26 U.S.C. § 6330 : US Code - Section 6330: Notice and opportunity for hearing before levy

Search 26 U.S.C. § 6330 : US Code - Section 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.