Internal Revenue Manual
Part 5. Collecting Process
IRM requirements for NFTL:
https://www.irs.gov/irm/part5/irm_05-017-002#idm139794437412288 NOW BINDING ON IRS per RRA98)
Filing Notice of the Federal Tax Lien
The federal tax lien arises when
the Service meets the requirements of IRC 6321,
i.e., an assessment and a notice and demand for payment.
“RRA98” means the IRS Restructuring and Reform Act of 1998:
This Act rendered the IRM enforceable: IRS employees can
now be disciplined, or terminated, for violating the IRM.
See section 1203(b)(6) in the RRA98.
More IRM requirements for NFTL:
Part 5. Collecting Process
Chapter 12. Federal Tax Liens
Section 1. Lien Program Overview
Creation and Duration
1. A Federal Tax Lien is created by the statute IRC § 6321
which is why it is said to be created by operation of law.
It attaches to a taxpayer's current and future property and
rights to property for the amount of the liability.
This is the "statutory" lien. The following must occur for
the statutory lien to arise by operation of law:
A. An assessment must have been made.
B. Notice and demand for payment must have been made.
"A. An assessment must have been made."
“B. Notice and demand for payment must have been made.”
An amended NFTL document is required. The life of the NFTL is directly related to this date. The last day for refiling is computed within the ALS using the assessment date. If the assessment date is incorrect, the last day for refiling will be computed incorrectly. Amend the NFTL to correct the assessment date. If the NFTL self-releases, the self-release must be revoked. Revocation and filing a new NFTL is required to reestablish priority. Do not prepare a not to be filed NFTL. Do not issue a new CDP notice.
Here's the specific statute which requires
a prior assessment to have been made,
BEFORE a lien can be imposed under IRC 6321:
Here is the statute defining the method of assessment:
Here is the regulation governing "Method of assessment":
Here is the authority REQUIRING assessment
by the Secretary (i.e. Secretary of the Treasury
or his delegate):
"The Secretary is authorized and required to make the inquiries, determinations, and assessments of all taxes (including interest, additional amounts, additions to the tax, and assessable penalties) imposed by this title, or accruing under any former internal revenue law, which have not been duly paid by stamp at the time and in the manner provided by law."
NOTE: Secretary is authorized and REQUIRED to make ... assessments ....
Here is the key court case which held that all assessments
must be signed by an Assessment Officer:
IRM requirements for IRS Levies:
Before property can be levied, the taxpayer must be given a
· Notice and demand
· Notice of intent to levy, and
· Notice of a right to a Collection Due Process (CDP) hearing
2. The notice and demand required by IRC 6331(a) must be left at the taxpayer's home or business, or mailed to the taxpayer's last known address. This is normally taken care of by a master file notice mailed shortly after there is an assessment. This is commonly referred to as the first notice. The taxpayer has 10 days to pay the amount that is owed. If the taxpayer neglects or refuses to pay the amount due, a Federal tax lien arises.
/s/ Paul Andrew Mitchell, B.A., M.S.
Private Attorney General, Criminal Investigator and
Federal Witness: 18 U.S.C. 1510, 1512-13, 1964(a)
All Rights Reserved without Prejudice