Federal tax liens upheld against both named entities

Number

201739011

Outcome

Advice

Document type

Chief Counsel Advice

IRS subject

Indian Tribal Government

Topics

Entity classification

Code sections

§ 7701

Ruling dated

June 7, 2017

Publicly released

September 29, 2017

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 2017, which can't be cited as precedent. Ask about your situation and see what the current Code and IRS guidance say, with citations.

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

An unincorporated division incurred a FICA tax liability. The requesting office asked whether the resulting federal tax lien attached to another entity's assets when that entity's charter authorized creation of business units intended to segregate the assets and liabilities of separate ventures despite common directorship. Based on the submitted facts, Chief Counsel advised that the notices of federal tax lien filed against both redacted parties were proper. The released advice does not provide the underlying analysis.

Ruling snapshot

Question: Are federal tax lien notices proper against both the division and the related entity despite the charter's asset-segregation provisions?
Outcome: advice given
Key authorities: UIL 7701.20-00

Full text (IRS public release)

ID:        CCA_2017060714192296
UILC:      7701.20-00

Number: 201739011
Release Date: 9/29/2017
From:
Sent: Wednesday, June 07, 2017 2:19:22 PM
To:
Cc:
Bcc:
Subject: Request for Technical Assistance: POSTS-117911-12


On 2/14/2017, you submitted a request for technical assistance that asked whether the federal
tax lien for the assessment of a FICA tax liability incurred by ----------------------------(an
unincorporated division of ------------------------------------------------------------------------------) attaches
to the assets of -----------------------------------------------------------------------------when ---------------------
----------------------------------------------------------- charter specifically empowers ---------------------------
-------------------------------------------------------- to create --------------------------------------for the
purpose of legally segregating the assets and liabilities of discrete business endeavors of ---------
----------------------------------------------------------------------------- regardless of common directorship.

Based upon the facts as presented in your request, the notices of federal tax lien filed against
--------------------------------------------------------------------------- are proper. Additionally, the notices
of federal tax lien filed against --------------------------------------are proper.


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

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