Ezel / IRS Rulings / 201111008

CCA 201111008: levy and sale procedures for stock held electronically

Number
201111008
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Levy Procedure
Topics
Procedure, penalties, and administration
Code sections
§ 6331, § 6339, § 6110
Ruling dated
January 7, 2011
Publicly released
March 18, 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 advice addressed how an IRS revenue officer should handle a levy and sale of stock represented by a certificate. The advice recommended asking the broker for a letter confirming that the broker will transfer ownership after the sale in conformity with section 6339(a)(3). It also said the Notice of Public Auction may describe the taxpayer's interest as stock held electronically in an account with the broker.

Ruling snapshot

  • Question: What procedures apply when levied stock is held electronically rather than represented by a certificate?
  • Outcome: Advice given.
  • Key authorities: IRC §§ 6331 and 6339(a)(3).

Full text (IRS public release)

ID: CCA_2011010711390926
Number: 201111008
Release Date: 3/18/2011
Office: -------------
UILC: 6331.18-00

From: ------------------
Sent: Friday, January 07, 2011 11:39:10 AM
To: --------------
Cc:
Subject: Levying on stock without certificate

--------------------------

------- this concerns your question regarding the levy and sale procedures for stock that is represented by a certificate. An RO should ask the broker to send letter that gives the -------- confidence to sell the stock to a third party and that shows the broker will transfer ownership of the stock after the sale in conformity with section 6339(a)(3).

In the "Description of Property" in the Notice of Public Auction the RO may provide that the taxpayer’s interest in the stock is held electronically in an account with [name of broker].

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