
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document affected by Public Law 106-554 Section 1(a)(7)]
[Document affected by Public Law 106-554 Section 1(a)(7)[313(d)]]
[CITE: 26USC6330]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                Subtitle F--Procedure and Administration
 
                         CHAPTER 64--COLLECTION
 
        Subchapter D--Seizure of Property for Collection of Taxes
 
                   PART I--DUE PROCESS FOR COLLECTIONS
 
Sec. 6330. Notice and opportunity for hearing before levy


(a) Requirement of notice before levy

                           (1) In general

        No levy may be made on any property or right to property of any 
    person unless the Secretary has notified such person in writing of 
    their right to a hearing under this section before such levy is 
    made. Such notice shall be required only once for the taxable period 
    to which the unpaid tax specified in paragraph (3)(A) relates.

                   (2) Time and method for notice

        The notice required under paragraph (1) shall be--
            (A) given in person;
            (B) left at the dwelling or usual place of business of such 
        person; or
            (C) sent by certified or registered mail, return receipt 
        requested, to such person's last known address;

    not less than 30 days before the day of the first levy with respect 
    to the amount of the unpaid tax for the taxable period.

                (3) Information included with notice

        The notice required under paragraph (1) shall include in simple 
    and nontechnical terms--
            (A) the amount of unpaid tax;
            (B) the right of the person to request a hearing during the 
        30-day period under paragraph (2); and
            (C) the proposed action by the Secretary and the rights of 
        the person with respect to such action, including a brief 
        statement which sets forth--
                (i) the provisions of this title relating to levy and 
            sale of property;
                (ii) the procedures applicable to the levy and sale of 
            property under this title;
                (iii) the administrative appeals available to the 
            taxpayer with respect to such levy and sale and the 
            procedures relating to such appeals;
                (iv) the alternatives available to taxpayers which could 
            prevent levy on property (including installment agreements 
            under section 6159); and
                (v) the provisions of this title and procedures relating 
            to redemption of property and release of liens on property.

(b) Right to fair hearing

                           (1) In general

        If the person requests a hearing under subsection (a)(3)(B), 
    such hearing shall be held by the Internal Revenue Service Office of 
    Appeals.

                     (2) One hearing per period

        A person shall be entitled to only one hearing under this 
    section with respect to the taxable period to which the unpaid tax 
    specified in subsection (a)(3)(A) relates.

                        (3) Impartial officer

        The hearing under this subsection shall be conducted by an 
    officer or employee who has had no prior involvement with respect to 
    the unpaid tax specified in subsection (a)(3)(A) before the first 
    hearing under this section or section 6320. A taxpayer may waive the 
    requirement of this paragraph.

(c) Matters considered at hearing

    In the case of any hearing conducted under this section--

                  (1) Requirement of investigation

        The appeals officer shall at the hearing obtain verification 
    from the Secretary that the requirements of any applicable law or 
    administrative procedure have been met.

                        (2) Issues at hearing

        (A) In general

            The person may raise at the hearing any relevant issue 
        relating to the unpaid tax or the proposed levy, including--
                (i) appropriate spousal defenses;
                (ii) challenges to the appropriateness of collection 
            actions; and
                (iii) offers of collection alternatives, which may 
            include the posting of a bond, the substitution of other 
            assets, an installment agreement, or an offer-in-compromise.

        (B) Underlying liability

            The person may also raise at the hearing challenges to the 
        existence or amount of the underlying tax liability for any tax 
        period if the person did not receive any statutory notice of 
        deficiency for such tax liability or did not otherwise have an 
        opportunity to dispute such tax liability.

                   (3) Basis for the determination

        The determination by an appeals officer under this subsection 
    shall take into consideration--
            (A) the verification presented under paragraph (1);
            (B) the issues raised under paragraph (2); and
            (C) whether any proposed collection action balances the need 
        for the efficient collection of taxes with the legitimate 
        concern of the person that any collection action be no more 
        intrusive than necessary.

                    (4) Certain issues precluded

        An issue may not be raised at the hearing if--
            (A) the issue was raised and considered at a previous 
        hearing under section 6320 or in any other previous 
        administrative or judicial proceeding; and
            (B) the person seeking to raise the issue participated 
        meaningfully in such hearing or proceeding.

    This paragraph shall not apply to any issue with respect to which 
    subsection (d)(2)(B) applies.

(d) Proceeding after hearing

                (1) Judicial review of determination

        The person may, within 30 days of a determination under this 
    section, appeal such determination--
            (A) to the Tax Court (and the Tax Court shall have 
        jurisdiction with respect to such matter); or
            (B) if the Tax Court does not have jurisdiction of the 
        underlying tax liability, to a district court of the United 
        States.

    If a court determines that the appeal was to an incorrect court, a 
    person shall have 30 days after the court determination to file such 
    appeal with the correct court.

         (2) Jurisdiction retained at IRS Office of Appeals

        The Internal Revenue Service Office of Appeals shall retain 
    jurisdiction with respect to any determination made under this 
    section, including subsequent hearings requested by the person who 
    requested the original hearing on issues regarding--
            (A) collection actions taken or proposed with respect to 
        such determination; and
            (B) after the person has exhausted all administrative 
        remedies, a change in circumstances with respect to such person 
        which affects such determination.

(e) Suspension of collections and statute of limitations

                           (1) In general

        Except as provided in paragraph (2), if a hearing is requested 
    under subsection (a)(3)(B), the levy actions which are the subject 
    of the requested hearing and the running of any period of 
    limitations under section 6502 (relating to collection after 
    assessment), section 6531 (relating to criminal prosecutions), or 
    section 6532 (relating to other suits) shall be suspended for the 
    period during which such hearing, and appeals therein, are pending. 
    In no event shall any such period expire before the 90th day after 
    the day on which there is a final determination in such hearing. 
    Notwithstanding the provisions of section 7421(a), the beginning of 
    a levy or proceeding during the time the suspension under this 
    paragraph is in force may be enjoined by a proceeding in the proper 
    court, including the Tax Court. The Tax Court shall have no 
    jurisdiction under this paragraph to enjoin any action or proceeding 
    unless a timely appeal has been filed under subsection (d)(1) and 
    then only in respect of the unpaid tax or proposed levy to which the 
    determination being appealed relates.

                        (2) Levy upon appeal

        Paragraph (1) shall not apply to a levy action while an appeal 
    is pending if the underlying tax liability is not at issue in the 
    appeal and the court determines that the Secretary has shown good 
    cause not to suspend the levy.

(f) Jeopardy and State refund collection

    If--
        (1) the Secretary has made a finding under the last sentence of 
    section 6331(a) that the collection of tax is in jeopardy; or
        (2) the Secretary has served a levy on a State to collect a 
    Federal tax liability from a State tax refund,

this section shall not apply, except that the taxpayer shall be given 
the opportunity for the hearing described in this section within a 
reasonable period of time after the levy.

(Added Pub. L. 105-206, title III, Sec. 3401(b), July 22, 1998, 112 
Stat. 747; amended Pub. L. 106-554, Sec. 1(a)(7) [title III, 
Sec. 313(b)(2)(A), (d)], Dec. 21, 2000, 114 Stat. 2763, 2763A-642, 
2763A-643.)


                               Amendments

    2000--Subsec. (d)(1)(A). Pub. L. 106-554, Sec. 1(a)(7) [title III, 
Sec. 313(d)], substituted ``with respect to'' for ``to hear''.
    Subsec. (e)(1). Pub. L. 106-554, Sec. 1(a)(7) [title III, 
Sec. 313(b)(2)(A)], inserted at end ``Notwithstanding the provisions of 
section 7421(a), the beginning of a levy or proceeding during the time 
the suspension under this paragraph is in force may be enjoined by a 
proceeding in the proper court, including the Tax Court. The Tax Court 
shall have no jurisdiction under this paragraph to enjoin any action or 
proceeding unless a timely appeal has been filed under subsection (d)(1) 
and then only in respect of the unpaid tax or proposed levy to which the 
determination being appealed relates.''


                    Effective Date of 2000 Amendment

    Amendment by section 1(a)(7) [title III, Sec. 313(b)(2)(A)] of Pub. 
L. 106-554 effective Dec. 21, 2000, and amendment by section 1(a)(7) 
[title III, Sec. 313(d)] of Pub. L. 106-554, effective as if included in 
the provisions of the Internal Revenue Service Restructuring and Reform 
Act of 1998, Pub. L. 105-206, to which such amendment relates, see 
section 1(a)(7) [title III, Sec. 313(f)] of Pub. L. 106-554, set out as 
a note under section 6015 of this title.


                             Effective Date

    Section applicable to collection actions initiated after the date 
which is 180 days after July 22, 1998, see section 3401(d) of Pub. L. 
105-206, set out as a note under section 6320 of this title.

                  Section Referred to in Other Sections

    This section is referred to in sections 6320, 7421, 7443A, 7463, 
7803 of this title.
