• Regulatory Advocacy Reports
• Comment Calls
• Comment Letters
• Final Rule Analyses
• NCUA Board Meetings
• Regulatory Advocacy Podcasts
• Additional Resources
• Regulatory Advocacy Home

CUNA Regulatory Comment Call

August 18, 1999

IRS Withdrawal of Notice of Federal Tax Lien

The Internal Revenue Service (IRS) is requesting comments on a proposed rule relating to the withdrawal of notices of federal tax liens in certain circumstances. Comments are due by September 28. Please submit your comments to CUNA by September 22. Please feel free to fax your responses to CUNA at 202-371-8240; e-mail them to CUNA's Assistant General Counsel Jeffrey Bloch at jbloch@cuna.com; or mail them to Jeff in c/o CUNA's Regulatory Advocacy Department, 805 15th Street, NW, Suite 300, Washington, DC 20005. You may also contact us if you have questions.

BRIEF BACKGROUND

The proposed rule amends the IRS Procedure and Administration Regulations relating to the withdrawal of notices of federal tax liens. The Taxpayer Bill of Rights 2 (TBR2), passed in 1996, authorized the withdrawal of a notice of federal tax lien in certain circumstances and requires notification of the withdrawal to credit reporting agencies, financial institutions and creditors upon the request of the taxpayer. The proposed rule reflects these provisions of the TBR2

DESCRIPTION OF THE PROPOSED RULE

The proposed rule authorizes the IRS district director or the director of a service center to withdraw notices of federal tax liens under certain circumstances. The rule would allow taxpayers to request in writing that IRS notify any credit reporting agency, financial institution or creditor of the withdrawal. The withdrawal would not affect the underlying tax lien, but would relinquish any lien priority the IRS obtained under Section 6323 of the Internal Revenue Code (Code) when the IRS filed the notice withdrawal.

Under the rules, an IRS director would have the authority to withdraw tax lien notices if one of the following conditions exists:

• The filing of the notice was premature or otherwise not in accordance with the administrative procedures;
• The taxpayer has entered into an agreement under section 6159 of the Code to satisfy the liability for which the lien was imposed through installment payments, unless the agreement by its terms provides that the notice will not be withdrawn;
• The withdrawal of notice will facilitate collection of the tax liability for which the lien was imposed; or
• The withdrawal of notice would be in the best interest of the taxpayer, as determined by the National Taxpayer Advocate, and in the best interest of the United States, as determined by the director.

QUESTIONS TO CONSIDER REGARDING THE WITHDRAWAL OF NOTICE OF FEDERAL TAX LIEN

• How would the proposed rule affect your credit union's operations?



---




---




---




---




---

• Other comments?



---




---




---




---

Leagues and credit unions should feel free to fax their responses to CUNA at 202-371-8240; e-mail them to Jeffrey Bloch at jbloch@cuna.com or mail them to CUNA's Regulatory Advocacy Department, Suite 300, 805 15th Street, NW, Washington, DC 20005. Thank you!!