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the ability to pay his tax liabilities in full.2 The notice of
determination does not include an estimate of petitioner’s assets
and liabilities. However, the record contains an undated
document titled “Appeals Case Memorandum” (the Appeals
memorandum). This document states that petitioner “has a credit
line of $4,200” and “retirement funds of more than $2,300. These
two assets total $6,500 (which is more than the amount
[petitioner] offered).” Neither the notice of determination nor
the Appeals memorandum includes an estimate of petitioner’s
future income.
Discussion
Section 6321 imposes a lien in favor of the United States on
all property and rights to property of a person when a demand for
the payment of the person’s liability for taxes has been made and
the person fails to pay those taxes. Such a lien arises when an
assessment is made. Sec. 6322. Section 6323(a) requires the
Secretary to file a notice of Federal tax lien if the lien is to
be valid against any purchaser, holder of a security interest,
mechanic’s lienor, or judgment lien creditor. Lindsay v.
Commissioner, T.C. Memo. 2001-285, affd. 56 Fed. Appx. 800 (9th
Cir. 2003).
2 The notice of determination includes other grounds in
support of respondent’s position. Based on our resolution of
issue for decision infra, we do not address these additional
grounds.
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Last modified: May 25, 2011