- 12 - In addition to the lien that arises under section 6321, sometimes referred to as a “secret lien”, a notice of Federal tax lien filed in accordance with section 6323 operates to protect the Government’s interest in a taxpayer’s property against the claims of other creditors of the taxpayer. Consistent with the purpose of section 6323, in this case, the NFTL was filed in order to protect the Government’s interest in certain real estate owned by petitioner and his spouse. It was not improper for respondent to file the NFTL while the 2003 offer was under consideration, and respondent’s refusal to withdraw or release the lien on that ground is not an abuse of discretion. Section 6159 allows the Commissioner “to enter into written agreements with any taxpayer under which such taxpayer is allowed to make payment on any tax in installment payments”, if the Commissioner “determines that such agreement will facilitate full or partial collection of such liability.” We begin our consideration of petitioner’s claim that respondent should have accepted his proposed installment agreement in lieu of the NFTL by noting that an installment agreement is not necessarily an alternative to a notice of Federal tax lien. In those situations where the taxpayer and the Commissioner have entered into an installment agreement, a notice of Federal tax lien may still be filed. See Crisan v. Commissioner, T.C. Memo. 2007-67; sec. 301.6159-1(d)(3), Proced. & Admin. Regs.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 NextLast modified: November 10, 2007