Ezel / IRS Rulings / 1244016
Chief Counsel Advice 1244016 Released November 2, 2012 Advice

CCA 1244016: Federal tax lien priority depends on assessment and state lien choateness

Apply this to your situation

This page covers one taxpayer's ruling from 2012, 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 2012
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 resolved one taxpayer's situation on its specific facts, 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 federal tax lien priority is determined by comparing the federal tax assessment date with the filing date of the state tax lien. The federal lien arises upon assessment, and filing a notice of federal tax lien is not required for validity against a state tax lien because state tax liens are not among the creditors protected by IRC § 6323. The state lien has priority if it was choate when the federal lien arose. For New York personal property, the lien is choate when filed with the appropriate County Clerk and the New York Secretary of State. For real property, filing in the county where the property is located is sufficient.

Ruling snapshot

  • Question: How is the priority of a federal tax lien determined against a New York state tax lien?
  • Outcome: Advice given
  • Key authorities: IRC § 6321 and § 6323

Full text (IRS public release)

ID: CCA_2012061409080450 Number: 201244016
Release Date: 11/2/2012
Office: ----------
UILC: 6321.03-23

From: -----------------------
Sent: Thursday, June 14, 2012 9:08:05 AM
To: ------------------
Cc: -------------------------------------------------------------------------------
Subject: RE: assistance w/-------

Sorry for the delay in responding. I’ve been out of the office on leave and just got back
today.

The priority of the federal tax lien will be determined by the assessment date of the
federal tax as compared to the filing date of the state tax lien. Filing a notice of federal
tax lien is not required for a federal tax lien to be valid against a state tax lien, because
state tax liens are not among the types of creditors protected by IRC 6323. The federal
tax lien arises upon assessment. The priority of a state tax lien is determined by
whether it was choate when the federal tax lien arose. A lien becomes choate when
there is nothing more to be done to perfect it. In New York, a state tax lien is choate
with respect to personal property when the lien is filed with the appropriate County Clerk
and the New York Secretary of State. For real property, the lien must simply be filed in
the county where the real property is located.

Please call me if you have any further questions about this matter.

Get today's answer for your situation

You just read what the IRS ruled for one taxpayer in 2012, and it can't be cited as precedent. Ezel checks the current Internal Revenue Code and IRS guidance and answers your specific situation, with citations.

Opens in Ezel Pro. Every answer cites the authority it relies on.