Return of Levied Property

IRS is allowed to return levied property, including money deposited in the Treasury, if the IRS determines that the:

• levy was premature or not in accordance with IRS procedures, 
• taxpayer has entered into an installment agreement to satisfy the liability on the levy (unless the agreement provides otherwise), 
• return of the property will facilitate collection of tax, or 
• return of the property would be in the best interests of the taxpayer (as determined by the Taxpayer Advocate) and the Government.

Effective on the date of enactment.

Levy Exemption Modification

Increases the personal property exemption to $2,500, and $1,250 for books and tools of trade. These amounts are indexed for inflation after 1996.

Effective for levies issued after 12-31-96.

Offers-In-Compromise

For acceptances of offers in compromise, the liability threshold requiring a written Chief Counsel approval increases from $500 to $50,000.

Compromises below this threshold will be subject to continuing quality review.

Effective on the date of enactment.