I 111th CONGRESS 2d Session H. R. 6439 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.

1.

Short title

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

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.

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.