II 

112TH CONGRESS 

1ST SESSION S. 1390 

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 

JULY 20 (legislative day, JULY 19), 2011 

Mr. LEVIN (for himself and Mr. BEGICH) 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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This title may be cited as the ‘‘Tax Lien Simplifica5 tion Act’’. 


tjames on DSKG8SOYB1PROD with BILLS
2 

•S 1390 IS

1 SEC. 2. FINDINGS AND PURPOSE. 

2 (a) FINDINGS.—Congress makes the following find3 ings: 

4 (1) The present decentralized system for filing 

5 Federal tax liens in local property offices, which was 

6 established before the advent of modern computers, 

7 the Internet, and e-government programs, is ineffi8 cient, burdensome, and expensive. 

9 (2) Current technology permits the creation of 

10 a centralized Federal tax lien filing system which 

11 can provide for enhanced public notice of and access 

12 to accurate tax lien information in a manner that is 

13 more efficient, more timely, and less burdensome 

14 than the existing tax lien filing system; which would 

15 expedite the release of liens; and which would be less 

16 expensive for both taxpayers and users. 

17 (b) PURPOSE.—The purpose of this Act is to simplify 

18 and modernize the process for filing notices of Federal tax 

19 liens, to improve public access to tax lien information, and 

20 to save taxpayer dollars by establishing a nationwide, 

21 Internet accessible, and fully searchable filing system for 

22 Federal tax liens which would replace the current system 

23 of local tax lien filings. 


tjames on DSKG8SOYB1PROD with BILLS
3 

•S 1390 IS

1 SEC. 3. NATIONAL TAX LIEN FILING SYSTEM. 

2 (a) FILING OF NOTICE OF LIEN.—Subsection (f) of 

3 section 6323 of the Internal Revenue Code of 1986 is 

4 amended to read as follows: 

5 ‘‘(f) FILING OF NOTICE; FORM.— 

6 ‘‘(1) FILING OF NOTICE.—The notice referred 

7 to in subsection (a) shall be filed in the Federal tax 

8 lien registry operated under subsection (k). The fil9 ing of a notice of lien, or a certificate of release, dis10 charge, subordination, or nonattachment of lien, or 

11 a notice of withdrawal of a notice of lien, in the Fed12 eral tax lien registry shall be effective for purposes 

13 of determining lien priority regardless of the nature 

14 or location of the property interest to which the lien 

15 attaches. 

16 ‘‘(2) FORM.—The form and content of the no17 tice referred to in subsection (a) shall be prescribed 

18 by the Secretary. Such notice shall be valid notwith19 standing any other provision of law regarding the 

20 form or content of a notice of lien. 

21 ‘‘(3) OTHER NATIONAL FILING SYSTEMS.— 

22 Once the Federal tax lien registry is operational 

23 under subsection (k), the filing of a notice of lien 

24 shall be governed by this title and shall not be sub25 ject to any other Federal law establishing a place or 


tjames on DSKG8SOYB1PROD with BILLS
4 

•S 1390 IS

1 places for the filing of liens or encumbrances under 

2 a national filing system.’’. 

3 (b) REFILING OF NOTICE.—Paragraph (2) of section 

4 6323(g) of the Internal Revenue Code of 1986 is amended 

5 to read as follows: 

6 ‘‘(2) REFILING.—A notice of lien may be refiled 

7 in the Federal tax lien registry operated under sub8 section (k).’’. 

9 (c) RELEASE OF TAX LIENS OR DISCHARGE OF

10 PROPERTY.— 

11 (1) IN GENERAL.—Section 6325(a) of the In12 ternal Revenue Code of 1986 is amended by insert13 ing ‘‘, and shall cause the certificate of release to be 

14 filed in the Federal tax lien registry operated under 

15 section 6323(k),’’ after ‘‘internal revenue tax’’. 

16 (2) RELEASE OF TAX LIENS EXPEDITED FROM

17 30 TO 20 DAYS.—Section 6325(a) of such Code is 

18 amended by striking ‘‘not later than 30 days’’ and 

19 inserting ‘‘not later than 20 days’’. 

20 (3) DISCHARGE OF PROPERTY FROM LIEN.— 

21 Section 6325(b) of such Code is amended— 

22 (A) by inserting ‘‘, and shall cause the cer23 tificate of discharge to be filed in the Federal 

24 tax lien registry operated under section 


tjames on DSKG8SOYB1PROD with BILLS
5 

•S 1390 IS

1 6323(k),’’ after ‘‘under this chapter’’ in para2 graph (1), 

3 (B) by inserting ‘‘, and shall cause the cer4 tificate of discharge to be filed in such Federal 

5 tax lien registry,’’ after ‘‘property subject to the 

6 lien’’ in paragraph (2), 

7 (C) by inserting ‘‘, and shall cause the cer8 tificate of discharge to be filed in such Federal 

9 tax lien registry,’’ after ‘‘property subject to the 

10 lien’’ in paragraph (3), and 

11 (D) by inserting ‘‘, and shall cause the cer12 tificate of discharge of property to be filed in 

13 such Federal tax lien registry,’’ after ‘‘certifi14 cate of discharge of such property’’ in para15 graph (4). 

16 (4) DISCHARGE OF PROPERTY FROM ESTATE

17 OR GIFT TAX LIEN.—Section 6325(c) of such Code 

18 is amended by inserting ‘‘, and shall cause the cer19 tificate of discharge to be filed in the Federal tax 

20 lien registry operated under section 6323(k),’’ after 

21 ‘‘imposed by section 6324’’. 

22 (5) SUBORDINATION OF LIEN.—Section 

23 6325(d) of such Code is amended by inserting ‘‘, 

24 and shall cause the certificate of subordination to be 


tjames on DSKG8SOYB1PROD with BILLS
6 

•S 1390 IS

1 filed in the Federal tax lien registry operated under 

2 section 6323(k),’’ after ‘‘subject to such lien’’. 

3 (6) NONATTACHMENT OF LIEN.—Section 

4 6325(e) of such Code is amended by inserting ‘‘, and 

5 shall cause the certificate of nonattachment to be 

6 filed in the Federal tax lien registry operated under 

7 section 6323(k),’’ after ‘‘property of such person’’. 

8 (7) EFFECT OF CERTIFICATE.—Paragraphs (1) 

9 and (2)(B) of section 6325(f) of such Code are each 

10 amended by striking ‘‘in the same office as the no11 tice of lien to which it relates is filed (if such notice 

12 of lien has been filed)’’ and inserting ‘‘in the Federal 

13 tax lien registry operated under section 6323(k)’’. 

14 (8) RELEASE FOLLOWING ADMINISTRATIVE AP15 PEAL.—Section 6326(b) of such Code is amended— 

16 (A) by striking ‘‘and shall include’’ and in17 sert ‘‘, shall include’’, and 

18 (B) by inserting ‘‘, and shall cause the cer19 tificate of release to be filed in the Federal tax 

20 lien registry operated under section 6323(k),’’ 

21 after ‘‘erroneous’’. 

22 (9) WITHDRAWAL OF NOTICE.—Section 

23 6323(j)(1) of such Code is amended by striking ‘‘at 

24 the same office as the withdrawn notice’’ and insertVerDate Mar 15 2010 02:01 Jul 21, 2011 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S1390.IS S1390

tjames on DSKG8SOYB1PROD with BILLS
7 

•S 1390 IS

1 ing ‘‘in the Federal tax lien registry operated under 

2 section 6323(k)’’. 

3 (10) CONFORMING AMENDMENTS.—Section 

4 6325 of such Code is amended by striking sub5 section (g) and by redesignating subsection (h) as 

6 subsection (g). 

7 (d) FEDERAL TAX LIEN REGISTRY.—Section 6323 

8 of the Internal Revenue Code of 1986 is amended by add9 ing at the end the following new subsection: 

10 ‘‘(k) FEDERAL TAX LIEN REGISTRY.— 

11 ‘‘(1) IN GENERAL.—The Federal tax lien reg12 istry operated under this subsection shall be estab13 lished and maintained by the Secretary and shall be 

14 accessible to and searchable by the public through 

15 the Internet at no cost to access or search. The reg16 istry shall identify the taxpayer to whom the Federal 

17 tax lien applies and reflect the date and time the no18 tice of lien was filed, and shall be made searchable 

19 by, at a minimum, taxpayer name, the State of the 

20 taxpayer’s address as shown on the notice of lien, 

21 the type of tax, and the tax period. The registry 

22 shall also provide for the filing of certificates of re23 lease, discharge, subordination, and nonattachment 

24 of Federal tax liens, as authorized in sections 6325 

25 and 6326, and may provide for publishing such 


tjames on DSKG8SOYB1PROD with BILLS
8 

•S 1390 IS

1 other documents or information with respect to Fed2 eral tax liens as the Secretary may by regulation 

3 provide under paragraph (2)(C). 

4 ‘‘(2) ADMINISTRATIVE ACTION.— 

5 ‘‘(A) IN GENERAL.—The Secretary shall 

6 issue regulations or other guidance providing 

7 for the maintenance, reliability, accessibility, 

8 and use of the Federal tax lien registry estab9 lished under paragraph (1). Such regulations or 

10 guidance shall address, among other matters, 

11 issues related to periods during which the reg12 istry may be unavailable for use due to routine 

13 maintenance or other activities. 

14 ‘‘(B) FEES.—The Secretary may charge a 

15 taxpayer’s account with a reasonable filing fee 

16 for each notice of lien and each related certifi17 cate, notice, or other filing recorded in the Fed18 eral tax lien registry with respect to such tax19 payer, in an amount determined by the Sec20 retary to be sufficient to defray the costs of op21 erating the registry. The Secretary may also 

22 charge a reasonable fee to any person who re23 quests and receives under section 6323(d)(1) 

24 information or a certified copy of a filing in the 


tjames on DSKG8SOYB1PROD with BILLS
9 

•S 1390 IS

1 Federal tax lien registry to defray the costs of 

2 providing such information or copies. 

3 ‘‘(C) FILING OF OTHER ITEMS ON REG4 ISTRY.—The Secretary may, by regulation, pro5 vide for the filing of items on the registry other 

6 than Federal tax liens, including criminal fine 

7 judgments under section 3613 of title 18, 

8 United States Code, and civil judgments under 

9 section 3201 of such title, if the Secretary de10 termines that it would be useful and appro11 priate to do so.’’. 

12 (e) CERTIFIED COPIES OF INFORMATION FROM REG13 ISTRY.—Section 6323 of the Internal Revenue Code of 

14 1986, as amended by subsection (d), is amended by adding 

15 at the end the following new subsection: 

16 ‘‘(l) CERTIFIED COPIES OF INFORMATION FROM

17 FEDERAL REGISTRY.—The Secretary shall make available 

18 in a certificate that can be admitted into evidence in the 

19 courts of the United States without extrinsic evidence of 

20 its authenticity the following information to any person 

21 that submits a request in a form specified by the Sec22 retary: 

23 ‘‘(1) Whether there is on file in the Federal tax 

24 lien registry operated under subsection (k) at a date 

25 and time specified by the Secretary, but not a date 


tjames on DSKG8SOYB1PROD with BILLS
10 

•S 1390 IS

1 earlier than 3 days before the creation of the certifi2 cate, any notice of a lien that— 

3 ‘‘(A) designates a particular taxpayer, 

4 ‘‘(B) has not been fully satisfied, become 

5 legally unenforceable, or been released or with6 drawn, and 

7 ‘‘(C) if the request so states, has been fully 

8 satisfied, become legally unenforceable, or been 

9 released or withdrawn, and a record of which is 

10 maintained on the registry at the time of filing 

11 of the request, 

12 ‘‘(2) the date and time of filing of and the in13 formation provided in each notice of lien, and 

14 ‘‘(3) if the request so states, the date and time 

15 of filing of and the information provided in each cer16 tificate of release, discharge, subordination, or non17 attachment and each notice of withdrawal recorded 

18 in the registry with respect to each notice of lien.’’. 

19 (f) EFFECTIVE DATE; IMPLEMENTATION OF REG20 ISTRY.— 

21 (1) EFFECTIVE DATE.—The amendments made 

22 by this section shall take effect on the date deter23 mined by the Secretary of the Treasury under para24 graph (2)(E) and, except as provided in paragraph 


tjames on DSKG8SOYB1PROD with BILLS
11 

•S 1390 IS

1 (2)(F), shall apply to notices of liens filed after such 

2 date. 

3 (2) IMPLEMENTATION OF FEDERAL TAX LIEN

4 REGISTRY.— 

5 (A) PILOT PROJECT.—Prior to the imple6 mentation of the Federal tax lien registry under 

7 section 6323(k)(1) of the Internal Revenue 

8 Code of 1986 (as added by this section), the 

9 Secretary of the Treasury, or the Secretary’s 

10 delegate, shall conduct and shall complete by 

11 not later than 2 years after the date of the en12 actment of this Act 1 or more pilot projects to 

13 test the accessibility, reliability, and effective14 ness of the electronic systems designed to oper15 ate the registry. 

16 (B) GAO REVIEW.—Within 3 months after 

17 the completion of such a pilot project, the Gov18 ernment Accountability Office shall provide a 

19 written evaluation of the project results and 

20 provide such evaluation to the Secretary of the 

21 Treasury, the Commissioner of Internal Rev22 enue, and appropriate committees in Congress. 

23 The Secretary and Commissioner shall cooper24 ate with, and provide information requested by, 

25 the Government Accountability Office to enable 


tjames on DSKG8SOYB1PROD with BILLS
12 

•S 1390 IS

1 the evaluation to be completed by the date spec2 ified. 

3 (C) NATIONWIDE TEST.—Upon the com4 pletion of 1 or more such pilot projects and 

5 after making a determination that the elec6 tronic systems designed to operate the Federal 

7 tax lien registry are sufficiently accessible, reli8 able, and effective, the Secretary of the Treas9 ury, or the Secretary’s delegate, shall conduct a 

10 nationwide test of the Federal tax lien registry 

11 to evaluate its capabilities and functionality. 

12 (D) DATA PROTECTION.—Prior to the im13 plementation of such registry, the Secretary of 

14 the Treasury, or the Secretary’s delegate, shall 

15 take appropriate steps to— 

16 (i) secure and prevent tampering with 

17 the data recorded in the registry, 

18 (ii) review the information currently 

19 provided in public lien filings and deter20 mine whether any such information should 

21 be excluded or protected from public view22 ing in such registry, and 

23 (iii) develop a system, after consulta24 tion with the States, industry, and other 

25 interested parties, and after consideration 


tjames on DSKG8SOYB1PROD with BILLS
13 

•S 1390 IS

1 of search criteria developed for other public 

2 filing systems including Article 9 of the 

3 Uniform Commercial Code, that will enable 

4 users of the registry, when examining tax 

5 lien information for a taxpayer with a com6 mon name, to identify through reasonable 

7 efforts the specific person to whom such 

8 tax lien relates. 

9 (E) DECLARATION OF REGISTRY EFFEC10 TIVE DATE.—Upon the successful completion of 

11 a nationwide test of the Federal tax lien reg12 istry system, the Secretary of the Treasury 

13 shall determine and announce publicly a date 

14 upon which the registry shall take effect and 

15 become operational. 

16 (F) ORDERLY TRANSITION.—In order to 

17 permit an orderly transition to the Federal tax 

18 lien registry, the Secretary of the Treasury may 

19 by regulation prescribe for the continued filing 

20 of notices of Federal tax liens in the offices of 

21 the States, counties, and other governmental 

22 subdivisions after the determination of an effec23 tive date under subparagraph (E) under the 

24 provisions of section 6323(f) as in effect before 


tjames on DSKG8SOYB1PROD with BILLS
14 

•S 1390 IS

1 such effective date, for an appropriate period 

2 not to exceed 2 years after such effective date. 

Æ 


tjames on DSKG8SOYB1PROD with BILLS