Judicial approval protects specified principal residences from levy

Plain-English summary

Chief Counsel advised that judicial approval is required before the IRS levies property owned by a taxpayer and used as the principal residence of the taxpayer, the taxpayer's spouse, former spouse, or minor child. The advice distinguished the statute's term "principal residence" from "personal residence." It explained that Section 6334(a)(13)(A) protects residences in small-dollar cases, while Section 6334(a)(13)(B) protects principal residences subject to the judicial-approval exception in Section 6334(e). It also suggested that the regulation's express list of family members came from the conference report.

Ruling snapshot

• Question: Whose use of taxpayer-owned property as a principal residence triggers the judicial-approval requirement before levy?
• Outcome: Advice given: the protected users are the taxpayer, spouse, former spouse, and minor child listed in the regulation.
• Key authorities: IRC §§ 6334(a)(13), 6334(e); Treas. Reg. § 301.6334-1(d)

Full text (IRS public release)

ID: CCA_2018062013223420
UILC: 6334.00-00

Number: 201827012
Release Date: 7/6/2018
From:
Sent: Wednesday, June 20, 2018 1:22:35 PM
To:
Cc:
Bcc:
Subject: RE: One more thing! FW: IRC 6334 "personal residence" question

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Yes, the parties are the ones listed in the regs. As Treas Reg 301.6334-1(d) states, judicial approval is needed prior to levy of property that is owned by the taxpayer and used as the principal residence of the taxpayer, the taxpayer's spouse, the taxpayer's former spouse, or the taxpayer's minor child. BTW, 6334(e) does not say “personal residence”—it says “principal residence” which is a condensed version of “principal residence of the taxpayer” used in 6334(a)(13)(B). Maybe that was the source of your question? If you are asking why the regs include parties not specifically mentioned in section 6334, I believe that language comes from the conference report.

I am not familiar with the training text you quoted, and I am not sure what’s troubling about section 6334(a)(13), which addresses both residences in small dollar amounts and principal residence seizures. Section 6334(a)(13)(A) exempts residences in small dollar amount cases. Section 6334(a)(13)(B) exempts principal residences except as provided in section 6334(e).