- 13 - and demand is required to be sent to the taxpayer’s last known address. Id. When a taxpayer fails to pay the amount assessed within 10 days of the notice and demand, a Federal tax lien arises, and a notice of the lien may be filed to inform potential purchasers of the taxpayer’s property or creditors of the taxpayer that the Federal Government has an interest in the taxpayer’s property. Secs. 6321, 6323(a), 6331(a). In her motion papers in this proceeding, petitioner has repeatedly complained that she never received notice of any tax liability and only discovered the tax lien when a prospective employer ran a credit check. The thrust of petitioner’s argument is that if she did not receive notice and demand, a statutory prerequisite to collection was missing and collection could not go forward. Sec. 6321. Indeed, collection did not go forward. After petitioner complained to respondent about the tax lien, respondent abated the amounts assessed pursuant to the substitute returns, assessed the amounts shown on the returns prepared by petitioner, and removed the lien. Petitioner did not discover the Federal tax lien until 3 years after it was filed,6 and she blames it for her inability to 6In the IRS Restructuring and Reform Act of 1998 (RRA 1998), Pub. L. 105-206, sec. 6401, 112 Stat. 746, Congress enacted sec. 6320(a), which provides that respondent is required to give notice within 5 business days of the filing of the notice of lien. The notice is required to be left at the taxpayer’s (continued...)Page: Previous 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Next
Last modified: May 25, 2011