Ezel / IRS Rulings / 200911021

CCA 200911021: An IRS levy authorized a broker to redeem mutual funds

Number
200911021
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Levy Procedure
Topics
Procedure, penalties, and administration
Code sections
§ 6331
Ruling dated
February 3, 2009
Publicly released
March 13, 2009
Source
View Official PDF

Apply this to your situation

This page covers legal advice the IRS Office of Chief Counsel wrote for IRS staff, issued in 2009, which can't be cited as precedent. Ask about your situation and see what the current Code and IRS guidance say, with citations.

Currency note: this determination was released in 2009
Statutory amendments, regulation changes, court decisions, or later IRS guidance may have changed the analysis since then. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, threshold, or position mentioned here.
Not precedent. Under 26 U.S.C. § 6110(k)(3), this written determination may not be used or cited as precedent. It is advice from the IRS Office of Chief Counsel to IRS personnel on the facts they presented, and identifying details were redacted by the IRS before release. The official IRS release (linked on this page as a PDF) is the authoritative source.
About this page: The plain-English summary and ruling snapshot below were written by Ezel based on the official IRS release. The full text is the IRS's own document.
View official IRS release (PDF)

Plain-English summary

Chief Counsel addressed an IRS levy on a brokerage account containing mutual funds. Because mutual funds are redeemed for cash rather than sold, the advice treated them as similar to cash. The levy itself gave the broker sufficient authorization to redeem the funds and turn the cash over to the IRS.

Ruling snapshot

  • Question: Did a levy authorize the broker to liquidate mutual funds in a brokerage account?
  • Outcome: Advice given: yes, the broker should redeem the funds and remit the cash to the IRS.
  • Key authorities: IRC § 6331; Internal Revenue Manual 5.11.6.8.

Full text (IRS public release)

ID: CCA_2009020309260953 Number: 200911021
Release Date: 3/13/2009
Office: ----------------------------
UILC: 6331.18-00

From: --------------------
Sent: Tuesday, February 03, 2009 9:26:16 AM
To: ----------------------
Cc: --------------------
Subject: RE: Levying a brokerage account containing mutual funds

Hi --- - ----------------------------- has concluded that mutual funds are very similar to cash because they are not sold but are redeemed for cash. Therefore brokers should redeem them when served with a levy and turn cash over to the IRS. See IRM 5.11.6.8. Yes, I agree that the levy is enough authorization for the broker to liquidate the mutual funds. Please call me if you have any further questions.

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