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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.
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Last modified: November 10, 2007