N.Y. Tax Law § 3022: Authority to release levy and return property

§ 3022. Authority to release levy and return property. (a) Release of

levy and notice of release. (1) The commissioner shall release the levy

upon all, or part of, the property or rights to property levied upon and

shall promptly notify the person upon whom such levy was made (if any)

that such levy has been released if:

(A) the liability for which such levy was made is satisfied or

becomes unenforceable by reason of lapse of time,

(B) release of such levy will facilitate the collection of such

liability,

(C) the taxpayer has entered into an agreement under section three

thousand ten of this article to satisfy such liability by means of

installment payments and such agreement provides for the release of

levy,

(D) the fair market value of the property exceeds such liability and

release of a levy on a part of such property could be made without

hindering the timely collection of such liability, or

(E) the commissioner has determined that such levy is creating an

economic hardship due to the financial condition of an individual

taxpayer.

(2) Expedited determination of certain business property. In the case

of any tangible personal property essential in carrying on the trade or

business of the taxpayer, the commissioner shall provide for an

expedited determination under paragraph one of this subdivision if levy

upon such tangible personal property would prevent the taxpayer from

carrying on such trade or business.

(3) The release of levy on any property under paragraph one or two of

this subdivision shall not prevent any subsequent levy on such property.

(b) Return of property. If the commissioner determines that property

has been wrongfully levied upon, it shall be lawful for the commissioner

to return:

(1) the specified property levied upon,

(2) the amount of money equal to the amount of money levied upon, or

(3) an amount of money equal to the fair market value of such

property.

(c) Interest. Interest shall be allowed and paid at the rate

established under section six hundred eighty-eight of this chapter on

the amount of money or the fair market value of the property seized.

(d) Return of property in certain cases. If the commissioner

determines that with respect to any property which has been levied upon:

(1) the levy on such property was premature or otherwise not in

accordance with administrative procedures of the commissioner,

(2) the taxpayer has entered into an agreement under section three

thousand ten of this article to satisfy the tax liability for which the

levy was imposed by means of installment payments, unless such agreement

provides otherwise,

(3) the return of such property will facilitate the collection of the

tax liability, or

(4) with the consent of the taxpayer or the commissioner, the return

of such property would be in the best interests of the taxpayer (as

determined by the commissioner) and the state of New York, the

provisions of subdivision (b) of this section shall apply in the same

manner as if such property had been wrongly levied upon, except that no

interest shall be allowed under subdivision (c) of this section.