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In United States v. Natl. Bank of Commerce, 472 U.S. 713
(1985), a nonbankruptcy case, the Supreme Court observed that an
“administrative levy, unlike a judicial lien-foreclosure action,
does not determine the ownership rights to the property.” Id. at
731 (citing United States v. Rodgers, 461 U.S. 677, 696 (1983)).
Moreover, in Natl. Bank of Commerce, the Supreme Court held that
“The Court, in other words, recognized what we now make explicit:
that � 6331[7] is a provisional remedy, which does not determine
7Sec. 6331 provides:
SEC. 6331. LEVY AND DISTRAINT.
(a) Authority of Secretary.–If any person liable to
pay any tax neglects or refuses to pay the same within 10
days after notice and demand, it shall be lawful for the
Secretary to collect such tax (and such further sum as shall
be sufficient to cover the expenses of the levy) by levy
upon all property and rights to property (except such
property as is exempt under section 6334) belonging to such
person or on which there is a lien provided in this chapter
for the payment of such tax. Levy may be made upon the
accrued salary or wages of any officer, employee, or elected
official, of the United States, the District of Columbia, or
any agency or instrumentality of the United States or the
District of Columbia, by serving a notice of levy on the
employer (as defined in section 3401(d)) of such officer,
employee, or elected official. If the Secretary makes a
finding that the collection of such tax is in jeopardy,
notice and demand for immediate payment of such tax may be
made by the Secretary and, upon failure or refusal to pay
such tax, collection thereof by levy shall be lawful without
regard to the 10-day period provided in this section.
(b) Seizure and Sale of Property.–The term “levy” as
used in this title includes the power of distraint and
seizure by any means. Except as otherwise provided in
subsection (e), a levy shall extend only to property
possessed and obligations existing at the time thereof. In
any case in which the Secretary may levy upon property or
(continued...)
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