[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 1124 Introduced in Senate (IS)]







110th CONGRESS
  1st Session
                                S. 1124

To amend the Internal Revenue Code of 1986 to simplify, modernize, and 
    improve public notice of and access to tax lien information by 
   providing for a national, Internet accessible, filing system for 
               Federal tax liens, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 17, 2007

Mr. Levin (for himself and Mr. Coleman) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to simplify, modernize, and 
    improve public notice of and access to tax lien information by 
   providing for a national, Internet accessible, filing system for 
               Federal tax liens, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE.

    (a) Short Title.--This Act may be cited as the ``Tax Lien 
Simplification Act''.
    (b) Amendment of 1986 Code.--Except as otherwise expressly 
provided, whenever in this Act an amendment or repeal is expressed in 
terms of an amendment to, or repeal of, a section or other provision, 
the reference shall be considered to be made to a section or other 
provision of the Internal Revenue Code of 1986.

SEC. 2. FINDINGS AND PURPOSE.

    (a) Findings.--Congress makes the following findings:
            (1) The present decentralized system for filing Federal tax 
        liens in local property offices, which was established before 
        the advent of modern computers, the Internet, and e-government 
        programs, is inefficient, burdensome, and expensive.
            (2) Current technology permits the creation of a 
        centralized Federal tax lien filing system which can provide 
        for enhanced public notice of and access to accurate tax lien 
        information in a manner that is more efficient, more timely, 
        and less burdensome than the existing tax lien filing system; 
        which would expedite the release of liens; and which would be 
        less expensive for both taxpayers and users.
    (b) Purpose.--The purpose of this Act is to simplify and modernize 
the process for filing notices of Federal tax liens, to improve public 
access to tax lien information, and to save taxpayer dollars by 
establishing a nationwide, Internet accessible, and fully searchable 
filing system for Federal tax liens which would replace the current 
system of local tax lien filings.

SEC. 3. NATIONAL TAX LIEN FILING SYSTEM.

    (a) Filing of Notice of Lien.--Subsection (f) of section 6323 
(relating to validity and priority against certain persons) is amended 
to read as follows:
    ``(f) Filing of Notice; Form.--
            ``(1) Filing of notice.--The notice referred to in 
        subsection (a) shall be filed in the national Federal tax lien 
        registry established under subsection (k). The filing of a 
        notice of lien, or a certificate of release, discharge, 
        subordination, or nonattachment of lien, in the national 
        Federal tax lien registry shall be effective for purposes of 
        determining lien priority regardless of the nature or location 
        of the property interest to which the lien attaches.
            ``(2) Form.--The form and content of the notice referred to 
        in subsection (a) shall be prescribed by the Secretary. Such 
        notice shall be valid notwithstanding any other provision of 
        law regarding the form or content of a notice of lien.
            ``(3) Other national filing systems.--The filing of a 
        notice of lien shall be governed by this title and shall not be 
        subject to any other Federal law establishing a place or places 
        for the filing of liens or encumbrances under a national filing 
        system.''.
    (b) Refiling of Notice.--Paragraph (2) of section 6323(g) (relating 
to refiling of notice) is amended to read as follows:
            ``(2) Refiling.--A notice of lien may be refiled in the 
        national Federal tax lien registry established under subsection 
        (k).''.
    (c) Release of Tax Liens or Discharge of Property.--
            (1) In general.--Section 6325(a) (relating to release of 
        lien) is amended by inserting ``, and shall cause the 
        certificate of release to be filed in the national Federal tax 
        lien registry established under section 6323(k),'' after 
        ``internal revenue tax''.
            (2) Release of tax liens expedited from 30 to 10 days.--
        Section 6325(a) (relating to release of lien) is amended by 
        striking ``not later than 30 days'' and inserting ``not later 
        than 10 days''.
            (3) Discharge of property from lien.--Section 6325(b) 
        (relating to discharge of property) is amended--
                    (A) by inserting ``, and shall cause the 
                certificate of discharge to be filed in the national 
                Federal tax lien registry established under section 
                6323(k),'' after ``under this chapter'' in paragraph 
                (1),
                    (B) by inserting ``, and shall cause the 
                certificate of discharge to be filed in such national 
                Federal tax lien registry,'' after ``property subject 
                to the lien'' in paragraph (2),
                    (C) by inserting ``, and shall cause the 
                certificate of discharge to be filed in such national 
                Federal tax lien registry,'' after ``property subject 
                to the lien'' in paragraph (3), and
                    (D) by inserting ``, and shall cause the 
                certificate of discharge of property to be filed in 
                such national Federal tax lien registry,'' after 
                ``certificate of discharge of such property'' in 
                paragraph (4).
            (4) Discharge of property from estate or gift tax lien.--
        Section 6325(c) (relating to estate or gift tax) is amended by 
        inserting ``, and shall cause the certificate of discharge to 
        be filed in the national Federal tax lien registry established 
        under section 6323(k),'' after ``imposed by section 6324''.
            (5) Subordination of lien.--Section 6325(d) (relating to 
        subordination of lien) is amended by inserting ``, and shall 
        cause the certificate of subordination to be filed in the 
        national Federal tax lien registry established under section 
        6323(k),'' after ``subject to such lien''.
            (6) Nonattachment of lien.--Section 6325(e) (relating to 
        nonattachment of lien) is amended by inserting ``, and shall 
        cause the certificate of nonattachment to be filed in the 
        national Federal tax lien registry established under section 
        6323(k),'' after ``property of such person''.
            (7) Effect of certificate.--Paragraphs (1) and (2)(B) of 
        section 6325(f) (relating to effect of certificate) are each 
        amended by striking ``in the same office as the notice of lien 
        to which it relates is filed (if such notice of lien has been 
        filed)'' and inserting ``in the national Federal tax lien 
        registry established under section 6323(k)''.
            (8) Release following administrative appeal.--Section 
        6326(b) (relating to certificate of release) is amended--
                    (A) by striking ``and shall include'' and insert 
                ``, shall include'', and
                    (B) by inserting ``, and shall cause the 
                certificate of release to be filed in the national 
                Federal tax lien registry established under section 
                6323(k),'' after ``erroneous''.
            (9) Conforming amendments.--Section 6325 is amended by 
        striking subsection (g) and by redesignating subsection (h) as 
        subsection (g).
    (d) National Federal Tax Lien Registry.--
            (1) In general.--Section 6323 is amended by adding at the 
        end the following new subsection:
    ``(k) National Registry.--The national Federal tax lien registry 
referred to in subsection (f)(1) shall be established and maintained by 
the Secretary and shall be accessible to and searchable by the public 
through the Internet at no cost to access or search. The registry shall 
identify the taxpayer to whom the Federal tax lien applies and reflect 
the date and time the notice of lien was filed, and shall be made 
searchable by, at a minimum, taxpayer name, the State of the taxpayer's 
address as shown on the notice of lien, the type of tax, and the tax 
period, and, when the Secretary determines it is feasible, by property. 
The registry shall also provide for the filing of certificates of 
release, discharge, subordination, and nonattachment of Federal tax 
liens, as authorized in sections 6325 and 6326, and may provide for 
publishing such other documents or information with respect to Federal 
tax liens as the Secretary may by regulation provide.''.
            (2) Administrative action.--The Secretary of the Treasury 
        shall issue regulations or other guidance providing for the 
        maintenance and use of the national Federal tax lien registry 
        established under section 6323(k) of the Internal Revenue Code 
        of 1986. The Secretary of the Treasury shall take appropriate 
        steps to secure and prevent tampering with the data recorded 
        therein. Prior to implementation of such registry, the 
        Secretary of the Treasury shall review the information 
        currently provided in public lien filings and determine whether 
        any such information should be excluded or protected from 
        public viewing in such registry.
    (e) Transition Rules.--The Secretary of the Treasury may by 
regulation prescribe for the continued filing of notices of Federal tax 
lien in the offices of the States, counties and other governmental 
subdivisions after December 31, 2008, for an appropriate period to 
permit an orderly transition to the national Federal tax lien registry 
established under section 6323(k) of the Internal Revenue Code of 1986.
    (f) Effective Date.--The amendments made by this section shall 
apply to notices of lien filed after December 31, 2008. The national 
Federal tax lien registry (established under section 6323(k) of the 
Internal Revenue Code of 1986) shall be made operational as of January 
1, 2009, whether or not the Secretary of the Treasury has promulgated 
final regulations establishing such registry.
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