Ezel / IRS Rulings / 200911033

CCA 200911033: Brokerage assets require different collection procedures

Number
200911033
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Sale of Seized Property
Topics
Procedure, penalties, and administration
Code sections
§ 6335
Ruling dated
February 9, 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 explained how a revenue officer should handle mutual funds and stock held in a brokerage account. The officer may demand liquidation of mutual funds because they can be redeemed directly by the issuer without a sale. Stock ordinarily requires seizure of the certificates, including asking the broker to request certificates from the corporation when none are available. If the corporation no longer issues certificates, the officer must seize and sell enough of the brokerage account to pay the liability.

Ruling snapshot

  • Question: How should a revenue officer collect against mutual funds or stock in a brokerage account?
  • Outcome: Advice given: demand redemption of mutual funds, but follow seizure procedures for stock or the brokerage account.
  • Key authorities: IRC § 6335.

Full text (IRS public release)

ID: CCA_2009020915472353 Number: 200911033
Release Date: 3/13/2009
Office: ----------
UILC: 6335.00-00

From: --------------------
Sent: Monday, February 09, 2009 3:47:30 PM
To: ----------------------------------------------
Cc:
Subject: RE: -------------------

Hi ------I don't know whether I have it, but the advice now is to demand liquidation of mutual funds only because they are redeemable directly from the issuer and do not have to be sold to liquidate. If the account contains stock, the IRS is required to follow the traditional line of seizing the certificates. If no certificates are available, the revenue officer should request that the broker ask the corporation to issue certificates; if the corporation no longer issues certificates, the revenue officer must seize and sell the brokerage account (or so much of the account necessary to pay off the liability). I hope that helps.

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