Notice and opportunity for
hearing before levy
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Sec. 6330. Notice and opportunity for
hearing before levy
(a) Requirement of notice before levy
(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.
(2) Time and method for notice
The notice required under paragraph (1) shall be -
(A) given in person;
(B) left at the dwelling or usual place of business of such person;
or
(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.
(3) Information included with notice
The notice required under paragraph (1) shall
include in simple and nontechnical terms -
(A) the amount of unpaid tax;
(B) the right of the person to request a hearing
during the 30-day period under paragraph (2); and
(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) the provisions of this title relating to
levy and sale of property;
(ii) the procedures applicable to the levy and
sale of property under this title;
(iii) the administrative appeals available to
the taxpayer with respect to such levy and sale and the procedures
relating to such appeals;
(iv) the alternatives available to taxpayers
which could prevent levy on property (including installment agreements
under section 6159); and
(v) the provisions of this title and procedures
relating to redemption of property and release of liens on property.
(b) Right to fair hearing
(1) In general
If the person requests a hearing under subsection
(a)(3)(B),such hearing shall be held by the Internal Revenue Service
Office of Appeals.
(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.
(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.
(c) Matters considered at hearing
In the case of any hearing conducted under this
section -
(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.
(2) Issues at hearing
(A) In general
The person may raise at the hearing any relevant issue relating
to the unpaid tax or the proposed levy, including -
(i) appropriate spousal defenses;
(ii) challenges to the appropriateness of collection
actions; and
(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.
(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.
(3) Basis for the determination
The determination by an appeals officer under
this subsection shall take into consideration -
(A) the verification presented under paragraph
(1);
(B) the issues raised under paragraph (2); and
(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.
(4) Certain issues precluded
An issue may not be raised at the hearing if -
(A) the issue was raised and considered at a
previous hearing under section 6320 or in any other previous administrative
or judicial proceeding; and
(B) the person seeking to raise the issue participated
meaningfully in such hearing or proceeding.
This paragraph shall not apply to any issue with
respect to which subsection (d)(2)(B) applies.
(d) Proceeding after hearing
(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.
(2) Jurisdiction retained at IRS Office of Appeals
The Internal Revenue Service 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
-
(A) collection actions taken or proposed with
respect to such determination; and
(B) after the person has exhausted all administrative
remedies, a change in circumstances with respect to such person
which affects such determination.
(e) Suspension of collections and statute of
limitations
(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.
(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.
(f) Jeopardy and State refund collection
If -
(1) the Secretary has made a finding under the
last sentence of section 6331(a) that the collection of tax is
in jeopardy; or
(2) the Secretary has served a levy on a State
to collect a Federal tax liability from a State tax refund, 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.
(Added Pub. L. 105-206, title III, Sec. 3401(b),
July 22, 1998, 112 Stat. 747; amended Pub. L. 106-554, Sec. 1(a)(7)
(title III, Sec. 313(b)(2)(A), (d)), Dec. 21, 2000, 114 Stat.
2763, 2763A-642,2763A-643.)
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