Internal Revenue Service (IRS) Levy
Securities received from seized property for outstanding debt owed to the U.S. Government 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 or special messenger with a Letter of Intent printed on agency letterhead that includes 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
- The signature of a supervisor
Note: This information 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.
A contact person, other than the supervisor, may be listed in the letter as the person to work with the Debt Accounting Branch for liquidating the security.
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.
You can use a Letter of Intent template by selecting the appropriate file below:
Physical Security Received – IRS Levy
Electronic Security Received – IRS Levy
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IRS Authority
- The IRS' authority to receive and liquidate seized property for outstanding debt owed to the U.S. Government 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.
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.
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.
For any special circumstances not addressed here, please use the "Contact Us" link at the top of this page.
Direct Registration (DRS) Advice
In order to make it easier to pull your securities into our account, it would be helpful to 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.)
