Revenue Officers Seize Property – Killer Discussion
The Law: Section 6331(a) provides that “[i]f any person liable to pay any tax neglects or refuses to pay the same within 10 days after notice and demand, it shall be lawful for the Secretary to collect such tax … by levy upon all property and rights to property (except such property as is exempt under section 6334) belonging to such person or on which there is a lienprovided in this chapter for the payment of such tax.”Section 6331(b) provides that the term “levy” includes the power of restraint and seizure by any means. In any case in which the Secretary may levy upon property or property rights, he may also seize and sell such property or property rights. Section 6331(b).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 by the Secretary directly, or indirectly by re delegation of authority, to perform a certain function. See Treas. Reg. 301.6331- 1(a)(1) (district director is authorized to levy); see, e.g., Delegation Order 5-3 (formerly D.O. 191 Rev. 3) (re delegation of authority with respect to levies to revenue officers and other Service employees).
Revenue Officers Seize Property Relevant Case Law:
Gibbs v. Commissioner, 673 F. Supp. 1088, 1092 (N.D. Ala. 1987), aff’d, 846 F.2d 754 (11th Cir. 1988) – holding that revenue officers “are specifically delegated and charged with the responsibility for collection of taxes.”Craig v. Commissioner; 119 T.C. 252 (2002) – the authority to levy on petitioner’s property was delegated to Automated Collection Branch Chiefs pursuant to Delegation Order No. 191 (Rev. 2), effective October 1, 1999.