§7429 — Review of jeopardy levy or assessment procedures
24 cases·14 followed·1 distinguished·9 cited—58% support
Statute Text — 26 U.S.C. §7429
No assessment may be made under section 6851(a), 6852(a), 6861(a), or 6862, and no levy may be made under section 6331(a) less than 30 days after notice and demand for payment is made, unless the Chief Counsel for the Internal Revenue Service (or such Counsel’s delegate) personally approves (in writing) such assessment or levy.
Within 5 days after the day on which such an assessment or levy is made, the Secretary shall provide the taxpayer with a written statement of the information upon which the Secretary relied in making such assessment or levy.
Within 30 days after the day on which the taxpayer is furnished the written statement described in paragraph (1), or within 30 days after the last day of the period within which such statement is required to be furnished, the taxpayer may request the Secretary to review the action taken.
After a request for review is made under paragraph (2), the Secretary shall determine—
whether or not—
the making of the assessment under section 6851, 6861, or 6862, as the case may be, is reasonable under the circumstances, and
the amount so assessed or demanded as a result of the action taken under section 6851, 6861, or 6862 is appropriate under the circumstances, or
whether or not the levy described in subsection (a)(1) is reasonable under the circumstances.
Within 90 days after the earlier of—
the day the Secretary notifies the taxpayer of the Secretary’s determination described in subsection (a)(3), or
the 16th day after the request described in subsection (a)(2) was made,
the taxpayer may bring a civil action against the United States for a determination under this subsection in the court with jurisdiction determined under paragraph (2).
Except as provided in subparagraph (B), the district courts of the United States shall have exclusive jurisdiction over any civil action for a determination under this subsection.
If a petition for a redetermination of a deficiency under section 6213(a) has been timely filed with the Tax Court before the making of an assessment or levy that is subject to the review procedures of this section, and 1 or more of the taxes and taxable periods before the Tax Court because of such petition is also included in the written statement that is provided to the taxpayer under subsection (a), then the Tax Court also shall have jurisdiction over any civil action for a determination under this subsection with respect to all the taxes and taxable periods included in such written statement.
Within 20 days after a proceeding is commenced under paragraph (1), the court shall determine—
whether or not—
the making of the assessment under section 6851, 6861, or 6862, as the case may be, is reasonable under the circumstances, and
the amount so assessed or demanded as a result of the action taken under section 6851, 6861, or 6862 is appropriate under the circumstances, or
whether or not the levy described in subsection (a)(1) is reasonable under the circumstances.
If the court determines that proper service was not made on the United States or on the Secretary, as may be appropriate, within 5 days after the date of the commencement of the proceeding, then the running of the 20-day period set forth in the preceding sentence shall not begin before the day on which proper service was made on the United States or on the Secretary, as may be appropriate.
If the court determines that the making of such levy is unreasonable, that the making of such assessment is unreasonable, or that the amount assessed or demanded is inappropriate, then the court may order the Secretary to release such levy, to abate such assessment, to redetermine (in whole or in part) the amount assessed or demanded, or to take such other action as the court finds appropriate.
If the taxpayer requests an extension of the 20-day period set forth in subsection (b)(2) and establishes reasonable grounds why such extension should be granted, the court may grant an extension of not more than 40 additional days.
For purposes of this section, Saturday, Sunday, or a legal holiday in the District of Columbia shall not be counted as the last day of any period.
A civil action in a district court under subsection (b) shall be commenced only in the judicial district described in section 1402(a)(1) or (2) of title 28, United States Code.
If a civil action is filed under subsection (b) with the Tax Court and such court finds that there is want of jurisdiction because of the jurisdiction provisions of subsection (b)(2), then the Tax Court shall, if such court determines it is in the interest of justice, transfer the civil action to the district court in which the action could have been brought at the time such action was filed. Any civil action so transferred shall proceed as if such action had been filed in the district court to which such action is transferred on the date on which such action was actually filed in the Tax Court from which such action is transferred.
Any determination made by a court under this section shall be final and conclusive and shall not be reviewed by any other court.
In a proceeding under subsection (b) involving the issue of whether the making of a levy described in subsection (a)(1) or the making of an assessment under section 6851, 6852, 6861, or 6862 is reasonable under the circumstances, the burden of proof in respect to such issue shall be upon the Secretary.
In a proceeding under subsection (b) involving the issue of whether an amount assessed or demanded as a result of action taken under section 6851, 6852, 6861, or 6862 is appropriate under the circumstances, the Secretary shall provide a written statement which contains any information with respect to which his determination of the amount assessed was based, but the burden of proof in respect of such issue shall be upon the taxpayer.
Treasury Regulations
- Treas. Reg. §Treas. Reg. §301.7429-1 Review of jeopardy and termination assessment and jeopardy levy procedures; information to taxpayer
- Treas. Reg. §Treas. Reg. §301.7429-2 Review of jeopardy and termination assessment and jeopardy levy procedures
- Treas. Reg. §Treas. Reg. §301.7429-2(a) Request for administrative review.
- Treas. Reg. §Treas. Reg. §301.7429-2(b) Administrative review.
- Treas. Reg. §Treas. Reg. §301.7429-2(c) Abatement of assessment.
- Treas. Reg. §Treas. Reg. §301.7429-3 Review of jeopardy and termination assessment and jeopardy levy procedures; judicial action
- Treas. Reg. §Treas. Reg. §301.7429-3(a) Time for bringing judicial action.
- Treas. Reg. §Treas. Reg. §301.7429-3(b) Extension of period for judicial review.
- Treas. Reg. §Treas. Reg. §301.7429-3(c) Jurisdiction for determination.
24 Citing Cases
The - 11 - notice stated that petitioners were entitled to (1) request an administrative review of the jeopardy levy determination pursuant to section 7429 and (2) request an Appeals Office hearing regarding the jeopardy levy determination pursuant to section 6330.
Accordingly, we hold that petitioner's motion was untimely, and, therefore, we do not have jurisdiction 8 The record reveals at least four possible notification dates: (1) July 17, 2003, when the Appeals officer sent a statement of his initial determination to petitioner's attorney; (2) Aug.
Furthermore, for these same reasons, we do not believe that a remand instructing respondentto conduct a review ofthe jeopardy levy pursuantto section 7429 would be productive.¹9 First, in requesting administrative review ofajeopardy levy, a taxpayer is required to submit evidence that the levy is unreasonable.
nce of a levy to collect the amount your [sic] owe, although we have not provided you a notice of intent to levy and/or notice of your right to a hearing, generally required by Sections 6330 and 6331 * * * Respondent’s notice of jeopardy levy and right to appeal informed petitioner that he was entitled to request (1) an administrative review under section 7429 and (2) a collection due process hearing pursuant to section 6330.
ation that Mr. Mather's Aug. 23, 2001, request was treated as a request for release of levy. - 31 - sec. 5.10.4.1.1(2), which.provides that the sale of seized property will generally be suspended during the administrative review process provided in section 7429. Within 5 days after a jeopardy assessment is made under section 6861 or a .jeopardy levy is made under section 6331(a), the Commissioner must provide the taxpayer a written statement of the information upon which ·the Commissioner relied
--- MAJORITY --- OPINION Thornton, Judge: This matter is before us on petitioner’s motion for review of jeopardy assessment and jeopardy levy under section 7429, filed November 19, 2003, pursuant to Rule 56.
District Court for the Western District of Virginia at Abingdon, Virginia, held, pursuant to section 7429 (i.e., relating to a jeopardy assessment), that these payments could have been deducted by the corporation as compensation.
Given the limited effect of judicial review of a jeopardy assessment pursuant to section 7429, this Court will adopt this well-reasoned approach.
A determination made by a court under section 7429 is not appealable.
otesters of abusive "corporations sole" is well documented . See, e .g ., United States v . Harkins , 355 F. Supp . 2d 1175 (D . Or. 2004) ; Rev . Rul . 2004-27, 2004-1 C .B . 625 . -5- jeopardy assessments and of petitioner's right of appeal under section 7429 . Upon being handed the notice, petitioner refused to accept it, whereupon respondent's agent left the notice of the jeopardy assessments on petitioner's doorstep . A copy of respondent's notice of jeopardy assessments was also delivered
1995- 373 (section 7429 review is a summary proceeding; the court does not decide the taxpayer's tax liability); Bean v.
7429 was amended to allow review of certain jeopardy levies issued or assessments made in the Tax Court. Technical and Miscellaneous Revenue Act of 1988, Pub. L. 100-647, sec. 6237, 102 Stat. 3342, 3741. This change applies to jeopardy levies issued or assessments made on or after July 1, 1989. Petitioner asks that respondent’s Exhibit I be st