- 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filed and should be withdrawn.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 to
Page: Previous 1 2 3 4 5 6 7 8 9 Next
Last modified: March 27, 2008