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Section 6330(e)(1) provides in relevant part: “if a hearing
is requested under * * * [section 6330(a)(3)(B)], the levy
actions which are the subject of the requested hearing * * *
shall be suspended for the period during which such hearing, and
appeals therein, are pending.” In the instant case, however, the
levy action that is the subject of the section 6330 hearing had
already occurred--under section 6331(a), respondent had made a
finding that the collection of tax was in jeopardy and had levied
on the stock accounts. Under section 6330(f)(1), if the
Commissioner has made a finding that the collection of tax is in
jeopardy, section 6330 shall not apply, except that the taxpayer
shall be given the opportunity for a section 6330 hearing within
a reasonable period of time after the levy. By reason of section
6330(f)(1), section 6330(e)(1) did not suspend the levy action
that had already occurred and did not otherwise preclude
respondent from selling the stock under section 6335.14
F. Did the Internal Revenue Manual Preclude Respondent From
Selling the Stock?
Respondent also argues that a sale of the seized stock
accounts would have been improper under Internal Revenue Manual,
14 On Jan. 18, 2002, the Secretary issued final regulations
under sec. 6330, which are consonant with our reading of sec.
6330(e)(1). The applicable regulation asks: “What, if any,
enforcement actions can the IRS take during the suspension
period?” and answers: “the provisions in section 6330 do not
apply when the IRS * * * determines that collection of the tax is
in jeopardy.” Sec. 301.6330-1(g)(2), Q&A-G3, Proced. & Admin.
Regs.
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