Michael C. Hollen & Joan L. Hollen - Page 8




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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