Notice Of Federal Tax Lien Not Signed Is Invalid – Killer IRS CPA
Notice Of Federal Tax Lien Not Signed Is Invalid Because It Was Filed By Someone Without Delegated Authority
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.Section 6323(a) provides that “[t]he lien imposed by section 6321 shall not be valid as against any purchaser, holder of a security interest, mechanic’s lien holder, or judgment lien creditor until notice thereof which meets the requirements of subsection (f) has been filed by the Secretary.”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 “delegate”, as used with respect to the Secretary of the Treasury, to mean any officer, employee, or agency of the Treasury Department duly authorized by the Secretary directly, or indirectly by redelegation of authority, to perform a certain function. See, e.g., Delegation Order 5-4, Rev. 1 (delegating authority to sign notices of federal tax lien). There is no requirement in the statute or regulation that the notice of federal tax lien must be signed when filed.
Relevant Case Law:
Uveges v. United States, 2002-2 U.S.T.C. 50,740 (D. Nev. 2002) – the court noted that with respect to section 6323, among other Code sections, which use the term “Secretary,” “Secretary” refers to the Secretary of the Treasury and any delegates. See section 7701(a)(11)(B).In re Kroll, 74 A.F.T.R.2d 94-6161 (W.D. Mich. 1994) – in this bankruptcy case the taxpayer-debtors challenged the notice of federal tax lien on the ground that it was not signed. The court found that neither the statute nor regulations relating to such lien require that the notice be signed, nor had the debtors provided any explicit authority requiring that the notice be signed to be valid.Hult v. Commissioner, T.C. Memo. 2007-302, 94 T.C.M. (CCH) 359 (2007) – in a collection due process case the court, in a footnote, dismissed petitioner’s argument that the notice of federal tax lien was invalid because it was not signed, stating it is not necessary for a notice of federal tax lien to be signed.Thompson v. Commissioner, T.C. Memo. 2004-204, 88 T.C.M. (CCH) 219 (2004) – in a collections due process case the court rejected petitioner’s arguments as frivolous and groundless, including petitioner’s contention that the notice of federal tax lien that he received was invalid because it was not signed by the Secretary. The Secretary had delegated the authority to issue notices of lien to certain IRS employees.