[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: 26CFR301.6532-3]

[Page 390-391]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 301_PROCEDURE AND ADMINISTRATION--Table of Contents
 
                               Limitations
 
Sec. 301.6532-3  Periods of limitation on suits by persons other than 
taxpayers.

    (a) General rule. No suit or proceeding, except as otherwise 
provided in section 6532(c)(2) and paragraph (b) of this section, under 
section 7426 and Sec. 301.7426-1 relating to civil actions by persons 
other than taxpayers, shall be begun after the expiration of 9 months 
from the date of levy or agreement under section 6325(b)(3) giving rise 
to such action.
    (b) Period when claim is filed. The 9-month period prescribed in 
section 6532(c)(1) and paragraph (a) of this section shall be extended 
to the shorter of,
    (1) 12 months from the date of filing by a third party of a written 
request under Sec. 301.6343-1(b)(2) for the return of property 
wrongfully levied upon, or
    (2) 6 months from the date of mailing by registered or certified 
mail by the district director to the party claimant of a notice of 
disallowance of the part of the request to which the action relates. A 
request which, under Sec. 301.6343-1(b)(3), is not considered adequate 
does not extend the 9-month period described in paragraph (a) of this 
section.
    (c) Examples. The provisions of this section may be illustrated by 
the following examples:

    Example 1. On June 1, 1970, a tax is assessed against A with respect 
to his delinquent tax liability. On July 19, 1970, a levy is wrongfully 
made upon certain tangible personal property of B's which is in A's 
possession at that time. On July 20, 1970, notice of seizure is given to 
A. Thus, under section 6502(b), July 20, 1970, is the date on which the 
levy is considered to be made. Unless a request for the return of 
property is sooner made to extend the 9-month period, no suit or 
proceeding under section 7426 may be begun by B after April 20, 1971, 
which is 9 months from the date of levy.
    Example 2. Assume the same facts as in the preceding example except 
that, on August 3, 1970, B properly files a request for the return of 
his property wrongfully levied upon. Assume further that the district 
director mails, on March 1, 1971, a notice of disallowance of B's 
request for the return of the property. No suit or proceeding under 
section 7426 may be begun by B after August 3, 1971, which is 12 months 
from the date of filing a request for the return of property wrongfully 
levied upon.
    Example 3. Assume the same facts as in the preceding example except 
that the notice of disallowance of B's request for the return of

[[Page 391]]

property wrongfully levied upon is mailed to B on November 12, 1970. 
Since the 6-month period from the mailing of the notice of disallowance 
expires before the 12-month period from the date of filing the request 
for the return of property which ends on August 3, 1971, no suit or 
proceeding under section 7426 may be begun by B after May 12, 1971, 
which is 6 months from the date of mailing the notice of disallowance.

[T.D. 7305, 39 FR 9950, Mar. 15, 1974]