Internal Revenue Service (IRS) Levy
| Note: This page does not apply to savings bonds, TreasuryDirect accounts or Legacy Treasury Direct accounts. For information or questions related to these subjects, please select “Contact Us” at the top of this page. |
IRS has the authority to seize property to collect outstanding debt owed to the U.S. Government. This authority is covered in 26 U.S.C. § 6323, 6331-6335, 6338, 6339 and 26 CFR Part 403.
IRS forwards the security that is to be sold pursuant to seizure under 26 U.S.C. § 6331-6335. It must be forwarded to Merrill Lynch, FBO: U.S. Department of the Treasury by the Secretary of the Treasury or a Federal Executive Agency through registered mail, special messenger or wired to the Department of the Treasury’s broker-dealer account.
In order to liquidate the security, the documents listed below are needed:
Letter of Intent
A Letter of Intent is needed which details exactly what is to be liquidated, how many shares, where to send the proceeds, and the like. It must be printed on agency letterhead and should include the following:
- Agency's instructions for sale of security
- Reference to the security
- How the security was obtained (e.g., seizure)
- Agency Location Code (ALC) for deposit of proceeds
- Taxpayer Identification Number (TIN)
- Physical address of agency
- Agency contact name, telephone number, fax number and e-mail address
- Signature of a supervisor
- Contact person, other than the supervisor
If multiple securities are being sent at the same time, one Letter of Intent is sufficient as long as all securities are referenced in the letter.
To use a Letter of Intent template, select the appropriate file for the IRS Levy below:
- Physical Security Received
- Electronic Security Received
Note: To read or print a PDF document, you need the Adobe Acrobat Reader (v5.0 or higher) software installed on your computer. You can download the Adobe Acrobat Reader from the Adobe Website.
If you need help downloading...
Proof of Ownership
In order for the Bureau of the Public Debt to liquidate the securities for your agency, we must have proof of ownership. The IRS office that the security has been assigned to from a levy must show evidence of ownership. The evidence is documented by the following instruments:
- IRS Form 2433 - Notice of Seizure. The Certificate of Official Record must list the securities and contain a visible IRS seal. The IRS notice must denote the delinquent taxpayer's name, a description of the property seized by the administrative levy, the location of the property, and the estimated expenses of the seizure and sale.
- IRS Form 2434 - Notice of Public Auction for Sale. The Certificate of Official Record must list the securities and contain a visible IRS seal. An IRS announcement that property has been seized pursuant to 26 U.S.C. § 6331 for nonpayment of internal revenue taxes and will be sold at public auction under 26 U.S.C. § 6335.
- Certificate of Sale of Seized Property (original letter), formerly IRS Form 2435. IRS Revenue Officer's certification must list the securities and state that the taxpayer's property has been sold to the United States at public auction.
The purchaser’s name must be listed on the certificate of sale as the "United States" or "United States Government", and not the "Internal Revenue Service" or "The Department of the Treasury".
The certified copies must have one of the following certifications:
- Certification by a Notary Public in the last 6 months using a visible seal
- Certificate of Official Record Form 2866 with official seal
Any incorrect forms will be returned to the IRS District Office responsible for the seizure so corrections can be made.
Direct Registration (DRS) Advice
In order to make it easier to pull your securities into Treasury’s broker-dealer account, have the following information on the Direct Registration (DRS) Advice form.
- Your holder account number
- Your agency name, address and contact person
- Number of shares
- Type of security (common stock, warrant, etc.)
For any special circumstances not addressed here, please use the “Contact Us” link at the top of this page.
