IRS Issues Final Regulations To Modernize Process for Sale of Taxpayers’ Property
The IRS recently issued final regulations (T.D. 10011) intended to modernize the process for the government's sale of taxpayers' property after its seizure by levy.
Proposed regulations (REG-127391-16) were issued in October 2023. In the preamble to the proposed regulations, the IRS wrote that the regulations under Sec. 6335 had not changed substantially since they were first issued in 1954. This meant some provisions in Regs. Sec. 301.6335-1 did not reflect modern electronic methods of submitting bids and accepting payments from bidders.
The final regulations require sales to occur at the time and place stated in the notice of sale, including online. The regulations also allow payment in the manner indicated in the notice of sale or related instructions. Payments can be made electronically, via credit or debit card, or by using other commercially acceptable and IRS-approved means. In the past, the regulations required that payments be made by check or money order.
The final regulations also allow the minimum amount of a sealed bid to be set by the public notice of sale or related instructions with no minimum bid. Additionally, bids may be submitted electronically.
Other updates made in the final regulations include how the IRS may group items for sale, how the IRS determines winning bids in the case of a tie, and which IRS personnel are involved in sales.
Before publishing the final regulations, the IRS stated it made minor, nonsubstantive changes to the proposed regulations.
The final regulations apply to sales of property seized on or after Nov. 5, 2024.