I.R.C. § 6330(a) Requirement Of Notice Before Levy
I.R.C. § 6330(a)(1) In General —
No levy may be made on any property or right to property
of any person unless the Secretary has notified such person in writing
of their right to a hearing under this section before such levy is
made. Such notice shall be required only once for the taxable period
to which the unpaid tax specified in paragraph (3)(A) relates.
I.R.C. § 6330(a)(2) Time And Method For Notice —
The notice required under paragraph (1) shall be—
I.R.C. § 6330(a)(2)(A) —
given in person;
I.R.C. § 6330(a)(2)(B) —
left at the dwelling or usual place
of business of such person; or
I.R.C. § 6330(a)(2)(C) —
sent by certified or registered
mail, return receipt requested, to such person's last known address;
not less than 30 days before the
day of the first levy with respect to the amount of the unpaid tax
for the taxable period.
I.R.C. § 6330(a)(3) Information Included With Notice —
The notice required under paragraph (1) shall include
in simple and nontechnical terms—
I.R.C. § 6330(a)(3)(A) —
the amount of unpaid tax;
I.R.C. § 6330(a)(3)(B) —
the right of the person to request
a hearing during the 30-day period under paragraph (2); and
I.R.C. § 6330(a)(3)(C) —
the proposed action by the Secretary
and the rights of the person with respect to such action, including
a brief statement which sets forth—
I.R.C. § 6330(a)(3)(C)(i) —
the provisions of this title relating
to levy and sale of property;
I.R.C. § 6330(a)(3)(C)(ii) —
the procedures applicable to the
levy and sale of property under this title,
I.R.C. § 6330(a)(3)(C)(iii) —
the administrative appeals available
to the taxpayer with respect to such levy and sale and the procedures
relating to such appeals;
I.R.C. § 6330(a)(3)(C)(iv) —
the alternatives available to taxpayers
which could prevent levy on property (including installment agreements
under section 6159);
and
I.R.C. § 6330(a)(3)(C)(v) —
the provisions of this title and
procedures relating to redemption of property and release of liens
on property.
I.R.C. § 6330(b) Right To Fair Hearing
I.R.C. § 6330(b)(1) In General —
If the person requests a hearing in writing under subsection
(a)(3)(B) and states the grounds for the requested hearing, such
hearing shall be held by the Internal Revenue Service Independent
Office of Appeals.
I.R.C. § 6330(b)(2) One Hearing Per Period —
A person shall be entitled to only one hearing under
this section with respect to the taxable period to which the unpaid
tax specified in subsection (a)(3)(A) relates.
I.R.C. § 6330(b)(3) Impartial Officer —
The hearing under this subsection shall be conducted
by an officer or employee who has had no prior involvement with respect
to the unpaid tax specified in subsection (a)(3)(A) before the first
hearing under this section or section 6320.
A taxpayer may waive the requirement of this paragraph.
I.R.C. § 6330(c) Matters Considered At Hearing —
In the case of any hearing conducted under this section--
I.R.C. § 6330(c)(1) Requirement Of Investigation —
The appeals officer shall at the hearing obtain verification
from the Secretary that the requirements of any applicable law or
administrative procedure have been met.
I.R.C. § 6330(c)(2) Issues At Hearing
I.R.C. § 6330(c)(2)(A) In General —
The person may raise at the hearing any relevant issue
relating to the unpaid tax or the proposed levy, including—
I.R.C. § 6330(c)(2)(A)(i) —
appropriate spousal defenses;
I.R.C. § 6330(c)(2)(A)(ii) —
challenges to the appropriateness
of collection actions, and
I.R.C. § 6330(c)(2)(A)(iii) —
offers of collection alternatives,
which may include the posting of a bond, the substitution of other
assets, an installment agreement, or an offer-in-compromise.
I.R.C. § 6330(c)(2)(B) Underlying Liability —
The person may also raise at the hearing challenges
to the existence or amount of the underlying tax liability for any
tax period if the person did not receive any statutory notice of
deficiency for such tax liability or did not otherwise have an opportunity
to dispute such tax liability.
I.R.C. § 6330(c)(3) Basis For The Determination —
The determination by an appeals officer under this
subsection shall take into consideration—
I.R.C. § 6330(c)(3)(A) —
the verification presented under
paragraph (1);
I.R.C. § 6330(c)(3)(B) —
the issues raised under paragraph
(2); and
I.R.C. § 6330(c)(3)(C) —
whether any proposed collection
action balances the need for the efficient collection of taxes with
the legitimate concern of the person that any collection action be
no more intrusive than necessary.
I.R.C. § 6330(c)(4) Certain Issues Precluded —
An issue may not be raised at the hearing if—
I.R.C. § 6330(c)(4)(A)
I.R.C. § 6330(c)(4)(A)(i) —
the issue was raised and considered
at a previous hearing under section 6320 or
in any other previous administrative or judicial proceeding; and
I.R.C. § 6330(c)(4)(A)(ii) —
the person seeking to raise the
issue participated meaningfully in such hearing or proceeding;
I.R.C. § 6330(c)(4)(B) —
the issue meets the requirement
of clause (i) or (ii) of section 6702(b)(2)(A); or
I.R.C. § 6330(c)(4)(C) —
a final determination has been made with respect to such
issue in a proceeding brought under subchapter C of chapter 63.
This paragraph shall not apply to
any issue with respect to which subsection (d)(3)(B) applies.
I.R.C. § 6330(d) Proceeding After Hearing
I.R.C. § 6330(d)(1) Petition For Review By Tax Court —
The person may, within 30 days
of a determination under this section, petition the Tax Court for
review of such determination (and the Tax Court shall have jurisdiction
with respect to such matter).
I.R.C. § 6330(d)(2) Suspension Of Running Of Period For Filing Petition In Title
11 Cases —
In the case of a person who is prohibited by reason of
a case under title 11, United States Code, from filing a petition
under paragraph (1) with respect to a determination under this section,
the running of the period prescribed by such subsection for filing
such a petition with respect to such determination shall be suspended
for the period during which the person is so prohibited from filing
such a petition, and for 30 days thereafter.
I.R.C. § 6330(d)(3) Jurisdiction Retained At IRS Independent Office Of Appeals —
The Internal Revenue Service Independent Office of
Appeals shall retain jurisdiction with respect to any determination
made under this section, including subsequent hearings requested
by the person who requested the original hearing on issues regarding—
I.R.C. § 6330(d)(3)(A) —
collection actions taken or proposed with respect to
such determination; and
I.R.C. § 6330(d)(3)(B) —
after the person has exhausted all administrative
remedies, a change in circumstances with respect to such person which
affects such determination.
I.R.C. § 6330(e) Suspension Of Collections And Statute Of Limitations
I.R.C. § 6330(e)(1) In General —
Except as provided in paragraph (2), if a hearing is
requested under subsection (a)(3)(B), the levy actions which are
the subject of the requested hearing and the running of any period
of limitations under section 6502 (relating
to collection after assessment), section 6531 (relating to criminal prosecutions),
or section 6532 (relating
to other suits) shall be suspended for the period during which such
hearing, and appeals therein, are pending. In no event shall any
such period expire before the 90th day after the day on which there
is a final determination in such hearing. Notwithstanding the provisions
of section 7421(a),
the beginning of a levy or proceeding during the time the suspension
under this paragraph is in force may be enjoined by a proceeding
in the proper court, including the Tax Court. The Tax Court shall
have no jurisdiction under this paragraph to enjoin any action or
proceeding unless a timely appeal has been filed under subsection
(d)(1) and then only in respect of the unpaid tax or proposed levy
to which the determination being appealed relates.
I.R.C. § 6330(e)(2) Levy Upon Appeal —
Paragraph (1) shall not apply to a levy action while
an appeal is pending if the underlying tax liability is not at issue
in the appeal and the court determines that the Secretary has shown
good cause not to suspend the levy.
I.R.C. § 6330(f) Exceptions —
If—
I.R.C. § 6330(f)(1) —
the Secretary has made a finding
under the last sentence of section 6331(a) that
the collection of tax is in jeopardy,
I.R.C. § 6330(f)(2) —
the Secretary has served a levy
on a State to collect a Federal tax liability from a State tax refund,
I.R.C. § 6330(f)(3) —
the Secretary has served a disqualified
employment tax levy, or
I.R.C. § 6330(f)(4) —
the Secretary has served a Federal contractor levy,
this section shall not apply, except
that the taxpayer shall be given the opportunity for the hearing
described in this section within a reasonable period of time after
the levy.
I.R.C. § 6330(g) Frivolous Requests For Hearing, Etc. —
Notwithstanding any other provision of this section,
if the Secretary determines that any portion of a request for
a hearing under this section or section 6320 meets the requirement of
clause (i) or (ii) of section 6702(b)(2)(A), then the
Secretary may treat such portion as if it were never submitted
and such portion shall not be subject to any further administrative
or judicial review.
I.R.C. § 6330(h) Definitions Related To Exceptions —
For purposes of subsection (f)—
I.R.C. § 6330(h)(1) Disqualified Employment Tax Levy —
A disqualified employment tax levy is any levy in connection
with the collection of employment taxes for any taxable period if
the person subject to the levy (or any predecessor thereof) requested
a hearing under this section with respect to unpaid employment taxes
arising in the most recent 2-year period before the beginning of the
taxable period with respect to which the levy is served. For purposes
of the preceding sentence, the term “employment taxes” means
any taxes under chapter 21, 22, 23, or 24.
I.R.C. § 6330(h)(2) Federal Contractor Levy —
A Federal contractor levy is any levy if the person whose
property is subject to the levy (or any predecessor thereof) is a
Federal contractor.
(Added by Pub. L. 105-206,
title III, Sec. 3401(b), July 22, 1998, 112
Stat 685; amended by Pub.
L. 106-554, Sec. 313, Dec. 21, 2000, 114 Stat. 2763; Pub. L. 109-280, title VIII, Sec.
855, Aug. 17, 2006, 120 Stat. 780; Pub. L. 109-432, div. A, title IV,
Sec. 407(b), Dec. 20, 2006, 120 Stat.
2922; Pub. L. 110-28,
title VIII, Sec. 8243, May 25, 2007, 121
Stat. 112; Pub. L. 111-240,
title II, Sec. 2104, Sept. 27, 2010, 124
Stat. 2504; Pub. L. 114-74,
title XI, Sec. 1101(d), Nov. 2, 2015; Pub.
L. 114-113, Div. Q, Sec. 424(b), Dec. 18, 2015; Pub. L. 115-141, Div. U, title IV, Sec.
401(a)(281)-(282), Mar. 23, 2018, 132
Stat. 348; Pub. L. 116-25,
title I, Sec. 1001(b)(1)(C), (b)(3), July 1, 2019, 133 Stat. 981.)
BACKGROUND NOTES
Amendments
to Subchapter
1966--Pub. L. 89-719, title I, 104(j), Nov. 2,
1966, 80 Stat. 1138, inserted
“and return property” in item 6343.
AMENDMENTS
2019 — Subsec. (b)(1),
(d)(3). Pub. L. 116-25, title I,
Sec. 1001(b)(1)(C), amended subpar. (b)(1) and (d)(3) by substituting “Internal
Revenue Service Independent Office of Appeals” for “Internal
Revenue Service Office of Appeals”.
Subsec. (d)(3). Pub. L.
116-25, title I, Sec. 1001(b)(3), amended the heading by
adding ‘‘INDEPENDENT’’ after ‘‘IRS’’.
2018 -
Subsec. (c). Pub. L. 115-141,
Div. U, Sec. 401(a)(281), amended subsec. (c) by substituting “
subsection (d)(3)(B)” for “subsection (d)(2)(B)”.
Subsec. (d)(2). Pub.
L. 115-141, Div. U, Sec. 401(a)(282), amended par. (2) by
substituting a period for “, and”.
2015 - Subsec. (d)(1). Pub. L. 114-113, Div. Q, Sec. 424(b)(1)(B),
amended the heading of par. (1) by substituting “PETITION FOR
REVIEW BY TAX COURT” for “JUDICIAL REVIEW OF DETERMINATION”.
Subsec. (d)(1). Pub.
L. 114-113, Div. Q, Sec. 424(b)(1)(A), amended par. (1)
by substituting “petition the Tax Court for review of such determination”
for “appeal such determination to the Tax Court”.
Subsec. (d)(2)-(3). Pub.
L. 114-113, Div. Q, Sec. 424(b)(1)(C)-(D), amended subsec.
(d) by redesignating par. (2) as par. (3) and by adding a new par.
(2).
Subsec. (c)(4). Pub. L.
114-74, Sec. 1101(d), amended par. (4) by striking “or”
at the end of subpar. (A), by substituting “; or” for
the period at the end of subpar. (B), and by adding subpar. (C).
2010 - Subsec. (f). Pub. L. 111-240, Sec. 2104(c), amended
the heading of subsec. (f) by substituting “Exceptions”
for “Jeopardy And State Refund Collection”
Subsec. (f)(2)-(4). Pub.
L. 111-240, Sec. 2104(a), amended subsec. (f) by
striking “or” at the end of par. (2); by inserting “
or” at the end of par. (3); and by adding par. (4).
Subsec. (h). Pub.
L. 111-240, Sec. 2104(b), amended subsec. (h) by substituting “‘(h)
Definitions Related to Exceptions- For purposes of subsection (f)--(1)
DISQUALIFIED EMPLOYMENT TAX LEVY- A disqualified employment tax levy
is” for “(h) Disqualified Employment Tax Levy.—
For purposes of subsection (f), a disqualified employment tax levy
is” and by adding par. (2).
2007 - Subsec. (f). Pub.
L. 110-28, Sec. 8243(a), amended subsec. (f) by substituting
a comma for “; or” at the end of par. (1), by adding “or"
at the end of par. (2); and by adding par. (3).
Subsec. (h). Pub.
L. 110-28, Sec. 8243(b), added subsec. (h).
2006 - Subsec. (b)(1). Pub. L. 109-432, Sec. 407(b)(3),
amended par. (1) by substituting “in writing under subsection (a)(3)(B)
and states the grounds for the requested hearing” for “under subsection
(a)(3)(B)”.
Subsec. (c)(4). Pub.
L. 109-432, Sec. 407(b)(2), amended par. (4) by striking
“(A)” and inserting “(A)(i); by striking “(B)” and inserting “(ii)”;
by striking the period at the end of the first sentence and inserting
“; or”; and by inserting a new subpar. (B) after subpar. (A)(ii)
(as so redesignated).
Subsec. (g). Pub.
L. 109-432, Sec. 407(b)(1), added subsec. (g).
Subsec. (d)(1). Pub.
L. 109-280, Sec. 855(a), amended par. (1). Before
amendment, it read as follows:
“(1) Judicial review of determination. --
“The person may, within 30 days of a determination
under this section, appeal such determination--
“(A) to the Tax Court (and the Tax Court shall
have jurisdiction with respect to such matter), or
“(B) if the Tax Court does not have jurisdiction
of the underlying tax liability, to a district court of the United
States.
“If a court determines that
the appeal was to an incorrect court, a person shall have 30 days
after the court determination to file such appeal with the correct
court.”
2000 - Subsec. (d)(1)(A). Pub. L. 106-554, Sec. 313(d), substituted
“with respect to” for “to hear”.
Subsec. (e)(1). Pub.
L. 106-554, Sec. 313(b), added the last sentence
to par. (1).
EFFECTIVE
DATE OF 2019 AMENDMENTS
Amendments by Pub. L.
116-25, title I, Sec. 1001(b)(1)(C), (b)(3), effective on
the date of the enactment of this Act [Enacted: July 1, 2019].
EFFECTIVE
DATE OF 2018 AMENDMENTS
Amendments by Pub. L.
115-141, Div. U, Sec. 401(a)(281)-(282), effective March
23, 2018.
EFFECTIVE
DATE OF 2015 AMENDMENTS
Amendments by Pub. L.
114-113, Div. Q, Sec. 424(b), effective for petitions filed
under section 6330 of the Internal Revenue
Code of 1986 after the date of the enactment of this Act
[Enacted: Dec. 18, 2015].
Pub. L. 114-74,
Sec. 1101(d), added subpar. (C) generally effective with respect to
returns filed for partnership taxable years beginning after December
31, 2017; however, Act Sec. 1101(g)(4) provides that partnerships
may elect the amendments made by Act Sec. 1101 (other than the election
under Code Sec. 6221(b)) to apply to any return of the partnership
filed for partnership taxable years beginning after Nov. 2, 2015,
and before Jan. 1, 2018.
Pub. L. 114-74, Sec. 1101(g) provided:
“(g)
EFFECTIVE DATE.—
“(1)
IN GENERAL.— Except as otherwise provided in this subsection,
the amendments made by this section shall apply to returns filed for
partnership taxable years beginning after December 31, 2017.
“(2) ADMINISTRATIVE ADJUSTMENT REQUESTS.—
In the case of administrative adjustment request under section 6227
of such Code, the amendments made by this section shall apply to requests
with respect to returns filed for partnership taxable years beginning
after December 31, 2017.
“(3)
ADJUSTED PARTNERS STATEMENTS.— In the case of a partnership
electing the application of section 6226 of such Code, the amendments
made by this section shall apply to elections with respect to returns
filed for partnership taxable years beginning after December 31, 2017.
“(4)
ELECTION.— A partnership may elect (at such time and in such
form and manner as the Secretary of the Treasury may prescribe) for
the amendments made by this section (other than the election under
section 6221(b) of such Code (as added by this Act)) to apply to any
return of the partnership filed for partnership taxable years beginning
after the date of the enactment of this Act [Enacted: Nov. 2, 2015]
and before January 1, 2018.”
EFFECTIVE
DATE OF 2010 AMENDMENTS
Amendments
by Sec. 2104 of Pub. L. 111-240 effective
for levies issued after the date of the enactment of this Act [Enacted:
Sept. 27, 2010].
EFFECTIVE
DATE OF 2007 AMENDMENTS
Amendments
by Sec. 8243 of Pub. L. 110-28 effective
for levies served on or after the date that is 120 days after the
date of the enactment of this Act [Enacted: May 25, 2007].
EFFECTIVE DATE OF 2006 AMENDMENTS
Amendments by Sec. 407(b) of Pub. L. 109-432 effective for submissions
made and issues raised after the date on which the Secretary first
prescribes a list under section
6702(c) of the Internal Revenue Code of 1986, as amended
by subsection (a).
Amendment by Sec. 855 of Pub. L. 109-280 effective for determinations
made after the date which is 60 days after the date of the enactment
of this Act [Enacted: Aug. 17, 2006].
EFFECTIVE DATE OF 2000 AMENDMENTS
Amendment by Sec. 313(b) of Pub. L. 106-554 is effective on
the date of the enactment of this Act [Enacted: Dec. 21, 2000].
Amendment by Sec. 313(d) of Pub. L. 106-554 is effective as
if included in the provisions of the IRS Restructuring and Reform
Act of 1998 to which it relates [collection actions initiated after
the date that is 180 days after the date of the enactment of this
Act].
EFFECTIVE DATE
Effective for collection actions initiated after
the date which is 180 days after the date of the enactment of this
Act [Enacted: July 22, 1998].
