Ezel / IRS Rulings / 1350039
Chief Counsel Advice 1350039 Released December 13, 2013 Advice

CCA 1350039: excess levy proceeds may be applied to CDP-period liabilities

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This page covers one taxpayer's ruling from 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 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 Advice addresses whether excess proceeds from a levy may be applied to liabilities for periods covered by a Collection Due Process request. The advice concludes that applying the excess proceeds to those periods is an offset authorized by IRC § 6402(a). It is not an additional levy relating to the CDP periods, which would be prohibited by IRC § 6330(e)(1). The advice also cites the Internal Revenue Manual's treatment of surplus levy proceeds as an offset.

Ruling snapshot

  • Question: May excess levy proceeds be applied to liabilities for periods covered by a CDP request?
  • Outcome: Advice given
  • Key authorities: IRC §§ 6402(a), 6330(e)(1); IRM 5.11.5.5(2)

Full text (IRS public release)

ID: CCA_2013110815431264
Office: --------------
UILC: 6402.00-00, 6402.01-00, 6330.00-
00
Number: 201350039
Release Date: 12/13/2013
From: -----------------
Sent: Friday, November 08, 2013 3:43:28 PM
To: ---------------------------
Cc: --------------------
Subject: Excess Proceeds and application to period in CDP

In response to your question, the excess levy proceeds can be applied against the liabilities
for the periods covered by the CDP request. Applying the excess proceeds to the CDP years
constitutes an offset authorized under IRC 6402(a), and not an additional levy relating to the CDP
years (which would be prohibited under IRC 6330(e)(1)). Counsel issued CCA
supporting this conclusion on July 13, 2000. See 2000 WL 33120339. Furthermore, IRM
5.11.5.5(2) provides that: "Surplus levy proceeds are an offset under IRC 6402(a) and
therefore levy proceeds received, in excess of the periods covered by the levy, may be
applied to liabilities not listed on the levy."

Please let me know if you have any questions.

Thank you,

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