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because they were negotiating an offer-in-compromise when the
lien was filed.
The Federal Government obtains a lien against “all property
and rights to property, whether real or personal” of any person
liable for Federal taxes upon demand for payment and failure to
pay. Sec. 6321; Iannone v. Commissioner, 122 T.C. 287, 293
(2004). The lien arises automatically on the date of assessment
and continues until the tax liability is satisfied or the statute
of limitations bars enforcement. Sec. 6322; Iannone v.
Commissioner, supra at 293. The notice of Federal tax lien is
filed with the appropriate State office or other government
office in order to validate the lien against any purchaser,
holder of a security interest, mechanic’s lienor, or judgment
lien creditor. See sec. 6323(a); Lindsay v. Commissioner, T.C.
Memo. 2001-285, affd. 56 Fed. Appx. 800 (9th Cir. 2003).
The notice of Federal tax lien was not filed prematurely.
Petitioners self-assessed income tax liabilities for the years at
issue. Petitioners were given notice and demand for payment for
each year at issue. The second notice of Federal tax lien was
filed on May 12 and mailed to petitioners on May 13, 2005.
Filing of the Federal tax lien took place after assessment and
notice and demand for payment, and at each step petitioners were
properly notified. The record also indicated that petitioners’
offer-in-compromise was returned before the second notice of
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