[Code of Federal Regulations]
[Title 26, Volume 18]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR301.6334-3]

[Page 295-296]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 301_PROCEDURE AND ADMINISTRATION--Table of Contents
 
               Seizure of Property for Collection of Taxes
 
Sec. 301.6334-3  Determination of exempt amount.

    (a) Individuals paid on weekly basis. In the case of any individual 
who is paid or receives all of his or her wages, salary, and other 
income on a weekly basis, the amount of wages, salary, and other income 
payable to or received by him or her during any week that is exempt from 
levy under section 6334(a)(9) is the exempt amount.
    (b) Term defined. The term exempt amount means an amount equal to--
    (1) The sum of--
    (i) The standard deduction (including additional standard deductions 
on account of age or blindness); and
    (ii) The aggregate amount of the deductions for personal exemptions 
allowed the taxpayer under section 151 in the taxable year in which such 
levy occurs;
    (2) Divided by 52.
    (c) Written and properly verified statement. Unless the taxpayer 
submits to the employer for forwarding to the district director a 
written and properly verified statement (as described in Sec. 301.6334-
4) specifying the facts necessary to determine the proper amount under 
paragraphs (b)(1) (i) and (ii) of this section, paragraphs (b)(1) (i) 
and (ii) of this section must be applied as if the taxpayer were a 
married individual filing a separate return with only 1 personal 
exemption.
    (d) Individuals paid on basis other than weekly--(1) In general. In 
the case of an individual who is paid or receives wages, salary, and 
other income other than on a weekly basis, the amount payable to that 
individual during any applicable pay period that is exempt from levy 
under section 6334(a)(9) is the amount that as nearly as possible will 
result in the same total exemption from levy for such individual over 
that period of time other than weekly as that to which the individual 
would have been entitled under paragraph (b)

[[Page 296]]

of this section if, during such period of time, the individual were paid 
or received such wages, salary, and other income on a regular weekly 
basis.
    (2) Specific pay periods other than weekly. In the case of wages, 
salary, or other income paid to an individual on the basis of an 
established calendar period regularly used by the employer or other 
person levied upon for payroll or payment purposes, the exempt amount of 
wages, salary, and other income payable to or received by an individual 
during an applicable pay period other than weekly equals--
    (i) The sum of--
    (A) The standard deduction (including additional standard deductions 
on account of age or blindness); and
    (B) The aggregate amount of the deductions for personal exemptions 
allowed the taxpayer under section 151 in the taxable year in which such 
levy occurs;
    (ii) Divided by--
    (A) 260 in the case of a daily pay period;
    (B) 26 in the case of a bi-weekly pay period;
    (C) 24 in the case of a semi-monthly pay period; and
    (D) 12 in the case of a monthly pay period.
    (3) Nonspecific pay periods. In the case of wages, salary, or other 
income paid to an individual on a one-time or a recurrent but irregular 
basis and which is not paid on the basis of an established calendar 
period regularly used by the employer or other person levied upon for 
payroll or payment purposes, the exempt amount of wages, salary, and 
other income payable to or received by an individual equals the exempt 
amount defined in paragraph (b) of this section multiplied by the number 
(but not more than 52) of full weeks (consisting of seven calendar days) 
to which such payment is attributable. The provisions of this paragraph 
(d)(3) may be illustrated by the following example:

    Example. Taxpayer A's exempt amount per week (as determined under 
paragraph (b) of this section) is $100. Taxpayer A is hired by 
Corporation X to perform a specific task for Corporation X at a flat fee 
of $1,500 which is to be paid at the completion of the task. Taxpayer A 
completes the task in 10 weeks. The total exempt amount is $1,000 and 
$500 is subject to levy.

    (e) Levies continuing into following years. The exempt amount is 
computed on the basis of the standard deduction (including additional 
standard deductions on account of age or blindness) for the taxpayer's 
filing status and the amount of the deduction for a personal exemption 
in effect in the taxable year in which the original notice of levy is 
served. Unless the taxpayer submits a new verified statement in 
accordance with Sec. 301.6334-4, the exempt amount remains the same for 
pay periods following the pay period in which the notice of levy is 
served even if there is a change in the taxpayer's factual situation or 
a change by operation of law (such as by indexing or otherwise) to the 
standard deduction or personal exemption amounts.
    (f) Effective date. These provisions are effective with respect to 
levies made on or after July 1, 1989. However, any reasonable attempt by 
a taxpayer to comply with the statutory amendments addressed by these 
regulations prior to February 21, 1995 will be considered as meeting the 
requirements of these regulations.

[T.D. 8568, 59 FR 53089, Oct. 21, 1994]