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bankruptcy petition] indicate there is a 401K plan [section
401(k) retirement account] with, Unitex Textile, to which the
Service’s liens would attach.” Petitioner has introduced no
evidence that the Federal tax lien was defective. Thus, when
petitioner filed for bankruptcy, there was a valid and existing
Federal tax lien on at least his section 401(k) retirement
account.
Section 6331(a) provides:
If any person liable to pay any tax neglects or
refuses to pay the same * * *, it shall be lawful for
the Secretary to collect such tax * * * by levy upon
all property and rights to property (except such
property as is exempt under section 6334) belonging to
such person or on which there is a lien provided in
this chapter for the payment of such tax. * * *
Section 6334(a) exempts from levy: (1) Wearing apparel and
school books; (2) fuel, provisions, furniture, and personal
effects; (3) books and tools of a trade, business, or profession;
(4) unemployment benefits; (5) undelivered mail; (6) certain
annuity and pension payments; (7) workmen’s compensation; (8)
judgments for support of minor children; (9) certain amounts of
wages, salary, and other income; (10) certain service-connected
disability payments; (11) certain public assistance payments;
(12) assistance under the Job Training Partnership Act (since
repealed); and (13) certain residences. Petitioner does not
contend, nor do we find, that any of these exemptions applies to
petitioner’s section 401(k) retirement account.
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Last modified: May 25, 2011