Leslie M. Hiltz - Page 4

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          discharged in her chapter 7 bankruptcy proceeding.  After a                 
          hearing, this Court granted respondent’s motion.3                           
                                       OPINION                                        
          A.   Statutory Framework                                                    
               Section 6321 imposes a lien in favor of the United States on           
          all property and property rights of a person who is liable for              
          and fails to pay taxes after demand for payment has been made.              
          The lien arises when assessment is made and continues until the             
          assessed liability is paid.  Sec. 6322.  For the lien to be valid           
          against certain third parties, the Secretary must file a notice             
          of Federal tax lien and, within 5 business days thereafter,                 
          provide written notice to the taxpayer.  Secs. 6320(a), 6323(a).            
          The taxpayer may then request an administrative hearing before an           
          Appeals officer.  Sec. 6320(b)(1).  Once the Appeals officer                
          issues a determination, the taxpayer may seek judicial review in            
          the Tax Court or a district court, as appropriate.  Secs.                   
          6320(c), 6330(d)(1).                                                        
               Section 6330(c)(2) prescribes the matters that a person may            
          raise at an Appeals Office hearing, including spousal defenses,             
          challenges to the appropriateness of the Commissioner’s intended            
          collection action, and possible alternative means of collection.            
          The existence or amount of the underlying tax liability may be              
          contested at an Appeals Office hearing only if the taxpayer did             


               3 Respondent has released the Federal tax lien as to Carole.           




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