I.R.C. § 7429(a) Administrative Review
I.R.C. § 7429(a)(1) Administrative Review
I.R.C. § 7429(a)(1)(A) Prior Approval Required —
No assessment may be made under section 6851(a), 6852(a), 6861(a), or 6862, and no levy may be made under section 6331(a) less than 30 days after notice and demand for payment is made, unless the Chief
Counsel for the Internal Revenue Service (or such Counsel's delegate) personally
approves (in writing) such assessment or levy.
I.R.C. § 7429(a)(1)(B) Information To Taxpayer —
Within 5 days after the day on which such an assessment or levy is made, the Secretary
shall provide the taxpayer with a written statement of the information upon which
the Secretary relied in making such assessment or levy.
I.R.C. § 7429(a)(2) Request For Review —
Within 30 days after the day on which the taxpayer is furnished the written statement
described in paragraph (1), or within 30 days after the last day of the period within which such statement
is required to be furnished, the taxpayer may request the Secretary to review the
action taken.
I.R.C. § 7429(a)(3) Redetermination By Secretary —
After a request for review is made under paragraph (2), the Secretary shall
determine--
I.R.C. § 7429(a)(3)(A) —
whether or not--
I.R.C. § 7429(a)(3)(A)(i) —
the making of the assessment under section 6851, 6861, or 6862, as the case may be, is reasonable under the circumstances, and
I.R.C. § 7429(a)(3)(A)(ii) —
the amount so assessed or demanded as a result of the action taken under section
6851, 6861, or 6862 is appropriate under the circumstances, or
I.R.C. § 7429(a)(3)(B) —
whether or not the levy described in subsection (a)(1) is reasonable under the circumstances.
I.R.C. § 7429(b) Judicial Review
I.R.C. § 7429(b)(1) Proceedings Permitted —
Within 90 days after the earlier of--
I.R.C. § 7429(b)(1)(A) —
the day the Secretary notifies the taxpayer of the Secretary's determination described
in subsection (a)(3), or
I.R.C. § 7429(b)(1)(B) —
the 16th day after the request described in subsection (a)(2) was made, the taxpayer may bring a civil action against the United States for a
determination under this subsection in the court with jurisdiction
determined under paragraph (2).
I.R.C. § 7429(b)(2) Jurisdiction For Determination
I.R.C. § 7429(b)(2)(A) In General —
Except as provided in subparagraph (B), the district courts of the United States shall have exclusive jurisdiction over
any civil action for a determination under this subsection.
I.R.C. § 7429(b)(2)(B) Tax Court —
If a petition for a redetermination of a deficiency under section 6213(a) has
been timely filed with the Tax Court before the making of an assessment or levy that
is subject to the review procedures of this section, and 1 or more of the taxes and
taxable periods before the Tax Court because of such petition is also included in
the written statement that is provided to the taxpayer under subsection (a), then the Tax Court also shall have jurisdiction over any civil action for a determination
under this subsection with respect to all the taxes and taxable periods included
in such written statement.
I.R.C. § 7429(b)(3) Determination By Court —
Within 20 days after a proceeding is commenced under paragraph (1), the court shall determine--
I.R.C. § 7429(b)(3)(A) —
whether or not--
I.R.C. § 7429(b)(3)(A)(i) —
the making of the assessment under section 6851, 6861, or 6862, as the case may be, is reasonable under the circumstances, and
I.R.C. § 7429(b)(3)(A)(ii) —
the amount so assessed or demanded as a result of the action taken under section
6851, 6861, or 6862 is appropriate under the circumstances, or
I.R.C. § 7429(b)(3)(B) —
whether or not the levy described in subsection (a)(1) is reasonable under the circumstances.
If the court determines that proper service was not made on the United States or
on the Secretary, as may be appropriate, within 5 days after the date of the commencement
of the proceeding, then the running of the 20-day period set forth in the preceding
sentence shall not begin before the day on which proper service was made on the United
States or on the Secretary, as may be appropriate.
I.R.C. § 7429(b)(4) Order Of Court —
If the court determines that the making of such levy is unreasonable, that the making
of such assessment is unreasonable, or that the amount assessed or demanded is inappropriate,
then the court may order the Secretary to release such levy, to abate such assessment,
to redetermine (in whole or in part) the amount assessed or demanded, or to take
such other action as the court finds appropriate.
I.R.C. § 7429(c) Extension Of 20-Day Period Where Taxpayer So Requests —
If the taxpayer requests an extension of the 20-day period set forth in subsection
(b)(2) and establishes reasonable grounds why such extension should be granted, the court
may grant an extension of not more than 40 additional days.
I.R.C. § 7429(d) Computation Of Days —
For purposes of this section, Saturday, Sunday, or a legal holiday in the District
of Columbia shall not be counted as the last day of any period.
I.R.C. § 7429(e) Venue
I.R.C. § 7429(e)(1) District Court —
A civil action in a district court under subsection (b) shall be commenced only in the judicial district described in section 1402(a)(1) or (2) of title 28, United States Code.
I.R.C. § 7429(e)(2) Transfer Of Actions —
If a civil action is filed under subsection (b) with the Tax Court and such court finds that there is want of jurisdiction because
of the jurisdiction provisions of subsection (b)(2), then the Tax Court shall, if such court determines it is in the interest of justice,
transfer the civil action to the district court in which the action could have been
brought at the time such action was filed. Any civil action so transferred shall
proceed as if such action had been filed in the district court to which such action
is transferred on the date on which such action was actually filed in the Tax Court
from which such action is transferred.
I.R.C. § 7429(f) Finality Of Determination —
Any determination made by a court under this section shall be final and conclusive
and shall not be reviewed by any other court.
I.R.C. § 7429(g) Burden Of Proof
I.R.C. § 7429(g)(1) Reasonableness Of Levy, Termination, Or Jeopardy Assessment —
In a proceeding under subsection (b) involving the issue of whether the making of a levy described in subsection (a)(1) or the making of an assessment under section 6851, 6852, 6861, or 6862 is reasonable under the
circumstances, the burden of proof in respect to such issue shall be upon the Secretary.
I.R.C. § 7429(g)(2) Reasonableness Of Amount Of Assessment —
In a proceeding under subsection (b) involving the issue of whether an amount assessed
or demanded as a result of action taken under section 6851, 6852, 6861, or 6862 is appropriate under the circumstances, the Secretary shall provide a written statement
which contains any information with respect to which his determination of the amount
assessed was based, but the burden of proof in respect of such issue shall be upon
the taxpayer.
(Added Pub. L. 94-455, title XII, 1204(a), Oct. 4, 1976, 90 Stat. 1695, and amended Pub. L. 98-369, div. A, title IV, 446(a), July 18, 1984, 98 Stat. 817; Pub. L. 100-203, title X, 10713(b)(2)(F), Dec. 22, 1987, 101 Stat. 1330-470; Pub. L. 100-647, title VI, 6237(a)-(e)(3), Nov. 10, 1988, 102 Stat. 3741-3743; Pub. L. 105-206, title III, Sec. 3434(a), July 22, 1998, 112 Stat 685.)
Background Notes
Amendments
1998--Subsec. (a)(1). Pub. L. 105-206, Sec. 3434(a) amended paragraph (1). Prior to amendment it read as follows:
“(1) Information to taxpayer
“Within 5 days after the day on which an assessment is made under section 6851(a),
6852(a), 6861(a), or 6862, or levy is made under section 6331(a) less than 30 days
after notice and demand for payment is made under section 6331(a), the Secretary shall
provide the taxpayer with a written statement of the information upon which the Secretary
relies in making such assessment or levy.”
1988--Pub. L. 100-647, 6237(e)(3), inserted “levy or” after “jeopardy”
in section catchline.
Subsec. (a)(1). Pub. L. 100-647, 6237(a), inserted “or levy is made under section 6331(a) less than 30 days after
notice and demand for payment is made under section 6331(a),” after “6862,” and “or
levy” after “such assessment”.
Subsec. (a)(3). Pub. L. 100-647, 6237(b), amended par. (3) generally. Prior to amendment, par. (3) read as follows:
“After a request for review is made under paragraph (2), the Secretary shall determine
whether or not--
“(A) the making of the assessment under section 6851, 6852, 6861, or 6862, as the
case may be, is reasonable under the circumstances, and
“(B) the amount so assessed or demanded as a result of the action taken under section
6851, 6852, 6861, or 6862 is appropriate under the circumstances.”
Subsec. (b). Pub. L. 100-647, 6237(c), amended subsec. (b) generally, substituting provisions of pars. (1) to
(4) for provisions of former pars. (1)
to (3) relating to actions permitted, determination by district court, and order of
district court.
Subsec. (c). Pub. L. 100-647, 6237(e)(1), struck out “district” before “court”.
Subsec. (e). Pub. L. 100-647, 6237(d), amended subsec. (e) generally. Prior to amendment, subsec. (e) read as
follows: “A civil action under subsection (b) shall be commenced only in the judicial
district described in section 1402(a)(1) or (2) of title 28, United States Code.”
Subsec. (f). Pub. L. 100-647, 6237(e)(1), struck out “district” after “made by a”.
Subsec. (g)(1). Pub. L. 100-647, 6237(e)(2), in heading substituted “levy, termination,” for “termination” and in
text substituted “a proceeding” for “an action” and inserted “the making of a levy
described in subsection (a)(1) or” after “whether”.
Subsec. (g)(2). Pub. L. 100-647, 6237(e)(2)(C), substituted “a proceeding”
for “an action”.
1987--Subsec. (a)(1). Pub. L. 100-203, 10713(b)(2)(F)(i), substituted “6851(a), 6852(a)” for “6851(a),”.
Subsecs. (a)(3)(A), (B), (b)(2)(A), (B), (g)(1),
(2). Pub. L. 100-203, 10713(b)(2)(F)(ii), substituted “6851, 6852,” for “6851,” wherever appearing.
1984--Subsec. (b)(2). Pub. L. 98-369 inserted provision that if the court determines that proper service was not made
on the United States within 5 days after the date of the commencement of the action,
the running of the 20-day period shall not begin before the day on which proper service
was made on the United States.
EFFECTIVE DATE OF 1998 AMENDMENT
Amendment by Section 3434(a) of Pub. L. 105-206 applicable to taxes assessed and levies made after the date of enactment [enacted:
July 22, 1998].
Effective Date of 1988 Amendment
Section 6237(f) of Pub. L. 100-647 provided that: “The amendments made by this section [amending this section] shall
apply to jeopardy levies issued and assessments made on or after July 1, 1989.”
Effective Date of 1984 Amendment
Section 446(b) of Pub. L. 98-369 provided that: “The amendment made by subsection
(a) [amending this section] shall apply to actions commenced after the date of the
enactment of this Act [July 18, 1984].”
Effective Date
Section applicable with respect to action taken under section 6851, 6861, or 6862
of this title where notice and demand takes place after Feb. 28, 1977, see section
1204(d) of Pub. L. 94-455, as amended, set out as a note under section 6851 of this title.
Section Referred to in Other Sections
This section is referred to in sections 6851, 6863, 6867 of this title; title 28 section
1346.
