Collection Action Authorization – Guide And Advice
Collection Action Authorization – Explanation And Example Cases
The Secretary Has Not Authorized An Action For The Collection Of Taxes And Penalties Or The Attorney General Has Not Directed An Action Be Commenced For The Collection Of Taxes And Penalties
The Law: Section 7401 provides that “[n]o civil action for the collection or recovery of taxes, or of any fine, penalty, or forfeiture, shall be commenced unless the Secretary authorizes or sanctions the proceedings and the Attorney General or his delegate directs that the action becommenced.” Treas. Reg. 301.7401-1(a) further provides that such action must be authorized by the Commissioner (or the Director, Alcohol, Tobacco and Firearms Division, with respect to subtitle E of the Code), or Chief Counsel for the IRS or his delegate, and such action must becommenced by the Attorney General or his delegate.Section 7701(a)(11)(B) defines “Secretary” to include the Secretary of the Treasury or his delegate. Section 7701(a)(12)(A)(i) defines the term A delegate,” as used with respect to the Secretary of the Treasury, to mean any officer, employee, or agency of the Treasury Department duly authorized