Sec. 301. Modifications to lien notice filing procedures
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/bill/114/hr/4128/ih/section-301·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 6323 is amended by adding at the end the following new subsection: The Secretary may not file a notice of lien with respect to any taxpayer unless— the lien attaches to distrainable property, and weighing all facts and circumstances pertaining to the collection of a taxpayer’s delinquent tax assessment, the Secretary determines that— the benefit to the Federal Government of the filing outweighs the harm to the taxpayer, and the filing will not jeopardize the taxpayer’s prospective ability— to comply with the internal revenue laws, and if the taxpayer is an otherwise viable business taxpayer, to continue to secure funding to maintain business operations.
In making the determination under subparagraph (A)(ii), the Secretary shall consider— the amount due, the lien filing fee, the value of the taxpayer’s equity in the property or rights to property, the taxpayer’s tax compliance history, extenuating circumstances, if any, that explain the delinquency, and the effect of the filing on the taxpayer’s ability to obtain financing, generate future income, and pay current and future tax liabilities. The Secretary may not file a notice of lien with respect to any taxpayer unless— the Secretary notifies the taxpayer that the Secretary has determined to file such a notice with respect to the taxpayer, and the taxpayer is afforded an opportunity to appeal such determination to the Internal Revenue Service Office of Appeals.
The Secretary shall provide the notice under subparagraph
(A)in writing and make reasonable efforts to provide such notice by telephone or direct personal contact. The Secretary may file a notice of lien without regard to subparagraph (A)(ii) if the Secretary finds that the collection of the tax would be in jeopardy if the notice of lien is not filed before the conclusion of such an appeal. In any case to which this paragraph applies, a notice of lien may not be filed unless the immediate supervisor (or such higher level official as the Secretary may designate) of the individual making the initial determination under paragraph
(1)has individually reviewed and approved such determination. This paragraph shall apply in any case in which— the collection of the liability would create an economic hardship within the meaning of section 6343(a)(1)(D), the taxpayer has no equity in assets, or there has been no personal contact with the taxpayer to discuss collection alternatives, including an offer in compromise and partial payment installment agreement. . Subparagraph
(A)of section 7429(a)(1) is amended by inserting after or 6862, the following: no notice of lien may be filed pursuant to section 6323(k)(2)(B), . Paragraph
(3)of section 7429(a) is amended by striking or at the end of subparagraph (A), by redesignating subparagraph
(B)as subparagraph (C), and by inserting after subparagraph
(A)the following new subparagraph: whether or not the filing of the notice of lien pursuant to section 6323(k)(2)(B) is reasonable under the circumstances, or . Paragraph
(3)of section 7429(b) is amended by striking or at the end of subparagraph (A), by redesignating subparagraph
(B)as subparagraph (C), and by inserting after subparagraph
(A)the following new subparagraph: whether or not the filing of the notice of lien pursuant to section 6323(k)(2)(B) is reasonable under the circumstances, or . The heading for section 7429 is amended by inserting after , notice of lien filing, . levy Subparagraphs
(A)and
(B)of section 7429(a)(1) are each amended by striking assessment or levy each place it appears and inserting assessment, notice of lien filing, or levy . Subparagraph
(B)of section 7429(b)(2) is amended by striking assessment or levy and inserting assessment, notice of lien filing, or levy . Paragraph
(4)of section 7429(b) is amended— by inserting that the filing of such notice of lien is unreasonable, after that the making of such levy is unreasonable, , and by inserting to withdraw such notice of lien, after to release such levy, . Paragraph
(1)of section 7429(g) is amended— by inserting , the filing of a notice of lien pursuant to section 6323(k)(2)(B), after the making of a levy described in subsection (a)(1) , and by inserting after notice of lien filing in the heading thereof. Reasonableness of The amendment made by this section shall take effect on the date of the enactment of this Act.