§7401 — Authorization
32 cases·4 followed·4 distinguished·1 overruled·23 cited—12% support
Statute Text — 26 U.S.C. §7401
No civil action for the collection or recovery of taxes, or of any fine, penalty, or forfeiture, shall be commenced unless the Secretary authorizes or sanctions the proceedings and the Attorney General or his delegate directs that the action be commenced.
Treasury Regulations
- Treas. Reg. §Treas. Reg. §301.7401-1 Authorization
- Treas. Reg. §Treas. Reg. §301.7401-1(a) In general.
- Treas. Reg. §Treas. Reg. §301.7401-1(b) Property held by banks.
32 Citing Cases
Therein petitioner (1) claimed that he was denied a hearing on account of the inability to record, - 6 - (2) referenced the section 7401 authorization requirement for civil actions, and (3) demanded “his hearing and sanctions against agent(s).” On August 10, 2004, respondent filed a motion for summary judgment pursuant to Rule 121.
mitted to record a hearing; petitioners were denied the opportunity to raise issues they deemed "relevant" (e.g., the "existence" of the underlying tax liability); and requested documentation had not been produced (e.g., record of the assessments, statutory notice - 8 - and demand for payment, any "valid notice of deficiency", authorization under section 7401 from the Secretary for the instant collection actions, and verification from the Secretary that all applicable requirements were met).
im for 2000, (ii) that respondent failed to provide the requested documents or verification that the requirements of any applicable law or administrative procedure had been met, (iii) that the collection action had not been authorized as required by section 7401, and (iv) that the notice of petitioner's right to a hearing under section 6330 was invalid because it was not issued by the Secretary, as required by section 6330(a)(1), or the Secretary's duly authorized delegate, as provided in sectio
At the 4 Section 7401 empowers the Secretary of the Treasury and her delegates to authorize “the collection or recovery of taxes, or of any fine, penalty, or forfeiture.” On the basis of this authority, the Commissioner referred the recovery action against the LaRosas to the DOJ so that it could bring suit in federal court.
See § 7401 (providing that no civil action for the collection or recovery of “taxes, or of any fine, penalty, or forfeiture,” shall be commenced unless the Secretary of the Treasury authorizes or sanctions the proceedings and the Attorney General or his delegate directs that the action be commenced). 11 indication that this list is necessarily exclusi
zes respondent to claim that he owes any income tax for 2000; (c) the “IRS Decoding Manual” establishes that he owes no income tax for 2000; and (d) the Secretary has not authorized any action for the collection of taxes and penalties as required by section 7401. - 5 - On April 20, 2004, respondent’s Appeals Office sent petitioner a copy of Form 4340, Certificate of Assessments, Payments and Other Specified Matters, for 2000 and told him that: (a) Petitioner could not challenge his underlying ta
Petitioner has also attempted to raise section 7401 as a defense.