CCA 200910035: An unused levy-hearing opportunity barred a later liability dispute

Plain-English summary

A taxpayer received a section 6330 notice for a tax liability but did not request a hearing. The taxpayer later timely requested a section 6320 lien hearing for the same liability. Chief Counsel advised that the earlier notice was a prior opportunity to dispute the liability under section 6330(c)(2)(B), even though the taxpayer did not use it. The cited regulation supported that view, but the Tax Court had not directly decided the question.

Ruling snapshot

• Question: Did a prior section 6330 notice count as an opportunity to dispute liability when the taxpayer requested no hearing?
• Outcome: Advice given: yes, it was a prior opportunity for purposes of the later section 6320 hearing.
• Key authorities: IRC §§ 6320 and 6330(c)(2)(B); Treas. Reg. § 301.6320-1(e)(3), Q&A-E2.

Full text (IRS public release)

ID: CCA_2009010616223162 Number: 200910035
Release Date: 3/6/2009
Office: -----------
UILC: 6320.00-00

From: --------------------------
Sent: Tuesday, January 06, 2009 4:22:35 PM
To: ----------------------
Cc: --------------------------------------
Subject: RE: CDP question

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Did we answer your question? If not, the answer is yes. If a taxpayer receives a prior section 6330 notice with respect to a tax liability and does not request a hearing, and then later requests a timely section 6320 hearing with respect to the same tax liability, then the prior section 6330 notice is a prior opportunity to dispute the liability under section 6330(c)(2)(B). This position is supported by 301.6320- 1(e)(3) Q&A-E2, as you've pointed out. The Tax Court has not ruled on this question directly.

Hope you had a nice holiday season.

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