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

§ 3022. Authority to release levy and return property. (a) Release of\nlevy and notice of release. (1) The commissioner shall release the levy\nupon all, or part of, the property or rights to property levied upon and\nshall promptly notify the person upon whom such levy was made (if any)\nthat such levy has been released if:\n (A) the liability for which such levy was made is satisfied or\nbecomes unenforceable by reason of lapse of time,\n (B) release of such levy will facilitate the collection of such\nliability,\n (C) the taxpayer has entered into an agreement under section three\nthousand ten of this article to satisfy such liability by means of\ninstallment payments and such agreement provides for the release of\nlevy,\n (D) the fair market value of the property exceeds such liability and\nrelease of a levy on a part of such property could be made without\nhindering the timely collection of such liability, or\n (E) the commissioner has determined that such levy is creating an\neconomic hardship due to the financial condition of an individual\ntaxpayer.\n (2) Expedited determination of certain business property. In the case\nof any tangible personal property essential in carrying on the trade or\nbusiness of the taxpayer, the commissioner shall provide for an\nexpedited determination under paragraph one of this subdivision if levy\nupon such tangible personal property would prevent the taxpayer from\ncarrying on such trade or business.\n (3) The release of levy on any property under paragraph one or two of\nthis subdivision shall not prevent any subsequent levy on such property.\n (b) Return of property. If the commissioner determines that property\nhas been wrongfully levied upon, it shall be lawful for the commissioner\nto return:\n (1) the specified property levied upon,\n (2) the amount of money equal to the amount of money levied upon, or\n (3) an amount of money equal to the fair market value of such\nproperty.\n (c) Interest. Interest shall be allowed and paid at the rate\nestablished under section six hundred eighty-eight of this chapter on\nthe amount of money or the fair market value of the property seized.\n (d) Return of property in certain cases. If the commissioner\ndetermines that with respect to any property which has been levied upon:\n (1) the levy on such property was premature or otherwise not in\naccordance with administrative procedures of the commissioner,\n (2) the taxpayer has entered into an agreement under section three\nthousand ten of this article to satisfy the tax liability for which the\nlevy was imposed by means of installment payments, unless such agreement\nprovides otherwise,\n (3) the return of such property will facilitate the collection of the\ntax liability, or\n (4) with the consent of the taxpayer or the commissioner, the return\nof such property would be in the best interests of the taxpayer (as\ndetermined by the commissioner) and the state of New York, the\nprovisions of subdivision (b) of this section shall apply in the same\nmanner as if such property had been wrongly levied upon, except that no\ninterest shall be allowed under subdivision (c) of this section.\n