Notice Of Federal Tax Lien Is Subject To State Or Local Law
Notice Of Federal Tax Lien Content Is Controlled By Or Subject To A State Or Local Law, And A Notice Of Federal Tax Lien That Does Not Comply In Form Or Content With A State Or Local Law Is Invalid.
The Law: The form and content of the notice of federal tax lien is controlled by federal law. Section 6323(f)(3) provides that the form and content of the notice of federal tax lien shall be prescribed by the Secretary and shall be valid notwithstanding any other provision of law regarding the form or content of a notice of lien. Treas. Reg. 301.6323(f)-1(d) further provides that the notice of federal tax lien is filed on a Form 668, which must identify the taxpayer, the tax liability giving rise to the lien, and the date the assessment arose.
Relevant Case Law:
United States v. Union Cent. Life Ins. Co., 368 U.S. 291, 294 (1961) – the Supreme Court held that the form used for filing a federal tax lien does not have to comply with an additional state law requirement that it describe the property affected, although the lien did have to be filed in a designated state office.Tolotti v. Commissioner, T.C. Memo. 2002-86, 83 T.C.M. (CCH) 1436 (2002), aff’d, 70 Fed. Appx. 971 (9th Cir. 2003) – in this collection due process case, the court upheld the validity of a notice of federal tax lien filed on Form 668(Y) and bearing a facsimile signature, although the lien was not certified as required by Nevada statute.The court noted that it is “well-settled” that the form and content of the notice of federal tax lien is controlled by federal, not state, law.