Ezel / IRS Rulings / 201348014

CCA 201348014: Counsel discusses lien priority after revocation of a release

Number
201348014
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Release of Lien or Discharge of Property
Topics
Procedure, penalties, and administration
Code sections
§ 6321, § 6323, § 6325
Publicly released
November 29, 2013
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 2013, 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 2013
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 addressed the effect of revoking a release of a federal tax lien. The message states that the release extinguished the underlying IRC § 6321 lien, and that revocation would revive the federal tax lien. It also explains that lien priority could be lost against competing interests arising during the interim under IRC § 6323(a). Counsel declined to resolve whether an unrecorded assignee interest would take priority and suggested analyzing that question under section 6323 and considering transferee liability.

Ruling snapshot

  • Question: What happens to the federal tax lien and its priority when a release is revoked?
  • Outcome: advice given
  • Key authorities: IRC §§ 6321, 6323, and 6325

Full text (IRS public release)

ID:           CCA_2013091314430857                [Third Party Communication:

UILC:         6325.00-00                          Date of Communication: Month DD, YYYY]

Number: 201348014
Release Date: 11/29/2013
From:
Sent: Friday, September 13, 2013 2:43:09 PM
To:
Cc:
Bcc:
Subject: RE: 6325 Question


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Your reading is correct. The release extinguished the underlying section 6321 lien. Upon
revocation of the release, although the FTL is revived, the priority would be lost as against other
section 6323(a) interests that arose during the interim. I am not sure whether your unrecorded
assignee interest in fact primes the FTL, but that would be a straight section 6323 analysis. You
might also want to explore some transferee liability theory. Feel free to call me if you want to
discuss further.

Regards,

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