Ezel / IRS Rulings / 200937026

CCA 200937026: State law may determine how a revocable trust or tenancy by the entirety affects a tax lien

Number
200937026
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Property Subject v. Not Subject to Lien (See 6301.12-00|)
Topics
Procedure, penalties, and administration
Code sections
§ 6321
Ruling dated
November 13, 2008
Publicly released
September 11, 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 discussed whether property held in a revocable trust or as tenants by the entirety could be treated as subject to a federal tax lien. The advice notes that a revocable trust may not change the federal tax treatment but may still be regarded as a separate entity under state law. It suggests that the issue may turn on state law and gives an example involving Maryland property held by tenants by the entirety. The release does not provide a definitive conclusion on the redacted facts.

Ruling snapshot

  • Question: How do state-law property interests, including a revocable trust or tenancy by the entirety, affect the property subject to a federal tax lien?
  • Outcome: Advice given.
  • Key authorities: IRC § 6321; applicable state property law.

Full text (IRS public release)

ID: CCA-111342-09 Number: 200937026
Release Date: 9/11/2009
Office: ----------
UILC: 6321.01-00

From: --------------------
Sent: Monday, November 13, 2008, 4:22 PM
To: --------------------
Cc: ----------------------------
Subject: T by E and Revocable Trust

Hi ----- I didn't know of a case offhand. I asked one of the ---- folks if they knew of any but haven't heard back yet. Still I agree with you. Even though for tax purposes a revocable trust doesn't really change anything, it is still regarded for state purposes as a separate entity right? It is considered a transfer. It probably boils down to a question of state law. My state Maryland has T by E property. When a married couple sells property, the proceeds are considered T by E at least for a time depending upon what happens to them. In Md you can also hold personal property as T by E so if they put it in a T by E bank account, it is still T by E. I am out tomorrow. Try running it by someone in ----. ------------worked on Craft, try her. Good luck

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