Ezel / IRS Rulings / 200914052

CCA 200914052: State priority did not establish entitlement to a tax overpayment

Number
200914052
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Authority to Make Credits or Refunds; Authority to Release Levy; Civil Actions by Persons Other Than Taxpayers
Topics
Procedure, penalties, and administration
Code sections
§ 6343, § 6402, § 7426
Ruling dated
March 4, 2009
Publicly released
April 3, 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 considered whether a state's priority established its entitlement to a taxpayer's overpayment. The advice concluded that priority did not control entitlement to the overpayment. Instead, the state could have brought a wrongful-levy claim under sections 6343(b) or 7426 based on its priority. It could still do so if the claim was filed within nine months of the levy.

Ruling snapshot

  • Question: Did a state's priority determine its entitlement to an overpayment taken by IRS levy?
  • Outcome: Advice given: no, but the state could pursue a wrongful-levy claim based on its priority within the applicable nine-month period.
  • Key authorities: IRC §§ 6343(b), 6402(e), and 7426.

Full text (IRS public release)

ID: CCA_2009030409554747 Number: 200914052
Release Date: 4/3/2009
Office: --------------
UILC: 6402.00-00, 6343.00-00, 7426.00- 00

From: ----------------------
Sent: Wednesday, March 04, 2009 9:55:53 AM
To: ---------------------
Cc:
Subject: RE: 6402(e) and perhaps priority and perhaps levy ----------

Unfortunately, priority would not come into play for purposes of entitlement to the overpayment. The state
could have brought a wrongful levy claim, however, under 6343(b) and/or 7426, based upon its priority
(and still can if we are within 9 months of the levy).

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