§3401 — Definitions
98 cases·3 followed·4 distinguished·2 criticized·89 cited—3% support
Statute Text — 26 U.S.C. §3401
For purposes of this chapter, the term “wages” means all remuneration (other than fees paid to a public official) for services performed by an employee for his employer, including the cash value of all remuneration (including benefits) paid in any medium other than cash; except that such term shall not include remuneration paid—
for active service performed in a month for which such employee is entitled to the benefits of section 112 (relating to certain combat zone compensation of members of the Armed Forces of the United States) to the extent remuneration for such service is excludable from gross income under such section,
for agricultural labor (as defined in section 3121(g)) unless the remuneration paid for such labor is wages (as defined in section 3121(a)),
for domestic service in a private home, local college club, or local chapter of a college fraternity or sorority,
for service not in the course of the employer’s trade or business performed in any calendar quarter by an employee, unless the cash remuneration paid for such service is $50 or more and such service is performed by an individual who is regularly employed by such employer to perform such service. For purposes of this paragraph, an individual shall be deemed to be regularly employed by an employer during a calendar quarter only if—
on each of some 24 days during such quarter such individual performs for such employer for some portion of the day service not in the course of the employer’s trade or business, or
such individual was regularly employed (as determined under subparagraph (A)) by such employer in the performance of such service during the preceding calendar quarter,
for services by a citizen or resident of the United States for a foreign government or an international organization,
for such services, performed by a nonresident alien individual, as may be designated by regulations prescribed by the Secretary,
Repealed.
Pub. L. 89–809, title I, § 103(k)
,
Nov. 13, 1966
,
80 Stat. 1554
]
for services for an employer (other than the United States or any agency thereof)—
performed by a citizen of the United States if, at the time of the payment of such remuneration, it is reasonable to believe that such remuneration will be excluded from gross income under section 911, or
performed in a foreign country or in a possession of the United States by such a citizen if, at the time of the payment of such remuneration, the employer is required by the law of any foreign country or possession of the United States to withhold income tax upon such remuneration,
for services for an employer (other than the United States or any agency thereof) performed by a citizen of the United States within a possession of the United States (other than Puerto Rico), if it is reasonable to believe that at least 80 percent of the remuneration to be paid to the employee by such employer during the calendar year will be for such services,
for services for an employer (other than the United States or any agency thereof) performed by a citizen of the United States within Puerto Rico, if it is reasonable to believe that during the entire calendar year the employee will be a bona fide resident of Puerto Rico, or
for services for the United States (or any agency thereof) performed by a citizen of the United States within a possession of the United States to the extent the United States (or such agency) withholds taxes on such remuneration pursuant to an agreement with such possession,
for services performed by a duly ordained, commissioned, or licensed minister of a church in the exercise of his ministry or by a member of a religious order in the exercise of duties required by such order,
for services performed by an individual under the age of 18 in the delivery or distribution of newspapers or shopping news, not including delivery or distribution to any point for subsequent delivery or distribution, or
for services performed by an individual in, and at the time of, the sale of newspapers or magazines to ultimate consumers, under an arrangement under which the newspapers or magazines are to be sold by him at a fixed price, his compensation being based on the retention of the excess of such price over the amount at which the newspapers or magazines are charged to him, whether or not he is guaranteed a minimum amount of compensation for such services, or is entitled to be credited with the unsold newspapers or magazines turned back,
for services not in the course of the employer’s trade or business, to the extent paid in any medium other than cash,
to, or on behalf of, an employee or his beneficiary—
from or to a trust described in section 401(a) which is exempt from tax under section 501(a) at the time of such payment unless such payment is made to an employee of the trust as remuneration for services rendered as such employee and not as a beneficiary of the trust,
under or to an annuity plan which, at the time of such payment, is a plan described in section 403(a),
for a payment described in section 402(h)(1) and (2) if, at the time of such payment, it is reasonable to believe that the employee will be entitled to an exclusion under such section for payment,
under an arrangement to which section 408(p) applies, or
under or to an eligible deferred compensation plan which, at the time of such payment, is a plan described in section 457(b) which is maintained by an eligible employer described in section 457(e)(1)(A),
pursuant to any provision of law other than section 5(c) or 6(1) of the Peace Corps Act, for service performed as a volunteer or volunteer leader within the meaning of such Act,
in the form of group-term life insurance on the life of an employee,
to or on behalf of an employee if (and to the extent that) at the time of the payment of such remuneration it is reasonable to believe that a corresponding deduction is allowable under section 217 (determined without regard to section 274(n)),
as tips in any medium other than cash,
1
1 So in original. Probably should be followed by “or”.
as cash tips to an employee in any calendar month in the course of his employment by an employer unless the amount of such cash tips is $20 or more,
for service described in section 3121(b)(20),
for any payment made, or benefit furnished, to or for the benefit of an employee if at the time of such payment or such furnishing it is reasonable to believe that the employee will be able to exclude such payment or benefit from income under section 127, 129, 134(b)(4), or 134(b)(5),
for any benefit provided to or on behalf of an employee if at the time such benefit is provided it is reasonable to believe that the employee will be able to exclude such benefit from income under section 74(c), 108(f)(4), 117, or 132,
for any medical care reimbursement made to or for the benefit of an employee under a self-insured medical reimbursement plan (within the meaning of section 105(h)(6)),
for any payment made to or for the benefit of an employee if at the time of such payment it is reasonable to believe that the employee will be able to exclude such payment from income under section 106(b),
any payment made to or for the benefit of an employee if at the time of such payment it is reasonable to believe that the employee will be able to exclude such payment from income under section 106(d), or
for any benefit or payment which is excludable from the gross income of the employee under section 139B(b).
The term “wages” includes any amount includible in gross income of an employee under section 409A and payment of such amount shall be treated as having been made in the taxable year in which the amount is so includible.
For purposes of this chapter, the term “payroll period” means a period for which a payment of wages is ordinarily made to the employee by his employer, and the term “miscellaneous payroll period” means a payroll period other than a daily, weekly, biweekly, semimonthly, monthly, quarterly, semiannual, or annual payroll period.
For purposes of this chapter, the term “employee” includes an officer, employee, or elected official of the United States, a State, or any political subdivision thereof, or the District of Columbia, or any agency or instrumentality of any one or more of the foregoing. The term “employee” also includes an officer of a corporation.
For purposes of this chapter, the term “employer” means the person for whom an individual performs or performed any service, of whatever nature, as the employee of such person, except that—
if the person for whom the individual performs or performed the services does not have control of the payment of the wages for such services, the term “employer” (except for purposes of subsection (a)) means the person having control of the payment of such wages, and
in the case of a person paying wages on behalf of a nonresident alien individual, foreign partnership, or foreign corporation, not engaged in trade or business within the United States, the term “employer” (except for purposes of subsection (a)) means such person.
For purposes of subsection (a), the term “wages” includes tips received by an employee in the course of his employment. Such wages shall be deemed to be paid at the time a written statement including such tips is furnished to the employer pursuant to section 6053(a) or (if no statement including such tips is so furnished) at the time received.
Rules similar to the rules of section 3121(o) shall apply for purposes of this chapter.
For purposes of subsection (a), any differential wage payment shall be treated as a payment of wages by the employer to the employee.
For purposes of paragraph (1), the term “differential wage payment” means any payment which—
is made by an employer to an individual with respect to any period during which the individual is performing service in the uniformed services (as defined in chapter 43 of title 38, United States Code) while on active duty for a period of more than 30 days, and
represents all or a portion of the wages the individual would have received from the employer if the individual were performing service for the employer.
For purposes of subsection (a), qualified stock (as defined in section 83(i)) with respect to which an election is made under section 83(i) shall be treated as wages—
received on the earliest date described in section 83(i)(1)(B), and
in an amount equal to the amount included in income under section 83 for the taxable year which includes such date.
Treasury Regulations
- Treas. Reg. §Treas. Reg. §31.3401(a)(1)-1 Remuneration of members of the Armed Forces of the United States for active service in combat zone or while hospitalized as a result of such service
- Treas. Reg. §Treas. Reg. §31.3401(a)(10)-1 Remuneration for services in delivery or distribution of newspapers, shopping news, or magazines
- Treas. Reg. §Treas. Reg. §31.3401(a)(10)-1(a) Services of individuals under age 18.
- Treas. Reg. §Treas. Reg. §31.3401(a)(10)-1(b) Services of individuals of any age.
- Treas. Reg. §Treas. Reg. §31.3401(a)(11)-1 Remuneration other than in cash for service not in the course of employer's trade or business
- Treas. Reg. §Treas. Reg. §31.3401(a)(11)-1(a) Remuneration paid in any medium other than cash for services not in the course of the employer's trade or business is excepted from wages and hence is not subject to withholding.
- Treas. Reg. §Treas. Reg. §31.3401(a)(11)-1(b) As used in this section, the term “services not in the course of the employer's trade or business” has the same meaning as when used in § 31.
- Treas. Reg. §Treas. Reg. §31.3401(a)(12)-1 Payments from or to certain tax-exempt trusts, or under or to certain annuity plans or bond purchase plans, or to individual retirement plans
- Treas. Reg. §Treas. Reg. §31.3401(a)(12)-1(a) Payments from or to certain taxexempt trusts.
- Treas. Reg. §Treas. Reg. §31.3401(a)(12)-1(b) Payments under or to certain annuity plans.
- Treas. Reg. §Treas. Reg. §31.3401(a)(12)-1(c) Payments under or to certain bond purchase plans.
- Treas. Reg. §Treas. Reg. §31.3401(a)(12)-1(d) Payment to individual retirement plans.
- Treas. Reg. §Treas. Reg. §31.3401(a)(12)-1(i) §31.3401(a)(12)-1(i)
- Treas. Reg. §Treas. Reg. §31.3401(a)(13)-1 Remuneration for services performed by Peace Corps volunteers
- Treas. Reg. §Treas. Reg. §31.3401(a)(13)-1(a) Remuneration paid after September 22, 1961, for services performed as a volunteer or volunteer leader within the meaning of the Peace Corps Act (22 U.
- Treas. Reg. §Treas. Reg. §31.3401(a)(13)-1(b) Sections 5 and 6 of the Peace Corps Act (22 U.
- Treas. Reg. §Treas. Reg. §31.3401(a)(13)-1(c) Readjustment allowances.
- Treas. Reg. §Treas. Reg. §31.3401(a)(14)-1 Group-term life insurance
- Treas. Reg. §Treas. Reg. §31.3401(a)(14)-1(a) The cost of group-term life insurance on the life of an employee is excepted from wages, and hence is not subject to withholding.
- Treas. Reg. §Treas. Reg. §31.3401(a)(14)-1(b) The cost of group-term life insurance on the life of an employee's spouse or children is not subject to withholding if it is excludable from the employee's gross income because it is merely incidental.
- Treas. Reg. §Treas. Reg. §31.3401(a)(15)-1 Moving expenses
- Treas. Reg. §Treas. Reg. §31.3401(a)(15)-1(a) An amount paid to or on behalf of an employee after March 4, 1964, either as an advance or a reimbusement, specifically for moving expenses incurred or expected to be incurred is excepted from wages, and hence is not subject to withholding, if (and to the extent that) at the time of payment it is reasonable to believe that a corresponding deduction is or will be allowable to the employee under section 217.
- Treas. Reg. §Treas. Reg. §31.3401(a)(15)-1(b) Except as otherwise provided in paragraph (a) of this section, or in a numbered paragraph of section 3401(a), amounts paid to or on behalf of an employee for moving expenses constitute wages subject to withholding.
- Treas. Reg. §Treas. Reg. §31.3401(a)(16)-1 Tips
- Treas. Reg. §Treas. Reg. §31.3401(a)(16)-1(a) §31.3401(a)(16)-1(a)
98 Citing Cases
3401(d), 112 Stat. 750. Thus, if a collection action is initiated before January 19, 1999, section 6330 is inapplicable and this Court has no jurisdiction to review the propriety of the collection action.
We disagree with respondent’s claim that we lack jurisdiction as to the proposed levy determination.
We hold that United may deduct the per diem allowances under section 162(a)(1) as personal service compensation.
states that because sections 51, 1396, and 1397 do not define “employer” for purposes of claiming the WOTC and the EZEC, “courts may look to a definition provided in a related statute dealing with similar subject matter.” Barrett argues that because section 3401 “addresses tax payment obligations arising from the payment of wages” and sections 51, 1396, and 1397 “address tax credits arising from the payment of wages,” statutory interpretation “supports interpreting the term ‘employer’ as used in
Section 3401 defines wages in similar terms. We hold that United may deduct the per diem allowances under section 162(a)(1) as personal service compensation. Accordingly, Decision will be entered under Rule 155. Reviewed by the Court. Wells, Chabot, Gerber, Ruwe, Halpern, Foley, Vasquez, and Gale, JJ., agree with this majority opinion. Whalen, J.,
ue. 9 We have not been asked (and we decline to address) whether Ms. Ryckman could pursue collection alternatives directly with the CRA. 10 The CDP statutes were added to the Code by the IRS Restructuring and Reform Act of 1998, Pub. L. No. 105-206, § 3401, 112 Stat. 685, 746–50, and would clearly be controlling under the last-in-time rule if the Treaty and the CDP statutes could not be harmonized. For the reasons set forth in this Opinion, we see no reason to resort to that rule. Furthermore, t
IRS to make the reasonable cause determination is misplaced. The section 6038(b)(1) penalty was added to the Code in 1982 and the collection due process regime was added in 1998 by the IRS Restructuring and Reform Act of 1998, Pub. L. No. 105-206, § 3401, 112 Stat. 685, 746–50. The reasonable cause exception far predates either of these provisions, dating back to the 1960 enactment of section 6038. See Pub. L. No. 86-780, § 6(a), 74 Stat. 1010, 1015 (1960). When drafting the reasonable cause te
685, 746. In creating this new right, Congress also enabled taxpayers to challenge the underlying liability, but only if they “did not otherwise have an opportunity to dispute such tax liability.” § 6330(c)(2)(B). Having received a notice of deficiency, the taxpayer who files an untimely petition cannot later challenge the liabili
3 [*3] Taxable Year FUTA Additions to Tax Ending I.R.C. § 6651(a)(1) I.R.C. § 6651(a)(2) 2010 $805 $181 $201 2011 1,736 391 434 2012 1,260 283 315 2013 1,508 339 377 2014 1,496 337 374 2015 1,532 345 383 Trial of this matter was held on December 13, 2022, during the Court’s Las Vegas, Nevada, trial session. Following trial, the issues
evy must be suspended until the conclusion of a CDP hearing and any judicial review of Appeals’ determination. § 6330(e). B. Legislative History The CDP regime was enacted as part of the IRS Restructuring and Reform Act of 1998, Pub. L. No. 105-206, § 3401, 112 Stat. 685, 746, to establish “formal procedures designed to insure due process where the IRS seeks to collect taxes.” H.R. Rep. No. 105-599, at 263 (1998) (Conf. Rep.), as reprinted in 1998-3 C.B. 747, 1017. The CDP regime is “designed to
udes the Commonwealth of Puerto Rico, the Virgin Islands, Guam, and America Samoa.” The Kelleys imply that because they did not work for a government entity, and because they did not perform their work in one of the listed American territories, the payments from Sanchez Oil & Gas and Core Labs did not fall under the definition of “wages” in either section 3401 or section 3121.
ifically noted otherwise, the term “federal employment taxes” refers to the taxes imposed under the Federal Insurance Contributions Act (FICA), §§ 3101–3128, the Federal Unemployment Tax Act (FUTA), §§ 3301–3311, and federal income tax withholding, §§ 3401–3406. 3 Respondent conceded that the following individuals, who were included in the notice of determination, were not employees of petitioner for any period of petitioner’s 2017 tax year: Chinwe A., Esosa A., Osamuyimen A., Jennifer J., Olusw
t, we need to sketch a bit of background for our expanded jurisdiction in CDP and stand-alone innocent-spouse cases. RRA 1998 created CDP procedures to enable taxpayers to challenge how the Commissioner collected taxes that he assessed. See RRA 1998 § 3401, 112 Stat. at 746 (codified as amended at §§ 6320, 6330). This new CDP right made for a major change in the way the IRS used two of its most important collection tools—liens and levies. Once a taxpayer’s liability has been assessed, the amount
4852 asks the taxpayer to explain how she determined the amounts shown on line 7. Petitioner wrote in part as follows: “The ‘wages’ listed on the Form W-2, provided by the university, do not comply with the definition for ‘wages’ according to IRC §§ 3401 and 3121. However, all of the withholding amounts, listed on the Form W-2 by the university are correct.” - 4 - [*4] On January 8, 2020, the IRS issued petitioner a timely notice of deficiency determining a deficiency of $5,326. The IRS adjuste
anuary 6, 2014 and May 20, 2015, and during our conference on June 3, Reflectxion maintains that the statute oflimitations expired for 2007-2008, because the returns filed by Gevity were filed on Reflectxion's behalf, there was no Schedule F filing requirement for those years, and the IRS did not request a statute extension from either Gevity (the section 3401(d(l) employer, under Eleventh Circuit law) or Reflectxion.
* * * * * * * I will reference Section 3401 ofthe Internal Revenue Code.
tion ofa deficiency and makes no mention ofa petition that is filed under section 6320(c) to review a collection action. Section 6320 was added to the Code as part ofthe Internal Revenue Service Restructuring and Reform Act of 1998, Pub. L. 105-206, sec. 3401, 112 Stat. 685, 746, and that act made no amendment to section 7459(d) * * * . Nor do we know ofany provision in the Code that would require us, upon dismissal ofa collection action filed under section 6320(c), to enter a decision for the C
It appears in section 3401, which supplies defi- nitions for purposes ofwithholding income tax from wages, and in section 3121, which supplies definitions for purposes ofwithholding FICA tax from wages.
Section 6320 further provides that the person may request administrative review ofthe matter (in the form ofan Appeals Office hearing) within 30 days beginning on the day after the 5-dayperiod.
"based on a position which the Secretary has identified as frivolous." -5- [*5] On September 14, 2011, petitioner replied by reiterating his position that he is exempt from taxation because, as a 3rivate sector worker, he is not an "employee" under section 3401 and therefore cannot receive "wages." He again demanded a refund ofwithheld taxes and attached copies ofthe purported "tax returns" that the IRS had already determined to be frivolous.
. 6330(c)(2)(A).8 In 7 In 1998, Congress enacted section 6330 to give taxpayers this opportunity to seek additional protections from unreasonable tax collection. See Internal Revenue Service Restructuring and Reform Act of 1998, Pub. L. No. 105-206, sec. 3401, 112 Stat. at 746; Davis v. Commissioner, 115 T.C. 35, 37 (2000). 8 Section 6330(c)(2)(B) also says that a taxpayermay challenge the underlying liability ifhe has not received a notice ofdeficiency, and we do review such a challenge de novo
s way were also possibly invalid as a product of duress, or otherwise unenforceable on equitable grounds." It came as no surprise, then, when on June 5, 1998, the IRS publicly apologized and said that it had implemented a recovery " In the RRA 1998, sec. 3401, 3433, 3461 and 3467, 112 Stat. 750, 959-60, 764, 769-70, Congress amended sections 6159, 6331, 6502, 7443, etc., to make sure that the IRS stopped these offensive practices, as well as some others. " See, e.g., Fredericks v. Commissioner,
” a tax liability in the context of section 6330(c)(2)(B). See Perkins v. Commissioner, 129 T.C. 58 (2007); Lewis v. Commissioner, 128 T.C. 48 (2007). Neither the Internal Revenue Service Restructuring and Reform Act of 1998 (RRA), Pub. L. 105-206, sec. 3401, 112 Stat. 746, nor the Internal Revenue Code defines what Congress intended by the phrase “otherwise have an opportunity to dispute” a tax liability. The Commissioner has defined this phrase to some extent by promulgating a regulation indic
under § 6673 for the Petitioner's continued pursuit of frivolous and groundless arguments . Specifically, in this case, the only issue he raised in his petition was that he was not an employee and did not have wages pursuant to Internal Revenue Code § 3401 . Therefore, he had no income tax liability. The Court had previously sanctioned the Petitioner, Mr . Custer, in Docket No . 21335-05 when the Court granted Respondent's motion for summary judgment . They [sic] sanctioned Mr . Custer $5,000 un
he Appeals officer must obtain verification from the Secretary that the requirements of any applicable law or administrative 3 Sec. 6330 was enacted under the Internal Revenue Service Restructuring and Reform Act of 1998 (RRA 1998), Pub. L. 105-206, sec. 3401, 112 Stat. 746, and is effective with respect to collection actions initiated more than 180 days after July 22, 1998, RRA 1998 sec. 3401(d), 112 Stat. 750. - 9 - procedure have been met. Sec. 6330(c)(1). Second, the taxpayer may raise any i
Section 3401 of that Act, 112 Stat . 746, grants this Court jurisdiction to review the Commissioner's determination as to the propriety of filing a notice of Federal tax lien under section 6320 or a proposed levy on property under section 6330 . In a collection review action, this Court's jurisdiction under sections 6320 and 6330 depends, in part,
RRA 1998 section 3401, 112 Stat .
Section 6330 originated in section 3401 of the Senate version of H .R .
Section 6322 provides that such a lien arises when an assessment is made.
etitioner and her representative of the effect of sections 6320 and 6330. Sections 6320 (pertaining to liens) and 6330 (pertaining to levies) were enacted as part of the Internal Revenue Service Restructuring and Reform Act of 1998, Pub. L. 105-206, sec. 3401, 112 Stat. 746, to provide new procedural protections for taxpayers in collection matters. Section 6330 generally provides that the Commissioner may not - 7 - proceed with collection of taxes by way of a levy on a taxpayer’s property until
Time To File U.S. Individual Income Tax Return regarding his 1993 Federal Individual Income Tax Return. Petitioner also 1Sec. 6330 was enacted as part of the Internal Revenue Service Restructuring and Reform Act of 1998 (RRA 1998), Pub. L. 105-206, sec. 3401, 112 Stat. 746. Sec. 6330 is effective with respect to collection actions initiated more than 180 days after July 22, 1998; i.e., after Jan. 18, 1999. See RRA 1998 sec. 3401(d), 112 Stat. 750. - 3 - submitted a payment of $3,000. On August
cts of creating a cloud on the taxpayer’s title to property and impairing the taxpayer’s creditworthiness. See, e.g., Magana v. Commissioner, 118 T.C. 488 (2002). In the Internal Revenue Service Restructuring and Reform Act of 1998, Pub. L. 105-206, sec. 3401, 112 Stat. 746, Congress enacted new sections 6320 (pertaining to liens) and 6330 (pertaining to levies) to provide specified protections for taxpayers in tax collection matters. Section 6320 provides that the Secretary shall furnish the pe
etitioner and his representative of the effect of sections 6320 and 6330. Sections 6320 (pertaining to liens) and 6330 (pertaining to levies) were enacted as part of the Internal Revenue Service Restructuring and Reform Act of 1998, Pub. L. 105-206, sec. 3401, 112 Stat. 746, to provide new procedural protections for taxpayers in collection matters. Section 6330 generally provides that the Commissioner may not proceed with a collection of taxes by way of a levy on a taxpayer’s property until the
ourt for review of the Appeals officer’s determination. Discussion Sections 6320 (pertaining to liens) and 6330 (pertaining to levies) were enacted as part of the Internal Revenue Service - 5 - Restructuring and Reform Act of 1998, Pub. L. 105-206, sec. 3401, 112 Stat. 746, in order to afford taxpayers new procedural protections with regard to collection matters. Section 6320 generally provides that the Secretary cannot proceed with collection of taxes by way of a lien on a taxpayer’s property u
deficiency. The notices of deficiency were properly mailed on December 12, 1996, to petitioner’s last known address, which, at the time, 8(...continued) review them. See Internal Revenue Service Restructuring and Reform Act of 1998, Pub. L. 105-206, sec. 3401, 112 Stat. 746 (which created new sec. 6330 and provided for an effective date of 180 days after July 22, 1998); see also Van Es v. Commissioner, 115 T.C. 324, 327-328 (2000). - 18 - was the Elm Street address. There is no record evidence p
ers’ claim. Respondent filed the notices of Federal tax lien on August 27, 1992, and March 10, 1997. Section 6320 applies to collection actions initiated after January 19, 1999. Internal Revenue Restructuring & Reform Act of 1998, Pub. L. 105- 206, sec. 3401, 112 Stat. 746; Hurford v. Commissioner, T.C. Memo. 2002-94; see Parker v. Commissioner, 117 T.C. 63, 66 (2001) (liens and levies are separate collection actions for purposes of sections 6320 and 6330). Because the notices of Federal tax lie
titioner and Mr. Pierce worked at the Department of Defense (DOD). At the time their 1994 Federal income tax return was 1 Sec. 6330 was enacted as part of the Internal Revenue Service Restructuring and Reform Act of 1998 (RRA 1998), Pub. L. 105-206, sec. 3401, 112 Stat. 746. Sec. 6330 is effective with respect to collection actions initiated more than 180 days after July 22, 1998; i.e., after Jan. 18, 1999. See RRA 1998 sec. 3401(d), 112 Stat. 750. 2 Sec. 6015 was enacted as part of the RRA 1998
ther assets, an installment agreement or an offer-in-compromise. [S. Rept. 105-174, at 68 (1998), 1998-3 C.B. 537, 604.] - 30 - FOLEY, J., dissenting: In the Internal Revenue Service Restructuring and Reform Act of 1998 (RRA 1998), Pub. L. 105-206, sec. 3401, 112 Stat. 746, Congress enacted sections 6320 and 6330 to provide safeguards for persons subject to collection actions. Sections 6320 and 6330 generally provide that respondent cannot proceed with collection until the taxpayer has been give
is obliged to provide the person with a final notice of - 5 - intent to levy, including notice of the administrative appeals available to the person. In the Internal Revenue Service Restructuring and Reform Act of 1998 (RRA 1998), Pub. L. 105-206, sec. 3401, 112 Stat. 685, 746, Congress enacted new sections 6320 (pertaining to liens) and 6330 (pertaining to levies) to provide protections for persons subject to collection actions. Sections 6320 and 6330 generally provide that the Commissioner ca
des that the IRS may file a notice of Federal tax lien in order to establish the priority of its claims against the taxpayer’s other creditors. - 14 - In the Internal Revenue Service Restructuring and Reform Act of 1998 (RRA 1998), Pub. L. 105-206, sec. 3401, 112 Stat. 746, Congress enacted sections 6320 (pertaining to liens) and 6330 (pertaining to levies) to provide protections for taxpayers in tax collection matters. Section 6320 requires that the Secretary notify a person who has failed to p
deficiency and makes no mention of a petition that is filed under section 6320(c) to review a -5- collection action. Section 6320 was added to the Code as part of the Internal Revenue Service Restructuring and Reform Act of 1998, Pub. L. 105-206, sec. 3401, 112 Stat. 685, 746, and that act made no amendment to section 7459(d), which finds its roots in section 906(c) of the Revenue Act of 1926, ch. 27, 44 Stat. 107. Nor do we know of any provision in the Code that would require us, upon a dismis
80 (1998). - 4 - Section 6330 was enacted in 1998 to permit taxpayers to obtain administrative and judicial review of collection actions by the Commissioner. Internal Revenue Service Restructuring and Reform Act of 1998 (RRA 1998), Pub. L. 105-206, sec. 3401, 112 Stat. 685, 746; H. Conf. Rept. 105-599, at 265-266 (1998), 1998-3 C.B. 755, 1019-1020. Section 6330(a)(1) requires the Secretary to notify the taxpayer of the right to a hearing before the Secretary levies on any property. Section 6330(
ing with collection by levy on the taxpayer's property, including notice of the administrative appeals available to the taxpayer. Sec. 6331(d). As part of the Internal Revenue Service Restructuring and Reform Act of 1998 (RRA 1998), Pub. L. 105-206, sec. 3401, 112 Stat. 685, 746, Congress enacted section 6330, which generally provides that the Commissioner may not proceed with collection by levy on a taxpayer's property until the taxpayer has received notice of and the opportunity for an Appeals
rty, the Secretary is obliged to provide the person with a final notice of intent to levy, including notice of the administrative appeals available to the person. In the Internal Revenue Service Restructuring and Reform Act of 1998, Pub. L. 105-206, sec. 3401, 112 Stat. 685, 746, Congress enacted new sections 6320 (pertaining to liens) and 6330 (pertaining to levies) to provide protections for taxpayers in tax collection matters. Sections 6320 and 6330 generally provide that the Commissioner can
the taxpayers on brief deemed conceded) affd. without published opinion 867 F.2d 609 (4th Cir. 1989). - 6 - involving the imposition of a levy on a taxpayer's property. Internal Revenue Service Restructuring and Reform Act of 1998, Pub. L. 105-206, sec. 3401, 112 Stat. 685, 746. Section 6330 generally provides that the Secretary cannot proceed with the collection of taxes by way of a levy until the taxpayer has been given notice and an opportunity for administrative review of the matter (in the
e determination. See Davis v. Commissioner, 115 T.C. 35, 37 - 7 - (2000); Goza v. Commissioner, 114 T.C. 176, 179 (2000). Section 6330 was enacted under the Internal Revenue Service Restructuring and Reform Act of 1998 (RRA 1998), Pub. L. 105- 206, sec. 3401, 112 Stat. 685, 746, and is effective with respect to collection actions initiated more than 180 days after July 22, 1998, i.e., January 19, 1999. See RRA 1998 sec. 3401(d), 112 Stat. 750. Section 6330(c) prescribes the matters a person may
xpayer has been given notice and an opportunity for administra- tive review of the matter in the form of an Appeals Office hearing, was enacted as part of the Internal Revenue Service Restructuring and Reform Act of 1998 (RRA 1998), Pub. L. 105-206, sec. 3401, 112 Stat. 685, 746. Sec. 6330 is effective with respect to collection actions initiated more than 180 days after July 22, 1998, i.e., after Jan. 18, 1999. See RRA 1998 sec. 3401(d), 112 Stat. 750. Sec. 6330 did not require respondent to of
earing and filed their petition in this case solely to dispute the correctness of their underlying tax liabilities. The 2 Secs. 6320 and 6330 were enacted as part of the Internal Revenue Service Restructuring and Reform Act of 1998, Pub. L. 105-206, sec. 3401, 112 Stat. 685, 746. - 6 - fact that section 6330 now provides an opportunity to contest tax liability for taxpayers who did not receive a notice of deficiency, sec. 6330(c)(2)(1B), provides no consolation to petitioners who themselves made
y. In 1998, Congress enacted section 6330 to provide protections for taxpayers in tax collection matters involving the imposition of a levy on a taxpayer's property. See Internal Revenue Service Restructuring and Reform Act of 1998, Pub. L. 105-206, sec. 3401, 112 Stat. 685, 746. Section 6330 generally provides that the Secretary cannot proceed with the collection of taxes by way of a levy until the taxpayer has been given notice and an opportunity for administrative review of the matter (in the
to establish “formal procedures designed to insure due process where the IRS seeks to collect taxes by levy”. S. Rept. 105-174, at 67 (1998), 1998-3 C.B. 537, 603. The Internal Revenue Service Restructuring and Reform Act of 1998, Pub. L. 105-206, sec. 3401, 112 Stat. 746, of which section 6330 was a part, fortified taxpayer’s rights mainly by the addition of new taxpayer rights. Its enactment followed a year of Congressional investigations and hearings over the future of the IRS, resulting in h
Discussion Section 6331(a) provides that, if any person liable to pay any tax neglects or refuses to pay such tax within 10 days after notice and demand for payment, the Secretary is authorized to collect such tax by way of a levy upon the person’s property.
Section 6320(a) provides that the Secretary shall provide the person described in section 6321 with written notice of the filing of a notice of lien under section 6323, including notice of the administrative appeals available to the person.
Discussion Section 6331(a) provides that if any person liable to pay any tax neglects or refuses to pay such tax within 10 days after notice and demand for payment, the Secretary is authorized to collect such tax by way of a levy upon the person’s property.
lder of a security interest, mechanic’s lienor, or judgment lien creditor. Section 6320 was added to the Code in 1998, along with its sister provision, section 6330. See Internal Revenue Service Restructuring and Reform Act of 1998, Pub. L. 105-206, sec. 3401, 112 Stat. 746. Section 6320(a) requires the Secretary to send a written notice to the taxpayer of the filing of a notice of lien - 4 - and of his right to a hearing.3 Section 6320(b) affords the taxpayer the right to a fair hearing before
aring challenges to the existence or amount of the underlying tax liability for any tax period if the person did not receive any statutory 2 Sec. 6330 was enacted by the Internal Revenue Service Restructuring and Reform Act of 1998, Pub. L. 105-206, sec. 3401, 112 Stat. 746. - 4 - notice of deficiency for such tax liability or did not otherwise have an opportunity to dispute such tax liability. The determination of the Appeals officer may be reviewed judicially if the taxpayer files a timely pet
itioner denied the existence of various entities including the United States of America, the United States Tax Court, and the Internal Revenue Service. Discussion In the Internal Revenue Service Restructuring and Reform Act of 1998, Pub. L. 105-206, sec. 3401, 112 Stat. 685, 746, Congress enacted new sections 6320 (pertaining to liens) and 6330 (pertaining to levies) to provide protections for taxpayers in tax collection matters. Section 6330 generally provides that the - 5 - Commissioner cannot
vide the person with notice before proceeding with collection by levy - 12 - on the person's property, including notice of the available administrative appeals. In the Internal Revenue Service Restructuring and Reform Act of 1998, Pub. L. 105-206, sec. 3401, 112 Stat. 685, 746, Congress enacted new sections 6320 (pertaining to liens) and 6330 (pertaining to levies) to provide protections for taxpayers in tax collection matters. These provisions generally provide that the Commissioner cannot proc
ct the Appeals hearing. Section 6320(c) incorporates section 6330(c) and certain parts of section 6330(d), which describe the procedural rules that apply to the 8 In the Internal Revenue Service Restructuring and Reform Act of 1998, Pub. L. 105-206, sec. 3401, 112 Stat. 685, 746-750, Congress enacted secs. 6320 (pertaining to liens) and 6330 (pertaining to levies) to provide new protections for taxpayers with regard to collection matters. - 9 - Appeals hearing and the judicial review thereof.9 A
in 10 days after notice and demand for payment, the Secretary is authorized to collect such tax by levy upon property belonging to the taxpayer. In the Internal Revenue Service Restructuring and Reform Act of - 6 - 1998 (RRA 1998), Pub. L. 105-206, sec. 3401, 112 Stat. 685, 746, Congress enacted new sections 6320 (pertaining to liens)3 and 6330 (pertaining to levies) to provide what have been described as “due process” protections for taxpayers in tax collection matters.4 Section 6330 generally
notice before proceeding with collection by levy on the taxpayer's property, including notice of the administrative appeals available to the taxpayer. In the Internal Revenue Service Restructuring and Reform Act of 1998 (RRA 1998), Pub. L. 105-206, sec. 3401, 112 Stat. 685, 746, Congress enacted new sections 6320 (pertaining to liens) and 6330 (pertaining to levies) to provide due process protections for taxpayers in tax collection matters. Section 6330 generally provides that the Commissioner
notice, including notice of the administrative appeals available to the taxpayer, before proceeding with collection by levy on the taxpayer's property. In the Internal Revenue Service Restructuring and Reform Act of 1998 (RRA 1998), Pub. L. 105-206, sec. 3401, 112 Stat. 685, 746, Congress enacted new sections 6320 (pertaining to liens) and 6330 (pertaining to levies) to provide due process protections for taxpayers in tax collection matters. Section 6330 generally - 7 - provides that the Commiss
notice, including notice of the administrative appeals available to the taxpayer, before proceeding with collection by levy on the taxpayer's property. In the Internal Revenue Service Restructuring and Reform Act of 1998 (RRA 1998), Pub. L. 105-206, sec. 3401, 112 Stat. 685, - 6 - 746, Congress enacted new sections 6320 (pertaining to liens) and 6330 (pertaining to levies) to provide due process protections for taxpayers in tax collection matters. Sections 6320 and 6330 are effective with respec
ence and arguments in this regard, however, do not undermine the testimony of the witness as corroborated by the physical exhibits in this case. - 8 - In the Internal Revenue Service Restructuring and Reform Act of 1998 (RRA 1998), Pub. L. 105-206, sec. 3401, 112 Stat. 685, 746, Congress enacted new sections 6320 (pertaining to liens) and 6330 (pertaining to levies) to provide due process protections for taxpayers in tax collection matters. Section 6330 generally provides that the Commissioner c
s return penalties and related interest amounts. Held, P is not entitled to the protections of sec. 6330, I.R.C., for amounts collected before the effective date of the Internal Revenue Service Restructuring and Reform Act of 1998, Pub. L. 105-206, sec. 3401, 112 Stat. 685, 746-750. - 2 - Held, further, the Court lacks jurisdiction to review the Appeals officer’s determination that the levy with regard to the uncollected frivolous return penalties and related interest should proceed. See Moore v
notice, including notice of the administrative appeals available to the taxpayer, before proceeding with collection by levy on the taxpayer's property. In the Internal Revenue Service Restructuring and Reform Act of 1998 (RRA 1998), Pub. L. 105-206, sec. 3401, 112 Stat. 685, 746, Congress enacted new sections 6320 (pertaining to liens) and 6330 (pertaining to levies) to provide due process protections for taxpayers in tax collection matters. Sections 6320 and 6330 are effective with respect to c
luding notice of the administrative appeals available to the taxpayer, before proceeding with collection by levy on the taxpayer’s property. As enacted in the Internal Revenue Service Restructuring and Reform Act of 1998 (RRA 1998), Pub. L. 105-206, sec. 3401, 112 Stat. 685, 746, sections 6320 (pertaining to liens) and 6330 (pertaining to levies) provide protections for taxpayers in tax collection matters. Sections 6320 and 6330 are effective with regard to collection actions commenced on or aft
payer with notice before proceeding with collection by levy on the taxpayer's property, including notice of the administrative appeals available to the taxpayer. In the Internal Revenue Service Restructuring and Reform Act of 1998, Pub. L. 105-206, sec. 3401, 112 Stat. 685, 746, Congress enacted new sections 6320 (pertaining to liens) and 6330 (pertaining to levies) to provide protections for taxpayers in tax collection matters. Section 6330 generally provides that the Commissioner cannot procee
payer with notice before proceeding with collection by levy on the taxpayer's property, including notice of the administrative appeals available to the taxpayer. In the Internal Revenue Service Restructuring and Reform Act of 1998, Pub. L. 105-206, sec. 3401, 112 Stat. 685, 746, Congress enacted new sections 6320 (pertaining to liens) and 6330 (pertaining to levies) to provide protections for taxpayers in tax collection matters. Section 6330 generally provides that the Commissioner cannot procee
ding notice of the administrative appeals available to the taxpayer, before proceeding with collection by levy on the taxpayer’s property. As enacted in the Internal Revenue Service Restructuring and Reform Act of 1998 (RRA 1998), Pub. L. 105-206, sec. 3401, 112 Stat. 685, 746, sections 6320 (pertaining to liens) and 6330 (pertaining to levies) provide protections for taxpayers in tax collection matters. Sections 6320 and 6330 are effective with regard to collection actions commenced on or after
ding notice of the administrative appeals available to the taxpayer, before proceeding with collection by levy on the taxpayer’s property. As enacted in the Internal Revenue Service Restructuring and Reform Act of 1998 (RRA 1998), Pub. L. 105-206, sec. 3401, 112 Stat. 685, 746, sections 6320 (pertaining to liens) and 6330 (pertaining to levies) provide protections for taxpayers in tax collection matters. Sections 6320 and 6330 are effective with regard to collection actions commenced on or after
ding notice of the administrative appeals available to the taxpayer, before proceeding with collection by levy on the taxpayer’s property. As enacted in the Internal Revenue Service Restructuring and Reform Act of 1998 (RRA 1998), Pub. L. 105-206, sec. 3401, 112 Stat. 685, 746, sections 6320 (pertaining to liens) and 6330 (pertaining to levies) provide protections for taxpayers in tax collection matters. Sections 6320 and 6330 are effective with regard to collection actions commenced on or after
529 (1985). These cases are before the Court pursuant to the collection review procedures set forth in section 6330.3 Before 3 Sec. 6330 was enacted under the Internal Revenue Service Restructuring and Reform Act of 1998 (RRA 1998), Pub. L. 105-206, sec. 3401, 112 Stat. 685, 746, and is effective with respect to collection actions initiated more than 180 days after July 22, 1998; i.e., Jan. 19, 1999. See RRA 1998 Pub. L. 105-206, sec. 3401(d), 112 Stat. 750. - 6 - proceeding with our analysis, w