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accrue in addition thereto if there has been a demand for payment
and the person has failed to pay. The lien arises at the time of
assessment. Sec. 6322. In order for the Federal tax lien to
have priority over other liens or security interests, the IRS
must file an NFTL. Sec. 6323(a); Behling v. Commissioner, 118
T.C. 572, 575 (2002).
Generally, section 6320(a) states that the IRS must give the
person against whom a Federal tax lien is filed written notice of
the lien’s filing within 5 days after the date of its filing.
Section 6320(b) also provides the taxpayer with an opportunity
for a hearing before the Office of Appeals. The hearing is
conducted pursuant to subsections (c), (d), and (e) of section
6330. Sec. 6320(c).
At the hearing, the taxpayer may raise any relevant issue
relating to the unpaid tax including: (1) Challenges to the
appropriateness of the IRS’s collection actions; and (2) offers
of collection alternatives (i.e., an installment agreement,
offer-in-compromise, the posting of a bond, or the substitution
of other assets). Sec. 6330(c)(2)(A)(ii) and (iii); sec.
301.6330-1(e)(3), Q&A-E6, Proced. & Admin. Regs. The Appeals
officer must consider the following in his determination:
(1) Whether any applicable law or administrative procedure has
been followed; (2) the issues properly raised by the taxpayer;
and (3) whether the proposed collection action balances the need
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Last modified: March 27, 2008