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[Code of Federal Regulations]
[Title 26, Volume 17]
[Revised as of April 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR400.1-1]
[Page 734-737]
TITLE 26--INTERNAL REVENUE
CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY--
(Continued)
PART 400--TEMPORARY REGULATIONS UNDER THE FEDERAL TAX LIEN ACT OF 1966--Table of Contents
Sec. 400.1- 1 Refiling of notice of tax lien.
(a) Scope. This section provides rules with respect to the
provisions contained in section 6323(g), relating to the refiling of a
notice of lien arising under section 6321. In general, section 6323(g)
contains new rules requiring the Internal Revenue Service to refile a
notice of lien during the 1-year period ending 30 days after the
expiration of the normal 6-year statutory period for collection of an
assessed tax liability, and each succeeding period of 6 years, in order
to maintain the effectiveness of a notice of lien. These provisions in
section 6323 were added by section 101(a) of the Federal Tax Lien Act of
1966 (80 Stat. 1125), effective after November 2, 1966.
(b) Requirement to refile. In order to continue the effect of a
notice of lien, the notice must be refiled in the place described in
paragraph (c) of this section during the required refiling period
( described in paragraph (d) of this section). In the event that two or
more notices of lien are filed with respect to a particular tax
assessment, the failure to comply with the provisions of paragraphs
(c)(1)( i) and (d) of this section in respect of one of the notices of
lien does not affect the effectiveness of the refiling of the other
notice or notices of lien. Thus, except for the filing of a notice of
lien required by paragraph (c)(1)(ii) of this section relating to a
change of residence, the validity of any refiling of a notice of lien is
not affected by the refiling or non- refiling of any other notice of
lien. The effectiveness of a timely refiled notice of lien relates back
to the date on which the notice of lien was effective before the
refiling. If the district director fails to refile a notice of lien in
the manner described in paragraphs (c) and (d) of this section, the
notice of lien is not effective, after the expiration of the required
refiling period, as against any person without regard to when the
interest of the person in the property subject to the lien was acquired.
However, the failure of the district director to refile a notice of lien
during the required refiling period will not affect the effectiveness of
the notice with respect to (1) property which is the subject matter of a
suit, to which the United States is a party, commenced prior to the
expiration of the required refiling period, or (2) property which has
been levied upon by the United States prior to the expiration of the
required refiling period. Failure to refile a notice of lien does not
affect the existence of the lien. If a notice of lien is not refiled,
and if the lien is still in existence, the Internal Revenue Service may
nevertheless file a new notice of lien either on the form prescribed for
the filing of a notice of lien or on the form prescribed for refiling a
notice of lien. This new filing must meet the requirements of section
6323(f) and is effective from the date on which such filing is made.
Upon written request of any person who has a proper interest, any
district director may issue a certificate of release of lien if notice
of the lien has not been refiled within the required refiling period and
the entire liability for the tax has been satisfied or has become
unenforceable as a matter of law. Such request should be sent to the
district director for the internal revenue district shown on the notice
of lien. For provisions relating to certificates of release of lien, see
section 6325.
(c) Place for refiling notice of lien-- (1) In general. A notice of
lien refiled during the required refiling period (described in paragraph
(d) of this section) shall be effective only--
( i) If the notice of lien is refiled in the office in which the
prior notice of lien (including a refiled notice) was filed under the
provisions of section 6323; and
( ii) In any case in which 90 days or more prior to the date the
refiling of
[[Page 735]]
the notice of lien under subdivision ( i) of this subparagraph is
completed, the Internal Revenue Service receives written information (in
the manner described in subparagraph (2) of this paragraph (b))
concerning a change in the taxpayer's residence, if a notice of such
lien is also filed in accordance with section 6323f)(1)(A)(ii) in the
State in which such new residence is located (or, if such new residence
is located without the United States, in the District of Columbia). If
on or before such 90th day more than one written notice is received
concerning a change in the taxpayer's residence, a notice of lien is
required by this subdivision to be filed only with respect to the
residence shown on the written notice received on the most recent date.
This subdivision is applicable regardless of whether the taxpayer
resides at the new residence on the date the refiling of notice of lien
under subdivision ( i) of this subparagraph is completed.
(2) Notice of change of taxpayer's residence--( i) In general. Except
as provided in subdivision (ii) of this subparagraph, for purposes of
this section, a notice of change of a taxpayer's residence will be
effective only if it is received, in writing, by the Internal Revenue
Service from the taxpayer or his representative, relates to an unpaid
tax liability of the taxpayer, and states the taxpayer's name and
address of his new residence. Although it is not necessary that a
written notice contain the taxpayer's identifying number authorized by
section 6109, it is preferable that it include such number. For purposes
of this subdivision, a notice of change of a taxpayer's residence shown
on a return or an amended return (including a return of the same tax)
will not be effective to notify the Internal Revenue Service.
(ii) By return or amended return. For purposes of this section, in
the case of a notice of lien which relates to an assessment of tax made
after December 31, 1966, a notice of change of a taxpayer's residence
will also be effective if it is contained in a return or amended return
of the same type of tax filed with the Internal Revenue Service by the
taxpayer which on its face indicates that there is a change in the
taxpayer's address and correctly states the taxpayer's name, address of
his new residence, and his identifying number required by section 6109.
(iii) Other rules applicable. Other than the means specified in
subdivisions ( i) and (ii) of this subparagraph, no communication (either
written or oral) to the Internal Revenue Service will be considered
effective as notice of a change of a taxpayer's residence under this
section, whether or not the Service has actual notice of the taxpayer's
residence. For the purpose of determining the date on which a notice of
change of a taxpayer's residence is received under this section, the
notice shall be treated as received on the date it is actually received
by the Internal Revenue Service without reference to the provisions of
section 7502.
(3) Examples. The provisions of this section may be illustrated by
the following examples:
Example 1. A, a delinquent taxpayer, is a resident of M State and
owns real property in N State. Notices of lien are properly filed in M
and N States. In order to continue the effect of the notice of lien
filed in M State, the Internal Revenue Service must refile, during the
required refiling period, the notice of lien with the appropriate office
in M State but is not required to refile the notice of lien with the
appropriate office in N State. Similarly, in order to continue the
effect of the notice of lien filed in N State, the Internal Revenue
Service must refile, during the required refiling period, the notice of
lien with the appropriate office in N State but is not required to
refile the notice of lien with the appropriate office in M State.
Example 2. B, a delinquent taxpayer, is a resident of M State.
Notice of lien is properly filed in that State. One year before the
required refiling period, B establishes his residence in N State, and B
immediately notifies the Internal Revenue Service of his change in
residence in accordance with the provisions of paragraph (c)(2) of this
section. In order to continue the effect of the notice of lien filed in
M State, the Internal Revenue Service must refile, during the required
refiling period, notices of lien with ( i) the appropriate office in M
State, and (ii) the appropriate office in N State because B properly
notified the Internal Revenue Service of his change in residence to N
State more than 89 days prior to the date refiling of the notice of lien
in M State is completed. If B did not notify the Internal Revenue
Service of his change in residence to N State in accordance with the
provisions of paragraph (c)(2) of this section, the Internal Revenue
Service would not be required to file a notice of lien
[[Page 736]]
in N State, even if the Internal Revenue Service had actual notice of
B's change in residence to N State. In this latter case, in order to
continue the effect of the notice of lien filed in M State, the Internal
Revenue Service must refile, during the required refiling period, the
notice of lien only with the appropriate office in M State.
Example 3. C, a delinquent taxpayer, is a resident of O State.
Notice of lien is properly filed in that State. Four years before the
required refiling period, C establishes his residence in P State, and C
immediately notifies the Internal Revenue Service of his change in
residence in accordance with the provisions of paragraph (c)(2) of this
section. Three years before the required refiling period, C establishes
his residence in R State, and again C immediately notifies the Internal
Revenue Service of his change in residence in accordance with the
provisions of paragraph (c)(2) of this section. In order to continue the
effect of the notice of lien filed in O State, the Internal Revenue
Service must refile, during the required refiling period, notices of
lien with ( i) the appropriate office in O State, and (ii) the
appropriate office in R State since the notice received by the Service
of C's change in residence to R State was the most recent notice
received more than 89 days prior to the date refiling in O State is
completed. The notice of lien is not required to be filed in P State,
even though C properly notified the Internal Revenue Service of his
change in residence to P State, because such notice is not the most
recent one received.
Example 4. Assume the same facts as in example 3, except that C does
not notify the Internal Revenue Service of his change in residence to R
State in accordance with the provisions of paragraph (c )(2) of this
section. In order to continue the effect of the notice of lien filed in
O State, the Internal Revenue Service must refile, during the required
refiling period, the notice of lien with ( i) the appropriate office in O
State, and (ii) the appropriate office in P State because C properly
notified the Internal Revenue Service of his change in residence to P
State, even though C is not a resident of P State on the date refiling
of the notice of lien in O State is completed. The Internal Revenue
Service is not required to file a notice of lien in R State because C
did not properly notify the Service of his change in residence to R
State.
Example 5. D, a delinquent taxpayer, is a resident of M State and
owns real property in N and O States. The Internal Revenue Service
properly files notices of lien in M, N, and O States. Five years and 6
months after the date of the assessment shown on the notice of lien, D
establishes his residence in P State, and at that time the Internal
Revenue Service received from D a notification of his change in
residence in accordance with the provisions of paragraph (c)(2) of this
section. On a date which is 5 years and 7 months after the date of the
assessment shown on the notice of lien, the Internal Revenue Service
properly refiles notices of lien in M, N, and O States which refilings
continue the effect of each of the notices of lien. The Internal Revenue
Service is not required to file a notice of lien in P State because D
did not notify the Internal Revenue Service of his change of residence
to P State more than 89 days prior to the date each of the refilings in
M, N, and O States was completed.
Example 6. Assume the same facts as in example 5 except that the
refiling of the notice of lien in O State occurs 100 days after D
notifies the Internal Revenue Service of his change in residence to P
State in accordance with the provisions of paragraph (c )(2) of this
section. In order to continue the effect of the notice of lien filed in
O State, in addition to refiling the notice of lien in O State, the
Internal Revenue Service must also file, during the required refiling
period, a notice of lien in P State because D properly notified the
Internal Revenue Service of his change of residence to P State more than
89 days prior to the date the refiling in O State was completed.
However, in order to maintain the effect of the refilings in M and N
States, the Internal Revenue Service is not required to file, during the
required refiling period, the notice of lien in P State since D did not
notify the Internal Revenue Service of his change in residence to P
State more than 89 days prior to the date the refilings in M and N
States were completed.
Example 7. E, a delinquent taxpayer, is a resident of T State.
Because T State has not designated one office in the case of personal
property for filing notices of lien in accordance with the provisions of
section 6323(f)(1)(A)(ii), the Internal Revenue Service properly files a
notice of lien with the clerk of the appropriate United States district
court. However, solely as a matter of convenience for those who may have
occasion to search for notices of lien, and not as a matter of legal
effectiveness, the Internal Revenue Service also files notice of lien
with the recorder of deeds of the county in T State where E resides. In
addition, the Internal Revenue Service sent a copy of the notice of lien
to the X Life Insurance Company to give the Company actual notice of the
notice of lien. In order to continue the effect of the notice of lien,
the Internal Revenue Service must refile, during the required refiling
period, the notice of lien with the clerk of the appropriate U.S.
district court. It is not necessary in order to continue the effect of
the notice of the lien to refile the notice of lien with the recorder of
deeds of the county where E resides because the refiling of the notice
of lien with the recorder of deeds does not constitute a proper filing
for the purposes of section 6323(f). In addition, it is not necessary to
continue the effect of the notice
[[Page 737]]
of lien under this section to send a copy of the notice of lien to the X
Life Insurance Company because the sending of a notice of lien to an
insurance company does not constitute a filing for the purposes of
section 6323 and, thus, a refiling with an insurance company is not
required under this section.
( d) Required refiling period--(1) In general. For the purpose of
this section, except as provided in subparagraph (2) of this paragraph
(d), the term ``required refiling period'' means--
( i) The 1-year period ending 30 days after the expiration of 6 years
after the date of the assessment of the tax, and
(ii) The 1-year period ending with the expiration of 6 years after
the close of the preceding required refiling period for such notice of
lien.
(2) Tax assessments made before January 1, 1962. If the assessment
of the tax is made before January 1, 1962, the first required refiling
period shall be the calendar year 1967. Thus, to maintain the
effectiveness of any notice of lien on file which relates to a lien
which arose before January 1, 1962, the Internal Revenue Service will
refile the notice of lien during the calendar year 1967. The second
required refiling period for any such notice of lien is the calendar
year 1973.
(3) Examples. The provisions of this paragraph may be illustrated by the following examples:
Example 1. On March 1, 1963, an assessment of tax is made against B,
a delinquent taxpayer, and a lien for the amount of the assessment
arises on that date. On July 1, 1963, a notice of lien is properly
filed. The notice of lien filed on July 1, 1963, is effective up to and
including March 31, 1969. The first required refiling period for the
notice of lien begins on April 1, 1968, and ends on March 31, 1969. A
refiling of the notice of lien during that period will extend the
effectiveness of the notice of lien filed on July 1, 1963, up to and
including March 31, 1975. The second required refiling period for the
notice of lien begins on April 1, 1974, and ends on March 31, 1975.
Example 2. Assume the same facts as in example 1, except that the
Internal Revenue Service fails to refile a notice of lien during the
first required refiling period (Apr. 1, 1968, through Mar. 31, 1969).
However, a notice of lien which meets the requirements of section
6323(f) is filed on June 2, 1971. Because of this filing, the notice of
lien filed on June 2, 1971, is effective as of June 2, 1971. That notice
must itself be refiled during the 1-year period ending on March 31,
1975, if it is to continue in effect after March 31, 1975. As in example
1, the second required refiling period for the notice of lien begins on
April 1, 1974, and ends on March 31, 1975.
Example 3. On April 1, 1960, an assessment of tax is made against B,
a delinquent taxpayer, and a tax lien for the amount of the assessment
arises on that date. On June 1, 1962, a notice of lien is properly
filed. Because the assessment of tax was made before January 1, 1962,
the notice of lien filed on June 1, 1962, is effective up to and
including December 31, 1967. The first required refiling period for the
notice of lien is the calendar year 1967. A refiling of the notice of
lien during 1967 will extend the effectiveness of the notice of lien
filed on June 1, 1962, up to and including December 31, 1973. The second
required refiling period for the notice of lien is the calendar year 1973.
[T.D. 6932, 32 FR 14835, Oct. 18, 1967]