MODIFICATIONS TO LBEN AND LEVY PROVISIONS.

Sec. 501. MODIFICATIONS TO LBEN AND LEVY PROVISIONS. (a) Withdrawal of Certain Notices.— Section 6323 (relating to validity and priority against certain persons) is amended by adding at the end the following new subsection: “(j) Withdrawal of Notice in Certain Circumstances.— “(1) In general.— The Secretary may withdraw a notice of a lien filed under this section and this chapter shall be applied as if the withdrawn notice had not been filed, if the Secretary determines that— “(A) the filing of such notice was premature or otherwise not in accordance with administrative procedures of the Secretary, “(B) the taxpayer has entered into an agreement under section 6159 to satisfy the tax liability for which the lien was imposed by means of installment pa3mients, unless such agreement provides otherwise, “(C) the withdrawal of such notice will facilitate the collection of the tax liability, or “(D) with the consent of the Taxpayer or the Taxpayer Advocate, the withdrawal of such notice would be in the best interests of the taxpayer (as determined by the Taxpayer Advocate) and the United States. Any such withdrawal shall be made by filing notice at the same office as the withdrawn notice. A copy of such notice of withdrawal shall be provided to the taxpayer. “(2) Notice to Credit Agencies, Etc.— Upon written request by the taxpayer with respect to whom a notice of a lien was withdrawn under paragraph (1), the Secretary shall promptly make reasonable efforts to notify credit reporting agencies, and any financial institution or creditor whose name and address is specified in such request, of the withdrawal of such notice. Any such request shall be in such form as the Secretary may prescribe.”. (b) Return of Levied Property in Certain Cases.— Section 6343 (relating to authority to release levy and return property) is amended by adding at the end the following new subsection: “(d) Return of Property in Certain Cases.— If— “(1) any property has been levied upon, and “(2) the Secretary determines that— “(A) the levy on such property was premature or otherwise not in accordance with administrative procedures of the Secretary, “(B) the taxpayer has entered into an agreement under section 6159 to satisfy the tax liability for which the levy110 STAT. 1461 was imposed by means of installment payments, unless such agreement provides otherwise, “(C) the return of such property will facilitate the collection of the tax liability, or “(D) with the consent of the taxpayer or the Taxpayer Advocate, the return of such property would be in the best interests of the taxpayer (as determined by the Taxpayer Advocate) and the United States, the provisions of subsection (b) shall apply in the same manner as if such property had been wrongly levied upon, except that no interest shall be allowed under subsection (c).”. (d) Effective Date.— The amendments made by this section shall take effect on the date of the enactment of this Act.