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DISCUSSION AND ANALYSIS
Matters considered pursuant to IRC § 6320
Verification of Legal and Procedural Requirements
Prior to filing a NFTL, IRS must issue a notice and
demand for tax for each liability to be listed on the
notice. If the tax is not paid within 10 days of such
notice and demand, a statutory lien arises on the 11th
day. Notice of the statutory lien may be filed any
time on or after the 11th day. Finally, IRS must no-
tify the taxpayer of the filing of the NFTL and his/her
right to a hearing within 5 business days of such
filing.
Administrative procedures require the Revenue Officer
to make a reasonable effort to contact the taxpayer to
advise that a NFTL may be filed if payment is not made
so that the taxpayer has an opportunity to make payment
or other security arrangements. The Revenue Officer
must also explain the effect of the NFTL filing on
normal business operations and/or the taxpayer’s credit
rating. Administrative procedures in place at the time
IRS requested the NFTL to be filed indicate that such
action should not be taken if the taxpayer is working
with IRS to resolve tax matters.
Transcripts of your account show the notice of tax and
demand for payment was issued on 7/2/2001. Letter 1058
was sent 12/15/2004. The NFTL was filed on 12/28/2004.
Letter 3172 was mailed on 12/29/2004.
The NFTL was filed more than 10 days after the notice
of tax and demand for payment was mailed (date of
assessment), and that Letter 3172, Notice of Federal
Tax Lien Filing and Your Right to a Hearing Under IRC
§6320, was mailed within 5 business days of the date of
filing.
Administratively, the case file shows the Revenue
Officer was in direct contact with your prior to filing
the NFTL.
Based upon the best available information, it appears
as though all applicable legal and administrative
procedures were followed in filing the NFTL and were
appropriate under the circumstances.
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Last modified: November 10, 2007