[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6439 Introduced in House (IH)]

111th CONGRESS
  2d Session
                                H. R. 6439

     To amend the Internal Revenue Code of 1986 to require certain 
 determinations before the filing of all notices of Federal tax liens 
   and supervisory approval before the filing of certain notices of 
               Federal tax liens, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           November 18, 2010

   Mr. Hastings of Florida introduced the following bill; which was 
  referred to the Committee on Ways and Means, and in addition to the 
   Committee on Financial Services, for a period to be subsequently 
   determined by the Speaker, in each case for consideration of such 
 provisions as fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
     To amend the Internal Revenue Code of 1986 to require certain 
 determinations before the filing of all notices of Federal tax liens 
   and supervisory approval before the filing of certain notices of 
               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.

    This Act may be cited as the ``Targeted Tax Lien Act of 2010''.

SEC. 2. MODIFICATIONS TO LIEN NOTICE FILING PROCEDURES.

    (a) In General.--Section 6323 of the Internal Revenue Code of 1986 
(relating to validity and priority of tax liens against certain 
persons) is amended by adding at the end the following new subsection:
    ``(k) Required Procedures Before Filing Notice of Lien.--
            ``(1) Secretarial determination.--
                    ``(A) In general.--The Secretary may not file a 
                notice of lien with respect to any taxpayer unless--
                            ``(i) the lien attaches to distrainable 
                        property, and
                            ``(ii) weighing all facts and circumstances 
                        pertaining to the collection of a taxpayer's 
                        delinquent tax assessment, the Secretary 
                        determines that--
                                    ``(I) the benefit to the Federal 
                                Government of the filing outweighs the 
                                harm to the taxpayer, and
                                    ``(II) the filing will not 
                                jeopardize the taxpayer's prospective 
                                ability--
                                            ``(aa) to comply with the 
                                        internal revenue laws, and
                                            ``(bb) if the taxpayer is 
                                        an otherwise viable business 
                                        taxpayer, to continue to secure 
                                        funding to maintain business 
                                        operations.
                    ``(B) Factors to consider.--In making the 
                determination under subparagraph (A)(ii), the Secretary 
                shall consider--
                            ``(i) the amount due,
                            ``(ii) the lien filing fee,
                            ``(iii) the value of the taxpayer's equity 
                        in the property or rights to property,
                            ``(iv) the taxpayer's tax compliance 
                        history,
                            ``(v) extenuating circumstances, if any, 
                        that explain the delinquency, and
                            ``(vi) the effect of the filing on the 
                        taxpayer's ability to obtain financing, 
                        generate future income, and pay current and 
                        future tax liabilities.
            ``(2) Taxpayer appeal prior to filing.--The Secretary may 
        not file a notice of lien with respect to any taxpayer unless--
                    ``(A) the Secretary notifies the taxpayer that the 
                Secretary has determined to file such a notice with 
                respect to the taxpayer, and
                    ``(B) the taxpayer is afforded an opportunity to 
                appeal such determination to the Internal Revenue 
                Service Office of Appeals.
        The Secretary shall make reasonable efforts to provide the 
        notice under subparagraph (A) by telephone or direct personal 
        contact.
            ``(3) Supervisory approval required for liens in certain 
        cases.--
                    ``(A) In general.--In any case to which this 
                paragraph applies, a notice of lien may not be filed 
                unless the immediate supervisor (or such higher level 
                official as the Secretary may designate) of the 
                individual making the initial determination under 
                paragraph (1) has individually reviewed and approved 
                such determination.
                    ``(B) Cases to which paragraph applies.--This 
                paragraph shall apply in any case in which--
                            ``(i) the collection of the liability would 
                        create an economic hardship within the meaning 
                        of section 6343(a)(1)(D),
                            ``(ii) the taxpayer has no equity in 
                        assets, or
                            ``(iii) there has been no personal contact 
                        with the taxpayer to discuss collection 
                        alternatives, including an offer in compromise 
                        and partial payment installment agreement.''.
    (b) Effective Date.--The amendment made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 3. MODIFICATION OF REQUIREMENTS RELATING TO TAX LIEN INFORMATION 
              CONTAINED IN CONSUMER CREDIT REPORTS.

    (a) In General.--Paragraph (3) of section 605(a) of the Fair Credit 
Reporting Act (15 U.S.C. 1681c(a)(3)) (relating to information 
contained in consumer reports) is amended to read as follows:
            ``(3) Tax liens.--The following tax liens:
                    ``(A) Any tax lien released pursuant to section 
                6325(a) of the Internal Revenue Code of 1986 not more 
                than 2 years after the date that the notice of such 
                lien was filed.
                    ``(B) Any tax lien released pursuant to section 
                6325(a) of such Code--
                            ``(i) more than 2 years after the date that 
                        the notice of such lien was filed, and
                            ``(ii) more than 2 years before the report.
                    ``(C) Any tax lien if--
                            ``(i) the notice of such lien was not 
                        refiled during the required refiling period (as 
                        defined in section 6325(g)(3) of such Code), 
                        and
                            ``(ii) such period ends more than 6 years 
                        before the report.
                    ``(D) Any tax lien the notice of which is withdrawn 
                pursuant to section 6323(j)(1) of such Code.
                    ``(E) Any tax lien released pursuant to section 
                6326(b) of such Code if the notice of such lien was 
                erroneously filed.''.
    (b) Effective Date.--The amendment made by this section shall take 
effect on the date of the enactment of this Act.
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