Ezel / IRS Rulings / 201103045

CCA 201103045: Relocation assistance is excluded from the Service's interest in lien property

Number
201103045
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Release of Lien or Discharge of Property
Topics
Procedure, penalties, and administration
Code sections
§ 6325
Ruling dated
December 12, 2010
Publicly released
January 21, 2011
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 2011, 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 2011
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 advised that relocation assistance paid directly to a taxpayer is not part of sale proceeds. Because it is not part of the taxpayer's interest in the real property, it should not be included when computing the Service's interest in property to be discharged from a lien. The advice distinguishes the payment from an interim guidance memorandum about carve-outs to junior lienholders.

Ruling snapshot

  • Question: Should relocation assistance paid directly to a taxpayer be included in the Service's interest in real property to be discharged from a lien?
  • Outcome: Advice given
  • Key authorities: IRC § 6325

Full text (IRS public release)

ID: CCA_2010121214444350 Number: 201103045
Release Date: 1/21/2011
Office: ----------
UILC: 6325.00-00

From: -----------------------
Sent: Sunday, December 12, 2010 2:44:46 PM
To: -----------------------
Cc: -----------------------
Subject: RE: opinion

It's not really the same situation although the result is the same - i.e., they should not include the payment in computing the Service's interest in the property. The October IG
[interim guidance] memo deals with carve-outs to junior lienholders from money that would otherwise go to the senior lienholders. The relocation assistance is not part of the sale proceeds, it's just a payment made directly to the taxpayer and, as such, is not part of the taxpayer's interest in the real property to be discharged from the lien. A new IG memo on this will be coming out soon.

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