Marty J. Meehan - Page 10

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          date of levy, until the levy is released pursuant to section                
          6343.  Sec. 301.6331-1(b)(1), Proced. & Admin. Regs.12                      
               Section 6331(e) does not specify the types of remuneration             
          that are covered by the term “salary or wages”.  The applicable             
          regulations provide, however, that the term “salary or wages”               
          includes “compensation for services paid in the form of fees,               
          commissions, bonuses, and similar items.”  Sec. 301.6331-1(b)(1),           
          Proced. & Admin. Regs.  The regulations provide no further                  
          explanation or illustration of these “similar items” of                     
          compensation and do not explicitly address whether the term                 
          “salary or wages” includes severance pay.  Thus, the language of            
          section 6331(e) and the regulations interpreting that Code                  
          section are ambiguous as to whether the term “salary or wages”              
          includes severance pay.13                                                   

               12 Sec. 6334(a)(9) exempts from levy certain amounts payable           
          to or received by an individual as salary or wages for personal             
               13 The legislative history provides little illumination as             
          to whether severance pay should be considered “salary or wages”             
          for this purpose.  Before 1976, a levy extended only to                     
          obligations that existed at the time of levy.  S. Rept. 94-938,             
          at 388 (1976), 1976-3 C.B. (Vol. 3) 49, 426.  Consequently, the             
          Commissioner was required to make successive levies in cases                
          involving salaries and wages.  S. Conf. Rept. 94-1236, at 489-490           
          (1976), 1976-3 C.B. (Vol. 3) 807, 893-894; see also United States           
          v. Long Island Drug Co., 115 F.2d 983 (2d Cir. 1940).  In 1976,             
          sec. 6331(e) was added to the Code by the Tax Reform Act of 1976,           
          Pub. L. 94-455, sec. 1209, 90 Stat. 1709, to provide that “a levy           
          on salary or wages of a taxpayer is to be continuous from the               
          date the levy is first made until the tax liability with respect            
          to which it is made is satisfied or becomes unenforceable because           

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