James Curtis Barrett - Page 7

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               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 notice of Federal tax lien if such 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).                                                                 
               Section 6320 provides that a taxpayer shall be notified in             
          writing by the Secretary of the filing of a Federal tax lien and            
          provided with an opportunity for an administrative hearing.  Sec.           
          6320(b).  An administrative hearing under section 6320 is                   
          conducted in accordance with the procedural requirements of                 
          section 6330.  Sec. 6320(c).  At the administrative hearing, a              
          taxpayer is entitled to raise any relevant issue relating to the            
          unpaid tax, including a spousal defense or collection                       
          alternatives such as an offer-in-compromise or an installment               
          agreement.  Sec. 6330(b) and (c)(2); sec. 301.6320-1(e)(1),                 
          Proced. & Admin. Regs.                                                      
               A taxpayer also may challenge the existence or amount of               
          the underlying tax liability, including a liability reported on             

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Last modified: May 25, 2011