CCA 9935059: One spouse's levy appeal suspends collection only for that spouse

Plain-English summary

Chief Counsel considered a joint liability case in which both spouses received a notice of intent to levy but only one requested a Collection Due Process hearing. The memorandum says the request suspends the collection period and collection action only for the spouse who requested the hearing. The IRS manual allows collection to continue against the other spouse. Counsel inferred that collection would not be pursued against a spouse who had not appealed when the spouses still lived together or were known to be married. If the other spouse intended to join the appeal, the hearing request could be amended after contact with that spouse.

Ruling snapshot

• Question: Does one spouse's Collection Due Process request protect the other spouse from levy collection?
• Outcome: Advice given: the suspension applies only to the spouse who requests the hearing.
• Key authorities: IRC § 6330; I.R.M. 1.9.3.3(4), 5.1.9.2.6(1)

Full text (IRS public release)

INTERNAL REVENUE SERVICE
Issued July 8, 1999
Number: 199935059
Release Date: 9/3/1999

CC:EL:GL:Br1
GL-801814-99

UILC:50.00.00-00

MEMORANDUM FOR DISTRICT COUNSEL, CENTRAL CALIFORNIA DISTRICT, SAN JOSE

FROM: Alan C. Levine, Chief Branch 1 (General Litigation)

SUBJECT: I.R.C. § 6330 - Appeal of Levy Notices - Spousal Issues

Pursuant to your request, we have reviewed the Collection Due Process aspect of your draft response to the request for advice from the RRA ‘98 Coordinator in your district. The RRA ‘98 Coordinator requested advice for the situation where both spouses receive an I.R.C. § 6330 notice but where only one spouse requests a Collection Due Process (“CDP”) hearing. We have the following comments.

Section 6330 provides that a taxpayer must request a Collection Due Process (“CDP”) hearing within 30 days of the CDP notice.1/ The statute of limitations on collection and collection activity is suspended when the taxpayer requests a CDP hearing. This suspension applies only to the taxpayer who requests the hearing and not to others who are or maybe affected by the proposed action.

I.R.M. 1.9.3.3:(4) provides “In joint liability situations, where only one spouse has requested a CDP hearing, collection action can continue with respect to the spouse who has not requested an appeal. This will most often occur in situations where the spouses are separated or divorced.” The inference is that if the spouses have the same address or the Internal Revenue Service (“Service”) knows that they are still married then the Service will not pursue collection action against the spouse that did not request the hearing. Furthermore, a CDP request can be modified.

1/ Please note that after waiting the 30 days, the Service cannot levy for an additional 15 days to assure that CDP hearing requests that were timely mailed are received by the Service. I.R.M. 5.11.1.2.1:(5). I.R.M. 5.1.9.2.6:(1). Therefore, while the revenue officer is not required to contact the nonappealing spouse, if contact is made and it is the spouse’s intent as to be included on the request for appeal, then the CDP hearing request can be modified to include both spouses.

If there are any questions or concerns regarding this memorandum please call (202)622-3610.

CC: Assistant Regional Counsel (GL) Western Region