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Secretary to file a notice of Federal tax lien if the lien is to
be valid against any purchaser, holder of a security interest,
mechanic’s lienor, or judgment lien creditor. Lindsay v.
Commissioner, T.C. Memo. 2001-285, affd. 56 Fed. Appx. 800 (9th
Cir. 2003). From the taxpayer’s perspective, the filing of such
a lien may have the negative effects of creating a cloud on the
taxpayer’s title to property and impairing the taxpayer’s
creditworthiness. See, e.g., Magana v. Commissioner, 118 T.C.
488 (2002).
In the Internal Revenue Service Restructuring and Reform Act
of 1998, Pub. L. 105-206, sec. 3401, 112 Stat. 746, Congress
enacted new sections 6320 (pertaining to liens) and 6330
(pertaining to levies) to provide specified protections for
taxpayers in tax collection matters. Section 6320 provides that
the Secretary shall furnish the person described in section 6321
with written notice of the filing of a notice of lien under
section 6323. The notice required by section 6320 must be
provided not more than 5 business days after the day of the
filing of the notice of lien. Sec. 6320(a)(2). Section 6320
further provides that the person may request administrative
review of the matter (in the form of an Appeals Office hearing)
within 30 days beginning on the day after the 5-day period.
Section 6320(c) provides that the Appeals Office hearing
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