Federal Register / Vol. 88, No. 198 / Monday, October 16, 2023 / Proposed Rules 71323 

it to any person or circumstances is held 

invalid, the validity of the remainder of 

this subpart, or the applicability thereof 

to other persons or circumstances shall 

not be affected thereby. 

§ 1240.77 Amendments. 

Amendments to this subpart may be 

proposed from time to time by the Board 

or any interested Person affected by the 

provisions of the Act, including the 

Secretary. 

§ 1240.78 OMB control number. 

The control numbers assigned to the 

information collection requirements by 

the Office of Management and Budget 

pursuant to the Paperwork Reduction 

Act of 1995, 44 U.S.C. chapter 35, are 

OMB control numbers 0505–0001 

(Background Information Form), 0581– 

0093 (Organic Exemption), and 0581– 

NEW. 

Subpart B—[Reserved] 

Melissa Bailey, 

Associate Administrator, Agricultural 

Marketing Service. 

[FR Doc. 2023–22502 Filed 10–13–23; 8:45 am] 

BILLING CODE P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 301 

[REG–127391–16] 

RIN 1545–BQ34 

Modernizing Regulations on Sales of 

Seized Property 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Notice of proposed rulemaking. 

SUMMARY: This document contains 

proposed amendments to modernize 

regulations regarding the sale of a 

taxpayer’s property that the IRS seizes 

by levy. The proposed amendments 

would allow the IRS to maximize sale 

proceeds for the benefit of the taxpayer 

whose property the IRS has seized and 

the public fisc. The proposed 

regulations would affect all sales of 

property the IRS seizes by levy. 

DATES: Electronic or written comments 

and requests for a public hearing must 

be received by December 15, 2023. 

ADDRESSES: Commenters are strongly 

encouraged to submit public comments 

electronically. Submit electronic 

submissions via the Federal 

eRulemaking Portal at 

www.regulations.gov (IRS REG–127391– 

16). Once submitted to the Federal 

eRulemaking Portal, comments cannot 

be edited or withdrawn. The 

Department of the Treasury (Treasury 

Department) and the IRS will publish 

any comments submitted electronically, 

and on paper, to the public docket. 

Paper submissions may be sent to: 

CC:PA:LPD:PR (REG–127391–16), Room 

5203, Internal Revenue Service, P.O. 

Box 7604, Ben Franklin Station, 

Washington, DC 20044. 

FOR FURTHER INFORMATION CONTACT: 

Concerning the proposed regulations, 

Micah A. Levy, (202) 317–6832; 

concerning the submission of comments 

or requests for a public hearing, Vivian 

Hayes (202) 317–6901 (not toll-free 

numbers) or by sending an email to 

publichearings@irs.gov. 

SUPPLEMENTARY INFORMATION: 

Background 

This document contains proposed 

amendments to the Procedure and 

Administration Regulations (26 CFR 

part 301) under section 6335 of the 

Internal Revenue Code (Code) relating to 

the sale of property that is seized by 

levy (seized property). 

I. Statutory Background 

Section 6335 of the Code governs how 

the IRS sells seized property. It was 

enacted as part of the Internal Revenue 

Code of 1954, Public Law 83–591, ch. 

736, 68A Stat. 3, 785–86 (1954), though 

many of its provisions date back to 

1866. See Act of July 3, 1866, ch. 184, 

14 Stat. 106, 107–110 (1866). 

Section 6335(a) requires the Secretary 

of the Treasury or her delegate 

(Secretary), as soon as practicable after 

a seizure, to give written notice of the 

seizure to the owner of the property that 

was seized (or, in the case of personal 

property, to the property’s possessor). 

The notice must specify the sum 

demanded and contain, in the case of 

personal property, an account of the 

property seized and, in the case of real 

property, a description with reasonable 

certainty of the seized property. Notice 

must be given to the owner (or 

possessor) either in person, by leaving it 

at the owner’s (or possessor’s) usual 

place of abode or business, or, in certain 

instances, by mail. 

Section 6335(b) requires the 

Secretary, as soon as practicable after a 

seizure, to give the property’s owner 

written notice of the forthcoming sale. 

The notice must be provided in the 

same manner prescribed in section 

6335(a) for the notice of seizure. Section 

6335(b) also requires that the Secretary 

publicize the sale to the general public 

by publishing notice ‘‘in some 

newspaper published or generally 

circulated within the county wherein 

such seizure is made,’’ or if such a 

newspaper does not exist, by posting 

‘‘notice at the post office nearest the 

place where the seizure is made and in 

not less than two other public places.’’ 

The notice of sale must specify the 

property to be sold and the time, place, 

manner, and conditions of the sale. 

Section 6335(c) provides that if seized 

property is not divisible in a way that 

would allow for a sale of part of the 

property to fully satisfy the whole 

amount of the tax and expenses, the 

Secretary is to sell the whole property. 

Section 6335(d) requires that the time 

of sale be not less than 10 days nor more 

than 40 days from the time public notice 

of the sale is provided under section 

6335(b). The place of sale must be 

within the county in which the property 

is seized except by special order of the 

Secretary. 

Section 6335(e) specifies the manner 

and conditions of sale. Section 

6335(e)(1) provides general rules about 

determinations relating to the minimum 

price, a sale being made to the highest 

bidder at or above the minimum price, 

the instances in which property will be 

deemed sold to the United States at the 

minimum price, and the instances in 

which the property will be released to 

the owner. Section 6335(e)(2) further 

directs the Secretary to prescribe by 

regulation the following additional rules 

applicable to the manner and other 

conditions of sale: requiring the sale not 

to be conducted in any manner other 

than by public auction or by public sale 

under sealed bids; in the case of the 

seizure of several items of property 

whether the property is to be offered 

separately, in groups, or in the 

aggregate, and sold under whichever 

method produces the highest aggregate 

amount; whether the announcement of 

the minimum price may be delayed 

until the receipt of the highest bid; 

whether payment in full is to be 

required at the time of acceptance of a 

bid or whether a part of such payment 

may be deferred for a period not to 

exceed one month; the extent to which 

additional methods (including 

advertising) may be used in giving 

notice of a sale; and under what 

circumstances the Secretary may 

adjourn a sale from time to time not to 

exceed in all one month. Congress 

delegated this authority to allow the IRS 

‘‘latitude to provide modern rules for 

selling property in the best manner 

possible.’’ H.R. Rep. No. 83–1337, at 410 

(1954); S. Rep. No. 83–1622, at 578 

(1954). Section 6335(e)(3) specifies what 


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71324 Federal Register / Vol. 88, No. 198 / Monday, October 16, 2023 / Proposed Rules 

is to occur if a winning bidder fails to 

pay the bid amount. 

Section 6335(f) provides that the 

owner of seized property may request 

the Secretary to sell the property within 

60 days after such request (or within a 

longer period as may be specified by the 

owner). The Secretary must comply 

with the request unless the Secretary 

determines (and thereafter notifies the 

owner within the period) that doing so 

would not be in the best interests of the 

United States. 

II. Regulatory Background 

The current regulations implementing 

section 6335 are set forth in § 301.6335– 

1. Section 301.6335–1, which dates to 

1954, has not been revised except to 

incorporate minor statutory changes. 

See T.D. 6119, 20 FR 28 (Jan. 4, 1955) 

(initial publication); T.D. 7180, 37 FR 

7316 (Apr. 13, 1972) (amending 

§ 301.6335–1(b) to conform to an 

amendment to section 6335(b) made by 

section 104(d) of the Federal Tax Lien 

Act of 1966, Public Law 89–719, 80 Stat. 

1137 (1966), by expanding notice of sale 

publication to include newspapers that 

are ‘‘generally circulated’’ within the 

county); T.D. 8398, 57 FR 7545 (Mar. 3, 

1992) (implementing section 6236(g) of 

Technical and Miscellaneous Revenue 

Act of 1988, Public Law 100–647, 102 

Stat. 3342 (1988), which enacted section 

6335(f), by adding § 301.6335–1(d) to 

address the right of the owner of any 

seized property to request sale within 60 

days); T.D. 8691, 61 FR 66217 (Dec. 17, 

1996) (revisions to reflect amendment of 

section 6335(e) concerning the setting of 

a minimum price for seized property 

made by section 1570 of the Tax Reform 

Act of 1986, Public Law 99–514, 100 

Stat. 2764 (1986)); and T.D. 8939, 66 FR 

2821 (Jan. 12, 2001) (adding a crossreference in § 301.6335–1(b) to 

§ 301.6212–2 regarding the definition of 

‘‘last known address’’). Some provisions 

of § 301.6335–1 are dated, while others 

do not accommodate technological 

advances such as the advent of the 

internet and electronic payment 

processing. These proposed 

amendments would conform the 

prescribed manner and conditions of 

sales of seized property with modern 

practices. In comparison to the existing 

procedures, the proposed amendments 

would benefit taxpayers by making the 

sales process both more efficient and 

more likely to produce higher sales 

prices. 

Explanation of Provisions 

A. Place of Sale 

Section 6335(d) of the Internal 

Revenue Code (Code) requires that the 

place of sale be ‘‘within the county’’ in 

which the seizure of the subject 

property took place, ‘‘except by special 

order of the Secretary.’’ Section 

301.6335–1(c)(1) currently requires that 

the place of sale be within the county 

in which the seizure took place unless 

‘‘substantially higher bids’’ can be 

obtained by holding the sale elsewhere, 

in which case the district director may 

order that the sale be held in that other 

place. Section 6335(d) and current 

§ 301.6335–1(c)(1) do not expressly 

contemplate online sales. But online 

sales can attract a wider range of 

potential purchasers, and thus 

potentially higher bids, while 

conserving IRS resources. Given that 

section 6342(a) of the Code provides 

that money realized by the sale of seized 

property is applied against the expenses 

of the levy and sale before any 

remaining amount is made available to 

satisfy the liability of the taxpayer, 

taxpayers whose seized property is 

being sold benefit both when the IRS 

realizes more money from a sale and 

when the IRS incurs less expense in 

conducting the sale. 

Proposed § 301.6335–1(d)(1) would 

provide that the sale will be held at the 

time and place stated in the notice of 

sale. Proposed § 301.6335–1(d)(1) would 

further provide that the place of an inperson sale must be within the county 

in which the property is seized, except 

the sale may be held in a different 

county if the IRS determines, by special 

order, that substantially higher bids may 

be obtained by holding the sale in that 

different county. For online sales, 

proposed § 301.6335–1(d)(1) would 

provide that the place of sale will 

generally be within the county in which 

the property is seized such that a special 

order is not needed. For example, under 

the IRS’s current practice for online 

sales (which uses the special-order 

process), bids are solicited from incounty bidders, there is in-county 

advertising, the property is stored in the 

county, inspection of the property 

(when permitted) occurs in the county, 

and the winning bidder must retrieve 

the property from within the county. 

Under the proposed regulations, the 

place of sale for such online sales would 

be considered to be within the county 

in which the property was seized, and 

no special order would be needed. 

However, in the unusual situation in 

which an online sale deviates from 

current practice, such as if the seized 

property is moved out of the county for 

storage and remains out of the county 

during any allowable period for pre-sale 

inspection or if the internet is not 

generally available within the county, 

then proposed § 301.6335–1(d)(1) would 

require that such sale may be conducted 

on the internet only by special order 

when doing so would be more efficient 

or would likely result in more 

competitive bids. 

B. Offering of Property 

In the case of the seizure of several 

items of property, section 6335(e)(2)(B) 

of the Code allows the IRS to choose 

how to group the property for sale. In 

general, the property may be sold as 

separate items, as groups of items, or in 

the aggregate. Section 6335(e)(2)(B) of 

the Code also permits the IRS to offer 

property both separately (or in groups) 

and in the aggregate during the same 

sale, provided that the IRS sells the 

property ‘‘under whichever method 

produces the highest aggregate amount.’’ 

Section 301.6335–1(c)(5) currently 

restricts the situations in which both 

real and personal property may be 

grouped. This limits the IRS’s ability to 

determine on a case-by-case basis how 

to group property to produce the highest 

sale price. Proposed § 301.6335–1(d)(5) 

would provide that the IRS will choose 

the method of grouping property (or 

selling items separately) that will likely 

produce that highest overall sale 

amount and is most feasible. 

C. Terms of Payment 

Section 6335(e)(2)(D) of the Code 

states that regulations are to provide 

whether payment in full is required at 

the time of acceptance of the bid, or 

whether a part of such payment may be 

deferred for a period, not to exceed one 

month, as may be determined by the 

Secretary to be appropriate. In section 

301.6335–1, paragraphs (c)(5)(iv) and 

(c)(7) are proposed to be amended to 

allow for payment terms that may 

specifically accommodate the different 

types of property offerings and methods 

of sale. For example, in the context of 

an online sale, the notice of sale may 

specify the time period in which the 

winning bidder must submit payment 

after being notified of the bid’s 

acceptance. Allowing such a period, 

which is consistent with the IRS’s 

current sales practice, allows time for 

the winning bidder to be notified of the 

accepted bid and to remit payment. 

Currently, § 301.6335–1(c)(5)(iv)(b) 

provides that if the aggregate price of all 

property purchased by a successful 

bidder at a sale is more than $200, the 

bidder must make an initial payment of 

$200 or 20 percent of the purchase 

price, whichever is greater. These 

thresholds are not required by statute. 

To give the IRS greater flexibility to set 

the terms for payment, § 301.6335– 

1(c)(5)(iv)(b), which is proposed to be 


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redesignated as § 301.6335– 

1(d)(5)(iv)(B), is proposed to be 

amended to remove the $200 or 20 

percent requirements, and provide that 

the public notice of sale, or the 

instructions referenced in the notice, 

will specify the amount of the initial 

payment that must be made when full 

payment is not required upon 

acceptance of the bid. 

D. Method of Sale 

Section 6335(e)(2)(A) of the Code 

specifies that sales of seized property 

cannot be conducted in any manner 

other than by public auction or by 

public sale under sealed bids. Sections 

301.6335–1(c)(6)(i) and (ii) reiterate that 

rule. Section 301.6335–1(c)(6)(ii) 

provides procedures applicable to 

public sales under sealed bids. Some of 

those procedures apply to public 

auctions. For example, under current 

IRS practice, in a public auction sale, 

the IRS may accept mail-in bids, so long 

as the form of payment, the amount of 

the bid, and the location and time for a 

bid’s submission comply with the terms 

in the public notice of sale. I.R.M. 

5.10.4.4.1 (Aug. 29, 2017). Those rules 

closely align with the procedures for 

submitting bids for sealed bid sales. 

Accordingly, in § 301.6335–1, 

paragraphs (c)(6)(i) and (ii) are proposed 

to be collapsed into one paragraph, 

proposed (d)(6), and, except where 

specifically noted, the provisions under 

§ 301.6335–1(c)(6)(ii) are proposed to be 

revised (and redesignated as provisions 

under § 301.6335–1(d)(6)) as follows to 

apply to all sales under section 6335 of 

the Code. 

1. Form for Use by Bidders 

Section 301.6335–1(c)(6)(ii)(b) 

currently requires that bidders use the 

form provided by the IRS upon the 

bidder’s request. The provision, which 

is proposed to be redesignated 

§ 301.6335–1(d)(6)(ii), is proposed to be 

amended to provide that the bidder 

should use the form or submission 

method specified in the notice of sale or 

in instructions referenced by the notice. 

For example, the notice of sale may 

direct bidders to a specific website for 

the form or method of bid submission. 

2. Remittance and Payment Methods 

In section 301.6335–1, paragraphs 

(c)(6)(ii)(c) and (c)(7) currently specify 

how bid remittances and payments of 

bid prices are to be made. Those 

sections require that remittances and 

payments be made by check or money 

order. This requirement precludes other 

commercially acceptable payment 

options—such as electronic payments, 

credit or debit card payments, or any 

other commercially acceptable means 

authorized by the IRS—even though 

section 6335 of the Code does not limit 

the methods by which bidders can make 

remittances or pay the bid price. Section 

301.6335–1(c)(6)(ii)(c), which is 

proposed to be redesignated § 301.6335– 

1(d)(6)(iii), and § 301.6335–1(c)(7), 

which is proposed to be redesignated 

§ 301.6335–1(d)(7), are thus proposed to 

be amended to provide that remittances 

and payments are to be made in the 

manner specified in the notice of sale or 

in instructions referenced by the notice. 

For example, the public notice of sale or 

its instructions could specify that all 

remittances or payments for a particular 

sale must be made by check, credit or 

debit card, or a particular form of 

electronic payment. 

3. Amount of Remittance With Bid 

Section 301.6335–1(c)(6)(ii)(c) 

currently specifies the amount of money 

a bidder must remit with a sealed bid. 

Under that section, if the total bid is 

$200 or less, then the bidder must remit 

the full amount and, if the total bid is 

more than $200, then the bidder must 

remit the greater of $200 or 20 percent 

of the bid. 

Section 6335 of the Code does not 

specify any amount that must be 

remitted with a bid except where full 

payment is required. Additionally, as 

previously stated, the amounts currently 

required by § 301.6335–1(c)(6)(ii)(c) 

have never been updated. To give the 

IRS flexibility to set the terms for 

bidding, § 301.6335–1(c)(6)(ii)(c), which 

is proposed to be redesignated 

§ 301.6335–1(d)(6)(iii), is proposed to be 

amended by removing the specific $200 

threshold. This provision is proposed to 

provide that the public notice of sale, or 

instructions referenced in the notice, 

will specify the amount, if any, required 

as a remittance with a bid. 

4. Method of Submitting and 

Withdrawing Bids 

Section 301.6335–1(c)(6)(ii)(d) 

specifies the manner for submitting 

sealed bids. The provision requires that 

sealed bids be submitted in a sealed 

envelope. That requirement precludes 

electronic submission of sealed bids. 

The provision also does not address 

how bidders in a public auction should 

submit bids. The provision, which is 

proposed to be redesignated § 301.6335– 

1(d)(6)(iv), is proposed to provide that 

bids for a particular sale—whether 

public auction or public sale under 

sealed bids and whether online or not— 

be submitted in the manner prescribed 

by the IRS in the notice of sale or in 

instructions referenced by the notice. 

Section 301.6335–1(c)(6)(ii)(f) 

specifies that sealed bids may be 

withdrawn in writing or by telegraphic 

request before the time fixed for the 

opening of bids. To permit electronic 

bid withdrawals, the provision, which is 

proposed to be redesignated § 301.6335– 

1(d)(6)(vi), is proposed to be amended to 

provide that bid withdrawals may be 

made in any manner that is specified in 

the notice of sale or in instructions 

referenced by the notice. 

5. Consideration of Bids 

Section 301.6335–1(c)(6)(ii)(e) 

currently provides that if, at a public 

sale under sealed bids, there is a tie 

amongst bids for the highest amount the 

IRS will determine the successful bidder 

by drawing lots. The provision, which is 

proposed to be redesignated § 301.6335– 

1(d)(6)(v), is proposed to be amended to 

provide that the IRS will reopen the 

bidding until a highest bid is submitted 

without any ties. This change is 

consistent with the IRS’s current 

practice. 

E. Personnel Involved in Sale 

Section 3443 of the Internal Revenue 

Service Restructuring and Reform Act 

(Act), Public Law 105–206, 112 Stat. 

685, 762 (1998), requires the IRS to 

‘‘implement a uniform asset disposal 

mechanism for sales under section 

6335’’ that ‘‘should be designed to 

remove any participation in such sales 

by revenue officers.’’ Section 3443 of the 

Act does not apply to sales of perishable 

goods under section 6336 of the Code. 

To implement section 3443 of the Act, 

the IRS created the position of Property 

Appraisal and Liquidation Specialist 

(PALS). A PALS conducts sales of 

property seized under section 6335 of 

the Code. In doing so, they often receive 

assistance from other IRS employees in 

performing certain ministerial activities, 

such as delivering notices of sale and 

logging the receipt of sealed bids. 

Revenue officers have long been called 

on to assist an assigned PALS with 

those ministerial activities. 

In enacting section 3443 of the Act, 

Congress sought to address a lack of 

uniformity and fairness in the sales 

process, such as that caused by potential 

bias of the revenue officer who seized 

the property to be sold. In the 

Conference Report to the Restructuring 

and Reform Act, the conferees 

recognized that tax sales were ‘‘often 

conducted by the revenue officer 

charged with collecting the tax 

liability.’’ H.R. Rep. No. 105–559, at 284 

(1998). Additionally, the Senate Report 

accompanying the Restructuring and 

Reform Act stated that the Finance 

Committee ‘‘believes that it is important 


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for fairness and the appearance of 

propriety that the revenue officers 

charged with collecting unpaid tax 

liability are not personally involved 

with the sale of seized property.’’ S. 

Rep. No. 105–174, at 85 (1998). Those 

statements reflect the concern that the 

revenue officer who seized the property 

does not participate in the property’s 

sale. 

New proposed § 301.6335–1(d)(11) 

would address that concern by 

precluding any revenue officer who 

participated in the seizure of the 

property to be sold from participating in 

the sale. This proposed amendment is 

intended to provide clarity to the IRS in 

making decisions about which 

employees will be assigned to conduct 

sales or perform related ministerial 

duties and that the restriction on 

participation in sales does not apply to 

sales of perishable goods conducted 

under section 6336 of the Code. 

F. Other Changes 

This proposed regulation would also 

make non-substantive updates 

throughout § 301.6335–1. First, current 

§ 301.6335–1(a) is proposed to be 

redesignated and divided into two 

paragraphs, § 301.6335–1(b)(1) and (2). 

Second, current § 301.6335–1(a) and 

(b)(1) use the term ‘‘internal revenue 

district.’’ The usage matches that in 

sections 6335(a) and (b) of the Code. But 

changes to the IRS’s organizational 

structure following the Internal Revenue 

Service Restructuring and Reform Act 

eliminated ‘‘internal revenue districts.’’ 

See section 1001(a), 112 Stat. at 689; 

Grunsted v. Commissioner, 136 T.C. 

455, 461 (2011). The current analogous 

successor to an internal revenue district 

is a field collection territory. See I.R.M. 

1.1.16.3.1.1.1 (June 1, 2016); I.R.M. 

5.10.3.9 (May 23, 2016); I.R.M. 5.10.4.9 

(Aug. 29, 2017). Proposed § 301.6335– 

1(b)(1) would thus provide that the term 

‘‘internal revenue district’’ includes a 

field collection territory or other 

successor IRS subdivision or office. 

Third, where the current regulation 

refers to various job titles within the 

IRS, some of which no longer exist, the 

references have been replaced with 

more general references to territories or 

to the IRS or to its employees. Fourth, 

where the current regulation, in 

§ 301.6335–1(a) and (b), refers to giving 

a notice of seizure or sale to an 

individual (in their role as owner or 

possessor), the references are proposed 

to be replaced with references to the 

owner or possessor because an entity 

could also be an owner or possessor. 

Fifth, this proposed regulation would 

also eliminate § 301.6335–1(c)(3)(iii) 

and (c)(4)(iv), which deal with effective 

dates of the current regulation for sales 

made after December 17, 1996. Since all 

sales going forward will occur after that 

date, those provisions are no longer 

necessary. Sixth, some four-level 

headings in the current regulation have 

differing capitalization in their 

numbering. Compare § 301.6335– 

1(c)(3)(ii)(a) and (d)(2)(ii)(A). This 

proposed regulation would align the 

capitalization of those headings by, for 

example, redesignating § 301.6335– 

1(c)(3)(ii)(a) as § 301.6335–1(d)(3)(ii)(A) 

and § 301.6335–1(c)(5)(ii)(a) as 

§ 301.6335–1(d)(5)(ii)(A). And seventh, 

cross-references to entries that are 

proposed to be redesignated would be 

revised to match the redesignations. 

Proposed Applicability Date 

The proposed rules are proposed to 

apply to sales of property seized on or 

after the date of publication of the 

Treasury decision adopting the 

proposed rules as final regulations in 

the Federal Register. 

Special Analyses 

I. Regulatory Planning and Review 

Pursuant to the Memorandum of 

Agreement, Review of Treasury 

Regulations under Executive Order 

12866 (June 9, 2023), tax regulatory 

actions issued by the IRS are not subject 

to the requirements of section 6(b) of 

Executive Order 12866, as amended. 

Therefore, a regulatory impact 

assessment is not required. 

II. Regulatory Flexibility Act 

It is hereby certified that these 

proposed regulations will not have a 

significant economic impact on a 

substantial number of small entities 

pursuant to the Regulatory Flexibility 

Act (5 U.S.C. chapter 6). This 

certification is based on the fact that the 

proposed regulations solely conform the 

prescribed manner and conditions of 

sales of seized property with modern 

practices. In comparison to the existing 

procedures, the proposed regulations 

benefit taxpayers by making the sales 

process both more efficient and more 

likely to produce higher sales prices. 

Pursuant to section 7805(f) of the 

Internal Revenue Code, this notice of 

proposed rulemaking has been 

submitted to the Chief Counsel of the 

Office of Advocacy of the Small 

Business Administration for comment 

on its impact on small businesses. 

III. Unfunded Mandates Reform Act 

Section 202 of the Unfunded 

Mandates Reform Act of 1995 (UMRA) 

requires that agencies assess anticipated 

costs and benefits and take certain other 

actions before issuing a final rule that 

includes any Federal mandate that may 

result in expenditures in any one year 

by a State, local, or Tribal government, 

in the aggregate, or by the private sector, 

of $100 million in 1995 dollars, updated 

annually for inflation. This rule does 

not include any Federal mandate that 

may result in expenditures by State, 

local, or Tribal governments, or by the 

private sector in excess of that 

threshold. 

IV. Executive Order 13132: Federalism 

Executive Order 13132 (Federalism) 

prohibits an agency from publishing any 

rule that has federalism implications if 

the rule either imposes substantial, 

direct compliance costs on State and 

local governments, and is not required 

by statute, or preempts State law, unless 

the agency meets the consultation and 

funding requirements of section 6 of the 

Executive Order. These proposed 

regulations do not have federalism 

implications and do not impose 

substantial direct compliance costs on 

State and local governments or preempt 

State law within the meaning of the 

Executive Order. 

Comments and Requests for Public 

Hearing 

Before these proposed regulations are 

adopted as final regulations, 

consideration will be given to comments 

that are submitted timely to the 

Treasury Department and the IRS as 

prescribed in the preamble under the 

ADDRESSES section. The Treasury 

Department and the IRS request 

comments on all aspects of the proposed 

regulations. Any electronic and paper 

comments submitted will be available at 

www.regulations.gov or upon request. A 

public hearing will be scheduled if 

requested in writing by any person that 

timely submits written comments. If a 

public hearing is scheduled, notice of 

the date, time, and place for the public 

hearing will be published in the Federal 

Register. Announcement 2023–16, 

2023–20 I.R.B. 854 (May 15, 2023), 

provides that public hearings will be 

conducted in person, although the IRS 

will continue to provide a telephonic 

option for individuals who wish to 

attend or testify at a hearing by 

telephone. Any telephonic hearing will 

be made accessible to people with 

disabilities. 

Drafting Information 

The principal author of this regulation 

is Micah A. Levy, Office of the Associate 

Chief Counsel (Procedure and 

Administration). However, other 

personnel from the IRS and Treasury 

Department participated in the 

development of this regulation. 


ddrumheller on DSK120RN23PROD with PROPOSALS1
Federal Register / Vol. 88, No. 198 / Monday, October 16, 2023 / Proposed Rules 71327 

List of Subjects in 26 CFR Part 301 

Employment taxes, Estate taxes, 

Excise taxes, Gift taxes, Income taxes, 

Penalties, Reporting and recordkeeping 

requirements. 

Proposed Amendments to the 

Regulations 

Accordingly, the Treasury Department 

and the IRS propose to amend 26 CFR 

part 301 as follows: 

PART 301—PROCEDURE AND 

ADMINISTRATION 

■ 1. The authority citation for part 301 

continues to read in part as follows: 

Authority: 26 U.S.C. 7805. 

■ 2. Amend § 301.6335–1 by: 

■ a. Redesignating paragraphs (a) 

through (d) as paragraphs (b) through 

(e), respectively. 

■ b. Adding a new paragraph (a); 

■ c. Revising newly designated 

paragraphs (b) and (c)(1) and (2); 

■ d. Adding a subject heading to newly 

redesignated paragraph (c)(3); 

■ e. Revising newly redesignated 

paragraphs (d)(1) and (2) and (d)(3)(i) 

and (ii); 

■ f. Removing newly redesignated 

paragraph (d)(3)(iii); 

■ g. Revising newly redesignated 

paragraph (d)(4)(iii); 

■ h. Removing newly redesignated 

paragraph (d)(4)(iv); 

■ i. Revising newly redesignated 

paragraphs (d)(5)(i), (ii), and (iv), (d)(6), 

(7), and (9); 

■ j. Adding paragraph (d)(11); 

■ k. Revising newly redesignated 

paragraphs (e)(1) and (3); and 

■ l. Adding paragraph (f). 

The revisions and addition read as 

follows: 

§ 301.6335–1 Sale of seized property. 

(a) In general. Section 6335 of the 

Internal Revenue Code (Code) and this 

section provide the rules under which 

the Internal Revenue Service (IRS) 

conducts sales of property seized by 

levy. 

(b) Notice of seizure—(1) Issuance 

and delivery. As soon as practicable 

after seizure of property, the IRS must 

give written notice to the property’s 

owner (or, in the case of personal 

property, to the property’s possessor). 

The written notice must be delivered to 

the owner (or to the possessor, in the 

case of personal property) or left at the 

owner’s usual place of abode or 

business if there is such within the 

internal revenue district in which the 

seizure is made. If the owner cannot be 

readily located or has no dwelling or 

place of business within such district, 

the notice may be mailed to the owner’s 

last known address. For purposes of this 

section, the term internal revenue 

district means an internal revenue 

district within the meaning of section 

7621 of the Code and includes an IRS 

field collection territory or other 

successor IRS subdivision or office. 

(2) Contents. The notice of seizure 

must specify the sum demanded and 

contain, in the case of personal 

property, a list sufficient to identify the 

property seized and, in the case of real 

property, a description with reasonable 

certainty of the property seized. 

(c) * * * 

(1) In general. As soon as practicable 

after seizure of the property, the IRS 

must give notice of sale in writing to the 

owner. Such notice will be delivered to 

the owner or left at the owner’s usual 

place of abode or business if located 

within the internal revenue district in 

which the seizure is made. If the owner 

cannot be readily located or has no 

dwelling or place of business within 

such district, the notice may be mailed 

to the owner’s last known address. For 

further guidance regarding the 

definition of last known address, see 

§ 301.6212–2. The notice must specify 

the property to be sold, and the time, 

place, manner, and conditions of the 

sale thereof, and must expressly state 

that only the right, title, and interest of 

the delinquent taxpayer in and to such 

property is to be offered for sale. The 

notice will also be published in some 

newspaper published in the county 

wherein the seizure is made or in a 

newspaper generally circulated in that 

county. For example, if a newspaper of 

general circulation in a county but not 

published in that county will reach 

more potential bidders for the property 

to be sold than a newspaper published 

within the county, or if there is a 

newspaper of general circulation within 

the county but no newspaper published 

within the county, the IRS may publish 

the notice of sale in the newspaper of 

general circulation within the county. If 

there is no newspaper published or 

generally circulated in the county, the 

notice will be posted at the post office 

nearest the place where the seizure is 

made, to the extent authorized under 

law, and in not less than two other 

public places. 

(2) Alternative methods. The IRS may 

use other methods of giving notice of 

sale and of advertising seized property, 

in addition to those referred to in 

paragraph (c)(1) of this section, if the 

IRS believes that the nature of the seized 

property to be sold is such that a wider 

or more specialized advertising coverage 

will enhance the possibility of obtaining 

a higher price for the seized property. 

(3) Exception. * * * 

(d) * * * 

(1) Time and place of sale. The sale 

will be held at the time and place stated 

in the notice of sale. The time of sale 

will not be less than ten days nor more 

than 40 days from the time of giving 

public notice under section 6335(b) of 

the Code and paragraph (c) of this 

section. The place of an in-person sale 

will be within the county in which the 

property is seized, except such sale may 

be held at a place outside that county if 

the IRS determines, by special order of 

a delegated official, that substantially 

higher bids may be obtained for the 

property by holding the sale in such 

other county. The place of an online 

sale will generally be the county in 

which the property is seized. If, based 

on the facts and circumstances, the IRS 

determines that the place of an online 

sale is not within the county in which 

the property is seized, the sale may be 

conducted online by special order when 

doing so would be more efficient or 

would likely result in more competitive 

bids. 

(2) Adjournment of sale. When it 

appears that an adjournment of the sale 

will best serve the interest of the United 

States or that of the taxpayer, the IRS 

may adjourn the sale from time to time, 

but the date of the sale will not be later 

than one month after the date fixed in 

the original notice of sale. 

(3) * * * 

(i) Minimum price. Before the sale of 

property seized by levy, the IRS will 

determine a minimum price, taking into 

account the expenses of levy and sale, 

for which the property must be sold. 

The IRS will either announce the 

minimum price before the sale begins or 

defer announcement of the minimum 

price until after the receipt of the 

highest bid, in which case, if the highest 

bid is greater than the minimum price, 

no announcement of the minimum price 

will be made. 

(ii) Purchase by the United States. 

Before the sale of seized property, the 

IRS will determine whether the 

purchase of the property by the United 

States at the minimum price would be 

in the best interest of the United States. 

In determining whether the purchase of 

the property would be in the best 

interest of the United States, the IRS 

may consider all relevant facts and 

circumstances including, for example— 

(A) Marketability of property; 

(B) Cost of maintaining the property; 

(C) Cost of repairing or restoring the 

property; 

(D) Cost of transporting the property; 

(E) Cost of safeguarding the property; 

(F) Cost of potential toxic waste 

cleanup; and 


ddrumheller on DSK120RN23PROD with PROPOSALS1
71328 Federal Register / Vol. 88, No. 198 / Monday, October 16, 2023 / Proposed Rules 

(G) Other factors pertinent to the type 

of property. 

* * * * * 

(4) * * * 

(iii) Release to owner. If the property 

is not declared to be sold under 

paragraph (d)(4)(i) or (ii) of this section, 

the property will be released to the 

owner of the property and the expense 

of the levy and sale will be added to the 

amount of tax for the collection of 

which the United States made the levy. 

Any property released under this 

paragraph (d)(4)(iii) will remain subject 

to any lien imposed by subchapter C of 

chapter 64 of subtitle F of the Code. 

(5) * * * 

(i) Sale of indivisible property. If any 

property levied upon is not divisible, so 

as to enable the IRS by sale of a part 

thereof to raise the whole amount of the 

tax and expenses of levy and sale, the 

whole of such property will be sold. For 

application of surplus proceeds of sale, 

see section 6342(b) of the Code. 

(ii) Separately, in groups, or in the 

aggregate. The IRS, in selecting how 

seized property will be offered for sale, 

will consider which method is likely to 

produce the highest total sales price as 

well as which method is most feasible. 

The seized property may be offered for 

sale— 

(A) As separate items, 

(B) As groups of items, 

(C) In the aggregate, or 

(D) Both as separate items (or in 

groups) and in the aggregate, in which 

case, the property will be sold under the 

method that produces the highest 

aggregate amount. 

* * * * * 

(iv) Terms of payment. The property 

will be offered for sale in accordance 

with whichever of the following terms 

is fixed by the IRS in the public notice 

of sale: 

(A) Payment in full upon acceptance 

of the highest bid, or 

(B) An initial payment upon 

acceptance of the highest bid if the 

payment is in the amount (either the 

dollar amount or the percentage of the 

purchase price) specified in the notice 

of sale and followed by payment of the 

balance (including all costs incurred for 

the protection or preservation of the 

property subsequent to the sale and 

prior to final payment) within a 

specified period, not to exceed one 

month from the date of the sale. 

* * * * * 

(6) Method of sale and sale 

procedures. The IRS will sell the 

property either at a public auction (at 

which open competitive bids will be 

received) or at a public sale under 

sealed bids. 

(i) Invitation to bidders. Bids will be 

solicited through a public notice of sale. 

(ii) Form for use by bidders. A bid 

must be submitted in the manner 

specified by the IRS in the notice of sale 

or in instructions referenced by that 

notice. 

(iii) Remittance with bid. The notice 

of sale, or instructions referenced in the 

notice, will specify the initial payment 

amount, acceptable forms of the 

remittance (such as check, credit or 

debit card, electronic payment, or other 

means), and the address (physical or 

online) at which the bid and remittance 

must be submitted. 

(iv) Time for receiving bids. A bid will 

not be considered unless it is received 

in the manner and before the time 

specified in the notice of sale, 

instructions referenced in the notice, or 

in the announcement of the 

adjournment of the sale. 

(v) Consideration of bids. The public 

notice of sale will specify whether the 

property is to be sold separately, by 

groups, or in the aggregate, or by a 

combination of these methods, as 

provided in paragraph (d)(5)(ii) of this 

section. If the notice, or instructions 

referenced in the notice, specifies an 

alternative method, bidders may submit 

bids under one or more of the 

alternatives. In case of error in 

computing the total price of a group of 

property in any bid, the unit price of 

each piece of property will control. The 

IRS has the right to waive any technical 

defects in a bid. A technical defect in a 

bid is deemed waived if the IRS treats 

it as the winning bid. In the event two 

or more highest bids are equal in 

amount, the IRS will reopen the bidding 

until a high bid is submitted without 

any ties. After the opening, 

examination, and consideration of all 

bids, the IRS will announce the amount 

of the highest bid or bids and the name 

of the successful bidder or bidders. Any 

remittance submitted in connection 

with an unsuccessful bid will be 

returned at the conclusion of the sale. 

(vi) Withdrawal of bids. A bid may be 

withdrawn only in the manner specified 

in the notice of sale or in instructions 

referenced in the notice. A technical 

defect in a bid confers no right on the 

bidder for the withdrawal of the bid 

after it has been opened or accepted. 

(7) Payment of bid price. All 

payments for property sold under this 

section must be made in the form and 

manner (whether by check, credit or 

debit card, electronic payment, or other 

means) specified by the IRS in the 

public notice of sale or in instructions 

referenced in the notice. If payment in 

full is required upon acceptance of the 

highest bid, the payment must be made 

at the time and in accordance with the 

terms specified in the notice of sale. If 

deferred payment is permitted, the 

initial payment must be made upon 

acceptance of the bid at the time and in 

accordance with the terms specified in 

the notice of sale, and the balance must 

be paid on or before the date fixed for 

payment thereof. Any remittance 

submitted with a successful bid will be 

applied toward the purchase price. 

* * * * * 

(9) Default in payment. If payment in 

full is required upon acceptance of the 

bid and is not paid when due, the IRS 

will proceed again to sell the property 

in the manner provided in section 

6335(e) of the Code and this section. If 

the conditions of the sale permit part of 

the payment to be deferred, and if such 

part is not paid within the prescribed 

period, suit may be instituted against 

the purchaser for the purchase price or 

such part thereof as has not been paid, 

together with interest at the rate of six 

percent per annum from the date of the 

sale; or, in the discretion of the IRS, the 

sale may be declared null and void for 

failure to make full payment of the 

purchase price and the property may 

again be advertised and sold as 

provided in subsections (b), (c), and (e) 

of section 6335 of the Code and this 

section. In the event of such 

readvertisement and sale, any new 

purchaser will receive such property or 

rights to property free and clear of any 

claim or right of the former defaulting 

purchaser, of any nature whatsoever, 

and the amount paid upon the bid price 

by such defaulting purchaser will be 

forfeited to the United States. 

* * * * * 

(11) Participation in sale by revenue 

officers. No revenue officer who seized 

the property to be sold at a sale 

conducted under section 6335 of the 

Code and this section may participate in 

the sale of that seized property. This 

restriction does not apply to sales of 

perishable goods conducted under 

section 6336 of the Code. 

(e) * * * 

(1) In general. The owner of any 

property seized by levy may request that 

the IRS sell such property within 60 

days after such request, or within any 

longer period specified by the owner. 

The IRS must comply with such a 

request unless it determines that 

compliance with the request is not in its 

best interests. If the IRS decides not to 

comply with the request, it must notify 

the owner of the determination within 

the 60-day period, or any longer period 

specified by the owner. 

* * * * * 


ddrumheller on DSK120RN23PROD with PROPOSALS1
Federal Register / Vol. 88, No. 198 / Monday, October 16, 2023 / Proposed Rules 71329 

(3) Notification to owner. The IRS will 

respond in writing to a request for sale 

of seized property as soon as practicable 

after receipt of such request and in no 

event later than 60 days after receipt of 

the request, or, if later, the date 

specified by the owner for the sale. 

(f) Applicability date. The rules of this 

section apply to sales of property seized 

on or after [DATE OF PUBLICATION 

OF FINAL RULE]. 

Douglas W. O’Donnell, 

Deputy Commissioner for Services and 

Enforcement. 

[FR Doc. 2023–22621 Filed 10–13–23; 8:45 am] 

BILLING CODE 4830–01–P 

DEPARTMENT OF LABOR 

Occupational Safety and Health 

Administration 

29 CFR Part 1903 

[Docket No. OSHA–2023–0008] 

RIN 1218–AD45 

Worker Walkaround Representative 

Designation Process 

AGENCY: Occupational Safety and Health 

Administration (OSHA), Labor. 

ACTION: Notice of proposed rulemaking; 

extension of public comment period. 

SUMMARY: On August 30, 2023, OSHA 

published a notice of proposed 

rulemaking (NPRM) titled ‘‘Worker 

Walkaround Representative Designation 

Process.’’ The period for submitting 

public comments is being extended by 

two weeks to allow stakeholders 

additional time to comment. 

DATES: The comment period for the 

proposed rule published in the Federal 

Register on August 30, 2023 (88 FR 

59825), is extended. Submit comments 

to the proposed rule and other 

information by November 13, 2023. 

ADDRESSES: Comments may be 

submitted as follows: 

Written comments: You may submit 

comments and attachments 

electronically at http://

www.regulations.gov, which is the 

Federal eRulemaking Portal. Follow the 

online instructions for submitting 

comments. 

Instructions: All submissions must 

include the agency’s name and docket 

number for this rulemaking (Docket No. 

OSHA–2023–0008). All comments, 

including any personal information you 

provide, are placed in the public docket 

without change and may be made 

available online at http://

www.regulations.gov. Therefore, OSHA 

cautions commenters about submitting 

information that they do not want made 

available to the public or submitting 

materials that contain personal 

information (either about themselves or 

others), such as Social Security numbers 

and birthdates. 

Docket: To read or download 

comments or other information in the 

docket, go to Docket No. OSHA–2023– 

0008 at http://www.regulations.gov. All 

comments and submissions are listed in 

the http://www.regulations.gov index; 

however, some information (e.g., 

copyrighted material) is not publicly 

available to read or download through 

that website. All comments and 

submissions, including copyrighted 

material, are available for inspection 

through the OSHA Docket Office. 

Contact the OSHA Docket Office at (202) 

693–2500 (TDY number 877–889–5627) 

for assistance in locating docket 

submissions. 

FOR FURTHER INFORMATION CONTACT: 

Press inquiries: Frank Meilinger, 

Director, OSHA Office of 

Communications, telephone: (202) 693– 

1999; email: meilinger.francis2@dol.gov. 

General and technical inquiries: 

Donald Klienback, OSHA Directorate of 

Construction, telephone: (202) 693– 

2020; email: klienback.donald.w@

dol.gov. 

Copies of this Federal Register 

notice and news releases: Electronic 

copies of these documents are available 

at OSHA’s web page at http://

www.osha.gov. 

SUPPLEMENTARY INFORMATION: 

On August 30, 2023, OSHA published 

a NPRM titled ‘‘Worker Walkaround 

Representative Designation Process.’’ 

(88 FR 59825). In the NPRM, OSHA 

proposed to amend its Representatives 

of Employers and Employees regulation 

to clarify that the representative(s) 

authorized by employees may be an 

employee of the employer or a third 

party; such third-party employee 

representative(s) may accompany the 

OSHA Compliance Safety and Health 

Officer (CSHO) when they are 

reasonably necessary to aid in the 

inspection. OSHA also proposed 

clarifications of the relevant knowledge, 

skills, or experience with hazards or 

conditions in the workplace or similar 

workplaces, or language skills of thirdparty representative(s) authorized by 

employees who may be reasonably 

necessary to the conduct of a CSHO’s 

physical inspection of the workplace. 

The public comment period for this 

NPRM was to conclude on October 30, 

2023, 60 days after publication of the 

NPRM. However, OSHA received 

requests from stakeholders for a 60-day 

extension of the public comment period 

(Document ID 0015; 0018). OSHA agrees 

to an extension of the public comment 

period and believes that a two-week 

extension is sufficient and appropriate 

in order to balance the agency’s need for 

timely input with the stakeholders’ 

request. Accordingly, the comment 

period for this NPRM is being extended 

and will now conclude on November 

13, 2023. 

Authority and Signature 

Douglas L. Parker, Assistant Secretary 

of Labor for Occupational Safety and 

Health, U.S. Department of Labor, 

authorized the preparation of this 

document pursuant to 29 U.S.C. 657; 5 

U.S.C. 553; Secretary of Labor’s Order 

8–2020, 85 FR 58393 (2020). 

Signed at Washington, DC. 

Douglas L. Parker, 

Assistant Secretary of Labor for Occupational 

Safety and Health. 

[FR Doc. 2023–22705 Filed 10–13–23; 8:45 am] 

BILLING CODE 4510–26–P 

POSTAL SERVICE 

39 CFR Part 111 

New Mailing Standards for Domestic 

Mailing Services Products 

AGENCY: Postal ServiceTM. 

ACTION: Proposed rule. 

SUMMARY: On October 6, 2023, the Postal 

Service (USPS®) filed a notice of 

mailing services price adjustments with 

the Postal Regulatory Commission 

(PRC), effective January 21, 2024. This 

proposed rule contains the revisions to 

Mailing Standards of the United States 

Postal Service, Domestic Mail Manual 

(DMM®) that we would adopt to 

implement the changes coincident with 

the price adjustments. Additionally, 

various portions of DMM section 207 

will be revised to implement the 

changes coincident with collapsing 

zones for Periodicals which was 

effective as of July 9, 2023. 

DATES: Submit comments on or before 

November 15, 2023. 

ADDRESSES: Mail or deliver written 

comments to the Manager, Product 

Classification, U.S. Postal Service, 475 

L’Enfant Plaza SW, Room 4446, 

Washington, DC 20260–5015. If sending 

comments by email, include the name 

and address of the commenter and send 

to PCFederalRegister@usps.gov, with a 

subject line of ‘‘January 2024 Domestic 

Mailing Services Proposal.’’ Faxed 

comments are not accepted. 

All submitted comments and 

attachments are part of the public record 


ddrumheller on DSK120RN23PROD with PROPOSALS1