In this comprehensive taxpayer’s guide to enforced collection, Briefly Taxing walks you through what every taxpayer must understand about IRS enforced collection.  The IRS’s authority to enforce the collection of taxes through liens, levies, and other means is a formidable aspect of the United States tax system, often evoking a (well-deserved) sense of dread among taxpayers.

Enforced collection is not just a theoretical concept; it is the practical reality of the IRS’s power to ensure compliance with tax obligations. This article delves into the procedural intricacies of IRS enforced collection, exploring how the IRS assesses taxes, imposes liens, and executes levies against delinquent taxpayers who fail to meet their federal tax obligations (and who are utterly unwavering in their commitment to avoid paying Uncle Sam). Understanding the procedure and mechanisms of IRS enforced collection is essential for both taxpayers and tax professionals, alike.

The mechanisms underlying IRS enforced collection efforts are governed by a complex set of rules and procedures designed to balance the government’s need to collect revenue with the taxpayer’s right to due process. From the moment a tax assessment is made, the clock starts ticking on a series of critical deadlines and procedures that have the potential (and the practical effect) of significantly impacting a taxpayer’s financial future—not to mention a taxpayer’s mental health.

This article provides a comprehensive overview of these procedures, offering insights into the statutory limitations, a taxpayer rights, and the potential outcomes of the IRS’s enforcement actions. Whether you are a taxpayer trying to understand your obligations or a professional advising clients, this article serves as an arrow in your tax quiver, providing the ins and outs of navigating the labyrinth of that is IRS enforced collection.

Part One: Assessment

Authority and Limits on Assessment

Assessment and collection of taxes are the IRS’s bread and butter, and arguably the very reason that the IRS exists at all. Consequently, it is no surprise that two whole chapters of the Code are dedicated to assessment and collection. In this section of the article, we will examine the statutes of limitation for assessments, some of the idiosyncrasies of the assessment regime, and how assessment fits into the broader concept of the IRS enforced collection framework.

Authority and Edict: IRS Enforced Collection

The IRS has the authority to make assessment of all taxes (including interest, additional amounts, additions to tax, and assessable penalties) imposed by the Code.^[1] Not only does it have the authority to assess taxes, but the IRS must also assess taxes that are determined by the taxpayer or by the IRS itself.^[2]

The assessment is made by recording the liability of the taxpayer by the IRS.^[3] It will provide a copy of the record of the assessment to the taxpayer upon request.^[4] Even when it comes to criminal restitution for failure to pay any tax imposed under the Code, the IRS must must also assess and collect such restitution in the same manner as if the amount were the underlying tax.^[5]

The IRS may—at any time within the period prescribed for assessment—make a supplemental assessment whenever it is ascertained that any assessment is imperfect or incomplete in any material respect, except to the extent of the restrictions contained in IRC § 6213, which deals with restrictions on assessment after filing of Tax Court petition.^[6]

 

Limitations on Assessment

Generally, the amount of any tax under the Code must be assessed within 3 years after the return (required to be filed by the taxpayer) was filed.^[7] This 3-year period applies to limit the assessment of tax whether or not the return was filed on or after its due date.^[8] If the IRS does not assess the tax within this period, no proceeding for collection may be begun after the expiration of the period.^[9]

A return filed before the last day prescribed by law or by regulations promulgated pursuant to law for the filing thereof, shall be considered as filed on that last day.^[10] So, if Uncle Bill files his return early (fat chance) on April 1^st, it will be treated as having been filed on April 15^th. However, the execution of a substitute for return by the IRS^[11] will not start the running of the period of limitations on assessment and collection.^[12] There are of course a number of exceptions.

 

 

Tax may be assessed at any time under three circumstances:

First, if the taxpayer made a false or fraudulent return with the intent to evade tax, the tax may be assessed, or proceeding in court for collection of the tax may be begun without assessment at any time.^[13]

Second, if the taxpayer willfully attempts in any manner to defeat or evade tax, the tax may be assessed, or proceeding in court for the collection of such tax may be begun without assessment at any time.^[14]

Third and finally (and most commonly), if the taxpayer failed to file a return at all, the tax may be assessed, or proceeding in court for the collection of such tax may be begun without assessment at any time.^[15]

If the taxpayers substantially omitted items, which is to say omitted from gross income in excess of 25% of the income stated on the return, or is in excess of $5,000, the tax may be assessed, or proceeding in a court for collection of such tax may be begun without assessment at any time within six years after the return was filed.^[16]

If both the IRS and the taxpayer consent in writing to the assessment of tax after the expiration of the period of limitations, the tax may be assessed at any time prior to the expiration of the period agreed upon.^[17] Interestingly, this extension by agreement does not apply to estate taxes.^[18]

If the IRS receives an amended return signed by the taxpayer showing that the taxpayer owes an additional amount of tax, the period of assessment of such additional amount of tax will not expire before 60 days after the day on which the IRS received the amended return.^[19]

Erroneous Income Tax Prepayment Credits

If, on any return or claim for refund of income tax, the taxpayer overstates the credit for income tax withheld at the source, or of the amount paid as estimated income tax, the overstated amount credited or refunded may be assessed by the IRS similarly to a mathematical or clerical error, except that the provisions of IRC § 6213(b)(2)^[20] shall not apply.^[21]

Miscellaneous Issues under IRC § 6201

The IRS may not assess unpaid amounts of estimated income tax required to be paid under IRC § 6654 or IRC § 6655.^[22] Nor may the IRS assess unpaid amounts of federal unemployment taxes for any calendar quarter computed under IRC § 6157.^[23]

In addition, the IRS must provide reasonable verification of information returns in any court proceeding if the taxpayer asserts a reasonable dispute with respect to any item of income reported on the information return by a third party, and the taxpayer has fully cooperated with the IRS. In such case, the IRS has the burden of producing reasonable and probative information concerning the deficiency in addition to the information return.^[24]

Special Rules Applicable to Certain Employment Taxes

If less than the correct amount of FICA tax is withheld and paid to the IRS with respect to wages or other compensation, proper adjustments with respect to both the tax and the amount to be deducted will be made without interest by the IRS.^[25] If the underpayment cannot be adjusted, the amount of the underpayment will be assessed and collected by the IRS.^[26]

Authority and Limits on Assessment

Deficiencies, Generally

For purposes of income, estate, gift, and excise taxes, a deficiency is the amount by which the tax imposed by the Code exceeds the amount of tax shown on the taxpayer’s return, plus any amounts previously assessed as a deficiency less any abatement, credit, refund, or other repayment due to the taxpayer.^[27]

Statutory Notices of Deficiency

If the IRS determines that there is a deficiency with respect to income, gift, estate, or excise taxes, the IRS may send statutory notice of deficiency (SNOD) to the taxpayer by certified mail or registered mail.^[28] The mailing of the SNOD “shall be sufficient” if it is mailed to the taxpayer and his last known address—even if the taxpayer is deceased, under a legal disability, or, in the case of a corporation has terminated its existence.^[29]

In the absence of notice to the IRS of the existence of a fiduciary relationship,^[30] a SNOD for an estate tax deficiency is sufficient, if addressed in the name of the decedent or other person subject to liability and mailed to his last known address.^[31]

In the case of a joint income tax return, the SNOD may be a single joint notice; however, if the IRS has been notified by either spouse that separate residences have been established, then, in lieu of the single joint notice, a duplicate original of the joint notice must be sent by certified mail or registered mail to each spouse at his last known address.^[32]

If the IRS has mailed a SNOD to the taxpayer, and the taxpayer files a petition with the Tax Court within the time prescribed in the Code,^[33] the IRS may not determine any additional deficiency of income tax for the same taxable year, of gift tax for the same calendar year, of estate tax in respect of the taxable estate of the same decedent, or excise taxes for the same taxable year with respect to any act (or failure to act) to which the petition relates, except in the case of fraud, and except as provided in IRC § 6214(a),^[34] in IRC § 6213(b)(1),^[35] in IRC § 6851,^[36] IRC § 6852,^[37] or in IRC § 6861(c).^[38]

The IRS may, with the consent of the taxpayer, rescind any SNOD mailed to the taxpayer. Any rescinded notice may not be treated as a notice of deficiency relating to further deficiency notices or to limitations in the case of a petition to the Tax Court.^[39] The taxpayer will not have the right to file a petition with the Tax Court based on such notice.^[40] Rescinding the SNOD will not affect any suspension of the running of any period of limitations during which the notice was outstanding.^[41]

Restrictions Applicable to Deficiencies and Petition to the Tax Court

Within 90 days (150 days if the notice is addressed to a person outside the United States) after the SNOD^[42] is mailed (not counting Saturday, Sunday, or a legal holiday in the District of Columbia as the last day), the taxpayer may file a petition with the Tax Court for a redetermination of the deficiency.^[43]

It is critical to understand that the measuring date is the date on which the SNOD was mailed, i.e., the date in the upper right-hand corner of the letter, and not when it is received by the taxpayer. Any petition filed with the Tax Court on or before the last date specified for filing such petition by the Secretary in the notice of deficiency shall be treated as timely filed.^[44]

Except as otherwise provided with regard to termination and jeopardy assessments,^[45] no assessment of an income, estate, gift, or excise deficiency and no levy or proceeding in court for its collection may be “made, begun, or prosecuted” until the SNOD has been mailed to the taxpayer.^[46] Further, no assessment, levy or court proceeding may be made, begun, or prosecuted until the expiration of such 90-day (150-day period), nor, if a petition has been filed with the Tax Court, until the decision of the Tax Court has become final.^[47]

If, however, the IRS makes, begins, or prosecutes a levy or proceeding or makes such an assessment during the time the prohibition is in force, the IRS may be enjoined by a proceeding in the proper court, including the Tax Court, and a refund may be ordered.^[48] However, the Tax Court has no jurisdiction to enjoin any action or proceeding or order any refund under this subsection unless a timely petition for a redetermination of the deficiency has been filed and then only in respect of the deficiency that is the subject of that petition.^[49]

In any bankruptcy case, the running of the time for filing a petition in the Tax Court with respect to any deficiency will be suspended for the period during which the debtor is prohibited by reason of such case from filing a petition in the Tax Court with respect to such deficiency, and for 60 days thereafter.^[50]

If the taxpayer does not file a petition with the Tax Court within the time prescribed, the deficiency, notice of which has been mailed to the taxpayer, will be assessed, and must be paid upon notice and demand from the Secretary.^[51] The taxpayer may at any time (whether or not a notice of deficiency has been issued), by a signed notice in writing filed with the IRS, waive the restrictions on the assessment and collection of the whole or any part of the deficiency.^[52]

Assessment of Mathematical or Clerical Errors

If the IRS notifies the taxpayer that, on account of a mathematical or clerical error^[53] appearing on the return, there is a deficiency, and that an assessment has been or will be made on the basis of the mathematical or clerical error, this notice will not be considered as a notice of deficiency for the purposes of IRC § 6213(a),^[54] of IRC § 6212(c)(1),^[55] or of IRC § 6512(a).^[56] Furthermore, the taxpayer will not have the right to file a petition with the Tax Court based on this notice of the mathematical or clerical error.^[57] Each notice under this paragraph shall set forth the error alleged and an explanation thereof.^[58]

Within 60 days after notice of an assessment of a mathematical or clerical error is sent, the taxpayer may file a request for an abatement with the IRS.^[59] Upon receipt of such request, the Secretary shall abate the assessment.^[60]

Any reassessment of the tax with respect to which an abatement is made under this subparagraph is subject to the deficiency procedures prescribed by this subchapter.^[61] In the case of any abated assessment, no levy or proceeding in court for the collection of the assessment may be made, begun, or prosecuted during the 60-day period in which the assessment may be abated under this paragraph.^[62]

If the amount applied, credited, or refunded^[63] is in excess of the overassessment attributable to the carryback, the IRS may assess the amount of the excess as a deficiency as if it were due to a mathematical or clerical error appearing on the return.^[64]

Assessment of Amount Paid

If a taxpayer pays a tax, the IRS may assess a deficiency upon the receipt of such payment.^[65] In any case where the amount is paid after the notice of deficiency is mailed,^[66] the payment will not deprive the Tax Court of jurisdiction over such deficiency determined without regard to such assessment.^[67]

Determinations Made by Tax Court

If the IRS asserts a claim for an additional amount of deficiency prior to the hearing or rehearing of the petition, the Tax Court has the jurisdiction to redetermine the correct amount of the deficiency even if the redetermined amount is greater than the amount listed in the SNOD, and to determine whether any additional amount, or any addition to the tax should be assessed.^[68]

In redetermining a deficiency of income or gift tax, the Tax Court may consider other years or calendar quarters as necessary to correctly determine the amount of such deficiency, but in doing so has no jurisdiction to determine whether or not the tax for any other year calendar quarter has been overpaid or underpaid.^[69] Notwithstanding the fact that the Tax Court may not redetermine other years not listed on the SNOD, the Tax Court may apply the doctrine of equitable recoupment.^[70] The date on which a decision of the Tax Court becomes final shall be determined according to the provisions of IRC § 7481.^[71]

Assessment of Deficiency found by the Tax Court

If the taxpayer files a petition with the Tax Court, the entire amount redetermined as the deficiency by the decision of the Tax Court that has become final will be assessed and must be paid upon notice and demand from the IRS.^[72] No part of the amount determined as a deficiency by the IRS but disallowed as such by the final decision of the Tax Court may be assessed or be collected by levy or by proceeding in court with or without assessment.^[73]

Assessment of Interest

If any amount of tax imposed by the Code is not paid on or before the last date prescribed for payment, interest on such amount shall be paid for the period from such last date to the date paid.^[74] Interest on any tax shall be paid upon notice and demand, and shall be assessed, collected, and paid in the same manner as taxes.^[75] Interest on any tax may be assessed and collected at any time during the period within which the tax to which such interest relates may be collected.^[76]

Termination and Jeopardy Assessments

Termination Assessments

If the IRS finds that a taxpayer aims to quickly do any act tending to prejudice or to render wholly or partially ineffectual proceedings to collect the income tax for the current or the immediately preceding taxable year, unless such proceeding be brought without delay, the IRS may immediately make a determination of tax (for the current taxable year or for the preceding taxable year, or both). Notwithstanding any other provision of law, such tax (together with all interest, additional amounts, and additions to the tax provided by law) will be immediately assessed and become due and payable and will issue a notice of such determination and assessment, together with a demand for immediate payment of such tax.^[77]

The IRS determines the tax for the period beginning on the first day of the taxpayer’s current taxable year and ending on the date of the termination assessment as though such period were a taxable year of the taxpayer and may take into account any prior determination^[78] with respect to the taxable year.^[79] If the jeopardy assessment provisions apply,^[80] then termination assessments are not appropriate.^[81]

If the termination assessment is made, the IRS must mail a SNOD for the taxpayer’s full taxable year (not just the short taxable year) related to the assessment within 60 days after the later of (i) the due date of the taxpayer’s return for the taxable year (determined with regard to any extensions), or (ii) the date the taxpayer files his or her return.^[82] The deficiency may be in an amount greater or less than the amount of the termination assessment.

Jeopardy Assessments

If the IRS believes that the assessment or collection of a deficiency,^[83] will be jeopardized by delay, it may (without mailing a SNOD), immediately assess such deficiency (together with all interest, additional amounts, and additions to the tax), and make notice and demand from the taxpayer for the payment thereof.^[84] If the jeopardy assessment is made before any SNOD to which the jeopardy assessment relates has been mailed,^[85] then the IRS must mail a SNOD within 60 days after the making of the assessment.^[86]

The IRS may assess an amount greater (or less) than the SNOD mailed to the taxpayer,^[87] whether or not the taxpayer has filed a petition with the Tax Court.^[88] The IRS may abate the assessment (or any portion thereof that remains unpaid). If the petitioner has been filed with the Tax Court prior to making the jeopardy assessment or is subsequently filed, the Tax Court has jurisdiction to redetermine the entire amount of the deficiency and of all amounts assessed.^[89]

If the jeopardy assessment is made after the decision of the Tax Court is rendered, the assessment may be made only in the amount of the deficiency determined by the Tax Court in its decision.^[90] A jeopardy assessment may not be made after the decision of the Tax Court has become final or after the taxpayer has filed a petition for review of the decision of the Tax Court.^[91]

The IRS may abate the jeopardy assessment if it ultimately finds that jeopardy does not exist.^[92] This abatement may not be made after a decision of the Tax Court with respect to the deficiency or after the expiration of the period for filing such petition.^[93] The IRS’s period of limitation for collection is determined as if the abated jeopardy assessment had not been made (except that the running of the period is suspended until 10 days after the day the jeopardy assessment is abated).^[94]

Part Two: Federal Tax Liens

The flip side to the assessment coin is the IRS’s process of collection. Collection procedures are really where the rubber meets the road for the IRS, which is charged with collecting the taxes imposed by the Code.^[95] The IRS has two basic mechanisms for collecting an unpaid tax liability. The first, which this article goes into in some detail, is the federal tax lien. If the tax lien does not get the taxpayer’s attention, and the IRS must kick its enforced collections action up a notch, then the IRS may levy or distrain the taxpayer’s property, which is discussed at length in these following sections of the article.

Authority and Limits on Assessment Imposition of Tax Lien

Notice and Demand

Within 60 days, after the making of an assessment of a tax,^[96] the IRS must give notice to each person that is liable for any unpaid tax. This notice must state the amount and demand payment thereof.^[97] So, when Uncle Bill receives a care package from the IRS at his home in Biddeford stating that he has unpaid taxes related to his damn ostrich farm and demanding that he pay the taxes within 30 days of the date that is listed in the upper right-hand corner of the letter, the IRS has discharged their first duty towards collection.

Such notice may be left at the dwelling or usual place of business of the taxpayer, or it may be sent by mail to such person’s last known address.^[98] Even if tax is assessed prior to the date payment is due (except for situations of jeopardy), the IRS will not demand payment of that tax until it is actually due.^[99] The last known address issue is a whole other ball of wax. The Abeuova, Ngueyen, and Savedoff opinions from 2020 provide further analysis on the last known address issue, and I encourage you to check them out.

The Imposition of a Lien

If the IRS demand payment on an assessed tax (and any additions) and the person so demanded doesn’t pay (whether through neglect or refusal), the amount of tax due (and any additions) ipso facto becomes a lien in favor of the IRS on all property—real or personal—and rights to property belonging to that person.^[100] The tax lien^[101] arises at the time the assessment is made and shall continue until the liability for the amount so assessed—or a judgment against the taxpayer arising out of such liability—is satisfied or becomes unenforceable by reason of lapse of time.^[102]

Thus, for federal tax lien to arise, three requirements must be met—

• There must be an assessment;
• There must be a demand by the IRS for payment; and
• There must be nonpayment of the tax due.

Thus, no matter how creative Bill wants to get moving around his assets before the lien is actually filed against his ostrich farm, the lien exists and is enforceable against him. As we’ll see below, however, until the lien is recorded (filed) by the IRS, the lien will not be valid against a subsequent purchaser, holder of a security interest, or another judgment lien creditor—which pleases Ethel, who placed a lien on two of the older birds—Marlene and Darlene—on the one hand, simply to spite Bill, and, on the other, to make sure that he didn’t sell them off to finance another ridiculous, half-cocked endeavor.

Notice Before Filing of Notice of Lien

The IRS must notify the person liable for the assessment of the filing of a notice of lien under IRC § 6323.^[103] Not more than five business days after the day that the notice of lien is filed, the IRS must provide a second notice, which must be

• given in person;
• left at the dwelling or usual place of business of the person; or
• sent by certified or registered mail to the person’s last known address.^[104]

The notice of filing a federal tax lien must include five elements:

• the amount of the unpaid tax;
• the right of the person to request a collection due process or equivalent hearing during the 30-day period beginning on the day after the five-day period described in the previous sentence (generally 30 days from the notice of filing a federal tax lien);
• the administrative appeals available to the taxpayer with respect to such lien and the procedures relating to such appeals;
• the procedures relating to the release of liens on property; and, for something new and different
• language related to the revocation or limitation of passports of individuals with seriously delinquent tax debts contained in IRC § 7345.^[105]

Notice and Opportunity for Hearing upon Filing of Notice of Lien

One of the most important rights of a taxpayer in the entire collection process is the right to a fair hearing.^[106] The hearing must be held if requested by the person, and the grounds of the hearing must be stated.^[107] This hearing will be held by an impartial officer in the IRS’s Office of Appeals.^[108]

A person may only request one hearing with respect to the tax period to which the unpaid tax relates.^[109] Finally, to the extent practicable the hearing on the notice of filing a tax lien will be held in conjunction with the hearing under IRC § 6330.^[110] We’ll discuss these hearings in much greater detail in a subsequent article.

The Effect of a Federal Tax Lien

Validity and Priority of Federal Tax Lien

As noted in above, a federal tax lien is not valid as against any purchaser, holder of a security interest, mechanic’s lienor, or judgment lien creditor until appropriate notice of the lien has been appropriately filed by the IRS.^[111] With respect to real property, the notice of lien must generally be filed only once in the office designated by the laws of the state in which the property subject to the lien is situated.^[112]

In the case of personal property, the notice of lien must generally be filed only once in the office designated by the laws of the state in which the property subject to the lien is situated.^[113] Property is situated at its physical location or, for personal property, at the residence of the taxpayer at the time the notice of lien is filed.^[114]

Protection for Certain Interests even though Notice is Filed

Even though a notice of lien has been filed, the lien may not be valid with respect to certain interests in property.^[115] These interests include securities, motor vehicles, certain types of personal property, real property tax and special assessment liens, residential property subject to a mechanic’s lien, attorney’s liens, certain life insurance or annuity contracts, and deposit-secured loans.^[116] IRC § 6323 also provides protection for commercial transactions, financing agreements, etc.^[117]

The Refiling of the Notice of Lien

If the statute of limitation of collection has been tolled for any reason, the IRS must refile the lien prior to the one-year anniversary of the expiration of the 10-year period set forth in IRC § 6502. If the IRS fails to refile, the lien will expire.^[118]

Importantly, the refiling of the lien doesn’t start the clock anew; rather it extends the lien to the full ten-year period including the period during which the statute of limitation was tolled. For instance, if Bill spent six months negotiating an installment agreement, just to default on his second payment, the refiling of the lien would not give the IRS a full 10-year period in addition to the 9.5 years during which they could have collected.

Special Liens for Estate and Gift Taxes

There is a federal tax lien for the nonpayment of the estate tax imposed by Chapter 11 of the Code, which is a lien upon the gross estate of the decedent for 10 years from the date of death.^[119] The part of the gross estate that is used to pay administrative expenses is not included in such lien.^[120] If part of the decedent’s estate is transferred, the property is divested of the original lien, and a new lien attaches to the property of the transferee.^[121]

The lien continues after the discharge of the personal representative or trustee.^[122] A nearly identical lien applies to all gifts made during the period for which the return was filed for 10 years from the date the gifts are made.^[123] The liens on estate and gift taxes are not valid against mechanic’s liens or against security interests described in IRC § 6323(e).

In the next article in this series, we’ll explore the release and/or discharge of a Federal tax lien.

The Release, Withdrawal, or Discharge of a Federal Tax Lien

The IRS must issue a certificate of release of any federal tax lien not later than 30 days after the day on which the liability has been fully satisfied or has become legally unenforceable, or a bond is furnished to and accepted by the IRS.^[124] On the other hand, the IRS may issue a certificate of discharge of any property subject to a federal tax lien under four distinct scenarios:

First, a lien may be discharged if the IRS determines that the fair market value of that property remaining subject to the lien is at least double the amount of the unsatisfied liability secured by the lien (plus the amount of all other liens on such property that may have priority over the federal tax lien).^[125]

Second, if the taxpayer pays to the IRS an amount equal to the value of the part of the property to be discharged from the lien in partial satisfaction of the lien, or the IRS determines that its interest in the part of the property has no value, the IRS will issue a certificate of discharge.^[126]

Third, if the taxpayer sells the property pursuant to an agreement with the IRS and the proceeds of the sale are held in escrow,^[127] the IRS will issue a certificate of discharge.^[128]

Fourth, the IRS will issue a certificate of discharge if the third-party owner of the property deposits with the IRS an amount or furnishes a bond equal to the value of the IRS’s interest in the property.^[129] The IRS will refund the deposit with interest and release the bond if it determines that the unsatisfied liability giving rise to the lien can be satisfied from a source other than the property (i.e., through a lien on the original taxpayer’s property).^[130] Critically, if no action to contest the lien is filed^[131]—within the prescribed period of 120 days after the certificate of discharge is issued—the IRS will, within 60 days after the expiration of such period, apply the deposit or bond to satisfy the liability.^[132]

The IRS may also issue a certificate of subordination of any lien upon a part of the property subject to the lien under two primary circumstances.^[133] First, the taxpayer pays the IRS an amount equal to the amount of the to-be-senior lien or interest.^[134] Second, the IRS determines that the amount realized by the IRS will be increased by reason of the subordination certificate.^[135]

The IRS may issue a certificate of nonattachment if the IRS determines that any person (other than the person against whom the tax was assessed) is or may be injured by the appearance that a notice of lien^[136] refers to such person.^[137]

If a certificate is issued^[138] and is filed in the same office as the notice of lien to which it relates, that certificate will be conclusive to the IRS and third parties.^[139] However, the IRS may revoke a certificate of release or nonattachment under narrow circumstances including a breach of the collateral agreement in connection with the compromise under IRC § 7122.^[140] Finally, if the person liable for the tax re-acquires the property after a certificate of discharge has been issued, that certificate will be void.^[141]

Administrative Appeal of Liens

Any person (a taxpayer or third-party) may appeal to the IRS after the filing of a notice of federal tax lien on the property or rights to property of such person for the release of the lien alleging an error in the filing of the notice of such lien.^[142] If the IRS determines that the filing of the notice of lien was erroneous, the IRS will expeditiously issue a certificate of release, and will include in the certificate a statement that the filing was erroneous.^[143]

Part Three: Federal Tax Levies

IRS Enforced Collection: Introduction to Levies

To Bill’s credit, his call of the IRS’s bluff that they would actually try to collect his long delinquent tax debt has not resulted in any enforced collection action three years since he failed to report capital gains on the sale of seven of his largest ostriches. You had no love loss when the giant birds were sold, having been chased down and assaulted by two of their number in your younger and more vulnerable years—the scar on the back of your head bearing constant witness to your trauma.

Nonetheless, Bill calls you one day to discuss the most recent notice that he received from the IRS in which they threatened—this time with a little more piss and vinegar (Bill’s words)—to seize his birds and everything else he held dear to himself. Having explained this inevitability to Bill a number of times, you feel no real urge to get into enforced collection with him at this hour in the afternoon. Nonetheless, having written before about the IRS’s collection activities vis-à-vis assessment and liens, you figure it can’t hurt to finish off the topic and explain to Bill what he very well may come to expect.

Authority of IRS to Collect Tax by Levy

If any person liable to pay any tax neglects or refuses to pay the same within 10 days after notice and demand, the IRS may collect such tax (and expenses of the levy) by levy upon all property and rights to property^[144] belonging to such person or on which there is a lien provided in this chapter for the payment of such tax.^[145]

If the IRS finds that the collection of tax is in jeopardy, notice and demand for immediate payment may be made by the IRS and, upon failure or refusal to pay such tax, collection by levy may be made without regard to the 10-day period after notice and demand.^[146]

“Levy and Distraint”

The term “levy” means the “power of distraint and seizure by any means.”^[147] Except with respect to continued garnishment of wages,^[148] a levy may extend only to property possessed and obligations existing at the time of the levy.^[149] When the IRS is authorized to levy, it may seize and sell any property or rights to property belonging to the delinquent taxpayer (whether real, personal, tangible, or intangible).^[150]

If at first you don’t succeed, levy and levy again. If the levied property is not enough to satisfy the claim of the IRS, the IRS may as many times as necessary proceed to levy^[151] until the amount due (including expenses of levy) is fully paid.^[152]

Requirement of Notice Before Levy

A levy may be made on salary, wages, or other property with respect to an unpaid tax, but only after the IRS has notified the taxpayer of its intent to so levy.^[153] No less than 30 days prior to the day of the levy, the notice must be given either in person, left at the dwelling or usual place of business of the taxpayer, or sent by certified or registered mail to the taxpayer’s last known address.^[154] The 30-day notice requirement does not apply if the IRS has made a finding of jeopardy.^[155]

The notice of levy must include a number of elements:

• Provisions related to levy in the Code;
• Procedures for levy and sale of property;
• The administrative appeals available to the taxpayer with respect to such levy and the procedures relating to such appeals
• Alternatives available to the taxpayer which could prevent levy on the property;^[156]
• Provisions related to the redemption of property;
• Provisions related to the release of liens on the property and the related procedures; and
• Provisions related to the revocation or limitation of passports of individuals with seriously delinquent tax debts.^[157]

Continuing Levy on Salary and Wages

Although a levy generally only applies to property possessed at the time of the levy,^[158] the effect of the levy on salary or wages payable to or received by the taxpayer is continuous from the date the levy is first made until the levy is released.^[159]

Uneconomical Levy

No levy will (or can) be made on any property if the amount of the expenses which the IRS estimates (at the time of levy) would be incurred by the IRS with respect to the levy and sale of such property exceeds the fair market value of such property at the time of levy.^[160]

Continuing Levy on Government Payments

The IRS may continuously levy against certain “specified” governmental payments including Social Security, unemployment benefits, workers’ compensation, and welfare.^[161] However, such levy may attach only up to 15%.^[162] The IRS may also continuously levy 100% of specified payments due to a vendor of property, goods, or services sold or leased to the Federal government (except a Medicare provider).^[163]

No Levy During Pendency of Proceedings for Refund of Divisible Tax

The IRS may not levy on property or rights to property of any person with regard to “divisible taxes” (employment taxes) during the pendency of any proceeding brought by such person in a proper Federal trial court for the recovery of any portion of such divisible tax which was paid by such person if there are res judicata or collateral estoppel concerns.^[164]

No Levy Before Investigation of Status of Property

No levy may be made on any property or rights to property which is to be sold^[165] until a thorough investigation of the status of such property has been completed.^[166] This means that the IRS must verify the taxpayer’s liability, must determine if the levy is uneconomical, must determine that the equity in such property is sufficient to yield net proceeds from the sale of such property to apply to such liability, and thoroughly consider alternative collection methods.^[167]

No Levy While Certain Offers Pending or Installment Agreement Pending or in Effect

No levy may be made on property or rights to property of a taxpayer with respect to any unpaid tax^[168]

• during the period that an offer in compromise by such person is pending with the IRS;^[169]
• if such offer is rejected by the IRS, during the 30 days thereafter; and
• during any period in which an appeal of the IRS’s decision to reject the offer is pending.

Further, no levy may be made^[170]

• during the period that an offer by the taxpayer for an installment agreement^[171] for payment of such unpaid taxes pending with the IRS;
• 30 days after rejection of the proposed installment agreement;
• during the pendency of the appeal of the rejection of the installment agreement;
• during the period that such installment agreement for payment of such unpaid taxes in effect, and
• if the installment agreement is terminated by the IRS, during the 30 days thereafter; and
• any time during the pendency of the appeal of the termination of the installment agreement.

Notice and Hearing Before Levy

Notice and Opportunity for Hearing Before Levy

The IRS may not levy any property or right to property of a person unless the IRS has notified that person in writing of his or her right to a hearing^[172] before such levy is made.^[173] The notice must be given not less than 30 days before the day of the first levy of property to recover the unpaid tax.^[174]

The notice must be given in person; left that the dwelling or usual place of business of such person; or sent by certified or registered mail, return receipt requested, to such person’s last known address.^[175] No hearing is necessary in the event that the IRS has made a finding^[176] that the collection of tax is in jeopardy (though the taxpayer will have the opportunity for a hearing after the levy).^[177]

Certain information must be included with the notice.^[178] The notice must include^[179]

• the amount of unpaid tax;
• the right of the person to request a CDP or equivalent hearing during the 30 day period before the first levy;
• the proposed action by the IRS and the rights of the person with respect to such levy action; and
• a statement that sets forth basic information about levies, administrative appeals, alternatives available to the taxpayers which could prevent levy on the property, and provisions related to redemption of the property.

The hearing must be held if requested by the person, and the grounds of the hearing must be stated.^[180] This hearing will be held by an impartial officer in the IRS’s Independent Office of Appeals.^[181] A person may only request one hearing with respect to the tax period to which the unpaid tax relates.^[182] Finally, to the extent practicable the hearing on the notice of filing a tax lien will be held in conjunction with the hearing under IRC § 6320, which relates to liens on property.^[183]

Certain matters are considered at an IRC § 6330 hearing.^[184] The appeals officer must obtain verification from the IRS that the requirements of any applicable law or administrative procedure have been met.^[185]

The person whose property is subject to levy may raise any relevant issue relating to the unpaid tax or the proposed levy including spousal defenses, appropriateness of the collection actions, and offers of collection alternatives (posting of a bond, substitution of assets, installment agreement, or offer in compromise).^[186]

Critically, the person may also raise challenges to the existence or amount of the underlying tax liability for any tax period if the person did not receive a statutory notice of deficiency for the tax liability or did not otherwise have an opportunity to previously dispute such tax liability.^[187]

The appeals officer will take into account the verification, the issues raised, and most importantly “whether any proposed collection action balances the need for the efficient collection of taxes with the legitimate concern of the person that any collection action be no more intrusive than necessary.”^[188]

 

An issue may not be raised at the hearing pursuant to IRC § 6330 if the issue was raised in considered at a previous hearing under IRC § 6320 or and any other previous administrative or judicial proceeding (and the person seeking to raise the issue participated in such hearing or proceeding).^[189] Frivolous tax arguments^[190] and issues where a final determination has been made may also not be argued in an IRC § 6330 hearing (unless specifically set forth above, like spousal defenses).^[191]

Tax Court Petition

If the taxpayer does not prevail at the hearing, the taxpayer may petition the Tax Court for review of such determination within 30 days of such determination under IRC § 6330.^[192] If a taxpayer may not petition the Tax Court because the taxpayer is involved with the bankruptcy proceeding, the limitations period for filing such a petition will be suspended until 30 days after the taxpayer is permitted to bring such a petition.^[193]

The IRS office of appeals retains jurisdiction with respect to any determination made under IRC §6330, including subsequent hearings requested by the person on issues regarding collection actions taken or proposed with respect to such determination; and after the person has exhausted all administrative remedies, a change in circumstances with respect to that person which may affect such determination.^[194]

Suspension of Collections and Statute of Limitations

If a CDP or equivalent hearing is requested under IRC § 6330, the levy actions which are the subject of the requested hearing and the running of any period of limitations under IRC § 6502,^[195] IRC § 6531,^[196] or IRC § 6532^[197] are suspended for the period during which such hearing and appeals are pending.^[198] This suspension period does not expire before the 90^th day after the day on which there is a final determination and such hearing.^[199]

Importantly, this suspension does not apply to a levy action while and appeal is pending if the underlying tax liability is not at issue in the appeal, and the Tax Court determines that the IRS has shown good cause not to suspend the levy.^[200]

Frivolous Requests for Hearing

If the IRS determines that any portion of the request for hearing is frivolous,^[201] then the IRS may treat such portion as if it were never submitted and such portion shall not be subject to any further administrative or judicial review. Such positions have previously been identified by the IRS as frivolous by its very nature or reflects a desire of the taxpayer to delay or impede the administration of federal tax laws.^[202]

 

Surrender of Property Subject to Levy

Any person in possession or control of property subject to levy (and upon which a levy has actually been made) must surrender such property to the IRS upon demand unless the property at the time of such demand is subject to an attachment or execution under any other judicial process.^[203] If the IRS levies a life insurance or endowment contract, such levy shall be satisfied if the organization which issued the contract pays out the cash surrender value to the IRS.^[204] If the IRS levies a bank, the bank must surrender any deposits and interest thereon in the taxpayer’s bank accounts only after 21 days subsequent to the service of the levy on the bank.^[205]

IRS Enforced Collection: Enforcement of Levies

If a person (including an officer or employee of a company or a member or employee of a partnership) fails or refuses to surrender the property to the IRS subject to the levy, the person becomes personally legally liable to the IRS in an amount equal to the value of the property not surrendered, but not exceeding the amount of taxes for which the levy was made, together with costs and interest on such amount^[206] from the date of the levy.^[207] Any amount (other than costs) thereafter recovered from the person will be credited against the tax liability for the collection of which such levy was made.^[208]

In addition to the personal liability, if a person required to surrender the property fails or refuses to do so without reasonable cause, the person will be liable for penalty equal to 50% of the amount recoverable.^[209] No part of such penalty will be credited against the tax liability for the collection of which the levy was made.^[210]

If a person—other than the delinquent taxpayer—who is in possession of the levied property, surrenders the property upon demand to the IRS, that person will be discharged from any obligation or liability to the delinquent taxpayer and any other person with respect to the property arising from such surrender.^[211]

Production of Books and Records

If a levy has been made or is about to be made on any property, any person having custody or control of any books or records that may contain evidence or statements relating to the property subject to levy, must, upon demand of the Secretary, provide such books or records to the IRS for review.^[212]

Property Exempt from Levy

The following property is exempt from levy^[213]

• wearing apparel and schoolbooks;
• fuel, provisions, furniture, and personal effects not exceeding $6,250 in value;
• books and tools of a trade, business, or profession not exceeding $3,125 in value;
• unemployment benefits;
• undelivered mail;
• certain government annuity and pension payments;
• workmen’s compensation;
• judgments for support of minor children;
• a portion of wages, salary, and other income;^[214]
• certain service-connected disability payments;
• certain public assistance payments;
• assistance under the Job Training Partnership Act; and
• residences in small deficiency cases and principal residences and certain business assets exempt in absence of certain approval or jeopardy.

A “residence in a small deficiency case” is any real property used as a residence by the taxpayer or real property of the taxpayer used by any other individual as a residence (other than a rental), and a small deficiency case is one in which the levy does not exceed $5,000.^[215] No other property is exempt (including Social Security).^[216] A principal residence will not be exempt from levy if the District Court of the United States approves in writing the levy of such residence.^[217]

Sale of Seized Property

As soon as possible after the seizure of property, but prior to the sale of the property, the IRS will provide written notice of the seizure to the owner of the property at his usual place of abode or business or mailed to his last known address.^[218] The notice must specify the sum demanded and must contain an account of the personal property seized or a description with reasonable certainty of the real property seized.

Prior to sale, the IRS must provide the owner of the property with notice of the sale, again at his usual place of abode or business or mailed to his last known address.^[219] The IRS must also publish the notice of sale.^[220]

If the levied property is not divisible, meaning that the IRS may not satisfy the whole amount of tax in expenses through the sale of part of the property, the whole of the property will be sold.^[221] The sale should take place not less than 10 days nor more than 40 days from the time public notice is given.^[222]

The sale should take place within the county in which the property is seized (unless the IRS brass says otherwise).^[223] The owner of any property seized by levy may request that the IRS sell the property within 60 days after such request, and the IRS should comply with such request unless it is not in the best interests of the IRS.^[224]

Before the sale, the IRS must determine a minimum price below which the property should not be sold or whether the purchase of the property by the IRS at the minimum price would be in the best interest of the United States.^[225] The property should be sold to the highest bidder for not less than the minimum price.^[226]

If the property doesn’t sell for the minimum price to a third party or the IRS, the property will be released back to the owner of the property, the cost of the sale and levy will be added to the amount to be collected, and it will remain subject to a federal tax lien.^[227] The sale of seized property shall be stayed pending a Tax Court decision.^[228]

When the property is sold, the IRS will provide the purchaser a certificate of sale upon payment of the full purchase price.^[229] After the redemption period runs without redemption,^[230] the IRS will execute a deed transferring the property to the purchaser.^[231] If the IRS is the purchaser,^[232] it will deed the property to itself forthwith.

Redemption of Property

At any time prior to the sale of such property levied and seized by the IRS, the owner of such property may pay the amount due, together with the expenses of the levy and sale proceeding, and upon the IRS’s receipt of payment all further proceedings in connection with the levy will cease, and the property will be restored to the owner.^[233]

If the property is sold,^[234] the owners, their heirs, executors or administrators, or any person having any interest therein (or a lien thereon) may redeem the property at any time within 180 days after the sale.^[235] If the property is redeemed, the purchaser will be paid the sale price.^[236]

Application of Proceeds of Levy

Any money realized by the seizure of assets or the sale of property are applied first against the expenses of the proceedings, second to any specific tax liability on the seized property, and third against the liability of the delinquent taxpayer.^[237] Any surplus proceeds must be credited or refunded by the IRS to the person or persons legally entitled thereto.^[238]

Authority to Release Levy and Return Property

The IRS may release the levy upon all or part of the property levied upon if any one of five tests are met.^[239] The levy will be released if^[240]

• the liability for which the levy was made is satisfied or becomes unenforceable by reason of lapse of time;
• release of the levy will facilitate the collection of the liability;
• the taxpayer has entered into an installment agreement;^[241]
• the IRS determines that the levy is creating an economic hardship due to the financial condition of the taxpayer; or
• the fair market value of the property exceeds the liability and release of the levy on a part of the property could be made without jeopardizing the collection of such liability.

Importantly, the release of the levy on property will not prevent any subsequent levy on the same property.^[242]

If the IRS determines that the property has been wrongfully levied upon the IRS will return the specific property levied upon, an amount of money equal to the amount of money levied upon, or an amount of money equal to the amount of money received by the IRS from the sale of such property.^[243] Property may be returned at any time.^[244]

An amount equal to the amount of money levied upon or received from such sale may be returned at any time before the expiration of 2 years from the date of such levy.^[245] Interest will be allowed and paid at the overpayment rate established under IRC § 6621.^[246]

If the levy on the property was premature or “otherwise not in accordance with the administrative procedures of the IRS,” property may be returned.^[247] Further, if the taxpayer enters into installment agreement,^[248] the return of such property would facilitate the collection of the tax liability, or the return of the property would be in the best interests of the taxpayer and the United States,^[249] then the property may be returned to the taxpayer.^[250]

In the case of the levy on salary and wages payable to or received by the taxpayer, upon agreement with the taxpayer that the tax is not collectible, the IRS will release the levy as soon as practicable.^[251] If the IRS levied a retirement plan and subsequently returns the funds, the taxpayer will be held harmless, the distribution on account of the levy will be treated as a rollover, and the taxpayer will not be liable for any taxes.^[252]

Conclusion

As we’ve seen in this article on IRS enforced collection, the IRS’s broad authority to collect, including with federal tax liens and levies, are robust tools designed to ensure the collection of unpaid taxes. The procedures surrounding these actions are deeply rooted in the statutory framework of the Internal Revenue Code, reflecting the gravity with which the federal government approaches tax compliance.

Taxpayers must navigate a complex array of notices, hearings, and appeals, each with stringent deadlines and requirements. Understanding these processes is crucial for taxpayers, as the consequences of noncompliance or ignorance can lead to significant financial distress, including the seizure of assets and potential legal ramifications.

Ultimately, the key to managing IRS enforced collection actions lies in proactive engagement and a thorough understanding of one’s rights and obligations. Taxpayers who find themselves at odds with the IRS should seek to address issues early, exploring options such as installment agreements or offers in compromise. By staying informed and taking timely action, taxpayers can often mitigate the impact of IRS enforcement, preserving their financial stability while fulfilling their obligations under the law.

 

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Footnotes:

1. Pursuant to IRC § 6201(a)(1). ↑
2. IRC § 6201(a)(2). ↑
3. IRC § 6203. ↑
4. Id. ↑
5. IRC § 6201(a)(4)(A). ↑
6. IRC § 6204. ↑
7. IRC § 6501(a). ↑
8. Id. ↑
9. Id. ↑
10. IRC § 6501(b)(1). ↑
11. Pursuant to the IRS’s authority in IRC § 6020(b)(2). ↑
12. IRC § 6501(b)(3). ↑
13. IRC § 6501(c)(1). ↑
14. IRC § 6501(c)(2). ↑
15. IRC § 6501(c)(3). ↑
16. IRC § 6501(e)(1). ↑
17. IRC § 6501(c)(4)(A). ↑
18. Id. ↑
19. IRC § 6501(c)(7). ↑
20. Relating to abatement of mathematical or clerical error assessments. ↑
21. IRC § 6201(a)(3). ↑
22. IRC § 6201(b)(1). ↑
23. IRC § 6201(b)(2). ↑
24. IRC § 6201(d). ↑
25. IRC § 6205(a)(1). ↑
26. IRC § 6205(b). ↑
27. IRC § 6211(a)(1). ↑
28. IRC § 6212(a). ↑
29. IRC § 6212(b)(1). ↑
30. Under IRC § 6903. ↑
31. IRC § 6212(b)(3). ↑
32. IRC § 6212(b)(2). ↑
33. IRC § 6213(a). ↑
34. Relating to assertion of greater deficiencies before the Tax Court. ↑
35. Relating to mathematical or clerical errors. ↑
36. Relating to termination assessments. ↑
37. Id. ↑
38. Relating to the making of jeopardy assessments. ↑
39. IRC § 6212(d). ↑
40. Id. ↑
41. Id. ↑
42. As authorized in IRC § 6212. ↑
43. IRC § 6213(a). ↑
44. Id. ↑
45. IRC § 6851 (termination), IRC § 6852 (same), and IRC § 6861 (jeopardy) ↑
46. IRC § 6213(a). ↑
47. Id. ↑
48. Id. ↑
49. Id. ↑
50. IRC § 6013(f)(1). ↑
51. IRC § 6213(c). ↑
52. IRC § 6213(d). ↑
53. As defined in IRC § 6213(g)(2). ↑
54. Prohibiting assessment and collection until notice of the deficiency has been mailed. See IRC § 6213(b)(1). ↑
55. Restricting further deficiency letters. See IRC § 6213(b)(1). ↑
56. Prohibiting credits or refunds after petition to the Tax Court. See IRC § 6213(b)(1). ↑
57. See IRC § 6213(b)(1). ↑
58. Id. ↑
59. IRC § 6213(b)(2)(A). ↑
60. Id. ↑
61. Id. ↑
62. IRC § 6213(b)(2)(B). ↑
63. Under IRC § 6411. ↑
64. IRC § 6213(b)(3). ↑
65. IRC § 6213(b)(4). ↑
66. Under IRC § 6212. ↑
67. IRC § 6211. ↑
68. IRC § 6214(a). ↑
69. IRC § 6214(b). ↑
70. Id. ↑
71. IRC § 6214(d). ↑
72. IRC § 6215(a). ↑
73. Id. ↑
74. IRC § 6601(a). ↑
75. IRC § 6601(e)(1). ↑
76. IRC § 6601(g). ↑
77. IRC § 6581(a)(1). ↑
78. Made under IRC § 6581. ↑
79. IRC § 6581(a)(2). ↑
80. IRC § 6861. ↑
81. IRC § 6581(a)(4). ↑
82. IRC § 6581(b). ↑
83. As defined in IRC § 6211. ↑
84. IRC § 6861(a). ↑
85. Under IRC § 6212(a). ↑
86. IRC § 6861(b). ↑
87. Notwithstanding IRC § 6212(c). ↑
88. IRC § 6861(c). ↑
89. Id. ↑
90. IRC § 6861(d). ↑
91. IRC § 6861(e). ↑
92. IRC § 6861(g). ↑
93. Id. ↑
94. Id. ↑
95. IRC § 6301. ↑
96. Pursuant to IRC § 6203. ↑
97. IRC § 6301. ↑
98. IRC § 6303(a). ↑
99. IRC § 6303(b). ↑
100. IRC § 6321. ↑
101. Imposed by IRC § 6321. ↑
102. IRC § 6322. ↑
103. Pursuant to IRC § 6320(a)(1). ↑
104. IRC § 6320(a)(2). ↑
105. IRC § 6320(a)(3)(A)-(E). ↑
106. Under IRC § 6320(b). ↑
107. IRC § 6320(b)(1). ↑
108. IRC § 6320(b)(3). ↑
109. IRC § 6320(b)(2). ↑
110. Regarding levies of property. ↑
111. IRC § 6323(a). ↑
112. IRC § 6323(f)(1)(A)(i). ↑
113. IRC § 6323(f)(1)(A)(ii). ↑
114. IRC § 6323(f)(2). ↑
115. IRC § 6323(b). ↑
116. Id. ↑
117. IRC § 6323(c). ↑
118. IRC § 6323(g). ↑
119. IRC § 6324(a)(1). ↑
120. Id. ↑
121. IRC § 6324(a)(2). ↑
122. IRC § 6324(a)(3). ↑
123. IRC § 6324(b). ↑
124. IRC § 6325(a). ↑
125. IRC § 6325(b)(1). ↑
126. IRC § 6325(b)(2). ↑
127. Subject to the liens and claims of the IRS. ↑
128. IRC § 6325(b)(3). ↑
129. IRC § 6325(b)(4). ↑
130. Id. ↑
131. Pursuant to IRC § 7426(a)(4). ↑
132. IRC § 6325(b)(4). ↑
133. IRC § 6325(d). ↑
134. IRC § 6325(d)(1). ↑
135. IRC § 6325(d)(2). ↑
136. Filed under IRC § 6323. ↑
137. IRC § 6325(e). ↑
138. Pursuant to IRC § 6325. ↑
139. IRC § 6325(f)(1). ↑
140. IRC § 6325(f)(2). ↑
141. IRC § 6325(f)(3). ↑
142. IRC § 6326(a). ↑
143. IRC § 6326(b). ↑
144. Except exempt property under IRC § 6334. ↑
145. IRC § 6331(a). ↑
146. Id. ↑
147. IRC § 6331(b). ↑
148. Under IRC § 6331(e). ↑
149. IRC § 6331(b). ↑
150. Id. ↑
151. In accordance with IRC § 6331. ↑
152. IRC § 6331(c). ↑
153. IRC § 6331(d)(1). ↑
154. IRC § 6331(d)(2). ↑
155. IRC § 6331(d)(3). ↑
156. Including installment agreements under IRC § 6159. ↑
157. IRC § 6331(d)(4)(A)-(G). The passport revocation provisions are found in IRC § 7345. ↑
158. Under IRC § 6331(b). ↑
159. IRC § 6331(e). A levy is released pursuant to the procedures set forth in IRC § 6343. ↑
160. IRC § 6331(f). ↑
161. IRC § 6331(h)(1). ↑
162. IRC § 6331(h)(2). ↑
163. IRC § 6331(h)(3). ↑
164. IRC § 6331(i). ↑
165. Pursuant to IRC § 6335. ↑
166. IRC § 6331(j)(1). ↑
167. IRC § 6631(j)(2). ↑
168. IRC § 6331(k)(1). ↑
169. Under IRC § 7122. ↑
170. IRC § 6331(k)(2). ↑
171. Under IRC § 6159. ↑
172. Under IRC § 6330. ↑
173. IRC § 6330(a)(1). ↑
174. IRC § 6330(a)(2). ↑
175. IRC § 6330(a)(2)(A)-(C). ↑
176. Under IRC § 6331(a). ↑
177. IRC § 6330(f). ↑
178. IRC § 6330(a)(3). ↑
179. IRC § 6330(a)(3)(A)-(C). ↑
180. IRC § 6330(b)(1). ↑
181. IRC § 6330(b)(3). ↑
182. IRC § 6330(b)(2). ↑
183. Id. ↑
184. IRC § 6330(c). ↑
185. IRC § 6330(c)(1). ↑
186. IRC § 6330(c)(2)(A). ↑
187. IRC § 6330(c)(2)(B). ↑
188. IRC § 6330(c)(3). ↑
189. IRC § 6330(c)(4). ↑
190. Pursuant to IRC § 6702. ↑
191. IRC § 6330(c)(4)(B)-(C). ↑
192. IRC § 6330(d)(1). ↑
193. IRC § 6330(d)(2). ↑
194. IRC § 6330(d)(3). ↑
195. Relating to collection after assessment. ↑
196. Relating to criminal prosecutions. ↑
197. Relating to other suits. ↑
198. IRC § 6330(e)(1). ↑
199. Id. ↑
200. IRC § 6330(e)(2). ↑
201. Under IRC § 6702(b)(2)(A)(i) or (ii). ↑
202. IRC § 6702(b)(2)(A). I highly recommend reading through the IRS’s exhaustive guide of frivolous tax positions.  It’s sure to enlighten, and give you a chuckle or groan, depending on how forgiving you feel at the moment.  You can also check out this article by Briefly Taxing that abounds with frivolity…and crazy Germans. ↑
203. IRC § 6332(a). ↑
204. IRC § 6632(b). ↑
205. IRC § 6632(c). ↑
206. At the underpayment rate of IRC § 6621. ↑
207. IRC § 6632(d)(1). ↑
208. Id. ↑
209. IRC § 6632(d)(2). ↑
210. Id. ↑
211. IRC § 6332(e). ↑
212. IRC § 6633. ↑
213. IRC § 6334(a). ↑
214. Calculated under IRC § 6334(d). ↑
215. IRC § 6334(a)(13)(A). ↑
216. IRC § 6334(c). ↑
217. IRC § 6332(e)(1)(A). ↑
218. IRC § 6335(a) (notice of seizure); IRC § 6335(b) (notice of sale). ↑
219. IRC § 6335(b). ↑
220. Id. ↑
221. IRC § 6335(c). ↑
222. IRC § 6335(d). ↑
223. Id. ↑
224. IRC § 6335(f). ↑
225. IRC § 6335(e)(1)(A). ↑
226. IRC § 6335(e)(1)(B). ↑
227. IRC § 6335(e)(1)(D). ↑
228. IRC § 6335(g); IRC § 6863(b)(3). ↑
229. IRC § 6338(a). ↑
230. As the period is set forth in IRC § 6337. ↑
231. IRC § 6338(b). ↑
232. In accordance with IRC § 6335 ↑
233. IRC § 6337(a). ↑
234. As provided in IRC § 6335. ↑
235. IRC § 6337(b)(1). ↑
236. IRC § 6337(b)(2). ↑
237. IRC § 6342(a)(1)-(3). ↑
238. IRC § 6342(b). ↑
239. IRC § 6343(a)(1). ↑
240. IRC § 6343(a)(1)(A)-(E). ↑
241. Pursuant to IRC § 6159. ↑
242. IRC § 6343(a)(3). ↑
243. IRC § 6343(b). ↑
244. Id. ↑
245. Id. ↑
246. IRC § 6343(c). ↑
247. IRC § 6343(d)(2)(A). ↑
248. Pursuant to IRC § 6159. ↑
249. As determined by the Taxpayer Advocate. ↑
250. IRC § 6343(d)(2)(B)-(D). ↑
251. IRC § 6343(e). ↑
252. IRC § 6343(f). ↑

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Please note that this comprehensive guide combines Briefly Taxing’s articles on Assessment, Liens, and Levies.

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