to read as follows: “SEC. 6325. RELEASE OF LIEN OR DISCHARGE OF PROPERTY. “(a) Release of Lien.— Subject to such 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 regulations. “(b) Discharge of Property.— “(1) Property double the amount of the liability.— Subject to such 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 over such lien. “(2) Part payment; interest of united states valueless.— Subject to such 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 partial 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 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 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 such part of the property is sold and, pursuant to an agreement with the Secretary or his delegate, 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. “(c) Estate or Gift Tax.— Subject to such 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) Subordination of Lien.— Subject to such regulations as the Secretary or his delegate may prescribe, the Secretary or his delegate 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 or his delegate an amount equal to the amount of the lien or interest to which the certificate subordinates the lien of the United States, or “(2) the Secretary or his delegate 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. “(e) Nonattachment of Lien.— If the Secretary or his delegate 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 or his delegate 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 or his delegate 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 or his delegate determines that a certificate of release or nonattachment of a lien imposed by section 6321 68A Stat. 779. 26 USC 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 or his delegate 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).” (o) Clerical Amendment.— The table of sections for subchapter C of chapter 64 is amended by striking out “6323. Release of lien or partial discharge of property.”. and inserting in lieu thereof “6325. Release of lien or discharge of property.”.

6. 1966

   Federal Tax Lien Act of 1966

   Pub. L. 89–719 title I § 103(a) · 80 Stat. 1125

   1. Redesignated · 26 U.S.C. § 6325(h)

      Pub. L. 89–719 redesignated as subsec. (h) provisions formerly constituting subsec. (e)

   2. Struck · 26 U.S.C. § 6325(h)

      Pub. L. 89–719 struck out cross references for single bonds, suits to enforce liens, and suits to clear title to realty

   Source evidence

   Code amendment note
   Subsec. (h). Pub. L. 89–719 redesignated as subsec. (h) provisions formerly constituting subsec. (e) and struck out cross references for single bonds, suits to enforce liens, and suits to clear title to realty.

   Enacted provision · exact public law section
   (a) Amendment of Section 6325.— Section 6325 (relating to release 68A Stat. 781. 26 USC 6325. of lien or partial discharge of property) is amended to read as follows: “SEC. 6325. RELEASE OF LIEN OR DISCHARGE OF PROPERTY. “(a) Release of Lien.— Subject to such 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 regulations. “(b) Discharge of Property.— “(1) Property double the amount of the liability.— Subject to such 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 over such lien. “(2) Part payment; interest of united states valueless.— Subject to such 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 partial 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 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 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 such part of the property is sold and, pursuant to an agreement with the Secretary or his delegate, 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. “(c) Estate or Gift Tax.— Subject to such 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) Subordination of Lien.— Subject to such regulations as the Secretary or his delegate may prescribe, the Secretary or his delegate 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 or his delegate an amount equal to the amount of the lien or interest to which the certificate subordinates the lien of the United States, or “(2) the Secretary or his delegate 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. “(e) Nonattachment of Lien.— If the Secretary or his delegate 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 or his delegate 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 or his delegate 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 or his delegate determines that a certificate of release or nonattachment of a lien imposed by section 6321 68A Stat. 779. 26 USC 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 or his delegate 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).” (o) Clerical Amendment.— The table of sections for subchapter C of chapter 64 is amended by striking out “6323. Release of lien or partial discharge of property.”. and inserting in lieu thereof “6325. Release of lien or discharge of property.”.

7. 1958

   Technical Amendments Act of 1958

   Pub. L. 85–866 § 77(1) · 72 Stat. 1606

   1. Substituted · 26 U.S.C. § 6325(a)(1)

      Pub. L. 85–866, § 77(1), substituted “or” for “,” after “satisfied”

   2. Struck · 26 U.S.C. § 6325(a)(1)

      Pub. L. 85–866, § 77(1), struck out “, 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” after “unenforceable”

   Source evidence

   Code amendment note
   Subsec. (a)(1). Pub. L. 85–866, § 77(1), substituted “or” for “,” after “satisfied” and struck out “, 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” after “unenforceable”.

   Enacted provision · exact public law section
   (1) by striking out paragraph (1) of subsection (a) and inserting in lieu thereof the following: “(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”.

8. 1958

   Technical Amendments Act of 1958

   Pub. L. 85–866 § 77(2) · 72 Stat. 1606

   1. Added · 26 U.S.C. § 6325(c)

      Pub. L. 85–866, § 77(2), added subsec. (c)

   2. Redesignated · 26 U.S.C. § 6325(c)

      Pub. L. 85–866, § 77(2), redesignated former subsec. (c) as (d)

   Source evidence

   Code amendment note
   Subsec. (c). Pub. L. 85–866, § 77(2), added subsec. (c) and redesignated former subsec. (c) as (d).

   Enacted provision · exact public law section
   (2) by redesignating subsections (c) and (d) as subsections (d) and (e), respectively, and by inserting after subsection (b) the following new subsection: “(c) Estate or Gift Tax.— Subject to such rules or regulations as 26 USC 6324. 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.”

9. 1958

   Technical Amendments Act of 1958

   Pub. L. 85–866 title I § 77 · 72 Stat. 1606

   Redesignated · 26 U.S.C. § 6325(d)

   Pub. L. 85–866. § 77(2), (3), redesignated former subsec. (c) as (d) and in heading and text struck out “partial” before “discharge”. Former subsec. (d) redesignated (e)

   Source evidence

   Code amendment note
   Subsec. (d). Pub. L. 85–866. § 77(2), (3), redesignated former subsec. (c) as (d) and in heading and text struck out “partial” before “discharge”. Former subsec. (d) redesignated (e).

   Enacted provision · exact public law section
   SEC. 77. RELEASE OF LIEN OR PARTIAL DISCHARGE OF PROPERTY. 26 USC 6325. Section 6325 (relating to release of lien or partial discharge of property) is amended— (1) by striking out paragraph (1) of subsection (a) and inserting in lieu thereof the following: “(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) by redesignating subsections (c) and (d) as subsections (d) and (e), respectively, and by inserting after subsection (b) the following new subsection: “(c) Estate or Gift Tax.— Subject to such rules or regulations as 26 USC 6324. 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.” (3) by striking out the word “partial” where it appears in the heading and text of subsection (d) (as redesignated by paragraph (2)).

10. 1958

    Technical Amendments Act of 1958

    Pub. L. 85–866 § 77(2) · 72 Stat. 1606

    Redesignated · 26 U.S.C. § 6325(e)

    Pub. L. 85–866, § 77(2), redesignated former subsec. (d) as (e)

    Source evidence

    Code amendment note
    Subsec. (e). Pub. L. 85–866, § 77(2), redesignated former subsec. (d) as (e).

    Enacted provision · exact public law section
    (2) by redesignating subsections (c) and (d) as subsections (d) and (e), respectively, and by inserting after subsection (b) the following new subsection: “(c) Estate or Gift Tax.— Subject to such rules or regulations as 26 USC 6324. 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.”

11. 1976

    Pub. L. 94–455 title XIX § 1906(b)(13)(A) · 90 Stat. 1520

    Struck · 26 U.S.C. § 6325

    Pub. L. 94–455 struck out “or his delegate” after “Secretary” wherever appearing

    Source evidence

    Code amendment note
    Pub. L. 94–455 struck out “or his delegate” after “Secretary” wherever appearing.

    Enacted provision · exact public law section
    (A) The Internal Revenue Code of 1954, as amended by this Act, is amended by striking out “Secretary or his delegate” each place it appears and inserting in lieu thereof “Secretary”.

12. 1978

    Pub. L. 95–600 title V § 513(a) · 92 Stat. 2763

    Added · 26 U.S.C. § 6325(d)(3)

    Pub. L. 95–600 added par. (3)

    Source evidence

    Code amendment note
    Subsec. (d)(3). Pub. L. 95–600 added par. (3).

    Enacted provision · exact public law section
    (a) General Rule.— Subsection (d) of section 6325 (relating to 26 USC 6325. subordination of lien) is amended by striking out “or” at the end of paragraph (1), by striking out the period at the end of paragraph (2) and inserting in lieu thereof “, or”, and by adding at the end thereof the following new paragraph: “(3) in the case of any lien imposed by section 6324B, if the 26 USC 6324B. Secretary determines that the United States will be adequately secured after such subordination.”

13. 1982

    Pub. L. 97–248 title III § 348(a) · 96 Stat. 324

    1. Substituted · 26 U.S.C. § 6325(a)

       Pub. L. 97–248 in introductory provisions substituted “shall issue” for “may issue”

    2. Substituted · 26 U.S.C. § 6325(a)

       Pub. L. 97–248 in introductory provisions substituted “not later than 30 days after the day on which” for “if”

    Source evidence

    Code amendment note
    Subsec. (a). Pub. L. 97–248 in introductory provisions substituted “shall issue” for “may issue” and “not later than 30 days after the day on which” for “if”.

    Enacted provision · exact public law section
    (a) General Rule.— So much of subsection (a) of section 6325 26 USC 6325. (relating to release of lien) as precedes paragraph (1) thereof is amended to read as follows: “(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—”.

14. 1998

    Taxpayer Bill of Rights 3

    Pub. L. 105–206 title III § 3106(a) · 112 Stat. 685

    Added · 26 U.S.C. § 6325(b)(4)

    Pub. L. 105–206 added par. (4)

    Source evidence

    Code amendment note
    Subsec. (b)(4). Pub. L. 105–206 added par. (4).

    Enacted provision · exact public law section
    (a) Right of Substitution of Value.— Subsection (b) of section 6325 (relating to release of lien or discharge of property) is amended by adding at the end the following new paragraph: “(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.”.

    Effective date note
    Pub. L. 105–206, title III, § 3106(c), July 22, 1998, 112 Stat. 734, provided that: “The amendments made by this section [amending this section and sections 6503 and 7426 of this title] shall take effect on the date of the enactment of this Act [July 22, 1998].”

19 of 20 references resolved to an enrolled provision · 1 partial