- 4 - judgments against him totaling nearly $1.3 million. But he refused to have the settlement officer conducting the CDP hearing consider this new offer, preferring to have it “worked on” by the IRS Appeals office in Tennessee to which he had sent it. This left the settlement officer conducting the hearing with nothing to do but review Scharringhausen’s IRS records and the transcripts reflecting the IRS’s rejection of Scharringhausen’s first offer (for 2001-03), verify whether all applicable legal and administrative requirements had been met, and consider Scharringhausen’s contention that the tax lien was improperly filed and should be withdrawn. She concluded the hearing by sustaining the lien and issuing a notice of determination. Scharringhausen, a resident of California when he filed his petition, appeals. The parties stipulated the facts and submitted the case for decision without trial under Rule 122. Discussion Once a taxpayer fails to pay taxes after the IRS has sent him a demand for payment, his tax liability becomes a lien in favor of the United States against all of his real and personal property. Sec. 6321. Filing a notice of that lien is nevertheless important because it gives the lien priority against later-filing competing creditors. See sec. 6323(a); Behling v. Commissioner, 118 T.C. 572, 575 (2002). It also opens a short window of time during which a taxpayer may demand a hearing toPage: Previous 1 2 3 4 5 6 7 8 9 NextLast modified: March 27, 2008