
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC7429]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                Subtitle F--Procedure and Administration
 
                    CHAPTER 76--JUDICIAL PROCEEDINGS
 
        Subchapter B--Proceedings by Taxpayers and Third Parties
 
Sec. 7429. Review of jeopardy levy or assessment procedures


(a) Administrative review

                      (1) Administrative review

        (A) Prior approval required

            No assessment may be made under section 6851(a), 6852(a), 
        6861(a), or 6862, and no levy may be made under section 6331(a) 
        less than 30 days after notice and demand for payment is made, 
        unless the Chief Counsel for the Internal Revenue Service (or 
        such Counsel's delegate) personally approves (in writing) such 
        assessment or levy.

        (B) Information to taxpayer

            Within 5 days after the day on which such an assessment or 
        levy is made, the Secretary shall provide the taxpayer with a 
        written statement of the information upon which the Secretary 
        relied in making such assessment or levy.

                       (2) Request for review

        Within 30 days after the day on which the taxpayer is furnished 
    the written statement described in paragraph (1), or within 30 days 
    after the last day of the period within which such statement is 
    required to be furnished, the taxpayer may request the Secretary to 
    review the action taken.

                  (3) Redetermination by Secretary

        After a request for review is made under paragraph (2), the 
    Secretary shall determine--
            (A) whether or not--
                (i) the making of the assessment under section 6851, 
            6861, or 6862, as the case may be, is reasonable under the 
            circumstances, and
                (ii) the amount so assessed or demanded as a result of 
            the action taken under section 6851, 6861, or 6862 is 
            appropriate under the circumstances, or

            (B) whether or not the levy described in subsection (a)(1) 
        is reasonable under the circumstances.

(b) Judicial review

                      (1) Proceedings permitted

        Within 90 days after the earlier of--
            (A) the day the Secretary notifies the taxpayer of the 
        Secretary's determination described in subsection (a)(3), or
            (B) the 16th day after the request described in subsection 
        (a)(2) was made,

    the taxpayer may bring a civil action against the United States for 
    a determination under this subsection in the court with jurisdiction 
    determined under paragraph (2).

                 (2) Jurisdiction for determination

        (A) In general

            Except as provided in subparagraph (B), the district courts 
        of the United States shall have exclusive jurisdiction over any 
        civil action for a determination under this subsection.

        (B) Tax Court

            If a petition for a redetermination of a deficiency under 
        section 6213(a) has been timely filed with the Tax Court before 
        the making of an assessment or levy that is subject to the 
        review procedures of this section, and 1 or more of the taxes 
        and taxable periods before the Tax Court because of such 
        petition is also included in the written statement that is 
        provided to the taxpayer under subsection (a), then the Tax 
        Court also shall have jurisdiction over any civil action for a 
        determination under this subsection with respect to all the 
        taxes and taxable periods included in such written statement.

                     (3) Determination by court

        Within 20 days after a proceeding is commenced under paragraph 
    (1), the court shall determine--
            (A) whether or not--
                (i) the making of the assessment under section 6851, 
            6861, or 6862, as the case may be, is reasonable under the 
            circumstances, and
                (ii) the amount so assessed or demanded as a result of 
            the action taken under section 6851, 6861, or 6862 is 
            appropriate under the circumstances, or

            (B) whether or not the levy described in subsection (a)(1) 
        is reasonable under the circumstances.

    If the court determines that proper service was not made on the 
    United States or on the Secretary, as may be appropriate, within 5 
    days after the date of the commencement of the proceeding, then the 
    running of the 20-day period set forth in the preceding sentence 
    shall not begin before the day on which proper service was made on 
    the United States or on the Secretary, as may be appropriate.

                         (4) Order of court

        If the court determines that the making of such levy is 
    unreasonable, that the making of such assessment is unreasonable, or 
    that the amount assessed or demanded is inappropriate, then the 
    court may order the Secretary to release such levy, to abate such 
    assessment, to redetermine (in whole or in part) the amount assessed 
    or demanded, or to take such other action as the court finds 
    appropriate.

(c) Extension of 20-day period where taxpayer so requests

    If the taxpayer requests an extension of the 20-day period set forth 
in subsection (b)(2) and establishes reasonable grounds why such 
extension should be granted, the court may grant an extension of not 
more than 40 additional days.

(d) Computation of days

    For purposes of this section, Saturday, Sunday, or a legal holiday 
in the District of Columbia shall not be counted as the last day of any 
period.

(e) Venue

                         (1) District court

        A civil action in a district court under subsection (b) shall be 
    commenced only in the judicial district described in section 
    1402(a)(1) or (2) of title 28, United States Code.

                       (2) Transfer of actions

        If a civil action is filed under subsection (b) with the Tax 
    Court and such court finds that there is want of jurisdiction 
    because of the jurisdiction provisions of subsection (b)(2), then 
    the Tax Court shall, if such court determines it is in the interest 
    of justice, transfer the civil action to the district court in which 
    the action could have been brought at the time such action was 
    filed. Any civil action so transferred shall proceed as if such 
    action had been filed in the district court to which such action is 
    transferred on the date on which such action was actually filed in 
    the Tax Court from which such action is transferred.

(f) Finality of determination

    Any determination made by a court under this section shall be final 
and conclusive and shall not be reviewed by any other court.

(g) Burden of proof

        (1) Reasonableness of levy, termination, or jeopardy 
                                 assessment

        In a proceeding under subsection (b) involving the issue of 
    whether the making of a levy described in subsection (a)(1) or the 
    making of an assessment under section 6851, 6852, 6861, or 6862 is 
    reasonable under the circumstances, the burden of proof in respect 
    to such issue shall be upon the Secretary.

             (2) Reasonableness of amount of assessment

        In a proceeding under subsection (b) involving the issue of 
    whether an amount assessed or demanded as a result of action taken 
    under section 6851, 6852, 6861, or 6862 is appropriate under the 
    circumstances, the Secretary shall provide a written statement which 
    contains any information with respect to which his determination of 
    the amount assessed was based, but the burden of proof in respect of 
    such issue shall be upon the taxpayer.

(Added Pub. L. 94-455, title XII, Sec. 1204(a), Oct. 4, 1976, 90 Stat. 
1695; amended Pub. L. 98-369, div. A, title IV, Sec. 446(a), July 18, 
1984, 98 Stat. 817; Pub. L. 100-203, title X, Sec. 10713(b)(2)(F), Dec. 
22, 1987, 101 Stat. 1330-470; Pub. L. 100-647, title VI, Sec. 6237(a)-
(e)(3), Nov. 10, 1988, 102 Stat. 3741-3743; Pub. L. 105-206, title III, 
Sec. 3434(a), July 22, 1998, 112 Stat. 760.)


                               Amendments

    1998--Subsec. (a)(1). Pub. L. 105-206 substituted ``Administrative 
review'' for ``Information to taxpayer'' in heading and amended text of 
par. (1) generally. Prior to amendment, text read as follows: ``Within 5 
days after the day on which an assessment is made under section 6851(a), 
6852(a), 6861(a), or 6862, or levy is made under section 6331(a) less 
than 30 days after notice and demand for payment is made under section 
6331(a), the Secretary shall provide the taxpayer with a written 
statement of the information upon which the Secretary relies in making 
such assessment or levy.''
    1988--Pub. L. 100-647, Sec. 6237(e)(3), inserted ``levy or'' after 
``jeopardy'' in section catchline.
    Subsec. (a)(1). Pub. L. 100-647, Sec. 6237(a), inserted ``or levy is 
made under section 6331(a) less than 30 days after notice and demand for 
payment is made under section 6331(a),'' after ``6862,'' and ``or levy'' 
after ``such assessment''.
    Subsec. (a)(3). Pub. L. 100-647, Sec. 6237(b), amended par. (3) 
generally. Prior to amendment, par. (3) read as follows: ``After a 
request for review is made under paragraph (2), the Secretary shall 
determine whether or not--
        ``(A) the making of the assessment under section 6851, 6852, 
    6861, or 6862, as the case may be, is reasonable under the 
    circumstances, and
        ``(B) the amount so assessed or demanded as a result of the 
    action taken under section 6851, 6852, 6861, or 6862 is appropriate 
    under the circumstances.''
    Subsec. (b). Pub. L. 100-647, Sec. 6237(c), amended subsec. (b) 
generally, substituting provisions of pars. (1) to (4) for provisions of 
former pars. (1) to (3) relating to actions permitted, determination by 
district court, and order of district court.
    Subsec. (c). Pub. L. 100-647, Sec. 6237(e)(1), struck out 
``district'' before ``court''.
    Subsec. (e). Pub. L. 100-647, Sec. 6237(d), amended subsec. (e) 
generally. Prior to amendment, subsec. (e) read as follows: ``A civil 
action under subsection (b) shall be commenced only in the judicial 
district described in section 1402(a)(1) or (2) of title 28, United 
States Code.''
    Subsec. (f). Pub. L. 100-647, Sec. 6237(e)(1), struck out 
``district'' after ``made by a''.
    Subsec. (g)(1). Pub. L. 100-647, Sec. 6237(e)(2), in heading 
substituted ``levy, termination,'' for ``termination'' and in text 
substituted ``a proceeding'' for ``an action'' and inserted ``the making 
of a levy described in subsection (a)(1) or'' after ``whether''.
    Subsec. (g)(2). Pub. L. 100-647, Sec. 6237(e)(2)(C), substituted ``a 
proceeding'' for ``an action''.
    1987--Subsec. (a)(1). Pub. L. 100-203, Sec. 10713(b)(2)(F)(i), 
substituted ``6851(a), 6852(a)'' for ``6851(a),''.
    Subsecs. (a)(3)(A), (B), (b)(2)(A), (B), (g)(1), (2). Pub. L. 100-
203, Sec. 10713(b)(2)(F)(ii), substituted ``6851, 6852,'' for ``6851,'' 
wherever appearing.
    1984--Subsec. (b)(2). Pub. L. 98-369 inserted provision that if the 
court determines that proper service was not made on the United States 
within 5 days after the date of the commencement of the action, the 
running of the 20-day period shall not begin before the day on which 
proper service was made on the United States.


                    Effective Date of 1998 Amendment

    Pub. L. 105-206, title III, Sec. 3434(b), July 22, 1998, 112 Stat. 
760, provided that: ``The amendment made by this section [amending this 
section] shall apply to taxes assessed and levies made after the date of 
the enactment of this Act [July 22, 1998].''


                    Effective Date of 1988 Amendment

    Section 6237(f) of Pub. L. 100-647 provided that: ``The amendments 
made by this section [amending this section] shall apply to jeopardy 
levies issued and assessments made on or after July 1, 1989.''


                    Effective Date of 1984 Amendment

    Section 446(b) of Pub. L. 98-369 provided that: ``The amendment made 
by subsection (a) [amending this section] shall apply to actions 
commenced after the date of the enactment of this Act [July 18, 1984].''


                             Effective Date

    Section applicable with respect to action taken under section 6851, 
6861, or 6862 of this title where notice and demand takes place after 
Feb. 28, 1977, see section 1204(d) of Pub. L. 94-455, as amended, set 
out as a note under section 6851 of this title.

                  Section Referred to in Other Sections

    This section is referred to in sections 6851, 6863, 6867 of this 
title; title 28 section 1346.
