26 U.S.C. § 6320 — Notice and opportunity for hearing upon

Page 3561 TITLE 26—INTERNAL REVENUE CODE § 6320 1983—Pub. L. 98–76 inserted ‘‘or tax imposed by sec- tion 3321’’ after ‘‘Federal unemployment tax’’, and sub- stituted ‘‘chapter 23 and 23A, as the case may be,’’ for ‘‘chapter 23’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1988 AMENDMENT Amendment by Pub. L. 100–647 applicable to remu- neration paid after Dec. 31, 1988, see section 7106(d) of Pub. L. 100–647, set out as a note under section 3321 of this title. EFFECTIVE DATE OF 1983 AMENDMENT Amendment by Pub. L. 98–76 applicable to remunera- tion paid after June 30, 1986, see section 231(d) of Pub. L. 98–76, set out as an Effective Date note under section 3321 of this title. EFFECTIVE DATE Section applicable with respect to calendar years be- ginning after Dec. 31, 1969, see section 4(a) of Pub. L. 91–53, set out as a note under section 6157 of this title. Subchapter C—Lien for Taxes Part I. Due process for liens. II. Liens. Editorial Notes AMENDMENTS 1998—Pub. L. 105–206, title III, § 3401(a), July 22, 1998, 112 Stat. 746, added part analysis. PART I—DUE PROCESS FOR LIENS Sec. 6320. Notice and opportunity for hearing upon fil- ing of notice of lien. Editorial Notes AMENDMENTS 1998—Pub. L. 105–206, title III, § 3401(a), July 22, 1998, 112 Stat. 746, added part heading and analysis con- sisting of item 6320. § 6320. Notice and opportunity for hearing upon filing of notice of lien (a) Requirement of notice (1) In general The Secretary shall notify in writing the person described in section 6321 of the filing of a notice of lien under section 6323. (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 to such person’s last known address, not more than 5 business days after the day of the filing of the notice of lien. (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 beginning on the day after the 5-day period described in paragraph (2); (C) the administrative appeals available to the taxpayer with respect to such lien and the procedures relating to such appeals; (D) the provisions of this title and proce- dures relating to the release of liens on prop- erty; and (E) the provisions of section 7345 relating to the certification of seriously delinquent tax debts and the denial, revocation, or limi- tation of passports of individuals with such debts pursuant to section 32101 of the FAST Act. (b) Right to fair hearing (1) In general If the person requests a hearing in writing under subsection (a)(3)(B) and states the grounds for the requested hearing, such hear- ing shall be held by the Internal Revenue Service Independent Office of Appeals. (2) One hearing per period A person shall be entitled to only one hear- ing under this section with respect to the tax- able 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) be- fore the first hearing under this section or sec- tion 6330. A taxpayer may waive the require- ment of this paragraph. (4) Coordination with section 6330 To the extent practicable, a hearing under this section shall be held in conjunction with a hearing under section 6330. (c) Conduct of hearing; review; suspensions For purposes of this section, subsections (c), (d) (other than paragraph (3)(B) thereof), (e), and (g) of section 6330 shall apply. (Added Pub. L. 105–206, title III, § 3401(a), July 22, 1998, 112 Stat. 746; amended Pub. L. 109–432, div. A, title IV, § 407(c), Dec. 20, 2006, 120 Stat. 2962; Pub. L. 114–94, div. C, title XXXII, § 32101(b)(1), Dec. 4, 2015, 129 Stat. 1731; Pub. L. 114–113, div. Q, title IV, § 424(c), Dec. 18, 2015, 129 Stat. 3125; Pub. L. 116–25, title I, § 1001(b)(1)(B), July 1, 2019, 133 Stat. 985.) Editorial Notes REFERENCES IN TEXT Section 32101 of the FAST Act, referred to in subsec. (a)(3)(E), is section 32101 of Pub. L. 114–94, which en- acted section 7345 of this title and section 2714a of Title 22, Foreign Relations and Intercourse, and amended this section and sections 6103, 6331, and 7508 of this title. AMENDMENTS 2019—Subsec. (b)(1). Pub. L. 116–25 substituted ‘‘Inter- nal Revenue Service Independent Office of Appeals’’ for ‘‘Internal Revenue Service Office of Appeals’’. 2015—Subsec. (a)(3)(E). Pub. L. 114–94 added subpar. (E). Subsec. (c). Pub. L. 114–113 substituted ‘‘(3)(B)’’ for ‘‘(2)(B)’’. Page 3562 TITLE 26—INTERNAL REVENUE CODE § 6321 2006—Subsec. (b)(1). Pub. L. 109–432, § 407(c)(1), sub- stituted ‘‘in writing under subsection (a)(3)(B) and states the grounds for the requested hearing’’ for ‘‘under subsection (a)(3)(B)’’. Subsec. (c). Pub. L. 109–432, § 407(c)(2), substituted ‘‘(e), and (g)’’ for ‘‘and (e)’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2006 AMENDMENT Pub. L. 109–432, div. A, title IV, § 407(f), Dec. 20, 2006, 120 Stat. 2962, provided that: ‘‘The amendments made by this section [amending this section and sections 6330, 6702, and 7122 of this title] shall apply to submis- sions made and issues raised after the date on which the Secretary first prescribes a list under section 6702(c) of the Internal Revenue Code of 1986, as amended by subsection (a) [list prescribed Mar. 16, 2007, see I.R.S. Notice 2007–30, 2007–14, I.R.B. 883].’’ EFFECTIVE DATE Pub. L. 105–206, title III, § 3401(d), July 22, 1998, 112 Stat. 750, provided that: ‘‘The amendments made by this section [enacting this section and section 6330 of this title and amending section 7443A of this title] shall apply to collection actions initiated after the date which is 180 days after the date of the enactment of this Act [July 22, 1998].’’ PART II—LIENS Sec. 6321. Lien for taxes. 6322. Period of lien. 6323. Validity and priority against certain persons. 6324. Special liens for estate and gift taxes. 6324A. Special lien for estate tax deferred under sec- tion 6166. 6324B. Special lien for additional estate tax attrib- utable to farm, etc., valuation. 6325. Release of lien or discharge of property. 6326. Administrative appeal of liens. 6327. Cross references. Editorial Notes AMENDMENTS 1998—Pub. L. 105–206, title III, § 3401(a), July 22, 1998, 112 Stat. 747, added part heading. 1988—Pub. L. 100–647, title VI, § 6238(c), Nov. 10, 1988, 102 Stat. 3743, added item 6326 and redesignated former item 6326 as 6327. 1981—Pub. L. 97–34, title IV, § 422(e)(6)(D), Aug. 13, 1981, 95 Stat. 316, struck out ‘‘or 6166A’’ after ‘‘section 6166’’ in item 6324A. 1976—Pub. L. 94–455, title XX, §§ 2003(d)(2), 2004(f)(1), Oct. 4, 1976, 90 Stat. 1862, 1871, added items 6324A and 6324B. 1966—Pub. L. 89–719, title I, §§ 101(b)(1), 103(b), Nov. 2, 1966, 80 Stat. 1131, 1135, substituted ‘‘Validity and pri- ority against certain persons’’ for ‘‘Validity against mortgagees, pledgees, purchasers, and judgment credi- tors’’ in item 6323, and struck out ‘‘partial’’ before ‘‘dis- charge’’ in item 6325. § 6321. Lien for taxes If any person liable to pay any tax neglects or refuses to pay the same after demand, the amount (including any interest, additional amount, addition to tax, or assessable penalty, together with any costs that may accrue in ad- dition thereto) shall be a lien in favor of the United States upon all property and rights to property, whether real or personal, belonging to such person. (Aug. 16, 1954, ch. 736, 68A Stat. 779.) Statutory Notes and Related Subsidiaries SHORT TITLE Pub. L. 89–719, § 1(a), Nov. 2, 1966, 80 Stat. 1125, pro- vided that: ‘‘This Act [enacting sections 3505, 7425, 7426, and 7810 of this title, amending sections 545, 6322 to 6325, 6331, 6332, 6334, 6335, 6337 to 6339, 6342, 6343, 6502, 6503, 6532, 7402, 7403, 7421, 7424, 7505, 7506, and 7809 of this title, sections 1346, 1402, and 2410 of Title 28, Judiciary and Judicial Procedure, and section 270a of former Title 40, Public Buildings, Property, and Works, redes- ignating section 7425 as 7427 of this title, and enacting provisions set out as notes under sections 6323 and 7424 of this title, and under section 1346 of Title 28] may be cited as the ‘Federal Tax Lien Act of 1966’.’’ § 6322. Period of lien Unless another date is specifically fixed by law, the lien imposed by section 6321 shall arise at the time the assessment is made and shall continue until the liability for the amount so assessed (or a judgment against the taxpayer arising out of such liability) is satisfied or be- comes unenforceable by reason of lapse of time. (Aug. 16, 1954, ch. 736, 68A Stat. 779; Pub. L. 89–719, title I, § 113(a), Nov. 2, 1966, 80 Stat. 1146.) Editorial Notes AMENDMENTS 1966—Pub. L. 89–719 inserted ‘‘(or a judgment against the taxpayer arising out of such liability)’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1966 AMENDMENT Amendment by Pub. L. 89–719 applicable after Nov. 2, 1966, regardless of when title or lien of United States arose or when lien or interest of another person was ac- quired, with certain exceptions, see section 114(a)–(c) of Pub. L. 89–719, set out as a note under section 6323 of this title. § 6323. Validity and priority against certain per- sons (a) Purchasers, holders of security interests, me- chanic’s lienors, and judgment lien creditors The lien imposed by section 6321 shall not be valid as against any purchaser, holder of a secu- rity interest, mechanic’s lienor, or judgment lien creditor until notice thereof which meets the requirements of subsection (f) has been filed by the Secretary. (b) Protection for certain interests even though notice filed Even though notice of a lien imposed by sec- tion 6321 has been filed, such lien shall not be valid— (1) Securities With respect to a security (as defined in sub- section (h)(4))— (A) as against a purchaser of such security who at the time of purchase did not have ac- tual notice or knowledge of the existence of such lien; and (B) as against a holder of a security inter- est in such security who, at the time such interest came into existence, did not have actual notice or knowledge of the existence of such lien.