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any tax neglects or refuses to pay such tax within 10 days after
notice and demand for payment, the Secretary is authorized to
collect such tax by levy upon property belonging to the taxpayer.
Section 6331(d) provides that the Secretary is obliged to provide
the taxpayer with notice before proceeding with collection by
levy on the taxpayer's property, including notice of the
administrative appeals available to the taxpayer.
In the Internal Revenue Service Restructuring and Reform Act
of 1998, Pub. L. 105-206, sec. 3401, 112 Stat. 685, 746, Congress
enacted new sections 6320 (pertaining to liens) and 6330
(pertaining to levies) to provide protections for taxpayers in
tax collection matters. Section 6330 generally provides that the
Commissioner cannot proceed with the collection of taxes by way
of a levy on a taxpayer's property until the taxpayer has been
given notice of, and the opportunity for, an administrative
review of the matter (in the form of an Appeals Office hearing);
if dissatisfied with the outcome of such hearing, the taxpayer
may seek judicial review of the administrative determination in
either the Tax Court or a Federal District Court, during which
review the suspension of the levy continues.
Section 6330(c)(2)(B) provides that the existence or the
amount of the underlying tax liability can be contested at an
Appeals Office hearing if the taxpayer did not receive a notice
of deficiency for the taxes in question or did not otherwise have
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Last modified: May 25, 2011