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collection action. The notice, consistent with the earlier
correspondence, was premised primarily on the inadequacy of
collection alternatives in light of petitioner’s ability to pay
her tax liabilities in full from the assets of the trust.
Petitioner’s petition challenging this notice was filed with the
Tax Court on June 12, 2002, and reflected an address in New York,
New York.
Discussion
I. Collection Actions--General Rules
Section 6321 imposes a lien in favor of the United States
upon all property and rights to property of a taxpayer where
there exists a failure to pay any tax liability after demand for
payment. The lien generally arises at the time assessment is
made. Sec. 6322. Section 6323, however, provides that such lien
shall not be valid against any purchaser, holder of a security
interest, mechanic’s lienor, or judgment lien creditor until the
Secretary files a notice of lien with the appropriate public
officials. Section 6320 then sets forth procedures applicable to
afford protections for taxpayers in lien situations. Section
6320(a)(1) establishes the requirement that the Secretary notify
in writing the person described in section 6321 of the filing of
a notice of lien under section 6323. This notice required by
section 6320 must be sent not more than 5 business days after the
notice of tax lien is filed and must advise the taxpayer of the
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