26 U.S.C. § 7429 : US Code - Section 7429: Review of jeopardy levy or assessment procedures

Search 26 U.S.C. § 7429 : US Code - Section 7429: Review of jeopardy levy or assessment procedures

(a) Administrative review
(1) Administrative review
(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.
(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.
(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.
(3) Redetermination by Secretary
After a request for review is made under paragraph (2), the
Secretary shall determine -
(A) whether or not -
(i) the making of the assessment under section 6851, 6861,
or 6862, as the case may be, is reasonable under the
circumstances, and
(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
(B) whether or not the levy described in subsection (a)(1) is
reasonable under the circumstances.
(b) Judicial review
(1) Proceedings permitted
Within 90 days after the earlier of -
(A) the day the Secretary notifies the taxpayer of the
Secretary's determination described in subsection (a)(3), or
(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).
(2) Jurisdiction for determination
(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.
(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.
(3) Determination by court
Within 20 days after a proceeding is commenced under paragraph
(1), the court shall determine -
(A) whether or not -
(i) the making of the assessment under section 6851, 6861,
or 6862, as the case may be, is reasonable under the
circumstances, and
(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
(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.
(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.
(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.
(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.
(e) Venue
(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.
(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.
(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.
(g) Burden of proof
(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.
(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.